What is Lean Management, Principles and How it helps in Eliminating Waste?

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What is Lean Management?

The term lean management is widespread across every sector. It’s an approach to conducting a company that supports the notion of continuous improvement. Lean Management utilizes methods for eliminating variables that waste money, energy or time. Lean management principles are derived from the Japanese manufacturing sector and include:

  • Delivering value from your client’s perspective
  • Identifying each step and eliminating.
  • Continuous improvement
  • Repeating the three measures constantly

DOES SIX SIGMA TRAINING COVERS LEAN?

Sigma is a mathematical term that measures a process deviation from perfection. The lean process eliminates every aspect that doesn’t add value to your business. Lean management encourages shared responsibility and shared leadership. In every environment where wastes can be seen, the process of lean is workable.

Six Sigma is a management philosophy focused on making continuous improvements and bringing improvements into various processes. The DMAIC concept drives the six sigma process. Six Sigma green belt certification teaches the five stages of DMAIC, to apply in the organization. Lean can be applied to any sector either it is manufacturing as well as service industries.

The major Principles of the lean Management process are:

1. To Identify the Value:

The main factor that differentiates to competent organizations is the way they want to solve their problems. The customers are willing to pay where the organization is more likely to fix the problem faced by the.

The lean process adds value by solving the problems, and the customer itself adds the definition of the value.

2. Create un-breaking Workflow:

The principle of the lean process is to maintain the workflow of the organization. The interruptions and the bottlenecks may appear at any point in time. The process breaks down the work in small batches, which is helpful to understand the red blocks of the process and continue with the workflow.

3. Continuous Improvement:

The lean management system of the six sigma certification, should not be static. It should be continuous. The process of improving your good or service must be included in your action plan. The competitive differences that you got with your competitors must be identified, and that is the point where you can implement your improvements.

HOW LEAN MANAGEMENT ELIMINATES WASTE?

The lean approach is focused on eliminating waste from the manufacturing process. The initial lean management process was implemented to manage the costs. It was always focused that the production process must not reach the bottom line of the production.

To eliminate the wasteful activities which eat the money and time of an organization, the company must account for at every stage of the manufacturing process. No customer is willing to pay for the waste. Eliminating waste increases productivity and revenues. The product which is free from waste becomes more standard and gets improved in quality.

The lean management process also eliminates the waste of time. The gap of lead times get shorten, and thus the company can increase its productivity.

THE AREAS OF WASTE:

Waste can be anywhere in a process which doesn’t add value to the organization. Lean management training focuses on teaching you the methodologies, on cutting off the things that don’t contribute anything to your bottom line. The ultimate goal of the lean management process is to eliminate waste from the process. Which might sound a bit impossible but still that must be the ultimate target. The major areas where the wastes can be controlled are:

Overproduction: To utilize the workforce or resources, most of the time companies are tend to overproduce their products. The stock is then transported to their warehouses. The best way to deal with the waste is to reduce the hours of the employees if the work is done.
Transportation: The cost an organization pays for its transportation might sound shocking. The lean six sigma training teaches how the cost-cutting may stop the waste in this particular segment. Offices must use the business process integration to stop huge wastage in transportation. Automated processes and integrated software application also help the process to be more effective.
Inventory: Any inventory that is not directly related to the customers’ needs is completely a waste. The production of an organization must be more focused towards manufacturing according to customer’s demand.