Lean Dynamics – Which Companies Use It?

Perhaps the most powerful argument for lean dynamics is that it’s benefits are both proven and measurable. The range of companies that have demonstrated its tangible, bottom-line results show its direct applicability to large corporations, government organizations, and even small businesses.

The concept of lean dynamics is based on the success of corporation like Toyota, Southwest Airlines, and Wal-Mart that continued to thrive during the crises and disasters throughout this decade – from September 11th and hurricane Katrina, to the unprecedented spike in energy and commodity prices.  

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Small companies have demonstrated the concepts of lean dynamics as well.  One of the greatest benefits has been its effect of dampening the volatility that is typically amplified as it moves up the supply chain – sustaining quality, efficiency, and profitability for those who have been traditionally the most vulnerable.  

Elements of lean dynamics were applied by the Defense Department in the SURGE program to obtain critical but hard to get spare parts needed for overhaul and repair of its tactical aircraft. And its underlying principles have been applied to other Defense projects as well, together offsetting the need for more than a billion dollars of inventory.

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A key point is that lean dynamics was founded on the study of multiple benchmarks.  This avoids the common hazard of “chasing anecdotes”—of following a solution proven to work well for one corporation only to find that it does not work well for other businesses or circumstances.  By instead drawing on the underlying principles demonstrated by multiple organizations across different industries, lean dynamics principles are robust, creating more repeatable results.

What Do These Companies Show?

• Attacking waste directly is not the answer.  Instead, lasting improvement requires removing the sources that caused it to accumulate in the first place
• Going “lean” means much more than cost reduction–it promotes the innovation and strategic agility  needed to thrive in today’s challenging conditions

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