Sustaining Organizational Performance

Question: Write an essay about the lean management system. Answer: Introduction Lean management can be defined as an approach that facilitates the running of an organization towards attaining constant improvement. This is a long term approach that would bring about continuous alterations in the production processes to enhance the efficiency as well as the quality of the production processes of the business organization. Besides this, the lean management system identifies every step in the production processes of the business organization and enables the business organization to make necessary changes in the manufacturing process. In the case of a complex and innovative production capacity, the lean management system shall assist the business enterprise in reducing business activities that does not add value to the business organization. 1. Development of Lean Management Lean production has been done to reduce the unnecessary wastage of resource and facilitating cost control. Goetsch and Davis (2014) mentioned that a lean based production is done on the basis of a repetitive production system particularly in the automobile industry. However, Fullerton et al. (2014) noted the lean based production system would not be effective after considering the scale of operations, the production cost involved as well as the nature of the production and service line the firm is operating. The following are the principles of lean management. Time of lean implementation - The benefits of lean can be obtained if it is implemented at the right time. Thus, the most stable time must be chosen to adopt the lean production to create minimum disturbance to the existing business operations. The lean operation would incurr considerable cost to the business enterprise. As such, Martnez-Jurado and Moyano-Fuentes (2014) noted that the adoption of lean production. Assessing the complexity of the production process Bhasin (2015) mentioned that the lean management technique can implemented in the business organization after analyzing the complexity of the business processes. Attributes like the level of system improvisation, the benefits of technique as well as the tools and the processes used in the production process. Preventing the process activity in isolation The lean management process can be improved if it is executed in the lean management processes. Stability and routine processes - The lean management has been a stable as well as a routine process with a pre-determined plan set at the outset. Therefore, it has been a necessary innovation to enhance the operational process of the business entity with the minimum wastage of time and resources. According to Vigour (2015), the lack of stability in the lean management processes shall hamper the lean management processes in the production procedure in the organization. Production of high volume - The lean management system increases the production volume in the business organization, thereby, assisting the production processes. Clark et al (2013) stated that the lean management process has a predetermined plan relating to the production process, thereby, facilitating the production process in the business organization. Stable workforce - The lean management processes require a stable workforce to implement the necessary alterations in the production process. In this regard, the workforce has to be adequately trained to enable the business organization to reap the benefits of the lean management process. Traditional learning curve Soares (2013) stated that the organization would gain gradual knowledge and experience in the lean management processes. In addition, the traditional learning curve would facilitate the business organization to explore newer methods of production that would increase the rate of productivity and reduce the operational expenses of the business enterprise. According to Blijleven and Gong (2015) mentioned that the novelty as well as the lack in familiarity with the learning processes of the business organization would be detrimental to the implementation of the lean management processes in the business organization. In the case of low complexity in the business organization, it is essential that first order learning has been used to negate novelty by enhancing knowledge about the previously given uncertain tasks. Disruptions- There shall be pertinent disruptions in the manufacturing process of the business enterprise if the lean management process is implemented in the business organization. Thus, necessary measures shall be implemented to ensure that the business organization adjust well to the changing processes implemented in the business entity. According to Martins et al. (2015), disruptions are a necessary part of the lean management processes adopted in the business entity. Thus, interruptions in the operational part of the business entity are a common feature that has to be dealt successfully to serve the purpose of the business enterprise. Assessing the value and waste - The value of lean management processes in the business organization should at regular intervals of time as per the long term objectives and the goals of the business organization. Thus, Sparrow (2015) noted that monitoring the processes of the management shall be effective to assist the business organization in achieving the long term objectives of the organization. Assessing lean- Excessive use of the lean processes of a business organization shall be detrimental to the financial strength of a business entity. This would enhance the daily operational processes of the business entity and increase the expenditures, thereby, adversely influencing the financial strength of the business enterprise. Bhasin (2015) mentioned that lean management technique shall be restricted as per the needs of the organization According to Ballard and Tommelein (2012), the lean management approach emphasizes on processes constituting of efforts and activities that adds value to the end customer. Thus activities which do not add value to the client are categorized unnecessary and therefore leads to financial losses for the business enterprise. Thus, the lead management processes adds increased value to the client and can be done with lesser resources. 