How fast can we deliver the best? Are the systems productive?
Which procedures are `unwanted'? Can we eliminate non-value
adding steps? What actions require improvement? Did we attain
`zero-waste, zero-defect' everywhere? How efficient are
our human resources? Are we reinventing cycles? Is the inventory
idle? Array of such introspecting questions are the most
valued ones, which firms should always continue to ask themselves
honestly if they desire to deliver the best. Only those
that seek to answer these on a sustained basis can emerge
successful. When such questions are answered with commitment,
organizations can surface as total productive enterprises.
Such inward tendency to be productive by removing the waste
in any form1 is popularly known as `lean' or `lean thinking.'
Lean philosophy is not new to the world of business. It
originated and evolved in the Japanese factory floors. Being
enthusiastically practiced at Toyota, the lean principles
were widely accepted across the manufacturing world. Lean
manufacturing is known by different names: Zero inventory
production, stockless production (Hewlett Packard), material-as-needed
(Harley-Davidson), continuous flow manufacturing (IBM),
and management by sight (GE). Toyota Production System (TPS)
is the most admired lean manufacturing system. Lean Manufacturing
is the generic version of TPS. Concepts commonly used in
TPS are Just-in-Time (JIT), Jidokaautomation with
human intelligence, heijunkaproduction smoothing,
Kaizencontinuous improvement; Kaikakuradical
improvement of any activity by removing waste; Poka-yokeavoiding
inadvertent errors; fool-proofing, Kanbanindex card,
AndonSignboard, Murioverburden (avoid), Murainconsistency
(avoid), MudaWaste (avoid), Genchi Genbutsugo
and see yourself.
Lean manufacturing is now no more confined to the shop
floor. It is now applied beyond the manufacturing walls
and it as extended to other processes/functions like new
product development, procurement, accounting, HR, order
management, distribution, etc. Today we witness an array
of associated concepts such as lean product development,
lean accounting, lean distribution, lean supply chain, etc.
Improving all areas of business, from product development,
logistics management, service and support to back-office
administrative areas such as human resources and finance
and accounting functions, by applying lean principles will
ultimately create a `Lean Enterprise.' The advent of Web
and advanced information technologies has helped Lean Enterprise
to come of age, in a big way. Matured Web and software technologies
are enabling corporate executives to leverage six-sigma
tools for analyzing cycle times, quality and customer services.
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