3 reasons why you need a [your firm-name here] Production System

Do you need a company-specific Production System (XPS) to boost your operational improvement? Yes you do. Here are three reasons why:


#1 XPS is a never-ending strategic programme, not a project

In difference from your earlier attempts with all kinds of temporary and probably non-sustained improvement projects such as kaizen, lean, six sigma, business-process-reengineering, quality circles, and world-class-manufacturing to mention a few, a company-specific Production System is by default designed to last. By naming the improvement initiative with the firm’s name, top-management signals that it is a strategic program that will not be put to rest. XPS is not something “new”; it builds on all the already available concepts out there. But it is a new and different way of approaching the essential need for long-term persistence of “lean & co”.

#2 XPS is more tailored to the specific needs of the firm than other off-the-shelf improvement philosophies

The X in XPS means that the key principles in your XPS are indeed your principles. They are chosen because your firm believes they are more suitable for your firm. They can be your firm’s age-old operating principles or very well be mutations of principles from any other improvement philosophy out there. Given that you design it properly you get the best of the best for you. Toyota Production System is the perfect example; it is good for many but tailored only to Toyota. Learn from it, but don’t copy it.

#3 XPS increases your firm’s competitiveness by providing a common improvement language

XPS brings along a common and unified improvement language across all sites in a large firm. Multinational corporations can take advantage of an easier knowledge transfer between plants all over the world. A common language and the use of similar terms counter fights confusion and misunderstandings. As business gets globalized and competition increases, you need a XPS to keep up with or hopefully beat your competitors. It does not give an instant competitive advantage, but not having one gives you an instant disadvantage. Look around you; I’m positive that some of your competitors have started walking down the XPS road already… But don’t panic; it’s all in the X.

Good luck with your XPS efforts.

These 3 reasons for an XPS first appeared in an industry journal: Netland and Andersen (2011) Bedriftsspesifikke produksjonssystemer – XPS: Kontinuerlig forbedring satt i system. Logistikk & Ledelse. Oslo, Norway, Hjemmet Mortensen Fagmedia AS: 26-30. [in Norwegian]


4 responses to “3 reasons why you need a [your firm-name here] Production System”

  1. Waving the Swedish flag in the Manufacturing World Cup « betteroperations

    […] best is a serious investment in change, pride and winner instincts. A long-term commitment to an XPS strategy is a must. Companies like Scania, Volvo, Haldex, Alfa Laval and Electrolux are all […]

  2. 3 reasons why you need a [your-company] Production System | Michel Baudin's Blog

    […] See on better-operations.com […]

  3. Factory Fitness: What managers can learn from Athletics

    […] When companies design and structure their company-specific production systems (XPSs) a tailored fitness programme should be the target. Ferdows and Thurnheer suggest that “a […]

  4. The Concept Epicenters of Lean, TQM, Six Sigma & co | better operations

    […] The Concept Epicenter Map both fuels and calms statements like: “Hey, Lean thinking is developed for high-volume automobile industries; it does not suit our highly cyclical and unpredictable business”. As we can see, there will always be some part of the programs that have applicability outside their core. When it comes to Lean, for example, ideas like removing wasteful processes, continuous improvement and having a well-organized workplace are never wrong, while just-in-time and “kanban” do not fit all.  ”Core lean” works best in the automobile industry. The map also illustrates the large overlap between most of the concepts. In my opinion, the trick is to work out the parts of the different ideas that your firm can take advantage of, and repack them into your own tailored company-specific production system—your XPS. […]

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