Lean thinking is The Parkland Group's preferred vehicle to dramatically improve business operational and administrative performance. The corner stone of Lean is the speeding-up of all business processes by reducing and eliminating steps in the process that do not add value (known as Non-Value Added or NVA activities). As processes are sped-up in this manner, waste and inefficiencies are cast aside while quality, delivery performance and customer satisfaction enjoy quantum leaps in improvement.

The phrase "Lean" was coined by a group of engineers from MIT that toured the world in search of the most efficient automobile manufacturer. After years of research and analysis the engineers concluded that the Toyota Production System (TPS) was the most "Lean" of all auto manufacturers.

Lean is a total business system that encompasses every part of the organization. Implemented correctly, Lean offers businesses a significant competitive advantage over their competitors. The competitive edge is gained by having what customers want when they want it. It also provides the customer with unsurpassed levels of quality and a superior price to value relationship.

The Lean journey begins with the value stream map. The value stream traces the process from conception, R&D, engineering, manufacturing and ultimately into the customers hands. Through this process we chart activities as either adding value to the product or service or being designated a non-value adding activity. This relatively simple methodology is the foundation for turbo-charged performance.

The benefits of Lean can be so significant that we believe its principles played a very meaningful role in the impressive profit improvement large companies enjoyed in the last decade of the 20th century. There was a rise in profit for fortune 500 from $93.3 billion in 1994 to $444 billion in 2000, an increase of 376%. Much of this improvement was derived from the cost reductions generated by the Lean methodology.

Parkland has been utilizing Lean for the last 10 years with outstanding results. Employee empowerment and platform teams are the cornerstones of a truly Lean environment, and one that Parkland embraces. Some of our clients have realized reductions in cycle times of 90%, inventories slashed 80%, on time deliveries perfected, 50% reductions of floor space and 50% increases in productivity.

Lean incorporates the following disciplines:

Value Stream Mapping - The process of following and documenting the value stream from supplier to customer.

JIT & SOP - Producing just what is needed, when it is needed, in the amount needed with the minimum materials, equipment, labor and space (Just In Time or JIT). Woven into to this process is the documentation and adherence to Standard Operating Procedures (SOP) that reduce variations from the goals and enhance quality.

5-S - An organized and systematic approach to housekeeping and workplace organization. Implementing such techniques enhances quality and morale and eliminates waste.

Kaizen - Kaizen is a Japanese word meaning "small, ongoing good" (kai) and "good, for the better" (zen). Kaizen, as it is typically applied in the United States, is a continuous improvement process utilizing the creativity and energy of teamwork in a structured format. The typical "Kaizen Blitz" workshop is 3-4 days in length, with one day of training and 3 days of process mapping, workplace observation, process analysis and redesign and then implementation. Kaizen activities have crystal clear objectives and a tight focus on achieving results in a short time frame. Kaizen always challenges workers to be creative in their solutions before utilizing any significant amounts of capital.

Quick Changeovers - SMED (single minute exchange of dies)-A systematic approach to reduce setup times from one product to another, with the ultimate goal of eliminating setups altogether.

One-piece flow/Group technology - Production methods that group different functional disciplines (that are required for a specific product family) into the same area to enable product or paperwork to move one piece at a time between operations. This approach can reduce cycle times (because of the reduction of queue waiting time) and greatly enhance quality (because quality problems are noticed sooner, triggering corrective action).

Six Sigma - Once Lean has defined the process in which we operate Six Sigma is incorporated to reduce the variation in the process. Six Sigma is a system that focuses on improvement, employing statistical methods to reduce the variation (noise) in the process. The ultimate goal of Six Sigma is to reach Six Sigma levels of quality, which is equivalent to 3.4 defects per million opportunities. Organizations that follow the DMAIC (define, measure, analysis, improve, control) methods to fruition will have the opportunity to generate profits that could significantly outstrip their competitors.

Pull Through - A hallmark of Lean is pull through scheduling. In this environment instructions to commence processes are triggered by customer demand rather than a master schedule that is pushed through the operation in a traditional environment. Kanban systems are often incorporated into pull through systems.

Case Studies:
  • Manufacturer - plastic products. Assisted this company in lowering its manufacturing costs by several million dollars by implementation of lean manufacturing techniques. Within 90 days, large losses were turned into profits exceeding $2 million.
  • High-tolerance machining operation that experienced significant losses. Parkland was able to return this company to profitability within 2 months. The manufacturing process was redesigned using lean manufacturing techniques like Kaizen, Six Sigma and 5s, which reduced non-value added time by 45%, shrunk process time by over 30% and shortened travel distance by 93%.
  • $45 million motor manufacturer with significant operating problems. Completed restructuring in 6 weeks. Cut expenses by $2MM+, increased on-time delivery from 20% to nearly 100%. Turned significant losses to profitability within first 4 weeks. Implemented leadership training, and Lean manufacturing techniques including shopfloor and office Kaizen.