Lean management is based on customer focus.
Lean management is a business management methodology that is based on continuous improvement . Its purpose is to minimize costs and increase profitability through greater efficiency in all processes.
Lean management is considered an evolution of the system called lean manufacturing , which aims to reduce production losses while increasing the generation of value for the customer. Lean manufacturing, in this framework, seeks to eliminate unnecessary procedures, waiting time, transfers and overproduction, among other issues, while encouraging the creativity of workers.
Origin of lean management
The origin of lean management (usually translated as "lean manufacturing" ), therefore, is associated with the emergence of lean manufacturing. The Japanese engineer Taiichi Ohno , who working for Toyota, warned about the importance of not wasting resources in production, is identified as a pioneer of lean manufacturing. After World War II , Ohno studied the ideas of Henry Ford and Frederick Taylor and focused on avoiding unnecessary processes, managing limited inventories, and giving control to the customer to support the value chain.
Since the decline in American automobile production in the second half of the 1970s , attention in that country began to be paid to the Toyota production system and other Japanese firms. In this context, James P. Womack published a book where he coined the idea of lean manufacturing as a set of techniques and measures for the elimination of operations that do not add value, thus lowering costs and adapting to market changes without wasting resources. .
Once lean manufacturing was consolidated, lean management emerged as an extension of it. Specifically, lean management takes its pillars considering that they are not exclusive to the automotive industry or even the industrial sector, and taking into account that they can be applied beyond large companies.
Quality management is very important in lean management.
Main features
Today we talk about lean culture to refer to the implementation of lean management in all sectors of the economy. Its pillars, as we have already mentioned, are continuous improvement ( kaizen ), waste elimination (muda) and value delivery according to the customer's perspective. The Japanese word 'muda' , in this framework, refers to that which does not add value to the final product.
Lean management, in this way, leads to a constant review of processes to achieve optimization . It does not aim at centralized control, but rather promotes individual responsibility and seeks shared leadership. In this sense, it should be noted that one of the principles of lean management is that good ideas can be generated at all hierarchical levels and not only at the top.
As a summary, it can be stated that lean management has the objective of eliminating business activities that increase costs and do not add value for the customer . Simultaneously, this model or system aims to improve efficiency and develop human resources (promoting employee empowerment). Its purpose is to move towards total quality (TQM) .
Production flexibility, reduction in delivery time (lead time), process standardization and supply chain optimization are other pillars of lean management.
Lean management encourages employee empowerment and participation.
Benefits of lean management
Lean management provides benefits with its own implementation, as long as its guidelines are applied correctly. As we have already seen throughout this article, the search for efficiency and optimization in the use of resources work as guides in all activities.
Through standardized work practices and autonomization (jidoka), among other measures, just-in-time (JIT) production can be achieved. This reduces inventories and storage and transportation costs. Lean organizational culture also appeals to visual management through kanban (signal system) to save time and minimize waste. Reducing the complexity of procedures is another premise.
The self-managed work teams that lean management encourages, on the other hand, help take advantage of the potential of all members of the company. The implementation of employee suggestion systems is useful to find solutions to different obstacles, which does not depend exclusively on the vision of managers to achieve improvements.
Since lean management is aimed at building value from the customer's perspective, it is key to take different KPIs (key performance indicators) and examine them. A value analysis is essential to know what to adjust or modify and thus maximize the satisfaction of the buyer or end user .
The improvement in efficiency and productivity and optimization in the use of resources, ultimately, results in a reduction in costs, an increase in profitability and greater flexibility to adapt to market demands. Therefore, lean management strengthens performance and contributes to the sustainable development of the company.