One of the most commonly asked questions relating to Lean is…
“How can I remove the waste activities from my business, when we produce so many things or when our range of services is so large?”
The answer is to identify the main product group that’s responsible for the largest chunk of your business. A simple volume/value analysis will demonstrate how this works.
For example, a company we are helping just now imports more than 1500 product lines, but 50% of the profit is accounted for by only 124 SKU’s.
Another service based business, conducting environmental testing, found that their top 20 tests accounted for 34% of their business but 80% of their business was on just 16% of their services.
In both cases, fixing the common processes across the major chunks of business, will drive significant improvement through the whole of the company.
After we’ve identified our Value Stream, we need to map it, so we can take an objective look at it works and where it can be improved.
Our 7 point plan includes:
So now that you have a good idea of the current way you’re working and the opportunities you have to improve, you can start to develop your future state map and the implementation plan.
ALC specialise in helping businesses to realise their potential through the elimination of waste in business processes.
Contact us for more details.
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