Why do work organizations implement lean methods?

- In order to generate innovation [Kettering University, 2016]

 An innovation survey from the BCG (Boston Consulting Group) in 2015 found that 79% of
respondents ranked innovation as a top 3 priority at their company and see lean
production essential to this transformation
 The iPhone is a “disruptive innovation” but also a case study for the so-called idea of
“lean innovation” where employees at all levels contributes to these breakthroughs,
while also putting focus on a lean corporate environment.
 Nike is also another example as their “lean innovation” is key to their ongoing success
and market leadership
 Employees everywhere within Nike understand that each one of them are individually
responsible to lean practices and innovation
- To promote sustainability [Hartini, S., and Ciptomulyono, U., 2015]
 Goal of “lean manufacturing” is to respond swiftly to customer demand by reducing
waste and improve efficiency
 Efficient procedures and waste reduction efforts are positively related to pollution
reduction through synergies of lean tools and techniques that strive in the work
environment
- Implemented as a way to maintain competitive market position [Womack, P.J., and Jones,
T.D., 1994]
 The Japanese as a society have stressed the needs of the company. Many emerging
Japanese companies are incrementally generating novel innovative products and
processes
 However, incumbents such as Sony have had no dramatic breakthroughs- hence they
have to defend their competitive position by adopting lean techniques to cut costs in
increasingly competitive and mature product lines

How do work organizations implement lean methods?

- By developing closer management and worker relationships

 Lean production calls for closer management and worker relationships [Rand, no date]
 Lean production supplier relationships must replace traditional relationships
characterized by insecurity and distrust.
 Trust between management and workers has seen to alleviate difficulties with
simplifying job classifications and even lead the union to become a helpful force for lean
implementation
 However, there is a problem to this transition to a leaner and more productive plants-
i.e. not as many production workers will be needed. Usually, lower costs will be
associated with the competitive advantages derived from lean manufacturing but layoffs
will most likely occur
 Hence, without employment security, workers are unwilling to participate in
productivity improvements in the plant- which leads to the next point: a more flexible
workforce.
- Lean HRM allows the work organization to maintain a flexible workforce/staff training
[Rand, no date]
 In lean production system, there is a higher possibility of a flexible workforce- where
workers are responsible for checking their own quality of their output and as such but
 also need training. For example, If particular employees are given the responsibility for
routine machine maintenance, they must be trained to do this.
 With well-trained workforce and few job classifications, production workers are able to
be reassigned and rotated to different processes as needed by the factory.

How does lean production compare with traditional mass manufacturing?

- Lean production is much more cost effective than mass manufacturing [Forza, 1996]
 Okay, so the typical mass manufacturing systems are Fordism and Taylorism
 -* Fordism is the term widely described the system of mass production that was first
pioneered in the early 20th C by the Ford Motor Company/Henry Ford
 -*Taylorism is the scientific efficient methodology that analyzes and synthesizes
workflows.
 Compared to Fordism and Taylorism, “lean production” requires less stock, less space,
less movement of material, less time to set up the machinery, smaller workforce, fewer
computer systems and better technologies- that overall it just makes the lean system
more efficient and cost-effective

- Lean production requires more ‘soft skills’ and less in traditional mass production [Sterling,
A., and Bocall, P., 2013]
 Lean production call for particular application of soft skills that are not applied in
traditional mass production, including technical skills and associated capabilities with
‘soft skills’ such as greater team-working and interpersonal communication.
 As a result, employees in lean production systems are reclined to maximize productivity-
so, instead of the optimal way to complete a single individual operation, lean production
develops operations towards a “one best way” systemic approach which can be applied
across operations in the whole factory.
 Nevertheless, despite the possible exploitation and empowerment approaches that can
be argued in a lean production system- a proactive union approach can help defend
workers’ well being, empower themselves through collective action under lean
production just as in mass production.

Kettering University (2016) Lean Manufacturing and the Link to Lean Innovation [online] Available at:
https://online.kettering.edu/news/2016/07/05/lean-manufacturing-and-link-lean-innovation
[Accessed 31 January 2018]

Hartini, S., and Ciptomulyono, U. (2015) The relationship between lean and sustainable
manufacturing on performance: literature review [online] Science Direct. Vol.4. 38-45. Available at:
https://ac.els-cdn.com/S2351978915011282/1-s2.0-S2351978915011282-main.pdf?_tid=dd8d6c4a-
07a6-11e8-967f-00000aacb361&acdnat=1517527570_8a126ca1a83a65500d086e33f95aee48
[Accessed 31 January 2018]

Womack, P.J., and Jones, T.D., (1994) From Lean Production to the Lean Enterprise [online] Harvard
Business Review. Available at: https://hbr.org/1994/03/from-lean-production-to-the-lean-enterprise
[Accessed 01 February 2018]
Sterling, A., and Boxall, P., (2013) Lean production, employee learning and workplace outcomes: a
case analysis through the ability-motivation opportunity framework [online] Human Resource
Management Journal, Vol.23, p.227-240. Available at:
http://onlinelibrary.wiley.com/doi/10.1111/1748-8583.12010/pdf [Accessed 01 February 2018]

Forza, C., (1996) Work organization in lean production and traditional plants. What are the
differences? [online] International Journal of Operations and Production Management. Available at:
http://www.emeraldinsight.com/doi/pdfplus/10.1108/01443579610109839 [Accessed 01 February
2018]

Rand (no date) Making It Work- Lean Human Resources Management [online] Available at:
https://www.rand.org/content/dam/rand/pubs/monograph_reports/MR1325/MR1325.ch10.pdf
[Accessed 01 February 2018]