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1.
Lean management is an approach to running an organization that supports the concept of continuous
improvement, a long-term approach to work that systematically seeks to achieve small, incremental changes in
processes in order to improve efficiency and quality.
Lean management seeks to eliminate any waste of time, effort or money by identifying each step in a
business process and then revising or cutting out steps that do not create value.
History
Transport (moving products that are not actually required to perform the processing)
Inventory (all components, work in process, and finished product not being processed)
Motion (people or equipment moving or walking more than is required to perform the processing)
Waiting (waiting for the next production step, interruptions of production during shift change)
Over Processing (resulting from poor tool or product design creating activity)
Lean services[edit]
Main article: Lean services
Lean, as a concept or brand, has captured the imagination of many in different spheres of activity. Examples of these from many
sectors are listed below.
Lean principles have been successfully applied to call center services to improve live agent call handling. By combining Agentassisted Automation and lean's waste reduction practices, a company reduced handle time, reduced between agent variability,
reduced accent barriers, and attained near perfect process adherence.[25]
Lean principles have also found application in software application development and maintenance and other areas of information
technology (IT).[26] More generally, the use of lean in information technology has become known as Lean IT.
A study conducted on behalf of the Scottish Executive, by Warwick University, in 2005/06 found that lean methods were applicable
to the public sector, but that most results had been achieved using a much more restricted range of techniques than lean provides. [27]
A study completed in 2010 identified that lean was beginning to embed in Higher Education in the UK (see Lean Higher Education).
[28]
In addition, Bolton Hospitals NHS Trust published an article reporting to have successfully lowered their mortality rates after
implementing Lean.[29]
The challenge in moving lean to services is the lack of widely available reference implementations to allow people to see how
directly applying lean manufacturing tools and practices can work and the impact it does have. This makes it more difficult to build
the level of belief seen as necessary for strong implementation. However, some research does relate widely recognized examples of
success in retail and even airlines to the underlying principles of lean.[15] Despite this, it remains the case that the direct
manufacturing examples of 'techniques' or 'tools' need to be better 'translated' into a service context to support the more prominent
approaches of implementation, which has not yet received the level of work or publicity that would give starting points for
implementors. The upshot of this is that each implementation often 'feels its way' along as must the early industrial
engineering practices of Toyota. This places huge importance upon sponsorship to encourage and protect these experimental
developments.
Lean management is nowadays implemented also in non-manufacturing processes and administrative processes. In nonmanufacturing processes is still huge potential for optimization and efficiency increase.[30]
Lean services is the application of the lean manufacturing concept to service operations. It is distinct in that Lean services are not
concerned with the making of hard products.
To date, Lean principles of Continuous Improvement and Respect for People have been applied to all manner of services including
call center services, health care, higher education, software development, and public and professional services. Conceptually, these
implementations follow very similar routes to those in manufacturing settings, and often use some of the same tools and techniques.
There are, however, many significant distinctions and the same tools can be applied in different ways
Service in this context is not limited to the office or administration that have been the focus of several publications, but also wider
service situations that are not necessarily repetitive, where task time is not applicable, and where task times may be both long and
variable. Service in this context could mean anything from a hospital to a university, from an office process to a consultancy, and
from a warehouse to field service maintenance.
The original seven wastes (muda) were defined by Taiichi Ohno, the father of the Toyota Production System. These wastes have
been often redefined to better fit new organisations, industries, or external pressures.
One redefinition of these wastes for service
1. Delay on the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised. The
customers time may seem free to the provider, but when she takes custom elsewhere the pain begins.
2. Duplication. Having to re-enter data, repeat details on forms, copy information across, answer queries from several
sources within the same organisation.
3. Unnecessary Movement. Queuing several times, lack of one-stop, poor ergonomics in the service encounter.
4. Unclear communication, and the wastes of seeking clarification, confusion over product or service use, wasting time
finding a location that may result in misuse or duplication.
5. Incorrect inventory. Being out-of-stock, unable to get exactly what was required, substitute products or services.
6. An opportunity lost to retain or win customers, a failure to establish rapport, ignoring customers, unfriendliness, and
rudeness.
7. Errors in the service transaction, product defects in the product-service bundle, lost or damaged goods.
Lean IT
lean services principles to the development and management of information technology (IT) products and services. Its central
concern, applied in the context of IT, is the elimination of waste, where waste is work that adds no value to a product or service.
implementing Lean IT is a continuing and long-term process that may take years before lean principles become intrinsic to
an organizations culture. Lean IT promises to identify and eradicate waste that otherwise contributes to poor customer service, lost
business, higher than necessary business costs, and lost employee productivity.
Waste Element
Defects
Examples
Business Outcome
Overproduction
(Overprovisioning)
Waiting
Miscommunication.
Benched application
development teams.
Lost productivity.
Failing to capture
ideas/innovation.
Non-Value Added
Processing
Transportation
Inventory (Excess)
Increased costs: data center, energy; lost productivity.
Motion (Excess)
Employee Knowledge
(Unused)
Whereas each element in the table can be a significant source of waste in itself, linkages between elements sometimes create a
cascade of waste (the so-called domino effect). For example, a faulty load balancer (waste element: Defects) that increases web
server response time may cause a lengthy wait for users of a web application (waste element: Waiting), resulting in excessive
demand on the customer support call center (waste element: Excess Motion) and, potentially, subsequent visits by account
representatives to key customers sites to quell concerns about the service availability (waste element: Transportation). In the
meantime, the companys most likely responses to this problem for example, introducing additional server capacity and/or
redundant load balancing software), and hiring extra customer support agents may contribute yet more waste elements
(Overprovisioning and Excess Inventory).
he Amazons CEO knew that customers would not pay for waste and that focus on waste prevention is a fundamental concept of lean. Jeff Bezos,
always had the spirit of lean management, since the day that he created Amazon. He has been totally customer-centric . Amazon is a natural place that
applies lean principles.
1.
the selection of the transportation method for a given package is driven, first, by the promised delivery date to the customer. Lower-cost
2.
options enter the equation only if they provide an equal probability of on-time delivery.
Amazon has more people working in the fulfillment centers and customer-service centers than it does computer-science engineers. They
needed the engagement of all workers on continuous improvement from the Gemba (the physical, frontline place of value work) to
succeed, since they are the ones who are actually receiving, stowing, picking, packing, and sending packages or responding to customers
by phone, chat, or e-mail.
3.
Given the business evolution of Amazon from a bookstore to the store for everything, they had to reinvent automation, following the lean
principle of autonomation: keep the humans for high-value, complex work and use machines to support those tasks. Autonomation helps
human beings perform tasks in a defect-free and safe way by only automating the basic, repetitive, low-value steps in a process. The result
is the best of both worlds: a very flexible human being assisted by a machine that brings the process up from Three Sigma to Six Sigma.
4.
Another major dimension of the deployment of lean at Amazon was the enforcement of standard work: combines the elements of a job
into the most effective sequence, without waste, to achieve the most efficient level of production.