The quest for maximum efficiency in production and administrative processes is nothing new. What successful business has ever been content with excess waste and cost in their manufacturing or service processes? Using the universal business formula for all businesses, Selling Price = Costs + Profit, excess waste must either be absorbed into the company’s operating cost by reducing its profit, or be passed along to the customer as an increase in selling price.
This is an effective strategy as long as a company can match its competitors selling price. Once a competitor eliminates its waste causing a reduction in its costs, it can also reduce its selling price. A lower cost is a great differentiator for any company!
Following this business formula, companies are historically driven to eliminate waste, inefficiency and costs in their businesses. Candidates for the elimination of waste has always been focused on the well known seven wastes of manufacturing, overproduction, inventory, extra processing steps, motion, defects, waiting, and transportation. These same seven wastes are also embedded in administrative routines. Companies were never just waiting around for Lean to come along to get rid of waste in their manufacturing or administrative processes! Initiatives to eliminate waste pre-date the popularity of the Lean technologies.
As the principles of the Toyota Production System evolved into the concepts of Lean manufacturing and became popular in the late 70’s and 80’s, most companies embraced the Lean concepts. They still do! The promised benefits are so significant, what company could ignore the savings offered by the Lean technologies?
Based on these highly touted benefits, many companies launched projects to implement the Lean technologies in their factories and offices. Over one in five of these companies began their Lean transformations using well publicized techniques such as 5S, Six Sigma, or Value Stream Analysis. Another third of companies have made the commitment to begin a transformation project, but haven’t started their project, yet.
It’s no surprise that over half of all companies have embraced Lean. Surprisingly, even with the impressive benefits and competitive differentials Lean offers, many companies are just confused about “How To” complete a conversion from a batch based, order launch, MRP/ERP planning system to a one piece at a time, pull, optimized resources Lean operating system. Where to start? What to do first? With all of the noise around foreign language terminology and the detailed explanations of dozens of different Lean concepts, it’s no wonder companies interested in Lean become confused.
A Lean operating system is a combination of many individual methodologies. For a Lean system to return its maximum benefit, each individual methodology relies on the implementation of all the other techniques to be successful. While a single methodology, (i.e. 5S, Six Sigma, or Value Stream Mapping) implemented as a stand alone system will return results, those results often fail to return the promised benefits of a full-blown Lean operating system. All individual systems must work in concert with one another, in parallel, to realize the full benefits of a Lean operating system!
The applied Lean methodologies are a series of objective, repeatable, mathematically based techniques that systematically transforms a company from a traditional planning system to a Lean operating system through the scientific application of the concepts of Lean manufacturing to any product, industry, or administrative process. The techniques of Lean are implemented concurrently during the transformation process so that once initial project is completed; your company can begin immediately to take advantage of the promised benefits of Lean.
You can put the concepts of Lean manufacturing to work for your company using the applied Lean methodologies. Because the technologies of applied Lean are mathematically based, they can be applied to any product or service including both high and low volume. The technology is transferable to multiple staff members so the Lean operating system can be applied to a single facility or multiple facilities over and over again.
Of course, any company can transform their company to a Lean operating system using their own internal staff, but there is no need to struggle, take baby steps, or head down blind allies when you can use the applied Lean methodologies to assist you with your transformation project so your company can begin enjoying the benefits and marketing differentials of Lean as soon as possible. Contact info@mfgmatters.com today to discuss how you can best take advantage of the applied Lean methods for your Lean business transformation.