Lean business:
A practical low-cost approach to increasing a business system’s capacity, effectiveness, and profitability by increasing current capability and resource utilization through the reduction of non-value adding activities (actions consuming time, resources, energy, and cash, yielding little or negative real return) providing intentional focus on those actions and activities that provide the greatest positive impact producing the highest tangible and sustainable return.
Solving business problems - Two approaches:
1. Innovation, applying the latest high-tech equipment and systems, typically at significant cost and risk
2. Lean, a highly effective and practical, low-cost approach utilizing current capabilities and resources
Both have their place, but lean provides the means to leverage the greatest amount of value-producing benefit from current capabilities and resources at little to no additional cost or risk.
Value focus:
A focus on the value-adding steps and processes in the value stream that provides the straightest and shortest path (least time and resource consumption) through the whole-system value stream, from start to finish. A value focus identifies all steps, movements, wait time, space, (waste) that consume time and resources but add no value to the product or service provided.
There is often tremendous opportunity for tangible gain with current resources and capabilities by reducing non-value-adding activities and deploying the freed-up time and resources to real value-adding actions.
Value-add:
Any, and all, actions and things that add tangible value - what a customer is willing to pay for - to the product or service being provided
Waste – Non-value-adding:
Any, and all, actions and things that consume resources -time, materials, effort, cash – but create no additional value to the product or service provided. Eliminating waste, frees up time and resources that can be deployed to value creating actions, increasing productivity and reducing unproductive actions and demands.
Value stream:
The flow of actions and processes that take place from the start to finish of any product, service, or cycle: prospect – appointment – sale - order entered – process/make – ship – invoice - receive payment
There is a value stream, also, within each component of the complete cycle. There are opportunities at -the whole system level as well in each individual component to capture value creating opportunity with the least consumption of resources.
Flow Illustration – Work Flow & Information Flow:
Unleash hidden capacity and slash unnecessary costs and effort by straightening and shortening the path and removing hurdles and barriers to your work and information flow.