T.I.M.W.O.O.D. - Foundations of a Lean Enterprise
“The most dangerous kind of waste [in a business system] is the waste we do not recognize.” – Shigeo Shingo
The key to developing a successful and sustainable business is to maintain a tireless focus on strategically increasing profitability while improving the quality of products or services, and ultimately customer loyalty. To help businesses assess their performance, improve efficiency, and reduce cost, many businesses have shifted focus to running a lean enterprise. “Lean” refers to a systematic methodology of evaluating a business process for “Muda” (the Japanese word for waste) and subsequently removing those wastes. If you’ve wondered what Lean is and how it might apply to your business this introductory article is for you.
Waste in Business Processes.
Although, it goes without saying that every business should seek to eliminate as much waste as possible, some forms of waste are necessary. Lean is focused on eliminating unnecessary waste from business processes. Specifically, Lean concerns itself with what it refers to as, “The Seven Deadly Wastes” which include, Travel, Inventory, Motion, Waiting, Overproduction, Overworking, and Defects. To better remember these concepts, the acronym “T.I.M.W.O.O.D.” is often used. An overview of these common forms of waste is provided below:
By recognizing functions or procedures that could potentially be a business can reduce expenses and increase profitability. All employees should be educated to recognize waste and encouraged to report it or take corrective measures to address it.
Midwest Business Consulting is a veteran-owned business specializing in helping clients achieve exceptional results through optimized operations and continuous improvement initiatives. To learn more about reducing waste and improving your organization’s operations and profitability call MBC at 708-571-3401 or visit us at www.getMBC.com.