Lean management focuses on eliminating waste while ensuring quality. It has been applied successfully in various industries like banking, healthcare, airlines, and restaurants by streamlining processes. At Amazon, lean principles have been implemented since its inception through practices like kaizen workshops, use of the andon cord to stop production when issues are detected, and applying lean to software development and 3D printing. The next frontiers for lean include bringing its principles to more complex software development and using technologies like 3D printing for on-demand manufacturing.

1. Next frontiers for lean
&
Lean at Amazon
Group B - 4
• Mario Allen
• Jovita D’costa
• Manisha Kumari
• Mary Monisha
• Ken Sunny
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2.  Lean Management.
 Service sectors and lean management.
 Advantages and disadvantages of lean management.
 Lean at Amazon.
 Kaizen.
 The andon cord.
 What’s next?
 Conclusion
Contents
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3.  A Japanese approach to management.
 Focuses on cutting out waste, whilst ensuring quality.
 It is also known as the :
 Toyota Production System
 just-in-time production.
 4 Basic principle:
 Continuous improvement
 Just-in-time production
 Time based management
 Total quality management (TQM)
Lean Management
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4.  Deutsche Bank.
 The time saved can be utilized.
 Improving quality of existing business.
 Around 10% of the efficiency gain.
 Avoiding duplication and sending work back and forth.
 Simplifying processes resulted in 25% increase.
Retail banking
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5.  Cleveland Clinic Cleveland Ohio
 Reduce "never events.“
 Supply chain improvements.
 Delay or cancel construction and expansion.
 Reduce overtime.
 Reduce length of stay.
 Reduce unnecessary testing and diagnostics.
 Reduce delays and errors in billing.
Hospitals
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6.  Southwest Airlines
 Turnaround times between flights.
 Achieved strong customer loyalty.
 “Bags Fly Free” concept.
 Operates small planes and short-distance flights.
 Creates value for customers.
 Revolutionized airfare ticketing.
Airlines
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7.  Sugimoto Restaurant in Nagoya City, Japan.
 How to improve order accuracy.
 How to improve quality.
 Reduce errors as a team.
 Standardizing procedures.
 Use of technology.
Restaurants
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8. E.g of lean being followed in the
airline industry
E.g of lean being followed in
the hotel industry
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9. Good or bad?
Advantages
 Worker Satisfaction.
 Just in Time.
 Competitive Advantage.
 Reduced cost.
 Best utilization of resources.
 Minimal error.
Disadvantages
 Techniques can be overused.
 Problems With JIT.
 Worker Frustration.
 Supply Problems.
 High Cost of Implementation.
 Customer Dissatisfaction.
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10.  Lean management was followed at Amazon from the start
 Customer-centric.
 Lower-cost options
 E.g. transportation method for a given package.
 Composition of amazon as an organization
 Failure of automation
 Methods followed :
 kaizen workshops
 The andon cord
Lean at Amazon
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11.  Practice of continuous improvement.
 Originally introduced to the West by Masaaki Imai
 Management work in customer service at least one day a year.
 Fulfillment by Amazon business.
 “three strikes” packing process
 New productivity objectives for stowing products.
 Three types of carts.
 Combination of
 Frontline workers
 Engineers
 A few executives
Kaizen
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12.  Address quality or other problems by stopping production.
 repetitive defect complaints - “stop the line”
 Taking the product off the website.
 Eliminates tens of thousands of defects.
 Proof of trust for customer-service agents.
 Customer satisfaction.
The Andon Cord
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13.  Lean-management principles to software creation.
 Highly complex.
 Stop the line and detect defects in real time.
 The customer as a beta tester.
 3-D printing.
 Making three dimensional solid objects.
 Prints and ship a book within four hours.
 It’s the ultimate just in time.
What’s next?
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14.  Provides a trust to the customers and employees.
 Effective as well as efficient.
 May not be the best solution for all industries.
 Costly for the organization.
 Difficult to master and risky.
 Needs deep understanding and planning.
 Amazon at the right path.
Conclusion
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15. Thank
you
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