The Benefits of Lean Management

Lean management is a business philosophy that is becoming more common in many workplaces that value conservation of resources. The goal of lean management or lean manufacturing is to create a product for the customer or client that uses only the resources that it absolutely needs. In lean management, the business minimizes waste everywhere and eliminates it where possible. This philosophy was first described in 1988 by engineer John Krafcik. Krafcik, in turn, attributed its innovations to Taiichi Ohno of Toyota Production System. The benefits are numerous to the businesses who choose to implement it, including financial savings, better workflow and a better public image.

Why Does it Help?

Lean management relies heavily on principles of organization that eliminate waste and excess cost, all of which can benefit the company on their own merit.

·         A philosophy of less waste can make your company appear favorable to customers or business partners, particularly those who prefer associating with eco-friendly businesses. By its definition, lean management involves producing as little waste as possible, associating your business with less damage to the earth.

·         Producing less waste means spending less money, period. Your company will spend less money on materials with no return, and you will spend less money disposing of materials that have gone to waste. Less storage space will be devoted to overstock and unwanted inventory, and the space and money that you do have will reap better returns.

·         Companies that are more organized have happier employees and satisfied customers. Although lea management specifically targets waste, it needs all-around organization to make it work. With organization permeating every part of the workplace, from tools and materials to safety and communication, your employees will be happier with their positions and your customers will be able to tell the difference.

How Do You Implement Lean Management?

Businesses that implement lean management use a series of tools that can vary depending on the individual needs and approach of the business. Your business may prefer to use a tiered organizational system such as 5S, which emphasizes every part of the workplace being in its own place with no clutter or waste. Alternatively, plenty of businesses that deal with manufacturing use a system called Just in Time, or JIT, which is an inventory production method that minimizes the waste associated with having more inventory than your clients demand.