Achieving Operational Excellence: Best Practices for Lean Management

In an exclusive interview with Industry Outlook, Vikrant Trilokekar, Managing Director of Smiths India Region, shares pointers on how manufacturing service providers in India can achieve optimum operational excellence while tackling the problems that arise when implementing lean management strategies while doing so in a sustainable manner. He has proven adaptability to new cultures and environments, including general management and P&L experience in Asia markets. Capable of consistently achieving strategic growth goals and building top-performing international teams.

According to him, the key practices deployed by an organization to overcome management challenges are-

-Fostering a culture that encourages change

-Hiring appropriate individuals

-Establishment of a standard framework

-Automation of data collection

-Promote collaboration among all involved parties

Given that organizations in India face challenges implementing lean management, particularly in manufacturing and services, how are businesses effectively overcoming these specific challenges to drive operational excellence?

When addressing challenges faced by organizations in India while implementing lean management, particularly in lean manufacturing and services, the solutions lie both at the organizational level and within the science of lean itself. At the organizational level, the journey starts with the attitude and mindset of the people working within the company. A strong culture is critical—it fosters a passion for driving change and making a meaningful difference every day. This begins with a robust talent management strategy.

Hiring the right people is foundational. The focus should be on bringing individuals into the organization who have the right attitude and a desire to make a difference. The target should be people who are not afraid to challenge the status quo, who contribute fresh ideas, and who are not simply content to fulfill the responsibilities of the job they were hired for.

Once we have the right people, the next step is creating a culture that fuels their potential. This involves fostering diversity and inclusivity, where every individual feels empowered to voice their opinions. It’s critical to have a management process that ensures every voice is heard—from the shop floor to the boardroom. To support this, we’ve introduced initiatives like idea boards at every site in India this year. These boards allow anyone in the organization to propose ideas. Employees can either write their suggestions directly on the board or scan a QR code to submit their ideas digitally. Each submission goes through a review funnel, ensuring that no idea is overlooked. This process has been instrumental in encouraging participation and fostering innovation.

The third critical element is having a business excellence model that drives standardization and establishes clear, common goals across the organization. At Smith’s, this is embodied in the Smith’s Excellence System. It provides a structured approach to achieving operational excellence while ensuring consistency across the enterprise. In a previous organization, we followed a similar framework called Paris Business Excellence. Regardless of the specific name, the principle remains the same—a unified model that aligns the entire organization and sets it on a path to success.

Considering that digital tools and Industry 4.0 technologies are reshaping lean management in India, how are Indian companies leveraging these innovations to enhance efficiency and streamline their processes?

Today, we are witnessing an unprecedented surge in data generation and the computing power available to process it. This mega-trend is reshaping industries and organizations at a fundamental level. Data has become essential to decision-making, whether in our professional or personal lives. The process is universal: we capture data, analyze it, identify root causes, and implement solutions. These steps—data collection, analysis, root cause identification, and solution implementation—are integral to lean management practices.

However, challenges remain. Much of the data we rely on is still captured manually, which is both time-consuming and error-prone. The question arises: can we automate this process? Furthermore, can we ensure the accuracy of the data being captured? In this era of digital transformation, the answer is a resounding yes. Automation not only simplifies data collection but also ensures precision. Beyond this, artificial intelligence (AI) can play a pivotal role in analyzing data, creating predictive models, and enabling organizations to channel their resources more effectively. This shift allows us to focus on identifying sustainable solutions rather than spending excessive time on manual, repetitive tasks.

On the shop floor, we see clear examples of this transformation. One such innovation is remote asset monitoring or connected equipment. For instance, overall equipment utilization—a critical metric for productivity—was once captured manually, requiring significant time and effort. Today, connected machines can automatically and accurately capture this data, providing real-time insights. The automation of repetitive tasks has also seen robots replace human intervention on the shop floor, while bots in HR have streamlined numerous processes. These advancements have dramatically improved efficiency and effectiveness across operations.

The benefits of digital transformation extend beyond efficiency gains. The most significant outcome is the improvement in customer service. Consider the automotive industry: today, cars can proactively notify owners when maintenance is needed or when an issue arises. Two decades ago, this level of proactive service was unimaginable. This evolution underscores how modern organizations, shop floors, and aftermarket businesses are transitioning from reactive to proactive operations.

This ability to anticipate and respond in real time sets a new benchmark for operational excellence. As digital tools, automation, and lean management principles continue to evolve, the bar for excellence will only rise. These advancements empower organizations to operate with greater precision, adaptability, and customer-centricity, ensuring they stay ahead in an increasingly competitive landscape.

