Surya Narayan

Across industries, it has become common to hear that most Lean transformations fail. Some say half of them do. Others say nearly all. These claims circulate widely, shaping a belief that Lean somehow does not deliver what it promises. Yet reality tells a different story. In factories, hospitals, service centers, and offices, every Lean journey leaves behind something valuable. Sometimes the gains are visible in numbers. Other times they are quiet and cultural. People begin to speak differently about problems, listen more carefully to one another, and take pride in small improvements. That is not failure. That is growth. Lean was never meant to be a project with a start and finish. It was designed as a way of thinking, a habit of learning together. When people stop seeing Lean as a checklist and start seeing it as a mindset, transformation becomes continuous. In one Southeast Asian manufacturing unit, Lean enthusiasm began high. Charts were printed, boards were placed, and meetings filled calendars. After a few months, the energy faded. Results seemed slow. Many assumed the effort had ended unsuccessfully. But on one production line, a supervisor began asking a simple daily question: “What can be made easier tomorrow?” The question spread quietly through the workshop. Within months, ideas began to flow. Tools were repositioned, workstations reorganized, and communication improved. There was no single breakthrough moment, yet performance rose steadily and morale returned. This example reflects a truth often forgotten. Lean does not fail when results come slowly. It only falters when learning stops. As W. Edwards Deming once reminded the world, learning is not compulsory, but neither is survival. Lean does not demand perfection. It asks for persistence. It thrives in patience, curiosity, and honest reflection. The strongest Lean cultures share one thing in common: leaders who listen. Not the loud kind of leadership that demands results overnight, but the steady kind that trusts teams to learn their way forward. When leaders value progress over perfection, Lean becomes part of daily life rather than a temporary initiative. Jeffrey Liker described Lean as being “better than yesterday.” That simple phrase captures the essence of continuous improvement. Every small adjustment, every reflection, every shared lesson adds to a larger story of growth. Lean never fails. It changes pace, it takes detours, and it evolves with people. It breathes through daily routines, through quiet observations, and through the courage to keep improving. The only time Lean seems to fail is when people stop practicing it. And the moment someone asks again, “How can this be done better?” Lean begins anew. In every organization that keeps learning, Lean remains alive. It does not fail. It simply continues to grow through people who care.

In a world electrified by the promise of artificial intelligence, a quiet transformation is unfolding in Southeast Asia. While headlines often focus on chip design and semiconductor breakthroughs, another part of the supply chain is taking center stage. Thailand is emerging as a critical hub for printed circuit board (PCB) manufacturing, an industry that forms the backbone of every device powering the AI era. From AI Demand to PCB Expansion PCBs may not carry the same glamour as chips, but they are indispensable. They serve as the foundation where chips, capacitors, resistors, and connectors are mounted. Without PCBs, smartphones, electric vehicles, AI servers, and supercomputers could not function. As global demand for AI hardware surges, so does the need for more advanced PCBs. Thailand has become a magnet for PCB investment. Victory Giant Technology, a major Chinese PCB manufacturer and a key supplier for Nvidia, has already expanded operations in Ayutthaya. Taiwan’s Gold Circuit Electronics, another supplier linked to Nvidia’s networking equipment, is running full production at its Thai facility. Global leaders such as Zhen Ding Tech and Unimicron are also setting up shop in the country. This shift is not coincidental. It reflects the “Taiwan plus one” strategy, where manufacturers diversify outside Taiwan to reduce geopolitical and supply chain risks. Following heightened US China tensions and concerns about security around Taiwan, Southeast Asia has emerged as a safer alternative. In less than three years, nearly 60 PCB manufacturers from China and Taiwan have established operations in Thailand. Government Support and Policy Push The Thai government is not standing on the sidelines. Through the Thailand Board of Investment (BOI) and agencies such as the Ministry of Higher Education, Science, Research, and Innovation, the government has been rolling out policies to attract high tech investors. From 2022 to mid 2025, Thailand approved more than 500 electronics investment projects valued at about 19.5 billion US dollars. Around 180 of those projects are in the PCB sector, contributing roughly 200 billion Thai baht to the economy. The government has also launched Thailand Electronics Circuit Asia (THECA), a dedicated exhibition platform designed to highlight the country’s role as a PCB hub. It brings together global manufacturers, suppliers, and investors under one roof. At THECA 2025, Thailand declared its ambition to capture 10 percent of global PCB exports and cement its position as the leading hub in ASEAN. Beyond attracting factories, Thailand is tackling a crucial challenge: skilled manpower. Industry experts predict that the PCB sector will need an additional 80,000 trained workers by 2027. To meet this demand, the Thailand Electronics Circuit Center has been established to provide workforce development, training, and certification. The government has also pledged to train 280,000 people across semiconductors, electric vehicles, and AI over the next five years. This includes tax incentives, scholarships, and collaboration between universities and industry. The Strategic Location Advantage Thailand’s position in ASEAN is also a strength. It offers connectivity to neighboring manufacturing powerhouses such as Vietnam, Malaysia, and Singapore. Many PCB components produced in Thailand are integrated into assembly lines in these countries before being exported worldwide. This creates a regional ecosystem that makes Thailand more resilient to external shocks. At the same time, the government is promoting industrial estates and science parks, such as Thailand Science Park and the National Electronics and Computer Technology Center. These hubs foster research, collaboration, and technology transfer between companies and academic institutions. They provide the infrastructure needed to support advanced PCB and semiconductor-related industries. Lean Thinking as a Competitive Edge Despite its advantages, Thailand faces challenges. Rising labor costs, infrastructure gaps, and fluctuating global demand could slow progress. This is where Lean manufacturing becomes a game changer. Lean is not simply a set of tools to reduce waste. It is a philosophy that empowers people, streamlines processes, and creates a culture of continuous improvement. In the PCB industry, where precision and efficiency determine profitability, Lean can deliver significant impact. Key benefits of Lean in PCB manufacturing include: Lean is particularly relevant for Thailand’s PCB sector because many companies are starting with small production lines. With Lean, these firms can expand more smoothly, reaching economies of scale while keeping costs under control. True North Lean’s Role in Southeast Asia One consulting firm well positioned to support this transformation is True North Lean. As one of the prominent Lean consulting firms in South and Southeast Asia, True North Lean has built a reputation for guiding companies through cultural and operational change. Unlike firms that provide one-off training, True North Lean embeds its consultants into organizations, working alongside management and shop floor teams to build sustainable systems. In the context of Thailand’s PCB industry, True North Lean can help companies: For new entrants to Thailand, particularly companies relocating from China or Taiwan, Lean consulting also provides a soft landing. It enables them to integrate into Thailand’s ecosystem more effectively, aligning local workforce practices with global standards. A Human Story of Transformation Consider a PCB factory in Ayutthaya. Rows of machines hum as workers assemble boards for AI servers. Overhead, AI-powered inspection systems flag potential defects, reducing waste by 30 percent. Production supervisors gather daily in short meetings, using Lean tools to track progress and solve issues in real time. Employees on the line suggest layout improvements that reduce material travel and speed up output. This is not a futuristic vision but a practical reality when Lean practices are adopted. The benefits are felt not only in higher profitability but also in greater pride among the workforce. For Thailand, a country investing heavily in its people, Lean provides a framework to unlock human potential. Looking Ahead By 2030, Thailand aims to become the second-largest PCB hub in the world, just behind China. To achieve this, it must continue attracting investment, building talent pipelines, and embedding operational excellence. Global companies are betting on Thailand because of its stability, location, and policy support. Lean consulting can ensure that this wave of investment turns into long-term competitive advantage rather than short-term gains. The

