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A lean management system is an effective protocol for pinpointing the non-valued aspects and operations. It is a global standard that helps to minimise yearly costs by helping management to eliminate all those programs, which are ineffective. The aim of the system is to ensure that your employees work in the best condition.

According to the international standard of lead management, to accomplish customer satisfaction, it is necessary to increase individual employee morale. The success of each employee cumulatively adds to the fundamental success of the company.

The system was designed by MIT (Massachusetts Institute of Technology) researchers to reduce workloads and unnecessary costs so that the efficiency level of the system can be achieved effortlessly.

The word “lean” refers to “no frills”, which indicates the removal of unnecessary items from the policies and procedures for the design, development, and delivery of quality services. The following post discusses the management system and its core principles.

What is a lean management system?

It is a system for optimising processes by reducing costs and time. The fundamental protocol is setting rules and procedures for inspecting the process and determining areas that fail to add any value. According to the fundamental concept of a lean management system, most companies suffer from poor quality operations and endless complications due to overlooking non-value-added business aspects. Three tools are used for conducting the lean management procedures. They are –

• Availability – This tool divides the run time by the scheduled time for production

• Performance – This tool divides the ideal cycle time with the total count

• Quality – This tool divides the good count by the total count of the run time

However, there are modern tools used by consulting professionals which reduce overall time and costs. Some of them are – Kanban, Focus PDCA, Value Stream Mapping, Kaizen, and many more.

What are some of the beneficial aspects of a lean management system?

The lean management system has a holistic approach towards business sustainability.

• The system promotes the importance of a robust quality management system. The stakeholders are involved and encouraged to see how unnecessary or non-value-added operations are eliminated. Their proactive level is gradually increased as their opinions are valued. They realise the necessity for increasing quality assurance periodically so that customers’ expectations can be met.

• The system helps to reduce waste and therefore allows your system to perform better in reducing its carbon footprint. By reducing unwanted procedures and eliminating resources that possess zero value, a company can visibly reduce its waste production.

• The efficiency level of each stakeholder group is increased by increasing the team morale. By showing value to opinions and individual contribution, lean management helps to increase employee loyalty as well.

• As the stakeholders get the opportunity to check the way a project is being completed, the production gets faster, and customers’ values and preferences can be predicted easily.

• The primary goal of the lean management system is to decrease the overall production and operational costs. This way, a company gets to strengthen its financial capability, which helps them to build a better contingency plan.

What are the 5 principles?

1.Value identification is the first principle of a lean management program. To resolve customer problems, a company must determine the right values its services/products should offer. This is the foundation for building cost-effective management.

2.Mapping the value chain is the second principle that asks a company to identify and determine the workflow. This way, management can successfully delegate the work and eliminate unnecessary aspects easily.

3.After mapping the workflow, according to the third principle, a company now must create a work schedule that will face fewer interruptions.

4.A traction system is the fourth principle, which says that a company needs to delegate, and schedule work only after checking if there is enough demand for that service.

5.The fifth principle is initiating continuous improvement by conducting review meetings. It is done to work on the nonconformities.

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