Becoming a Lean Enterprise can bring significant benefits to your organization by reducing waste and improving efficiency.
What If You Could
- Deliver 99% On-time to Customers
- Cut Lead Times by 60%
- Reduce WIP Inventories by 70% and Finished Goods by 45%
- Improve Sales/employee by 45%
- Improve Space Utilization by 35%
- Increase Throughput or Cash Flow by 55%
- Achieve near Six-Sigma quality with a Quality Index of 98.6%
These examples represent real-world gains some businesses have realized as a result of using Lean techniques. The payoffs can be vast, enabling a company to achieve quantum leaps in competitiveness, customer satisfaction, and profitability.
Lean is no longer just for manufacturers service companies can now grow dramatically by becoming lean enterprises.
Lean thinking has been successfully applied in non-manufacturing environments. For example, some hospitals have implemented 5S workplace organization programs in their operating rooms to ensure the highest level of efficiency. Visual controls and mistake proofing are principles that can be appropriately applied in a service environment so service companies can become much more successful.
How to Think Lean
It's really very simple. Eliminate the waste in your production process and you will produce goods more efficiently and more profitably. Lean is all about learning how to reduce waste or "non-value" added steps in a process. Typically 80 to 95% of lead-time is non-value added, or waste.
Practitioners have analyzed practices and have categorized eight areas where waste is found.
Eight Wastes of Lean
- Overproduction waste: Making more than is required by the next process, or making it earlier than is required by the next process, or making it faster than is required by the next process.
- Inventory waste: Any supply in excess of a one-piece flow through your manufacturing process.
- Motion waste: Any movement of people or machines that do not add value to the product or service.
- Processing waste: Effort that adds no value to the product or service from the customer's point of view.
- Quality waste: Inspection and repair of material in inventory.
- Waiting waste: Idle time created when waiting for
- Transportation waste: Unnecessary movement of parts and materials around the plant.
- People waste: Wasting people's mental, creative, and physical skills.
Our Approach To Lean Thinking Implementation
The Management Institute introduces small and mid-sized companies to lean thinking methodologies through a training program that produces measurable results early in the training process and bottom line results by the end of the training. We call this Project-Based Training.
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