Lean Management: Principles And Benefits

1. Critically compare and analyse various concepts of Lean systems and their applications in the manufacturing and service environment.

2. Identify and analyse the various management and statistical tools of Lean systems, and compare and contrast with other management tools.

Introduction to Lean Management

Lean management can be defined as the approach of running an organization which supports the notion of continuous improvement. This is a long-term process which enables the organization to work in a systematic manner so that they can achieve small changes in the processes of the organization and improve the efficiency. Lean management mainly deals with the process of eliminating the waste of effort, time or money in the identification of each step in the business process and further removing the steps which are not necessary (Abreu, Alves & Moreira, 2017). The major principles which guide lean management are related to the definition of values for the customers. The process also helps in the identification of steps which are important for the business and eliminate the ones which are not necessary. The value-creating steps are sequenced in a tight manner so that the time taken for completing the process can be reduced. The previous three steps that are discussed above are repeated continuously so that the waste can be reduced (Campos & Vazquez-Brust, 2016).

Lean management had started in the automobile manufacturing industry however it is being used widely in all other organizations belonging to different industries. The major industries where this process is being used widely are, construction, higher education and the healthcare industry. The processes like total quality management and six-sigma are also related to the lean management of an organization. The lean management process of an organization of any sector is related to its long-term and rapid success (Carvalho & Azevedo, 2014). The important features of the Lean management of an organization include the following as discussed further. 24*7 access from any position. Platform related to the improvement projects that is centralized in nature. Workflow which consists of notifications and automated alerts (King & Lenox, 2001). The search capabilities are robust in nature. The tools related to built-in collaboration are present. The presence of analytics and advanced reporting. Measurement of the impact related to improvement and broadcasting of success. Visualisation of data and the dashboards.

The seven major benefits of the lean management system are as discussed further. The members of the organization have one source related to information. The lean management tools are available anytime round the clock for all the members of the organization. The improvement culture of the organization is supported by the lean management system (Choi & Hwang, 2015). The employees pay much more attention to lean system if the top executives are ready to invest on the process. The activeness in the management of the company helps in the sustainability of improvement of the processes of the organization. The repository of knowledge is developed by the teams in the organization and this knowledge can be used for further improvement. The leaders or the managers of the organization are able to detect the health of the lean system of management in the organization (Agarwal & Sharma, 2016).

Principles of Lean Management

This report will be based on five different case studies that are related to the implementation of lean management in the various sectors. The issues related to lean management process will also be analysed in the case study in detail.

The first case study that is being taken into consideration for this analysis is titled as “Lean and Green? An Empirical Examination of the relationship between lean production and environmental performance”. The case study is based on the analysis of the positivity of the relationship between environmental performance and lean management practices in the organizations. The analysis is done by taking into consideration 17,499 US manufacturing organizations which can help in establishing the relationship between these factors (Domingo & Aguado, 2015). The authors propose that the lean production related practices of an organization can be linked directly with the improvement of public good. This is further related to the improvement of the financial performance of the organization. The improvement of these factors are however related to the different attributes of the firm and ways by which the lean practices are implemented.

The adoption of the lean management related practices can help in decreasing the levels of pollution and the measures related to pollution can also be implemented easily in the companies. The research in this case study is mainly based on the factor that the lean practices can improve the environmental performance of the different companies (Dubey, Gunasekaran & Papadopoulos, 2017). The other consideration is that the pollution can be reduced by working at the source and not only improving organizational practices. The various organizations have been analysed in the case study paper based on the above mentioned considerations. The arguments that have risen based on the analysis are that the lean practices may directly lead to the reduction of environmental pollution. Waste reduction is also related to the other arguments based on this topic. However, the changes that take place in one process of the organization may further lead to changes in the other processes as well. Reduction of inventory may lead to the increase in the production of waste and the small batch of production can also lead to many change overs and disposal of the materials related to process (King & Lenox, 2001).

Lean production can also lead to the reduction of pollution in the environment and the pollution reduction activities can be taught to the employees easily. The implementation of lean production can therefore lead to the reduction of cost related to pollution reduction. This enables the company is lowering the costs related to the improvement of the environment as it provides the information related to value of the reduction of pollution (Dubey et al., 2016).

