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Lean management is a holistic management approach used to increase productivity and efficiency in companies. It is based on a systematic approach that uses various methods and techniques to optimize resources, eliminate waste and improve company performance. Lean management is an approach based on the principle of "zero defect production". This means that every production process is designed in such a way that, as far as possible, no errors occur. The aim of lean management is to optimize processes in such a way that as much added value as possible is achieved. By concentrating on the essentials, both product quality and production time are to be drastically improved.
The lean concept has its roots in the Toyota Production System (TPS), which was developed after World War II – particularly in the 1950s and 1960s – by Taiichi Ohno and his colleagues at Toyota. From the outset, the aim was to reduce costs, increase efficiency, and improve quality in order to achieve greater customer satisfaction. Toyota established methods such as just-in-time and jidoka, which made it possible to achieve high production flexibility and quality with minimal effort. These principles enabled Toyota to achieve exceptional quality and customer satisfaction at lower costs – a core promise of lean management. Originally developed in the automotive industry, the lean approach is now used in manufacturing, retail, the service sector, and even in areas such as healthcare and public administration. Its universal principles—customer focus, waste reduction, and continuous improvement—can be applied across industries, which explains the enduring popularity of this concept.
A basic principle of lean management is to place customer benefit at the center of all decisions. To achieve this goal, companies must identify and analyze processes that do not directly contribute to the customer's benefit. These procedures should be eliminated or modified to create more value for the customer. In addition, lean management calls for continuous improvement of processes in the company - both in terms of quality and efficiency - instead of everything revolving around a one-time increase in profit.
Lean management is thus a very effective method for companies to improve their cost efficiency and performance in the long term. It not only helps you reduce waste and save costs, but also increases your company's overall performance and customer satisfaction. [2]
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Lean management is a component of modern business management and originally comes from the automotive industry. The idea behind it is to manufacture or provide as many products or services as possible with as little effort as possible. By adhering to "lean" principles, efficiency is to be increased and product quality improved.
Lean management focuses on a holistic view of the value stream (from the manufacturer to the end customer) to identify potential for optimization. The value chain from the manufacturer to the end customer is examined with regard to optimization requirements. Measures are then developed to address these optimization requirements. In practice, this often means reducing unnecessary intermediate products, material stocks, or other inputs to avoid overproduction. In this way, only what is actually demanded is produced.
Lean management is an increasingly popular concept in modern business management. The concept of lean management was originally developed in the automotive industry and has since spread to many other areas. The roots of lean management lie in the Toyota production system, which emerged in the 1950s. However, it was not until the late 1980s that “lean” was recognized and described as a management approach in its own right, and it has since spread to companies of all sizes and in all industries worldwide. Lean management has since become a widely used method in companies of all sizes and industries.
Overall, the above basic principles of lean management provide the basis for more efficient working in any company - both in terms of personnel and the production process - and help to achieve resource savings and increased sales in equal measure. [3]
Lean management is a collection of methods, techniques and strategies aimed at conserving resources and increasing the value of products or services to customers. Lean management works by eliminating redundant steps and activities and replacing them with a more efficient process. The goal is to reduce costs and shorten delivery time while improving quality.
The lean management principle is based on the kaizen philosophy of continuous progress. It encourages companies to regularly review processes using quantifiable metrics and to continuously adapt to the needs of their customers. Lean management involves both technical and cultural change. It is therefore often referred to as a "culture of progress".
There are many different tools and techniques that companies can use to implement lean management. These include just-in-time (JIT) production, kaizen events, and visualization techniques such as kanban boards. These methods help companies identify and eliminate inefficient workflows and optimize resource utilization.
The success of lean management depends heavily on the introduction of a culture of engagement - a culture, in other words, in which every member of the team can share their ideas and these are valued. Only in this way can companies implement the right tools and successfully implement labor-saving measures.
