Misconceptions about lean
Lean is only applicable to the Manufacturing Industry
Lean is only interested in Process Efficiency
Lean means people lose their job
When I am out and about meeting people and talking about what Adapt365 can do for their business, I tend to get familiar responses when I mention the word “Lean” and ask if they know what it is about. Generally, it involves one or more of the points above.
So here is the thing - each of the statements above is wrong.
Yes, Lean can be heavily attributable to the Manufacturing Industry where the likes of Ford and Toyota have used its principles to great effect since the 20th century. However, Lean methodologies are applicable to any industry. The majority of businesses will fit under the following model:
Customer wants a product/service
A business provides the product/service
Customer pays for & receives product/service
This model is applicable to so many industries such as Financial Services, Retail, Hospitality, Administrative, Construction, Energy, IT, Professional Services, Transportation etc. and, yes, Manufacturing too. Lean helps to ensure that, when a customer requests a product or service, they receive their quality product/service to the right specifications, in a timely manner and for a cost that is perceived by the customer as good value. Lean helps to remove or reduce the non-value-add activities that can result in unwanted delays and rising costs for the customer. Lean helps a business to work smarter, not harder.
Lean is a way of optimising the people, resources, effort, and energy of your organisation toward creating value for the customer. Its not just about Process Efficiency, although this is an important aspect; it also focuses a lot on the people, such as customers, employees and suppliers. It ensures the business is set up for success through continuous improvement and effective performance management.
Lastly, Lean is not about cutting jobs - in fact, in my experience, it has been more about investing more time in the people in the business rather than showing them the door. It helps to highlight training and development needs, improves employee engagement in the workplace and provides skills and knowledge to everyone to help drive the business forward and, dare I say it, …GROW.
So, to correct the initial points made above and by so many:
Lean is applicable to any business
Lean focuses on Customers, Employee Engagement, Leadership, Business Structure AND Process Efficiencies
Lean is about reinvesting time in improving the business for all the people involved