Introduction to Lean Management
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.
• 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
• 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).
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.
• 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.