Mohamed Messri
February 6, 2024

Lean management: efficient strategies and lean processes for your company

Would you like to find out how lean management can increase your company's efficiency? In this article, you will learn how you can streamline processes and reduce costs with lean strategies - without complicated technical jargon.

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Table of contents

The most important facts at a glance

Lean management is a strategy for increasing efficiency in companies. It aims to reduce unnecessary work and optimize added value for the customer.

The core principles of lean management include customer focus, avoiding overhead and continuous improvement through employee involvement and systematic process optimization.

Important lean methods and tools, such as the PDCA cycle and value stream mapping, support this corporate strategy. They promote cost reduction, process efficiency and customer satisfaction.

Lean management as a corporate philosophy

Lean management is a philosophy that helps to better organize work in a company. With lean management and lean production, we can make things more efficient by wasting less and constantly improving.

The types of unnecessary work that we want to reduce with Lean Management are:

  • Transportation
  • Stock
  • Movement
  • Wait
  • Overproduction
  • Revision
  • Error

By improving the process and focusing on what adds value for the customer, lean management can help to increase efficiency and reduce costs.

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The basic principles of lean thinking

Lean Thinking

Lean thinking is about focusing on the customer. This means:

  • Creating value for the customer
  • Avoid unnecessary work
  • Determine the value from the customer’s perspective
  • Recognizing the value creation process

The constant striving for improvement in lean thinking means that all activities are aimed at improving product quality, service and processes. Lean is about getting all employees involved. This is achieved through a culture of participation at all levels and by actively involving employees in the improvement process.

The goal of lean thinking is to prevent overhead by minimizing unnecessary work and optimizing processes.

The role of lean methods in corporate strategy

Lean Portfolio Management

Lean methods help to achieve corporate goals by focusing on the customer, the value stream and the flow principle. They also help to cut costs and reduce unnecessary work. When lean methods are applied, unnecessary work is reduced, processes are improved and productivity is increased.

The introduction of lean methods improves collaboration within the company, as processes are made more efficient and communication between employees is facilitated. The most important lean methods in corporate strategy are: Lean Management Methods and Tools, Lean Management Strategy and the Hoshin Kanri Method.

PDCA cycle as a tool for continuous improvement

The PDCA cycle in lean management is a four-step improvement process. The steps are:

  • Planning
  • Realize
  • Check
  • Customize

The PDCA cycle helps us:

  • Understanding processes
  • Plan and implement improvements
  • check the results
  • adapt the processes

If we go through this cycle again and again, we can constantly improve.

The PDCA cycle has many advantages for companies. This is:

  • Easy to understand and use
  • Flexible and adaptable
  • helps us to continuously improve our processes
  • enables employees to develop themselves further
  • Can be adapted to different situations

Value stream mapping for a transparent value chain

Value stream mapping is a method that helps to show all processes and workflows in a value creation process. It helps us to find unnecessary work and see opportunities for improvement. We carry out a value stream analysis by showing the processes and using a symbol system. We take the following steps:

  1. Visualize processes
  2. Using the symbol system
  3. Collect key figures on throughput time
  4. Collect key figures for the process steps

With value stream mapping, companies can improve their processes and reduce unnecessary work.

Value stream mapping has these positive aspects:

  • Creates transparency for management and corporate strategy
  • Unnecessary work is reduced
  • Processes become faster
  • Increases efficiency
  • Reduces costs
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Increasing customer satisfaction through lean management

Lean Management Customer Centricity

Lean management uses principles such as continuous improvement and customer orientation to increase customer satisfaction. It improves product and service quality by increasing efficiency, optimizing processes and focusing on quality.

An important aspect of lean management is to understand the needs of customers. It’s about recognizing what the customer needs, expects and when they want their product. The processes required to meet these needs are also defined.

Techniques such as reducing unnecessary work and continuous improvement can be used as part of lean management to increase customer satisfaction.

Reducing costs and increasing efficiency in the company

Lean Management Effizienz

Lean management helps companies to become more efficient by reducing unnecessary things and promoting valuable things. The unnecessary things that can be reduced are:

  • Too much production
  • Stocks
  • Transports
  • Movements
  • Errors and rework
  • Waiting times
  • Incorrect processes

Lean management improves processes, which helps to reduce costs, increase productivity and improve quality. Some techniques of lean management to reduce costs and increase efficiency are the design of the value chain with a focus on the customer and the avoidance of unnecessary work, as well as cost reductions in production with a focus on the customer.

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Implementation of lean management in various areas of the company

Lean management in production is based on 5 principles and requires certain steps.

The advantages of lean management in logistics are:

  • Focus on the customer
  • Cost reduction
  • Faster delivery times thanks to the just-in-time process in supplier and warehouse management

Lean management can also be useful in the office to avoid overhead, simplify processes and achieve better results. In project management, lean management helps to work faster, waste less and serve the customer better. With lean management, companies can improve their work and achieve their goals faster.

In order to use lean management in all parts of a company, it is important to avoid problems and duplication of work.

The path to a lean organization: a step-by-step process

The introduction of lean management in a company can be summarized in 5 steps. These can be applied to other lean tools and methods.

Employees are important for the introduction of lean management. They help with the planning and implementation of lean measures, understand the processes and make suggestions for improvement.

Old ways of working and thinking as well as a lack of teamwork can be challenges when introducing lean management.

Case studies: Successful implementation of lean management

Toyota and General Electric (GE) are examples of the successful use of lean management. They have used Lean Six Sigma and other methods to improve their processes, especially in sales.

Toyota in particular has implemented lean management through the introduction of its lean manufacturing system. This system includes:

  • Just-in-time production to reduce costs and increase efficiency
  • Improvement of processes
  • Cost reduction
  • Increasing the overall efficiency of the company
  • Minimization of overhead
  • Better use of resources
  • Avoidance of unnecessarily complicated solutions

Lean management has enabled them to optimize their processes, reduce costs and improve overall efficiency.

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Lean management tools and techniques

5S-System

The 5 S method in lean management is a clear method for organizing the workplace based on five principles:

  1. Sort

  2. Systematic order

  3. Cleanliness

  4. Standardize

  5. Self-discipline

With this method, a company can produce more, work better and improve working conditions.

Poka-Yoke helps prevent errors and improve quality by using devices, sensors and controls to reduce human error. Lean management methods can be successfully implemented in a company by applying lean principles such as:

  • the determination of the value

  • Visualizing the value stream

  • the creation of flow

  • setting up a pull system

  • continuous improvement

supported by special tools such as just-in-time.

Summary

In short, lean management helps companies to become better. It makes processes better, reduces unnecessary work, makes customers happier, saves costs and gives you a competitive edge. Success requires a good strategy, the cooperation of everyone and the willingness to constantly learn and improve.

The most frequently asked questions

Lean management is a corporate philosophy and management style that aims to reduce unnecessary work, improve processes and promote continuous improvement in all areas of the company. The aim is to make the value chain efficient and minimize errors.

The aim of lean is to make work more efficient, improve products, improve processes and avoid unnecessary work.