Putting Some Lean into Chesapeake Bay Candle Co.

Posted on May 18, 2011 by Adam Zak

For the last 16 years, Chesapeake Bay Candle produced its scented candles in Asia. But then things began to change.  Increased labor and transportation costs were steadily eating into profits.  Retailers’ never seemed to have enough product in stock and this created spot shortages and logistical problems. “To do well in this market, you need to be able to produce and ship the next day,” says co-founder Mei Xu, a Chinese immigrant to the U.S. “That means making it here” in the U.S.

So the company finally decided to take the plunge and build a factory in Maryland.  While this turns out to have created problems as well, with regulatory issues adding months to the schedule, and perhaps another $1 million to the total cost, things are finally looking up.  Time for a grand opening, scheduled for June.

The WSJ article does not actually use the word “Lean” when discussing how business will be done differently because of Chesapeake’s new domestic manufacturing capability. But savvy Lean readers will certanly recognize the signs of Lean cultural transformation in this story. Now, if we could just get the regulators to remove some of the non-value-adding barriers currently in place we might get more off-shore manufacturers to come back on-shore.

And, by the way, my purpose in life is to help you find the Lean executives who can make this happen in your company.  Call me.  Adam Zak.  Finding the right executive Lean leaders for your Lean enterprise.

(Read the full article here: http://online.wsj.com/article/SB10001424052748704463804576291594025772186.html)

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What Can Lean Do for You?

Posted on May 13, 2011 by Adam Zak

From time to time, new or prospective clients ask me about the kinds of results they might expect to achieve from their Lean transformation. Since I don’t personally consult in this area I’m usually hesitant to quote specific numbers, because as they always say, it depends. It depends on the quality and comittment of the Lean leadership team. It depends on top management participation. It depends on…well, so many factors.

But, I’ve talked to enough senior company leaders over the last 20-some years to have a sense of what’s been possible in their organizations. And I’ve also had many disucssions with my consulting friends during which we’ve examined some of the results they’ve seen in the client companies with which they’ve worked. So, here’s my stab at addressing the issue. If you get numbers like these consider yourself best-in-class. But be careful what and how you measure. And remember: “mileage may vary” and “past performance is no guarantee of future results.”

•Customer service levels at (never seen a 100): 95-99%
•Customer retention: 90% or better
•Lead times: 25% to 50% of the average in your industry
•Productivity/throughput improvement: 15+% per year (over year, over year…)
•Inventory turns: Greater than 24 per year
•Sales growth rate: 300% to 500% your industry average
•Earnings growth rate: 200% to 400% your industry average

Astonished? Me too. But take a look at Danaher Corp. and check out some of the numbers they report publically. Or head over to ITW (Illinois Tool Works) and do the same. Better yet, find someone who can introduce you to a middle-market privately held (not private equity) company CEO, and ask her. You’ll be astonished too.

Makes it much easier to think about investing in the best and brightest Lean Leaders you can find, doesn’t it? Talk about ROI… The right Lean leaders can not only help your company survive today’s rocky times, but also thrive and grow with increased market share, achieving the kind of competitive advantage which your competitors will be unlikely to match. Yes, it is all about the people.

I’m Adam Zak. I can help get you there. Call me.

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Best Lean Practices for Winter Golf

Posted on March 3, 2011 by Adam Zak

For those of you who are occasionally able to sneak away from the Great White North for some winter golf, two things become painfully apparent: it’s expensive; and, it’s often very SLOW! Why? Supply and demand, of course. In Naples, FL, during January, February, March and April it’s called “Season.”

When you book a tee time online many of the local pro shops will email you, or hand out flyers as you sign-in, providing some tips that can make your 18-hole experience a bit more enjoyable (assuming going faster equals joy) if, unfortunately, not cheaper. So here’s my compilation of these Heijunka hints which I’ll call “Fast Times at Winter Golf.” Helpful to all who’d prefer to get in their 18 holes in under six hours. Note that excessive time on the links has been known to seriously disrupt standard cocktail hour work.

Perhaps readers can comment on which Lean principles or practices come into “play” here. I’ve mentioned what I think might be a few and also highlighted certain key words as clues…

DO set your expectations for pace of play reasonably. If you think you’ll complete 18 holes on a busy golf course in less than 4 hours your expectation is not reasonable. Reflect, then readjust your belief system, say to about 4.5-5 hours. Then if you finish sooner you will be pleased. (Unless you are a total J-I-T fanatic, in which case you may become schizophrenic).

DO play Ready Golf. Ready Golf does not mean RUSH! (Haste makes waste – not actually a Lean principle). Ready Golf means BEING READY to play, not playing when you’re ready. Here are a few simple guidelines to follow. Following these pointers could save 10 to 15 minutes per round. Unfortunately, if the group in front of you is not practicing Ready Golf then you will be playing at their pace of play. (Takt time?) 

  • Walk to your ball as soon as possible, so that you can choose your club and think about the shot in ADVANCE, not when it is your turn.
  • After you hit your shot, get back in the cart, hang on to your club and drive to your partner’s ball. While your partner is deciding on his club you will have time to clean and replace your club into your bag. (5S)
  • When driving a cart, drop off your partner first, let your partner choose his or her club, and then drive to your own ball to get READY to play.
  • When a ball is lost, hit your shot FIRST and then look for the lost ball. If you find someone else’s ball (not from your foursome, of course) it’s OK to pretend that was the ball with which you were playing.
  • Walk down the SIDES of the fairway to reach your ball and then APPROACH it from the center. NEVER play in a caravan, moving in a group from ball to ball. (Single-piece flow…?)
  • When on the Green, line up your putt BEFORE it is your turn, and putt out immediately instead of marking, if you are not in someone else’s line.

DON’T hit a ball into the group in front of you. This won’t make them play any faster; it will only make them angry. It might make them play even more slowly. Author has first-hand experience with this. (Drum-buffer-rope…?)

DON’T stand in the middle of the fairway, hands on your hips, fuming at the group in front of you, while they play their next shot. You’re guaranteed to hit a lousy ball if your emotional intelligence is off kilter and you lack respect and empathy for those in the group in front of you. (Root cause?)

DO pass these tips along to your fellow golfers. The more golfers who play with consideration for their fellow golfers the better the pace of play will be. (Shared best practices…)

Final DO. Courtesy of Mr. Iwata, many years ago. Hit a really, really straight and long drive, chip onto the green to within one or two yards of the cup, and sink your putt with two or fewer strokes. (Standard work).

May your game today be better than yesterday’s, but not as great as the one you’ll play tomorrow. Isn’t that the spirit and essence of continuous improvement?

Adam Zak Executive Search – Delivering Executive Leadership for YOUR Lean Transformation

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