Lean Can Transform Your Business and Boost Profits - Axe the Waste.

An accountant’s favourite quote is often: "Increase sales revenue and decrease costs" - but how?

While financial experts often make this ‘easy’ instruction and statement—It’s a bit like telling a football team to score more goals and save the opposition’s scores. Without a strategy and coaching on how to do so, it’s a meaningless statement.?

Lean is a methodology and a mindset that can help maximise profit and create a more pleasant workplace. I encountered it several years ago and have been an enthusiastic advocate ever since. Anyone who knows me will be tired of hearing me discuss the fundamental business issues that the LEAN methodology can resolve, as it has in both our and our clients’ businesses. While Lean may not solve all business challenges, it effectively addresses several key operational fundamentals and has been transformative in many businesses of all sizes.

What is LEAN, a brief introduction??

Lean is a systematic approach to maximising value while minimising waste in any process, originating from the Toyota Production System in the mid-20th century. At its core, Lean is about delivering more value to the customer with fewer resources by eliminating activities that do not contribute to the final product or service. In Lean terms, waste refers to anything that consumes time, money, or effort without adding value from the customer’s perspective. Traditionally, Lean identifies eight types of waste—overproduction, waiting, transport, over-processing, inventory, motion, defects, and unused talent—though some frameworks including the one I have used below expand this further. Lean is not just a manufacturing concept but is widely applied in service industries, offices, healthcare, software development, and even government operations. It fosters a culture of continuous improvement (Kaizen), empowering employees at all levels to identify inefficiencies and suggest process enhancements. Lean thinking relies on principles such as value stream mapping, just-in-time production, standardised work, and error-proofing to improve efficiency and responsiveness. By systematically reducing waste, organisations can lower costs, improve customer satisfaction, and enhance operational flexibility, ultimately leading to higher profitability and a more competitive business. More than a methodology, Lean is a mindset shift that encourages businesses to rethink how they operate, focusing on agility, efficiency, and delivering superior customer value.

A common myth is that Lean involves reducing staff and achieving more with fewer people; however, this is not true and does not reflect the true meaning of a LEAN culture. Here, we examine a summary of the 10 wastes of LEAN.

"There is one problem with LEAN: once you start recognising and seeing the business waste, it will drive you crazy!"

What are the 10 Wastes of Lean:

Imagine a world where every action in your business adds value and waste is eliminated. That’s the idea of the Lean methodology, a transformative approach that originated in the Toyota Production System. By focusing on eliminating waste and maximising value, Lean can significantly enhance your bottom line and drive profit growth.

Let’s examine the 10 wastes of Lean, each of which can negatively affect profitability.

1. Overproduction: Producing more than what’s needed, tying up resources and space. By aligning production with actual demand, you can free up these resources for more profitable ventures.

2. Waiting: Every moment spent waiting is a lost opportunity. Streamlining processes to minimise delays can keep your operations running smoothly and your profits climbing.

3. Transport: Moving materials unnecessarily costs time and money. Optimising your layout can reduce these costs, directly boosting your bottom line.

4. Overprocessing: Doing more than what’s necessary can be a silent profit killer. Simplifying tasks ensures that every effort adds value, enhancing efficiency and profitability.

5. Inventory: Excess inventory ties up capital and space. Implementing just-in-time practices can free up these resources for more strategic investments.

6. Motion: Unnecessary movement by employees can lead to fatigue and inefficiency. Consciously designing workspaces can boost productivity and morale, contributing to a healthier bottom line.

7. Defects: Errors that require rework are costly. Focusing on quality control and continuous improvement can reduce these costs and enhance customer satisfaction.

8. Unused Talent: Failing to leverage employees’ skills is a missed opportunity. Empowering your team can unlock innovative solutions and drive growth.

9. Excessive Processing: Doing more than what’s required can waste time and resources. Identifying and eliminating these activities can streamline operations and boost profits.

10. Underutilisation: Not fully utilising available resources can limit growth. Optimising resource allocation ensures you’re getting the most from every asset.

Becoming even 1% better in all of these areas will have a profound compound effect on your bottom line.

Some LEAN shoutouts and recommendations:

I first encountered Lean by reading 2-second lean by Paul Akers in the US and the podcast and YouTube channel called Lean Made Simple by Ryan Tierney in Seating Matters, Ryan is based in Limavady, Northern Ireland and you can visit his business, it's the epicentre of Lean. I also learned from Steve Halpin at LeanTeams and the Dublin Lean Network. In addition to these great people I studied Lean in Management training as well as operations and supply chain modules of an MBA at Trinity College, Dublin. If you’re interested in Lean, I highly recommend following these people online, as well as listening to their podcasts and YouTube channels. The Lean Made Simple channel is a real eye-opener. Talking to us at SenSys Technology Group , we can help with lean practices, lean methodology and lean technology.

Conclusion:

Addressing these wastes can streamline operations, reduce costs, and exponentially increase profits. Lean thinking isn’t just a methodology; it’s a mindset shift that can transform any business and bottom line. Start your Lean journey today by speaking to us at SenSys and watch your profits soar.

If you've made it this far and are keen to delve deeper into Lean and explore the nuances of the Lean wastes, please let me know. If you're interested, do follow along!