Lean management
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Lean management is a business philosophy and management approach which is originated from the Japanese manufacturing industry in the mid-20th century. It is increasing efficiency and minimizing waste in design and production processes and by this reducing cost and improving quality. The idea behind lean management is to create value for the customer while time minimizing waste in all stages of production. By this, it takes the users input into consideration while trying to reduce excess inventory, waiting times, overproduction, defects, unnecessary motion and more related to the product and production. By doing so, lean management enables organizations to be more flexible, adaptable, and responsive to changing customer demands. | Lean management is a business philosophy and management approach which is originated from the Japanese manufacturing industry in the mid-20th century. It is increasing efficiency and minimizing waste in design and production processes and by this reducing cost and improving quality. The idea behind lean management is to create value for the customer while time minimizing waste in all stages of production. By this, it takes the users input into consideration while trying to reduce excess inventory, waiting times, overproduction, defects, unnecessary motion and more related to the product and production. By doing so, lean management enables organizations to be more flexible, adaptable, and responsive to changing customer demands. | ||
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| − | When adopting lean management organizations typically have improved quality, reduced costs, and increased customer satisfaction. However, implementing lean management is a challenging process which requires cultural and organizational change | + | Lean management has a range of principles, tools, and techniques that are designed to improve process efficiency and eliminate waste. Examples on these are continuous improvement, just-in-time manufacturing, kaizen, value stream mapping, 5S workplace organization, and visual management, among others. The principles of lean management are in industries such as healthcare, construction, and software development. When adopting lean management organizations typically have improved quality, reduced costs, and increased customer satisfaction. However, implementing lean management is a challenging process which requires cultural and organizational change. |
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| + | == History behind lean management == | ||
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| + | Lean management started in the Japanese automotive industry in the 1940s and 1950s where the companies had limited resources and a competitive market. To face these challenges of resources and competitiveness, Toyota developed a production system which eliminated waste and increased process efficiency and known as the Toyota Production System (TPS). | ||
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| + | The TPS was based on two key principles: | ||
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| + | 1. "jidoka," (automation with human touch. Jidoka allowed for machines which were designed to detect errors and stop themselves while workers focus on other tasks. | ||
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| + | 2. "kaizen," or continuous improvement. Kaizen is a commitment which continually improves processes and eliminates waste. | ||
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| + | The TPS also introduced the concept of "just-in-time" (JIT) production. This was based on the idea of producing only what was needed, when it was needed, and in the quantity needed. As a result, TPS helped reducing excess inventory and the related costs. | ||
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| + | The positive results of lean management in the 1970s and 1980s led to increased interest in the western countries, and General Motors, Ford, and Boeing all began to adopt lean models into their own production process. Today, lean management is widely used to improve efficiency and reduce waste in a many different industries such as in healthcare, service industries, and software development. | ||
Revision as of 18:35, 9 April 2023
Introduction
Lean management is a business philosophy and management approach which is originated from the Japanese manufacturing industry in the mid-20th century. It is increasing efficiency and minimizing waste in design and production processes and by this reducing cost and improving quality. The idea behind lean management is to create value for the customer while time minimizing waste in all stages of production. By this, it takes the users input into consideration while trying to reduce excess inventory, waiting times, overproduction, defects, unnecessary motion and more related to the product and production. By doing so, lean management enables organizations to be more flexible, adaptable, and responsive to changing customer demands.
Lean management has a range of principles, tools, and techniques that are designed to improve process efficiency and eliminate waste. Examples on these are continuous improvement, just-in-time manufacturing, kaizen, value stream mapping, 5S workplace organization, and visual management, among others. The principles of lean management are in industries such as healthcare, construction, and software development. When adopting lean management organizations typically have improved quality, reduced costs, and increased customer satisfaction. However, implementing lean management is a challenging process which requires cultural and organizational change.
History behind lean management
Lean management started in the Japanese automotive industry in the 1940s and 1950s where the companies had limited resources and a competitive market. To face these challenges of resources and competitiveness, Toyota developed a production system which eliminated waste and increased process efficiency and known as the Toyota Production System (TPS).
The TPS was based on two key principles:
1. "jidoka," (automation with human touch. Jidoka allowed for machines which were designed to detect errors and stop themselves while workers focus on other tasks.
2. "kaizen," or continuous improvement. Kaizen is a commitment which continually improves processes and eliminates waste.
The TPS also introduced the concept of "just-in-time" (JIT) production. This was based on the idea of producing only what was needed, when it was needed, and in the quantity needed. As a result, TPS helped reducing excess inventory and the related costs.
The positive results of lean management in the 1970s and 1980s led to increased interest in the western countries, and General Motors, Ford, and Boeing all began to adopt lean models into their own production process. Today, lean management is widely used to improve efficiency and reduce waste in a many different industries such as in healthcare, service industries, and software development.
