Operational Excellence
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Operational Excellence

Lean

Introduction

Lean is a way of working that enables organizations to use optimal resources to achieve maximum output. Sounds like an oxymoron? Yes! Nonetheless, Lean is indeed the answer to organizations looking for the means to DO MORE with LESS! How is this possible?

'With Lean, it is
possible to achieve
efficiency and speed
to market while
reducing cost'

Lean is an organisational-wide strategy that is focused on the relentless elimination of unnecessary, non-value-added activities ie WASTES. Any activity or process that consumes resources, adds cost or time without creating value presents an opportunity for improvement. The outcome of implementing Lean is an organisation that is nimble, competitive, flexible and responsive to market demands and needs.

The benefits of Lean deployment are: greater customer satisfaction in terms of shortened delivery or lead time, increased capacity, and cost reduction.

Although the Lean concept has its origins at Toyota; the Lean management principles and approaches are relevant to both manufacturing and service organisations. The difference lies in the tools that are used for analyzing and improving processes; with some tools generally more suitable for manufacturing processes and some others more suited for services.

Today, Lean is widely applied in manufacturing, as well as hospitals, logistics, travel, financial and government services the world over. If your organisation would like to dramatically improve your bottom-line through improving efficiency and speed to market, Lean is your answer!

Benefits of Implementation

Depending on the industry type, an average company can expect the following benefits:

  • production lead time reduced by 20 to 70%
  • inventory levels reduced by 20 to 70%
  • inventory costs reduced by 30 to 70%
  • productivity increased by 2 to 3 fold
  • space utilization reduced by 10 to 70%
  • on time delivery improved to more than 95%
  • capacity increased by 10 to 70%
  • equipment uptime enhanced to 90 to 95%
  • employee morale improved and turnover decreased