- Are you a business owner who seriously wants to cut back on waste?
- Do you really wish to improve your profit margins?
- Does your business suffer from a high staff turnover?
- Do you wish to remain in business after the impact of Brexit?
- Do you really want to create VALUE for your customers and give your competitors a run for their money?
If you have answered YES then read on….
Let me introduce you to “Lean”. No, it’s not a dieting fad or about drastic losing weight.
Lean was originally created by Toyota to eliminate waste and inefficiency in its manufacturing operations. The process became so successful that it has been embraced in manufacturing sectors around the world. The goal of lean is to eliminate waste—the non-value-added components in any process. Unless a process has gone through lean multiple times, it contains some element of waste. When done correctly, lean can create huge improvements in efficiency, cycle time, productivity, material costs, and scrap, leading to lower costs and improved competitiveness. And remember, lean isn’t restricted to manufacturing. It can improve how a team works together, inventory management, and even client interaction/loyalty. Keeping your customers for life! Getting repeat business & maintaining that edge over your close rivals. Isn’t that every profit oriented business wants?
Benefits to Your Business:
In terms of business, value added has two main aspects. Firstly, an activity or process that changes the product or service so that it is more in line with what the customer wants is considered to add value. Secondly, the focus should be on getting something right first time so that resources aren’t wasted trying to correct mistakes or problems.
Non Value Added
Necessary work under current work activities and processes that do not add any value. As this work comes at a cost to your business, the aim is to minimise the amount of non-value added activity while still trying not to undermine or affect the quality of product or service.
Any unnecessary aspect of the business process that doesn’t add value. I can help you to identify 7 different sources of waste that lean management techniques have identified and that needs to be eliminated.
Seven types of waste are identified known most commonly as TIM WOOD
When products and materials are moved unnecessarily due to poor layout of the plant or factory floor. There might be too much stock to transport, high usage of Fork lift truck and insufficient storage areas.
Inventory or Stock
If a business finds itself carrying too much stock, not only is this capital tied up, but it can create a health and safety risk depending on what you are manufacturing? Its money that can be used elsewhere in the business.
Unnecessary movements such as too much walking for tools and materials only wastes time and human labour.
Time can be wasted for the next step in the process as a result of some operatives working slower. Or machines needing constant monitoring or if there are delays in changes.
Waste can occur of production outputs exceed demand or if production is far too ahead of schedule.
Doing more than is required from a customer’s perspective. Take the easter egg. Too much packaging only creates waste for the environment? Think, does a cucumber really need a plastic wrapping?
When outputs need to be re-worked or scrapped then waste can occur as a result of extra quality checks, storage for rejects, extra human input needed, increased customer complaints and extra overtime. All this costs you as the owner of your business.
All of these activities directly impact on costs. This is because they add no value to the manufacturing process. Since they add no tangible value customers would not be happy to pay for what is essentially wasteful expenditure in your process or service.