Conestoga news

January 27, 2011 9:36 AM

Lean Enterprise

What’s in it for you and your organization?

With today’s economic challenges, increased competition for shrinking markets and foreign currency swings; companies are under increased pressure to increase productivity, reduce costs and increase sales.

What are the benefits of being a Lean Enterprise?

Becoming a Lean Enterprise will help you do that and a lot more. Successful Lean Enterprises are successful because they have incorporated Lean concepts and practices into how they conduct all functions in the business.

Lean Enterprise looks at all of the activities below, from the first contact with a prospect to cashing the cheque in payment of goods and/or services provided. As indicated, all of these activities are inter-related and need to add value or they should not exist

Developing and maintaining a Lean Enterprise is a relentless and never ending process. Many organizations have “Done a Lean Project” and are usually disappointed with the results. That’s because they stopped. Lean is not a project it is a change in your culture now and for the future.

What are the benefits of being a Lean Enterprise?

Lean is not a cost cutting exercise (not re-engineering). It is a growth opportunity that accumulates the reduced costs and delivers them to the bottom-line through elimination of waste for which the customer does not wish to pay


Typical Result


0% to 70% increase

Business Process Transaction Cycle Time

50% to 90% reduction

Manufacturing/Service Cycle Time

0% to 95% reduction


40% to 80% reduction

Manufacturing/Operations Floor space/Office Area

30% to 60% reduction


Typical Result


25% to 60% improvement

New Product/Service Development Lead-time

0% to 50% improvement

Operating Costs

15% to 25% reduction

Cost of Poor Quality

30% to 50% reduction


Three short term advantages of being a Lean Enterprise:

  1. Improved Profitability
  2. Enhanced Cash Flow
  3. Increased Liquidity

These 3 short term advantages typically start to become evident within 8 to 16 weeks and are sustainable within a Lean Enterprise culture.

Three medium term advantages of being a Lean Enterprise:

  1. Greater customer satisfaction
  2. Greater employee satisfaction (and employee retention)
  3. More customers & more business from existing customers

These 3 medium term advantages should start to become evident within 16 to 24 weeks and are also sustainable with a Lean Enterprise culture.

Latest US Statistics show that productivity in the US has gone up during the recent economic turmoil. Expressed in 2010 dollars, the average American factory worker makes $300,000 worth of things a year. Canadian productivity generally is 75-80% of the US worker representing $225,000 - $240,000 revenue per employee.

Richard P Shaw “Canada’s Lean Enterprise Guru” is a Certified Management Consultant with over 20 years of direct senior executive experience and 20 years as President of EnPower Group specializing in Strategic Planning, Lean Enterprise and Maximizing Your Exit Strategy.

Conestoga College Corporate Training and Enpower have partnered to bring you the consulting and training services needed to support your Lean Enterprise!