#SUMMARY. TUE 22102019. LEAN OPERATION

LEAN OPERATION 

Lean Operation Concept 

According to Gaspersz (2008) lean is a continuous effort (continuous improvement efforts) to eliminate waste (waste), increase the added value (added value) of products (goods and / services) and provide value for customers (customer value).

Jobs: Salaries and benefits are not cheap for an organization. Of course, it’s not good business practice to eliminate necessary positions or to squeeze your workforce. However, it’s vital to ensure that all employees in an organization serve an essential function and that they are adequately trained to do so. It is a waste of company money to have inefficiency in jobs and employees who aren’t being used to their full potential. Lean operations would clean up these messes, and make sure that each employee is doing a necessary job to the best of their ability.

Inventory: Having too much stock on hand is a waste of money for a company because it costs money to store inventory. The longer it sits around not being sold, the more it costs your company. However, you need to make sure to have enough stock to meet customer demand and this is where optimization comes into play. Your company should keep an optimal level of inventory, and no more and no less, to ensure lean operations.

Production times: Inefficiency and waste can rear their heads in the production process. Lean operations require that you eliminate any inefficiencies or delays in the production process. This ensures that all products are produced in less time, therefore costing less money.  

Transportation: Transportation is another area where waste and inefficiency can cause a company to bleed money. Your company shouldn’t be transporting goods unnecessarily or transporting them at the wrong times. This can cause inventory problems, or simply incur unnecessary expenses.

The prime purpose of a lean strategy is to eliminate wastes (mud) (Tapping, 2006). Several research studies have shown that a lean strategy produces higher levels of quality and productivity and

better customer responsiveness (Krafcik, 1998; Nicholas, 1998). The impact on lean strategy is mostly based on empirical evidence that it improves the company’s competitiveness (Oliver et al.,

1996; Doolen and Hacker,2005). It is worth mentioning that the impact of lean thinking as a strategy is important not only in manufacturing but also for the entire supply chain. ( Journal 1 ) 

References

- https://www.researchgate.net/publication/235275373_Impact_of_Lean_Strategy_on_Operational_Performance_A_Study_of_Thai_Manufacturing_Companies

References

References