Finance 4 Growth

Lean Principles
 Who am I?

• Enterprise Ireland, Competitiveness & Lean

Business Department Manager
• EU Japan Centre for Industrial Co-Operation
• European Benchmarking Network
• Advisor Internationally on Benchmarking and
Best Practice
• Trinity College Dublin, Dept of
Statistics(retired)
• Author
 Level 3
Process The Five S’s Total Productive Overall Six Sigma
Benchmarking Maintenance Equipment
Efficiency

Business Value Analysis Lean Production Target Cost

Excellence &Management Management

Level 2
Facilitated Physical&Process Physical&Process Production Control
Assessment Flow in the Office Development Systems
Benchmarking

Saving Time in the Maintenance Practical Quality Team Building &

Workplace Tools Culture

Sales and Growing Financial Supply Chain & Innovation&

them Management Logistics Design

Business Strategy Implementation

Level 1
Self Assessment Physical Flow Process Flow Set Up Time
Benchmarking Reduction
Check Sheets Run Chart People & Teams Basic
Maintenance
 What do we mean by Lean?

• Lean is shorthand for Best Practice within a sector

• Helps People identify and deliver improvements in their

businesses

• Provides a framework for competitiveness improvement by

building the capability and competences of people to
QUICKER

BETTER

CHEAPER.........TOGETHER
 What is Lean?
Focused on Effectiveness and Efficiency

Doing the right things well!

A War on Waste!!!
What is the alternative?
 What is Lean?

• Based on the Toyota Production System

• “Understood” by American consultants
• Six Sigma – Developed by Motorolla Corp, statistically based
approach
• Similar tools but:
– Lean focuses on continuous business processes
– Six Sigma focuses on discrete projects for improvement
• Driving and integrated into company strategy
 Some Lean Principles….
• Time

• Money

• Effort

Must want to compete…..

 Rules
1. Fairness
2. Firmness Dealing with People
3. Consistency

4. Look
5. See
6. Understand Dealing with Processes
7. Do
 Five Fundamental Lean tools…..

• Process Mapping

• Physical Flow mapping

• Check Sheets – What is going wrong?

• Run Charts – Is it getting better or worse?

• Teams – People working together to improve their business

 Key Lean Questions…..

• What are you doing? Capture the FACTS!

• How are you doing it?

• Why are you doing it?

• Who is going to improve it?

Make things better…..
• When?
 Lean - Action based on FACTS

• Benchmarking = Diagnosis

• Lean - Best Practice = Medicine

 SUMMARY OF LEAN BUSINESS OFFER
Eligible cost elements Client EI grant
costs
Lean-Start ‘Lean’ consultancy €6300 €5000
fees at €900 per day
Lean-Plus ‘Lean’ (& specialist ) Up to Up to
training fees €70 k 50%

Cost of company
‘lean project champion’.
subject to EI assessment.
Lean Training fees Typically As set by
Transform over EI.
training costs €100 k < 50%

company staff costs and

other costs as may be
approved by EI

Contact lean@enterprise-ireland.com
http://www.enterprise-ireland.com/en/Productivity/Lean-Business-Offer/