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Nov
07
2008
Five Steps to a Leaner Company Maranda Gibson

If you sat down at a five-star steakhouse and ordered the best T-Bone available, and it came out with big thick layers of fat around the edges, what would your reaction be? Sure, it's still a good steak on the inside but now there's a bunch of extra work you need to do to get to the end result, which is an expensive and delicious melt-in-your-mouth T-Bone that you've been looking forward to for weeks.

Now imagine if they had trimmed the fat off before it got to you, it's still the same steak but there's a lot more time for you to enjoy it. It feels like less work and you're able to enjoy the end result (the steak) a lot sooner and with out all the work to get to the steak, you're going to enjoy it just a little more. Now, if only you could do this in the business world.

Lean Management

Oh, wait, you can.

In the 1990s, the Toyota Production System was developed by Japanese auto maker Toyota and is commonly known in the American business realm as lean manufacturing. The heart of TPS is based around Henry Ford, a pioneer in the automobile industry, who developed efficient assembly line structures that cut his total costs and ultimately raised his overall profit. In short… he cut the fat off his assembly line. Lean management focuses on the types of cuts that can be made across the entire spectrum, for example, a company that is truly lean also examines the number of steps it takes to complete a particular task. If the company is burning too much human energy they might modify the process the employee must take so that every step they make is the most efficient.

You're probably wondering how lean management can affect you and your business if you don't run an assembly line or a manufacturing facility. You can apply lean management in ways that don't require Sigma Six certified professionals to come in and completely revamp your business.

First of all, apply 5S to your office or building. 5S is a method of organization that helps not only to trim the fat from workspaces but to also maintain the organization that is created.

  1. Sort: Go through and keep only essential items on hand while storing or throwing away everything that isn't needed right away.
  2. Straighten: Arrange equipment in the most efficient order. For example if you have someone in your office who is mainly responsible for sending faxes, it would make the most sense to have the max machine set up right beside his or her desk.
  3. Shining: This basically means to be systematic in cleaning the area. Once it's cleaned, it should remain that way. At the end of each shift, the area should be cleaned away of clutter or when you're dealing with individual desks, each person needs to be responsible for cleaning up their own space. Maintaining organization should be a part of everyone's assigned set of tasks.
  4. Standardize: Everyone knows what their responsibilities are. There isn't a need to have two people doing a job that would only take one, and each person should know exactly what they need to do during their work day.
  5. Sustain: Once the first 4 S's are implemented, they need to become the new way to operate. Maintain the new way that things are done without allowing any of the old practices that have been dealt away with to creep back in.

You can cut the fat in other ways as well. Feel like you're spending too much on company travel? Don't travel anymore. Use a video conferencing or audio conferencing service to lower your travel costs and be more time efficient. Think of it like this: a video or audio conference isn't going to run late, get delayed, lose baggage, or get caught in traffic. It's available when you need it and however you need it, so it eliminates the need to make grand plans to get everyone together for a discussion. Conference calls are only the distance from you to a phone or computer, so imagine the energy, time, and money you're saving by just picking up the phone.

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