Chapter 15: Capability: Stability

OVERVIEW

Capable processes and systems are stable. Stability requires reduction of variation; stable processes can be trusted and relied on. Stability is one of the pillars of the Lean enterprise as all significant Lean principles require stability in order to be implemented successfully. Integrated logistics networks must also be stable. However, creating stability in logistics is no easy task, as logistics activities rely on multiple channel partners, significant administrative burdens, and global rules and regulations. The goal of the logistics professional must be to create a stable logistics network in spite of the challenges. The three strategic focus areas for logistics Stability are:

1. Standardization

2. Flexibility

3. Control

These three areas will be discussed in this chapter.

STANDARDIZATION

Truism: Standardization is necessary for a multitude of reasons; however, standards need to change as often as is required for success.

Standardization is not just part of the Lean lexicon; it is a brick in the Lean foundation. Yet, standardization does not begin and end with Lean; Six Sigma and logistics also rely on the concept of standardization. In fact, standardization is a concept that can be used effectively in many aspects of our lives, both personal and professional.

In the previous chapter, we discussed the importance of complexity relative to performance of processes. We recognize that we need to reduce complexity; the next question is how. How do we reduce complexity inside our organizations? Standardization plays a key role.

To understand the importance of standardization, consider the following:

1. Without standards, we cannot...