Article by Grant Winter
In today’s business environment competitiveness is constantly increasing, whether it’s the rapidly changing legislative landscape or the greater number of competitors, many of which could be international in nature having much lower cost structures and inputs. Add to this, advances in technology plus the changes in our demographics leads to a very complex and at times unpredictable competitive business landscape.
To keep pace with all of these changes, business owners and leaders in addition to running their companies, must be constantly improving and changing in order to survive financially. You often hear business owners say “even though our business is growing, we are working harder for less return”.
A well proven strategy to deal with these challenges or problems is the adoption of Lean thinking. This business philosophy focuses on the creation of value for the consumer by the elimination of waste in all of its forms. Waste is not about what is in the rubbish tin, it entails extra motion to do tasks, unnecessary inventory, and additional process steps. There are 8 different types of waste, all of which are often unnecessary because they add no value to the consumer but they do incur costs thus reducing the bottom line.
Lean Thinking can be applied to any business whether it is: service or product; not for profit or for profit; private and government; manufacturing to health. There is no business which will not benefit from the adoption and application of Lean Thinking.
Successful implementation of Lean Thinking requires an understanding of value and waste and for leaders to drive the process by empowering all their employees to eliminate waste. The old adage “Work smarter not harder” is a great way to summarise what happens in an organisation using Lean Thinking.
If some of the issues or frustrations mentioned in this newsletter resonates with you, then Workplace Partners Business Advisers are able to help by providing you with the knowledge and skills required to meet today’s business challenges. Over the coming months, we will be developing and sharing via our newsletters some of the concepts and tools used in philosophy of Lean Thinking.
For further information or assistance call us on 1300 116 400 or email [email protected].
The information contained within this article is not legal advice and is for general advice only, to obtain specific advice for your business contact us on 1300 116 400 or email [email protected], this advisory service if free for all members.