LEAN IN PRODUCTION AND SERVICE The word term ‘’LEAN’’ was put together to describe and personalize Toyota’s business activity during the 1980’s by a research team headed by one Jim Womack, Ph.D., at MIT’s international Motor vehicle programme. According to them, the concept of ‘LEAN’ was fathered by Taiichi Ohno of Toyota. Ohno developed a contrasting approach to the mass production methods of US car firms through necessity. Later, in 1996, Jim Womack’s team espoused the five lean principles and also lean tools that they believed were the secret for Toyota’s success.
According to Oxford dictionaries, Lean means efficient and with no wastage. The core idea of lean is to minimize wastage and at the same time maximize customer value.
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By trying to eliminate waste, the material velocity will be increase drastically. This means products will reach the customers hand in a very quick manner. This is an advantage because it delivers high strategic advantages beyond the obvious cost savings. Bad quality will be eliminated and lead times are shortened effectively. Eliminating waste can be considered as a strategic goal in service oriented and manufacturing oriented organizations. As I have mentioned before, elimination of waste will ensure increase in strategic advantages such as increased income and increased customer satisfaction.
In adapting lean processes and services, we may be confronted by some constrains and challenges. The adaptability of lean depends on the nature of our business. We have to remember that there is a vast difference in between the service and production industries, and it lies in the source that creates the variation that causes waste to happen. Logically, manufacturing operations are far more controllable compared to service industry, because of its laboratory like settings compared to the service industry. Uncertainty usually does result from material and labor inputs, but we can still anticipate those uncertainties and take steps to control it to a great extent. For example, Toyota, pioneer in lean management is production/manufacturing based organization, and