I spent just 2 and a half hours with a client today – they have a turnover of around £2.4m per annum. In our time together we identified £930k of waste per annum. Well, they did, using my simple process.
Just to be clear, waste is “activities or outcomes that do not link to the provision of value to a customer”. A customer can be internal or external.
Three of the wastes amounted to £750k of that total and we’ve set up 2 project teams working on two of the issue that represent the low-hanging fruit.
To be honest, I could have arrived at the same outcome in 10 minutes with the MD, but the time was an investment in the buy-in of the other board members, so very worthwhile.
Why put more through an incapable system? I recommend that the business take out waste BEFORE they grow, or they’ll simply increase the waste.
So, that’s the easy bit done. The tricky part isn’t finding the waste, but using project teams to eliminate it. That isn’t really a rational issue. but an emotional one, so needs experience in change management. That, in the end, will be where they need my help – let’s see…