No matter what type of business you run, cutting costs and operating more efficiently should be a top priority. This is called lean operations, and it is a pivotal strategy for improving internal functions within a business, creating a productive and engaged workforce throughout the business, and increasing profit.
In today’s society, companies face increasing competition at home and abroad, but finding better, quicker, less costly ways to operate is necessary to remain relevant and stay in business. The theory of lean operations is a method that businesses have been using for almost a century. The ROI of lean operations guarantees greater employee engagement and a more extensive bottom line.
What Are Lean Operations?
A lean operation is a full-blown business strategy that is driven by the principle of doing more with less. It is an understated approach to running a company and improving day-to-day operations. In many words, lean operations are all about putting a little more efficiency into your business work flows.
According to the Lean Enterprise Institute, “A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste.”
There are many lean operation examples in every type of business industry. Amazon.com is one company that demonstrates this approach with a promise to their customers that outlines their internal operations strategy. After 25 years, they still follow their original mission: “We aim to be Earth’s most customer centric company.”
How do they do this? Through the incessant improvement strategy that is the foundation of lean operations. “By innovating innovative solutions to make things easier, faster, better, and more cost-effective.” Their goal as a company is to get products to customers at an unrivalled pace which requires every step in the supply chain to be as efficient and fluid as possible.
By putting lean operation principles into practice, this begins with a detailed analysis of your organization’s procedures and finding alternative, more efficient ways to achieve your business goals. It also includes enhancing the visible elements of a business, such as the employees and physical environment, to improve overall output and performance.
The eventual goal is to create a lean environment that has cut costs, and reduce wasted energy, resources, and time. This is usually attained through building a deliberate workforce structure, an enhanced facility, and refined processes. Lean operations management is often maintained by digital transformations that streamline communication and automate internal tasks.
Why Is Lean Operations Important?
Running a business as proficiently as possible may seem like an obvious goal, but even the more productive business leaders can easily get bogged down in the day-to-day processes. It’s easy to forget to take a step back and take stock of the company on a more rounded level.
In today’s world, building a high-functioning business is more important than ever. By taking a lean approach to operation management, this creates business agility, which is a necessary quality to prepare for and survive a crisis like the COVID-19 pandemic.
But with a crisis live COVID-19, this can also be the perfect substance to adopt lean operations management principles. An unsettled event can reveal weak spots in your workflows and could reveal the perfect chance to chart a new course.
With a lean approach operation management can withstand unexpected changes, and limit disturbances so a business can continue to produce value for its stakeholders.
Which Industries Can Benefit from Lean Operations?
The lean operations definition is consistent throughout multiple industries, but the way a business includes a lean operations strategy it is definite to the needs of a company. Almost any company can benefit from a shorter lead time.
Any business that makes and/or distributes goods or provides a service to customers can benefit from this approach.
There is a whole big piece of work around the whole LEAN subject – the area that we touch with our customers is helping them to clearly mark up their manufacturing and storage facilities; clear floor markings and safety guidance markings can greatly help in the actual implementation of Lean and 5S initiatives, as well as keeping the workplace safe for everyone
There are also large cost benefits from investing in well-designed asset protections – such as barriers to segregate pedestrians from MHE movements and to protect expensive equipment from impact and damage.
The initial investment in such barriers can be a significant cost; but when you consider the costs of downtime through damaged equipment – or even worse – the possibility of injury caused by contact with MHE movement, the consequences of such incidents will certainly outweigh any initial investment.
By partnering with an experienced supplier, who understands your challenges and can offer a solution that is ‘fit for purpose’, you can make sure your investment supports your whole Lean objective.
If you like to discuss how we can help with future projects then get in contact today.