Let’s investing on new equipment or hiring

Let’s say your business is doinggreat. But you’re thinking of expanding it. That’s great but it’s also ariskiest time for your business. In fact, many businesses don’t survive thetransition. Should you through money at the problem by investing on newequipment or hiring more people? Should you make your staff make work moreovertime? your answers to these type of questions can make or break yourbusiness. And that’s where LEAN comes in.

LEAN is a philosophy about deliveringvalue from your customer’s perspective, eliminate waste and continuouslyimprove your process. LEAN can radically change the wayyou do business. Lean management is based on four principles. The first principle is pull.

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Rather than producing as much as possible, customer’s demands pulls the goodsand services through the manufacturing process. This minimizes over production,inventory and ultimately working capital.The second is ‘One-piece flow’,focusing on one single piece at a time minimizes work in progress, process anderuptions, lead and waiting time. It increases quality and flexibility.The third is ‘Tact’.

It’s aheartbeat of LEAN system. It’s how fast you need to manufacture a product andmeet customer’s demand. Tact allows us to balance work content, achieve acontinuous flow and respond flexibly to the changes in the market place.

Fourth is a ‘Zero Defects’.Mistakes happen but a LEAN company doesn’t pass on defects. Mistakes fromprevious steps must be fixed before going on combined with the robustcontinuous improvement process.Continual improvement1)     Written operation manual·      Procedure: processes of the work·      Quality and services control check lists·      Policies·      Job descriptions·      Routine checklistWhy?The processes that run in abusiness shouldn’t be floating around the business owner. These processesshould be readily available/ accessible to all the employees of the companythat need the information. This minimize the interruption in the work flow thatcomes up in daily basis.

Otherwise, owner becomes the central computer thateveryone logs into to retrieve the information needed to do theirjob.(Documents needed to be on continual improvement)System of cleanliness simplystates that system is a place for everything and everything in its place. Theplace should be labeled and conveniently located for easy access. 5S’sSort, set in order, shine,standardize and sustain.

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