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There
are some concepts, recommendations and general guidelines that in my experience
have contributed to achieve successful implementations.
Before
anything else, it is indispensable that the top management of the company
supports the program without hesitation. I have seen very enthusiastic people in
Manufacturing, Maintenance, and Plant Engineering trying to make a plan work
without the support of the high management, and they simply could not succeed.
There
is an "old wave" of managers, who in spite of having a poor
preparation and old strategies, were able to establish successful businesses.
They are sometimes difficult to sell new ideas. These people believe that there
is no reason to change. Today, we are finding that those businesses are either
about to shut down or are changing hands to more conscientious executives who
are aware of the changing conditions of the market.
Bringing
TPM to the new generation of executives is simpler than we could imagine. The
reasoning is simple. We cannot face today's competition with the skills of the
past. Even if we have had very good experience through the previous decades, the
conditions today are drastically different. Products that in the past had profit
margins of up to 90% of their wholesale price, today fight to stay in margins
within 15 or 20%. This is a result of the Global competition.
We see
whole industries that have been materially "swept" by the foreign
competition. Such is the case of the television factories, that in 1970 had more
than 50 plants and brands in the USA. Today not one exists. Taiwan, China,
Japan, Korea, Singapore, other Asian countries and other parts of the world have
captured the whole market. The same has happened with the photographic, steel,
watches and clothing manufacturing industries. How did they achieve it? By
following logical precepts as:
This
is the panorama we should observe and analyze with our managers. The attitude
should not be fatalistic but very realistic. Today, when the company is still
running, is the time to take action. A few months or years later, it will be too
late.
If we
are overwhelmed by the idea that competition is a problem, we will never be able
to really see it as the brilliant opportunity that it really is. The American
automotive industry is a clear example of a late wake up call, but they finally
woke up; otherwise that industry would be a simple memory. Today they reach a
smaller participation of the world market compared to what they had in the
50’s of last century. At least it has stayed alive.
They
are in the process of a cultural change toward Lean Manufacturing and only when
they have achieved it, will they be able to re-conquering part of the lost
market. The German supremacy in optic instruments is already a thing of the
past. And what can we say of the proud Swiss watch-making industry? These have
suffered the impact of the change. It is not the competition that defeated them,
but their incompetence to face and measure up to it.
Arrogance,
or in certain cases the lack of humility, can make us lose the real sight of the
true proportion of the impact that our competitors can have.
There
is a story from when the Japanese began the production of the Orient and Citizen
watches. In a few years they conquered the market never to lose it. The story
says that a Swiss tool company sent the Japanese manufacturers an assortment of
miniature sample drill bits and thread cutters to be used in watch-making. The
Swiss company made these tools with “unique materials” and the great
experience of more than 600 years of the Swiss watch-making industry. They
assured the Japanese that there were none finer, more precise or harder tools in
the world. As the story goes, a few
days later they received the package in return mail, with no comments. The Swiss
tool manufacturers ordered a meticulous inspection of the returned tools by
their laboratory metallurgist, only to learn that all the pieces had a perfect
hole drilled through the center lengthwise. Obviously, the Japanese sent the
message that they had far better tools than the Swiss. Truth or fiction, we
don't know, but what is true is that the final score favors the Asians about
1000-0.
As the
father of the Japanese Miracle, William Edwards Deming, American Statistician
and Genius, once said: "The problem is that the losers try to blame
everything on the circumstances, without realizing that it is the system that
has to change." Indeed, a system that worked marvelously has now suffered
for many years. Today, it faces a sudden and quick aging.
When
we face a problem, we should not feel the need to justify ourselves, blaming it
on external conditions, but discover the opportunity to create a new more
efficient way of doing things. And the way to achieve it is combining the
intelligence, talent and creativity of all our human resources that, until now,
have been underestimated and minimized.
The
TPM and the other disciplines of the Lean Manufacturing System create that kind
of leadership environment to make it possible. People from all the levels of the
organization are constantly encouraged to participate in the Continuous
Improvement process because they know their ideas will be taken into account.
If we
all understand this reality, the higher management will give us the necessary
support. A good TPM program is an excellent foundation for a good Lean
Manufacturing implementation. The results will soon be evident, and big benefits
will be felt from the beginning. Among others an improved morale among the
personnel, better disposition toward more productivity, higher level of loyalty,
and a leadership atmosphere that will reach all the areas of the organization.
Publicity
is indispensable to our process. It is not only a momentary need
when implementing, but also permanent while sustaining. It is necessary to use
all the means within our reach, and then we will get great cooperation of the
whole organization. We all want to be part of the success.
It is
very critical to keep giving our implemented projects a constant follow-up and
keep continuity of communication with all the people involved. If this is not
done, the great effort can be lost.
A
concept that has been difficult to accept among the Western industries is the
exchange of experiences and problems and the comparison of results and
solutions. In Japan it is most
common to see people from other plants, especially from the competition,
visiting the plants, even taking pictures and videos, and asking questions or
giving advice to their colleagues. This activity favors the advancement and we
all should cultivate it. The NUMMI plant of Fremont, California is a very
interesting example of this attitude. In
1992 the plant that belonged to General Motors was closed. Constant losses, a
demoralized labor force and other factors had marked the GM decision to close
it.
Toyota
rises to the rescue: A proposal from Toyota that nobody could reject came like
rain in the desert. They took a group of workers, supervisors and engineers of
GM to Nagoya Japan, the world plant #1 of the automotive industry. They received
training for some months and returned accompanied by a like number of Japanese
to establish the "New United Motor Manufacturing, Inc." (NUMMI), which
is a combined managerial venture between Toyota and GM.
Only 7
years later they could see the results. It became the #2 automotive plant in the
world. In remarkable coexistence, they not only share the plant, but the
technology. Even engines and other components especially developed for that
purpose are shared, as well as the Lean Manufacturing disciplines of the Toyota
Production System. This plant assembles Toyota and GM cars. A situation that for
some conservative managers is simply unthinkable. Benchmarking, Exchange and
Comparison are put to work to the two makers' benefit.
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