Why the need for Lean Management?
Waste is worse than loss. The time is coming when every person who lays claim to ability will keep the question of waste before him constantly. The scope of thrift is limitless. ~Thomas A. EdisonLean means "manufacturing without waste." Waste ("muda" in Japanese) has many forms like material, time, idle equipment, and inventory. Most companies waste 70%-90% of their available resources. Lean Manufacturing, thus reduces this and improves material handling, inventory, quality, scheduling, personnel and customer satisfaction. Lean production is an assembly-line methodology developed originally for Toyota and the manufacturing of automobiles. It is also known as the Toyota Production System or just-in-time production.
The Basic Principles of Lean Development- Add Nothing But Value (Eliminate Waste) - The first step in lean thinking is to understand what value is and what activities and resources are absolutely necessary to create that value.
- Center On The People Who Add Value - Almost every organization claims it’s people are important, but if they truly center on those who add value, they would be able to say that the people doing the work are the center of-
- Resources
- Information
- Process Design Authority
- Decision Making Authority
- Organizational Energy
- Flow Value From Demand (Delay Commitment) – The idea that flow should be ‘pulled’ from demand is also fundamental to lean production. ‘Pull’ means that nothing is done unless and until a downstream process requires it. The effect of ‘pull’ is that production is not based on forecast; commitment is delayed until demand is present to indicate what the customer really wants.
- Optimize Across Organizations - Quite often, the biggest barrier to adopting lean practices is organizational. As products move from one department to another, a big gap often develops, especially if each department has its own set of performance measurements that are unrelated to the performance measurements of neighboring departments.
In order to achieve all these, Lean Management contributes a lot. It is the driving force behind lean. Let us first understand the concept of Lean Management. Lean Management is defining the purpose of the organisation in terms of customer value i.e., consumption problems of customers it is required to solve, designing and executing the right value streams and processes for achieving the purpose, and aligning the people touching the process and building problem solving capability in them.The synergy between Lean and Six sigma is very effective.
Lean services are not meant for a specific activity, it is applicable in any sphere of human activity, and a variety of industries – small and large from Retail, Office and Service industries have begun to appreciate the benefits of Lean Management and are transforming themselves. Many companies from Banking & Financial Services, Healthcare, Retail, Hospitality, BPOs, Call Centre & ITES and Software Industries have already embarked on a Lean Programme or are evaluating and seriously considering one. This is apart from Manufacturing Industries realising that Lean Management is more than applying tools and techniques in the factory operations.
There are five Lean tools, which are :-
Lean services are not meant for a specific activity, it is applicable in any sphere of human activity, and a variety of industries – small and large from Retail, Office and Service industries have begun to appreciate the benefits of Lean Management and are transforming themselves. Many companies from Banking & Financial Services, Healthcare, Retail, Hospitality, BPOs, Call Centre & ITES and Software Industries have already embarked on a Lean Programme or are evaluating and seriously considering one. This is apart from Manufacturing Industries realising that Lean Management is more than applying tools and techniques in the factory operations.
There are five Lean tools, which are :-
- Value Stream Mapping
- Takt Time
- Ishikawa (Cause-and-Effect) Diagram and 5 Whys
- Heijunka (Load Balancing)
- Poka Yoke (Mistake Proofing)
“We are what we repeatedly do. Excellence, then, is not an act, but habit.” – Aristotle
Lean Management, thus helps organizations in this regard i.e to achieve excellence with continuous improvements and elimination of wastes.
Lean Management, thus helps organizations in this regard i.e to achieve excellence with continuous improvements and elimination of wastes.
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