The article on Lean Thinking in October, 2023 issue of Management Accountant titled ‘LEAN THINKING OVERVIEW: STREAMLINING PROCEDURES FOR VALUE AND EFFICIENCY” by authors Shri Soumen Dutta and Shri Devarajan Swaminathan, explains the ‘Lean’ concepts in detail. The authors trace the origin of the Lean concepts to principles of Toyoto’s Production system and assert that the technique is also known as lean thinking, lean management or lean principles.
The essence of Lean concepts is being continuously customer focused. According to authors, it is maximizing the value while minimizing the waste at each stage of production. Value Identification, Value Stream Mapping, Eliminating Waste, Pull Systems and Continuous Improvement are identified as the five main stages in Lean Management. They can be briefly outlined as below:
Value Identification: The process of value identification involves close interaction with customers and identifying the value which matters most for them. It emphasizes on the need to understand client’s unmet demands and preferences for satisfying which he / she is willing to pay more.
Value Stream Mapping: The value stream includes the entire process from converting the raw material into finished goods or services. The current state is mapped to identify value-adding and waste activities. Future state is mapped to more effective value stream. Then improvement strategies are developed and implemented.
Eliminating Waste: Lean thinkingidentifies waste in 8 broad topics as Overproduction, Waiting, Avoidable Transport, Over Processing, Excess Inventory, Avoidable Motion, Errors and Flaws and Underutilised Employee Skills. The processes are streamlined to eliminate or reduce inefficient actions.
Pull Systems: In this approach, production is based on actual customer demand rather than thrusting the stocks in the market.
Continuous Improvement: It is said to be the cornerstone of Lean Thinking and is achieved by the active participation of employees of all levels. It is an ongoing process.
The article lists various industries like manufacturing, healthcare, e-commerce and software development where Lean Management can bring visible results. Agile approach in software development, which is characterized by iterative development and continuous improvement, is said to be a subset of Lean concept.
We can apply Lean concepts to our personal lives too and can manage our purchases and consumptions depending on our needs and resources. We can continuously improve our day-to-day processes by maximizing the value and minimizing the waste. Just-in-time (JIT) approach helps to solve storage problems in home too. Lean principles remind us the Tamil adage, ‘சிறுகக் கட்டிப் பெருக வாழ்’ reading ‘Sirukak katti peruka vaazh’ which can be roughly translated as ‘Live Lean but Lead a Fulfilled Life’.
Mirror of Times 