Definition and importance of lean management

It is an approach to manage and organise work that aims to improve company’s reputation and
performance. Holding total control and work processes and keeping spotlights this also
encourages responsibility and shared leadership.
Why is lean management important?
It helps in align production with customer satisfaction and reducing waste to increase efficiency.
Also depending on specific organisation, it is also referred as lean production, Operational
excellence or lean manufacturing. It also reduces lead time and costs and increase team
productivity also better management of changing priorities.
6 benefits of Lean Management

 A decrease in Cost: it is all about maximising profit, reducing inventories and cutting
errors and scrap by as much as half and efficient Manufacturing improving quality and
eliminate waste.
 Improved customer interactions: it is an opportunity for improving and advancing your
relationship and profitable key information our previous interaction and efforts set the
stage for productive relationships.
 Utilisation of Push and Pull: refers to dynamics between customer and supplier it may
be internal or external. Supplier push products to their customers by explaining all the
processes and Pull products from suppliers by placing orders.
 Increased Quality: is all about being paid to details. The main aim is to reduce the
defects and produce new products. It is all about avoiding mistakes by which we can save
time and apply that on making new products and money needed to pay to workers.
 An improvement Culture: if we understand the importance of this management and
enact the strategies then new probability begin to take over company. We need to
introduce team to lead management that create culture to value daily improvement.
 Increased Employee Morale: it is attitude satisfaction and overall outlook of employees
and their organisation. High morale Employee is satisfied and motivated at workplace
usually which tends to higher Morale than their counterparts.
Disadvantages of Lean Management

 The Problem of inventory: to decrease carrying cost low amount only stocks are kept
which causes companies to depend on suppliers and ask to adjust to deliver goods
quickly. If delays in inventory processes it cost companies to wreck.
 Difficult to change over: they are not allowed to lean management practices, and this
will takes a lot of patience and a complete work processes only tenure workers is
comfortable in it.
 High Implementation Cost: is never using products before to use it ,it is usually that all
production processes will end their current work which cost companies High expense and
increased cost of new equipments and training programs.
 The temptation to over structure: is determined what needs to be incorporated into lean
management. Managers can push processes by which they can understand the impact of
incremental changes. Maintain emergencies can reduce your production throughput. Staff
can also absorb new work and react as soon as possible to change in customer’s demand.