With the growing focus on sustainability in India, how are organizations balancing the integration of lean principles with ecological considerations to achieve operational excellence?

At Smiths, we see a strong connection between lean principles and sustainability. Both concepts share a foundation in eliminating waste and making the best use of our resources, which ties directly to our environmental and operational goals. Lean, at its core, is about mindful consumption, ensuring that nothing is wasted and every resource is utilized wisely. This mindset aligns perfectly with our sustainability agenda, where reducing environmental footprints, cutting down waste, and managing resources responsibly are paramount.

Reflecting on lean management principles, I often think about the analogy of health and safety. Just as health and safety are not solely the responsibility of a company or an individual but a collective effort, the same applies to sustainability and lean practices. Every small action, such as switching off an unused light bulb, adds up when multiplied across employees, teams, and ultimately the entire organization. This collective effort is crucial for driving meaningful change.

Lean emphasizes the elimination of waste, including the seven deadly wastes, with overproduction being a significant issue. Overproduction, overpurchasing, and any form of excess are challenges that align closely with our sustainability concerns. At Smiths, we focus on energy and water consumption, managing electronic waste, and implementing recycling standards. Additionally, we are committed to collaborating with suppliers who share our vision for sustainable practices.

To bring this vision to life, we have set ambitious goals for the next three years. These include completing 30 waste or circularity projects, 30 water-saving initiatives, and 30 biodiversity-focused projects. These targets underscore our dedication to integrating lean principles with sustainability, driving not just operational efficiency but also positive environmental impact.

Recognizing that leadership is crucial in fostering a culture of continuous improvement in lean management, how are leaders addressing resistance to change while promoting a mindset of innovation and collaboration?

Fundamentally, leaders need to walk the talk. There’s no better way to inspire change and demonstrate commitment than by being the biggest ambassador for the values and initiatives you wish to promote. Change has become a constant in today’s world, and embracing it as a way of life is essential.

The emotional connection between leaders and the organization makes the biggest difference. Building that connection is paramount. One way I foster this is by personally engaging with employees wherever possible. For example, in our Smiths Detection business, which provides screening solutions to airports, I always make it a point to arrive at airports two hours early to meet with engineers on duty. Over a casual coffee, we discuss continuous improvement and share ideas. These moments create a direct line of communication and demonstrate my genuine interest in their work and insights.

The first priority is establishing this emotional connection, but it doesn’t stop there. The second key element is recognizing and celebrating successes. Sharing examples of achievements and acknowledging outstanding contributions is critical. Recognition, whether through formal incentives or informal praise, motivates people to bring forward innovative ideas and deliver meaningful projects.

Third is the importance of fostering collaboration and spreading a culture of excellence. For instance, we have black belts and green belts working across a variety of projects, and we encourage rotation and cross-team interactions. These ambassadors play a crucial role in overcoming resistance and embedding best practices throughout the organization.

Lastly, key performance indicators (KPIs) are an essential part of driving improvements. These KPIs must be clearly tied to organizational goals and cascaded down to individual performance expectations. When employees see a direct link between their efforts and the larger organizational targets—such as cost savings or efficiency improvements—they are more likely to actively engage and contribute to the journey of continuous improvement.

As market dynamics evolve, how are businesses preparing for the changing future of lean management in India, particularly regarding digital transformation and operational agility?

If you look at the landscape today, data has truly become the new gold. It’s a valuable asset that every organization possesses, but the key differentiator now is agility. The more agile an organization is, the faster it can respond to change, adapt to new challenges, and seize opportunities. This ability to be nimble is what sets great organizations apart from the merely good ones. Agility, paired with effective use of data, defines success in the modern business environment.

Another significant shift is the recognition of automation and robotics as critical drivers of productivity. Businesses today are increasingly leveraging these technologies to enhance efficiency, streamline operations, and maintain competitiveness. However, technology alone isn’t enough. The success of these initiatives hinges on the capabilities of the workforce. Organizations must ensure their employees are not only equipped with the right tools but also possess the necessary skills and competencies to thrive in a technology-driven landscape.

In addition to skill development, adequate investments—both operational and capital—are crucial. Organizations must allocate resources to implement new tools and technologies effectively, ensuring they align with the overall business strategy. These investments support the broader goals of the organization, enabling it to remain agile and competitive in an ever-changing environment.