How Executing Lean Principles Can Increase Overall Sales

A Lean Enterprise Partners Learning Series Original

The importance of having sales representatives equipped with the skills needed to not only drive new business but also maintain existing customer relationships is greatly important to the growth of any business. If proper time is not allocated to business development efforts, it could result in stunted company growth or a decline in sales margins. Without a detailed strategic sales plan and a clear understanding of the difference between budgeted and actual sales, a company can suffer and lose potential profitability.

A common misconception about Lean is that it is only applicable to manufacturing and its processes. The reality is that Lean can be applied to multiple areas of business in many different ways. Whether it’s streamlining processes to allow for better usage of time management or defining structure and identifying communication barriers, Lean Principles have been helping companies increase efficiency since its introduction in the late 1980’s.  When applied to a sales environment, an increase in employee efficiency can help increase overall profits over time. How can you determine if you should implement Lean Principles within your sales department?

Ask yourself the following questions:

• Are we suffering from stagnant or declining sales?
• Is there a lack of strategic sales plans and targeted business plans by region?
• Do we allocate little time to business development?
• Is our customer service ineffective? i.e. complaints, customer support, customer loss, etc.
• Is there a lack of structured customer contact?
• Do employees lack product and service knowledge?
• Do we submit late, incorrect or poorly planned quotations?
• Are there constant order errors? i.e. information, rates, product cost, product etc.
• Is there a lack of an action plan with regards to differences between budget and actual sales?
• Is there an ineffective line of communication between stakeholders and departments?
• Is there a lack of follow up to control of performance indicators? i.e. deadlines, delays, productivity, quality etc.
• Does our management team use non standardized work procedures and methods?

If you answered YES to any of these questions:

Then it’s time to consider incorporating Lean Principles in to your sales department. Lean Enterprise Partners can help! The goal of our sales approach is to structure sales activities in order to increase hit ratio and revenues. By structuring and optimizing business development activities we increase the number of contacts with new and existing clients. We will also help structure a value proposition to differentiate from competitors and improve customer service policies and procedures.  With our expertise, you have the ability to achieve these potential results:

• Increase in sales revenue.
• Increase in hit-ratio.
• Improvement in customer service processes.
• Maximize sales ratios (by order size, meeting, sales person, region)
• Prioritized business development activities.
• Increase in number of client contacts and new clients.
• Maximize client contact experience.
• Increase in resource productivity.
• Reduction on operating costs.
• Level 5 Certification in Sales.
• Proactive management and overall positive office culture.
• Effective communication structure.

Who is Lean Enterprise Partners?

Lean Enterprise Partners (LEP) is a private Lean Consulting firm that is focused on doing more with less, getting it right the first time and delivering practical solutions that establish accountability, credibility and sustainability.  We offer customized programs that are guaranteed to generate results.  Contact us today to learn more! (724) 485-2577

Managing a supply chain can be a strenuous job. No matter how accurately a company tries to forecast production needs, there is always a chance that the product could become an “overnight success”. This results in the product demand exceeding projected numbers and may give a manager very little time to properly fulfill order procurement. A company can become vulnerable to profit loss and high material costs if they do not have a solid and flexible supplier network. Knowing what attributes to look for in a potential supplier and possessing strong negotiating techniques are crucial to managing a profitable supply chain. In addition to strong supplier relationships, it is imperative to monitor key performance indicators (KPI’s). Knowing and regularly reviewing your company’s KPI’s can help track production inefficiencies resulting in the discovery of lost profit. How can you determine if suppliers are putting kinks in your supply chain?

As a Manager, ask yourself the following questions:

• Over time have we incurred higher material and service costs?
• Has our selection criteria for suppliers been unsuccessful in the past?
• Do we suffer from ineffective negotiation strategies?
• Have our supplier contracts expired and not been renegotiated?
• Is there little time allocated to the negotiation of contract terms?
• Is the workload distribution between buyers and suppliers inadequate?
• Is the line of communication between stakeholders and departments broken?
• Are Key Performance Indicators being reviewed regularly?
• Does our management team engage in non-standardized procedures and work methods?

