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Lean Enterprise Advantages

April 27, 2016

The lean enterprise concept helps manufacturing businesses to cope with economic challenges. Becoming a lean enterprise means that an organization streamlines its processes and aims for “performance without waste”.

The lean enterprise concept addresses the inefficiencies of traditional businesses, which often consume resources in activities that don’t produce any value to their operations.

The following are the advantages the lean enterprise concept offers organizations over both the short term and the long term.

Advantages over the short term

Greater productivity

If a company avoids wasting resources and time on non-value producing activities, productivity will improve. Focusing on only value producing activities means that every single move the company makes will be reflected in positive changes to the company’s bottom line.

Higher profits

Higher profits are enjoyed thanks to the fact that money is not wasted on unnecessary resource expenditures that don’t contribute positive benefits to the company’s bottom line.

Faster cash flow process

By streamlining the production process, the lean enterprise concept leads to speeded up profits. No time is wasted with non-value producing activities, so faster cash flow and greater liquidity is seen. This cash can be immediately reinvested into the company if desired to improve processes to an even greater extent.

Longer term advantages

Customers are more satisfied with the end product

Over time, concentrating on value added activities results in better product. Any improvements to end products are considered to add value, so these improvements are capitalized on while superfluous activities are slowly weeded out of an organization’s operations.

Employees are more satisfied in their job role

The lean enterprise concept requires more interaction from employees at every level. This typically leads to greater employee participation, satisfaction, and pride in the organization.

At Romeo RIM, we are a lean enterprise business based in Texas, specializing in long fiber technology. Being lean has provided great benefits to our business, especially in our industry. Contact us today and choose Romeo RIM as your leading choice for molding solutions!

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