Lean Digitalization | Kanban | Lean Technology CASE STUDY – Reference from Planet Lean: How a manufacturing firm used digitalization to overcome the limits of manual kanban while preserving its pull-based lean culture. From Push Planning to Pull Flow Many organizations begin with a traditional push system, relying on centralized planning and forecast-driven scheduling. While this approach can work in stable environments, it often creates excess inventory, long lead times, and a lack of responsiveness to changing customer demand. As part of its lean transformation, one company recognized the need to abandon push logic in favor of pull principles. By introducing kanban, it placed flow at the center of its operations. The change improved material management, reduced overproduction, and provided greater visibility across the shop floor. More importantly, it fostered a culture where continuous improvement became part of everyday work. Kanban quickly became one of the organization’s lean cornerstones, enabling responsiveness and setting the stage for further improvement. The Scalability Problem of Manual Kanban In the early stages, manual kanban worked effectively. Employees were well trained, and the company maintained a strong lean culture. However, as production expanded and complexity increased, scalability issues emerged. Maintaining the manual system became labor-intensive. Every few months, teams had to dedicate several days to update parameters, resize items, reprint cards, and redistribute them across production lines. This created administrative waste and consumed valuable time. To cope with the workload, the company reduced the number of part numbers managed through kanban. This decision helped manage the burden but limited lean’s broader potential across the business. Transition to Electronic Kanban The turning point came with the decision to digitalize kanban rather than replace it. The company implemented an electronic kanban platform that preserved its pull-based logic while addressing maintenance challenges. The digital solution introduced two critical capabilities: This meant the company could keep the same lean principles while significantly reducing the effort required to maintain the system. A Scalable, Future-Ready System With electronic kanban in place, the organization could finally manage all part numbers and production lines without limitations. Administrative work that once took days could be completed in a fraction of the time, allowing teams to redirect energy toward continuous improvement. Real-time visibility into kanban cards also became a powerful strategic tool. Managers could quickly track the flow of materials, identify bottlenecks, and use accurate data when mapping value streams at both the component and departmental levels. Opportunities for Integration Beyond solving the immediate scalability challenge, digital kanban opened the door to broader opportunities. Integration with ERP systems, RFID portals, AGVs, and automated storage could create a fully connected production environment. Extending the system to suppliers and customers would allow pull principles to flow seamlessly across the entire supply chain. Lessons for Lean Practitioners This case study, adapted as a reference from Planet Lean, demonstrates that digitalization is not about replacing lean systems but strengthening them. By introducing technology carefully, the organization maintained the integrity of its pull system while solving a fundamental scalability issue. For practitioners, the key lesson is that lean and digitalization are not in conflict. When applied thoughtfully, digital tools can remove barriers, eliminate waste, and allow continuous improvement to reach its full potential.