Today’s episode takes you one step further than episode 155, about how lean systems approach can improve your business operations and reduce costs with contractor examples.
The main point of this episode is to provide insights on the why and what behind a business system so you can be a better boss, increase profits, reduce overwhelm, and get the results you want.
Scott approaches the topic knowing both the theory and the practice of systems to provide clarity to move forward and the confidence that you are taking the right steps in creating new systems.
Link to Episode 155 ‘Business Systems are Simpler Than You Think’
Show Notes
Business systems help owners be a better boss, increase profits, reduce overwhelm, and get the results they want.
Lean systems are in the Value Loop part of the Arise2Live’s Profitfloop systems. Cost savings and higher productivity lead to a improved Financial Loop.
Where Lean System Comes From
- Developed at Toyota by Taiichi Ohno and his team in the 1960’s and improved upon since then.
- Addressed competitive realities of Toyota at the time, namely low(er) production and less resources than competitors.
- Originally developed in a manufacturing setting.
Three Key Principles of Lean Systems
- Muda = Waste. Anything that does not contribute value to the product is viewed as waste.
- Utilize full capacity of people and suppliers.
- Engage in continuous process improvements (CPI)
- Improving your business systems is key to growth and smooth operations.
- A business system is a collection of tasks that is intentional and predefined to get the repeatable results you desire and to make life easier.
- Only use business systems appropriate for the company maturity stage your business is in.
“Let the flow manage the process, not the managers administer the flow.” — Taiichi Ohno
Take Action with an Ohno Circle
- Taiichi Ohno would draw a circle on the manufacturing floor and put a manager into it to observe people, equipment, and material flow for any “waste” in the system.
- A business owner can stand in one spot (an Ohno Circle) to observe how their company is operating.
- Note the quantity, quality, training needed, and time effort in your process.
- Learnings are applied to Continuous Process Improvements.
Resources
“Operation Management – Comtempary Concepts and Cases” 4th edition by Roger G. Schroeder
Link to Episode 155 ‘Business Systems are Simpler Than You Think’
Link to schedule a call with Scott
Link to Scott’s Vision Story page
#Arise2Live
