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Lean Management 1

LEAN MANAGEMENT

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Lean Management 2

Lean Management

Lean management is an excellent approach to management that aims at reducing wastage,

while maximizing value, particularly from a customer-centric dimension (Pettersen 2009). This

type of managerial approach could be slow but because it entails following adjustments in the

production and supply chain to ensure cumulative value addition and profit maximization in the

long-run. Notably, the process could mean to adopt a transformational management, which

targets production of high-quality services and products that would not only meet customer

demands but also satisfy, attract, and retain more customer base. In this case, lean management is

a collective responsibility that all departments should work collaboratively to ensure efficiency

in the production chain. This paper discusses lean management from different points of view to

give an outline of its importance as well as what it entails especially in the context of general

electronics manufacturing industry.

To begin with, organizations that had not initially adopted lean management would

require a transformation in management to incorporate lean practices and enhance efficiency in

the production section. While lean management runs through all departments, it is significant to

define its role especially in the production layout and aim at minimal production wastes and

wastage of resource. As noted by Pettersen (2009), incorporating lean management in the

production process is a slow and lengthy process with progressive adjustments that gradually

foster and efficient production system of management. Indeed, the prolonged period could

attribute to the complexity of activities, processes, and behaviors that need to be observed to

evaluate the gradual improvement in performance. Since the introduction of lean management

practices to most electronic manufacturers could be a moment of change, adequate time should

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be allowed to observe the trends in adoption and the effects that such changes could bring on the

performance of the industry (Piercy and Rich 2009).

Transformation, as used in this context refers to changes that take place in the

management, activities, production processes, behaviors and perceptions of mindsets of staff in

an organization (Piercy and Rich 2009). The changes such as alteration of production layouts,

increasing product lines, the commitment by both management and staff toward increasing value

comprise the transformational change. In other words, several activities are altered with a

common goal of increasing value for customers. At the same time, these changes in most

electronic manufacturing companies could begin with takeovers by a new management, who

may come in to spearhead the company towards success, or may be initiated internally by the

present management with the aim of value addition and to attract and retain more customers.

As Angelis et al. (2011) put it, a transformational change could come with a radical shift

in processes, people, and content, but commitment should be a good form of drive to move

peoples towards hasty but informed managerial decisions. This could imply a quick change that

takes a shorter time to occur. However, a better lean management should entail proper leadership

with a considerable period of dynamic and positive change. Perhaps, such approaches to lean

thinking and practice style would become effective by gradually introducing changes that would

reshape every department of the company. For example, the lean approach to engaging all staff

members at all levels motivates the employees to work hard and achieve the firm’s vision and

mission. Further, the introduction of new and effective communication channels would enhance

efficient flow of information among the staff since free flow of information is a characteristic of

proper lean management (Arlbjørn et al. 2011). Another aspect of lean management is the

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investment in the efforts to upgrade people through professional development; hence,

augmenting great changes in the organizational culture to a more cooperative one.

According to Hajmohammad (2013), implementation of lean manufacturing relies

heavily on the total support of the organization’s culture. Because lean focuses on improving

value for customers, the organizations' culture should as well take a similar orientation of

customer satisfaction. The perceptions and mindsets of the staff also constitute the culture of the

organization. Therefore, such aspects as employee attitudes, motivation and commitment are also

components of culture that should support lean manufacturing. To enhance effective lean

implementation, such cultural attributes should work in line with creating, enhancing value in

products and services to ensure customer satisfaction. Otherwise, an organizational culture that

would not put the customer at the center would not have an effective lean implementation. Also,

lean require other cultural qualities such as proper relationships and communication between

workers and management (Bortolotti 2015). Such culture would enhance efficiency due to the

free flow of information and enhanced coordination of activities.

Important lean focus areas or principles that lean management entails from the

perspective of six sigma include Quality, Productivity, and elimination of waste, cost, safety, and

morale (Schonberger 2008). Elimination of waste entails getting rid of activities that might result

in types of waste such as scrap/correction, overproduction, processing, inventory, conveyance,

waiting and motion (Hicks 2007). Quality is another focus area that lean implementation should

consider. Indeed, improved quality would build on the value of commodities hence customers

would enjoy. To ensure quality is kept high, the proper following of production processes is

necessary. Also, cooperation and communication would enhance teamwork hence improved

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standards on products for customers. The mission of most electronic manufacturing companies

should as well focus on production of high-quality products that would add value to customers.

Another important focus area of lean management is cost minimization. The

manufacturing companies should ensure that production costs are kept low while at the same

time keeping the quality high (Goetsch and Davis 2014). This point ensures that profit

maximization is directly proportional to value addition and customers’ satisfaction (Myerson

2012). Further, lean management also focuses on addressing safety and morale. In this area, the

manufacturing industries, particularly those dealing in general electronic appliances should aim

at ensuring that working conditions are enabling. Continued improvements are also necessary to

cope with ever-changing production systems, given that lean practice is a gradual change. To

steer up the morale of workers, the industries have implemented various strategies such as proper

communication channels to ease flow and sharing of information.

