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Look lean
Lean management boosts productivity, lowers costs, adds value The word “lean” has been getting plenty of play recently around the green industry. When used in the context of “lean management principles,” lean means helping owners and managers eliminate waste and offer more value to their customers. Although lean principles were first applied to the manufacturing sector, The Ariens Co. in Brillion, Wisconsin, has spearheaded a drive to introduce these same principles to green industry companies. Several PLANET members have visited Ariens to actually see and experience how lean principles are being applied, and they have returned home committed to making them work in their own operations. Industry members who have implemented lean management principles are encouraged by their application to the service sector. In fact, interest among landscape contractors and lawn care operators is running so high that this year’s Green Industry Conference (GIC) in Columbus, Ohio, will offer a five-hour workshop, sponsored by Weed Man, Ariens/Gravely/Stens, and JP Horizons, on the subject of lean management. Jim Paluch of JP Horizons, Inc., will moderate the workshop, “Working Smarter with Lean Tools,” which starts at 8:30 a.m. on Saturday, November 4, 2006. To sign up for this GIC ticketed event, visit GreenIndustryConference.com Lean management basics Some of lean management’s basic terms and concepts are explained in the answers to these key questions: - Why lean? The time is right. Increased competition and rising costs make it extremely difficult for green industry service-providers to continue to offer the high level of service that customers expect. Finding ways to reduce waste in companies and offer customers more value would be a win-win for everyone.
- Who can use it? Virtually all companies, regardless of size, are candidates for lean management. All it takes is a desire to improve processes and a commitment in time and energy to see it through.
- What is continuous improvement? Embracing lean management principles requires accepting the assumption that any and all processes can be improved. Even the best-run, most efficient part of your operation can be improved.
- How can I be lean? Start by identifying a process — any process — that you want to streamline. Applying lean management principles has helped PLANET members reduce waste in their operations of equipment, repair shops, and mowing sites, and even in their selling processes. Lean management is most effective when applied to a repeatable process.
- What is a kaizen event? A kaizen (continuous improvement) event focuses on ways to remove waste from a process. Sessions usually last up to a week and include participants from different divisions within a company. Participants identify and eliminate unnecessary steps in the process under review.
- What is the payback? The Ariens Co. reports that it increased productivity by more than 10 percent annually while lowering manufacturing costs and adding value to its product line. During a five-year time frame, that translated into a 50-percent reduction in direct labor costs. Some contractors anticipate similar cost savings within their operations.
Timely tips
Chris Anders, director of continuous improvement for HighGrove Partners in Austell, Georgia, began heading up the company’s lean management program a year ago. Since then, he has orchestrated 10 kaizen events, and the company has witnessed measurable savings in maintenance hours.
“I am totally committed to lean management principles, but I’m a realist, too,” says Anders. “In a service organization, lean results are not as dramatic as they are in manufacturing, and they take longer to evolve. Lean is a journey that requires discipline and dedication to principles by virtually everyone.”
He offers this advice for com panies contemplating lean management. “Go in with open eyes,” Anders emphasizes. “You won’t see huge results overnight but celebrate the small improvements. Our company, for example, has dramatically reduced lead-time on design/build jobs, and we’ve improved our financial statement cycle time from 25 days to five days, giving us more timely management information. We’ve reduced waste in other areas, too. Companies will win by making many small improvements. The big improvements will come in time.”
HighGrove’s kaizen events are week-long affairs that include 10 individuals from different departments within the company. “It’s very important to involve field personnel in the kaizens,” says Anders. “You need buy-in from everyone in the company, especially those who are executing your plan. We’ve also discovered that retaining a consultant or someone who has had experience with the process can be very helpful.”
Resources
If you are interested in learn ing more about lean management principles and how they can be applied to your operation, watch your mail in November for your free copy of PLANET Crystal Ball Report #26, entitled Lean Management for the Green Industry: An Operational Strat egy That Delivers Value to Customers and Eliminates Waste. Visit the PLANET Book store at landcarenetwork.org to purchase additional copies.
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