Lean Operations
We’ve all heard the saying, “you cannot manage what you do not measure”. Systems of variance, ROI, labor utilization, budget preservation, and overhead absorption must give way to lean performance measurements that are real time and accompanied by effective and efficient corrective and preventative action mechanisms. Measurements should target the critically important, value-generating processes, and may include velocity, quality, waste, and machine utilization.
Once the lean initiatives are designed and implemented, it is quite normal to begin to identify one problem after another. Problems will be identified regarding set-up times, downtime, product quality, quarantine, complaints, rework / scrap, capacity, flow, balance, unexpected variations, etc. The application of Six Sigma methods is extremely valuable in these situations. The Six Sigma discipline of Define, Measure, Analyze, Improve, Control is an exhaustive set of problem solving tools that we integrated with lean initiatives to deliver continuous improvement in value to customers and shareholders.
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Contact Mercury Management to help uncover this value with the application of operational diagnostics and training tailored to meet your needs, whether your organization provides manufactured products, administrative services or both.
Learn more about the following, click on the terms:
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In its most basic of concepts, Lean is the relentless removal of wasteful activities, and a relentless focus on determining what is of value. To determine what is of value is simple; the customer requirements define value. Making the operations flow in a way that maximizes value through the actions of the employees is quite another thing.
The term "Lean Operations" is the proliferation of activities, such as the processes that accept customer orders, produce and deliver parts, collect cash, etc. that focus on maximizing value to the customers and to the shareholders. The focus may be product concept, design, launch, production, shipment or service. The entire path consists of interconnected processes, each becoming the subject for the exhaustive reduction of waste and non-value producing outputs.
The potential for waste can be found in virtually every process and an opportunity for improvement is almost always available……. you just have to know where to look, and recognize it when you find it! Some of the major categories of waste are listed below:
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Overproduction |
Product proliferation |
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Excessive inventory levels |
Package proliferation |
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Redundant procurement |
Waiting |
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Under-utilization of talent |
Quarantine |
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Inefficient transportation |
Re-work |
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Administrative silos |
Excessive unit costs for energy |
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Staging |
Failure to incorporate knowledge and experience |
Each of these areas presents an opportunity for intensive review, process change and perpetual savings.
M² Offerings:
Interviewing Employees
Lean Operations
Diagnostics
Continuous Improvement
Activity-based costing
Process Mapping
Waste Minimization & P2
> See Services section for more
