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Henry R. Kates: R.I. could become a “lean” center

01:00 AM EST on Saturday, January 24, 2009

HENRY R. KATES

RECENTLY, I ATTENDED a “Learning to See” conference at Vibco, maker of industrial vibration equipment in Richmond (Wyoming, actually). Led by colorful, creative and community-spirited CEO Karl Wadensten, Vibco is a successful adopter of the Toyota Production System (TPS), otherwise known as “lean” manufacturing. Karl, his office staff and production crew unselfishly open their workspaces to anyone interested in a lean journey, and they invite lean enthusiasts to participate in their blog — “The Vibration Nation.”

Lean is not new. Taiichi Ohno, a Chinese-born engineer who worked at Toyota in post-war Japan, is generally considered the father of “lean.” Ohno’s passion was to transform Toyota from being a producer of “junky” cars into a world-class auto maker. TPS is a systematic approach to identifying and eliminating waste (nonvalue-added activities) in any process or series of processes through continuous improvement, while relentlessly pursuing perfection. “Lean” can apply wherever there is waste, and there is waste everywhere.

But “lean” does not mean fewer employees. Tasks may change as the team attacks waste, but the elimination process gives “birth” to different jobs as new opportunities for growth emerge. Employees at every level learn more productive skills as their routines change; in turn, they become more valuable and take control of their own economic destiny. The only “work rules” in a lean environment are that employees are the most important resource; that improvement is everybody’s job; and that the customer determines value.

“Lean” is transparent, collaborative and inexpensive. By outfitting a workbench with wheels, moving a bin and hanging her tools on a peg board, an assembler eliminates wasted time looking for parts and tools. Simple intuitive illustrations at each station let workers “flex” in and out of jobs as demand fluctuates. Every employee knows when a given order needs to go out because it’s been color-coded by day of the week. “Lean” means working with a supplier to redesign packing materials and layout to reduce both the amount of packaging waste (lean is green) and the time required to unpack the component. It’s frighteningly simple. And while non-lean companies face extinction in this downturn, Vibco and other “lean” adopters are growing and hiring. How good is that?

Paul Cary, Vibco’s lean master or “Sensei,” introduced Mike, Ron, Lucy and others on the shop floor. They demonstrated their simple, effective ideas, which are now fully integrated into Vibco’s processes. Jerry Bussell, a nationally recognized “lean champion,” told us lean always proves effective, not only at private companies but at hospitals, nonprofits and, yes, even in government. Several years ago the Sheriff’s Department in Jacksonville, Fla., embraced and adapted lean to its operations. As a by-product of the lean journey, the department’s plans to build a new prison were scrapped as employees solved an overcrowding issue by reconfiguring the layout at existing facilities. The result — Sheriff Department employees saved Jacksonville taxpayers some $31 million.

I could sense the excitement of Governor Carcieri, who also attended. Imagine a lean Department of Environmental Management, in which approvals take days or weeks, not months or years, or lean courts, where cases are resolved years before half the witnesses are dead. Even a lean school district that could add to its budget by eliminating waste and expense is possible! Oh, the possibilities for improvement are endless even in these tough times!

Most exciting, though, is that Rhode Island is uniquely positioned to become a world-class lean center of excellence. Our small size, which facilitates networking, idea-sharing and fast communications, is a natural for “Yokoten” — the sharing of information and ideas “sideways” to the community. Add that to our heritage of productivity, achievement and creativity — it’s a perfect fit.

Let us not forget Rhode Island is the birthplace of the American Industrial Revolution and once was an economic powerhouse. Lean is the revolution’s second coming; our ride to an economic renaissance. With the Vibration Nation poised to help us along the journey, all that’s needed are business, labor and political leaders working together to muster the character, courage and commitment to lead the way.

Henry R. Kates is a business lawyer and is chairman of the East Greenwich Finance Committee.

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