What is lean?
Lean is a culture, a way to manage your business. It basically means “work smarter, not harder” and achieve more with less resources. It was created almost 100 years ago and was the basis for the success of the automotive industry. It is now used in almost every industry, effectively helping manufacturing companies and service providers optimize their operations.
Lean is:
- culture of work and management
- continuous improvement
- small creative ideas
- fully using the potential of existing resources
- method for operational perfection
- achieving better results with less resources
Lean is NOT:
- idea for job reduction
- single project
- costly solutions
- set of tools
- method only for cost reduction
- way to take responsibility off the board
How does it work?
The main idea of lean management is to achieve more value-added activities in the process by reducing waste.
While many companies still focus on producing more and faster ( to add more value add – green color), lean companies mainly focus on getting rid of waste. Pic.1
Shorter process means less
- Complains
- Errors and corrections
- Inventory
- Waste
After lean implementation improved:
- Efficiency
- Motivation
- Engagement
- Communication and relationships
Lean turns the company structure upside down. In a typical organizational structure, adding value is at the bottom. In lean companies, it is placed at the top with the rest of the company supporting it and helping to efficiently deliver added value to clients.
