SEach one of us looks forward to a happier, secure and healthier life. Unfortunately, all this is not easy, but one needs to strive for. We spend one third of the life in understanding what we need to do. When it is time to do something, we get so engrossed in it that we hardly have the time to enjoy the life given.
We earn, but we need to learn as well. We go through life but it is equally important to grow through.
Similarly, organizations are set up with the core objective of making money “earn “. As the organizations earn, they forget to learn. They forget to learn the new tools and techniques to relieve the strain and the stress.
In life as we go through, we learn to meditate – to focus on the inner self; to focus on the inhaling and exhaling of each breath – each and every moment of existence.
In lean, organizations are taught to focus, to observe on each and every activity: to inhale the value adding and to exhale the non-value adding (MUDA), on a continual basis.
During this process, the more we relax, the more we observe and the more we understand and the more we improve.
Continual improvement is lean. It is a journey, it is life!! We cannot run away from the processes and the activities, we can simply observe, understand and make them better.
The more the understanding, the better the health of the financial statements and the employees.
Meditate, observe, understand, and improve each activity in each and every aspect of the enterprise. The organizations will be fitter and flexible to all the dynamically changing needs of the internal customers – like internal organs in the body and the external customers – like the relationships we build. We feel happier secure and at home. Lean is meditation, which needs to be practiced daily by one and all in the organization.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc (AVCI). He is a Lean Trainer and Consultant, having consulted several organizations across the globe. AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!!
The world is growing crazy for adopting lean tools and pillars to become profitable on a sustained basis. The journey begins with a lot of excitement with little realization that it is a long journey needing a lot of top management commitment. The middle and lower management need to be ready to embrace change with the assured job security.
Change is must and so is lean. Both go hand in hand. The real challenge is in the continuity and the sustenance, followed by continual improvement.
Organizations need to understand the human mind; its willingness to embrace change without fear.
Lean Psychology, Lean Counseling, can address this aspect with ease. Integration of the psychological and counseling tools and techniques in the Lean journey remove the threats as perceived by any employee and pave the expressways for laying the foundations of the Lean journey.
Human Management is the very critical aspect to be addressed along with the processes and the activities.
The removal of the Muda from the human mind even though little is quite challenging, but highly value adding and hence rewarding. This process has to be continual all along the Lean journey, well in sync with the training, understanding and execution of all lean tools and pillars.
The synchronization is the key. Lean alone is not enough. If done alone, it may be short lived. A perfect synchronization can be a great combo – dreams come true for any organization!!
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
The Total Lean Management Model (TLM) by ADDVALUE, integrates Lean Pillars and Tools, which need to be applied across the value chain: from suppliers to customers, from inputs to end user.
The approach is highly scientific. TLM is executed by observation, analysis and problem solving in and every activity, on a continual basis.
While the application of tools and techniques is scientific in nature, it is an art to cut across the organization hierarchy, keeping in mind the egos and the authorities that need to be handled with care.
The scientific approach needs to be coupled with the artistic behavior to incorporate the change management with the least resistance. The critical path to improve the desired value-adding ratio has to be trekked ensuring the least resistance from all levels of the organization.
Enforcement of the lean pillars and tools for a disciplined workplace has to come through by empowerment, creativity and a sense of achievement, which later on are embraced, rather than being pushed.
The art is therefore in applying the scientific principles in a welcoming spirit, which can raise the competitive standards leading to creation of a learning organization, self-propelled and progressive.
The true balance of the art and science of change is difficult to define, as all organizations are unique, but can be felt, visualized and can be worked upon as the change progresses.
Every country, every business, each and every product line, all industrial issues, all customer issues are unique in nature. They have only one common platform – the need for integrating the art and science of application of Lean for Operations Excellence, Team Excellence and Business Excellence for adding value in totality!!
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
The giants see Africa markets as the emerging next global destination. Cheap labor, vast resources, land locked countries and the eagerness to grow make them the blue-eyed boys of future growth and development.
At the same time, unskilled labor, port congestions, power, distribution and logistics, productivity, pose a lot of challenges in the red ocean.
The game will favor those who are effective in each functional domain of the enterprise. The huge potential leads to high investments, but the associated risks cannot be ignored.
This would need operations excellence, team excellence and business excellence to be much knitted and to be in sync with the organization vision. This integration and alignment can bring around the desired change management leading to Lean Manufacturing excellence.
The exposure and awareness to World Class Manufacturing practices does prevail, but needs to be executed as part of the strategy. The human resources need to be counseled for a well-designed team propelling the growth of the organizations.
The Total Human Management (THM) pillar of the Lean Model can play a pivotal role in anchoring the design, training and execution of Lean Manufacturing pillars and tools for creation of fit and flexible world class organizations.
