Thursday, August 12, 2010

The Basics of Lean Thinking

Many people have told me, “We are a very lean organization. There are only five of us left in the company, so we cannot get any leaner.” Is this really what lean is all about? Actually, Lean is not about the number of employees you have, but rather how much you can accomplish with the resources that you have, regardless of whether you are many or few.
When you first hear the word Lean, you might think of thin people or lean meat with very little fat. The word lean may bring up different images for different people. But, what does lean really mean when applied to a business?
My definition of a lean firm is one that can consume less of everything and accomplishes more with less. Lean companies use fewer materials, less time, less energy and less space. They are driven by customer demand, minimize inventory and use the most effective and economical way to manufacture and deliver their products or services.
Lean is not new. Some of its tools and techniques have been around for many years. Many of these were taught to me in Engineering School in the UK and on the shop floors in Germany and Japan.
However, round about the 1980’s the phrase "lean production" was coined by MIT MBA student and IMVP researcher, John Krafcik, to identify the Toyota methods. The term has since grown to represent a particular set of ideas and methods, which when combined are referred to as Lean.
The focus on eliminating waste is at the very heart of Lean Thinking. Lean focuses on eliminating waste at every level of an organization. It does not matter whether you are a one person company or a multinational company employing thousands. Lean can provide significant improvements to your business.
To learn more about Lean processes and Methods give us a call or attend one of our Lean Training Seminars.
You may also call Chili at Tel. 544 3047 and at 813-7824 Fax. (632) 373-2544. Email us at seminars@rmpconsultancy.com to make a reservation.