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The lean management system is a relatively new control protocol inspired by Toyota’s production system. The term “lean” was coined by the CEO of Google’s self-driving car project – John Krafcik in the year 1988. The fundamental aim of the system is to increase quality and profitability. The latter is essentially related to the former one and that is what lean management focuses on. Through the process, a company can successfully detect non-value-added tasks and reduce the time spent on them.

The system has an employee-oriented outlook too. The whole aim of eliminating non-value-added tasks is not only just to reduce costs and time, but to ensure that the employees work in the best conditions. The system is therefore considered the most realistic strategic tool to win both the confidence of the customers and the employees.

The wholesome nature of the management system has endless benefits to offer to business organisations. Today, the system is spread across major industries and appreciated for the outcome it delivers. There are some strict principles, which create the base for the system.

What are the major principles?

According to the lean management institute, the following are core principles, which you must consider while implementing the protocol –

Principle 1# Value identification

Each business thrives to achieve a particular goal. Providing the best quality service/product to the target segment is the primary and common goal of every company. The way to accomplish the goal is by adding maximum value so that the customer satisfaction level exceedsexpectations. Your product/service should be designed and manufactured in a way that successfully meets the demands or solves problems. Therefore, the first priority is to identify the true value your product can add to the lives of your customers. Customers pay for value, which is fundamentally dependent on quality and quantity. Your customer group should not consider your service to be a waste of money. As per the first principle, your foremost job is to study customer buying behaviour and their present need.

Principle 2# Mapping the value chain

From designing the product/service to delivering the end product, there are several departments and different resources involved. The second principle asks you to map the workflow of the entire system. To detect the actions, which are no longer required or fail to add any value, you need to map the value chain. To establish and enforce strategies to eliminate unnecessary procedures, this principle plays the most important role.

Principle 3# Creating a continuous workflow

After determining the less valuable functions and eliminating them, according to the third principle, you must streamline the rest of the workflow. A business is prone to face countless interruptions and emergency situations. A continuous workflow protocol will reduce the impact of those diversions and adverse conditions.

Principle 4# Creating a traction system

A traction system plays a crucial role in the entire lean management system. A traction system fundamentally stabilises all the actions enforced for keeping the workflow smooth and hassle-free. The system helps the management and the worker to process service only when there is strong demand for it. As lean management aims to maximise the mobilisation power of the resources, it asks companies to implement a traction system.

Principle 5# Continuous Improvement

The last principle is continuous improvement. This is arguably the most critical step. The effectiveness of the entire system depends strongly on the strategies designed for monitoring the progress and improving it for further success. According to principle five, companies must include employees and other stakeholders in the improvement process. Everyone should be equally involved and informed about the process and strategies.

The Benefits

● The system is currently the most realistic and impactful management standard for increasing employee focus.
● It increases productivity and efficiency. Employees work as per the expectation as they are satisfied with the work culture.
● The lean management protocol saves time as well as money. By reducing the workload, workers get the opportunity to concentrate more on value-added tasks.
● You can accomplish success with resource mobilisation as the system sets out clear guidelines for using the right resources in the proper amount.

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