THE COACHING AUTHORITY

October  - 2015
Understanding lean manufacturing isn't rocket science. In fact, the basic concepts are relatively simple.

Simply put, lean manufacturing is the achievement of the greatest efficiency and profitability for a company by eliminating the wasteful methods and activities that are commonly present in corporate regimes.

Understanding Lean Manufacturing concepts can be the first step to identifying and eliminating waste.  
 
Successfully,
Patrick S. "Coach" Frazier

Patrick S. Frazier, CBC
The Coaching Authority
(574) 286-1123













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Strategy Decisions

Strategy challenges are indicated by a slowing in top line revenue growth. If revenue is not growing as quickly as you like, then it's time to re-examine your strategy i.e. what you're selling to whom. It's important to have a concise articulation of that strategy so you can get everyone aligned and on the same page without wasting sales or operational energies on activities not useful to the business.

Jim Collins, author of Good to Great, calls this precisely articulated strategy a company's "hedgehog." Alan Rudy, founder of growth company incubator Into Great, calls it the "ping" of the business. Others call it a unique selling proposition (USP), differential advantage, or brand promise. Whatever you choose to call it, you know you've nailed it if revenues are growing as rapidly as you want.

Turbulent economic times tend to expose weak strategies which are why we're seeing many companies re-examining their business models.

Got Strategy Challenges? 

Identifying the Wastes Named by Lean Manufacturing
At first glance, some firms are intimidated with the thought of adopting lean manufacturing because of its fancy sounding name. But, if truth be told, it's actually easier than it seems. All you need to have is the dedication and the discipline to see things through and make change happen.
 
These are the primary reasons why most firms often fail. For instance, with defects, instead of focusing on achieving the best quality output in the shortest period of time, some firms waste effort and energy into fixing equipment and method defects and problems. If the kinks had been addressed in the first place and the problem nipped at the bud, such an unnecessary activity would be eliminated.

If a company wants to fully understand what lean manufacturing is, it should first familiarize itself with some of the prominent technical terms linked to it.

Don't let these words scare you off.

Kanban System

This is a pull method that makes use of color-coded cards attached to parts to be able to ensure the smooth flow of the production process. A 'pull method' simply means the customer's interest is foremost, instead of you as the manufacturer dictating what the consumer should have.

Cellular manufacturing

This involves the linking manual and machine operation to achieve the most efficient and cost-effective combination that would extract maximum value from a certain activity and method while reducing wastes at the same time. Cellular manufacturing is usually U-shaped and flows in a single pattern.

Value

This is what the customers are willing to pay for product or service. It is the responsibility of the lean manufacturing strategy to deliver what the customer wants exactly.

Take time

This is identified by the customers' rate of demand. The take time is what sets the production pace and matches it with how badly consumers need the product delivered to them. It is often referred to as the heartbeat of lean manufacturing systems.

Pull system

This involves the replacement only of goods that have been used up or depleted.

In today's business environment, businesses must run as efficient as possible because customers have more companies to choose from - will your company be their choice?
 7 Factors for Increasing Company Value
  • Profitability Growth (track record)
  • Growth Industry
  • Low (relative) Market Share
  • Low Customer Concentration
  • Recurring Revenue
  • Company Size
  • Management Team

Do you want to know more about increasing your company's value? Then you need to contact Coach Frazier today! 

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