We look at Lean and the tremendous impact it can have on resource productivity.

Resource productivity is a rapidly evolving discipline, and new technologies and approaches are emerging at every turn. If these new solutions are deployed without a comprehensive understanding of where the greatest opportunities lie, however, results often fall short of expectations.

Installation of variable frequency drives (VFDs) is a prime example. VFDs control the speed of an AC (alternating current) motor by varying the frequency of the power source. Attaching a VFD to a pump in order to vary its speed is a common practice. However, if the need is to slow the pump speed because too much water is moving through all points in the process, installing a VFD may be overkill. The device adds maximum value when different water flows are needed at varying points in the process. If the water flow need is static, a smaller pump may provide a much better return on investment. Lean thinking is a powerful tool for addressing this kind of problem.

A lean lens on resource losses

Applying lean principles to resource productivity is based on identifying the three primary sources of loss that erode operational and energy performance: inflexibility, variability, and waste (Exhibit 1). Each of these impinges on the system’s ability to deliver the desired quality or service level at an optimal cost. By applying the three sources of loss from lean to resource productivity, companies can create a systemic view of what causes material, water, or energy loss; how and where. That understanding, in turn, helps pinpoint where solutions will have the greatest impact.

Further reading: https://www.mckinsey.com/business-functions/operations/our-insights/resource-productive-operations-think-lean