L’operational excellence is the objective that is systematically sought to achieve in order to optimize the company’s productivity. But as long as there are still hidden costs, sources of waste, too much or too little inventory, this goal will remain out of reach. Lean management can provide you with the tools to eliminate unnecessary costs and waste by involving all employees, from the management team to the field operators. The application of lean principles, the deployment of solutions and the integration of a continuous improvement process into the system bring the company step by step closer to operational excellence within the framework of lean management.
Definition of Lean management
Lean management is a method of steering organization and production. It is derived from the Toyota Production System, or TPS, also known as the Toyotism This is the first time that a “new” car has been developed in the Toyota factories in the 1950s. Originally intended for the automotive industry, it was rebranded in the 1990s in the USA and adapted for use in various sectors.
“Lean” means “lean”. Lean management is a management method based on the reduction of costs and lead times, with the objective of achieving operational excellence. Nevertheless, it would be wrong to reduce lean management to a simple hunt for costs and losses. Unlike certain purely pyramidal methods implemented by managers, lean management is close to the ground and involves all the company’s employees.
The path to operational excellence lies with the employees and their workstations, as they are the ones who have the knowledge and inventiveness to eliminate waste, streamline production, help solve problems and ultimately improve the profitability of the company.
Lean management tools
The objective of lean management is therefore to eliminate all operations in the system that do not add value. To do this, the method relies on a number of tools.
The 5S
The 5 S’s correspond to the Japanese terms “Seiri” (to sort), “Seiton” (to tidy), “Seiso” (to clean), “Seiketsu” (to standardize) and “Shitsuke” (to respect). (tidy), “Seiso” (clean), “Seiketsu” (standardize) and “Shitsuke” (respect). This method is the first to be implemented within the teams. It’s about gaining efficiency by changing habits. By applying these 5 principles automatically, the resolution of small problems that hinder efficiency is accelerated.
Six Sigma
The Six Sigma method aims to improve the quality and efficiency of processes. It naturally applies to industrial processes, but also to all administrative, logistical or commercial processes.
Visual management
Results and productivity must be visible to everyone in real time. This exercise makes it easier to detect deviations from objectives, while identifying and resolving problems more quickly. Any deviation must be analysed, explained and an appropriate corrective action taken.
Kaizen
A method of continuous improvement, kaizen, or the strategy of small steps, consists of solving identified problems with simple solutions, validated in the field and implemented quickly.
Kanban
Intended for inventory optimization (but usable in many fields), the kanban (“cards” in Japanese) allows to materialize containers and flows in the form of cards or labels. By improving the clarity of flows and production, it is possible to build up only really useful stocks and to eliminate those that are a source of loss.
Value Stream Mapping (VSM)
This involves the analysis of processes, physical flows and their management to identify the obstacles to productivity and eliminate them.
Single Minute Exchange of Die (SMED)
This method aims to reduce production changeover times and the size of the batches manufactured. The objective is twofold: to produce as quickly as possible according to customer needs and to reduce stocks, which represent a significant cost.
A tool to reach
operational excellence at work?
A continuous improvement approach
Lean management definitely aims at operational excellence with a continuous improvement approach. Every employee, from the top of the company to the first level of the company to the managers, must be involved. The objective of lean management is not to reduce unnecessary costs and waste, but to eliminate them.
Everyone at his or her job, at his or her level, must apply lean management and seek to eliminate everything that does not add real value to his or her work. This may be due to unsuitable equipment, poorly organised premises or premises that are too far away, resulting in additional transport time, waiting times that slow down production, overproduction that generates unnecessary stocks, etc.
When a problem is identified, there is no question of investing heavily in solving it, and thus wasting time and money. We will look for the simplest and fastest solution to implement. Hence the importance of involving every employee. Employees who are on the ground, who know their core business, whether it is industrial production, administrative procedures or information flow, will always be in the best position to seek a solution.
As soon as a solution to a problem is deployed, its impacts are measured in search of improvement. In industry or in the service sector, this is the way to progress on the road to operational excellence.