The primary function of a business is to exchange goods and services for money in order to generate profit.
Within this process, the two main cost areas stem from both raw materials and labour. Through price negotiations, a business can reduce raw material costs (along with overheads) where possible, but since every employee represents a substantial amount of money, labour also needs to be minimised if overall costs are to be minimised.
So, how many people should you employ? And with what skills? The following case study demonstrates how applying Lean can answer these questions.