The Power of LEAN…and Why You Need It

Authored By: Lisa MachosLEAN Implementation & Six Sigma Action Systems

What is LEAN?

The Simple Definition:

LEAN Methodology is a business application to systematically streamline processes by eliminating inefficiencies (waste) within the current state of the

processes.

• LEAN Methodology was born out of the HOUSE of QUALITY, created by Toyota Production Systems.

• It is a business application based on manufacturing principles and best practices to streamline processes and maximize outputs within the environment by reducing excesses (see next slide).

• Although it can be used in conjunction with the following, it is a different methodology entirely from Six Sigma, Total Quality Management, Kaizen or Continuous Improvement.

What is LEAN?

Meet TIM WOOD

TIM WOOD is the acronym given to identify 7 main forms of waste that LEAN deliberately targets and aims to eliminate inefficiencies

in these areas completely:

T – TransportationI – Inventory

M – Movement

W – Waiting (time delays)O – Over-productionO – Over-processing

D - Defects

The Benefits of LEAN

1. LEAN sets you apart from your competitors: The more efficient your processes are, the less cost goes into making your final product or service, therefore you can be the lowest bidder and still be profitable.

2. LEAN supports growth: When you notice that you spend all day in meetings or putting out fires, that is sign that the current processes are not supporting the output needed in an efficient manner. LEAN remedies this issue without adding the expense of more people to your workforce.

3. LEAN makes your workforce more productive: Streamlining processes and eliminating the 7 wastes makes each worker more productive (see slide 7)

The Benefits of LEAN

4. LEAN promotes higher morale: Using LEAN tools provides employees with the autonomy and an organized process of submitting ideas for improvement. It engages each team member to actively pursue improvements.

5. LEAN supports innovation: When implemented properly, LEANfosters an environment of innovation. It encourages team members to be vigilant to identify opportunities for cost savings and revenue increases.

6. LEAN measures results effectively: The bottom line is always the most important results to measure, however it doesn’t show and measure everything that is important. With LEAN metrics and Key Performance Indicators, there are no longer “gut feels” on the condition of your company and its standing at all levels.

The Benefits of LEANCompanies that implement a successful LEAN strategy can

see on average the following results:

65% higher cost savings through LEAN Projects/ Events26% Increase in Delivery Outputs

33% Increase on Stock Turns25% Increase in Productivity

26% Reduction in Scrap/ Rework Costs33% Reduction in Space/ Rent Costs

(or available room to do other business)

These are not extraordinary results, or special cases, this is what occurs on average.

*http://leanmanufacturingtools.org/63/benefits-of-lean-manufacturing/

The Benefits of LEAN

Results Reported by Fortune 500 Companies

*Fortune 500 Companies Saved Over $500 Billion in 2009 Because of LEAN Initiatives.

Motorola: Saved $20B from Six Sigma Projects

Boeing: LEAN saved $1.5M in labor hrs. 

McKesson: LEAN & Six Sigma had a 190% ROI in the 1st Year

*http://www.shmula.com/cost-savings-for-a-fortune-500-company/1745

Harnessing the Power of LEAN

“Now that you know more about what LEAN is and its benefits,

it’s time for you to take the steps to harness its POWER!!”

How is LEAN Is Different?ISO -An international standard that provides guidance for companies to ensure that their products & services consistently meet customer’s requirements, and that quality is consistently improved.

PROS• Internationally accepted

standard of quality/ good for compliance to federal & international regulations.

• Enforces documentation of processes thru auditing

• Provides a road map to ensuring process quality

CONS• Expensive to become certified or

truly compliant

• Full implementation, auditing and certification can take 6-24 months to complete.

• Improvements were only recently added to ISO, used to have to be combined with TQM. Proper metrics & KPIs still not properly road mapped.

• Documentation & conformity may be there, but it doesn’t equal results.

How is LEAN Is Different?TQM - A comprehensive approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous customer feedback.

PROS• Heavy on quality management

based on customer feedback

• Includes a metrics and measurement approach

• Incorporates a Kaizen philosophy

CONS• Constant, deliberate testing &

measuring, metrics are not automated.

• Heavily team focused, no autonomy to the individual ideas and solutions.

• Overly complicated and time intensive to confirm results.

How is LEAN Is Different?Six Sigma - A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects. The approach is designed to eliminated variability in processes that cause waste and defects.

PROS• Project ROI guaranteed thru

methodical and tested statistical analysis and data collection

• Aims to meet a six sigma standard of defect free product – near perfection

• Utilizes project resources effectively

CONS• Most companies implement six

sigma strategies incorrectly

• Time intensive

LEAN Is DifferentAdvantages• LEAN is designed to provide both short and long term RESULTS. A3

improvements allow for quick improvement implementations with review, but not bureaucracy. LEAN events allow for more in-depth and complicated process improvements.

• LEAN provides pathways for both teams and the individual to make improvements and achieve results.

• Training and tools provide clear results-oriented thinking and solutions.• Quality, performance and voice of the customer are automatically

captured and measured through effectively developed processes.• Continuous improvement is built into KPIs and deviations are immediately

caught with corrective and preventative action processes.• ROI and full implementations can be reaped within 6 months or less

(depending on size of company).

What is LEAN Implementation & Six Sigma Action Systems ?

LEAN Implementation & Six Sigma Action Systems is a one of a kind system designed to streamline and develop processes by integrating LEAN and Six Sigma methodologies into your

organization to provide major cost savings.  Ms. Machos' unique approach provides these techniques across all

industries and businesses, not just manufacturing environments.  With over 15 years’ experience in ISO audits,

successful LEAN implementation strategies and leading/ overseeing over 100 successful Six Sigma projects, she has

perfected the technique to train and provide the corporate culture change needed to successfully transform your business

and take it to the next level.

Why do I need L.I.S².A. Systems?

1) L.I.S².A. Systems provides fresh eyes to old problems and new solutions, and is not part of office politics that could be hindering progress.

2) L.I.S².A. Systems Training provides a consistent Body of Knowledge to your workforce, utilizing all tools available to make improvements happen.

3) L.I.S².A. Systems’ expertise & vast experience brings a myriad of ideas, solutions and flexibility to new approaches to streamlining your company.

4) L.I.S².A. Systems develops processes that drive results through proper structure, training, communication, corresponding KPIs & Metrics and Poka-Yoko techniques.

5) L.I.S².A. Systems develops true and measurable costs savings through sound processes and procedures with automated performance capture.

L.I.S².A. Systems: What It Offers

• Full service LEAN training, from intro to management, to LEAN events, Six Sigma Project training & coaching; all with certifications.

• 2 options for full company-wide implementations – 90 Day & 180 Day

• Individual and specialized department training, implementations and KPI developments in:

Supply Chain & Logistics Production & ShippingSales & Marketing Customer ServiceIT & Software Management Facilities ManagementHiring & Training Practices Accounting & Financial Processes

(For HR & Hiring Managers) (Confidential Records Do NOT need to be disclosed for this package)

5S Only Package

L.I.S².A. Systems:

I offer a money back guarantee. If cost savings are not met that equal my fees or more, I refund

100%. That’s how effective my system is and that I deliver results.

Contact me today by visiting https://www.lisamachos.com/lean

for your FREE preliminary consultation analysis.