How Lean is Your Administration or Service?
Often you will hear an organisation talk about being '
Waste is fairly easy to spot in manufacturing areas, in some cases you can quite literally fall over it and it's the area that gets all the press. Yet there is a huge amount of waste in the non-manufacturing areas of the organisation as well, some studies suggest up to 80% of the waste lives here! So why aren't organisations looking here?If we split the organisation
What If You Applied Lean Thinking?
Now, think about your admin side of things, from a lean waste point of view, how much handling, rework, reverification, and other things can you think of, how is the 5s while you are there?What tends to happen is that 'things happen' in the admin side, maybe the sales order needs to be rechecked, the specs need reconfirmed, you are on stop with a supplier because finance didn't pay. The effect is that the release to production date moves to the right, the delivery date however doesn't. This means you need to recover the situation to meet the date so you put in a chunk of over time and what do you know you make the date.. but at a cost. What's worse that cost is shown in the manufacturing side of the fence when it's a cost created by the late delivery of the product, in this case the information, from the Administration side of things. So really your administration costs of a product are not fixed, they are in fact variable because your processes are variable, and they are impacting on your lead time!
By implementing lean processes in your administration areas as you remove the waste in these areas the information flow to the manufacturing side of the organisation improves, mistakes are reduced, waiting times are reduced and over all product lead times are reduced.
The 5 Core Principals of Lean
Over the coming weeks, we will be talking about how the 5 core principals of lean:
- Value – as seen from the customer's point of view
- The Value Stream – which parts of the product lifecycle actually adds value for the customer
- Flow – how things move from one part of the business to another and to the customer with zero waste
- Pull – This is what drives flow, nothing is created before it is needed
- Perfection – Driven by continuous improvement how to avoid and remove waste
Get In Touch
If you need any support in developing or improving your operational excellence or lean program in your organisation then click here to make an appointment and find out how we can help you Make Things, Better
You can also call John on 0211649739 to set up a meeting