Posts Tagged ‘lean’

Business Improvement Begins Internally

Wednesday, May 18th, 2016
Lean Six Sigma - Ohio CPA Firm

Chris Liebtag recently appeared on an episode of unsuitable on Rea Radio, a weekly podcast produced by Rea & Associates. Chris, and host Mark Van Benschoten, discuss Lean Six Sigma and why all businesses can benefit by implementing the discipline. Click here to listen to the show!

When you think about the utility of Lean Six Sigma, you are likely thinking about its usage in the manufacturing industry. But did you know that business owners across a wide range of industries can find value in Lean Six Sigma as well? The usefulness of this practice spans far beyond a manager’s ability to improve efficiency on the production room floor. In fact, this discipline has yielded significant results in a variety of businesses spanning all types industries with varying product and service offerings.

Start listening and Discover The Hidden Factory of Lean Business Building on unsuitable on Rea Radio

Why You Should Run A Lean Office

Like most businesses (if not all businesses), one of the basic tenants of Lean Six Sigma is to understand and drive client value. Using this fact as a starting point, the Lean Six Sigma discipline is then used to identify areas of improvement in your organization while implementing effective, more efficient, solutions.

Even though a manufacturing company and a doctor’s office appear to be fundamentally different, both organizations can find significant value through the implementation of Lean Six Sigma because they share the same basic tenant – to understand and drive client value. From a healthcare perspective we know that patients value shorter wait times and improved professional interaction. Using Lean Six Sigma, we would review the office’s processes and determine how to make them more effective in the interest of driving client value. One solution might be to improve the general organization of the office. Doing so could feasibly result in greater efficiency among the staff, shorter wait times and longer, more meaningful interactions with patients.

This same scenario can play out in all offices where client value is considered a priority.

Better Quality Begins At The Beginning

When you have two people doing the same job without any formal processes, they’re bound to produce different results. Unfortunately, lack of consistency negatively impacts the company’s overall ability to produce quality products and/or services.

Companies and organizations that implement Lean Six Sigma, go through the exercise of deconstructing organizational processes to determine best practices, implement changes and establish quality control measures throughout every step of the process – not just at the end. Making quality a priority early in the process will consistently produce higher quality products and services.

Just Getting Started

Obviously we are just scratching the service of what Lean Six Sigma can do. I recently had the opportunity to talk about the effectiveness of Lean Six Sigma on an episode of unsuitable on Rea Radio with Mark Van Benschoten where I was able to talk a little more about the practice. You can go to www.reacpa.com/podcast or click the play button on the media player below to listen to our conversation. You can also email Rea & Associates if you have questions this topic.

By Chris Liebtag, LSSBB, PMP (Dublin office)

Check out these articles for even more tips to help you move the needle:

Your Business Could Be Doing Better

Turning The Tables On Ourselves: How We Used Lean Six Sigma

Gaining Efficiencies In Service With Lean Six Sigma

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Your Business Could Be Doing Better

Thursday, November 5th, 2015

 

Lean Six Sigma - Manufacturing CPA Firm

Kyle Stemple discusses Lean with Mark Van Benschoten on Episode 8 of Unsuitable on Rea Radio. You can find all our podcasts at www.reacpa.com/podcast.

Those in the manufacturing industry are familiar with the significance of implementing tactics to increase efficiency and effectiveness throughout the organization. But did you know that these same concepts can benefit businesses outside of the manufacturing realm?

Listen to Episode 8 of Unsuitable on Rea Radio: Don’t settle for a plate of spaghetti

Consider the five key principles identified in Jim Womack’s book, The Machine that Changed the World and think about how they relate to your company.

  1. The customer defines value.
  2. The company must focus on eliminating waste. (Waste is defined as any activity that doesn’t add value to the company.)
  3. The customer establishes pull.
  4. The company must involve and empower people who add value.
  5. Total cost is the ultimate performance metric.

Now, reflecting on these principles, how can you optimize performance of your people while optimizing the customer experience?

Focus On The Big Picture

Once you've decided to embrace Lean in your business, you need to step back and map out your existing processes. If, at the end of this mapping exercise, the lines that guide you through your processes begin to look like a plate of spaghetti, you've got a problem.

Once you’ve decided to embrace Lean in your business, you need to step back and map out your existing processes. If, at the end of this mapping exercise, the lines that guide you through your processes begin to look like a plate of spaghetti, you’ve got a problem.

