The concept of Lean Management is multiplying in the business sphere. Companies worldwide have adopted this management tool for its core values and positive impact on their workload performance.
From marketing to software development, you can apply Lean to almost any business process.
The Lean methodology has three main principles:
In this article, you will learn about Lean management’s fundamental concepts, including its principles, benefits, tools, and much more.
First, let’s ask the most critical question.
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Around 70 years ago, the Toyota Production System laid the foundations for Lean. The ultimate goal was to reduce things that did not bring value to the end product. By eliminating waste, productivity, efficiency, time, and costs were improved. Today, many global industries have adopted this tool.
Lean is a universal management tool that can be applied in various industries.
It is evident Lean focuses on shared leadership and responsibility. It stands on two essential pillars:
Some popular companies using Lean management include:
Lean has three main stakeholders:
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The Lean methodology relies on five basic principles.
If a company wants to sell a product or a service to a customer, it needs to add value to its needs.
What does adding value mean? The value is a problem you are trying to solve for the customer. The customer pays for the solution that the company provides.
In this process, anything that does not bring value to the end product or solution is considered a waste. Therefore, the first step is to ask the question: What is the value you want to deliver?
In this step, the company’s workflow is mapped. It includes the people involved and the actions that need to be taken to deliver the end product. In the process of mapping, you can also identify the parts that do not bring any value.
The principle of value stream mapping has two goals:
It is vital to a process to make sure that the team’s workflow is smooth. This step may take some time after you have your value stream.
An essential step in the process of developing a product or a service is cross-functional teamwork. You can remove any roadblocks in your workflow by dividing your work into smaller tasks or batches and having a workflow vision.
A stable workflow is critical for the team to deliver faster results with minimal effort. Creating a pull system can be essential to secure and stable your workflow.
What constitutes a pull system? Here, the work is pulled only on demand. The teams can optimize their resources’ capacity and deliver services or products only if they need them.
This last step is vital to building your Lean management system.
A system needs continuous improvement since problems can occur at any of the previous steps in the process. Employees on every level can apply different techniques for improvement. An example would be to organize daily meetings to discuss what has been achieved, what the upcoming tasks are, and what problems can be anticipated.
Lean management’s principles contribute to a stable production system that improves the overall performance of your workforce.
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In Lean, there are three types of waste.
From manufacturing to finance, several industries use Lean tools to manage and eliminate different types of waste in organizations.
There are different types of Lean tools:
|Related Article: Lean vs Agile - Differences|
You can benefit from the several advantages of the Lean methodology. Some of them are:
There are several benefits to adopting the Lean methodology. However, it is vital to consider the following factors:
In the Lean methodology, the number of stocks is reduced to decrease the carrying costs. By doing this, the companies depend on suppliers to make adjustments in the deliveries. So, any disruptions in the inventory processes can cause problems for the company.
Since the implementation style of Lean can differ from the traditional ones, employees may not always welcome it. Employees need plenty of patience to change over to Lean.
Therefore, company leaders are supposed to be transparent about all the changes that can take place in the company.
When you implement lean management in your company, all the past systems and processes will end. Therefore, companies need to be prepared to bring in new training programs and equipment to be comfortable with the high costs.
You need a lot of planning and time to implement Lean. To do this, you need to study your workflow and team activities and talk to them about things like company changes. You can conduct daily meetings to discuss completed and upcoming tasks, as well as any problems they can anticipate.
The differences between Lean and Agile are:
Basic of Comparison
Lean is a software development model having six different phases in its lifecycle.
Agile is a software development model that came from the manufacturing model.
Frameworks like Kanban develop Lean.
Different manufacturing principles and processes develop Agile.
Ease of use
You can easily use Lean for dynamic changes.
Agile is not flexible for dynamic changes.
Lean management is beneficial to many organizations for their growth and providing solutions to their customers’ actual problems. You provide real value to the customers because the main focus is resource optimization.
Lean methodology principles enable the teams to create stable workflows based on actual demands from the customers.
Therefore, we can conclude that the ultimate goal of Lean is continuous improvement. Every employee is involved in the improvement process.
I am Ruchitha, working as a content writer for MindMajix technologies. My writings focus on the latest technical software, tutorials, and innovations. I am also into research about AI and Neuromarketing. I am a media post-graduate from BCU – Birmingham, UK. Before, my writings focused on business articles on digital marketing and social media. You can connect with me on LinkedIn.