r e s o u r c e s

l e a n

 

Lean is an approach based on the elimination and prevention of waste throughout every part of an organisation and its supply chain with the aim of improving competitiveness and ultimately customer service. Any organisation with a genuine and visible commitment from senior management can benefit from the application of lean principles.

Lean focuses on waste in all its manifestations with any activity that does not add value for the customer being waste and a potential candidate for reduction or elimination. The true cost of waste in a typical organisation will range from 10 to 40% of its turnover with any savings going directly to the bottom line. Toyota originally developed the "7 wastes" or Muda to encapsulate the waste that exists in manufacturing organisations. Today it is recognised that similar categories exist in service industries.

There is a large array of tools and philosophies available to the organisation pursuing lean; some are well known some are less so. Again most were originally developed for application in manufacturing industries however their considerable potential in other sectors of commerce is still largely untapped.

 

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