If you answered YES to any of these questions:

Your supply chain is not functioning at maximum profitability levels. Lean Enterprise Partners approach to Supply Chain Management makes it possible to improve a buyer’s negotiating skills in order to increase savings related to negotiations. Our program will also teach buyer’s how to clarify criteria needed for selecting suppliers. Learning these techniques will help improve business relationships while also optimizing the terms of supply contracts. Lean Enterprise Partners will provide your company with a customized Supply Chain Management program that has the potential to result in the following:

• An increase in savings related to negotiations.
• Improved contract term optimization (deadlines, payments, quality).
• Enriched business relationships with suppliers.
• Improvement of buyers negotiation skills.
• Increase in the productivity of resources.
• Level 5 Supply Chain Management certifications.
• A reduction in operating costs.
• Proactive management and culture initiatives.
• Stronger communication structure across multiple departments.

Who is Lean Enterprise Partners?
Lean Enterprise Partners (LEP) is a private Lean Consulting firm that is focused on doing more with less, getting it right the first time and delivering practical solutions that establish accountability, credibility and sustainability. We offer customized programs that are guaranteed to generate results. Contact us today to learn more! (724) 485-2577

Would Implementing Lean Principles be Beneficial to My Business?

A Lean Enterprise Partners Learning Series Original

In order to be successful in such an unstable economy, it is important for a company to be able to identify their needs for improvement. Having the ability to identify flaws in the components of a business can result in preventing profit losses. There is a cost associated with every flawed component that can cause a company’s profit margin to shrink if not corrected both quickly and efficiently.

Implementing Lean Principles can be beneficial because of its ability to identify and eliminate waste. The results of implementing Lean can include quality improvements, lower production times and even cost reductions. People who are unfamiliar with Lean assume that it applies to only manufacturing and distribution companies, however the reality of Lean Principles is that it can be applied to any business sector and all practices from top to bottom.  How do you know if Implementing Lean would be beneficial to your business?

Start by asking yourself the following questions:

• Do we suffer from uncontrolled processes?
• Does the production line experience lack of synchronized flows and uncontrolled bottlenecks?
• Are there constant production delays or long startup times?
• Are the lines of communication between departments ineffective?
• Do employees have a clear definition of roles and responsibilities?
• Do we lack plant capacity and flexibility in the production process?
• Do we waste time searching for material, tools or information?
• Have contracts expired and supplier terms properly negotiated?
• Does Management exhibit non-standardized work methods?
• Is there accumulation of in–progress and long delivery times?
• Do we have high inventory costs?
• Is there weak equipment efficiency?
• Is there little follow-up on returns and customer complaint causes?

If you answered YES to any of these questions:
Implementing Lean Principles are highly recommended! With so many components associated with it, how do you determine which Lean method(s) are applicable? We can help! At Lean Enterprise Partners, our approach to Lean Principles guarantees you a full optimization of your value chain. After a thorough analysis, we will develop a customized program guaranteed to generate results. Our ultimate goal is to increase value-added operations while reducing various operational constraints relating to delays, inventory, quality and capacity. By doing this, it also helps establish a culture and a structure for continuous improvement by forming intervention groups specialized in problem solving. With Lean Enterprise Partners assistance, you could achieve these potential results:

• Implementation of a three dimension control process focusing on quality, costs and delays.
• Effective communication structure and proactive management culture.
• Reduced operating and labor costs.
• Increased plant capacity, improved production and quicker delivery times.
• Reduced product cycle times.
• A reduction in defective products and quality issues.
• Increased flexibility within the production process.
• Space and resources optimization with decreased inventory levels.
• Decrease in returns and customer complaints.
• Improvement in OEE (Overall Equipment Effectiveness).

If you still are not convinced that implementing Lean Principles can help your business, click here to read a case study involving Lean Enterprise Partners and how we were able to deliver a 27:1 ROI to a former client.

