In this era of cost-cutting, organizations will need to be increasingly innovative to find more savings. One simple change, adopted by a  Fort Mill U.S. Foodservice distribution center, saved the organization $8,000. The U.S. Foodservice began using industrial sized, reusable rubber bands to contain shipments instead of shrink-wrap, subsequently reducing waste. To identify financially rewarding changes such as this one, employees need to be involved and organizations need to have an explicit focus on waste reduction.

Adopting Lean methodology is one way organizations eliminate waste, ensure quality and embrace employee involvement. Although this methodology has traditionally been applied to manufacturing, some organizations have successfully applied it to human resource processes. The principles, as outlined on the Canadian Government of Alberta website, can be adapted to increase the efficiency of talent management processes.

Lean principles revolve around a focus on customer demand and customer need while eliminating waste. The methodology espouses a dedication to “continuous improvement.” Lean methodology targets seven types of potential waste: “over production, unnecessary stock, inefficient transportation, unnecessary motion, waiting times, rejects and defects, inappropriate processing.” One example of the use of Lean methodology by Human Resources can be found in a Human Resource Executive Online article by Andrew McIlvaine.

Do you have any experience applying Lean methodology to human resource functions?

References:

Environmental Leader. “Switch to Rubber Bands Saves U.S. Foodservice 11% in Shrink Wrap.” [www.environmentalleader.com]. August 18, 2009.

Government of Alberta. “Lean Manufacturing.” [www.albertacanada.com]. January 15, 2008.

McIlvaine, Andrew R. “’Lean’ and Mean.” Human Resource Executive Online [www.hrexecutive.com]. March 16, 2009.