Excesses in inventory as well as other areas that results to unnecessary expenses in the company while giving no value to customer frequently go unnoticed in an informal manufacturing setting. The lean management system implementation involves the elimination of seven kinds of waste in your business. By getting rid of waste, your business can perform more.
Implementing lean management system requires many steps to be followed.
Challenge the current meaning of “waste” in your organization. In an informal manufacturing environment, waste is thought as scraps and rework. In the lean management system, it comprises anything which does not put in value to the consumer.
Spot areas where there is overproduction. This is foremost among the seven types of waste which must be removed. The products which cannot be sold as well as those that the price must be reduced to be sold generate waste for your business.
Develop all parts at one point whenever possible. To move a part during the process of manufacturing is a waste of time and resources. In addition, parts can be spoiled during transportation from one point to the next, which create waste as well.
Get rid of waste. At first, you have to generate processes to ensure there is a single method to produce every part or product. Ensure that there is no room for errors by error-proofing your processes. This will help to eliminate sorting as well as inspection of parts.
Identify unnecessary operator movements which place excessive stress on the body. Perform ergonomic research of your work setting to reduce injuries to employees. This will eliminate superfluous waste of workman’s compensation claims as well as reduce the time and resources that are involved in training the replacement of the injured worker.
Assess specific consumer requirements for every product. Conduct extensive study to find out the processes that add value to your customer.
Diminish waiting time for your workers. Restructure the processes to ensure that your operators do not spent time waiting for work.
A lot of organizations have undertaken Lean to decrease the wastage of material and to adapt procedures that give optimum output. Lean management has been of great benefit to service sector organizations all over the world. The main objective of lean management is to improve quality and value to customer by reducing waste. It is advantageous to clients, personnel and also the organization as whole. Lean management comes along with financial and operational gains.
Benefits to workers
Lean gives room for reductions in waste as a result of overproduction and mismanagement of time. This is achievable by delivering cross-functional training to workers, which helps boost their skills to participate in various types of work with a far better perception of ownership. The role of each individual is well defined thus reducing friction that comes as a result of overlapping of responsibilities. In Lean management, there is maximum employee satisfaction as each person understands their own contribution operations.
With the help of Lean management, an organization is able to enforce steady advancements in its overall performance by improving the increments with lowered risks of change management. There is also a major improvement on employee productiveness which helps to achieve the company goals effectively.
Positive aspects to Customers
Lean management helps to develop adaptable operations, which may easily change to customers’ needs. It delivers a constant flow, which helps to lessen the work in progress as well as sequence occasions. As a result, Lean reduces the customer delivery time, as the production is carried out based on consumer requests. Lean management creates a mistake-proofing approach, so that flaws do not occur. This assists to reduce waste, increase the quality of output and save costs. As a result there is customer satisfaction and thus an increase in profits.
The advantages of lean management are many and can be applied on business operations as well as the whole organization. Lean management offers companies a competitive advantage over other organizations and helps them stay ahead of competition that may be tough to beat.
Lean Management is a management style that helps in reducing waste through eliminating work in process, non-value added activities, inventories, increase productivity and flexibility.
The core philosophy of lean system is to provide maximum value to the customers as they don’t pay for low quality products and mistakes rather they pay for the value. Customer focus is the basic principle of lean management.
The two main pillars of lean management are:
- Respect for people: It is about giving people authority to solve their own problems. It is the responsibility of the lean manager to help employees identify their own problems and devise a problem solving technique for them and respect those decisions. As employees are given authority to solve their issues, their level of motivation to work according to the requirements increases which in turns increase the value of the end product for the customers. Respect is a two way road. Lean managers should give respect to the employees and also to the end customers.
- Continuous Improvement: In lean management, incremental changes are made for solving problems. Each problem is taken as a challenge and each solution is devised through a learning process which helps in leading towards continuous improvement. The small constant improvements are then turned into big improvements with time and thus the process goes on and on for achieving the final goal i.e. value creation for the customers.
Lean management is very useful because:
- It helps in reduction of waste.
- It helps in elimination of defects in the products and processes.
- It helps to detect the faults in raw material and processes earlier so that the problem can be fixed before production starts.
- It helps in improving quality because of defect reduction.
- It helps in reducing the inventory.
- It increases production flexibility.
- It helps in boosting up employees’ morale by giving them respect and authority to a certain extend to solve their own problems and issues.
Lean management refers to creating more value for the customer, but with fewer resources. All this can be made possible by adopting the principle of zero waste. All this would mean that the non essential activities of any organization have to be reduced or rather eliminated. Lean means that the activities as well as processes of any company have to be such that it is able to achieve the maximum output in the most effective way with the least possible amount of available resources.
Lean manufacturing would require that certain principles are to be understood and then followed diligently. Firstly, it is important to understand the customer. What this means is to understand exactly what the customer wants and what will be able to add value to a customer.
Next step is to identify the various processes or activities required to be undertaken that will be able to provide the required product or service to the customer. Once this has been done, it will help eliminate the various activities that are simply wasteful or which do not add any value to the customer. Then such wasteful processes are to be reduced or if possible, even eliminated from the system.
A lean blog discusses about the various aspects of being lean. Lean management does not apply to processes only. It is people focused too. At times, employees tend to spend much more time and effort than required for a specific job or task. This can be termed as waste. This is something that needs to be handled with care. The aim is not to get an inferior quality product or bad service. Thus it requires prompt communication. Also, it should not lower the morale of the employees. The aim is just to get a good quality product with lesser resources.
What is Lean Management?
In the late 1980s, “Lean” was a term coined to describe the business of Toyota. This description was given at MIT’s International Motor Vehicle Program by a research team lead by Jim Womack, Ph.D.
Lean is customer-focused. The customer-defined values are developed and maintained throughout the process. The Lean Management system utilizes different tools to align the company goals and process with those of the customers. Unless used with a positive mindset, these tools are ineffective. A lot of effort is needed to accomplish this goal.
The five-step process of lean management involves:
1. Identifying value from the customer’s viewpoint.
2. Listing all the steps in the value stream and eliminating steps that lessens value.
3. Assure that the steps that create value occur in closed sequence so that product flow to customers will be smooth.
4. As the flow runs, customers are given the chance to receive value from the next activity.
5. Lastly, the steps are repeated until perfection is attained.
These five steps are easy to remember but difficult to attain. The right mindset of both managers and employees are needed in order to achieve success in lean management. As emphasized, putting effort into both entities is needed deliver a good product.
Traditional Management vs. Lean Management
The main characteristic of the old management style is that it focused on results. The disadvantage of this system is that people tend to focus only on the goals rather than on the means of attaining it. This may lead to malpractices in order to achieve the desired goal.
In contrast to the traditional management system, the lean management system focuses more on the clients and less on other goals. This system eliminates different types of waste such as too much waiting time in queue, overproduction, inefficient transportation, non-value-adding processes, inaccurate inventories, useless motions and excessive costs of quality.
Goals that each strives for are the main difference between old and lean management.