As an Original Equipment Manufacturer (OEM), you appreciate first-hand how lean manufacturing practices enhance your profitability (and the profitability of your contract manufacturer). But, have you considered how a lean culture improves your bottom line as well?
With a lean culture, all of your employees are personally invested and responsible for continuous improvement at your OEM or private label manufacturer. From high-level managers to front-line staff, your entire business focuses on new ways to work efficiently, increase value and deliver better service to clients and customers.
Lean culture makes a difference in profitability by dramatically improving employee engagement. According to a recent study by the Workplace Research Foundation, increasing investments in employee engagement by 10% has the potential to increase your profits by $2,400 per employee, per year. The same study also found that highly engaged employees are 38% more likely to have above-average productivity.
So, how does a lean culture contribute to increased employee engagement? Here are three of the most common ways:
1. Lean Culture Means More Employee Feedback
Within a lean manufacturing culture, your employees have the opportunity to be a part of your firm’s process improvement initiatives. These lean projects give your employees the chance to provide feedback on current processes and then directly address those concerns themselves.
By soliciting and using workers’ feedback, you increase employee engagement with your company. Not only does a lean culture foster a habit of continual feedback, but it equally encourages employees to get involved in making a solution happen – whether that’s in the boardroom or on the manufacturing floor.
2. Lean Culture Means More Team Collaboration
In a lean organization, all employees have more opportunities for teamwork and cross-company collaboration. This isn’t just for process improvements, but also for day-to-day routines and client services.
Because a lean culture breaks down barriers between different functions of your OEM, your employees communicate and collaborate across departmental boundaries to make processes more efficient. As a result, employees’ are cross-trained and have more diverse skillsets, reducing your training costs and ensuring your business processes flow smoothly.
3. Lean Culture Means More Development Opportunities
Personal and professional development is another way that lean culture increases employee engagement. Since every employee in a lean culture is challenged to make processes more efficient, you have more opportunities to train and develop future leaders and high-performing individuals.
Leadership is crucial to a lean manufacturing mindset, and leaders must continually involve the team in new projects and innovative ways to better service your clients. This higher level of engagement with new projects and methods means more employees are ready to take on leadership positions in the future.
Crafting a lean culture requires a continuous investment of your time and resources, but the venture is well worth it: With a more engaged workforce, your business is better prepared to improve processes, develop future leaders and turn a higher profit.
Want to learn the secrets to more profitable lean manufacturing practices? Call me, Craig, at 630-948-4879 or click below to download this whitepaper from Fusion OEM and learn how to harness the 80/20 rule for more effective and profitable lean manufacturing – whether in your own facility or when working with a contract manufacturer.