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1. LEAN MANAGEMENT
Maximizing customer value through
reduction of work wastes

2. Issues addressed by lean management
Prolonged
Cycle Time
Costly
Organization
Rampant
Wastage
Dissatisfied
Customers
and
Employees
Low
Productivity

3. Balanced scorecard
Balanced Scorecard
Perspectives
Financial Customer Business
Learning and
Growth

4. Balanced scorecard
The Learning and
Growth Perspective.
• The performance
metrics in the
balanced
scorecard will
trigger what
aspect needs to be
developed more
and what aspect
needs to be
sustained.
The Business
Perspective.
• External partners
are able to see the
picture out of the
box hence; will
have a better view.
They will be able
to decipher the
correct and timely
focus areas.
The Customer
Perspective.
• Customers must
not be studied
using a generic
approach.
Customers must
be clustered
according to
profile. Each
profile must
indicate the target
products and
services and how
to improve them
to satisfy the
customers’ needs.
The Financial
Perspective.
• These financial
reports will
provide ideas to
the key decision
makers on how
financial
prioritization must
be carried out.
Financial reports
must also relate
efficiency and
performance in
relation to cost
management.

5. Some alternatives to Lean Management
Six Sigma
•Six Sigma is based on variation theory. Variation here means difference in the
input process and the output of the process.
•Six Sigma is the method to get the knowledge of defects in the process to
eliminate the problem and hence improve the process as well as the products.
•For this it uses principles of business, statistics and engineering. Six Sigma can be
applied to various fields like production, sales, marketing and services extra.
Scientific
Management
• Scientific management is also called as Taylorism after its inventors name
Frederick Winslow Taylor.
•Taylor also talked about reduction of cost price and developed exact procedures
after studying individuals on work.
•He shifted the focus from labor to managers. He also believed in standardization
of one method of production for each job and selection of the labor on basis of
abilities required by a particular job.

6. Some alternatives to Lean Management
Fordism
•The name comes from its inventor Henry Ford. He believed that methods should
be found to reduce the cost price of the product so that it becomes cheaper and
easily affordable for the common man.
• He introduced concept of mass production and standardization. Standardization
of manufacturing process needed less skilled labor with each worker performing
the same task every day. He also invented moving assembly lines for this
purpose.
Theory of
constrains
•Was introduced by Eliyahu M Goldart. According to him if our business is not
doing well than there are some constrains that are stopping our business to
grow.
•He believed in identifying constrains and then eliminating these constrains. He
introduced the concepts of buffers; every system had its own buffer so that
when ever system braked these buffers may come in use and the production
would continue.

7. Lean management vs. Alternatives
Lean Management is customer-oriented management tool which was first used by Toyota in 1980
and is based on the concept that any resource that does not lead to value addition of product for
the end customers than, it is a waste because this value addition is reflection of the products
adaptability to changing customer demands.
The basic idea is to add more value with less work and less wastage. Now let’s compare the
alternatives with Lean Management.
All these alternatives are targeting an individual system for example Scientific method targets cost
reduction during production process; Theory of constrain focuses on operating systems of the
organization; while Six Sigma focuses on quality improvement of products . But Lean Management
toolkit focuses on overall process improvement.

8. Lean management vs. Alternatives
All the above alternatives need specialized training while Lean Management
can be applied immediately and does not require any specialized training.
Alternatives management tool requires well trained managers to implement
them, while in Lean Management the work force as a whole is responsible for
the improvement.

9. Seven Mudas
Over production: this means producing more than
there is demand in the market. This muda either
covers or highlights other mudas like inventory.
Inventory: long inventories of raw-material, finish
goods or work-in progress, is an investment without
return and is a liability for the producer.
Motion: has to do wear, damage or safety of the
products while handling by producer, worker or
equipment.
Waiting: waiting refers to goods that are not being
transported or processed.
Over Processing: that means more work being done
on a piece than required.
Transportation: This refers to danger and loss a
company has to suffer because of damage, lost or
delay. Transportation is a muda because it means
cost without any value addition.
Flaws: Any quality issues or flaws can subject the
system to rework on whole plans eying the cost
minimization.
Flaws
Motion
Over
Processing
Waiting
Transportation
Inventory
Over Production

10. Lean Management Principles
1. Add Value
2. Shift Focus
3. Delay
Commitments
4. Discourage
Departmental
Evaluation
5. Adapt to New
Change

11. Success Factors Of Lean Management
Goal
Involvement
Approach
Workers
Communication
Metric
System
Plan

12. Companies Implemented Lean Management
Toyota
Motor
Company
Lean
Management
eflexgroup.com
CIGNA Group
Bechtel
Starwood
Hotels
Corporation
&
Resorts
Worldwide, Inc.