This would enable the local players keep the competitive forces at bay while they raise their own internal standards.
The markets are available for all, but Lean organizations can capture them with much ease and create entry barriers for the external players or at least make them have a run for their money.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
For decades now, lean is understood as a methodology to identify, reduce and if possible eliminate the waste; a philosophy for reducing the through put time; being world class etc.
My years of training and consulting across the globe, have enlightened me by unearthing the following hidden meanings and philosophy of lean:The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Lean being the in thing, all consultants want a piece of the cake. The demand being higher than supply, opportunity exists for all consultants. Higher returns mean higher risks and this fact cannot be ignored.
Consultants should follow their own PDCA and SDCA as follows:The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Consultant and Trainer, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Lean means to create fit and flexible organizations, which work in synchronization with the highly dynamic market demand. Lean is short, is a fitness regime, which the organizations need to incorporate in their daily regime for a healthy and longer life.
Human body needs activity on a daily basis to burn calories, burn the fat and remain healthier. To do this either human beings engage in various outdoor activities or go to the gym, to perform the various exercises under the supervision of the gym instructor. Different exercises are performed to burn fat and build muscles in various body parts. The body needs to follow a schedule. The human body undertakes various activities and exercises in a scheduled manner, to break the monotony and also ensure endurance and sustenance, with the end goal of having a healthy body, mind and soul.
Organizations are quite similar. Improvement activities need to be carried out on a daily basis to burn the muda (the organization fat). 5S, Muda identification and reduction, basic TPM are like cardio exercises, must on a routine basis.
For further improvements – value addition – building muscles, we need to use Lean pillars and tools: TFM, TPM, TQM, TSM and THM which focus on improvements of the various organization functions. All this is done according to a Strategic road map, which is well defined as per the vision and the mission.
Similarly for advanced improvements, organizations, take up different Lean pillars in stage wise execution with the goal of having a sustained growth and profitability.
The instructors are the consultants or the independent directors on board who give expert guidance for navigation.
Following routines help organizations develop a culture, a philosophy and create learning organizations.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Many organizations face the challenge of sustaining change management philosophies such as lean. The enthusiasm and spirit, which drives change, seems to fade away with passage of time.
A decade of consulting experience across various cultures and continents has enabled us to list down a few of the common causes posing as challenges and their solutions for sustaining the lean journey:The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
The lean journey is a collaborative effort between the employees, the management and the consultants.
While all aim to challenge and improve the status quo on a continual basis, difference of opinions do exist which at times try to dampen the progressive spirit and may even result in a deadlock.
Therefore to minimize these nasty situations and to keep the momentum alive, Lean consultants begin the change management journey by involving all in this oath:
Alone we are weak, together we are strong.
Together we shall work, with our own hands, as a family,
in mutual trust and with responsibility.
We can be LEAN, FIT and COMPETITIVE only if we are ever ready to change ourselves.
My opinions are of no importance.
The only thing of importance is the reality at the Gemba!
As a TEAM we shall ADDVALUE continually by
Identifying, Reducing and if possible Eliminating the Muda.
Working at ………., is all about team work.
Hail ……………..! Hail VALUE ADDITION !
Hail ……………..! Hail VALUE ADDITION !
The oath rests in the subconscious mind and irons out the wrinkles in the decision making process as and when required.
A common platform is of understanding the reality, the problems; the subsequent analysis makes the organization jump forward by leaps and bounds.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
It is the vision of the entire human race to excel continually in all walks of life. Consultants see the problems as areas of potential improvement. In a way they are opportunities for them to conduct the consulting business but on the other hand those are also distress areas for the organizations hindering the growth. The dilemma is whether to be happy for the opportunity or feel sorry for the organization pain. Consultants ADDVALUE to the process and the people, but have their own limitations as Muda busters. Skill, experience and expertise need to be duly supported by DIVINE intervention. Consultants thank God with the following prayer:
Dear Almighty,
It is an irony that our livelihood is dependent on the MUDAs present in the organizations.
Still, we consider ourselves fortunate that we have been given the opportunity to assist client organizations Identify, Reduce and if possible Eliminate Mudas, improve value addition and ensure growth and profitability on a sustained basis.
Thank you for giving us the desired Knowledge, Skills, Tools and Expertise in attacking the MUDAs.
Please give us the desired strength so that we can fulfill this responsibility with honesty and sincerity.
In reality you are the MUDA eliminator and we ADDVALUE by simply being the medium for translating your wisdom on the GEMBA.
Almighty, please bestow you kindness on us so that we are able to assist organizations improve on a continual basis.
Please bless so we can ADDVALUE and create Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!!
In this human form of nature, every person looks for various securities: financial, professional, social, emotional, etc.