2. Application of Lean Techniques in Complex and Innovative Areas The lean management system has to be carefully used in the case of complex as well as innovative business systems. Thus, the management of the business entity has to be careful in selecting the nature of the processes to assist the business organization in enhancing the production processes of the organization. According to Meiling et al (2012), the lean management processes have to be implemented after considering the scale of operations, the nature of the product and the service line the firm is operating. In the case of the complex operations, there are certain initial costs that the business enterprise has to bear to ensure smoother business operations. In addition, the lean management system would incur certain additional costs to facilitate proper implementation of the lean management system in the business organization. The implementation of lean management processes shall depend on the nature of the product and the service line, the firm is currently operating. Thus, the lean management constituents and its implications shall vary as per the requirement and the type of industry it is adopted. According to Martnez-Jurado and Moyano-Fuentes (2014), the traditional practice of lean can lead to greater expenditures for the firm. Certain attributes like the timing, operations scale as well as the business environment have an essential influence on the operational processes of the management of the business enterprise. As such, the necessary factors have to be taken care of to aid the production processes of the organization. In addition, the lean management system shall also assist the business enterprise in reducing the workforce. According to Jylha and Junnila (2013), in the case of a complex and innovative production processes, the entity has to break the old structure and create a new one. The lean management processes has the primary aim to replace the existing processes of the business organization to implement the lean management processes. This would assist the business entity to reduce the cost of production and give cost benefits to the firm. The lean management processes have to maximize customer value by minimizing the waste of financial as well as non-financial resources of the business entity. According to Minh (2015), the lean management processes have to adhere to the company guidelines to ensure continuous changes as well as up gradations to the business enterprise. The lean management system of processes has to recognize each step in the production process that provides value or incurs loss to the production process. In the context of a complex operational process, the lean management processes assists the production processes in the following ways: Recognizing the needs of the customer and then taking appropriate steps for the growth of the customer. Identifying the steps in the operational processes that do not add extra value to the business organization In this regard, it a can be said that the value steps do not occur in a continuous step. Ensuring constant innovation in each to reduce the required wastage in the operational processes, thereby, aiding the organization in its growth. The lean management organization is result oriented. Therefore, the management of the organization have to structure the lean management process in such a manner to lead the business organization to achieve the pre-determined goals and the objectives of the business enterprise. However Bhasin (2015) noted that when the focus is on the end result, there can be certain malpractices that can have an adverse influence on the operational processes of the business enterprise. These malpractices are - increased production expenses, excess production as well as the increase in inventory. Thus, efforts should be made to strike a balance between the achievement of goals and consolidating the existing position of the business entity. Thus,this would be useful in the case of complex productions, thereby, facilitating the business organization to a powerful position. Withers et al (2013) mentioned that the lean management system has been traditionally used in the case of organizations having a large scale production. It has played an useful role in segregating the production process, and assisting in the implementation of advanced technology mechanisms. In this regard, the work culture shall be enhanced by the adoption of the lean management processes of the organization. 3. Evaluating Lean Management The lean management system has been distributed to five caveats to enable a business entity to successfully attain the benefits of the lean management in the production process. Wyton and Payne (2014) mentioned that these reflect the necessary characteristics of lean management especially in organizations that would require mass production. Exxon Mobil based on the US, has been using lean management techniques to ensure that the production processes is enhanced by preventing the unnecessary wastage of resourceshe lean management is divided into the five caveat to add the required benefits to the production processes of the organization. Following are the five caveats to lean implementation Caveat should be implemented at a time of less disruption There are various aspects to the implementation of lean management. The primary one being that the lean should be implemented at a time when the organizational processes are stable. As such, the implementation of lean management would bring a certain level of disruption to the city. The needs of the organizations - The organizational needs should be appropriately analyzed before the implementation of the lean management. As such, it can be said there are various level of complexities involved in the implementation of the lean management. The scale of operations as well as the level of technicalities involved should be considered before the implementation of the lean management in the organization. Improvement of the product in isolation - A common perception in the adoption of lean management processes is that the product can be improved in isolation. In this regard, it can be said that the inputs have to be taken from the operational and the finance department to implement the lean effectively in the business organization. According to Bhasin (2015), necessary inputs shall be necessary to enhance the quality of the manufacturing processes in the business organization. Therefore, it is necessary that the lean management system is implemented in the business organization, to reduce the level of cost in the manufacturing process and increase the productivity rate in the business organization. Re-innovate value and waste - The value as well as the waste in the business organization shall have to be viewed differently in the context of a novel and a complex business environment. A substantial amount of the wastage of resource can be largely attributed to the production processes. Thus, the lean management system shall help to reduce the amount of waste involved in the production processes According to Schwagerman and Ulmer (2013), the lean management process is a strategic structure that would re-innovate the existing manufacturing processes in the business organization. Therefore, the primary characteristic of lean management is the minimizations of waste and adding value to the end product offered to the consumer. Assessing the performance of the lean management - It is necessary that the lean management system is measured, in the context of its contribution towards the manufacturing processes of the organization. In addition, increased adoption of lean management processes in the organization, without assessing the relevant consequences