Lean manufacturing is a production method that has been used
to great effect in eliminating waste and improving customer satisfaction in the
auto manufacturing industry. The concepts
employed in this method can also be applied to other areas of commerce,
including the service industry.
Lean
manufacturing defines waste as anything that does not add value to the
customer. Waste adds time and cost to manufacturing and service, and its
elimination is beneficial to these enterprises.
The lean method identifies several key areas of waste, which
can be applied in service organizations as well as manufacturing.
Some of the key areas include:
-
Overproduction. Doing
more than is needed or doing it before it is required. Some examples may
include bad data entry, errors and mistakes that result in more work, and
processing items before necessary.
-
Waste of inventory. This may include having excess
inventory, overstocking supplies, etc.
-
Waste of over-processing. Having too much paperwork or
bureaucracy involved in a process is a good example, as well as requiring too
many approvals for a process.
-
Waste of waiting. Requiring employees, customers or vendors to
wait excessively; this reduces operational efficiency. Long waits at doctor’s
offices, long lines at grocery stores and similar situations are good examples.
-
Waste of motion. Disorganization of offices or areas can result
in employees spending too much time and effort that can be better spent
elsewhere.
By identifying these and other areas of lean waste, service
industry managers can identify inefficiencies in their own operations and root
them out, allowing them to offer better service to their customers at a lower
cost.
For service industry managers interested in applying lean manufacturing
concepts to their businesses, there are plenty of training videos, books and
other materials available from a variety of sources to help.