Lean management is a powerful tool in the area of operational performance improvement for companies of all sizes. It offers many benefits - including higher productivity, reduced costs, better quality standards and increased customer satisfaction - but it is only worthwhile for companies that are willing to engage in change processes. Although it can be difficult to bring about change - in the end it is always worth it! Those who have the courage to implement Lean Management methodology in their company will be rewarded in the long run - both monetarily and qualitatively! [4]
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Lean management is a dynamic strategy that focuses on improving productivity and efficiency. It pursues the goal of conserving resources and minimizing waste. To achieve this, various tools are used that are based on the principles of lean management.
The following principles are particularly important for lean management:
These are just some of the tools that can be used when applying lean management. However, each of these tools requires its own specific application strategy to achieve the best possible result for your company. Therefore, it is important to be aware of all aspects of lean management before choosing one of these tools. This way, you can ensure that you implement the right key strategies to achieve the most effective lean management results. [5]
Kaizen is a central component of the Japanese management philosophy Lean Management. The idea of Kaizen is based on continuous improvements that are made in a company. These changes are intended to help increase the efficiency and productivity of the company through small but continuous steps.
The goal of Kaizen is to constantly improve the processes in the company and thus ensure the company's competitive advantage. The idea is that each change in the company is a tiny improvement, but these small increases together over time produce significant results.
There are 5 main concepts of the Kaizen:
With the help of all these methodologies, it is possible to identify cost-saving opportunities in record time and to exploit revenue growth potential. As a result, Lean Management offers tremendous benefits to companies of all sizes and types - especially those that want to maximize profits without having to invest unnecessarily in new technologies or hire new employees. In conjunction with other strategies such as Six Sigma or BPR (Business Process Reengineering), Kaizen can help to create an efficient system for identifying problem areas in companies and thus provide long-term benefits for the organizational units involved. [6]
The Continuous Improvement Process (CIP) is a central component of Lean Management. The aim is to continuously optimize existing processes in production and organization. This involves continuously analyzing, evaluating, and adapting processes. CIP is based on the Kaizen philosophy and can be implemented both at the company level and within teams.
The focus is on the PDCA cycle, which comprises four phases:
Some CIP approaches include additional steps:
Just-in-time production systems (JIT) are an essential part of lean management. Just-in-time means that products are only pre-produced as they are actually needed. This prevents unnecessary resources from being wasted. In addition, changes can be responded to immediately as needed, which significantly improves quality.
Another advantage of just-in-time is that there are no storage costs. As soon as a product is finished, it is delivered immediately to the customer. This not only saves money, but also time. [8]
The pull system is a central part of lean management and an efficient way to plan production. It is based on the principle of demand orientation, where each process responds to the previous demand. The pull system is often considered the counterpart of the push system, which promotes predictability by planning ahead.
In the pull system, the necessary materials are only produced or called off when they are needed. In contrast to push systems, the call-off takes place directly via the sales order and not via forward planning. It therefore focuses more on the customer's needs and enables more flexible production. In addition, inventories are reduced, resulting in cost savings.
The Pull system is ideal for companies whose products are manufactured in short cycles and need to be highly personalized. Its focus on customer needs makes it particularly suitable for companies that need to monitor rapid changes in the market or anticipate new trends.
Another advantage of pull systems is the mitigation of the occurrence of misproduction and overproduction. Because it is based on the customer's actual needs, there is no risk of producing more materials than are actually required or of having to interrupt production cycles to remove excess materials. The risk of bottlenecks and irregularities in production can also be reduced.
Conclusion: The pull system is a more efficient method of lean management than the push system and offers many advantages in terms of saving costs, minimizing misproduction and overproduction, and flexibility in production planning. It is therefore particularly well suited to companies whose products need to be personalized frequently or who need to react quickly to changes in the market. With the pull system, processes can be designed more effectively and risks can be reduced - all with customer benefits in mind! [9]
The implementation of Lean Management usually involves the implementation of the Six Sigma methodology. This methodology typically follows the DMAIC cycle with five phases: Define, Measure, Analyze, Improve, and Control. In each phase, specific actions are taken to optimize business success.
