eta consulting’s Nicole Harvey and Rishi Malhotra visited a small clothing manufacturer with annual sales of $1.5M to learn the client’s situation and discuss how Lean can be used to grow the company. During one of the conversations, the clerk explained they’ve been buying rolls of barcode labels for their products.
“Each label costs ten cents, so we have to be careful not to lose them.”
“Why do you pay ten cents for each label?” asked Rishi.
“We need a bigger barcode sticker to fit the tag,” the clerk replied.
“Why do you need a barcode sticker?”
“We don’t use it, but the retailers we sell to need it to count and track their inventory with scanners.”
“Why don’t you buy blank labels and print them yourself?”
“We don’t have a printer for that,” the clerk responded.
“If you could use a printer you already have,” Rishi said, eyeing the high-capacity laser printer in the office, “why not print the labels yourself?”
“We don’t know how to make the barcode,” admitted the clerk.
Rishi’s eyes lit up. “Do you have Excel? Let me show you!”
Within fifteen minutes, the clerk learned how to create a barcode and print it on a label using an existing printer; a simple but powerful example of upskilling. With that newfound knowledge, the company saved over $20,000 in recurring expenses.
The 5 Whys is just one tool in the Lean Six Sigma toolkit. If you’re certified, you know that each tool has the potential to bring about significant realizations and clearer perspective to any process.
Such examples point to key learnings:
It is difficult to self-correct
This is true especially when you have been working with a process for some time.
Small amount of information can make a difference
Change in small steps is often more successful from being easier to actually execute.
Changes can be made instantaneously
Small changes often do not need to go through a lengthy approvals process, but do need empowered employees.
Change completed at the point of problem
Effective and efficient change often happens when and where the problem occurs, what we call the Gemba or workplace in Lean speak, because the facts are clearest there.
Small changes can add up to culture
Leadership’s acknowledgement and nurturing of rapid small changes, to set a Lean culture, is important. Per-idea incentives derived from a system of idea forms with associated valuations can work well here.
Lean tools can make life-changing and revenue-improving differences in organizations both large and small. For some small businesses, it’s the secret to survival in those early, foundational years. Indeed, Lean came about as a result of then-small Toyota’s post-WWII efforts to compete with the likes of Ford Motor Company. Entrepreneurs and startup executives may have more to gain from lean adoption and implementation. No enterprise is too small to benefit from Lean Six Sigma and the qualified consultants who can help implement it as culture.