B4 feature
Lean in the SME World Ever since Lean bounced onto the world business stage it has been supporting efficiency and waste removal for large blue chip organisations globally. The systems and methodologies of this unique and powerful system cross the broad range of industrial sectors with ease. Business terminology and Lean phraseology such as “value added” and “Just in time” have certainly disseminated to the business entrepreneurs of the smaller to medium sized business sector, but has the nuts and bolts of such a modern day phenomenon made any impact or inroads to the SME sector to give the same benefits that larger industry is reaping? WRITTEN BY: MARK ROBERTS PHOTOGRAPHY BY: VINE HOUSE STUDIOS, SWERFORD
In answer to the question, almost certainly is probably not for the vast majority of SMEs. Very few owner of SMEs will understand the ins and outs although they bandy expressions around like “Value add”, expressions that unknowingly to them come directly from Lean tool box itself. The real issue however isn’t focussing on what adds value to a business it is what is not adding value to the business that needs to be the catalyst for change. Every business has one or more value streams set within its structure, it is the value stream(s) that is the profit making mechanism that sits within an organisation. Without a value stream, maybe simple, perhaps very complex in its make up there would be no profit. But how many organisations actually take a deep look and analyse their own value streams to identify what actually adds value and separate this precious commodity to what doesn’t add value to the business? So if a business small or large, the size of the organisation is irrelevant ignores the non-value added work content in its value streams what is likely to be the outcome? Can growth or even long
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term stability be secured or is the organisation setting itself up to accept and absorb the waste of this unrequired activity for all time? Since SMEs have a greatly reduced ability to absorb non value added activity in comparison to the larger blue chip companies should they not only start to understand the system but positively embrace Lean thinking. So what should SMEs realistically do to close the Lean knowledge gap that exists between them and the monolithic corporations? First a good start would be to map out in a structured fashion the value stream in their organisation. Analyse what is actually happening as opposed to what maybe envisaged or thought is happening. There is no need to put any focus on value added work in this stream. Value added work is what it is, we don’t want to change it, increase it of course but the focal point is needed elsewhere. It is the non-value added activities that requires the real analysis and understanding, putting non value added work activity under scrutiny and putting it under the microscope, prioritising its negative impact and taking steps to eliminate it in a structured fashion will naturally reduce wasted activity and effort. This alone will inherently increase your own value added work and
of course go towards increasing your profit margin. We are particularly in the SME world are busy people, diverse, skilled, true masters of all trades, often perfect fire fighters as we navigate our organisations through our working week. The reality is the absorption of wasted work and effort is hardly ideal and often in the long term unsustainable. So taking time to understand the real difference about what we don’t need to do can be the difference between the business working and the business struggling, even failing as a business in the worst case scenario. An excellent barometer of how a forward thinking a business organisation is how it gauges and understands what work activity it needn’t do rather than the activity that it should do.
CONTACT DETAILS mark.roberts@leanprogression.co.uk 07763 888 162 www.leanprogression.co.uk
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