Lean Thinking to Provide a Lean Management Enterprise

Lean Thinking to Provide a Lean Management Enterprise

Picture 1. Lean Principles

Nowadays, companies cause a lot of problems because of profit maximization, the endless needs, rapidly advancing technological developments, unconscious consumption of many resources, as they execute their operations. To meet the needs of business management and understand customer value, reflecting the lean thinking to create a lean enterprise must be useful.

At first glance, a lean enterprise understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has a zero waste. To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across all the things in the company to customers (Baggaley & Bruce, 2008).

 

Picture 2. Before & After Lean Thinking Applied

  

Basically, lean thinking methods are inclusive of all employees and involve a major change in the embedded attitudes of the individuals that make up the organizations. The principle is about simple and cost-effectiveto create a little work has been carried out to determine its applicability to high-value, low-volume complex products. 

 

Lean thinking is an improvement approach to improve flow and eliminate waste that was. It is basically about getting the right things to the right place, at the right time and also in the right quantities for sure, while minimizing waste and being flexible and open to change (Johnson & Thomas, 2007). 

Above all, Lean enterprises work to precisely define value in terms of specific products with identified capabilities offered at set prices through a dialogue with their customers. The process involves learning to adopt and employ a series of tools and techniques to achieve incremental improvements in an organization.  

Some point to set up and run a successful lean enterprise based on lean thinking is about (1) improving flow to eliminate waste and reduce delays, (2) improving quality and lowering costs --> get things right first time, (3) empower staff to motivate them to sustain results, (4) always make good decisions using evidence.

In conclusion, the focus of many companies has been on Lean Enterprise, which strives for simplicity. The essential principles of Lean Enterprise are how do we create simple processes and then eliminate the waste to make value flow. The value here is defined any action that customer would be willing to pay for.

References :

Baggaley, Bruce. 2008. Lean Accounting: Lean Accounting: Best Practices for Sustainable Integration, John Wiley & Sons, Inc., Hoboken, New Jersey.

Johnson, H. Thomas. 2007. Lean Accounting: Best Practices for Sustainable Integration John Wiley & Sons, Inc., Hoboken, New Jersey.

Simpson, Larry L, Greenfield, Alfred C., Jr. 2012. Providing cost accounting support for lean initiatives. Review of Business Research Publisher: International Academy of Business and Economics