"94% of errors in a process are caused by system flaws," noted Luis Miravitlles, MBA, during the conference "Lean Management: Optimizing the Supply Chain."
Using case studies and practical examples, Miravitlles—who works as an operations consultant—explained what lean management is and emphasized the importance of implementing an optimal management system for the supply chain.
The event took place on Tuesday, August 16, 2016, and was organized by the Graduate School of the Faculty of Administration and Social Sciences at Universidad ORT Uruguay as part of the Management and Business Lecture Series.
Lean management: its unique characteristics and value
As explained by Miravitlles, a professor in the Department of Management, Operations, and Technology at IE Business School,lean managementinvolves developing processes that are "highly efficient" and involve "no waste," since waste "is the flip side of value."
Unnecessary transportation, movement, or storage; overproduction; poor work quality; idle time; failure to set proper priorities; and failure to make the most of employees’ talents: these are some examples of waste, according to the principles of lean management.
This management model has its roots in the operations management system popularized by the Toyota Motor Corporation. Today, it is also successfully applied to the service industry, office work, and finance and sales departments, among other areas.
The goal of lean management is to examine all the activities carried out within a company and identify which ones add value. Those that do not should be minimized as much as possible and, if possible, eliminated.
How to Implement Lean Management
"Statistics show that only 6% of errors that occur in a process are caused by personnel. The other 94% are caused by system flaws that lead workers to make mistakes," the speaker noted. "What needs to be fixed is the process," he added.
He also pointed out that there are three aspects of any business that always need improvement: service, cost, and quality. To achieve this, there are a number of methodologies and tools: lean management is one of them. It aims to eliminate waste—also known as “muda”—downtime, and empty, unnecessary spaces, in order to organize a workflow that operates in an organized and structured manner, where no time is wasted.
Constant attention, pragmatism, and a comprehensive, holistic approach, as well as ongoing and continuous improvement: these are some of the requirements for implementing lean management. It is also essential to analyze the process and observe how work is carried out, as well as to time the duration of specific activities.
Despite all its benefits, this way of working requires a lot of effort. "In the end, it's very difficult to do and very difficult to implement," he acknowledged.
Leadership and perseverance: the keys to lean management
"If you want to implement lean management principles in your organization, leadership is essential," Miravitlles stated. If that element isn't in place, the ideas end up becoming "projects that come and go."
While some people view it as a "project," in the engineer's words, lean management is "a different way of working." "It's not something you have to do on top of everything else; it's about changing the mindset of the people who lead and manage organizations and processes, so they can try to do things differently," he explained.
He also said that it’s important to have the right technique, to observe, analyze, practice, identify flaws, and work on eliminating them. However, it’s normal to wonder to what extent it’s possible to pursue perfection. To answer that question, he recounted the story of a friend who plays basketball and, in order to achieve a high three-point shooting percentage, often stays after every practice to shoot more than 1,000 times at the basket. “Eventually, they go in,” he said.
Although "you can't reach the moon on the first day," in his opinion, "it's important to find a rhythm where you're always improving."
A success story: Benihana Restaurant
Miravitlles shared with the audience a practical and successful example of waste reduction: the Japanese restaurant Benihana. There are no waiters there; instead, there are multiple open-kitchen stations where a chef prepares the meal right in front of the diners. It is known for its short and simple menu.
In addition, the ingredients are brought right to the chef, so he doesn’t have to leave his station, which means he’s constantly adding value. On top of that, the tables are always full and the show lasts no more than 30 minutes, so table turnover is high.
According to the consultant, unlike traditional restaurants, Benihana has no "downtime." There are no unproductive movements or idle time, for example.
"They're cooking and serving you at the same time. You sit down, eat, watch the show, and leave," he explained. "It's the restaurant with the best value for money in the world," he concluded.
Video of the event:
https://youtu.be/Y7O-mAifJ1o
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