13. Considerations Of Lean Management
Benefits
Limitations Tools

14. Checklists for Lean Management
Waiting
•The waiting analysis involves the process of finding out whether the various tasks could be
executed as parallel activities, instead of serial activities. It would be obvious that parallel
activities reduce waiting and implementation time substantially, compared to serial activities.
Transportation
•Transportation solves the issue of people moving the products from one operation to the
next one by configuring the process to automatically move the products from one stage to
another. This reduced the manpower and reduces transportation time.
Processing
•Processing analysis considers the point whether it is possible to combine multiple tasks into
compact units or whether any processes can be totally eliminated.
Motion
•This factor decides whether the process aids like new equipment, special tools, and fixtures
would help in speeding up the processes, thereby reducing the total production time.

15. Checklists for Lean Management
Poor Quality
• Poor quality assessment deals with the use of mistake-proofing to
reduce errors, defects or reworking or eliminate them completely.
Inventory
• Inventory estimates are done periodically to keep the inventory at the
lowest minimum or to operate without any inventory. Studies reveal that
many organizations keep inventories of several items on just-in-case-needed
basis and these inventories are rarely used.
Overproduction
• The analysis of overproduction indicates whether the production is
aimed at maintaining certain finish product inventory levels or whether
the production is geared to produce only to the extent of order-in-hand.
This usually results in considerable savings for the organization.

16. 5s/6s Checklist
Sort. The sorting helps the organization to separate the useful processes,
inventories, motions, transports, etc. from the unnecessary. The sorting
ensures that only the spares, tools, parts, and instructions absolute necessary
for the process in a particular work area remain there, while all other
redundant items are removed from the area.
Straighten. Straighten is the implementation of the principle that everything
has its own place in a work area and everything should remain in its allotted
place. This principle could be achieved by creation and display of visual
scoreboards, floor paints, Jidoka lights, kanbans, and other methods of visual
control.
Sweep. Sweep and shine is the program through which the workplace is kept
in a spic-and-span shining level through sweeping, scouring, washing,
scrubbing, rinsing, and painting.

17. 5s/6s Checklist
Standardize. In standardization phase, routine cleaning of the work area is made as a
way of life. Performance of preventive maintenance, with the planning, scheduling, and
maintaining controlled by the central maintenance department. At the same time, each
work center also undertakes its own routine maintenance as much as possible with
select people in the work center trained to do this.
Sustain. Sustenance is another routine practice implemented in all lean management
5S/6S work places. All the root causes of wastes and defects are identified on a routine
and regular basis for eliminating them or dealing with them through appropriate
solutions. It is necessary that the management, supervisors, and ground level
employees are fully familiar with the 5S and lean practices and methods.
Safety. The organizations that adopt 6S instead of 5S include all safety issues and
addressing them in proper fashion as the sixth principle in lean management. The
safety practice is a standard and routine work audit that includes the 5S principles
along with the areas related to safety and ergonomics.

18. Other Aspects Related to Lean Management
Quality Function Deployment
Process Failure Modes and Effects Analysis
Fool-Proofing
Statistical Process Control
Taguchi
Shainin
Kanban

19. Quality Function Deployment
Design Requirements
Critical Parts
Characteristics
Key Process
Production
Requirements

20. Conclusion
Lean management is the process through which
customer value is maximized by the reduction of
wastages in work process.
The major techniques adopted in lean
management are workplace redesigning, total
productive maintenance (TPM), total quality
management (TQM), and Just in Time (JIT).
When wastes are eliminated, efforts, defects,
costs, and time spent in processes are also
automatically reduced.
This leads to higher revenues, larger customer
base, and enhanced employee motivations.
The major thrust areas addressed by lean
management are low productivity, prolonged
cycle time, total organizational expenses, rampant
wastages, dissatisfied customers, and disillusioned
or alienated employees.
When companies implemented lean
management, the average gains in productivity
were around 25%, wastages were reduced by
even 90%, floor space shrunk by 50%, and travel
distances inside the organizations were cut down
by 75%.