Lean management refers to a technique developed with the aim of minimizing process waste and maximizing the value of the product or service to the customer, without compromising the quality. It is coined by the Toyota Production System, which is a part of lean thinking. The primary purpose of lean management is to produce value for the customer through the optimization of resources and create a steady workflow based on real customer demands. https://www.themiku.in/

1. Lean Management
-Pratibha Pawar
www.themiku.in/

2. Content
1. Lean Management
2. Focus of Lean Management
3. Example
4. History
5. Stakeholders
6. Principles
7. Tools & Examples
-5s
-3m
-8wastes
1. Advantages
2. Conclusion
Lean Management

3. Lean Management
Lean management refers to a technique developed with the aim of minimizing process
waste and maximizing the value of the product or service to the customer, without
compromising the quality. It is coined by the Toyota Production System, which is a part
of lean thinking.
The primary purpose of lean management is to produce value for the customer through
the optimization of resources and create a steady workflow based on real customer
demands.
Lean Management

4. Lean Management focuses on
 Defining value from the standpoint of the end customer.
 Eliminating all waste in the business processes.
 Continuously improving all work processes, purposes and people.
Lean Management

5. History
Lean management is based on the Toyota Production System which was established in the late
1940s.
Toyota put into practice the five principles of lean management with the goal being to decrease
the amount of processes that were not producing value; this became known as the Toyota
Way. By implementing the five principles, they found that significant improvements were made
in efficiency, productivity, cost efficiency and cycle time.
Leap Management

6. Stakeholders of Lean Management
 Customers: For a firm, nothing can give more satisfaction than
seeing your customers delighted.
 Employees: Employees are the rank and file of the organization,
who are the most valuable asset of the organization.
 Organization: A well managed and balanced organization is
capable of fulfilling customers requirements.
Customer
Organizations
Employees
Lean Management

7. Principles of Lean Management
1. Define Value: To better understand the first principle of
defining customer value, it is important to understand what
value is. Value is what the customer is willing to pay for.
2. Map the Value Stream: The second Lean principle is
identifying and mapping the value stream. In this step, the
goal is to use the customer’s value as a reference.
3. Create Flow: After removing the wastes from the value
stream, the following action is to ensure that the flow of the
remaining steps run smoothly without interruptions or
delays.
Lean Management

8. Principles of Lean Management
4. Establish Pull: Once the flow is initiated, customers pull value from the next level activity.
5. Seek Perfection: perfection is the most important among them all. It makes Lean thinking and
continuous process improvement a part of the organizational culture. Every employee should strive
towards perfection while delivering products based on the customer needs.
Applying the Principles
The five Lean principles provide a framework for creating an efficient and effective organization. Lean allows
managers to discover inefficiencies in their organization and deliver better value to customers. The principles
encourage creating better flow in work processes and developing a continuous improvement culture.
Lean Management

9. Tools of Lean Management
•The Six Sigma method to improve the quality and efficiency of processes.
•Visual management to share information and solve problems.
•The Kaizen method to continuously improve processes.
•The SMED method to reduce the series change time.
•The Kanban method to optimize inventory management.
•The Value Stream Mapping (VSM) method to analyze processes and identify obstacles.
Lean Management

10. Tools of Lean Management- 5s
Lean Management
• The 5S method (Sort, Set in order, Shine, Standardize, Sustain) to optimize the working environment
and reduce wasted time.

11. Tools of Lean Management- 3m
Lean Management
• The Toyota 3M Muda, mura and muri are three types of wasteful actions
that negatively impact workflow, productivity and ultimately, customer
satisfaction. The terms are Japanese and play an important role in the Toyota
Way. Muda, mura and muri are also used in lean development
an Agile software methodology inspired by the Toyota Way.
1. Muda means wastefulness.
2. Mura means irregularity or a lack of uniformity.
3. Muri means over worked.

12. Tools of Lean Management- 8 Waste
Lean Management
1. Defects
Defects involve scrap or material that is thrown out or reworked…and much more.
2. Overproduction
Overproduction is making something too soon, making too much of something, or making something
faster than is needed.
3. Waiting
Waiting involves delays to process steps, often extending customer lead-time.
4. Non-utilized Talent
Not fully utilized people represents the waste of talent present in many organizations.
5. Transportation
Transportation deals with unnecessary movement of products.

13. Tools of Lean Management- 8 Waste
Lean Management
6. Inventory
Inventory may not seem like a bad thing. After all, a supplier never wants to be in the position of not
being able to meet customer demand.
7. Motion
Motion involves movement by people. Even small non-value-added motion can be very costly. Think of
an extra twist of the wrist on every item many times a day that leads to a repetitive motion injury, with
lost-time and disability costs.
8. Excess
Excess processing might be extra steps in a process, unnecessary customization, inefficient routings and
other things not necessary or valued by the customer. Organizations may want to provide the shiniest,
most sparkly widget, but anything beyond a customer’s spec is non-value-added, or muda.

14. Advantages of Lean Management
1. Concentration: Your staff will focus on the activities that really add value.
2. Improved productivity and efficiency: Employees who focus on creating value will be more
productive and efficient because they are not distracted by unclear tasks.
3. A smarter process: By establishing a traction system, you can provide work only if there is a real
demand
4. Better use of resources: By basing your production on actual demand, you can use only the
resources you need, thus avoiding waste.
Lean Management

15. Conclusion
As a result, your company and your staff will become much more flexible and able to
respond to consumer demands a lot more quickly. The principles of Lean Management
will enable you to create a stable production system, which will improve the overall
performance of your company.
Lean Management

16. Thank You