Category Archives: Administration

How to Determine Your Lot Size – Part 2

A good lot size has a significant impact on the performance of the system. In this second post, I look at the influence of the machine batch size on the lot size. I also briefly go into the lot sizes for the processing industry, and also  administrative processes. In my next and last post I will look at how to manage different lot sizes in different parts of the value stream. Continue reading How to Determine Your Lot Size – Part 2

The Challenges of Lean Administration

More WorkLean started with manufacturing, but since then has moved in many other areas of the economy, from lean banking to lean healthcare. One major part of modern economy is administrative processes, which includes things like making offers, procurement, accounting, engineering, research, and many others. By some estimates, more than half of the cost of producing companies are in administration. Up to 80 percent of the lead time is due to administration. A lot of the principles behind lean can be used in administration. However, there are also some unique challenges that are less prominent in manufacturing. Let’s have a look. Continue reading The Challenges of Lean Administration