Most businesses are in a state of desperation caused by an unstable economy – higher prices for supplies, labour challenges, and customers spending habits changing during these inflationary times. With no apparent near-term solution to this economic mess, the owners and leaders are feeling helpless.
The good news for owners/leaders is, there are actions fully under their control that they can do to relieve their anxiety and make them more profitable., and which will allow them to ‘do more with what they have’.
Lean thinking, and methodology, is the answer! Lean maximizes your capacity, while improving your bottom-line and the quality of your product/service. Plus, it will do it quickly!
Some of the ongoing misconception is ‘Lean is too complicated, plus too time consuming’ for smaller organizations and they wouldn’t be able to afford it. This thinking/impression needs to change.
Lean is very effective in any business, and results in rapid improvement in smaller organizations.
One of the Lean tools, Value Stream Mapping, when done properly, can be done rapidly and effectively uncovering the waste, or non-value, within the processes. It makes the waste obvious in the end-to-end process – includes office/admin processes as well as any shop floor processes. Value Stream Mapping uncovers the hidden, or difficult to see waste, and demonstrates the potential of your operation both culturally and operationally.
The exciting part about using Lean in smaller organizations is the improvements can happen after the Value Stream Mapping analysis quickly (immediate ROI), and the results of the improvements are measurable immediately.
It results in a rapidly transformed operation, with all staff aligned with the vision of the organization. The organization is now able to do things faster, better, and less cost, meaning they can do more with what they have.
Some of the reasons why there is resistance to implementing Lean?
- Not aware of Lean and its’ capabilities – lack of understanding
- Have the misconception that Lean is only for the manufacturing sector
- Change can be difficult and resisted
- Not sure where to start
- Leadership not able to ‘see’ the total potential of improvement
- Not sure how to adapt Lean techniques to virtual/information flows
- Comfortable with doing things the same as years past
- No time to improve – waiting for the perfect time to improve
Typical improvements:
- Rapid improvement in communications and material flow
- Rework reduction to the point of rapidly freeing up employee time
- Higher employee retention
- Easier to recruit talented employees
- Reduced process and people stress
- Cost savings
- Understanding in detail the end-to-end processes
- Rapid implementation of new policies, or procedures, that are very effective
- Immediate merging of multiple organizations or processes – entire organization working as a ‘team’
- Become more competitive and able to do more with their resources
- Free up space
- Increase pride, and satisfaction within their staff
- Increase competitiveness
Examples of Improvement metrics:
- 40% + Increase in staff availability time
- Normally 20% to 50% reduced rework and scrap
- 20+% Increase in Quality higher than has ever been achieved before
- 10+% $ Cost savings without cutting services or staff
In summary – Lean Works!
GRANTS MADE EASY – Many businesses are making use of the government Grants and our organization has been successful at assisting with Government Grants. We have been supporting businesses in accessing Government Grants ensuring companies get approval assisting with the paperwork and taking the administrative burden off your shoulders.
Call us or send us an email to discuss further – [email protected]