Benefits of Lean Management

The research is based on three major hypotheses that are as discussed further. Hypothesis 1 – The increase in the engagement of the organizations in lean production, increases the chances of the adoption of a formal management system related environmental problems. Hypothesis 2 – The increase in the engagement of the organization in lean production decreases the generation of waste and the decrease the engagement in end-of-pipe treatment. Hypothesis 3 – The increase in the engagement of the organization in the lean production will decrease the emissions. The different controls related to the organization that can influence the costs related to polluting and the way it can influence the degree up to which pollution occurs are also discussed in the research. The various controls are, the facility size, the costs related to abatement, the stringent regulations and the permits (Garza-Reyes, 2015).

The major issues that have been identified in the case study are that the lean is green concept can be supported only if the managers have the capability to adapt to the new practices in the management. The existing capabilities of the managers can help them in understanding the new processes, however, the organization needs to train them so that they are able to absorb the new technologies easily. This will also help them in clearly understanding the relationships between the markets and the new technologies (King & Lenox, 2001). The research supports the lean is green concept and it has depicted that the cost related to pollution reduction is decreased with the help of the lean practices. The adoption of different environmental standards related to the organization is also increased with the help of this practice (Greinacher et al., 2015).

The second case study that is taken into consideration for this analysis is titled as “Lean, green and the quest for superior environmental performance”. This case study is related to the analysis of the relationship between the practices related to lean management in the organization and the environmental performance. The survey is based on 31 automobile assembling organizations in Japan and North America. This is mainly related to the information collected from the interviews conducted with 156 employees at the plant level and 17 assembling related plants. The contribution of lean management related practices in increasing the efficiency of the cleaning solvents and paints is discussed in the research (Hartini & Ciptomulyono, 2015). The issues related to environment can affect the policies and corporate strategies of the various organizations which include, functional, business and operational activities. The efficiency of environment is related to the impact of the use of natural resources and materials in the process of manufacturing (Rothenberg, Pil & Maxwell, 2001).

Case Study 1: Lean Production and Environmental Performance

The processes and operational decisions related to prevention of pollution are related to environmental management of the company. Total quality management is also related to process of environmental management of the organization. The elements of the lean practices can be used to undertake the examination related to the role of management practices, systems and policies in the environmental efficiency. The lean model is related to the principles of the continuous improvement in the work processes. The employees in the line of production are mainly responsible for the identification of the problems in quality and the ways by which the problems in production can be solved. The human resource related policies are equally important in the organization as the technical system related to the lean production (Rothenberg, Pil & Maxwell, 2001).

The three major hypotheses that are undertaken in the research are as discussed further. Hypothesis 1 – The different aspects related to lean management including, buffer minimization, human resource related practices and work systems and their contribution towards the improvement of resource efficiency. Hypothesis 2 – The plants that have their operations related to lean philosophy and likelihood of the higher levels of VOC emissions. The management of the VOCs or volatile organic compounds act as a major challenge for the environmental managers in the plants. The technologies that are used in the plant for the reduction of environmental pollution are considered related to the management of VOCs. The technologies related to environmental pollution and the management practices are divided into two different categories which are mainly management practices related to the technologies of the pollution prevention. The second category is related to the management practices for the technologies formulated for the control of technologies (Jasiulewicz-Kaczmarek, 2014).

The results of the research have proved that there is a relation between the environmental performance of the organization and the lean practices. The cost related to energy is however related negatively with the use of energy in the plants of the company. The relation of costs of energy is positive with the volumes of the production. The results related to the interview of the employees have suggested that the three aspects of buffer minimization, lean management, human resources related practices and work practices influence the approach of the plant for environmental management (Johansson & Sundin, 2014). This influence can be both positive and negative in nature and can affect the environmental practices of the plant. The plants which are related to lean practices mainly view the end-of-pipe solutions as the diversion of the various resources of the organizations. The work practices in the plant also influence the environmental performance as the high levels of the participation of workers in the environmental activities in the lean organizations is a major factor. The environment related activities are also affected by the human resources practices of the organization which can be associated with the lean production processes (Rothenberg, Pil & Maxwell, 2001).

