LEAN MANAGEMENT

Lean is the idea of efficient manufacturing/operations that was raised out of the Toyota Production System Around 70 years ago. Lean Management is a standardized method aimed at improving a company’s performance and, more specifically, profitability and the quality of its output.

It is based on the philosophy of defining value from the customer’s viewpoint and continually improving the way in which value is delivered, by eliminating every use of resources that doesn't contribute to the value goal. It helps organizations create the desired value with less work.

Currently, Lean management is a concept that is widely adopted across various industries.

5 principles of lean management

Lean management incorporates five guiding principles that are used by managers within an organization for improving workplace efficiency. The five principles are:

1. Define value
2. Value stream mapping
3. Create a continuous workflow
4. Establish a pull system
5. Pursuit perfection through continuous improvement




1. Define value

Lean teams constantly review their product and service from the eyes of the customer.  It's highly important to add value define by its customer’s needs.  The value lies within the problem you are trying to resolve for the customer. More specifically, the product must be a part of the solution that the customer will be ready to pay for. The other process or activity that doesn’t bring value to the end product is considered waste.

So you first need to identify the value you want to deliver and then proceed to the next step.    

2. Value stream mapping

The next step is about identifying and mapping the value stream. During this step, the aim is to use the customer’s value as a reference point and recognize all the activities that contribute to those values. Activities that don't add value to the customer are considered waste. The waste can be broken into two categories: non-valued added but necessary and non-value added & unnecessary. Unnecessary waste should be eliminated while necessary waste should be reduced as much as possible. By eliminating and reducing both types of waste, you can ensure that customers are getting exactly what they want while at the same time reducing the cost of producing that product or service.


3. Create a continuous workflow

After you mastered your value stream, you need to make sure that each team's workflow remains smooth. Creating flow by Breaking the overall work process into a set of smaller parts and analyzing each part within the process, finding ways to maximize efficiencies, and reducing waste. Lean teams optimize flow in all aspects of the business and prevent any interruptions or bottlenecks that will occur with cross-functional teamwork.

4. Establish a pull system

Having a smooth workflow assurance that your teams can deliver the work process much faster with less effort. The concept of the pull system helps to reduce the cost, space, time, and resources in inventory and storage. In other words, a pull-based system allows for Just-in-time delivery and production where products are created at the time that they are needed and in exactly the quantities needed. Pull-based systems are always created from the requirement of the end customers.

5. Pursuit perfection through continuous improvement

The last principle continuous improvement which is also called kaizen is that the most important step in the lean management method. It provides a framework for creating an efficient and effective organization. Lean allows managers to get efficiencies in their organization and deliver better value to customers. The lean management system isn't perfect, therefore, issues may occur within any of the other four steps. Ensuring all employees contribute to continuous improvement whenever problems emerge. it helps to develop continuous improvement culture within the organization.


By practicing all 5 principles, an organization can remain competitive, increase the value delivered to the customers, decrease the cost of doing business, and increase its profitability.


Read More : 

5S System (Lean manufacturing Methodology)

Everything you need to Know about Quality Management

 

The advantages of Lean Management

There are significant benefits for managers in implementing Lean Management methods:

1. By applying the Lean methodology, you can reduce waste. As a result, your team will focus on the value-adding activities.

2. Employees who focus on creating value will be more productive and efficient because they are not distracted by unclear tasks.

3. Predictable delivery of products and services, leading to better customer satisfaction.

As a result, your company and your staff will become much more flexible and able to respond to consumer demands a lot more quickly. The principles of Lean Management will enable you to create a stable production system, which will improve the overall performance of your company.

Implementing Lean requires a long-term perspective. It won’t happen overnight but can be achieved by a rigorous feedback cycle of constant improvement. The goal is to reach zero waste in the company and thus achieve maximum customer value.