What is Lean?
Let me begin by explaining what lean means. Lean is a collaborative approach aimed at systematically eliminating waste while maximizing value. It encourages employees to shift from focusing solely on their daily tasks to embracing a dual focus: excelling in their work and striving for continuous improvement. This requires them to critically analyze their work, identify shortcomings, and develop better methods.
Why choose Lean?
Lean offers a competitive advantage over rivals who don’t adopt it. One of its primary benefits is cost reduction, which is essential for staying competitive; each dollar saved contributes directly to profits. When profit margins are narrow, as in a 3% margin, saving $150,000 effectively adds the same value as generating an extra $5 million in revenue, assuming that revenue is produced without defects from the start. So, should lean principles be a key part of your organization’s strategic discussions? Generally, lean improvements should focus on being cost-positive—utilizing no-cost or low-cost solutions that harness employee creativity and insights instead of monetary expenditures.