Lean Enterprise: Whats in it for you

1
Lean Enterprise Whats in it for you?

• Presented by Bud Gookins
• President of Strategic Quality
  Consulting
• and a member of The Cleveland
  Alliance.
• Comments from the small and medium size
  manufacturers
• Hey Look, Im making money and I guess I
  will continue to survive, so why do I need to
  spend money on another fad? I really dont have
  the time to tie up my people on this thing.
  Besides Im not sure I know what Lean is!
• Why not spend this money on another piece of
  equipment? In fact,Why spent this money at all?
  And besides, how can I be sure that I will get a
  return on my time and money spent?
• These are legitimate questions!

2
Lean Enterprise Whats in it for you?

• Lean Enterprise is an initiative designed to
  eliminate waste, and every organization is
  subject to generating waste.
• Waste in the office processing
• Waste in the manufacturing processes
• Waste in the staff support functions
• Waste in the supply chain
• Waste in the technical specifications

3
Lean Enterprise Whats in it for you?

• Waste equates to dollars lost, opportunities
  lost, and loss of human motivation.
• Each of these three criteria can have a
  positive impact on the organization's bottom
  line. And the bottom line can be the difference
  between profit and loss to an organization, or
  the difference between just barely making a
  marginal profit and becoming a cash cow
  enterprise.
• Lets take a look at each of these three
  criteria.

4
Lean Enterprise Whats in it for you?

• Waste equates to dollars lost.
• Every organization has an intrinsic proclivity to
  generate
• waste in the way they run their business.
• Waste is the difference between the way things
  are now and the way things could be if everything
  were perfect-no errors, troubles, problems or
  complexities.
• Waste comes in four major forms
• Organizations waste materials, capital, time,
  and the opportunities that could lead to
  increased sales and/or profit.
• Traditionally organizations concentrate on the
  waste of
• materials and capital. Actually the source of
  all waste is the misuse of peoples time, energy
  and brain power.

5
Lean Enterprise Whats in it for you?

• Waste equates to dollars lost (Continued)
• When you improve the quality of the
  product, you must improve the process(es) that
  produce and support that product. Quality alone
  is not enough. It must be achieved in a way that
  also lowers costs and improves productivity.
  Eliminating the waste improves the quality of the
  work process, which in turn improves the quality
  and consistency of the product produced.
• This approach can be applied to all
  disciplines of the organization such as sales,
  engineering, finance, human resources and
  administrative functions as well as
  manufacturing. Rooting out the waste and
  preventing its return is the core activity of the
  right way to manage.

6
Lean Enterprise Whats in it for you?

• Waste equates to dollars lost (Continued)
• The Lean Enterprise process can be simplified by
  first, find the waste secondly, to get rid of
  the waste and thirdly,
• prevent its return-forever." The Lean
  Enterprise process looks everywhere for waste and
  reviews every activity to evaluate whether it
  adds value from the external customers
  viewpoint.
• The core activity of the right way to manage
  is to continuously and effectively improve all
  work processes by identifying, quantifying, and
  eliminating waste.
• The lean system emphasizes the prevention of
  waste any extra time, labor, or material spent
  producing a product that does not add value to
  it. Bottom line lean equates to savings.

7
Lean Enterprise Whats in it for you?

• Waste equates to opportunities lost
• Your company can apply lean methods and
  techniques to your business processes as well as
  your manufacturing processes to deliver better
  value to your customers and this is an
  opportunity that you cannot afford to lose.
• A lean initiative has four main goals
• Improve quality meeting customers expectations
  and requirements.
• Eliminate waste targeting areas that do not add
  value.
• Reduce lead time meeting customer demand
  quickly while improving your return on investment
  (ROI).
• Reduce total costs look for opportunities to
  lower the price and operating costs of your
  products or services.

8
Lean Enterprise Whats in it for you?

• Waste equates to opportunities lost (Continued)
• Implementing lean tools and techniques will
  enable your company, no matter how large or
  small, to meet your customers demand for a
  quality product or service at the time they need
  it and for a price that is competitive.
• A lean system also creates a business and
  manufacturing process that is agile and
  efficient, and that will help your company manage
  its total costs and provide a fair ROI.
• THIS EQUATES TO OPPORTUNITIES GAINED!!

9
Lean Enterprise Whats in it for you?

• Waste equates to loss of human motivation
• A lean enterprise fosters a company culture in
  which all employees continually improve their
  skill levels and production processes.
• And because lean systems are customer focused
  and driven, a lean enterprises products and
  services are created and delivered in the right
  amounts, to the right location, at the right
  time, and in the right condition.
• Products are produced only for a specific
  customer order rather than being added to an
  inventory.
• If an employee feels the company is watchful of
  waste then that employee is more likely to commit
  himself or herself to participate in the effort.

10
Lean Enterprise Whats in it for you?

• Waste equates to loss of human motivation
  (continued)
• For cost management to be successful, everyone in
  your organization must contribute to the
  effort.They must feel a part of the improvement
  process, and be empowered to commit time and
  intellectual resources to the effort.
• Many organizations will commit financial
  recourses to the processes, but lack attention
  and initiatives for creating a work environment
  that encourage their employees to embrace the new
  found philosophy.
• Organizations must demonstrate their commitment
  to motivating the employee and not to waste this
  tremendous resource. If they choose to ignore
  this opportunity and waste it
• THIS EQUATES TO MOTIVATIONAL LOSS!

11
Lean Enterprise Whats in it for you?

• Conclusion
• Globalization is here, and the competition is
  becoming greater. In order to survive no
  organization can afford to waste resources its
  that simple!
• The Lean Enterprise system developed by The
  Cleveland Alliance has a modified approach which
  includes, in addition to the standard lean
  process, emphasis on internal communication,
  employee motivation, time management and basic
  problem solving skills. This curriculum is
  designed to provide a more effective method of
  the lean process.The question of Whats in it
  for you? is best answered by a question. Can
  you afford not to consider the benefits of
  applying the lean system?