Lean Methodologies

Service: Lean Methodology – taking out cost in your operations | Sector: Private | Industry: Manufacturing

Client brief

With sites across several European countries, and further around the world, the project funding process is a critical business function for this global group.

The client had identified that current project funding processes were extremely inefficient – cost savings were being lost due to administrative process delays. Inefficiencies caused a great deal of frustration, holdups and wasted time.   As the project was limited to the European region of this multinational concern, it was imperative that any new processes introduced would streamline with global financial regulations.

Findings

A Value Stream Mapping exercise clearly demonstrated the key areas that needed to be improved. The Capital Expenditure process was different at many of the sites, which caused delays and confusion. The internal ordering system for IT services had several areas of weakness where errors were being introduced, causing rework. There were many non value adding steps to the process, which added to the user frustration levels.

Recommendations

LEAN methodologies were used to achieve the project’s goals, including Visual Factory, Kaizen, Poka Yoke, Value Stream Mapping and Standardised Processes.

The Capital Expenditure budgeting process was updated to ensure all sites in the region followed a single process, and at a single timescale. A streamlined internal procurement process was designed, with a structured approach for businesses to request that the internal IT department instigate and execute a project.

Quantifiable results

Around £100,000 per annum savings were identified by the three month project. Savings were locked in by using the LEAN’s control phase – in this case, using Key Performance Indicators on a visual dashboard.