Lean Enterprise is a proven system that enables companies like yours to identify activities that do not add value to their products or services and to eliminate or minimize these activities.
It is a myth or misconception to define this process as a way to simply reduce a company’s workforce. In fact, companies that embrace Lean Enterprise Principles often add employees as they become more efficient manufacturers and win more business.
When used in coordination with Six Sigma problem solving methods, the resulting “Lean Sigma” effort can multiply the effectiveness of both.
The Origins of Lean Enterprise
What we now refer to as Lean Enterprise Principles and continuous improvement are not new, untried ideas, having been used since the beginning of the 20th century. Their rudiments were utilized by Henry Ford when he revolutionized the auto industry.
Lean Enterprise Principles were used in varying degrees until after World War II, when they were embraced and refined by the Japanese in rebuilding their industries. In the late 1970’s and early 1980’s, when major United States industries were seeking to improve productivity and regain world markets, many American companies rediscovered Lean Enterprise Principles.
During the 1990’s, Lean Enterprise Principles were studied extensively and a very systematic approach using a variety of tools emerged. It is this system that enables companies to identify activities that do not add value to their products and to eliminate or minimize these activities.
Typical Lean Enterprise Project Results
Every company has unique characteristics that affect potential results. But, when a company fully implements Lean Enterprise Principles, it may experience:
Lead Time Reduction of up to 95%
Productivity Increases from 20% to 50%
Work-in-Process Reduction of up to 90%
Quality Improvement from 50% to 90%
Space Utilization from 50% to 75%
Begin Your Lean Enterprise Experience
At Missouri Enterprise, we recommend that the first step in a typical Lean Enterprise implementation is An Introduction to Lean Enterprise Principles. This is an interactive, one-day workshop with classroom instruction and hands-on simulations. It will help your key management and shop personnel learn the basic Lean Enterprise Principles and how to apply them to improve quality, reduce cycle and lead time and work-in-process and increase profits.
The next step is generally development of current and future state Value Steam Maps of your operations. A current state map is a graphical representation of all the value added and non value added activities (including the flow of both material and information) involved in bringing the product from raw material to the customer. A future state map is a guide to improving the company’s processes and eliminating non value added activities.
Then, a number of Lean Enterprise Principles can be applied in an organized, systematic series of Kaizen Events designed specifically for your company. Just some of these are:
Visual Workplace: A workplace using simple visual and audio signals to provide an immediate understanding of the present status and indicators of appropriate actions.
Workplace Organization/5S: A method of creating an organized, clean and efficient workplace that improves safety, quality and efficiency. The five S’s are sort, set in order, shine, standardize and sustain.
Pull/Kanban: A system based on customer demands, that controls inventory amount and movement; authorizes production; and provides visual controls.
Point of Use Storage: Keeping an inventory of supplies and equipment in specified locations in a facility near the operation where it is to be used.
Standard Work: An agreed upon procedure that combines people, materials and machines to best maintain safety, quality, efficiency and predictability.
Quick Changeover/Setup Reduction: Decreasing the time necessary between the moment that the last item of the previous lot or batch is completed and the moment that the first good item, at the normal production pace, of the next lot or batch begins.
Total Productive Maintenance (TPM): Enlisting operators to ensure that every machine or process is always able to perform its required tasks without interrupting or slowing down defect free production.
Facility Layout/Cellular Flow: Grouping machines or processes that are connected by work sequence in a pattern that supports efficient movement through production.
Getting Started on Your Lean Journey
To help your company begin its journey to World Class Lean Manufacturing status, your Missouri Enterprise Area Business Manager will work with your staff to analyze your strengths, weaknesses, resources and opportunities and will prepared a detailed proposal and cost quotation for your consideration.