Who is Lean Enterprise Partners?
Lean Enterprise Partners (LEP) is a private Lean Consulting firm that is focused on doing more with less, getting it right the first time and delivering practical solutions that establish accountability, credibility and sustainability. We offer customized programs that are guaranteed to generate results. Contact us today to learn more! (724) 485-2577

Does Your Company Need an Organizational Development Makeover?

Sometimes as Managers, we tend to overlook the correlation between employee morale and the overall success of a company.  When employees show enthusiasm about their company and job, they tend to work harder and produce better results.  This enthusiasm also transforms employees into “word of mouth” marketers which results in a good source of free PR.  In order to achieve this type of positive work culture, the enthusiasm needs to start with upper level management and flow downward across all departments.  This can be easily achieved with a solid Organizational Development program in tow.   Implementation of a strong Organizational Development program is crucial to not only maintaining positive employee morale, but also assists with discovering ways to streamline efficiency.   How do you know if it’s time to implement an Organizational Development program in your company?
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As a manager, ask yourself the following questions:

• Do my employees have an unclear definition of roles and responsibilities?
• Does the company experience high employee turnover rates?
• Is there a high level of daily absenteeism?
• Is the company’s health and safety procedures perceived to be administrative and not effective?
• Is a flexibility metric not in place?
• Is our in-house training structured and being implemented correctly?
• Are we communicating information properly between organization levels?
•  Is there a communication board and is it being updated consistently?
• Am I promoting the proper employees for new roles in the organization?
• Is there a presence of reactive mode management causing low employee morale?
• Do my managers lack a knowledge of understanding KPI’s and effective usage on shop floor?
• Have we ever performed a root cause analysis and took action to reduce gaps between actuals and plans?

If you answered YES to any of these questions:
It may be time to revisit your Organizational Development initiatives.  Lean Enterprise Partners Organizational Development program goes beyond the traditional Human Resources approach. We start by performing a holistic analysis of a company’s overall health and safety practices, employee well-being, employee roles and responsibilities and multi-departmental communication techniques. In addition to the overall analysis, Lean Enterprise Partners also provides a comprehensive evaluation of all managers (MSI, L360 °, PSI , CF 2 , O 2, ASI  and DSI).  This paints an accurate portrait of the management team and organizational readiness to give senior management a benchmark ranking of their organization.  Lean Enterprise Partners will provide your company with a customized Organizational Development program allowing your company to achieve results such as:

• Properly coached front line supervision.
• Implementation of a true Health and Safety culture.
• Significantly reduced NVA times.
• Increase employee flexibility, resources and skill sets.
• Increased team work across organization levels.
• Motivated workforce and lower absenteeism.
• Reduced operating costs lowering the company’s bottom line.
• Level 5 Organizational Development certifications.
• Proactive management tactics and a positive culture shift.
• Effective communication structure across organization levels.

Who is Lean Enterprise Partners?
Lean Enterprise Partners (LEP) is a private Lean Consulting firm that is focused on doing more with less, getting it right the first time and delivering practical solutions that establish accountability, credibility and sustainability.  We offer customized programs that are guaranteed to generate results.  Contact us today to learn more! (724) 485-2577

State Funding Now Available for Employee Training Programs

State reimbursed training funds are grants and programs offered to workforce development services. These funds are designed to offset a portion of eligible employers’ costs related to skills improvement training for full time permanent workers.

Most companies are not aware that there is a possibility that state funding is available to them for Employee training programs at city, state and even county levels. Each sector individually sets the criteria for qualifying companies and training programs. Researching for available state funding can be extremely tedious with a risk of missing application deadlines if not done in a timely manner.

Lean Enterprise Partners, a Lean Consulting Firm and industry leader in implementing custom Lean Methodology programs, can assist with the research that goes in to finding funds for your employee training programs.

Our ultimate goal is to improve your bottom line by a significant amount, train employees in all areas of management and provide continuous improvement for years to come. It also gives us a birds-eye perspective of all operations in order to implement the correct services to benefit your company.  Lean Enterprise Partners can do the research for you and find the funds needed for employee training if readily available!

