With FÁS predicting unemployment rates could increase to 12% before the end of 2009 these are difficult times for Irish business and in particular the manufacturing sector.
However, while factors such as the global recession, depressed demand and negative currency fluctuations remain outside of the control of most companies, improved competitiveness and sustainable profitability can be achieved by looking at efficiencies in existing processes across an organisation.
‘Lean Principles’ is the term used to describe the process where companies streamline workflows in their organisations to improve efficiencies, reduce costs and improve customer satisfaction.
The workflow in question can be materials, such as in a production setting, but can also apply to information (eg removing unneeded bureaucracy) or people (eg customer service improvements).
One company that has been to the fore in helping organisations to “get lean” is Lean Business Systems. The company was established by Gene Leonard in 2002 and since then has worked both indigenous and multinational companies in Ireland.
Gene Leonard said; “When we started, we worked predominantly with manufacturing companies where there is always an emphasis on process improvement and cost reduction. In recent years however Lean Principles have been adopted in service environments such as the financial services and healthcare where there is an increased awareness of the benefits of a Lean approach.”
At a tactical level Lean Principles help companies to identify and eliminate waste of resources, which have a real impact on their profitability. Leonard explains however that creating a culture of Lean is just as important if a company wants to create long term competitiveness.
“Every organisation is about people and the empowerment of people at every level of an organisation to become problem-solvers rests at the heart of Lean. In short, the goal should be to create a culture of continuous improvement across the entire company.”
While Leonard does see challenging times ahead for every business sector in Ireland he believes companies that focus on operational efficiencies through process improvements and waste elimination have a great chance of weathering the storm.
