Lean Management Is A Method Of Running A Business

The lean philosophy centers on the elimination of waste in all forms in an organisation (Shpak, 2016). Lean is usually implemented by initially conducting training, initiating pilot projects and implementing changes (Poksinska, 2010). Some of the benefits of lean implementation includes: improves quality and safety; improves staff moral; improves throughput; improves delivery and helps in cost reduction (Jones and Mitchel, 2006; NHS Institute for Innovation and Improvement 2007). The challenges of lean implementation include: resistance to change and lack of team work; limited communication and leadership and staff having less knowledge of the lean concept (Grove et al., 2010; Halling and Wijk, 2013 and Poksinska, 2010). This research is to explore some challenges of

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

“Lean means creating more value for customers with less” (Krejewski, L., Ritzman, L.P., & Malhotra, M.K., 2013). Implementing this into a project can make the project very successful at a lower rate of cost and time. There are five steps in allowing the lean process to work successfully. This process is easy to remember but not always easy to achieve. Specifying the value from the customer’s point of view of the product that the customer is interested in purchasing is the first step. Identifying all the steps of value for the product the customer wants to purchase and eliminating the steps that are unnecessary is the second step. Creating a sequence of steps that flow in a consistent fashion and will flow smoothly toward the customer is the third step. Introducing the flow of the product that the customer is interested in purchasing and allowing the customer to pull value from the product is the fourth step. The fifth and final step in the lean technique process is “as value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste” (Lean Enterprises Institute, 2015).

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.

Lean is an approach that can be used in every organization to increase customer satisfaction, decrease costs, improve quality, and increase the output, by eliminating waste and creating value (Manos & Vincent, 2012, p.1).

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.

Lean Manufacturing logic, tools and techniques were developed by many industrial innovators in the 19th and 20th centuries but it was mostly popularized by Toyota 's successes with Lean after World War II. Lean is all about economy of motion and the reduction of waste in any business. Most of the Lean concepts are part of Industrial Engineering curriculum offered by many colleges and universities.

The core objection behind lean systems is to maximize customer value while minimizing waste. Basically, lean is defined by using fewer resources in order to make a perfect value for customers. How lean systems work, they use a highly skilled workforce and flexible equipment in order to make some advantages. Such as mass production which is the high volume and low unit cost. And craft production which is the variety and flexibility, this will help eliminate waste for the producer and consumer. Luckily, this approach has drawn attention to other services. For example, lean systems aren’t only suitable for manufactures but also health cares, offices and shipping and delivery. The misconception that lean is a tactic or cost reduction program is not necessarily true, but it is a process of thinking and acting for the entire company. In order to accomplish lean system thinking changes must refrain from management optimize separate technologies, assets and vertical departments.

Lean is the elimination of waste. Customers do not want to pay for waste they want to a good product at a reasonable cost. Waste is waiting, waiting for paint to dry, waiting for material to get from one process to another. With the elimination of waiting, more time is focused on the production process. It is also inefficient transporting of material to and from the production facility. It is in shipping trucks half full or calling the truck back because of missed or delayed shipments. The third is over production. Overproduction generally occurs when yields are poor and if the customers’ needs are to be met, more material than what is required to fill the order is processed. Over production can also occur when the forecast is inaccurate or, constantly changing. Forth is the production of defects or, continuing to making errors and mistakes. Customers do not want to pay for mistakes and it leads to over production and poor customer service. Next is unnecessary movement or motion.

Lean manufacturing is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for. The goal of Lean is to becomes the creation and maintenance of a production system which runs repetitively, day after day, week after week in a manner identical to the previous time period. Lean is actually the set of "tools" that assist in the identification and steady elimination of waste. As waste is eliminated quality

Lean is a conspicuous theory and application which expects the use of a wide range of assets for any reason, other than the production of significant worth for the end client to be inefficient, and subsequently an objective for prohibition. The theory and mindset communicated by an arrangement of standards, supplemented by various devices and systems helps for waste abolition, equipped execution change, stock diminishment, and ideal quality level to the end clients. It is one of the principal and far reaching ideas that add to organizations everywhere throughout the globe to increase upper hand and thrive on the global market. (Čiarnienė & Vienažindienė, 2015)

Through this concept of ‘lean’ to reduce waste and the many tools of lean production there are plenty of advantages to observe such as:-

The lean production philosophy is currently widely applied globally in industries such as the process industry, aerospace industry, furniture manufacturing, the textile industry, hospitals, government agencies, and the service industries. But, there are some principles that need to be followed in order for companies to become lean. There are

Fundamentally, Lean is about eliminating waste. Some waste is unavoidable, but the objective is to identify all activities that are non-value-added, and reduce as many as possible. General examples of waste include over-producing, waiting, defects/ rework, over-processing, inventory, motion, and transport. A few specific examples of waste sometimes found in financial services include:

Lean is a process where creating more value to customers by minimizing wastage, time with less resources. Lean organization understand the customer value and try to increase proceed which adding more value to the business. In order to accomplish the lean thinking