You’ve likely hard the term, “lean”, referring to business efficiency, but what exactly is it? Lean is defined as “a systematic approach to indentifiy and eliminating waste ( non-value-added activities from the eyes of the customer) through continuous improvement by flowing the product/ service at the pull of the customer in pursuit of perfection.”
Lean operations use the minimum amount of people, inventory and equipment absolutely necessary to meet customer demand and quality requirements.
Following are seven wastes that every process (manufacturing, distribution, services, financial or medical) should try to eliminate:
- Processing/Over-Processing- Redundant quality checks are any activity that adds no value for the end customer.
- Inventory- Any process inventory (materials or paperwork) that exceed the internal or external customers’ requirements, including work in progress.
- Conveyance- Movement of material, paperwork or information
- Waiting- Paperwork, associate, material or machine waiting time.
- Overproduction- Producing more or faster than the customer needs.
- Repair/Rework- Activities, operator or machine motion that exceeds the minimum possible.
Focus these critical seven areas and you’ll be on your way to a more efficient and productive business.
Tony Lego is an expert in lean operations at Expense Re-Duction Consulting in St. Augustine. He can be reached at 904-401-1235 or at TLego@ERCsaves.com