How Can a Company Improve Its Bottom Line Using Lean Manufacturing Techniques?

How Can a Company Improve Its Bottom Line Using Lean Manufacturing Techniques?

By Discovery Lean Six Sigma

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How Can a Company Improve Its Bottom Line Using Lean Manufacturing Techniques?

It’s hard to avoid hearing about lean practices nowadays, and their spread has caused a large number of people to not only start applying them to their businesses, but to contribute to the field and improve the current state of affairs too. Today, there is a lot to gain from properly applying lean methodologies to your company’s production work, and you can end up improving the final output and your profit margins by quite a lot.

Eliminating Waste

Waste is one of the biggest problems you’ll face when running a production facility, and it can come in many forms. Some people take the term literally and consider lost materials to be the sole type of waste, but the rabbit hole goes much deeper than that. Time can be wasted, and so can opportunities – and even experience and knowledge can be wasted when they’re not applied at the right time.

Lean is largely focused on the concept of identifying waste and removing it from your operations. Figuring out where your biggest waste-related issues are can be a difficult task, especially if you don’t have a lot of fundamental experience with the idea of waste in the first place. Lean can help you overcome this problem and ensure that waste doesn’t come back to cause further problems later down the line.

Optimizing the Workflow

Another great benefit of lean is that it can allow you to streamline the operations of your company in a more efficient way, and ensure that goals are being met without any unnecessary delays. At the same time, lean can also help you minimize the time required for certain processes, in some cases beyond what you would be able to identify on your own.

In some cases your organization would be running far below its optimum efficiency and you won’t even realize that. This is a common problem with companies that span across multiple departments, each with its own complex set of tasks and little coordination between them. In those situations, the productivity of the company as a whole may be hindered by unnecessary delays incurred in waiting on the communication between different departments.

You’d be surprised how much the speed of some operations can be increased when you analyze them from a lean perspective. Some companies go through major transformations that completely change their mode of business after implementing lean, but in the end they benefit from that quite a lot. Make no mistake, lean can be challenging to implement in some companies, especially those that have been on the market for a longer time and have operated on non-lean practices until now. But the final reward from this effort can make it more than worthwhile.

Increase Your Profits by Reducing Your Costs

This is one of the main factors of attraction for some leaders, and that shouldn’t come as a surprise to anyone. Lean can be very good at helping you reduce the costs of your operations, and in the end, if you manage to keep everything else in a similar state as before, you’re likely going to profit quite nicely.

And then, lean can also help you put those extra profits to good work by investing the funds in the right areas of your business. In the end, you can find your company running more smoothly than ever before, and with less need for supervision of its various processes as well, and all it takes is making that first step towards a lean transformation.

We also mentioned above that people like to contribute to the field a lot, and you should definitely join in on that if you feel like you have something to add to the discussion. Lean is still evolving at a rapid pace, and there is a lot of room for new ideas to be brought to the table.

Conclusion

Once you’ve successfully transformed your organization into a lean one, you’ll wonder how you’ve been able to get anything done properly in the past. It’s a change that will completely alter the way you do business and present yourself on the market, and it will ultimately lead to a lot of growth in your business.

 

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Original: http://www.shmula.com/how-can-a-company-improve-its-bottom-line-using-lean-manufacturing-techniques/24216/
By: Shmula Contributor
Posted: October 22, 2017, 4:31 am

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