Every human needs to grown though and excel in two dimensions: life and business. While focusing and excelling on one, the other dimension is left behind and gets neglected to such an extent that it become really difficult to catch up and breathe through.
Business and life need to be focused and developed with equal priority and perfect synchronization for attaining peace and salvation.
AddValue provides a unique integration and smooth application of Business Coaching and Life Coaching for individuals, family and the corporate in a well-defined structured manner.
Business Coaching encompasses Operations Excellence, Team Excellence, and Business Excellence for a great professional career and building world-class organizations.
Life Coaching encompasses Counseling, Therapy and Astrology for improving self-realization, confidence and reducing internal personal threats and resistances.
Both the above dimensions of consulting and coaching are carried out World’s First Couple Coach (WFCC) – Nilesh Arora and Gunjan Arora; designed and conducted uniquely for each recipient. Both have been consulting and coaching across the globe since 1999.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Indian Brass component manufacturing companies faces immense competitive pressure in the international markets. The world prices of both Raw materials and finished components are open and well known.
This puts the Indian brass component industry on the back foot and also work upon the internal efficiencies to generate gross margins and sustain.
Quality and on time delivery remain the key challenges to be addressed in parallel with productivity.
Brass components Manufacturers have retained ADDVALUE Consulting Inc. (AVCI), as consultants for lean manufacturing and also for business coaching as a whole.
ADDVALUE kicked off the entire mission on 18.09.2015, by training the top and senior management on the lean basics, lean model and the lean strategic road maps.
Brass Components are high volume, low cycle time, batch manufacturing, involving numerous machines. High inventory across the value chain (typically stored in small bins) leads to high TPT, reduced inventory turns and eventually low margins.
He laid stress on focusing and reducing the idle time of the machines. Each bin which has stored inventory is in fact money blocked at various stages of the value chain.
Material flow, 5S, Value Stream with pull manufacturing and extremely good TPM on CNC can be the game changers.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
In this fierce competitive world, branding is essential, a key factor for customer loyalty, gaining market share, holding on to prices and eventually sustaining margins.
There is a strong link between branding and a highly successful business. Branding is the way in which the business defined to self (owners), team and the external environment; all the stake holders in totality.
Branding is the reflection of the business – the identity; the personality. An emotional connect is built between the customers and the product – this is the trust which needs to be maintained at any cost.
The trust is for the attributes promised and delivered
.Although, the variances do exist in the attributes, it is the organization responsibility to ensure and monitor the fluctuations and ensure that they are within permissible within limits – the objectives which can be met through Lean Six Sigma.
Brand building strategy and Lean strategy should be complimentary so that the customer satisfaction levels of the highest standards are achieved, delivered and sustained.
Process Visualization and Standardization build the foundations for sound brands and ensure their longevity.
The combination of good operations excellence, lean distribution and logistics network and a great brand strategy - all interwoven leading to business Excellence would be the killer sharks eating away the smaller fishes in the deadly red oceans existing in all business sectors.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Lean awareness, knowledge, training and consulting, execution and sustenance are very different in nature and need skills and expertise at different milestones during the Lean journey.
Knowledge can be the greatest MUDA (waste) if not executed and sustained. The first step is to ensure TOP management commitment, which means that equal time and priority to this activity on a routine basis.
Lean is a top down approach starting with self-introspection and self-cleansing; creating internal space within the subconscious to be able to understand, realize, accept and apply the changes as required. Experience is good but change needs to challenge the status quo continually, innovatively to meet the dynamic market demands.
The top management acceptability, focus and drive build solid foundations for sustenance of the lean initiatives.
This top management dedication and priority sends strong messages down the line creating the desired involvement and contribution by the managers, supervisors and workers.
It is then, that empowerment needs to be given for problem solving, creative problem solving and the execution.
The total churning of the organization, which is top driven and bottom empowered, results in long term based actions, which are acceptable, executed and sustained for longer periods unless improved again.
In short, it is the push and pulls management applied simultaneously for positive growth vectors.
The author is Nilesh Arora: Founder – Partner, AddValue Consulting Inc. (AVCI). He is a Lean Trainer and Consultant, Strategic Management Expert and a Business Coach. He has been consulting several organizations in Asia Pacific – Africa – Australia. He coaches business leaders across an array of industrial and business sectors and also serves as an independent director on board of many organizations. He is the pioneer of Total Lean Management (TLM) model and 9 Steps to Building World Class Organizations. With his work experience spanning across continents, Nilesh exercises a high degree of discretion, mature judgment and tact in handling family businesses. His experience, skills and qualities perfectly match his passion for Change Management.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Family owned SME sectors face immense competition from the larger players due to varied reasons such as capacities leading to economies of scale, brand image, distribution network and so on.
They are well aware of the challenges and the applicable solutions for change, but the reluctance to change is the challenge.
