Lean has become the most popular production paradigm in the 21st century. While some giant companies boldly claim to have reached the “Lean nirvana”, many smaller companies have a much tougher road to the goal. Small- and medium-sized enterprises (SMEs) often lack the competence, the resources, and the stability to sufficiently set out on the lean journey. On the other hand, because of their size, SMEs might be much quicker to shift perspectives and march together in new directions. The challenge is to succeed in doing so. Here follows a promising roadmap for SMEs that want to become lean.

SMEs are often characterised by family ownership and a staff of “potatoes” (as we all presumably know; potatoes can be used for everything). In other words, the production manager might simultaneously be the supply chain manager, the quality manager, an operator, and a seller. Possibly he/she is the cousin (or lover) of the general manager as well. That, of course, is not the point… The point is that it is hard for SME staff to be knowledgable in all fields. There is abundance of “need-to-know” knowledge in budgeting, planning, control, managing and administration that they must stay on top of. Why should they even care about the “nice-to-know” knowledge of lean production?

I have visited many SMEs and my opinion is crystal clear: Most SMEs would greatly profit from the philosophy and tool-box of lean thinking. Unfortunately, such an opinion – that I certainly share with many others – do not help them in the process. The following advice on the other hand has proven a great potential: TEAM UP!

In the Trøndelag province of Norway, many SMEs have succeeded in their lean efforts simply by teaming up. Several instrumentation manufacturers in the region have established the Norwegian Centre of Expertise Instrumentation (NCEI) with the aim to release synergies and improve competitiveness of the cluster through cooperation. Arena coordinator in NCEI and Research Scientist in SINTEF Ottar Bakås has managed a successful research project in the NCEI cluster. The recipe was simple: Bring the NCEI companies together in their lean efforts. I see it as…:

TEAMING UP is like introducing “lean circles” instead of “quality circles”, but on a network level involving several SMEs in a fun “coopertition” effort.

Suddenly the SMEs had the resources to get state-of-the-art training at SINTEF and the Norwegian University of Science and Technology (NTNU) and the necessary arena to discuss and learn from each other. The work shops worked both as knowledge boosters and motivators to keep the pace up. The project was a unreserved success. It did not even matter that some of the companies usually compete – they certainly did not try to sell their leanness in the market. We propose that ¨teaming-up” in such friendly “coopetition” is a good and fairly easy roadmap for lean transformation in SMEs!

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More information: Trønderbedrifter har «Leanet» i lag: Nye veier til forbedring med SINTEF i forstavnen, Logistikk og Ledelse, No. 5, 2011  (in Norwegian)