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Group Enterprise Lean Strategy

Since the State-owned Assets Supervision and Administration Commission (SASAC) requires central enterprises to comprehensively carry out management improvement work with lean management as the core, and to transform group companies from extensive growth mode to intensive growth mode, more and more Chinese group enterprises have adopted lean management as a magic weapon to cope with the economic downturn. However, after three to five years of lean practice, group enterprises find that only the point-to-point improvement activities of production system can not bring substantive improvement of enterprise performance. How to systematically promote lean management to improve enterprise competitiveness is an important topic for group enterprises to research.

   To this end, Dantotsu's Lean Strategy Consulting Team has carried out the practice of group lean strategy transformation in many large domestic enterprises.We have proposed  systematic solutions for the problems existing in different companies, so that the companies can adapt to the rapid changes outside, and at the same time realize the transformation from traditional management to lean management inside, create the atmosphere of full participation and continuous improvement, and speed up lean transformation of the system, To improve the competitive advantage of the group companies in the market.


Dantotsu has rich experience in group lean transformation consulting


Dantotsu Lean Strategy Consulting Team has twelve years of practical experience in lean transformation. We have assisted a number of global multinational companies and Chinese group enterprises, including Philips, SYMG, XCMG, XUJI CO.LTD., GCL-Poly, Dazhong Allied CO.LTD., Dengfeng Electricity Group and other well-known domestic enterprises, to successfully establish the promotion mode of lean transformation for conglomerates and achived remakable success. Group Lean Transformation has its own characteristics, because group enterprises need to determine the overall transformation strategy and resources. Generally, there are from 20 or 30 subsidiaries to hundreds of subsidiaries in a group, and their levels and industries are very different, which brings great diffcults to the group lean transformation strategy. Understanding these characteristics will help the group headquarters to formulate targeted promotion strategies.


Dantotsu Group Lean Transformation Strategy Deployment Compass

Thinking

Lean Managermant

Lean Research and Development (R&D)

Lean Marketing

Lean Production

Lean Logistics

Lean Supply Chain

Lean Thinking

Planning

Promotion Planning

Implementation Path

Promotion Control

Promoting

Lean Talent

Lean System

Process Evaluation

Power

Transformation Management

Lean Leader

Strategy Deployment


Lean Strategy Promotion Deployment for Group Subordinate Companies


Lean Promotion Model

Lean Promotion Strategy

Lean Promotion Main Line

Lean Implementation Path

Lean Import Model of Group Subordinate Companies

Lean Start-up and Promotion

Lean Implementation Progress

Lean Evaluation

Lean System Construction and Lean Leadership


Group Enterprise Lean Promotion Points


Point 1: The production types of subsidiaries are diversified and they need different promotion modes.


Most of group enterprises are industrial diversification and non-diversified enterprises are mainly vertical integration. So subsidiaries have various types of production. For example, the group enterprises of electronic industry usually have mould company, plastic forming, spraying, SMT surface mounting, electronic components company, assembly plants and so on. These subsidiaries have different production organization characteristics.In the automotive industry has R & D center, sales center, manufacturing center and other different functions, which determines that different companies need different lean modes. Some need lean manufacturing, some need lean office, some need lean R&D, which is a big challenge to the group's control and promotion mode.


Point 2: Subsidiaries need to undertake group strategy and formulate promotion strategy according to their own characteristics and customer demands.


Each group company will have its own phased strategy and tasks. They will decompose their strategy into subsidiaries, and subsidiaries will also formulate strategies according to their owm customer and market characteristics. Inevitably, sometimes the direction is slightly biased, so subsidiaries must take into account both strategies. This is a big challenge to the rational allocation of subsidiary resources. It is necessary to avoid the situation that subsidiaries have a set of methods to cope with the group companies on the surface but have thire own ideas in the promotion. In this case, good dialogue and communication are needed to ensure the health and direction of the projects.


Point 3: The management of group lean promotion is difficult.


Usually, the departments responsible for the main tasks of lean promotion in group companies are staff departments such as General Manager Office, Transformation Management Department, Strategy Planning Department, etc. They are usually far away from Gemba, do not know much about production, and need a good understanding of lean promotion thinking and practices, so a good project management mechanism is needed. What is more difficult is that many group companies are scattered in different regions to adapt to the regional economic characteristics and close to customers, which adds another difficulty to the control of group projects. There is also a situation to raise this difficulty to a higher level. That is, the lean promotion stage of each subsidiary is quite different. Some have just started, some need periodic summaries, and some have phased closures. So you need to be prepared you will manage a multi-regional, multi-field and complex project.


Point 4: Subtle competition and cooperation among subsidiaries


It is unavoidable that there is internal competition within each group company. You need to make good use of this competitive lever. Don't let it become your resistance. For example, it is very difficult for many groups to learn from each other within the group because they are afraid of being surpassed. This is a very unhealthy mentality. The core competitiveness can not be copied. The progress of others will urge you to make more progress. And then there are supply and demand relationships among some subsidiaries, This is definitely a challenge for your lean project. What you care about most is not what another company cares about. How to cooperate is a problem.


Point 5: The demand for lean talent has increased dramatically


This is a wonderful thing. Lean companies have a lot of lean talents. But for group companies that need to start lean projects urgently, talents are the most scarce resources. They are not only scarce, but also extremely scarce. Because in the short term, group enterprises need to start many projects. From group promotion to subsidiary promotion, they all need lean talents. Of course, the quality of lean talents is more important. This is the first problem that many companies need to solve in implementing lean. Otherwise, the work of lean promotion will be very difficult. If you are about to start group lean projects, think about where your lean talents are.


Point 6: You need to build your own lean system for sustainable development


Toyota summarized its production system for overseas market. It wanted to copy the DNA of its own enterprise to overseas factories and continue the myth of Toyota. And as a group company that often merges, buys and integrates, how can you not have your own lean production system? But establishing the system is very diffcult. You need to accumulate your own successful experience. You need to summarize, need to present, and need to find a suitable and effective way of communication. This will make you feel hard.


Point 7: Leverage effect of assessment system and internal incentive system


Lean pursues the pull effect.If lean push becomes lean pull, the effect must be significant. So what can pull the pace of lean? Incentives are definitely a good lever. When you have solved the problems of enterprise vision, resource demand and employee skills, and you aslo have had a clear road map and plan for lean promotion, one more thing you need is personnel motivation, that is, initiative and behavior. Then assessment and incentive is definitely a very useful lever. It has proved effective everytime. You can try it if you don't believe it..


Point 8: Starting from the CEO Office, the promotion is strong and the support resources are rich.


Group companies consider the long-term development of enterprises and fully understand the internal and external market environment. They will start lean strategy transformation projects after forming a high sense of crisis at the decision-making level. Usually, the group company will make a five-year promotion plan and strategy to achieve the transformation by gradually increasing the promotion scope and depth.Another situation is a major change in ownership and equity of the enterprise. The new shareholders require the group to carry out the lean strategy transformation. Of course, this situation will use the high-pressure task form to reach the sub-branches, and naturally there will be a lot of resources to support. Therefore, the resources and support are unquestionable for group enterprise transformation, and the rest is how to do it.


In a few words, the group lean transformation involves a wide range of issues, complex relationships, and difficult project management. However, as long as we grasp the core characteristics, insist on building Lean Talent System, Promotion System and Lean Culture. It is believed that you will benefit a lot and gain a unique sense of achievement.


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