Impact Of Lean Practices On Organizational Performance

Lean manufacturing is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment tools and less engineering time to develop a new product. A company becomes lean by continuously increasing its capacity to produce high-quality goods while

“Lean is a systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the **product at the pull of the customer in pursuit of perfection.” Lockwood [24].

The implementation of lean operations is one the most popular ways to improve efficiency and productivity in operations. This strategy has afforded many businesses the opportunities to streamline processes that resulted in improved systems and efficiency. However, many businesses face obstacles with implementing lean practices for various reasons such as unclear directions, employees that are resistant to change, and poor planning. Businesses that encounter issues with lean implementation must identify performance metrics to improve operational strategies. This paper will examine the obstacles businesses experience with lean implementation.

Lean Six Sigma is a methodology that creates processes within an organization to cut waste and improve the company’s performance. However, studies have shown that over the past decade applying Lean Manufacturing and Six Sigma can create problems for companies financially and potential problems for employees. Companies should take great care before implementing a Lean Six Sigma solution because in some instances, going lean can do more harm than good both financially for the organization as well as destroying employee loyalty and moral.

The lean philosophy centers on the elimination of waste in all forms in an organisation (Shpak, 2016). Lean is usually implemented by initially

As the article mentioned: lean is not mean. It promotes respect for people (both staff and customers – patients) while ensuring that the best work is being done, utilizing the less resources at a lower costs. Can be argued that people are one of the main resources for a Lean implementation.

70). The integration of Lean and Six Sigma can create a methodology that yield better result than what individual methods would achieve. Even though six sigma and lean have evolved from separate paths, there are many aspects that make the two approaches compatible. Combing lean and six sigma approach can provide the organisation with many benefits. Lean brings intuition and action into the organisation, enabling the workforce to carry out swift improvements via the kaizen events. This makes lean approach an important method of enhancing productivity, eliminating unnecessary process and changing culture. Six Sigma applies statistical tools to reveal the origin of defects. The two approaches are synergistic, even though they evolved from separate

Lean is defines the manufacturing philosophy that reduces the time between the shipping and customer demand, which based on the systematic method by eliminating waste, that means giving the customer what they want when they want it, and don 't waste whatever. Rahmana, Sharif and Esa (2013) suggested lean production is mentioned to improve the company 's performance from the philosophy in reducing waste in order. That means, lean system destination is the decrease cost by removing the non-value activities, which they are applying a category of tools and techniques for checking and eliminating defective in the production process. In the Evenort Company should emulate the five overriding principles of lean thinking in terms of implementing lean that there is guarantee the company has been driving correctly in the lean manufacturing (Cardiff 2015) as can show in table 1.

e. Introduction of Gewald to the shop floor workers and office employees to clearly communicate the initiative and the lean implementation objectives

Lean production, or lean manufacturing, is a philosophy adopted in the Japanese manufacturing industry to help the automobile industry improve its processes. Today, lean production has enlarged in many different repetitive manufacturing industries and other organizations (de Treville & Antonakis, 2006). For example, lean production is now common in the healthcare industry to improve the processes in hospitals. Since remaining competitive in the increasing global market is of upmost importance to many organizations, adopting a lean manufacturing philosophy could be the difference in obtaining a competitive advantage and surviving in a global changing economy (Abdulmalek & Rajgopal, 2006). Also, managers have come to view lean as a way to improve operation and organizational performance (Longoni, Pagell, Johnston, & Veltri, 2013). Therefore, the goal of lean production is to improve efficiency by getting rid of unnecessary processes or waste en route to delivering a service or product to the customer that is of great quality. Lean production attempts to add value to the customer by removing waste that does not add value. Since lean production is dependent on how well it is implemented in the organization, it will be important to see what effects, if any, lean production has on worker health and safety as

The application and implementation of lean principles or thinking is a process that requires commitment from every stakeholder in the organization. This process entails commitment to the organization's workers and to the system itself in order to make changes towards improvement. Generally, the implementation of lean thinking is geared towards continuous improvement through the elimination of waste. However, lean management or implementation of the principles sometimes incorporate mistakes that are made by leaders in the execution process. This is mainly because lean leadership appears to be simple though its complex because of the costs associated with it. The mistakes usually occur because of intrinsic complexities of exploring deeply into organizational philosophies, business strategy, psychology, and macroeconomics.

The Lean equation consists of the sum of three important elements which include, purpose, process and people. Dr. Bahri’s purpose of running a dental clinic was to maximize profits along with maximizing customer satisfaction (maximizing perceived customer value) and elimination or minimization of all sorts of wastes. Therefore, he defined his processes such that they would create an efficient value stream. And this would only be possible with the help of the third element, people, who helped him continually evaluate the value stream in terms of

Implementing lean into SMEs within Saudi Arabia manufacturing industries faces difficulties, while in larger companies, it is more likely to be implemented succesfully and gain the advantages of lean systems (Karim et al., 2011).

Lean Six Sigma can be termed as a program of process improvement that incorporates two ideas which are lean, and six sigma. Lean comprises of techniques for minimizing the time required to deliver services or products. Six Sigma comprises of techniques for refining the quality of services and products, significantly contributing to amplified satisfaction of the client. By incorporating them, Lean Six Sigma can be seen to be a proven strategy of business management that assists organizations in operating more efficiently. Many quality improvement experts and business analysts believe that this program is the most prevalent business performance methodology in corporate developments history (Taghizadegan, 2006).

Authors of the book Lean Thinking: Banish Waste and Create Wealth in Your Corporation, James P. Womack and Daniel T. Jones, focus on Lean thinking, the five principles of Lean with details on how to implement these ideals in their text. Additionally it provides evidence as to how creating a Lean factory will boost productivity and reduce inventories.