Eliminating Waste From Service Industries

Lean manufacturing is a production method that has been used to great effect in eliminating waste and improving customer satisfaction in the auto manufacturing industry.  The concepts employed in this method can also be applied to other areas of commerce, including the service industry.

 

Lean manufacturing defines waste as anything that does not add value to the customer. Waste adds time and cost to manufacturing and service, and its elimination is beneficial to these enterprises.

 

The lean method identifies several key areas of waste, which can be applied in service organizations as well as manufacturing.

 

Some of the key areas include:

 

-          Overproduction.  Doing more than is needed or doing it before it is required. Some examples may include bad data entry, errors and mistakes that result in more work, and processing items before necessary.

-          Waste of inventory. This may include having excess inventory, overstocking supplies, etc.

-          Waste of over-processing. Having too much paperwork or bureaucracy involved in a process is a good example, as well as requiring too many approvals for a process.

-          Waste of waiting.  Requiring employees, customers or vendors to wait excessively; this reduces operational efficiency. Long waits at doctor’s offices, long lines at grocery stores and similar situations are good examples.

-          Waste of motion.  Disorganization of offices or areas can result in employees spending too much time and effort that can be better spent elsewhere.

 

By identifying these and other areas of lean waste, service industry managers can identify inefficiencies in their own operations and root them out, allowing them to offer better service to their customers at a lower cost.

 

For service industry managers interested in applying lean manufacturing concepts to their businesses, there are plenty of training videos, books and other materials available from a variety of sources to help.