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Trimming the Fat: Keeping Your Company Lean

8/27/2010 at 10:28 am by

Trimming the Fat: Keeping Your Business LeanThis year, everybody wants to be lean.

No, we’re not talking about the latest diet craze or some new weight loss pill. We’re talking about lean manufacturing – doing more with less.

Lean businesses do more with less space, less time, less money and fewer employees. But getting your business lean – and keeping it that way – isn’t as simple as a gym membership and fewer candy bars. Making your business as lean as it can be involves working hard to eliminate all the excess and unnecessary processes that have stuck around just because you never thought to get rid of them. To borrow a phrase novelists use, it may involve killing a few of your darlings. But in the end, a lean business is a more profitable business.

What’s more, a lean manufacturing process can lead to a higher quality final product. In a lean manufacturing system, products are examined for defects or imperfections immediately and replaced or discarded within seconds if they do not meet company standards. The production line is also halted to identify and remedy the source of the defect. While it may seem like a lot of work, in the long run, this instantaneous fix saves a lot of trouble.

A lean business strategy can be achieved by reevaluating supply chains and reordering business steps to create the most efficient process possible. An ERP system is a great compliment to a lean manufacturing strategy because the two will work in conjunction to keep your business streamlined and make sure each department is in sync not just with the other departments, but with the corporation as a whole.

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The Sage ERP team report on various topics related to ERP and business management.

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