Sustaining lean in New Zealand manufacturing organisations : a thesis presented in partial fulfilment of the requirements for the degree of Master of Technology in Engineering and Industrial Technology at Massey University, Palmerston North, New Zealand
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Date
2009
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Massey University
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Abstract
This study has focused on the NZ manufacturing sector. The weak productivity rates
of this sector over the last few years prompted the Government (through New Zealand
Trade and Enterprise) to take steps to help manufacturers’ boost productivity growth
through a directed campaign to apply lean manufacturing. Several high-growth
potential companies were selected to participate in NZTE’s Aichi lean programme
which ran from 2005 through to 2008. Several companies also joined NZTE’s current
Direct lean programme which kicked-off in 2007. Overseas experience shows that a
majority of organisations attempting lean transformations fail to sustain
improvements. This study looked at the experiences of a sample of organisations that
participated in NZTE’s Lean Programme in sustaining their lean transformations.
This study utilised case study research techniques to extract qualitative data from nine
manufacturing companies. Eleven organisations were originally selected for study but
two companies went into receivership prior to the commencement of data collection.
The organisations were assessed for lean sustainability using a recognised
sustainability model. In general, lean improvements were not sustained across NZ
manufacturing organisations. NZTE’s Lean Programmes were successful in
promoting lean but proved poor in ensuring sustained improvements. Only one case
study organisation looked likely to sustain improvements. There were several
common problems experienced by the organisations. These problems were; erroneous
understanding of lean, poor change strategy, poor SMT commitment, NZTE funding
‘pushing’ change, high staff turnover, high staff resistance and failure to develop the
lean champion’s capabilities.
The root-cause of these problems was lack of organisational leadership. The majority
of the leaders chose to attempt lean simply as a tool for short-term gains. Many
organisations experienced good initial gains from implementing lean but the majority
failed to sustain these improvements. Overseas experience shows that to sustain
improvements organisations need to focus on and invest into life-long learning. This
study showed that there is a distinct lack of focus on learning within the sample. It is
recommended that the 5P model be used as a guide to creating learning organisations
within NZ. The 5P model has been developed from the 4P model (Liker 2004) which is based on the philosophies and principles used by Toyota to become a learning
organisation. The 5P’s are Preparedness, Philosophy, Process, People and Partners
and Problem Solving. Organisations first establish their strengths and weaknesses
through a period of preparedness. The next step is to establish a long-term philosophy
to enable the successful roll-out of the other P’s. Process improvements provide the
setting in which to challenge and develop people, which is necessary to achieve a true
learning organisation focused on continuous improvement through problem solving.
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Keywords
Lean manufacturing, New Zealand Trade and Enterprise Aichi Lean Programme, Management, New Zealand, 5P model