shall pose a threat to the business sustainability. Bhasin (2015) mentioned that an overdependence on lean management would lead to heavy financial expenditures on the business organization. The complexity of the systems - In the context of a lean management , the complexity of the systems has to be judged from the point of view of the production implemented in the business organization. Meiling et al (2012) mentioned that the organization follows a mass scale production process and therefore encompasses a large number of manufacturing complexities in the production procedure. Thus, the implementation of the lean management system has to consider the various manufacturing as well as the operational strategies involved in the lean management procedure. According to Tahmasebi and Mohamadesmaeil (2014), lean management shall be implemented in the business organization after identifying the needs of the business organization. In the case of this organization, the business entity has to understand the needs of the production process at each step. Therefore form the gathering of the raw materials to the assembling of the manufacturing process of the organization, every step was evaluated as per the lean management processes. In addition, the production process was re-innovated as per the organizational needs. The production process followed in the business organization has been effective in meeting the long term goals and objectives of the business enterprise. In this regard , Ballard and Tommelein (2012), it can be said that the lean management technique has been of essential support to the business enteprise. Thus, it has added a newer dimension to the production process and has helped the business organization in achieving the economies of scale. It can be said that the lean management system have been instrumental in reducing the cost of production in the existing year when compared to the previous year. As such, it can be said that the complexities of the production process was handed in an adequate manner through the adoption of the lean management processes. Isolation The lean management process would not be effective if it is implemented in isolation. Therefore, it has to consider the opinion of the production as well as the finance department to improve the operational processes of the business enterprise. Goetsch and Davis (2014) mentioned that the lean management implemented in the business organization cannot be successful unless other external market elements like consumer preferences, market demand as well as the economic condition of a place is taken into considerations. Therefore, implementation of the lean management processes is a joint effort requiring cooperation from the management or the leadership group in the organization. The concepts of flow and waste - The lean management system differentiates between the processes which are most likely to provide benefits to the business enterprise. As such, the brand recognizes the processes that can result in wastage for the business organization. Being a large scale manufacturing processes the lean management has to make the necessary changes to the manufacturing process of the business organization. In this regard, it can be said that the lean management system has all the constituents that can make the lean management process successful. According to Fullerton et al. (2014), the concept of flow and waste is an essential part of the lean management process. The following are the characteristics of an effective lean management system Labor Overproduction Space Defects Inventory Transportation These production wastages have an adverse impact on the operational processes of a business entity Ballard and Tommelein (2012) mentioned that lean management system seeks to reduce the above wastes and occupy a structured production system. As such, the effectivity of the manufacturing process increases through the adoption of a lean management system. According to Blijleven and Gong (2015), it has been helpful in reducing the manufacturing defects, earlier left undetected. Thus, the lean management processes has been effective in reducing any discrepancies that might have crept in the manufacturing process. In this regard, it can be said that in the case of the business organization the operational efficiencies of the brand has improved to a considerable extent when the lean management system has been adopted in the business organization (Wyton and Payne 2014). Thus, this has contributed largely in achieving organizational sustainability. Lesser inventory waste The lean management system has led to greater operational efficiencies through the reduction of inventory waste. Jylha and Junnila (2013) mentioned that the loss of inventory in the manufacturing processes of the business organization has been of pertinent issue and concern to the production department. Besides this, this has led to increased operational expenses for the business enterprise. The lean management system adopted oin the business organization has assisted to prevent such issues. Requirement of lesser space- Due to the lesser requirements of the inventory levels and manpower in the production process, there shall be greater space available (Goetsch and Davis 2014). Thus activities like receive count, stock, store pick as well as deliver would be performed with greater efficiency. Ensuring a safer work environment- The lean processes would make the production process safer and would reduce the chance of any accidents. According to Wyton and Payne (2014),this shall drastically reduce the chances of any untoward accident endangering the lives of the employees. The production process shall have lesser tools and equipments in the manufacturing processes of the business manufacturing processes. Conclusion It can be said that lean management has been a recent innovation that has assisted any business organization to achieve production as well as operational competencies. In this regard, it can be said that it is especially useful in the manufacturing sector , to reduce the production waste and enhance the manufacturing processes of the department. The lean management system offers many benefits which are better quality and lesser defects. The lean management system changes the overall constituents of the production process. Therefore, it increases the overall quality of the manufacturing process. References Ballard, G. and Tommelein, I., 2012. Lean management methods for complex projects. Engineering Project Organization Journal, 2(1-2), pp.85-96. Bhasin, S., 2015. Appropriate Measurement Tools. In Lean Management Beyond Manufacturing (pp. 139-148). Springer International Publishing. Bhasin, S., 2015. Lean and performance management. In Lean Management Beyond Manufacturing (pp. 117-137). Springer International Publishing. Bhasin, S., 2015. Lean management beyond manufacturing. New York, NY: Springer International Publishing, 10, pp.978-3. 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