Key Concept
The lean manufacturing philosophy varies greatly from a traditional manufacturing mindset. Detty and Yingling (2000) reveal some of the greatest benefits of the lean process, namely; process stability, standardized work, level production, maintaining a minimal inventory, identifying quality problems at their source, improved quality control through production shut-down when necessary and empowered employees that are motivated to add to the continuous improvement of the production flow (p. 430). Meredith and Shafer (2010) further reiterate the benefits of lean as cost savings, increased revenue, investment savings, workforce improvements and uncovering problems (p. 201). Corporations must adopt the lean process as a whole and fully believe in its inherent value for benefits to be realized. A traditional-lean mix will only lead to mixed results and confusion.
I am particularly interested in the benefits of lean because it has been proven efficacious through time. As a manager, it can be eye-opening to research various process theories, such as lean. Employing a lean manufacturing system begs the question, “How good can we get?” Lean management is all about becoming a better, more efficient business. It is very exciting to learn about the process and be able to tangibly use it at work.
Comparison
Lucey (2008) provides evidence that the use of lean manufacturing in the United Kingdom has enabled companies to become more profitable and more efficient. The key areas in which corporations are benefiting are the improvement of processes, the removal of wastes, the reduction of costs, lead times and inventory levels and also the ability to diminish workforce size and improve performance (p. 19). This harmonizes well with what is presented in Meredith (2010) as it states that the primary benefits of lean are the reduction of inventory, the production of higher quality goods, a reduced lead time and a greater ability to identify problems (p. 201).
Gupta (2011) describes the highly competitive pharmaceutical industry and the immense pressure on corporations to continually improve their productivity and maintain steady returns on research and design. This is leading to a climate within the industry wherein there are aggressive cost control and process improvements. Pharmaceuticals are using lean processes to reach their goals and remain competitive (p. 30). One of the greatest areas in which these companies are improving operations is by proactively identifying defects earlier than they were prior to adopting the lean process (p. 31). Meredith (2010) agrees with this and states that uncovering problems is one of the greatest benefits of instituting lean; as the process speeds up, difficulties and obstacles are necessarily uncovered (p. 202).
Lander and Liker (2007) evaluate the use of the Toyota Production System within a highly specialized art company that produces clay pots. After evaluating this lean manufacturing system within a highly specialized environment, we see that it is not necessarily the strict adherence to the doctrines within lean that make the system successful, but more so the deep principle-based understanding and a structured method for learning and improving which make the system efficacious (p. 3696). Meredith (2010) harmonizes with this train of thought as long as the process improvements lead to the elimination of all types of waste and considers the pursuit to perfection (p. 175).
Article Summary
Bliss (2009) demonstrates the utility of lean management within the healthcare industry. Lean can be universally applied to almost any industry, and the healthcare industry is in desperate need of reform. The potential for lean to make an impact on healthcare is great. Not only does this affect business operations, but it can benefit communities as well (p. 39).
Bliss (2009) starts at the heart of the issue: the corporate culture. If the culture does not have the proper temperament for change, than instituting a lean system will not work. Virginia Mason and Exemplar Health are two companies identified as adopting a lean system. Both of these healthcare organizations share a commitment to cultural transformation and a commitment to leading in a different way (p. 40). It is noted that healthcare needs improvement, not because the workers do not work hard, or because they do not care about their job, but because the process that is used to deliver care is sub-adequate. Even though every patient is unique, there are still many repeatable and predictable tasks occurring such as registration, diagnosing, medicating and discharge (p. 41). These processes can be evaluated and made lean through continuous improvement.
Lean management can be beneficial in healthcare by creating efficiency, using resources better, raising the level of quality, and making life more enjoyable for both the employees and patients (p. 42). Meredith (2010) succinctly describes lean as “doing more with less” (p. 175). This is a noteworthy goal in both the manufacturing sector as well as the healthcare field.
