Sirius Solutions Blog

LEAN is an approach for process flow improvements that is directed at eliminating those activities that do not add value. As such, waste is removed, systems are better organized and customer value is maximized. Companies that apply LEAN to their business processes have better information for decision making, and will be able to execute reports in a timely and efficient manner.

LEAN began as a technique to reduce waste, primarily on the factory floor. Before long it was being used to streamline transactional office and service processes, and now has developed into a means for improving more demanding aspects of knowledge work including engineering, product development and accounting and finance. The LEAN principles are below:

• Specify value in the eyes of the customer
• Identify the value stream, then eliminate waste and variation
• Make value flow from the pull of the customer
• Involve, align and empower employees
• Continuously improve knowledge in pursuit of perfection

From an organizational standpoint, traditional approaches lead to siloed groups formed by functional areas. These groups often work only on their own duties, unaware of the total value stream. The attitude of “every one for themselves” leads to disruption in flow, bottlenecks and inefficiencies. When the focus turns to the value stream instead, these same groups take a product flow perspective and can avoid delays and satisfy customer requirements.

The tools of LEAN focus on the process and the results are impressive. LEAN principles result in improvements to on-time delivery, labor productivity, throughput, work-in-process inventory, internal scrap and time-to-market, in many cases by 50% or more! This allows companies to improve delivery and response times, leading to increased customer satisfaction and bottom line growth.

   categorized under:  Business Processes