Lean organisation. How to create maximum value at minimum cost
The concept of lean organisation aims to increase the efficiency of the company by optimising time and production processes
After having seen what waste must be eliminated in the company's production processes, let us see what principles must be applied to transform a traditional organisation into a lean organisation.
Any change implemented within the company must have as its starting point some fundamental concepts:
- Customer focus. The company's objective is to provide a product or service with high added value for the customer. Dialogue is essential to identify the needs and define the value.
- People contribution. The achievement of objectives is only possible if all people working in the company, from management to workers, are involved in the projects and made to participate.
- Elimination of waste. All activities that do not create value or absorb resources and energy unnecessarily must be eliminated.
- Continuous improvement. Any activity can be continuously improved and perfected and all workers must contribute to this process of continuous and constant improvement.
The 5 principles of lean organisation
Having understood what are the key concepts to start with, let us now see what are the 5 guiding principles that characterise lean organisation.
Value. Define value, but from the customer's point of view.
One has to ask what the customer is willing to pay, what is able to satisfy the demands and needs. Only in this way can zero-value or MUDA activities be identified and then removed.
Map. Identify the value stream, to eliminate waste.
This is the logical consequence of the previous point. All activities that do not create perceived value must be removed. At this stage, it is very important to distinguish between non-value activities that can be eliminated immediately, and non-value activities that are nevertheless necessary for the business.
Flow. Create flow to reduce lead time.
Work must be managed in such a way that activities take place without interruptions and stops. Synchronising the various production steps improves the qualitative and quantitative efficiency of the company, reducing wasted time and energy.
Pull. An activity is started when there is a demand downstream.
Production must be coordinated with market demand; producing when there is no need generates a cost (of the activity) without generating value, thus leading to waste. Each activity must start when there is a specific demand, whether from the downstream process or from the external customer.
Perfection. Strive for perfection through continuous improvement.
Even when results are satisfactory, one must continue to monitor the flow of activities to identify waste and propose improvements and optimisations. This is crucial because customer value is constantly changing and the company must continuously adapt to new objectives.
What are the results?
The companies that succeed in applying these principles and methodologies obtain results above all in terms of both qualitative and quantitative efficiency. In detail, there are
- increased productivity
- reduction of stocks and semi-finished products
- reduction in product costs
- increased product and process quality
- reduction in delivery times
- increased competitiveness
- increased staff motivation
Now that the principles and concepts to be applied are clear, all that remains is to implement them!
And to do this, it is important to remember that one cannot simply rewrite processes and activities, but that the objectives must be shared and understood by all the people in the company.
Every change, however big or small, happens if all people are motivated to make it happen.