Application
Using the lean system is highly applicable to the business place today. Through lean we see benefits such as cost savings, revenue increases, investment savings, workforce improvements and uncovering problems (Meredith, 2010, p. 201). As corporations adopt a lean model they are able to better evaluate their resources and make cuts to improve efficiency across the board. As the economy seems to stumble along, it is now possibly more important than ever for companies to utilize a lean management style. Competition is only going to become fiercer and lean can be an excellent tool for corporations seeking to gain an edge through cost savings.
Lean has the capability to greatly influence the business world. Companies will undoubtedly use benchmarking to compare themselves to other organizations and seek ways to improve operations. Finding ways in which corporations are saving assets and improving operations will lead many to the use of a lean system. Using a lean management style is undoubtedly one way to ensure that efficiency is constantly evaluated, and complacency is not allowed.
In Exodus we see Pharaoh commanding the Jews that he will not give them straw any longer, that they must go and get their own straw, yet their workload will not be reduced (Exodus 5:11, ESV). We must, as Christians, be good stewards and business people, but at the same time do so exhibiting the characteristics of Christ such as mercy, forgiveness and grace. We are to be fair and just. Pharaoh was harsh and unfair in his dealings, and the Lord delivered the Jews from his recalcitrant grasp. A lean management style can help us to get the most out of our resources and be the best stewards possible!
Annotated Bibliography
Bliss, D. (2009). Lean in Healthcare –Wow. Frontiers Of Health Services Management, 26(1), 39-42.
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Detty, R. B., & Yingling, J. C. (2000). Quantifying benefits of conversion to lean manufacturing with discrete event simulation: a case study. International Journal Of Production Research, 38(2), 429-445.
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This case study not only describes the lean manufacturing process and the benefits thereof, but also gives an overview of a study conducted to determine the benefits of a lean manufacturing system. In the study a model is used to portray a standard manufacturing system, as well as one that employs the lean manufacturing process. The simulation experiments that are used for the study are able to give a quantifiable measurement of each system’s performance. Along with the manufacturing process, warehousing, transportation, inventory management and production control schedules are all evaluated. This in turn is able to give the study a more holistic view of how tangible the benefits of lean truly are within the differing firms.
Gupta, V. (2011). Delivering Process Improvements. Pharmaceutical Processing, 26(6), 30-33.
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In this article we see a general survey of the pharmaceutical industry and how it is in need of continuous improvement. The lean process is spotlighted as a way to reduce costs and improve quality. There are eight different types of waste that are identified through using a lean manufacturing system. Furthermore, the article gives a big picture view of the future of the pharmaceutical industry and the necessity to adopt new, leaner manufacturing techniques. In closing, the work suggests that the use of lean will drastically improve profitability through waste reduction and efficiency improvements.
Lander, E. E., & Liker, J. K. (2007). The Toyota Production System and Art: Making Highly Customized and Creative Products the Toyota Way. International Journal Of Production Research, 45(16), 3681-3698. doi:10.1080/00207540701223519
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This paper is focused on the use of lean manufacturing within a highly specialized production environment. While lean manufacturing is generally used within corporations that are producing standard products at high volume, this article demonstrates the utility of the lean process with lower volume, more specialized products. Improvements within the quality, cost and delivery of items through lean is highlighted throughout the paper. An artistic clay pottery company is presented within the article as one that benefits by using the Toyota Production System (TPS) to manufacture its products. The article concludes by stressing the need for companies to be learning organizations that continually strive to improve operations.
Lucey, John. (2008).The State of Lean Manufacturing in the UK 2001 to 2006. Management Services, 52(3), 16-25.
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This article surveys the use of lean manufacturing within the United Kingdom, and its growth over the last decade. The work begins by defining the lean process, stating the benefits thereof and then elucidating on its use within the United Kingdom. The article gives definitive reasons as to why corporations are benefiting from the lean process such as the reduction of costs and increased productivity. The work then proceeds to define barriers to implementing a lean system, and stresses the need for corporations to adopt a lean manufacturing process to remain competitive in the ever evolving economy.
Meredith, R., & Shafer, S. (2010). Operations Management for MBAs (4th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
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