Case Study 2: Lean Management and Environmental Efficiency

The analysis has proven a complicated relationship between the environmental performance and the lean manufacturing processes of the plant. The major issues of this case study are that the capital expenditures related to abatement of pollution equipment are resisted by the lean plants. This would further help in the reduction of emissions that is required by the regulations of the plant. The plants are can compromise their principles related to lean management so that the emissions can be reduced. The increase the batch sizes of painting was also against the philosophy related to the plant. The lean plants have the aim to minimize the buffers and the wastes of the plants. The participation of workers in the production line of the plant and the continuous improvement is also important. The human resources related practices encourage the training of the staff related to environment and help them in the identification and the implementation of the opportunities related to waste reduction (Kasemsap, 2017). The lean organizations are also implementing practices related to environmental management which are not related to the overall strategies of the company. The major concern for the managers will be to balance the pressures for the improvement of environmental performance and the traditional measures related to the performance of the plants which have adopted the lean practices. The lean practices are therefore not able to address the various environmental issues. 

The third case study is titled as “Lean management – a step towards sustainable green supply chain”. The main aim of this case study is to analyse the important factors that contribute to evolution of the Green Supply Chain or GSC framework with respect to lean strategies of the organization. The industry that is taken into consideration for this analysis is the aviation sector and the downstream and upstream beneficiaries that support the industry. The major implications of this study are mainly on the managers in the different types of industrial environment in the aviation industry. These implications are related to the new era of the establishment of global lean supply chain which helps in the conversion of the lean management related initiatives to the GSC (Agarwal & Sharma, 2016).

Supply chain management came into existence in the 1980s and it was used for the discussion of the benefits of the integration of the internal business operations of the organizations. Supply chain management is mainly related to the management and coordination of the complex network of the activities which are involved in the delivery of the finished products. The supply chain of the organizations need to be made more resistant towards the abrasion of the global scenario in the modern day business environment. Lean supply chain is related to the reduction of internal waste in the organization with the implementation of lean methods of production (Malviya & Kant, 2015). The concept of green supply chain has also gained popularity in the modern business environment and have been able to increase the effectiveness of supply chain of the organization. The waste in the processes is reduced with the implementation of green supply chain practice. Lean and green practices are linked with each other and they are implemented for the waste reduction and smooth flow of processes related to business (Agarwal & Sharma, 2016).

The companies are trying to decrease the usage of energy as the rise in fuel prices have been a major concern for the organizations. The organizations are now trying to search for opportunities related to the conservation of energy and the reduction of carbo emissions. The major issue in the case study is the way organizations face issues with respect to the environmental management and the costs associated with these practices. The relationship between lean practices and green supply chain has proven to be critical in relation to the management of wastes of the organizational processes (Martínez-Jurado & Moyano-Fuentes, 2014). The major objective of the green supply chain management is related to the elimination or the minimization of the negative impacts of the organization on the environment. The other issue related to the case study is that the organizations in the developing countries have implemented environmental practices on an end-of-the-pipe basis rather than improvising their own processes (Agarwal & Sharma, 2016). The case study also does not relate to any processes in the organization which can help in reducing environmental impact. The focus related to the development of a framework has been maintained in the analysis. This framework is mainly related to the creation of the combination of the environmental and operational issues in the organization. 

The fourth case study has been titled as “Integrating lean and green management”. The major purpose of this analysis is the investigation of the relationship between Lean management and Green management. The purpose is mainly to develop an integrated model of management which includes these two processes of management. Green management and lean management are major approaches that have been adopted by the organizations in the modern business environment. These approaches have been implemented by the companies for the purpose of increasing the value of their services and products in the industry (Piercy & Rich, 2015). Lean management is related to the ways by which the companies continuously identify the wastes and the redesign the processes so that the wastes can be reduced. Green management on the other hand is related to the actions that are undertaken due to the regulatory requirements of the organizations. This mainly deals with the process of looking at the environmental impacts of the processes undertaken in the firms (Hallam & Contreras, 2016).

Lean production deals with the ways by which the firms follow a set of practices and principles that are related to the better operations of the company. Green production on the other hand is related to the sustainability of the operations of a particular organization. Green manufacturing refers to the usage of innovative techniques and green strategies and less consumption of raw materials in the production process. Lean production and green production are considered as compatible initiatives that are taken by the organizations. The joint focus of both these strategies is on the reduction of wastes and reducing the inefficiency of operations in the organizations (Tachizawa, Gimenez & Sierra, 2015).

