Consider how the forms of waste can be such a deterrent to improvement. Identifying and managing waste is a key function
Learning Goal: I’m working on a management discussion question and need an explanation and answer to help me learn.
The Principles of Lean
Henry Ford defined the lean concept in one sentence: “We will not put into our establishment anything that is useless”.
Lean manufacturing is a system of techniques and activities for running a manufacturing or service operation. The techniques and activities differ according to the application at hand but they have the same underlying principle: the elimination of all non-value-adding activities and waste from the business.
Lean enterprise extends this concept through the entire value stream or supply chain: the leanest factory cannot achieve its full potential if it has to work with non-lean suppliers and subcontractors.
Types of Waste
- Waiting, time in queue
- Transportation (movement)
- Non-value-adding processes
- Motion (activities and actions)
- Costs of quality: scrap, rework and inspection (Levinson & Rerick, 2002, p. xii-xiv).
Lean is designed both for service related businesses and manufacturing industries.
Consider how the forms of waste can be such a deterrent to improvement. Identifying and managing waste is a key function of Lean Management. Choose an organization or company (in or out of existence) and identify the types of waste that are evident. You may need to do some research on the company or organization. Be honest and fair in assessing where elements of waste are present. Finally, what is the value that has been lost by this waste?
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