Lean Management and Its Principles

Subject: Management
Pages: 2
Words: 309
Reading time:
< 1 min

The attempts to attain the higher levels of quality of goods and services can be viewed as a method to generate a beneficial advantage and struggle with rivals. For this reason, the companies try to create their own unique quality management framework and increase clients’ satisfaction levels. Toyota, as one of the leaders in the machine-building industry, has evolved its own LEAN management model, which has become popular. The spread of the LEAN model is linked to its ability to ensure a significant improvement and boost the performance of various companies. It rests on the five major principles:

  • Define value
  • Identify the value stream
  • Create a flow
  • Establish pull
  • Follow perfection.

The given five major assumptions are vital for organizing the functioning of any company and creating the conditions beneficial for positive change. The first principle presupposes that an organization should understand the current needs of its clients, which will help to generate value and additional income. Second, the identified values should be used to determine how a company can generate them or what actions will help to satisfy clients and make them return. All unnecessary processes that are not linked to value should be eliminated. It will help to create a flow of actions with no interruptions or failures. The company should also establish a pull or inventory that can be used to attain the desired purpose. Finally, there is a need for continuous improvement of all processes, as it will help to find new values and meet clients’ demands. In such a way, LEAN can be viewed as an effective approach to TQM, guaranteeing the firm’s ability to meet the continuously growing demands of the market and remain beneficial by working with its clients and organizing its functioning in a way that increases the level of their satisfaction.