Introduction to Lean Management

Introduction to Lean Management

In this lesson, you’re expected to learn the basics of the lean philosophy and how it is used in operations management.

The key principle of lean operations is relatively straightforward and easy to understand:

It involves moving towards the elimination of all waste in order to develop an operation that is faster, more dependable, produces higher-quality products and services, and operates at a low cost.

A lean organization is customer-centric and focuses its key processes on continuously increasing the generation of value to customers, while reducing waste.

• To accomplish this, the lean philosophy incorporates a systemic thinking by shifting from the optimization of isolated activities to that of optimizing entire value streams across multiple processes and departments.

• Lean operations are founded on doing simple things well, gradually doing them better, and squeezing out waste.

• Three key issues define the lean philosophy:
– The elimination of waste
– The involvement of staff in the operation
– The drive for continuous improvement

[Optional] Lean Management Principles
Watch this 2-minute video by Four Principles to learn more:
Lean Philosophy Basics

• Focus on the client, not on the organization itself.
• Meet customers’ needs, when they need it, and with the quality that they need.
• Eliminate everything that does not add value to the customer.
• Search for maximum process efficiency (integrated view), not individual activities’ efficiency.
• “Pursue perfection” (continuous improvement).

The Five-Step Process for Guiding Implementation of Lean Techniques
Enlarged version:
Lean Building Blocks

1) Performance management      
• Near-real-time performance tracking.
• Use only a few key performance indicators to monitor performance and drive its improvement.

2) Problem solving      
• Focus on closing performance gaps by using problem solving techniques.
• Fact-based problem solving and decision making is part of everyone’s daily routine.

3) Tools and techniques      
• Employ new problem solving techniques and update the organization’s procedures to ensure that problems do not come back. Examples of techniques used: 5S, Value Stream Mapping, Single-Minute Exchange of Die (SMED).

4) Culture and commitment – build and sustain one common culture that requires:
• Participation and accountability at all levels.
• Increased focus that drives impact and continuous improvement.
• Individual goals aligned with business goals.
• Ability and willingness to take fact-based, calculated risks.

[Optional] “This Is Lean”
Watch this 10-minute video lecture by Niklas Modig to learn more:
Jim Rohn Sứ mệnh khởi nghiệp