On a continuum between simplicity and complexity, where is the right place for your business to be? In this video, Steven discusses the cost of having too much complexity and the value of having some complexity. Learn three principles for managing complexity in your organization.
- "Simplicity is the ultimate sophistication."…A profound statement from Leonardo da Vinci…that has stood the test of time.…Nowadays we would say "less is more."…If I take the position that simpler is better,…you are certainly aligned with the principles of Lean.…For one thing, complexity drives cost…within the organization.…For example, the Pareto Principle indicates…that 20% of your products generate 80% of your revenues,…so a complex product portfolio…not only drives up product cost,…but increases cost for such things…as inventory, raw materials, and packaging,…and also drives the complexity…and cost found in your customer base and your markets…and the organizational structure needed to support them.…
On the other hand, too few products in your portfolio…can mean lost opportunities and lost sales.…On a continuum between simplicity and complexity,…where's the right place for your business to be?…That's not an easy question to answer.…I turned to Michael L. George for some advice here.…He's a well-known consultant on Lean Six Sigma…
Lean concepts have been successfully applied to every aspect of doing business. In this course, learn the principles of lean and how they are used in processes, production, and services. Instructor Steven Brown also explains how lean thinking impacts the organization, from the overall business culture to day-to-day work activities.
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Cite the focus of a lean strategy.
- Explain what a “rule of complexity” is.
- Name the three key measures of inventory.
- List the 5S tools.
- Define a lean transportation system.
- Describe the characteristics of a lean purchasing organization.
- Identify the characteristics of a lean company.