Lean Management Guide

Lean management has been developed with the intention of reducing process wastes and maximizing the value of the product or the service to the customer. This is achieved through unique techniques like flow charts, total productive maintenance, just in time techniques, workplace redesigning techniques, and total quality management.

BSCDesigner.com AKS-Labs

Lean Management Guide

Copyright AKS-Labs

Page 2

Introduction to Lean Management

Fundamentals of Lean Management Lean management is simply maximizing customer value through reduction of work wastes. Lean management is focusing only on the critical few. The goal of lean management is to guide organizations on how they can put value to each customer. Lean management must ensure that the organizations will focus on what their customer are saying about their products or services. This can be achieved by adapting the lean principles. These principles may change how the organization perceives things in terms of customer value. Lean management will help the organization to discern focus areas and critical problems to be re resolved in proper prioritization. There are lots of techniques and tools available today in order to adapt to this principle. Some of these techniques are the use of Flow Charts, Workplace Redesigning techniques, TPM of Total Productive Maintenance, TQM or Total Quality Management, and JIT or Just in Time techniques. But adapting lean management principles will also aid an organization in developing their own lean management-based tools and techniques. Eliminating wastes is part of the key goals of lean management. Decreasing wastes will also decrease efforts, costs, defects, and time. The outcome is an increase in revenue, increased employee motivation, and increased customer base base. Issues Addressed by Lean Management In any organization, the following five major problems are being addressed when lean management is , being implemented: 1. Low Productivity. In the general sense, productivity means volume. It may be the number of calls handled in a call center, the number of products manufactured in a factory, the number of transactions resolved in a support group. Whatever kind of productivity it is, implemen implementing lean management will help increase yields; enabling the organization to generate more satisfied customers and higher profit. 2. Prolonged Cycle Time. A complaint resolved beyond timeline gives birth to another complaint. It is integral for the organizat organization to manage the handling time to any problem for resolution. Shorter cycle times not cycle lates must be delivered. 3. Costly Organization. Organizational expense must be carefully allotted to where it must be. . Profit and Loss management must be clearly defined. Even if you have an increasing customer base but your company expenses are also increasing, you will not achieve a favorable cost report. You can reduce cost by maximizing the talents and saving resources. 4. Rampant Wastage. Time, resources, manpower, and cost are all subject to be wasted if not manpower, managed properly. Reducing or eliminating wastes will aid an organization to focus on the critical few. Focusing on essential things will create more room for improvement. 5. Dissatisfied Customers and Employees. The heart of the organization is in the employees and the soul is the customers. Companies must always have a program called WOCAS or What Our Customers Are Saying. It is also vital to capture the voice of the workf workforce via regular town hall cascades or focus group discussions.

Lean Management Guide

AKS-Labs 2501 Blue Ridge Road Suite 150 Raleigh NC 27607 ite

www.bscdesigner.com toolkit@bscdesigner.com

Lean Management Guide

Copyright AKS-Labs

Page 3

Low Productivity

Prolonged Cycle Time

Dissatisfied Customers and Employees

Costly Organization

Rampant Wastage

Lean Management Major Stakeholders Practice of lean management principle targets three major stakeholders; Customers, Employees, and the Organization: 1. Customers. Nothing is more rewarding if we see our customers delighted. The delight may be due to the satisfaction to the product or may be because of an encompassing customer service. Its a clich but, customers are always right. And even if they are not, they have to always feel that they are valued. All concerns and issues must be addressed upfront. Avoid false promises. Value added services are always a catcher preventing loss or decline in the number of customers. 2. Employees. This is the workforce. The rank and file level. They are the organizations wheelbarrow. A happy employee will merit a delighted customer. An employee who is well compensated, whose professional directions are defined, and who are empowered will surely make a star organization. 3. Organization. The organization is the board members, the CEO, and the business owners. The organization is also the processes, the house rules, and other implementations. They are the fuel of the company. An organization that is well managed, balanced and not bias, has heart for the customers are but model organizations these days. They are the echo of the lean management system.

Lean Management Guide

AKS-Labs 2501 Blue Ridge Road Suite 150 Raleigh NC 27607 ite

www.bscdesigner.com toolkit@bscdesigner.com

Lean Management Guide

Copyright AKS-Labs

Page 4

Customers

Employees

Organizations

Advocates of Lean Management When it comes to businesses, lean management is never selective. Any type of business; be it manufacturing, operations, customer service, and other types can adapt the principles of lean service, management. As long as the goal coincides with what lean management is teaching, applying lean management will never be a problem. There is also no SPOC or single point of contact that everybody will rely on. Applying lean management rely must be a collaborative effort among departments, teams, and groups. But it is worth to note if the organization will designate one team who will drive the principles and collect efforts. Business improvements must not be focused to one department alone. At the end of the day, all groups must focused provide inputs on how to better performance, increase profit, reduce waste, and implement excellent processes.

Lean Management Guide

AKS-Labs 2501 Blue Ridge Road Suite 150 Raleigh NC 27607 ite

www.bscdesigner.com toolkit@bscdesigner.com