While the philosophy behind ‘Lean’ principles extends back farther, the term only dates back about fifteen years. By putting a name to these ideas, they are easier to define. Also known as lean production or just plain ‘Lean, ‘ it is a management philosophy based on retaining value with less work. Any production practices that expend resources for anything other than value for the customer are considered a waste.
The principles of this philosophy are about streamlining processes and making flow more efficient. It is a more refined philosophy of increasing efficiency in industrial Hotel Industry Barriers To Entry processes in general. The philosophy was identified as a product of the Japanese automaker Toyota and their attempt to reduce waste in the production process.
The goal of this philosophy is to create a consistent level of production as increases or decreases in productivity are viewed as wasteful. Maintaining a steady and repeatable production schedule is the desired result. This will deliver the appropriate quantities of the proper goods at the best times and places.
The value of this philosophy to industrial production is more apparent when compared to other forms of business. It is somewhat easier to count production and measure the incoming Skills Needed To Be An Electrician resources and outgoing products when dealing with durable goods. There are other industries that are applying the principles by using tools like performance indicators.
While the ultimate end goal is to maximize profit, the maximum value to the customer has to be a prime concern. When waste is reduced as much as possible, the consumer will receive the greatest possible value in the process. The Lean system is designed to be as mutually beneficial as possible; not just a means to create profit without regard to end product quality.
While the philosophy itself and the individual principles and tools used to achieve more efficient processes may seem simple, there are in depth studies that show it is a highly complex system. From performance indicators to standardizing practices, the entire system can be measured and evaluated for efficiency. This helps find ways to continually improve the process and create a product with greater value and better return for the company.
Some of the ideas behind Lean Six Sigma and lean manufacturing date back to early industrialization and early attempts to create greater production and lower costs. More ideas have been introduced to the philosophy like increasing value to the customer. By refining the ideas to include reducing waste to increase end value, the system attempts to make the most for all parties. This provides the customer base a high quality, desired product that returns the manufacturer the best use of resources and greatest return on investment.
