What is LEAN?
Traditional process improvement focuses on improving the parts of the process where useful work is being done on the product- work which the customer is willing to pay for. These process elements are termed 'value adding'. The problem with this approach is that even in world class companies, the value adding elements typically make up just 2% of the total lead time of an order; thus the potential for significant improvements in lead time and overall efficiency is immediately limited. These business improvements were usually made after work place time study of
personnel, or by making machines run faster and harder.
The Lean approach looks at reducing the non value adding elements of your business processes. By analyzing and eliminating waste in all its forms,
dramatic, double figure improvements in lead time,
production efficiency, stock turns, cash flow and floor
space utilization are all possible. The business improves
by working 'smarter not harder', and the most
surprising element of lean is that most improvements
cost little or no money; all that is required is some time
and effort from your greatest asset, your people.
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