What are the implications of lean management?

A management technique based on improving performance and finding a product or service of optimal quality, lean management involves the implementation of different operational strategies to operate. Reduction of sources of waste, continuous improvement approach or search for added value…

Zoom in on the implications of lean management in business.

 

What is lean management?

Created in Japan in the 40s, in Toyota’s production system (Toyota Production System), lean management is a model of thinking focused on customer satisfaction. It boosts the profitability of companies while generating a product of optimal quality. The lean methodology relies on the Operational excellence of teams, process improvement and a reduction in sources of waste, through a continuous improvement approach. This This type of management offers optimization of deadlines, reduction of production costs and better quality standards for the company.

 

Lean management: tools and methodology

The implementation of lean management is characterized by the deployment of different leadership tools and agile methods within the company, such as 5S, Kanban, the Six Sigma method, SMED (Single Minute Exchange of Die), etc. Among the methodological approaches and essential tools of lean management, there are also:

1- A methodology focused on customer satisfaction

Lean management is also characterized by a focus on customer satisfaction. All stages of production are therefore optimised in order to best meet their expectations, with a prior identification of the added value.

2- Value Stream Mapping

An essential method for the implementation of lean management, Value Stream Mapping consists of precisely analyzing the stages of the production or service delivery process, mapping the entire value chain of the company, stocks, deadlines, as well as the company’s waste, in order to solve problems.

3- The Kaizen method, or continuous improvement

The “Kaizen” approach, which means “continuous improvement” in Japanese, is a tool that allows employees to make adjustments on a daily basis to reduce waste and optimize processes. The use of KPIs (key performance indicators) are a tool to be used as part of the continuous improvement process within the company.

4- The “Just-In-Time” approach

An essential implication of lean management, the Just-in-time approach aims to reduce stocks to the strict minimum, by producing and delivering products or services just-in-time, which reduces inventory costs, reduces waste and improves the company’s responsiveness.

5- Put employees at the center

To manage an effective lean strategy, the manager must give central importance to all of his teams. Valuing initiatives, developing skills and actively participating are therefore the key words in lean management.

 

What are the advantages of lean management?

With operational excellence as a driving force, lean management offers many benefits, such as:

• Reducing waste;
• Better inventory management;
• More qualitative services and products;
• An efficient organization, relieved of superfluous and unproductive tasks;
• Better operational performance;
• Reduced production costs;
• Reduced lead times;
• An offer adapted to customer expectations;
• More engaged employees;
• An increase in turnover.