Lean Management

Powerful Essays
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



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)

You May Also Find These Documents Helpful

  • Powerful Essays

    Lean Management

    • 4346 Words
    • 25 Pages

    The Impact of Lean Implementation on Operational Performance: A Study of Composite Manufacturing Companies in Malaysia 1.0 BACKGROUND INFORMATION In 2012, the Asia-Pacific region accounted for 36 per cent of the worldwide market in value for composite production and 41 per cent in volume, according to Frederique Mutel, president and chief executive officer of the JEC Group, which is the world‟s largest composite industry organization, representing, promoting and expanding the industry…

    • 4346 Words
    • 25 Pages
    Powerful Essays
  • Best Essays

    Lean Management

    • 3514 Words
    • 15 Pages

    Kollberg, B. Dahlgaard, J. J. and Brehmer, P. (2006). Measuring lean initiatives in health care services: Issues and findings, International Journal of Productivity and Performance Management. Vol. 56, no. 1, 2007, pp. 7-24. Bhasin, S, & Burcher Laureani, A., & Antony, J. (2010). Reducing employees’ turnover in transactional services. A Lean Six Sigma case study. International Journal of Productivity and Performance Management. Vol. 59, no. 7, pp. 688-700. MIT (2000) Moore, R. (2001, September)…

    • 3514 Words
    • 15 Pages
    Best Essays
  • Better Essays

    Lean Management

    • 959 Words
    • 4 Pages

    differences between lean and agile supply chain strategies? Similarities in Lean and Agile Supply Chain Strategies: In both approaches, lean practice has transformed the downstream stages of the supply chain scheduling, according to demand pull, and increasing agility mean that ultimately converting to agile as today’s requirement. Excessive stock in the supply chain and the practice of increasing batch size to create efficiencies are directly in conflict with responsiveness for both lean as well as…

    • 959 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Applying Lean Management

    • 1969 Words
    • 8 Pages

    Applying Lean Management J. Galt Lock Ltd 8/2/2013 Ujjwal Dhakal S1238629 Operations and Service Management [M3N212833] Individual Report (50%) - Front Cover & Feedback Sheet Student Name: Ujjwal Dhakal Matriculation No: S1238629 Programme of Study: BA Management Technology and Enterprise Student Signature: Ujjwal Date: 02.08.13 Marking Criteria Mark Level of understanding and critical evaluation of case study evidence;…

    • 1969 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Lean Management in a Salon

    • 2931 Words
    • 12 Pages

    et al. (2006) Glean Lean: How to use Lean approach in service industries?. Journal of Services Research, 6 p.191-206. • Alsmadi, M. et al. (2012) A comparative analysis of Lean practices and performance in the UK manufacturing and service sector firms. Total Quality Management & Business Excellence, 23 (4), p.381-396. • Bonaccorsi, A. et al. (2011) Service Value Stream Management (SVSM): Developing Lean Thinking in the Service Industry. Journal of Service Science and Management, 4 p.428-439. • Bortolotti…

    • 2931 Words
    • 12 Pages
    Powerful Essays
  • Best Essays

    APPLICABILITY OF LEAN MANAGEMENT IN NURSING: A COMPARATIVE STUDY Eric Rahim Detuyatu Philippine Women’s University Student Name : Eric Rahim D. Detuyatu Student No : 20132722 Subject Title : Administrative Process in Nursing Professor : Prof.Manuel T. Alzate, MD, MAN Requirement Type : Term Paper Date of Submission : July 18, 2014 Table of Contents Abstract 3 Introduction and Background 4…

    • 3304 Words
    • 11 Pages
    Best Essays
  • Better Essays

    Lean Management in the Construction Field Everywhere you look, there are new construction projects being started and built. Construction is one of the top industries in the world, and with that, the construction industry is one of the largest contributors of waste and pollution. According to the U.S. Environmental Protection Agency (2004), “the U.S. building industry accounts for 39% of total energy use, 12% of total water consumption, 68% of total electricity consumption, and…

    • 1060 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Lean Supply Chain Management

    • 8878 Words
    • 36 Pages

    Int. J. Production Economics 85 (2003) 183–198 The strategic integration of agile and lean supply R. Strattona,*, R.D.H. Warburtonb a School of Engineering, Nottingham Trent University, Burton St., Nottingham NG1 4BU, UK b Griffin Manufacturing, Fall River, MA, USA Abstract Lean supply is closely associated with enabling flow and the elimination of wasteful variation within the supply chain. However, lean operations depend on level scheduling and the growing need to accommodate variety and…

    • 8878 Words
    • 36 Pages
    Powerful Essays
  • Satisfactory Essays

    Operations Management Research Analysis Assignment # 3 Research Topic: Lean production in Jaguar Student Name: Madonna Yasser Student ID: 5411058 Submission Date: 1. Introduction: This article is talking about the lean production application in Jaguar. It will end up with recommendations and outcomes . 2. Problem or subject description: Jaguar is part of the Ford Group. Ford has for a number of years been improving its production methods, particularly by introducing manufacturing…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    controlling their resources and materials to accomplish performance objectives. In other words management. There are four main types of management, Classical, Behavioural, Quantitative and now the Modern Approach to Management. The Modern Approach states that there is no one good way of management. A successful organization utilizes all the types of management. A good example of this is the movie Lean on Me, starring Morgan Freeman as Joe Clark, the protagonist of the movie. Joe is a very talented…

    • 1336 Words
    • 6 Pages
    Better Essays