You want to be successful. To do that, you must have a clear understanding of what “success” looks like to you. A good way to do this is to identify challenges (present and future) that may hinder you from realizing your maximum potential. Once you know what you are looking for, you can generate proactive solutions – ultimately increasing your efficiency.

Think Lean

Everything we do, whether it's in our personal life, in our business life, nonprofit, for-profit ... everything we do - is all determined by processes.

Everything we do, whether it’s in our personal life, in our business life, nonprofit, for-profit … everything we do – is all determined by processes.

You may consider Lean Six Sigma to be a tactic solely for manufacturing companies. But Lean can actually be very valuable to all types of companies. But first, you have to understand the Lean concept.  First, Lean is not “headcount reduction” and thinking of it as such could result in greater long-term problems. When you decide to embrace a Lean approach to business, you should actually be committed to:

  1. Understanding your customers better and making sure the processes your business adopts meets (and exceeds) their expectations.
  2. Harnessing your employees’ knowledge to better serve your customers.
  3. Continuous improvement while building greater business capacity.

Things Are not Always What They Seem

When it looks like you've solved your efficiency problems, step back and reassess. Never forget, Lean is about embracing continuous improvement. If you really start digging and asking the right questions, you are going to get answers - and your businesses processes will continue to improve.

When it looks like you’ve solved your efficiency problems, step back and reassess. Never forget, Lean is about embracing continuous improvement. If you really start digging and asking the right questions, you are going to get answers – and your business’s processes will continue to improve.

When you embark on your Lean journey, financial struggles early on are normal. It can be scary at first, but if you are persistent, you will ultimately realize positive results. Think about it this way, traditional absorption accounting allocates overhead to inventory. As inventories are reduced in the interest of becoming lean, prior period costs are expensed in the current period. When your finance experts and executive leadership team aren’t aware of this transitional lag, they may mistakenly associate Lean with declining profits. Instead, keep going – pretty soon you should be able to notice improvements to your company’s cash flow.

Take The Plunge

Your Lean initiative will only be successful if management commits to its success. Therefore, they must fully commit to the concept while taking the time to become familiar with the benefits of Lean. Sure, dipping your toe in and testing the waters may seem like a safe bet, but unless you take the full plunge, you will never realize your company’s full potential and world-class results.

Lean continues to evolve from a manufacturing concept to one likened to secret weapon used to boost the effectiveness of office and administrative processes (and so much more). In this era when continued improvement is idealized, Lean has emerged as the answer. Could your company benefit by becoming Lean? Listen to this 17-minute podcast to find out.

By Kyle Stemple, CPA, CGMA, Lean Six Sigma Green Belt (New Philadelphia office)

Kyle Stemple on Rea Radio - Lean for BusinessLearn more about Lean and how it can transform your business. Listen to Don’t Settle For A Plate Of Spaghetti on Unsuitable on Rea Radio at www.rea.com/podcast or on iTunes or SoundCloud.

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Did Your Company Miss Out on the Ohio Incumbent Workforce Training Voucher Program?

Tuesday, February 12th, 2013

Don’t Give Up Yet!

Applications for Ohio’s Incumbent Workforce Training Voucher Program were accepted on Monday, January 7, 2013. By the end of the day, Ohio officials said they received applications with requests exceeding the $20 million allotted for fiscal 2013. Funds were awarded on a first-come, first-served basis, so if you weren’t one of the first, you might have missed out on this opportunity for your company. But don’t give up yet…

There will be another opportunity for you to secure your piece of the pie as a second round of applications, for fiscal 2014, will be accepted after June 30 for an additional $30 million. While the exact date that applications will be accepted are not yet known, we do know what the applications will look like, how the application process will work and what information you will need to have ready to submit your application.

Why wait? Begin pulling your information together now so that you will be ready the second time around. (more…)

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Can I Get a Rebate for Training Through the Ohio Incumbent Workforce Training Voucher Program?

Thursday, January 3rd, 2013

You may have thought that you’ve opened all your gifts, but the state of Ohio has one more for you – and it’s a good one.  Launching next week, the Ohio Incumbent Workforce Training Voucher Program [http://development.ohio.gov/bs/bs_wtvp.htm] will provide $20 million in cash to businesses that provide certain training for their employees.  If your business is in one of the program’s targeted industries, you could qualify for up to $4,000 per employee.  (more…)

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