Lean concepts are “not” meant just for shop-floor or production

Ani Khandekar

Contrary to a lot of beliefs, Lean Six-Sigma concepts and tools are very powerful even in “services” domain of your print or packaging business model and can bring about massive change in quick time versus applying them in just production or manufacturing areas.

Using fundamentals of Lean which revolve around reducing 8 types of wastes in “any” process and Six-Sigma which is all about reducing variation, again in “any” process, one can make use of these concepts in domains of HR, Finance, Sales, Marketing, System Integration, NPD. Clearly because each function in a business, regardless of which domain it is in, has multiple processes for day-to-day functioning of business. If you look at it from this perspective, then it will dawn upon you that one can use Lean and Six-Sigma concepts in non-production functions too.

Believe it or not >50% of my work extends across areas within our sector that compliment the production floor, e.g. reducing variation in data/information; optimizing data for quick decision making; using lean concepts in HR, Finance and Accounting; lean concepts for entire “ordering process”; creating 0 inventory models at your customer’s end; targeting LEAN waste categories of “waiting”, “non-utilized talent”, “extra-processing” specific to manpower management.

Examples of projects implemented : Reducing attrition rates, integrating multiple systems to form daily data dashboards for quick decision making, creating internal cross-skill/up-skill programs to reduce dependency on external hiring, implementing ERP systems in record time, helping convert conventional ordering methods to seamless online systems, implementing CRM, reducing DSO by 50% thereby improving cash flow.

If you ponder on each example carefully, none of them are related to production / shop floor. However, common thread in each example is geared around “how to optimize your process/effort for maximum gains” which could be cost reduction, improving speed of service, quality of information, helping cash flow, keeping workforce skill sets ready thereby reducing time required with new demand surges). Each solution is based around reducing 8 Lean wastes and reducing variation in each process step!

Use Lean and Six-Sigma as a mindset with only one objective – “I want to reduce waste and variation in each and every action of my business from Order-to-Cash including supply chain.” If you see it this way, your imagination will pan across many areas of improvement which are not just restricted to reducing scrap or reducing downtime of machine.

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