1 fundamental of lean management
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Fundamental of
Lean Management
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What is Lean Management?A systematic approach to the
identifcation and elimination allorms o waste from the valuestream
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The Value Stream Concept
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The DenationLean is the Systematic identi cation andelimination of waste (non-value added activities)through continuous improvement by owing the
product [or service at the pull of the customerin pursuit of perfection!
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Lean Management: History
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Lean Management: Concept• Lean manufacturing concept is to
o ma%imi&e their pro t'o minimi&e their cost of production' ando eliminate waste!
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Lean Management: Framework
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Lean Management: Framework
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Lean Management : Framework• ontinuous mprovement*
o +ocused on solving problemsincrementally!
o Solution by e%periment helps inlearning process
• ,espect to eople*o ,espects people by giving them the
authority to solve their problems !o .ses the $nowledge of the people
who actually add value to the process
and also able to get buy in byengaging all the employees!o /uide the people to solve their
problems by as$ing the right0uestions' till they nd the root cause
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Lean Management: Application• Lean principles can be applied to nearly anything
from optimi&ing management to developing
vertical and hori&ontal integration that help withoptimi&ing the ow of products!
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Lean Management: PrinciplesLean 1anagement System wor$s on the following 2principles*• Value
o speci y what creates value rom the customer’s perspective.•
The value streamo identi y all the steps along the process chain.• Flow
o make the value process ow.• Pull
o
make only what is needed by the customer (short termresponse to the customer’s rate o demand).• Perfection
o strive or per ection by continually attempting to produceexactly what the customer wants
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Lean Management: Principles
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Lean Management:Modern vs Lean
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Lean Management: ElementsLean management consists of 3 $ey elements*4! Lean tools' system and structure*
o 1anufacturing often starts with value stream mapping whereas the o5ce maystart with speci c process or problem solving!
o nitiation steps' and a comprehensive plan covering competency building'training' deployment and culture change!
6! +ront line involvement and engagement*o 7he involvement of the peopleo 8ngagement needs to be created through ownership and a new structured way
of wor$ing that empowers the front line!
3! Leadership actions and behaviours*o Lean is often sponsored by the top of the organisation and left for the front lineto deliver!o 9ut if it:s left there without senior;middle management $nowledge and support'
a void will develop - will
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Lean Management: Elements
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Benets of Lean Management• Company > t ensures less waste which means low
e%penditure and investment! 7he reduction of wastewill ensure improved product 0uality' pro tability and
optimi&ed production!• Customers > t ensures improved customer care
services and e5cient supply of goods and services toclients!
• Employees > t ensures motivated employees due to
the safe wor$ing environment that the method availsto them!
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The Benets of Lean Management:Social Intimacy vs Economic Efficiency
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Benet in Risk Management View• reating a culture of transparency and constructive
problem solving encourages sta? to identify andmitigate ris$s and ine5ciencies!
• Standardi&ing wor$ increases the predictability ofoutcomes and captures best practices!
• .nderstand the implications of changes before rollingthem out across the organi&ation > and can ma$e coursecorrections early and often