Subject: Lean Management
Lean management is an innovative set of organizational practices and methods aimed at eliminating waste, while delivering quality products or services. By focusing on the elimination of non-value added activities, the lean management system encourages the continuous improvement of the overall productivity and efficiency of the business model.
Lean management is rooted in an understanding of the Toyota Production System (TPS). This system was developed by Toyota with the intention of becoming the best carmaker in the world. The key element of the TPS was to continuously improve the quality, cost and delivery of automobiles, in order to strive for customer satisfaction. By doing so, Toyota created one of the most efficient production systems in the world and inspired many other companies to implement similar systems, known as lean systems.
The key principles of a lean system are eliminating waste, designing and improving processes for value stream mapping, and continuous improvement. In order to sustain a lean system, it is essential for businesses to identify and eliminate any inefficiencies and wastes that exist in their organization. By understanding the wastes that are generated in the system, and focusing on eliminating them, companies can optimize the way that materials, information and activities flow in order to ensure that they are not wasting the time and resources of the organization.
Value stream mapping is an essential element of any lean system. This involves charting the entire production process, including information and materials flows, from beginning to end. This helps to identify any areas of waste within the system and allows for the mapping of potential solutions. The objective of this process is to reduce the production process to the essentials, and eliminate any waste.
Finally, continuous improvement is one of the most important elements of a successful lean management system. Companies should strive to continually review their processes and practices and work towards improvements. Companies should also review their competitors in order to ensure that they are developing best practices that are superior.
Overall, lean management provides an organizational structure which allows companies to identify and eliminate any non-value added activities. This system encourages the continuous improvement of production and operations, and allows companies to provide quality products and services, while reducing costs. By focusing on eliminating waste and improving processes, companies are able to increase their operational efficiency and productivity, while remaining competitive in their markets.
