Partners in Business Excellence, LLC

Lean methods

Getting Lean in Business is Like Going on a Diet

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lean in business

Getting lean in business is a lot like going on a diet. As with most “trends” we see huge success, as well as those who come out to claim failure. The trend on the top of my mind when I think about this is the keto diet – the diet where people eat low to no carbs and high amounts of fat that changes the dieter’s metabolic state to that of ketosis. 

People jump on the diet and lose tens of pounds, but those who give up, usually state that it’s just too hard to maintain. Oddly enough, this is the same reason given for the failure of lean in business – lean principles are just too hard. 

Getting Lean in Business is Like Going on a Diet 

People who go on diets have a strong desire to lose weight. In the beginning, they are excited, motivated and determined to see the outcomes they desire. Many get going in their diet and then it hits – they want a beer after work… to order pizza on a Friday night… to grab a quick something on the road because they left that diet meal sitting on the counter by mistake… And then, all of a sudden, the diet seems hard. They get tested and have a choice: eat what they are wanting (not what they need), or keep their eyes on the prize. 

Digging Deep for the Root Cause 

Lean in business starts with management excited for the desired outcomes: more floor space and organization, better inventory management, fewer defects, higher quality, more profit. We do a walk-through and start learning about the processes and mission-critical steps and start asking questions. Things are moving along and then… they get tested. Why is the forklift sitting broken? Who is responsible for it? How long has it been out of service… wait, how long??? Why are you paying for custom envelopes? Why is there double entry?  

All the questions reveal root causes and expose old habits and behaviors. We do this to dig in deep to get to the source of the problem and uproot it entirely so it doesn’t return. But for some, this feels hard. It feels “redundant”. The irony is that redundancy is what we are working to remove. The time we are spending is actually correcting years of mismanagement of the process we are adjusting and improving. 

Success or Failure: It’s a Choice 

So, just like a diet, we can give up and try something else, or accept that we will always have that extra chunkiness, or, we can keep our eyes on the prize and make a commitment to seeing the end goal achieved. And, because lean digs in deep, the goal stays. “Lose the weight and keep it off” in lean becomes “Meet the goal and keep improving”. 

To prevent a lean failure, do the work. Buy in, work at it, rely on your coach when things get hard, and keep an open mind to create a curious company looking towards the prize of continuous learning, constant improvement, and a truly lean culture. 

 

PBEX, LLC provides a complete review and analysis of the business processes that create efficiency and profitability, and the barriers to them. Contact us today to learn more about lean business management and to schedule your review with a process improvement expert. 

What is Value Stream Mapping?

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Businesses who have an end product, such as in manufacturing, use Value Stream mapping to help streamline activities, find holes or bottlenecks in their processes, or gain more clarity about how information and materials move through their organization. Value Stream Mapping is one tool of Lean Manufacturing.

Both Value Stream Mapping (VSM) and Value Stream Improvement (VSI) are sometimes used interchangeably, but the subtle difference is that VSM focuses on manufacturing and VSI is used more for the entire organization, including in non-manufacturing areas such as front office processes. It can be used in a variety of industries and I have used it successfully with a library, a software company, a county workforce agency, a construction company and others.

More and more businesses are looking at this Value Stream Improvement model, regardless of industry, to accomplish their goals.

“…Lean is much more than manufacturing. Peter Holtgreive led our software company into Lean with impressive results through value stream mapping and several kaizen events for our services and finance teams.” -Scott Ford

What is Value Stream mapping?

Value Stream mapping is a visual tool that defines information and material flows within a business. It clarifies responsibilities, practices and workflow with the overall goal of increased efficiency. Efficiency can come in several forms, such as reduced costs of production, increased productivity and less waste, just to name a few.

Value Stream Mapping Example

(c) wikipedia

Value Stream Mapping can be used for processes of all types including employee onboarding, role and/or workflow clarity, accounts payable or receivable, warehouse functions, purchasing/working with vendors and more. It can be used to maximize consistency in every department of an organization and can be accomplished online, offline or a blend of both.

As a tool for efficiency and effectiveness, it can be used to create an ideal scenario versus actual scenario, to help make changes in management, processes and even culture. VSM looks at how well all of the processes work together, focused on material/service flow and information flow. There are typically many metrics included in each process step and in a lot of cases it goes through many departments, usually starting at initial client contract through to invoicing.

Value Stream mapping takes a specific objective and helps to measure and compare that objective alongside the entire organization’s objectives to make sure that all processes are aligned with the company’s values and capabilities.

How do I begin Value Stream mapping?

Value Stream Mapping usually begins with a designated team of people from inside the organization tasked with leading the project. It is also recommended that “outside eyes”, a consultant or Value Stream facilitator, be present to help guide the conversation and point out holes that may be overlooked by people who are seeing things day to day.

Here’s a specific example of this: I went into a company to facilitate a Value Stream Mapping session on how they receive sales orders for their custom made products.  Once we mapped the current state it became obvious how poorly the entire process was working causing frustration throughout the company.  As outside eyes, I was able to point out and address both a waste and a broken process they wouldn’t have addressed without me.

In Value Stream mapping we:

  1. Plan the event by defining the scope and collecting data.
  2. Extract the knowledge of those who do the work, create a snapshot and visibly show how the process works or doesn’t work – the Current State.
  3. Identify opportunities for improvement throughout the value stream where the processes can work better together.
  4. Design the Future State map ensuring that the opportunities improvements are taken into account while maintaining alignment with the mission and vision of the company. Create a project plan on how to get from the Current State to the Future State.

After the Value Stream Mapping is complete, we track, measure and manage follow through to make sure the new process is working as intended. We adjust or correct as needed.

Value Stream mapping is an effective tool for bringing clarity and efficiency to processes in business. As your outside eyes, I help you by facilitating Value Stream mapping and other efficiency boosting, non-software based solutions that can be implemented quickly and easily to reach the goals you are desiring. I often use VSM to find out what the rest of my engagement with a client might be, as it really helps us develop a plan on how to get where they want to and what needs to be done to get there.

Contact me today to learn more about how Value Stream mapping can simplify and improve your  business process making them easier to understand, perform and manage. Together, we will create a continuous improvement culture and healthier bottom line.