Five examples of lean management in business

Initially specific to the Japanese automotive industry, lean management is a production management method that is now popular in many sectors. Here we take a closer look at the five main principles of lean management that can be immediately applied in your company.  

What is lean management?

Created by Toyota in the 1940s, the lean method aims to boost a company's productivity and profitability by eliminating all sources of waste and optimising processes. More than a simple production management method, it is a school of thought that consists of reconciling efficiency, quality and the reduction of costs and deadlines. Today, the lean thinking method can be applied to many areas of expertise: we talk, for example, about lean start-ups, lean marketing, lean IT, and so on.  

Five examples of lean management principles in business

The following are examples of the main principles of lean management in companies:

1- A customer-oriented approach

One of the main characteristics of lean management is focusing on customer satisfaction and orienting each production step to provide the best possible result, as close as possible to the customer's needs. A preliminary step is to identify the added value brought to the customer.

2 – Waste reduction

Another central objective of lean management is the elimination of all sources of waste: unnecessary tasks, non-value generating actions, futile operations, unused skills, overproduction, latency, poor inventory management, etc. Being able to reduce costs and production times in the long run, always with a view to improving company performance and customer satisfaction, is a key action. A company must use precise KPI (Key Performance Indicators) and conduct regular audits to analyse results and implement corrective actions.

3 - Employee involvement

Lean management seeks to involve all employees in the search for improved performance. Indeed, it is due to the collaboration and involvement of all actors in a company (whatever their hierarchical level and area of expertise) that this method finds its effectiveness.

4 - Continuous improvement

For it to have a lasting impact, lean management must be part of a continuous improvement process. To do this, a company can look to a vast array of continuous improvement tools and agile methods such as 5S, PDCA, Kanban, Six Sigma, Kaizen or Just-in-Time.

5 - Flow optimisation

Another practice inherent to lean management is the regulation and optimisation of production flows. The objective is to establish a fluid, stable and regular work and project management process. To achieve this, you could map your company’s entire value chain. This will enable you to tangibly visualise all the actions and collaborators involved at each step of production, from product design to product delivery. These best practices enable a company to optimise its entire operation, eliminate non-value-added activities and accelerate its production chain, in order to achieve true operational excellence, boost profitability and increase turnover. At WAYDEN, an interim management firm, we identify among our network of 8,000 talented executives and managers, the profile best suited to your needs, and specialised in lean management. With their long career, sector know-how, unbiased perspective, human qualities and unparalleled managerial skills, this high-ranking leader can boost your company's productivity and profitability through the optimisation of all your processes.