Lean Management
LEAN IN PRODUCTION AND SERVICE The word term ‘’LEAN’’ was put together to describe and personalize Toyota’s business activity during the 1980’s by a research team headed by one Jim Womack, Ph.D., at MIT’s international Motor vehicle programme. According to them, the concept of ‘LEAN’ was fathered by Taiichi Ohno of Toyota. Ohno developed a contrasting approach to the mass production methods of US car firms through necessity. Later, in 1996, Jim Womack’s team espoused the five lean principles and also lean tools that they believed were the secret for Toyota’s success.
According to Oxford dictionaries, Lean means efficient and with no wastage. The core idea of lean is to minimize wastage and at the same time maximize customer value. Customer value is of utmost importance to a lean organization and the organization will focus on its key processes to continue increasing the value. Ultimately, the goal is to provide the perfect value creation process that has no wastage.
To accomplish this value creation and zero wastage goal, lean thinking changes the focus of a management from optimizing separate technologies, assets and vertical departments to optimize the flow of products and services through entire value streams that flow horizontally across technologies, assets and department customers.
By reducing or eliminating waste along the entire stream of value, we will be able to come up with processes that would need less effort, less space, reduced capitals and reduced time in order to make products and services at prices far less than normal and with fewer defects. Organizations will be able to be responsive towards changing customer needs and wants with a lot of variety, higher quality, reduced costs and with less throughput times. Information management will also be much simpler and much more accurate.
Lean management is a concept which can be applied in every business and every process. It should not be compared with a cost reduction program or tactic
According to Oxford dictionaries, Lean means efficient and with no wastage. The core idea of lean is to minimize wastage and at the same time maximize customer value. Customer value is of utmost importance to a lean organization and the organization will focus on its key processes to continue increasing the value. Ultimately, the goal is to provide the perfect value creation process that has no wastage.
To accomplish this value creation and zero wastage goal, lean thinking changes the focus of a management from optimizing separate technologies, assets and vertical departments to optimize the flow of products and services through entire value streams that flow horizontally across technologies, assets and department customers.
By reducing or eliminating waste along the entire stream of value, we will be able to come up with processes that would need less effort, less space, reduced capitals and reduced time in order to make products and services at prices far less than normal and with fewer defects. Organizations will be able to be responsive towards changing customer needs and wants with a lot of variety, higher quality, reduced costs and with less throughput times. Information management will also be much simpler and much more accurate.
Lean management is a concept which can be applied in every business and every process. It should not be compared with a cost reduction program or tactic
Bibliography: Translated from Japanese original, first published 1978 David McPhetrige, 2009, An industry consultant provides guidance on implementing a basic Lean plan Hanna.J, 2007, Bringing ‘Lean’ Principles to Service Industry. Harvard Business School (Online) Available at: http://hbswk.hbs.edu/item/5741.html (Accessed on 21st October 2009)