Why Lean Principles Fatten Your Wallet: A Tale of Factory Fitness

The Great Waste Exodus:

Lean principles are all about giving waste the boot. But we're not talking about your afternoon snack wrappers (though you should probably “cLean” those up too….. sorry!).

We're talking about the Seven Deadly Wastes of manufacturing (actually, there are eight!.. but I’ll get to that):

Transportation: Moving things around more than a chess grandmaster.?

The guy on the forklift may be flat-out supplying the shopfloor but if all he is doing is moving the same thing from A to B to A to B…. then it’s time for a rethink

Inventory: Storing more than a doomsday prepper.

Having any work-in-progress or finished goods not invoiced has a cost

Motion: Unnecessary movement, like doing the Macarena while assembling parts.

Waiting: When your machines are lounging around like they're on a beach vacation.

The Haulier William Stobart famously said “we are only making money if the wheels are turning”

Overproduction: Making stuff nobody wants. It's like baking 100 cakes for a party of 10.

Remember, ‘inventory’ needs resources to move it, count it, keep it warm (or cold), lose some, break some and have it go out of date!

Over-processing: Polishing a product so much you can see your reflection in it.

When a simple wipe would do why do you ‘go the extra mile’ – and what does that even mean?

Defects: When your products come out looking like abstract art (and not in a good way).

Having to spend time, materials, energy, effort to make something only to have it fail a final inspection or quality check is the best way to lower staff morale!

The Money-Making Magic

Now, here's where it gets interesting. By kicking these wastes to the kerb, you're not just tidying up – you're literally creating money out of thin air. How? Let me break it down:

√??? Less Inventory = More Cash:

Instead of tying up your money in unsold goods, you can invest it in things that actually make money. Novel concept, right?

√??? Faster Production = Happy Customers:

When you can deliver products faster than a pizza guy on rocket skates, customers will love you (and pay) more.

√??? Quality Up, Costs Down:

Fewer defects mean less money spent on fixes, returns, and apology fruit baskets to angry customers.

√??? Efficiency = Competitive Edge:

While your competitors are still fumbling around like a three-legged horse, you're galloping ahead, stealing market share (and their lunch money).

√?????Employee Satisfaction = Productivity:

When your workers aren't doing the industrial equivalent of busy work, they're happier, more productive, and less likely to "accidentally" program the robots to revolt.

This deals with the 8th waste, the waste of people’s time and abilities

The Bottom-Line Boogie

All of this adds up to one thing: more moolah in your corporate coffers. You're spending less on waste, producing more with the same resources, and potentially charging premium prices for your super-efficient, high-quality goods.

Conclusion:

?Lean in to get FAT (Profits):

Implementing Lean principles is like putting your factory on a strict diet and exercise regimen. It might be tough at first, and you'll probably want to cheat (just one little inventory buffer, please?), but stick with it. ?

Before you know it, your processes will be Lean, mean, and a profit-generating machines.

Remember, in the world of manufacturing, the famous quote should be:

"Waste not, want not = more money in your pocket."

So, are you ready to Lean in and fatten up those profit margins?