Lean is an uncomplicated business system for organizing and managing the complete supply chain from suppliers through operations/production to customers. The focus of lean is to enhance customer value at all stages and reduce non value adding activities (waste) of all kinds using a practical and systematic approach allied to a change in business philosophy.
The key elements of this paragraph are:
“the complete supply chain” – sometimes called the value stream. This is mapped clearly to gain a clear idea of what an ideal scenario would be. To identify what exactly the customer wants, when and to what quality.
“reduce non value adding activities” – this means all areas where activity does not add value to the customer’s requirements, often as much as 60% of sales turnover can be wasted in non value adding activity (examples of typical waste are defined in our download Waste or Muda).
“practical and systematic approach” – lean toolsets are not complicated but are robust, structured, well developed, measured, reviewed and sustained and they need to be learnt, understood and practiced by those involved in the value stream, at each stage.
“allied to a change in business philosophy” – The adage goes ‘if you don’t change the way you do things then nothing will change’. So it is for Lean; decisions about improvement come from much lower down the organisation, the workforce all have to be involved in improvement activity, not just managers. Manager’s roles change and often they need developing into coaches, mentors and leaders. Improving your productivity is easy; changing your culture is sometimes more challenging.
The outcomes of Lean are quite simply better quality, improved delivery and reduced costs. If you have your whits about you as a business the end game is increased margins, steady sustainable growth, delighted customers, improved cash and market domination.

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Summary of the Manufacturer Live 2007 Lean Survey.

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