Reluctance emerges from the following known facts:Family businesses face the above dilemmas as a routine and finally remain content with the natural growth. The dream of transforming into a professionally run organization remains distant but not unachievable. Only 10-15% of the family owned businesses are successfully passed on to the next generation.
If not, then they may even continue as going concerns, but by being taken over by bigger brands or finally face closure after succumbing to intense competitive pressure.
Family owned businesses have great potential for wealth creation if:AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
Lean though started off in the manufacturing industry, is applicable and must in the service sector also.
Lean without application in the service sector is incomplete. Manufacturing produces products and business processes produce services. Both manufacturing and services are mutually exclusive yet dependent to enhance customer satisfaction.
Productivity, Quality, Cost and Delivery – the key indicators for growth, profitability and customer satisfaction can only be achieved and sustained if Lean Pillars and tools are applied in business processes as well.
5S, VSM, Cellular, Lean Layouts with Flow, Office TPM, TQM, Six Sigma, Heijunka, etc. are the major tools which can be applied, monitored and improved as per PDCA and SDCA cycle.
Not only application, but also the convergence of the principles and tools in synchronization in manufacturing and services is highly desirable.
The paradigm that Lean exists only for manufacturing and technical areas needs to be changed.
It is for the organization in entirety, in fact more for services as the machines have defined standard times, cycle times, which are miniscule in the total through put time.
The contribution of the business processes, due to high decision making time, immense internal documentation, bureaucratic procedures for approvals may be defined, but not standard, affecting the customer services directly or the manufacturing chain resulting in poor On Time, In full, Error free deliveries.
Lean has been successfully implemented in service sectors such as banks, healthcare, education, governments, distribution and logistics, warehousing, insurance, post, and many more.
Just as each and every body organ is important and has to be in perfect tandem with other organs, services are similar organs, which need to be perfect alignment with other organization operations.
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
SMEs are the major source for entrepreneurial skills; innovation and employment. They are the biggest contributor to any economy. After agriculture, SMEs are the second largest employer of human resources. Number of people employed in SMEs has grown to approx. 75 million at a growth rate of 5.5%. 45% of the SMEs are in rural areas while 55% of the SMEs are in urban areas.
67% of the SMEs are in manufacturing sector, 17% in service sector and 16% in repairs and automation. 30 million SMEs account for 1/6th of India’s GDP (17%). The SME business opportunity in India can be seen in possibly every sector - financial services, telecom, education, automobiles, media, food, real estate and so on. This makes India a hub for best small business opportunity in various segments. SMEs make up for 80-90% of all enterprises and generate about 50-80% of total employment in developing Asia.
But the irony is that they work as local suppliers only and don’t have a competitive edge in terms of productivity and quality due to lack of lean manufacturing excellence.
The various types of SMEs in manufacturing are textiles, machinery, plastics, auto components, rubber, foundries, paints, electrical, automation etc.
SMEs contribute to 40% of total exports; form 95% of the total industrial units and manufacture 8000 quality products for Indian and international markets. SMEs in India are also facing a number of problems like sub-optimal scale of operation, technological obsolescence, supply chain inefficiencies, increasing domestic & global competition, working capital shortages, not getting trade receivables from large and multinational companies on time, insufficient skilled manpower and change in manufacturing strategies and turbulent and uncertain market scenario. There lies a huge opportunity in terms of technological advancement, financial assistance, manufacturing competitiveness, innovation, infrastructure development etc.
To be competitive in the international markets and survive on long-term basis, it is important for SMEs to create a culture of a lean learning organization by following the practices of lean manufacturing – operations excellence and business excellence supported by lean six sigma. This will enable the SMEs to become world class in terms of quality, cost and delivery and retain their presence in this competitive environment and eventually grow and sustain their profitability.
Lean in SMEs is not a requirement, but a necessity!!
“CONSULTING AND COUNSELING” - THE GREAT TWINS“How will change sustain”? “Which tools focus on sustenance”? – These challenges are the common questions raised within each and every organization before the start of the lean journey.
Though most consultants and organizations believe that continual stringent application and review is key factor, it is not the only factor.
Change Management, especially while using LEAN, the latest competitive tool for survival in the red oceans needs to focus on two dimensions simultaneously; Consulting and Counseling.
Process changes are must for end results and along with that, the mindset changes are equally responsible for ensuring sustenance of the changes.
Consulting and Counseling are twins having the same biological mother – Change Management.
Genes:
DNA
Approach:
AVCI specializes in Operations Excellence, Team Excellence and Business Excellence for Adding Value in Totality!! Thereby turning around organizations for growth and sustained profitability. AVCI has assisted more than 250 organizations over the last decade. ADDVALUE has been awarded the Best Performing Consulting Organization – 2014. For more details, please log on to www.avci-lean.com.
