Business dictionary

What is Lean Management and why you should apply it to your company

David Vega

David Vega

28 Oct 2021

Table of contents

    Customer satisfaction and productivity are both decisive parameters to measure a company’s success, don’t you think? So, aiming to improve both, many corporations have made the decision of implementing the Lean Management method and… such a wise move! Today we want to tell you what is Lean Management and why you should apply it to your company.

    Lean wants to create an effective method of managing and optimising processes with continuous improvement, thus erasing what we call “wastes”. Do you want to know more?

    What is Lean Management? History and origins

     Lean wants to create an effective method of managing and optimising business processes.

    As well as Kanban, a method we have already studied, Lean was born in Japan; it is derived from Toyota’s operating model. Kiichiro Toyoda developed this philosophy so that “machines, people and facilities work together to add value without generating any waste”.  

     Toyota promoted an improvement system based on minimising costs and increasing productivity, getting rid of everything that didn’t add value to the final product.

    Do you want to know more about how Toyota carried out this idea of Lean Manufacturing? Click here to read all about the 5S Lean Principles: Seiri, Seiton, Seiso, Seiketsu and Shitsuke.

    Oh, and wait there, are you in a rush? 🤔⏬ Download this infographic so you can have all the info saved on your device, always on hand! Main goals, a quick guide to follow, all its benefits…

    What are the Lean Management principles?

    First of all, applying Lean Management to a company must come with a change in the mindset to maximize de value. This philosophy leads to a new way to perceiving, elaborating and launching new products or services through a resource sustainability strategy.

    The Japanese formula has 5 basic principles:

    • Define value: it is very important to understand the value the customer is really paying for and strengthen it. Every process or step in the way that doesn’t add any value to the final result will be considered a waste.
    • Map the value stream: identify and map the value stream, employees and processes involved so you can get a general image of the project.
    • Create flow: after removing wastes, you must be sure that the process goes on smoothly, without interruptions or delays.
    • Establish pull: the heart of Lean is to base production on demand, so machines only begin working when they are truly needed.
    • Pursue perfection: this methodology is alive, and that’s why you need to be connected all the time, looking for gaps to be filled. It is a continuous process.

    Lean Management main goals

    Lean Management’s first goal is to improve organizational processes in a company by using less resources, but more efficiently, erasing from the map all those activities that don’t add value to the customer’s experience.

    Usually, these are the three main lines of action:

    • New concepts, tools and methodologies to ensure efficiency.
    • Organizational optimisation involving everyone working at the company, strengthening the team’s abilities and helping them to keep improving.
    • A new company culture, based on productivity and pursuing perfection.

    How is Lean Management applied in a company?

    Actually, there is not a single recipe to implement Lean in your company, each case has its own method, that is why Lean is an open and personalised formula.

    Lean is an open and personalised formula; it adapts smoothly to each business model or project.

    Some things you’ll definitely have to consider if you want to apply lean to your company are:

    • Avoiding interruptions and eliminating wastes: if there are unnecessary phases or “bottlenecks”, don’t be afraid to root them out! The mindset change begins with determination.
    • Weight up your customer’s needs: they and their experience must be the heart of your project, so encourage feedback!

    Keep in mind that implementing this process should be sequential, gradual and balanced.

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    Books on the Lean Method

    Want to know more? We recommend these books that apply the Lean method to different sectors:

    Construction

    The Lean Method Applied to Construction by Jesús Sicilia. Topics: waste reduction, process improvement, and customer satisfaction.

    Healthcare

    Lean Healthcare: Transforming Healthcare Delivery by Michael J. Wood. Topics: reducing wait times, improving patient safety, and cost reduction.

    Software development

    The Lean Method for Software Development by Mary Poppendieck and Tom Poppendieck. Topics: cycle time reduction, quality improvement, and increased customer satisfaction.

    Startups

    Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses by Eric Ries. Topics: building a minimum viable product and validating customer assumptions.

    Lean Management and workspaces

    Flexibility is always a key point to success in your company, even at the workplace.

    Once we have analysed what Lean Management is and how to apply it to your company, it is very important to set the stage for it to be as organic as possible.

    Taking the final step towards Lean Management and applying it, there is nothing more important than flexibility. A closed management formula and the conventional concept of an office don’t work if you are seeking productivity and efficiency above all. This also translates into workspaces and their capacity to reshape to meet our needs.

    Lexington’s flex spaces formula will provide your company what it needs when it needs it, saving money, avoiding wasting resources and space and dodging rigid contract conditions. All of it is also considered a waste by Lean. A hybrid office, suitable for team rotation, or booking your office space by the day or month are solutions available for you to gain in flexibility. Working in flex spaces will allow you to gather the team to evaluate the project or have meetings with suppliers and clients in a premium location, accessible for everybody. Listen to what they have to say!

    To sum up, Lean is an Agile Management methodology that was created to give an upgrade to competitivity and production processes. If you are currently looking for a revolution in your company towards productivity and efficiency, start by changing your management to Lean, your workspace to flex and your wastes to wins.

    "Before you say you can't do something, try it."

    Kiichiro Toyoda

    The author

    David Vega
    David Vega

    The one and only CEO in Lexington, David is the essence of our #RebelDNA. It’s in his blood! He probably knows everything about flexible workspaces and how to find the best combination between workplace strategy and talent. He’s the one behind every improvised plan with the team and this big family we are at the office. The best? Indeed.

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