A private consulting firm focusing on Lean Methodology. What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI and holistic approach.  Contact us today to see if state funding is available for your Employee Training Programs!

David Buggan

President, Lean Enterprise Partners

dbuggan@lep-llc.com

(724) 485-2577

http://www.lep-llc.com

Six Sigma or Lean Methodology?

These two should go hand in hand!

There should be coexistence between the two terms – one concept should not replace the other.

There has been plenty of debates between the two concepts as Lean Methodology has been said to go simply toward the streamlining of manufacturing and production processes – improving process flow.  Six Sigma is claimed to aim more towards focusing on process variation reduction and improved quality.

Integrating both into your company and having the two concepts work in unison will produce the ultimate toolkit increasing process flow, improving quality and deliver, satisfying your employees, satisfying customers and (most importantly) increasing your revenue!

Six Sigma or Lean Methodology?

“Six Sigma cannot dramatically alone improve process speed, that’s why you need to incorporate Lean. – Lean alone cannot bring a process under statistical control. That’s why you need Six Sigma. Achieving a fast improvement rate in process speed, cost, and quality requires the combination of Six Sigma and Lean.” – Michael L. George, Lean Six Sigma

A private consulting firm focusing on Lean Methodology. What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI. Contact us to discuss how you can implement a program today!

David Buggan

President, Lean Enterprise Partners

(724) 485 – 2577

dbuggan@lep-llc.com

What is 5S Methodology:

“5S Methodology is the name of a workplace organization method that describes how to organize a work space for efficiency andeffectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order.”  5S(methodology). Wikipedia: The Free Encyclopedia. Wikimedia Foundation, Inc. 25 October 2015. Web.  27 October 2015. < https://en.wikipedia.org/wiki/5S_(methodology)>.

5S Methodology dates back as far as the 16th century with Venice shipbuilders. In attempt to streamline their assembly process, shipbuilders used quality process production to build ships in hours instead of days or weeks. From there on out, Japan developed 5S and it was then identified as one of the techniques that enabled Just in Time (JIT) manufacturing. – The 5S Methodology principles were made for Lean production to assist with cost reduction and employee empowerment as they work from the assembly line of a company to the office. The decision-making process usually comes from a dialogue about standardization, which builds understanding among employees of how they should do the work which creates order and motivation in the workplace.

The 5s Methodology System as used in lean production

5S Methodology Explained through Lean production:

1. SORT – Eliminate unnecessary items from the workspace and dispose of them properly. From here, you can make your work easier by eliminating these obstacles. You also minimize the chance of being disrupted by these unnecessary items by preventing the accumulation of the items. REMOVE ALL PARTS THAT ARE NOT BEING USED.
2. SET IN ORDER – Arrange all necessary items so that they are easy to find, use, and store. This prevents loss and wasteful time. This also ensures first-come-first-served and makes your workflow smooth and simple.
3. SHINE – Keep your items and work area tidy. Clean your workplace completely. This prevents machinery and equipment deterioration and malfunction.
4. STANDARDIZE – Create a consistent and steady approach to procedures. This also maintains high standards of housekeeping and workplace organization as well as cleanliness and orderliness. EVERYTHING IS IN ITS RIGHT PLACE. EVERYTHING IS WHERE IT BELONGS.
5. SUSTAIN – Make a habit of maintaining the correct procedures. This is implementing solutions to address the root causes of your work area organization issues. This ENSURES that this methodology is a long-term, company-wide goal.

Without this concept all you have is waste. You have utter disorganization, imbalance, and disproportion as well as unnecessary items that use up precious time in your facility. Your company then demands extra movement by walking around obstacles to retrieve items that are needed at hand. Movement, time, energy, motivation and, most importantly, cost is wasted.

A private consulting firm focusing on Lean Methodology. What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI. Contact us to discuss how you can implement 5S Methodology today!

David Buggan

President, Lean Enterprise Partners

(724) 485 – 2577

dbuggan@lep-llc.com

What is OEE (Overall Equipment Effectiveness) and how does it effect your business?

