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The Benefits of going LEAN
A LEAN process can yield highly favorable results in an organization. LEAN is a method which can be implemented in organizations that manufacture goods (i.e., products) or provide services (i.e., hospitals). To determine which processes to implement, a company must first define, measure, and analyze what the inefficiencies and problematic areas are. From that point, improvements and maintenance controls can be put in place. Once a LEAN process is implemented, organizations can then see the benefits as a result of their efforts. Below are a few simply but powerful effects of a LEAN process.
1. Less resources = cost reductions
When a process is streamlined one of the first results to be seen is a reduction in resources. Here’s how: after LEAN processes were implemented a manufacturer only has to use 50 computer terminals instead of 100. What this means for the manufacturer is a reduction in maintenance costs. By eliminating these computer systems they are no longer a fiscal responsibility. As a result, these cost reductions can be added back to the bottom line of a company's revenue. With a LEAN process, organizations can do more with fewer resources.
2. Improved processes = increased efficiency
Essentially, a LEAN process maximizes the efforts of an entire organization. In the beginning stages of analyzing where the problems are, it requires that all team members who are involved to contribute their input. Without their input, a company cannot know what’s really happening. Once a LEAN process is in place, the results of everyone’s efforts can be seen in an increase in customer satisfaction, production increase of manufactured goods, and a higher quality of services provided. As an example, let's say a hospital implements a LEAN process into their organization. One of the results is that a doctor is now able to see 8 patients a day instead of 4. Usually, an increase in services means happier customers.
3. Creates and develops effective employees
When people are involved in improving processes within a company there are some overlooked benefits. As an active participant in developing a new process, it creates accountability and increases employee engagement. Oftentimes, when team members are held accountable for their projects, they are driven to produce effective results. When people are able to be autonomous and take leadership it also fosters a sense of job satisfaction. Accountability creates an awareness of how their efforts make a difference within the organization.
While seemingly simple, LEAN process benefits go wide and deep into an organization. Increased efficiencies, cost reductions, increases in revenue and the development of an effective organization can all contribute to creating an organization that many dream of working for.
If you're interested in learning more about implementing a LEAN system in your company, please send us a message today at firstname.lastname@example.org