Lean Management – Prosperity During Crises

What is the client’s worth and how does it come about? We’ll go through different categories of loss that can occur in any industry, as well as how eliminating them can boost a company’s profits. The most important asset is the knowledge of how to use Lean Management, not only to survive but to thrive in the face of challenges within your business.

The Toyota Production Method is known in the United States as Lean Manufacturing (Management). Taiichi Ono, the founder of Lean Manufacturing, started experimenting with output optimization in the 1950s. Lean Management requires full employee engagement in the market optimization process as well as a high degree of focus on customers. This focus on consumers is the starting point for the Lean Management type. The commodity or service only acquires true value in the eyes of the end customer when these components are directly processed and produced.

Based on the lean manufacturing principle, a company’s practices can be divided into two categories: operations and processes that add value to the customer, and operations and processes that do not. As a result, something that does not bring value to the customer from a Lean standpoint is considered unnecessary and must be discarded. Therefore, the key objectives of Lean Management are to reduce costs, including labor; shorten the time of product manufacturing; reduce processing and storage areas; ensure product distribution to customers, and achieve maximum output at a low cost.

As previously mentioned, the Lean system roots can be traced back to Toyota. One of Toyota’s creators, Sakishi Toyoda, felt that there was no end to the quality development and that no matter where the company stood in the industry or how challenging it was, it was important to keep going forward and developing all the manufacturing processes. Toyota’s kaizen approach of continuous change of the product is an outcome of this ideology. Sakishi Toyoda was a major advocate of significant developments in new car research and development.

Kaizen is a Japanese term that blends the words “change” and “positive” and means “change for the better” or “continuous progress.” Kaizen is a management theory and management process that allows workers to suggest and execute changes in a realistic manner. Kaizen is made up of five major elements:

safe interaction between workers and executives, high level of personal discipline, the high moral spirit of the team, the circles of quality, the ability to openly suggest or to give a recommendation of how to improve the production process.

In addition to the Kaizen philosophy, a famous tool for implementing the Lean Management style in the company is the System of 5C. The 5C stands for clearing, configure, clean and check, conformity, and consensus. Clearing or sorting is the method of distinguishing required objects (tools, pieces, materials, and documents) from those that aren’t, in order to remove the latter. Configure or rational position is to organize what’s left in a logical way, putting each object in its proper location. Cleaning is to maintain a safe and organized climate. Conformity or standardization is to use caution when doing the first three Cs. Consensus or improvement is then to develop habits of observing existing protocols and enhancing them.

One more important component of successful Lean Management material is value stream mapping. The content and information flow needed to deliver a commodity or service to the end-user are depicted in value stream visualization, which is a reasonably basic and intuitive graphical diagram. A value stream diagram helps you to see the stream’s bottlenecks straight away and, depending on the study, define all operating costs and procedures, as well as build an optimization strategy.  The stages in value stream mapping are: documenting the new state’s diagram, studying the flow of output, developing a potential state map, and creating a roadmap for change.

Finally, the pull production method in Lean Management can help you to find the balance and synchronization between different production streams. This is a form of manufacturing in which the number of goods manufactured through each step is driven primarily by the needs of successive steps (ultimately, the needs of the customer). The optimal outcome is “single-piece flow,” in which the upstream supplier (or internal supplier) does not manufacture something until the downstream customer (or internal consumer) tells them. As a result, the process after that “pulls” the commodity from the previous one.

To conclude, it’s no secret that Lean Management is being seen in a number of sectors. This particular model continues to be a fundamental management method due to its key principles and optimistic effect on overall company success. From engineering to marketing and software creation, the Lean principle can be applied to any industry or production process. Lean Management is something like a path map for developing a strong company that grows over time and finds and eliminates real challenges. The primary aim is to deliver value to consumers by leveraging resources, maintaining a stable workflow focused on real customer demand, establishing quality development, and ensuring that every employee engages in the improvement process.


Content retrieved from: https://www.soprana.no/en/blog/lean-management-prosperity-during-crises.