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 1. Home
 2. How can a business use lean management techniques to improve its operations?

How can a business use lean management techniques to improve its operations? A
recent Gartner study entitled “Defining the Essence of Lean in an IT Business”
gave us insights on what lean management techniques should be used in IT
environments. In 2007, Gartner defined lean management as “a framework for
conducting business operations both internally and with suppliers and customers
with the aim of view it or eliminating waste in order to build high-quality,
high-value products or services. [1] Based on this definition, many CIOs or
business executives feel that they understand lean management well. However, a
survey conducted in May 2008 of Gartner customers from nearly 60 countries
revealed that many of these customers are still struggling with the concepts of
lean management. For example, “less than 5 percent of surveyed Gartner
customers” said that “lean management knowledge [was] prevalent within their
organizations.” [2] Furthermore, when we use that idea behind lean management to
promote “lean” IT operations, more than half of those surveyed answered that “it
is not really applicable to IT.” This showed that, from a practical point of
view, many people couldn’t completely grasp the theory behind lean management.
Survey Background In May 2008, Gartner conducted a research study in which it
surveyed 20,000 people in North America, Europe, Asia, and Latin America. The
purpose of this survey was to explore “how widespread lean and Six Sigma are in
the total tech community… [and how] lean and Six Sigma management tools will
grow into strategic planning and strategy execution.” [3] Organizations who
participate in the survey include: “larger computer-based suppliers, IT
companies, telecom companies and financial services companies in China, India,
Japan, South Korea, and Europe.


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” [4] We have only released to researchers 4,000 of the 15,000 people contacted,
due to privacy and licensing issues. In addition, the questionnaire used in the
study only became available in English.How can a business use lean management
techniques to improve its operations? By implementing lean management for your
company, you may actually be able to reduce costs, make more money and improve
the way the company operates. There are many ways to apply lean management
techniques to run a more efficient business. Some techniques can be applied
immediately, while others can mean long-term gains that can increase your bottom
line. Here are some examples. An example of short-term gains could be the
following: If you have 100 employees, take certain steps to reduce your employee
count. Say that you reduce these employees to by eliminating various positions
and reducing their responsibilities. You’ll suddenly be operating at a lean
efficiency, but what will happen to quality and service levels? A lean operation
is run by few individuals, so you’ll be performing most of the work duties
yourself. While this is a plus for productivity (which includes efficiency), you
will also be on the hook for a lot more since you’ll be handling the extra tasks
on your own. However, when you’re applying lean principles and operating on a
smaller scale, you’ll be able to have more control over the inner workings of
your company. This can lead to better quality and customer satisfaction. 1.


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Keep Your Processes as Simple as Possible. Often, the moment a company exceeds
about five employees, it becomes difficult to maintain a simple flow. Having too
many tasks, lines, levels or departments creates a lot of complexity that may be
in the form of redundancies that can cause inefficiencies. So, make sure your
business processes are as simple as possible. Then, cut down on your tasks and
your employees to make sure things run smoothly. For example, is it possible to
streamline your order-taking process? If so, do it. That may mean eliminating
extraneous steps or other times when you’ve added so much work that your
employees may as a whole be dealing with more than what there is to do.How can a
business use lean management techniques to improve its operations? “By
streamlining the life cycle of a finished product to create more products, with
each product more competitively priced and designed to increase its
distribution,” says Linda Riggs, VP and Editor in Chief in Wiley Interscience’s
Business-to-Business Publishing. This approach, called lean process management,
emphasizes pre-planning, standardization, and collaboration to maintain high
product quality. With lean process management, a customer-focused business
constantly evaluates process steps, reducing inefficiencies to gain competitive
advantage. A manufacturer can automate various quality checks to standardize
production processes, creating standard operating procedures and best practices.
“Hospitals, health care professionals, pharmaceutical manufacturers, and
manufacturing operations can benefit from lean process management to reduce
delays, meet customer expectations, and remain competitive, resulting in a
streamlined healthcare delivery,” adds Melissa Davis, a senior editor at Wiley.
Among the topics covered in this latest edition are: Making lean process
management work for larger organizations.


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Companies with medium to large-size operations must implement lean-based
processes to sustain competitive advantages. “Firms with large operations must
continuously adapt to customer expectations and competitive environments and
rapidly overcome problems that arise during the daily manufacturing process.
They must use all elements of lean management, including continual improvement,
to realize greater business opportunities,” discusses Davis. Customizing lean
manufacturing. Business owners must customize lean processes for their specific
needs to optimize business performance. “Operations managers who use lean
management techniques to make their practices more competitive can see drastic
improvements in terms of their overall performance. If they make the necessary
transformations they will be successful,” asserts Riggs. Managing diversity.
Organizational managers must understand how to integrate diverse work published
here as well have knowledge lean management techniques. “Many of the advantages
and benefits of lean management are applicable not only to large manufacturing
operations, but also to other types of business, such as hospitals, health
care..

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