To drive improvement, Lean thinking challenges us to consider whether the things we do add value from the customer’s perspective. Anything that does is a potential target for elimination as it adds cost and reduces our ability to deliver customer value.
Processes are processes are processes...
Though the daily activities of manufacturing and transactional/service industries may seem worlds apart, many of the underlying root causes of the problems faced, and hence the remedies, are often closely linked. Some commonly experienced issues shared by manufacturing or transactional/service sector processes:
- Unsatisfactory delivery performance, customer service, and/or a high level of complaints
- Poorly utilised resource, including equipment, people, and systems
- Erratic demand and workload combined with an inability to react or flex
- High waste; of time, money, equipment, people, energy, materials, etc.
- Cluttered, confused, even unsafe environments
- Poor communication and coordination of activities
- Lack of understanding by all of targets, progress, what’s needed, and how the gap will be closed
- Reactive, fire-fighting, distressed environment and blame culture
- Excessive, ineffective meetings dealing with recurring issues
Breaking the cycle...
It is necessary to understand the things your customers value (and are willing to pay for), then identify, prioritise and remove the issues that prevent or reduce your organisation’s ability to deliver this value. Some key elements of the Lean approach are:
- 7 Wastes - understanding all wastes, not just the obvious ones
- Process Mapping
- Process standardisation
- 5S
- Visual Management
- Work place design
- Team-based Problem Solving
The application of Lean will help you deliver more value to customer, improving many aspects of your business such as cost, cash flow, process control, flexibility and predictability. Employee effectiveness and empowerment will increase, and it will help lay the foundation for Continuous Improvement, increasing your competitive edge and profitability for the long-term.
Please contact us to discuss in more detail how we may be able to help you build a stronger future.