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Business Finance Consulting

Lean Finance – Continuous Improvement

After having in previous blogs highlighted the first two principles of Lean as they relate to the Finance function, Adding Value and Reducing Waste, let’s talk about the third and final principle of Lean: Continuous Improvement.

Broadly speaking, Lean projects need to commence with a Lean Analysis to assess the existing situation and determine the scope of the Lean Transformation project. From this, the Lean Transformation project can be further developed and implemented, focussing on opportunities to add value and reduce waste in order to optimise outcomes for the company (i.e. including the Fat Profits referred to in our book ‘Lean Business,Fat Profits’).

However Lean does not end when the Lean Transformation project is completed. Lean is a mindset, continually looking for incremental improvements.
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Business Process Improvement

Process Improvement – Mapping

In order to improve any operational process and provide greater customer value, business processes first needs to be understood, and the easiest way to understand a process is by drawing or mapping it. Mapping forms the basis of all process improvement as it shows:

  • The current state i.e. “this is how we presently do it”
  • The link between information and material flow
  • Mapping visually describes your facility…..a picture is worth a thousand words
  • Highlights process steps and identifies areas of waste. Remember the general rule: “The more process steps, the more waste a process has”
  • Supports team-based improvement
  • Provides a model and common language for Continuous Improvement (CI).

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