The term "IT solution" might be one of the more widely accepted misnomers to come out of the information age. Every year hundreds, perhaps thousands, of manufacturers pour millions of dollars into new software suites in hopes that somehow they will make any inefficiencies in their operation disappear. However, nobody, not even the vendors themselves, will claim that any of their products are designed with the ability to transform bad processes into good ones.

Unfortunately, that doesn't stop some manufacturers from crossing their fingers anyway. In the past those companies could survive by focusing any lean efforts internally, creating more efficient cells and improving material flow. But now as lean principles are being applied to more transactional events such as controlling supply chains, reducing inventories and manufacturing to customer demand, being truly lean takes on a whole new level of complexity.

"When those kinds of transitions start happening, they become difficult to handle without some sort of IT involvement," explains Narayan Laksham, CEO of Ultriva Inc., a provider of lean manufacturing software. "IT can be used as a mechanism to systemize the lean discipline and help companies sustain it and scale it across the organization. However, software on its own is not going to solve anyone's problems."

Companies interested in adopting IT tools to support their lean initiatives need to do so with a clear understanding of what they are trying to accomplish, Laksham adds. Otherwise, the same problems they experienced with their existing material requirements planning (MRP) system are likely to reappear. In fact, utilizing technology too early in the process can be a big mistake for most companies, according to Jean Cunningham, CFO of Stiles Associates, a consulting firm that specializes in lean and Six Sigma. 

"IT should never be the frontrunner in implementing a lean business strategy," Cunningham says. "Companies who lead their lean efforts with IT never really dig down deep enough to find what drives their business, which means they miss out on some pretty important lessons. Once a process is proven to eliminate waste, then and only then should technology be used for support."

Trane's First-Things-First Approach

Any company that has begun their lean journey knows there are quite a few steps involved. Integrating IT is just one of them, and in most cases should be far from the first. In fact, companies are advised to spend anywhere from six months to a year reducing waste from as many of their existing processes as possible before even thinking about bringing new technology into the equation.

"Normally the place companies should start off a lean journey is by looking at their pain points," says Laksham. "There might be several problems within the organization, but they really need to nail down the most important constraints. That's the key to the first six months of the process. When everyone is on the same page, then you can move on to the integration of new software."

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