Lean Structures Consider the Phrase:

Lean Structures

Consider the phrase: "Structure follows strategy." Do you agree or disagree with this statement and why? Are "lean strategies" inconsistent with the achievement of optimization? Why or why not?

The structures that an organization chooses to adopt should not be seen as ends in and of themselves or confused with organizational goals. In other words, merely creating a structure corresponding with a particular managerial theory will not automatically realize the organization's specific, strategic objectives. The hard, practical objective or desired result of any given strategy must be determined first, before the best way to structure the steps, procedures, and personnel leading up to the goal. For example, although it might be determined that an anti-bureaucratic approach is optimal in theory for an organization, adding new persons to the organization's structure might be necessary, to realize the strategy of expanding to a new country or adopting a new marketing technique. Thus, it must be agreed that structure follows strategy.

Regarding lean strategies specifically, it is helpful to consult one specific example of a lean strategy, adopted in a real-world environment:

We established Kanban setup carts, in which all materials, tools and paperwork are pre-staged and delivered to machines when they are needed. Each cart contains the manufacturing order and all necessary documents, raw material, cutting tools installed in holders and arranged in the order to be installed in the machine, sub-plates and fixtures, correct quantity and size of fasteners, and any required inspection equipment...The carts have had a big impact on our setup process. Machine downtime during setup has been reduced by more than 50%. Product quality has improved; we have been able to reduce lot sizes by 50%; and operators can set up machines instead of searching for hardware, tools and documents. As we reduced lot sizes, other opportunities for improvement surfaced. We found it was better to have the material supplier precut the barstock. We now manage precut inventory with a two-bin pull system and an electronic replenishment signal delivered to the material supplier. This has increased inventory turns, reduced manufacturing order pick time from over 3 hours to less than 5 minutes and reduced floor space by over 50%." (Chaneski, 2006, italics mine)