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The answer, I think, is that in a globalized economy with many mature industries it's impossible to avoid competition and critically important to answer a simple question: How can managers create value for customers by eliminating waste in routine operations in plants, engineering, purchasing, distribution, and retail. This is not to say that positional strategies are irrelevantHenderson's company has just consummated a gigantic merger to strengthen its position in several industries. It is to say that mere position is no longer sufficient. The list of mergers that have failed to produce their promised "synergies" due to lack of a lean operating plan is now very long. And down-stream customers, including you and me as ultimate consumers, are placing steadily higher demands on businesses to cut out the waste and perform. The strategists and business raiders of the 1980s have therefore given way to the new business hero of the late 1990sMichael Dellwho has created one of the world's most successful companies by eliminating wasted steps (like the retailer) and installing build-to-order pull systems to give people just what they want just when they want it.
In the pages of Lean Transformation the authors describe a simple method for making a Dell out of your business, beginning with high-level leadership initiatives to refocus the business, then quickly getting to the down-and-dirty steps needed to transform operations. After a careful reading of this fast-paced text, I hope CEOs will finally get it: Waste can only be eliminated and value created if you pay close attention to every action currently consuming your resources. Ask what's waste and what's value for the end customer, then eliminate the waste. And I hope operations managers will also get it: Brilliant operations employing lean principles is your company's smartest strategy almost without respect to the business you are in. Read Lean Transformation, take notes, screw up your courage, and then explain the new reality to your CEO!
I hope the readers of Lean Transformation (both CEOs and operations managers) will be at the forefront of the worldwide effort to transform lean thinking from a leading-edge concept into the standard operating practice in every industry. I'm certain the lean thinkers will win before we get very far into the new millennium and I advise the reader to heed Henderson and Larco's warning: If your firm starts down the lean path first you can always stay ahead but if you start later you may find it impossible to catch up! (By James P. Womack, President, Lean Enterprise Institute)
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