Another advantage that comes with properly instituting lean management is the

involvement of all employees in decision –making processes. In other words, employees are

consulted in meetings and discussions, so that they too could give their suggestions on which

areas need improvements. Consequently, a combination of these factors would contribute to the

success of lean implementation, and its beneficial focus on adding value to the supply and

production chains. As described by Schonberger (2008), lean management could create a

structure that is both “more rigid and more flexible,” but still continues to enhance performance

in manufacturing companies. This view implies that as much as there could be some fixed

activities and processes, other areas could easily be adjusted to strike balances in the processes of

implementing lean production. For example, activities in industries such as reporting processes,

standard data analyses, timetables for each activity, and preconditioned specifications would

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imply a significant degree of rigidity. However, such activities could enhance the development

of new skills and encouraged understanding one another among the staff. Some routine activities

such as pre-set meetings between staff and management present a chance for growth by allowing

contributions by all. Therefore, as much some manufacturing industries have preset activities that

are seemingly rigid, they enhance flexibility among the staff hence improving on quality and

lean implementation (Schonberger 2008).

While lean management has many areas of concern, the most interesting focus area is

quality. When kept high, the quality ensures that the value that the customers get is maximal.

Their satisfaction, therefore, is likely to incline heavily on the quality of goods and services

supplied. However, as noted by Amasawa et al. (2016), a focus on quality should not mean a less

emphasis on consideration of wastes generated. In particular, general electronic manufacturing

industries should pay closer attention to wastes since e-waste has become a global concern. In

fact, the concept of lean focuses on ensuring that production processes produce as minimal waste

as possible. Besides, other types of waste in the context of lean management include abstract

features such time consumption. The production process, therefore, should aim at high-quality

product and service delivery while keeping in mind that the time that such activity consumes

should be reasonable (Myerson 2012). Perhaps, other facets of lean are crucial in ensuring

efficiency through collaborative management and coordination.

Additionally, Bortolotti et al. (2015) asserted that the concept of leadership is a crucial

theme in lean thinking and practice from an organizational culture’s point of view. Arguably,

while lean leadership could take various styles of leadership, transformational leadership model

would be the most suitable especially for electronics manufacturing companies that are in the

initial stages of implementing lean management. This type of leadership is people centered and

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presents a collaborative orientation of practice that seeks to engage all stakeholders in the event

of initiating and sustaining change. For example, as stated earlier, one of the best practices in

lean leadership is the understanding that involvement of all staff in discussions and decision-

making processes is a fundamental strategy in the success of lean management.

From the opinions presented by different authors regarding lean management, it stands

out that the concept in very vital in the success of most electronics manufacturing companies.

Perhaps, it is possible that in the coming five years, more research would have been conducted to

devise mechanisms of improving contemporary lean practices and discover new approaches to

lean management. Further, as time passes, the coming five years could yield an increased

number of manufacturing companies that would adopt lean production practices. For example,

given that the contemporary business environment is being flooded with many startups, it points

out that adoption of lean thinking in the next five years will in no doubt increase, with the aim of

gaining competitive advantage in the existing competitive market environment (Myerson 2012).

In conclusion, lean management is a significant field of concern for the success of most

general electronic manufacturing companies. Lean is an exceptional management style that aims

at reducing wastage, while maximizing value, particularly from a customer-centric dimension.

Lean targets to shape the production process to add value to the output and foster customer

satisfaction. Important lean focus areas include quality, productivity, and elimination of waste,

cost, safety, and morale. Elimination of waste entails getting rid of activities that might result in

types of waste such as scrap/correction, overproduction, processing, inventory, conveyance,

waiting, and motion. When properly implemented, lean creates a culture of cooperation that

leads to improved performance and quality. Moreover, lean supply chain management has

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undergone tremendous changes from simple systems to a more elaborate combination of

activities, which are interdependent and help in increasing value for customers to benefit more.

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References

Amasawa, E., Ihara, T., Ohta, T. and Hanaki, K. (2016). Life cycle assessment of organic light

emitting diode display as emerging materials and technology. Journal of Cleaner

Production, 135, pp.1340-1350.

Angelis, J., Conti, R., Cooper, C. and Gill, C. (2011). Building a high-commitment lean culture.

Journal of Manufacturing Technology Management, 22(5), pp.569-586.

Arlbjørn, J.S., Freytag, P.V. and Haas, H.D. (2011). Service supply chain management: A survey

of lean application in the municipal sector.International Journal of Physical Distribution

& Logistics Management, 41(3), pp.277-295.

Bortolotti, T., Boscari, S. and Danese, P. (2015). Successful lean implementation: Organizational

culture and soft lean practices. International Journal of Production Economics, 160,

pp.182-201.

Goetsch, D.L. and Davis, S.B. (2014). Quality management for organizational excellence. Upper

Saddle River, NJ: pearson.

Hajmohammad, S., Vachon, S., Klassen, R.D. and Gavronski, I. (2013). Reprint of Lean

management and supply management: their role in green practices and

performance. Journal of Cleaner Production, 56, pp.86-93.

Hicks, B.J. (2007). Lean information management: Understanding and eliminating

waste. International journal of information management, 27(4), pp.233-249.

Myerson, P. (2012). Lean supply chain and logistics management. Colombus: McGraw-Hill.

Pettersen, J. (2009). Defining lean production: some conceptual and practical issues. The TQM

Journal, 21(2), pp.127-142.

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Piercy, N. and Rich, N. (2009). Lean transformation in the pure service environment: the case of

the call service centre. International journal of operations & production

management, 29(1), pp.54-76.

Schonberger, R.J. (2008). Best practices in lean six sigma process improvement. John Wiley &

Sons.

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