Lean Management

Lean Management is a lean manufacturing philosophy based on the TPS (Toyota Production System).This system constantly strives to shorten the time-lag between the customers ordering the consignment to the shipment of the consignment by eliminating waste. In short, it means more production with less means. Any organization can benefit from this philosophy. As long as an organization can identify a value stream from the time a customer orders a product till the time he actually receives it, these principles of management can be applied so as to eliminate waste.

Client awareness is one of the main reasons for this paradigm shift amongst manufacturers. Customers want more and more value for their money, and seek better and a more superior quality product. Also, the customers seek customized variants and shorter lead time in time delivery.

Share-holders too have become wiser over the years. They too seek a larger share in the profits; a higher return on their investments. And at the same time, they want more new products to be introduced at even shorter intervals!

Lean Management Helps You Get An Advantage

Today being a buyer’s market, the rules of the game are being re-written so to say. Manufacturers, the world over, are vying and trying to out- do each other to become more efficient and competitive in the tough market that exists today.

The parameters to measure efficiency and performance have changed. To quote a few instances;

  1. From weeks to hours in order lead-time,
  2. From days to minutes with regard to delivery accuracy
  3. From measuring percentages to PPM in scrap and re-work
  4. From monthly batches to a product-a-day
  5. From shifts to minutes for change-over time
  6. From non-stop fire-fighting, to continuous improvement
  7. From daily break-downs to weeks between break-downs.

Manufacturers have learnt the lesson the hard way! They have learnt that the only way to survive in this ‘dog-eats-dog’ game would be to abandon the age old procedures. They constantly strive to improve upon themselves, and provide more and more value to the customer. The manufacturers have realized, albeit late, that for them to survive in this rat-race they not only will have to provide ‘value for money’, but also strive to improve the following three aspects:-

  • Quality
  • Speed
  • Price

At the same time, they have to strive to cut down on over-head costs and the profit-devouring price escalation.

Lean Management relies on an integrated system to facilitate team interaction and track progress through a strategic improvement cycle.

In Lean Management, value of a product is always determined through the customer and not through the company. What the customer defines as value may not be what the company perceives as value. And in the long run, it has been proven that the customer is ‘always right’!

Lean Management Just One Part Of Your Lean Manufacturing Strategy

The term ‘lean’ was coined by a research team headed by Jim Womack at MIT’s International Motor Vehicle Program during the late ‘80’s.Womack is of the opinion that managers and management professionals who embark on ‘lean’ transformation should consider the following three principles:-

  • Process
  • Purpose
  • People

Five ways visual management makes everyone’s job easier

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The purpose of visual management pretty simple.  Its sole purpose is to quickly highlight problems so that they can be addressed rapidly and not turn into bigger issues. I want to talk a little bit about five ways this makes everyone’s job easier and give you a few pointers on how you can get more [...]

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Toyota Production System and Lean Management

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One of the best examples of lean management is the Toyota Production System, or TPS. Originally, TPS was called Just-in-Time Production. TPS identifies seven different kinds of waste that must all be identified and addressed in order for a business to run smoothly. Eliminating waste will ensure that businesses have the highest levels of production [...]

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Lean Management: Just-in-Time

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One of the best lean management strategies is Just-in-Time, or JIT. This strategy helps businesses to increase their return on investment. Essentially, JIT works because it reduces all in-process inventory so that the costs that come with it can be reduced as well. // // // ]]> JIT works on the principle that inventory is [...]

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Lean Management In Today’s Business World

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Lean management got a big kick-start with Henry Ford and the Model T automobile. While that may have been almost a century ago, lean is still a very important strategy in today’s business and industrial world. // // // ]]> Lean manufacturing‘s goal is very simple: reduce waste and increase productivity to increase profit. The [...]

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Kaizen and Lean Management

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The Kaizen strategy is a term in lean management that seeks to promote continual improvement. Kaizen was developed after World War Two in Japan. It was brought to Japan by foreign teachers and by American businesses. Both showed examples of quality management. Now, it has become a global business idea that has found its place [...]

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The 5S Lean Management Strategy

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There are many different lean management strategies. One of lean’s most popular manufacturing strategies is 5S. 5S was developed by Hiroyuki Hirano in Japan where it was used to improve the quality of housekeeping and increase the streamlined flow of manufacturing. // // // ]]> The 5S strategy is comprised of five Japanese words – [...]

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Lean Management For Today’s Businesses

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When you look at the contributions that the Ford Motor Company and Toyota have made to lean management, it is pretty obvious why an increasing number of businesses are trying to streamline the flow in their strategies and operations. // // // ]]> It is very widely accepted that the flow and organization in a [...]

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How Is Waste Defined By Lean Management?

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The definition of waste by lean management is not physical waste or garbage. It is actually anything that does not contribute to the value of the product of service that is being given to a customer. // // // ]]> Lean manufacturing seeks to identify and eliminate waste, so that production can be increased. In [...]

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Lean Management Lessons from Toyota

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Toyota is one of the most powerful examples of lean management. The strategies and methods that they have developed have made a huge contribution to the industrial world. Toyota started out as a textile producer and switched from the textile to the automotive vehicle industry. // // // ]]> In 1934, Toyota manufactured their very [...]

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Lean Management in the Ford Motor Company

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Henry Ford is one of the most popular lean management pioneers. He pioneered the production technique that brought the idea of mass production to the Ford Motor Company – this was the assembly line technique. With this, he essentially revolutionized the way that goods were manufactured. // // // ]]> It started with the Model [...]

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What Are the Principles of Lean Management?

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Lean management is a principle that aims to help businesses increase their output and to eradicate waste. The desired outcome is for profits to be maximized and for time and energy to be saved. This principle works around the notion that a business’ resources must serve to create more value for customers. Resources that are [...]

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Lean Manufacturing Management

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Lean  management strategy was a concept borrowed by United States automobile companies from their Japanese rivals. Lean Manufacturing is characterized by main focus being put on high product quality right from the very beginning. This strategy became integrated in various phases of the manufacturing process and also relies // < ![CDATA[ google_ad_client = "ca-pub-2108633859521771"; /* [...]

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