2. Issues addressed by lean management
Prolonged
Cycle Time
Costly
Organization
Rampant
Wastage
Dissatisfied
Customers
and
Employees
Low
Productivity
3. Some alternatives to Lean Management
Six Sigma
•Six Sigma is based on variation theory. Variation here means difference in the
input process and the output of the process.
•Six Sigma is the method to get the knowledge of defects in the process to
eliminate the problem and hence improve the process as well as the products.
•For this it uses principles of business, statistics and engineering. Six Sigma can be
applied to various fields like production, sales, marketing and services extra.
Scientific
Management
•Scientific management is also called as Taylorism after its inventors name
Frederick Winslow Taylor.
•Taylor also talked about reduction of cost price and developed exact procedures
after studying individuals on work.
•He shifted the focus from labor to managers. He also believed in standardization
of one method of production for each job and selection of the labor on basis of
abilities required by a particular job.
4. Lean management vs. Alternatives
All the above alternatives need specialized training while Lean Management
can be applied immediately and does not require any specialized training.
Alternatives management tool requires well trained managers to implement
them, while in Lean Management the work force as a whole is responsible for
the improvement.
5. Lean Management Principles
1. Add Value
2. Shift Focus
3. Delay
Commitments
4. Discourage
Departmental
Evaluation
5. Adapt to New
Change
6. Companies Implemented Lean Management
Lean
Management
Toyota
Motor
Company
eflexgroup.com
CIGNA Group
Bechtel
Corporation
Starwood
Hotels
&
Resorts
Worldwide, Inc.
7. Conclusion
Lean management is the process through which
customer value is maximized by the reduction of
wastages in work process.
The major techniques adopted in lean
management are workplace redesigning, total
productive maintenance (TPM), total quality
management (TQM), and Just in Time (JIT).
When wastes are eliminated, efforts, defects,
costs, and time spent in processes are also
automatically reduced.
This leads to higher revenues, larger customer
base, and enhanced employee motivations.
The major thrust areas addressed by lean
management are low productivity, prolonged
cycle time, total organizational expenses, rampant
wastages, dissatisfied customers, and disillusioned
or alienated employees.
When companies implemented lean
management, the average gains in productivity
were around 25%, wastages were reduced by
even 90%, floor space shrunk by 50%, and travel
distances inside the organizations were cut down
by 75%.
