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'Lean' business

Hi, I have heard of a business management theory called 'Lean' does anyone here do it in their business and how does it work for them? Thanks in advanceSarah
Sarah
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Comments

  • ajaxgeezer
    ajaxgeezer Posts: 2,476 Forumite
    Hi Sarah, I'm by no means an expert but am a Lean/6Sigma Yellowbelt if that means anything to you?

    Lean is largely identifying waste and removing it, whatever form that waste may take.

    Any specifics you want to know?
  • saraharrow
    saraharrow Posts: 197 Forumite
    Hi, A yellowbelt, that sounds like Karate! What I want to know is how effective is this as a management model, and could it be implemented into a transport company. How soon can I expect to see results, and how popular is this amongst businesses - everyone I've mentioned it to thinks its a diet of some kind! And have you done this in your business or is this your business? Thanks, it would be appreciated! Sarah
    Sarah
  • ajaxgeezer
    ajaxgeezer Posts: 2,476 Forumite
    :) Yellow Belt is part of the structure of the system. We have four grades at my place, yellow belt, green belt, black belt and black belt champion. I have no idea whether that's standard across the system.

    It's quite popular in business both on its own and when used with other tools like Theory Of Constraints and Six Sigma. It was started by Toyota as an alternative to the 'push' system of mass production which just created too much inventory. Toyota famously created the "15 day car"... they'd take your order for a car, start it from scratch and then park it on your driveway 15 days later - as long as you were in Japan :)

    It will work in any business, hell it will work in any process at all as it is simply an aspiration to remove any wastes - it lists 8 wastes.

    And it's not my business, I'm a lowly lab analyst for a company which makes titanium alloys for aerospace engines... I just think it's the way forward along with its good friends TOC and Six Sigma.
  • saraharrow
    saraharrow Posts: 197 Forumite
    Aaahhh, Toyota and their 'pull' rather than push...its slowly ringing bells with me! Do you know what the 8 wastes are? I am really pushing my luck here, sorry but now I am intrigued. Thanks once again,Sarah
    Sarah
  • ajaxgeezer
    ajaxgeezer Posts: 2,476 Forumite
    saraharrow wrote: »
    Aaahhh, Toyota and their 'pull' rather than push...its slowly ringing bells with me! Do you know what the 8 wastes are? I am really pushing my luck here, sorry but now I am intrigued. Thanks once again,Sarah

    lol yeah....

    Rework/scrap
    Waiting
    Inventory
    Over Production
    Over Processing
    Transportation
    Motion (while processing, as opposed to transportation)
    Under utilisation of human intellect i.e the shop floor guys know the process better than anyone.
  • saraharrow
    saraharrow Posts: 197 Forumite
    Thanks ajaxgeezer, sounds like you should be a blackbelt!
    Sarah
  • Emmzi
    Emmzi Posts: 8,658 Forumite
    1,000 Posts Combo Breaker
    I'd recommend 'Lean Thinking' as a read. Interesting case study on the logistics side of Tesco which may be relevant.
    Debt free 4th April 2007.
    New house. Bigger mortgage. MFWB after I have my buffer cash in place.
  • saraharrow
    saraharrow Posts: 197 Forumite
    Thanks Emmzi, I will look out for this.
    Sarah
  • ajaxgeezer
    ajaxgeezer Posts: 2,476 Forumite
    saraharrow wrote: »
    Thanks ajaxgeezer, sounds like you should be a blackbelt!

    ....hehe maybe one day eh :)? Those roles tend to get saved for top brass though
  • normskiuk
    normskiuk Posts: 18 Forumite
    Hi Sarah,

    OK Lean:

    I would recommend that you get upto speed with a tool called value stream mapping this will highlight some or all the wastes ajaxgeezer refers to. I work in your line of business looking at waste within the supply chain for a well known prestigous car manufacturer. On the subject of Lean, it will not work unless you have total commitment from the senior management within your company and also then there will need to be a cultural change, I can recommend a book called the machine that changed the world by by James P. Womack, Daniel T. Jones, and Daniel Roos, it is regarded by many as the best book on lean there is also learning to see which is again by the aforementioned authors. There are many websites also which you can research google lean manufacturing, Lean manufacturing or the Toyota production System has tried to be copied by so many companies even the one I work for, and we haven't been able to get near the super efficient way Toyota manages simply because I believe its down to cultural differences. As a start I would recommend you follow the lean route and to be perfectly honest if you use a "fresh eyes approach" there will be a lot of waste that stares you in the face and is low hanging fruit to be easily removed throughout your whole business I guarentee you will find waste within the company you work for.

    6 Sigma:

    I am also a 6 sigma green belt, we go upto Master blackbelt (I know what every bodies thinking karate) where I work, this was originally a quality improvement tool originating from Motorola, you need to walk before you can run so I would recommend that you get into Lean first before venturing into 6 sigma, we are now heavily into the next step which is Lean 6 Sigma.

    Let me know if you would like any further info, pm me if I can be of any assistance.........Like i said earlier get the buy-in from your senior management (Pivotal, if you don't you will not succeed) as this will no doubt require a total mind-set / cultural change within your organisation......sorry for rambling on!!!


    normskiuk
    normskiuk
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