Lean Management

What's that icon?

We have chosen the image of a chorten or buddhist shrine as our Lean icon to remind us that Lean must become a way of life for the whole business, not just a process improvement technique for part of it.

Sherpa believes in the philosophy of Lean. Lean management can radically reduce the operating costs and improve the profitability of any company.

Lean has five precepts which are applicable to all business types:

Value

Value is specified from the point of view of the customer. It is represented by those features of a product or service for which the customer is prepared to pay. If an activity is not something for which the customer is prepared to pay, it is not adding value.

Value Stream

The value stream is the sequence of processes by means of which the value is delivered to the customer. The value stream includes both value adding and non-value adding activities. Activities which do not add value are considered to be wasteful and should be removed from the value stream.

Flow

Value should always flow, it should never stand still. A value adding step should never be delayed by a non-value adding step - they should be done in parallel.

Pull

Use pull control to ensure that value only flows in response to customer demand.

Perfection

Perfection means producing or delivering exactly what the customer wants at a price they are happy to pay, when they want it and with a minimum of waste.

Lean benefits

The following benefits are typical, though many companies have reported far larger improvements:

• Inventory reduction:     60 - 70%
• Floor space reduction: 50%
• Productivity increase:   25 - 40%

Sherpa will help you to understand the principles behind lean, to explore your value-chain and to focus on the flow of product or service to your customer. We will guide you on your journey, and will teach you the techniques you need along the way.

Case studies and other lean resources may be found at the Lean Enterprise Institute website: click on the logo to visit it.