Need For Lean

Do You Have A Need for Lean?

You may be asking yourself if the timing is right for your organization to pursue implementing lean initiatives. If so, take a few minutes and ask yourself the following questions. If you answer yes to any of these questions, implementing Lean Operations Principles may be right for you now!

Poor cash flow/cash reserves too low:

• Do you need cash for acquisitions, an addition, or new equipment?
• Do you need cash for new product development?
• Do you need cash to reduce/eliminate finance charges?

Inadequate floor space:

• Do you need additional room for new products or equipment?
• Do you need to consolidate operations?
• Do you need to build a new building?

Delivery lead times too long:

• Do you experience a lot of order expediting?
• Do your competitors have shorter lead times than you have?
• Do you have excessive production disruptions due to customer changes?
• Do you lose business because your customers have “unreasonably” quick delivery requirements you cannot meet?

Inventory too high:

• Do you need more floor space?
• Do you need additional cash?
• Are your inventory turns going down instead of up?
• Are your purchased inventories increasing?
• Do you have to conduct a physical inventory due to unexplained inventory variances?
• Do you carry a high reserve for obsolescence?

Improve customer interfaces & increase delivery performance:

• Do you experience late shipments, or incomplete orders?
• Do you experience significant demand variation from your customers?
• Do your customers demand you maintain an inventory of their products?
• Do your customers expect you to take back unused inventory?

Reduced operational costs:

• Do you work more overtime than you plan?
• Do you have excessive rejects or repairs in your manufacturing processes?
• Do you have indirect such as labor dispatching, part expediters, or shop controllers?
• Do you tear down jobs in the middle of the run to handle a rush job?

Simplified business system implementations:

• Do you want to simplify, and reduce the cost of implementing a new ERP system?
• Would you like to raise cash to offset the costs of implementing the ERP system?