Lean thinking and the benifits of change

Building for Growth South London

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Lean Thinking Learn to stop accepting the waste

and work towards pure profit.

What is Lean?

Lean is methodology linked with techniques.

Basically, its about doing more, with less, by

encouraging lean thinking. Lean involves a

never ending effort to eliminate waste or remove

any activity that consumes resources without

adding value to the customer.


Why should we embrace lean thinking?

To stay in business these days you need to

be competitive within your sector. You can

reduce your prices, however, it could effect

the quality, cost and delivery of your service

or product.

Changing your mind-set & behaviour, lean

thinking will allow you to reduce or maintain

your product price without detriment to your

brand.


Is lean used?

Lean is here to stay. It’s a methodology that

has been developed over hundreds of years by

many world famous industrialists.

Used by major brands from FMCG, service,

retail, engineering and manufacturing

organisations plus many more.


Many elements

Lean has many tools & concepts • SMED (Quick changeover) • Standardised work (SOPs) • Flow • Kanban systems • PDCA • Poka Yoke • Total productive maintenance • 5s • Value stream mapping

Above a few of many


Customer focus • Lean follows 5 key principles:- The first of

these are to identify the customer & define

value.

• Recognise that only a small fraction of the

total time and effort in any organisation

actually adds value for the end customer.

• By clearly defining value for a specific

product or service from the end customer’s

perspective, all the non value added

activities or waste can be targeted for

removal.


Customers

Do you know who your customers

are and what they want from you?

Have you ever asked?


Add Value

• Principle two is to create a value stream

across all parts of the organisation involved

in jointly delivering the product or service.

• The goal is to ensure your process delivers

value to the customer. Once you understand

what your customer wants, the next step is

to identify how you are delivering that to

them.


To produce a value stream map

you must plot your process.

Ask yourself what adds value, what

can be removed and what needs to

stay.


Streams

Create less waste

• The third principle is to create process flow

and eliminate waste. When you first map the

value of your tasks, you will be lucky to

achieve 45% of value added activity within

that task or process.

• Eliminating all waste ensures that your

product or service flows to the customer

without any interruption, detour or waiting.


Waste

Waste is not just physical. Less

in the bin is not the only way to

reduce waste.

Other waste could involve time,

movement, stock, skill levels,

delivering too much or

producing more than is

required.


Service demand

Principle four is about understanding the

customers demand on your service, then

creating your process to respond to this

demand.

In short, you only produce what the customer

wants, when the customer wants it. This is also

known as just in time.


When?

Most companies do not have

the capacity to react to change

effectively, however, a lean

driven company will be able to

proactively deliver what the

customer wants, when they ask

for it.

This makes lean thinking

organisations very flexible and

first to market with new ideas.


Try to be perfect The fifth principle is to pursue perfection. As you remove layers of

waste from your process, more waste becomes visible. The

process continues towards a theoretical perfection where every

asset and every action adds value for the end customer.


Are you perfect?

“Perfection could be seen as a

myth, however, there is no

harm in setting your sights for

the stars”.


Live lean

These five principles will

become a way of life. A

constant review of your

processes will ensure that they

are consistently delivering

value to your customer. This

will allow you to maintain a high

level of service, whilst being

able to grow and adjust through

implementing sustainable

change.


A different mind-set 75% of lean implementations fail. Why? Easy! You have to buy into the process, stick with it

throughout the mind set & behaviour adjustments that will take place.


Looking to grow?

Embrace the lean methodology.

Follow in the footsteps

of Henry Ford, creator of the

Ford Motor Company & Taiichi

Ohno, father of the Toyota

Production System.



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Lean thinking and the benifits of change