The Role of Front-Line Ideas in Lean Performance Improvement

Abstract

Companies are increasingly embracing lean production techniques in their efforts to improve performance. Yet the majority of these companies fail to tap the full potential of “going lean.” By comparing a sample of successful lean initiatives with less successful ones (as defined by the rate of ongoing productivity improvement), this paper identifies a critical component that often is missing in underperforming initiatives—the ability to get large numbers of improvement ideas from front-line employees.High-performing idea systems—which the authors define as those that implement 12 or more ideas per employee per year—were found to be a major factor in successful lean initiatives, for three reasons. First, they created a “lean culture” of daily improvement. Second, they addressed improvement opportunities that were difficult for managers to spot. Third, they promoted rapid organizational learning.In addition to demonstrating the importance of high-performing idea systems for lean, this research provides insight into why such systems are relatively rare: 1) the predominance of the suggestion-box paradigm; and 2) they frequently require significant and difficult changes in operating practices.

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