June 29, 2016 Industry Forum Blog 7 Wastes, eliminating waste, improve your productivity, lean approach., Lean techniques, lean tools, Small and Medium Enterprises, SME “That’s great, but it won’t work here” is usually among the first comments we get when we tell people we help businesses deploy lean techniques to improve their competitiveness. Whilst most people now accept that these techniques work across more sectors than just automotive, the biggest challenge is in engaging the SME community. In the UK the number of SMEs are growing. At the start of 2015, 99.9% of all private sector businesses were classed as SMEs (UK stats). They provide 60% of private sector employment and 47% of turnover, which is £1.8 trillion. The pattern is similar across the EU and the States and these important economic contributors are under just as much pressure to perform as large multi-nationals. So the question is can techniques that work in mass production environments with several thousand employees, work for companies that employ less than 250 people? Can they improve the performance and productivity in businesses that make highly customised goods, provide services, are in construction or even farming? The simple answer is yes they can, and yes they do. How? There are lots of different lean techniques. It’s not all about load levelling and keeping expensive machinery in optimum working condition. Whether you are making goods or delivering a service you will rely at some point on people and there will be some sort of process. A process is the combination of manpower, materials and machines (equipment) to provide a good or service that the customer wants. The customer judges that good or service in terms of quality, cost and delivery. The lean tools help you focus on finding better ways of combining the process inputs so that you can not only please the customer but be profitable as well. Key approach for small teams Whether you are in a company of 1, 10, or more you will benefit from even spending a small amount of time doing this: Be sure you have a clear strategy – where you want to go. Turn the strategy into a plan with clear targets – even if that’s only two items! Quickly analyse where you are against those targets, to identify the problems and opportunities for improvement. Seek advice on the most appropriate lean techniques to bring about the change you need. My recommended top tool Understanding the 7 Wastes is key to making any improvement. It’s at the heart of all the lean tools. You can use it if you work solo or in teams, manufacturing in an office, designing, making, selling or ordering. Eliminating wasteful tasks allows you to spend more time doing the tasks that add value, without actually working harder. If you can produce more output by better combining your inputs and eliminating waste you will improve your productivity. Best of all it’s really simple to learn and deploy. And you will find you can make big performance improvements for relatively little financial investment. What can we improve using the lean approach? So if you recognise any of these issues, there is a lean technique that will help you. You need a sustainable way to reduce your costs; no cutting heads or limiting spending. Poor quality levels. Late deliveries. A shortage of working space or lack of capacity. You struggle to release your time to grow the business. Can’t get your ideas to market quickly enough. Problems keeping your equipment working. You can find advice on lean techniques in many places including books, online, in our Related Posts (below) and across some of our Case Studies. Why not contact our team for more information about how we can help your business become more competitive.
