Lean machines: Utah industries utilize manufacturing principles.

• Author: Kennedy, Linda T.
• Position: Manufacturing

Call it a revival of the Efficiency Movement in the United States, lean manufacturing models are re-emerging in business sectors worldwide, including Utah. The convictions behind using lean manufacturing models are not so different now than they were historically; all aspects of the economy, society and government are riddled with waste and inefficiency--everything would be better if experts not only identified problems, but fixed them.

Lean manufacturing is a practice that considers the expenditure of resources for any goal other than creating value for the company or customer to be wasteful, and a target for elimination.

According to global management consulting firm Accenture, more than half of all U.S. manufacturers have embarked on some kind of lean manufacturing initiative. "In Europe, I believe that figure is at least 50 percent and perhaps up to 70 percent, says Paul Olsen, public relations manager at the Manufacturing Extension Partnership of Utah. "In Utah, we would be similar to the U.S. number--50 percent, perhaps 60 percent. I would say the larger manufacturers would be at least in the 70 to 80 percent range."

But today, lean processes are also practiced in businesses in the public and private sectors, in industries as diverse as insurance, software and retail. In particular, health care, government and education are hotbeds for debate concerning efficiency, effectiveness and costs. In these sectors, at least in Utah, lean principles may be coming to the rescue.

CREATING A COMPETITIVE WORKFORCE

Two years ago, former Utah Gov. Jon Huntsman launched the 21st Century Workforce Initiative to study and enhance how Utah's workforce development system is preparing for an increasingly global market. He formed a Globally Competitive Workforce Steering Committee comprised of leaders and representatives in the public and private sector to lead the initiative. The methodology selected as the initiative's analytical framework was Lean Six Sigma, a model that included rigorous tools and proven techniques to extract solutions and achieve results while minimizing resources and increasing accountability.

"The governor was really on board with this," says Kristen Cox, executive director of the Utah Department of Workforce Services (DWS), and a member of the committee Huntsman recruited to lead the effort.

During the summer of 2008, expert volunteers, nominated by the steering committee, used Lean Six Sigma as a tool for discussion during a series of intense working meetings called "SMART" (Stakeholder-focused, Measure and data-driven, Action-oriented, Responsive to customers, and Time-bounded) sessions. Highly qualified Lean Six Sigma experts facilitated the sessions, and helped participants identify problems and solutions to improve workforce development.

The participants represented educators and education leaders, professionals from large and small companies, labor leaders and government representatives who deal with workforce issues and economic development. "In an environment and process where they could look at the system, not just the parts, many insights surfaced and were discussed," the steering committee said in its final report to Huntsman.

"It's a...