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How can the application of Lean and
Agile methodology
affect the efficiency of your operation?
The application of Lean and
Agile tenets embrace simplification. Due to growth and efforts to improve
an operation, an enterprise often tends to become unnecessarily
complicated.
In order to streamline your
operation, you need to understand how your systems interface with each
other. To simplify an operation you must focus on the process by which you
run your business. Every operation is dependent upon the integration of
essentially six major elements of your operation, including:
Incremental
improvements made over time influence the effectiveness of an operation. An
improvement in any one of the six major elements affects your enterprise.
Many small improvements made over a period of time can actually reduce
operation efficiencies of the enterprise. It may happen so slowly that it
becomes nearly impossible to detect.
- We must be sure
of the effects a change will have upon integration within the facility
and upon the upstream and downstream operational processes.
- We must ask if
the existing software packages can support the change.
- We must
determine if the mechanical and electrical equipment support the
increased productivity.
- We must be sure
any solution supports management's objectives.
We must be
absolutely sure a solution is within the technical capabilities of the
people charged with producing the end result.
Making changes and
improving a process is relatively easy. Seeing "spot" improvements is
energizing. Changing the "culture" within and organization and then
sustaining that continuous improvement mentality is however, difficult.
Management must be thoroughly committed to a long term strategy.
What are the
rewards? Here are some typical five year results.
·
75% to 100% productivity gain*
measured as value added per associate through waste elimination and
smoother, rhythmic processes.
·
More than quadrupled the inventory turns*
work-in-process inventory is usually the first one affected, typically 50%
to 705% reduced, followed by raw material reduction, and ultimately leading
to reductions in finished goods inventory.
·
50% to 100% sales growth*
through improved quality and customer service. When customer learn
they will receive their orders on time and complete every time, the word
spreads to other customers and other markets. Additionally, as the quality
and the customer responsiveness improve, and are proactively leveraged,
market share improves.
·
30% to 50% space reduction*
Lean manufacturing cells require much less space for production as well as
much less space for inventory in various stages of conversion.
*exerts taken
from the book
"The Perfect Engine" by Anand Sharma and Patricia E. Moody.
The results have
been outstanding! |