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4.2.4. Cultural Challenges & Change Management in Getting "Lean" Ready...

Even if we keep factors like infrastructure, industry, supplier capability, etc., constant, we observe that certain companies have been able to implement lean whilst others have not. What is typically the hold up?

A reluctance to change - Management as well as Unions

A survey work by the Lean Enterprise Institute points to limited implementation know-how and backsliding to old ways of working. Legacy attitudes are pervasive. Manufacturing managers who grew up with batch processing or work-center technology are generally reluctant to commit to techniques that require them to abandon previous ideas of usage.

Implementing lean and JIT is bound to create system level changes and alter loci of power within the manufacturing set up. These may include, for example, introduction of Kanban, cellular manufacturing and set-up time reduction exercises. Similarly, implementation of TPM and set-up time reduction exercises demands a different mindset and patience - a radical change in the way work has been done so far. This requires a higher level of employee empowerment, training and multi-skilling. It will result in drastic changes in work place organization, power structure among employees, supervisors and middle managers, and the method of planning and controlling operations.

Obviously, this is beyond the comfort zone of most unions and given the labor laws in India, such efforts usually whither away during months of negotiations between the unions and management. Lack of conviction and clarity in thinking leads most implementing firms to avoid or postpone initiating such changes in the system.

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* Contributed by -
Amandeep S. Bedi & Namit Puri,
Indian School of Business (ISB),
Hyderabad.