Copyright © Daniel Cullinane CPA.
Daniel Cullinane CPA
25 Plaza 5 25th fl Jersey City NJ phone 732-516-1648 fax 732-516-9778
2500 Plaza 5 25th fl Jersey City NJ 07311 phone 732-516-1648 fax 732-516-9778
HOW TO CONDUCT A LEAN MANUFACTURING AUDIT
Lean manufacturing principles are based on the idea that a company is at its best when it minimizes physical waste and maximizes its available resources. Implementing lean manufacturing policies and procedures in your company is a great way to increase company productivity and operational efficiency, as well as save money. To ensure that lean practices are correctly used throughout your business, a lean audit is usually necessary. Several methods can be applied to conduct an informative lean audit.
1. Identify your objective. A lean audit should be conducted to determine if the business is properly implementing and upholding lean methodologies. This is achieved by analyzing your company's current lean processes with a goal toward recognizing opportunities to improve procedures and reduce company costs.
2. Plan for the audit. Company audits should ideally be carried out by a third party or audit team with no vested interest in the outcome of the audit. If however, the audit is performed internally by senior management, dividing the workplace into various areas can help you create a checklist of each area's required standards and potential problems.
3. Identify your company-specific scoring system. This point system should be tailored to each business, using key lean components like inventory, supply chain management and procedure standardization. The outcome of your audit can be negatively impacted by the lack of a point system, differing auditing methods, and selective employee interviews.
4. Apply lean standards to the audit procedure. Depending on your specific company's operations, this may include making sure that labels and warnings are visible or that tools are left in designated areas, among others. Performing the audit in a systematic fashion -- usually by workplace section -- will help you cover all bases and obtain the most accurate audit report.
5. Follow up after the audit. The best way to ensure that your business is effectively utilizing lean methodology is to follow up with each area manager after the audit. The includes making sure that any relevant issues have been addressed and noting what standards still need to be met. A weekly self-checking audit or monthly audit carried out by a supervisor can help your company meet and maintain lean standards in the future.
Internal audits should only be conducted by senior-level management with no direct involvement in the audit area workplace.
Lean auditing software can be used to streamline the auditing process and ensure unbiased results.
Every effort should be made to review each area's lean standards without omitting positive or negative results