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May 07 Businessexcellence 1 Editor’s letter EDITORIAL Editor In Chief Martin Ashcroft editorial@infinity-mediallc.com DESIGN Production Director Zachary Smith design@infinity-medialllc.com PUBLISHERS Business Directors Andy Kerr Andy Turner info@infinity-mediallc.com BUSINESS Project Director Scott Mason smason@infinity-mediallc.com Sales Managers Jim Coughlin jcoughlin@infinity-mediallc.com Sean Brett sbrett@infinity-mediallc.com Project Manager James Rose jrose@infinity-mediallc.com Administration & Operations Kathy Toomey ktoomey@infinity-mediallc.com Subscriptions info@infinity-mediallc.com Infinity Media LLC 100 Cummings Center Suite 246C Beverly, MA 01915 Tel: 978 232 9284 Fax: 978 560 0999 www.infinity-mediallc.com Businessexcellence ACHIEVING “Every body in motion continues along the same path unless acted upon by an outside force. That outside force must be leadership.” So say Mike Bawn and Jeff Watzka of Guidon Systems in their article LeanSigma in the data center on page 24 of this issue. It’s a theme that crops up time and again. Everyone with experience of transformational change stresses the role of leadership. As so many of our contributors agree, it doesn’t matter what products you make, or whether you make products at all. Perhaps you’re a service company, an engineer-to-order outfit, or you run a warehouse. It is possible to transform your culture through lean, six sigma, kaizen, but it’s only possible with strong, committed leadership. Transformational change requires a shift in thinking, and the new ways may not fit the traditional structure of the company. Don’t worry. You can change that, too; and your performance management incentives and compensation systems, if you have to. The chances are that you will. Once a workforce sees the benefit of contributing to cultural change, there’s no stopping them. John Petta of Solectron endorses that in our lead story on page six. But it’s your job as leaders to communicate the need for change, support the change process and align accountability. Gaétan Bolduc, president and CEO of Prevost Car (see page 12), began the lean journey 12 years ago with a kaizen. “We were looking for a tool,” he said, “and we found a culture.” Twelve years ahead of many, therefore, but he insists it’s not too late for anyone to start who has not yet done so. But, he cautions, “if the head of the company is not ready and if the managers are not ready, it will not succeed. If they are ready, they will be surprised at the results.” Lean leaders

Businessexcellence May 07 2 Opinion 5 Integrate to accumulate Failure to integrate product development and strategic initiatives into the business management process leads to poor performance, says George E. Palmatier. Lead story 6 Better than the OEM Facing the unique challenges of contract manufacturing, Solectron’s South Carolina facility uses lean and six sigma in its pursuit of excellence. Interview 12 Finding a culture Gaétan Bolduc, President and CEO of Canadian coach and bus shell manufacturer Prevost Car, talks about the experience of 12 years of kaizen. Strategic management 16 The urge to merge As Tennyson almost said, in the spring, a young businessman’s fancy turns lightly to acquisition. Martin Ashcroft studies the poetry of M&A. Customer focus 20 Screen test Life Line Screening brings reassurance to millions by providing an early warning of the risk of stroke and other vascular disease. Operational excellence 24 LeanSigma in the data center A new approach to IT. Tools that have proven themselves in manufacturing can be harnessed to improve the operation of IT departments. Supply chain 28 An order of one Engineer-to-order manufacturing has its own specific challenges, but lean can still improve production, processes and supply chain management. Infrastructure 31 Joined up warehousing To eliminate human error, an integrated warehouse management system is essential to an efficient manufacturing facility. 31 6 20 Features Businessexcellence ACHIEVING 16