Lean management is a philosophy that aims to
produce more with the least possibleinputs
, by eliminating all forms of waste. Waste is defined as anything that
does not add value to the final product
. It is based on a combined focus of management and workers to
minimize use of the main business resources
: land, labor, capital andtime. The main components of lean management are:
Just In Time
Total Quality Management
Time based management
Lean people managementHuman talent
is wasted if workers must perform narrow, repetitive jobs. To
and reduce this waste, lean producers use
empowerment, team workingand job enrichment
. Workers are trained so that they can
solve problems themselves
, without the help of specialist engineers. They are also trained in
spot and correct faults
that are developing before they get worse.
Teams meet regularly
to discuss ways to improve their operations (Quality Circles).
Lean approach to quality
In a lean system, each team is responsible for
checking the quality of its own work
. All workers have the power to stop the assembly line if they see a fault, so that
the errordoes not get passed on
down the production line, resulting in a faulty final product. Thus
quality control is no longer a specialized job
that takes place only at the end of production when the final product is checked; each worker checks the work hecompletes himself. This results in fewer final products having low quality. As a result, wastage is reduced, since
fewer final products are rejected
.Lean quality can be achieved through TQM, where each worker’s primary objective is to
achieve quality the first time round
, eliminating the need for reworking to fix errors.
Lean producers try to
products in the
least possible time
, toreduce the
risk of products becoming obsolete
. This is particularly important in fastchanging markets.
is a way of
integrating the separatedesign and engineering stages
, so they take place at the same time, instead of oneafter the other. This reduces the time taken to develop a product and start production.
puts workers under pressure to
make the right decision quickly
,helping to reduce development time.
Lean component supply
Lean producers try to develop good relations with suppliers, often having a singlesupplier instead of several. They discuss
new product developments
ideas and technical advice
regarding the use of raw materials. Thesuppliers will be aware of what raw materials the producer will require, and can planahead. When production begins, there is
less risk of failures
poor quality orlate deliveries of raw materials
. Thus good relations with suppliers help in
reduce the risk of wastage
due to poor quality raw materials.