A webinar conducted for NSW Business Chamber showing how Lean principles can, and should be adopted across all areas of business and in any industry sector.

1. Brought
to
you
by
Lean Business, Fat Profits
Harnessing Lean principles across all areas of
business reduces waste, increases productivity and
produces really FAT profits

2. Meet your presenters
• Wayne Moloney, Founding Partner
- Wayne is a business strategist with a passion for sales
and business development, helping businesses grow
through developing and implementing sound strategic
initiatives.
• Mike Karle, Partner
- Mike’s specialty is helping businesses get the most out
of their processes. Through strategic manufacturing
processes, Lean and ERP implementation, Mike has
helped businesses improve efficiencies and most
importantly, profits.

3. What is Lean?
A strategic initiative to:
• Increase and improve CUSTOMER VALUE
• Reduce or eliminate those activities
(costs) that add NO CUSTOMER VALUE
ie WASTE

4. Lean impacts ALL departments

5. The Purpose of Lean….
The purpose of Lean is to increase
capacity by designing the operational
processes so that they optimally respond
to customer demand, and then to utilise
the additional capacity to add greater
customer value and/or increase
output.
Cost reduction is a natural consequence
of Lean, but not its purpose.

6. Important Lean Characteristics
● Focus on the Customer - what does he really want?
● Simplicity - use simple systems & procedures
● Visibility - make systems and measurements visible to all
● Flow & Regularity - keep operations moving. “If it stands
still, it cannot add value and must therefore be waste!”
● Participation & Knowledge - all employees are involved
● IT - Use IT to streamline operations
● Continual Improvement - Lean is not a “one-off” project

7. Lean – where to start?

8. What is Customer Value?
You cannot improve the process (remove waste) if you
do not know what the customer values from the
process.

9. Values Desired by the Customer
• Price
• Quality
• Communication (type, speed, documentation etc)
• Packaging & Labeling
• Flexibility (Design, Delivery, Payment terms)
• Technical Support & After Sales Service
• Environmental Policy or Credentials
• Customer Experience & Emotion – “Feel Good”
All the benefits vs sacrifices (not just money)

10. What is ‘Waste’ or ‘Non-Value’?
“Waste” is all Non-Value Added Effort …..
i.e. any activity that your Customer is not
prepared to pay for
…….but often has to!

11. Business Processes
• Value Added (what the customer will pay for)
• Non-Value Added (waste)
• Necessary Non-Value Added
How can we improve the customer’s experience
by reducing the time from order to delivery?

12. Analyse each Process….

13. Eliminate the Non-Value Added effort

14. Create greater Value for the Customer

15. Typical Wastes
• Transport
• Inventory
• Waiting
• Scrap, Mistakes, Errors, Misunderstanding or Lack of
Knowledge
• Inappropriate processes and systems – wrong tool for the
job
• Sorting & Searching
• Duplication

16. Typical Wastes
• Inappropriate Measurement (measures drive behavior)
• Under-load & Over-load (e.g. month-end, year-end)
• Inappropriate Priorities
• Inappropriate Frequencies & Presence (meetings, reports, etc)
• Interference (emails, people, Facebook, Twitter etc)
• Over-design and sub-optimisation (what does the customer
really want?)

17. Wage a War on Waste
• Are we using metrics that will allow us to improve the
process or add customer value?
• Why do these tasks result in scrap components or process
errors?
• How can we eliminate or reduce the processing errors?
• Can we eliminate duplicated information by improved IT
systems?
• Is this task actually adding customer value?
• Are we giving the customer what he really wants or only
what is available? “We know what the customer wants!”

18. Wage a War on Waste
• Is this report necessary, who uses it and for what purpose?
• Why are these good/documents/tools being stored here?
• Why is this task necessary and why is it being done by this
person/department?
• Can we rearrange the physical layout of the office, shop,
department, operating theater or factory to reduce
movement and facilitate flow?
• Can we simplify, eliminate or combine this task with
another?

19. Lean in Business
• Lean is NOT just about manufacturing
• Lean can and should be the way you think
about business - ALL aspects of your
business

20. Leading Lean
Lean Leaders…
• Know how the business serves the customer
• Build ability in their people
• Show a continuous improvement mindset
• Focus on process and results, and demonstrate
an understanding of the value stream
• Create a culture to sustain improvement

21. eBook: Lean Business, FAT Profits
Download your free copy from:
www.informgroup.com.au