Many companies and organizations are continuing to look for ways to reduce their internal cost of operations and overhead. Implementing LEAN principles has become a very important concept and one that may help improve overall efficiency of operations, directly impacting bottom line results.
What is LEAN?
The technical definition of LEAN manufacturing is "a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection." Waste is defined by the LEAN acronym DOWNTIME. DOWNTIME is defined as:
Non-utilizing people and talent
By eliminating these wastes, a business can reduce its non-value added activities and therefore become more process efficient and cash flow profitable.
Benefits of LEAN
There are tangible and intangible benefits of using the LEAN tools to make improvements in the business. Some of the tangible benefits include: reduced lead time for orders, improved quality, reduced cost, reduced inventory, improved productivity, and better floor and office-space utilization. The intangible benefits include better teamwork, improved morale, and better perception in the eyes of the customer. Companies embracing LEAN can expect quick, dramatic reductions in waste and improvements in productivity. LEAN is applicable to companies ranging from the small job shop to large business enterprises. It teaches a systematic approach to eliminating wastes and creating flow throughout the enterprise. These companies include large and small, product oriented or custom manufacturer, mold shops, and other small companies, dispelling the myth that LEAN principles cannot be effectively used at small-volume, high-product-mix operations.
McKonly & Asbury can assist most organizations with an assessment of their business processes and provide value added services to support any LEAN initiate. McKonly & Asbury partners with MANTEC (www.mantec.org), Central Pennsylvania’s Industry Resource Center, in providing comprehensive LEAN services. Some of the LEAN services we can provide are:
- LEAN Assessment
- LEAN Principles Training
- Assist in performing Kiazen or specific process improvement events
- 5S (Sort, Straighten, Shine, Standardize, Sustain)
- Value Stream Mapping
Industries We Can Serve
While LEAN is a manufacturing concept, its principles are universal and can assist with many different industries. Industries we can support and assist with LEAN concepts are:
Who are the LEAN Accountants?
Members of McKonly & Asbury's LEAN Principles team are highly skilled and know how the use of LEAN establishes a systematic approach to eliminating wastes and creating flow throughout the enterprise. Our team is led by David Blain, Partner, CPA, CVA and Michael Hoffner, Partner, CPA (view their full profiles in pdf by clicking here).