Many things we do every day are actually repetitive processes. Your first cup of coffee, going through your emails and calendar, etc. We appreciate processes because they make our world more manageable. However, a process that you perform daily or weekly is not inherently efficient. Therefore, “Lean” is a philosophy/methodology that helps focus on the value of a process. Lean encompasses five basic principles:

1: Deliver what has value to the customer (which can also be an internal customer).

2: Determine which activities add value and eliminate the rest.

3: Ensure flow in the value chain.

4: Pull products through the chain.

5: Strive for perfection.

When looking at processes, it’s a good idea to start with the output (results) of a process. Once you have determined the output you want to deliver to your customers, you can also determine the input required for that output. Between the input and output lies your process (throughput). In this process, you should only see steps that help add value to transform inputs into outputs.

Every output should be useful to a (internal) customer. For example, if a “signed quote” is the output of the sales process, it should serve as an input for a colleague in, for instance, the internal sales or planning department. That colleague may have specific requirements for the input you transfer. It should specify the conditions for product delivery, but often this is not entirely clear, leading to disputes with the customer later on. Delivering the quote with the requested information is your responsibility as a salesperson. Outputs and responsibilities are thus interconnected. To fulfill a responsibility, you also need the authority. For example, you need the freedom to negotiate and determine a price. This is where things often go wrong. Additionally, you require competencies, such as sufficient product knowledge.

If we want to create a process model, we need to ensure that these aspects are part of the model. Thus, we need a model with Inputs, Throughput (the process steps), and Outputs. Related to the outputs, there are concrete deliverables (a quote, a drawing, etc.) with their associated authorities (a rights and roles matrix for applications, a RASCI matrix, etc.) and competencies.

For the ideal process, it’s also important to evaluate if process steps truly add value. The other activities can be eliminated. Waste (unnecessary activities) can be categorized using the acronym TIMWOODS:

Transport: Unnecessary transportation of goods.

Inventory: (Intermediate) stock of goods or semi-finished products.

Motion: Unnecessary movement of people.

Waiting: General waiting time.

Overproduction: Producing more than necessary.

Overprocessing: Performing more activities in the process than needed.

Defects: Correcting errors in the process.

Skills: Insufficient utilization of employees’ competencies.

An example regarding inventory: We observe that lead times have become quite dynamic for many customers after Covid. If your current ERP system calculates fixed lead times in MRP, you end up with either too much or too little inventory. Thus, this process (and system) requires adjustment to address and prevent this waste.

Flow in the process means that products or services passing through an organization or chain do not encounter waiting times or encounter (intermediate) stock. This means that operations in a line should have equal durations, attention should be given to transfer moments, and everything should be done right the first time. Errors disrupt the flow, and products need to be corrected through an alternative route. The speed in a chain is determined by the slowest link, often being humans. Now, imagine redesigning the process using (software) robots. This not only allows cost savings in human labor but also enables faster customer service. By deploying robotics as early as possible in the process, employees later in the process can work on the “semi-finished products” in parallel and serve the customer more quickly. Time and efficiency gains of 80% are not uncommon in such cases.

If you want to learn more about how to model processes and translate them into efficient automation, please contact us or download our process templates.