There are several types of lean management tools that can be used to apply this methodology. Some commonly used tools are 5S systems (sort, structure, clean, standardize and sustain), Kaizen (continuous improvement) and Kanban (just in time production). These tools help simplify processes and reduce waste.
Another method within the framework of lean management is the Six Sigma concept. Six Sigma is a systematic method for troubleshooting and improving processes with the goal of maximizing customer satisfaction. Six Sigma uses statistical analysis techniques to identify problems and develop proposed solutions. Using these techniques, companies can identify deviations from the standard and optimize their processes.
Lean management offers many advantages for companies - it reduces costs, improves quality as well as efficiency and creates better customer experiences. As a result, it significantly increases the company's profitability in the long term. However, in order to set up a successful lean management system, everyone involved must be familiar with the basic principles of the system as well as the various tools and methodologies. [10]
The 4-step Plan-Do-Check-Act (PDCA) cycle is an important part of Lean Management. It is a kind of quality circle and helps companies to solve problems, improve their products and optimize their processes.
The PDCA cycle consists of four phases: Plan, Do, Check and Act. Each phase has a specific purpose and is intended to help achieve continuous improvement and avoid errors.
The 4-step PDCA cycle is a powerful method for continuous improvement in companies of any size and in any industry. The cycle helps companies find creative approaches to solve problems as well as develop more efficient workflows and successfully implement long-term change processes. [11]
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[1] Lean Management - Gabler Wirtschaftslexikon: wirtschaftslexikon.gabler.de/definition/lean-management-37747#:~:text=Unter%20Lean%20Management%20wird%20ein,f%C3%BCr%20die%20gesamte%20Unternehmensf%C3%BChrung%20herbeizuf%C3%BChren
[2]link.springer.comchapter/10.1007/978-3-658-31240-4_15#:~:text=Einf%C3%BChrung%20Lean%20Management%20,Ber%C3%BCcksichtigung%20und%20Einbindung%20der
[3] Bertagnolli, F. (2020). Einführung Lean Management. In: Lean Management. Springer Gabler, Wiesbaden
[4] Definition und Methoden: ifm-business.de/aktuelles/business-news/was-ist-lean-management-definition-methoden.html
[5] The PDCA Cycle: businessmap.io/lean-management/improvement/what-is-pdca-cycle#:~:text=What%20Are%20the%204%20Steps,of%20the%20PDCA%20Cycle
[6] University of North Carolina – Comparing Lean and IHI Quality Improvement: med.unc.edu/ihqi/wp-content/uploads/sites/463/2017/09/IHIComparingLeanandIHIQIWhitePaper.pdf
Lean Definitions – Pawley Lean Institute, Oakland University
oakland.edu/lean/resources/definitions/
Tauber Institute for Global Operations – Lean Glossary: tauber.umich.edu/sites/default/files/documents/rapid_plant_assessment_glossary.pdf
[7] Kontinuierlicher Verbesserungsprozess: qz-online.de/a/grundlagenartikel/der-kontinuierliche-verbesserungsprozess-316343
[8] Just-in-Time-Lieferung: whk-controlling.de/wissen/just-in-time-lieferung?utm_source=chatgpt.com
[9] Was ist ein Pull-System: businessmap.io/de/lean-management-de/pull-de/was-ist-ein-pull-system
[10] Six Sigma: leansixsigmainstitute.org/lean-six-sigma-in-manufacturing-reducing-waste-and-enhancing-quality/#:~:text=In%20the%20fiercely%20competitive%20landscape,waste%20and%20elevating%20product%20quality
[11] The PDCA Cycle: businessmap.io/lean-management/improvement/what-is-pdca-cycle#:~:text=What%20Are%20the%204%20Steps,of%20the%20PDCA%20Cycle
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