The analysis made by the authors have shown that the green and lean practices have helped in the achievement of gains in the environmental and the operational performance. The lean practices have proved to be effective for the improvement of environmental performance of the organizations. The organizational performance as a whole is also affected by the implementation of the lean practices. The research has however nor depicted any positive relationship between the lean practices and green management. The major issue in this case study is therefore the lack of any integrated systems which can be able to link the green management and lean management practices as was stated in the purpose of the study (Hallam & Contreras, 2016).

The study in the report has therefore shown a weak relationship between the Lean management and Green management practices in the organizations. The only major link between the two practices is the way by which the lean practices push the green objectives of the firm. The results that are anticipated by the linkage of the lean and green practices are mainly optimistic in nature. However, the case study has not been able to provide integrated models of operations that are implemented in organizations. The analysis of the relationship between the lean practices and the green practices in the different organizations will therefore require much more research with the help of the knowledge related management and organizational cultures (Hallam & Contreras, 2016).

The fifth case study is titled “Lean and green: The move to environmentally conscious manufacturing”. The case study is mainly based on the analysis of the adoption of new technologies and approaches so that the environmental and organizational performance can be achieved by an organization. The major objective of this study is to examine the relationship between the advanced practices of production and the innovative approaches that are undertaken by the organization to facilitate environmentally conscious strategies of manufacturing (Uygun & Dede, 2016). The innovative organization with respect to the manufacturing process are also imaginative in nature when environmental costs are considered. The closed relationships that are formed on the chain of production and between the suppliers and the end users facilitate the process of adoption of the industrial and environmental innovations (Florida, 1996). The adoption of the advanced systems of manufacturing therefore creates opportunity for the adoption of the strategies related to greed design and green production. The survey is based on the analysis of US firms operating in the manufacturing sector.

The relationship between environmental performance and industrial performance becomes a form of trade-off where the high quality of environmental performance is achieved at the cost of the lack of industrial performance. Many studies have however implemented that the efforts related to the lowering of costs of the waste management techniques may not always affect the corporate performance of the organization in a negative way. The organizations which have innovative operations and adopt advanced practices related to manufacturing can also improve their environmental performance simultaneously. Environmental improvement can therefore flow from the broader corporate related efforts related to the innovation and implementation of more efficient and new systems of manufacturing (Florida, 1996).

The research in the case study was mainly based on the field survey and phone interviews of the staff of the various organizations. The major points that have been developed from the research are as discussed further. The organizations are leveraging the modernization strategies related to the industrial performance for the environmental duties. The firms prefer the reduction of raw materials and improvement of the production processes (Wu & Wang, 2016). The second point is the close relationship that has been detected between the green design and the spending related to research and development in the organization. The third point is related to the importance that is provided by the organizations to the industrial performance along with the environment related issues. The fourth point is related to the relationship that is established between the suppliers and the end-users in the production chain of the company (Florida, 1996).

The major issue that is identified in the case study is related to the ways by which the efforts of the firms related to improvement of the manufacturing process and productivity creates substantial opportunities related to the management of environmental performance. The organizations which have intensive research and development strategies are capable of both improving the productivity as well as the environmental performance. The involvement of environmental strategies which are productivity enhancing in nature can therefore help in the overall improvement of the organization in the market. The traditional trade off methods of making choice between the industrial performance and the environmental performance is not suitable for the sustainability and the productivity of the firms in the industry (Tachizawa, Gimenez & Sierra, 2015).

Conclusion

The report can be concluded by stating that lean management related practices have proven to be effective for the improvement of the environmental performance of the organizations. The five different case studies that have been analysed in the report are based on the relationship of lean management related practices with the environmental performance of the organizations. The positive relationship between the lean practices and the environmental performance of the organization has been established. The processes of lean management and green management and the relationship with superior performance of the organization o environmental basis is also analysed and a complex relationship has been detected between these two entities. The relation of lean management with the creation of a sustainable supply chain for the organizations is analysed. The ways by which the lean practices and green practices related to the environmental management of the organization is also discussed in detail in the report. It can therefore be stated that the combination of activities related to the increase in productivity and the improvement of environmental performance must be combined in such a way so that the organization can benefit from this. 

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