Bumpy road to lean enterprise
By: KAJDAN, Vladimir
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ArticlePublisher: Oxfordshire, UK : Taylor & Francis, January-February 2008Total quality management & business excellence 19, 1-2, p. 89-97Abstract: Every company owner, CEO, and manager wants to make their business process as lean as possible by reducing the number and proportion of Non-Value Adding Activities (NVAA) among all business operations. This would reduce wasted time and money, provide them with highest Return on Investments (ROI) and eventually earn the highest profit - the major goal of any profitable business. However, most of the above-mentioned people would not be able to answer the questions: How much 'lean' would they want? What degree of leanness is actually achievable? What sequence of actions and in what intensity should be conducted? How to plan the lean activities with clear understanding of the goals, schedule, and effect of the results? Let us try to answer these questions. Starting from definition and measurements we go through the basic application of TQM and ISO principles that lead to standardization of work through creation of SOP. Application of Six Sigma philosophy creates an environment with customer driven cost and quality. Special time studies of every applicable micro-operation would illustrate the proportion of Non-Value Added Activities within every operation and determine clear opportunities for improvement
Every company owner, CEO, and manager wants to make their business process as lean as possible by reducing the number and proportion of Non-Value Adding Activities (NVAA) among all business operations. This would reduce wasted time and money, provide them with highest Return on Investments (ROI) and eventually earn the highest profit - the major goal of any profitable business. However, most of the above-mentioned people would not be able to answer the questions: How much 'lean' would they want? What degree of leanness is actually achievable? What sequence of actions and in what intensity should be conducted? How to plan the lean activities with clear understanding of the goals, schedule, and effect of the results? Let us try to answer these questions. Starting from definition and measurements we go through the basic application of TQM and ISO principles that lead to standardization of work through creation of SOP. Application of Six Sigma philosophy creates an environment with customer driven cost and quality. Special time studies of every applicable micro-operation would illustrate the proportion of Non-Value Added Activities within every operation and determine clear opportunities for improvement
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