What is OEE (Overall Equipment Effectiveness)?

OEE or Overall Equipment Effectiveness is a key metric used in Total Productive Maintenance (TPM) that improves and monitors the efficiency of a company’s manufacturing processes.  By simply calculating 3 Factors: Availability, Performance, and Quality, you can learn your OEE.    Knowing your calculation can help you find inefficiencies with processes, quality, consistency, and productivity which can have ultimately have an immediate impact on your company’s bottom line.  This calculation is extremely important to manufacturing companies.

What is OEE Calculation ?

Ellis New, Senior Manager Consultant – Business Practice Leader, Productivity Inc. explains,

“OEE (Overall Equipment Effectiveness) = Availability x Performance x Quality

Availability rate (percentage of time the machine is ready to produce, working properly, and not in the midst of changeovers or adjustments) = Available time (scheduled operating time − downtime) ÷ Scheduled operating time.

Performance rate (ratio of output produced compared to a standard) = Actual output ÷ Standard output.

Quality rate (ratio of good output compared to actual output)= Right-first-time output ÷ Actual output.”

Click Here to read the full article on Industryweek.com

Six Big Loses’ to OEE

According to the Academy for Optimum FX, “To be able to better determine what is contributing to the greatest loss and so what areas should be targeted to improve the performance, these categories have been subdivided further into what is known as the ‘Six Big Loses’ to OEE.”

These are categorized as follows:

OEE Six Big Losses Breakdown

To Learn more about the Six Big Loses’ click Here

How Can Lean Enterprise Partners Help with your company’s OEE?

Lean Enterprise Partners is a private Lean consulting firm focusing on Lean Methodology. We can assist your company with not only finding your OEE, but also implementing custom programs that will increase the key factors of efficiency mentioned above.   What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI and holistic approach.  Contact us today!  (724) 485-2577

David Buggan, President

Lean Enterprise Partners

(724) 485 – 2577

dbuggan@lep-llc.com

Lean Manufacturing: Should Your Company Implement it?

Every company has slightly different needs. Your economic situation, workforce skills, and challenges play a large role in determining the path you should take when it comes to implementing a Lean environment. Lean Manufacturing requires a lot of focus and hard work, but the benefits are well worth the effort. As your company becomes more efficient, your profit margin will improve, making you more successful. What would you be able to do with more money?

First take a look at the seven key areas of waste – Over Production, Waiting, Defects, Motion, Over Processing, Inventory and Transportation .

Now ask yourself these questions:

Overproduction:

• Do I have products that are made before they are actually required?
• Do I have product filling up needed space in the warehouse because they are not moving or selling

Waiting:

• Are materials or products not moving or being processed?
• Are my employees waiting for the next step in production?

Defects:

• How much rework is required?
• How much scrap do I have?

Motion:

• Is there excessive movement of my employees?
• How long does it take to transfer data, information, and make decisions?
• What about unnecessary or excessive equipment movement/usage?
•  Is the data entry an issue within the MRP systems?

Over Processing:

• Is my organization using expensive, high precision equipment?
• Is there more processing than is needed to produce what the customer wants?

Inventory:

• Are there large batches of product sitting around the warehouse for extended periods of time?

Transportation:

• While my product is moving, is it being processed?
• Does my facility have an inefficient layout or large distances between operations?
• Does my organization have lengthy or complex material handling systems?

Lean Manufacturing is the solution to lowering waste and increasing productivity. Your organization can benefit from all kinds of improvement, large or small. As seen in the graph, 60 percent of activities in the majority of operations do not add any value. So, why continue wasting time, resources or people if there is a valuable opportunity for improvement that can result in higher profit?

Lean Enterprise Partners, is a private consulting firm focusing on Lean Methodology. What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI. Contact us today! (724) 485-2577

A private consulting firm focusing on Lean Manufacturing. What makes Lean Enterprise Partners different than other private consulting firms? Our guaranteed 3:1 ROI. Contact us to discuss how you can implement Lean today!