---

---

Lean Management is a management philosophy based on the Toyota Production System (TPS). This management philosophy was coined "Lean" only in the 1990s. The objective of Lean Thinking is to eliminate everything that does not add value (i.e. "waste") from the customer's perspective; and on maximizing value for customers, in order to improve efficiency, quality, and overall performance.

The core principles of Lean include:

• Waste Elimination: Lean seeks to identify and eliminate waste in all areas of the business, including activities, processes, and resources that do not add value for customers. By eliminating waste, organizations can reduce costs, improve efficiency, and increase the value of their products and services.

• Customer-centricity: Lean Management focuses on understanding and meeting the needs and preferences of customers—and on delivering value to customers in the most efficient and effective way possible. By prioritizing the needs of customers, organizations can ensure that their products and services are well-suited to the market, and that they are delivering value to customers.

• Continuous Improvement: Being Lean is all about continuously identifying and implementing small, incremental improvements to processes, products, and services. By adopting a Culture of Continuous Improvement, organizations can create a mindset of learning and growth, and can drive ongoing improvements to their performance and efficiency.

• Empowerment and Engagement: In a Lean Enterprise, we empower and engage employees. Lean Management provides employees with the tools, resources, and support they need to be successful. By empowering and engaging employees, organizations can create a positive and productive work environment—and can encourage Innovation and Collaboration.

There is a vast inventory of Lean techniques and tools available, which have been established and tested with numerous case studies. Examples of Lean frameworks include Value Stream Mapping (VSM), 5S, Kanban, Kaizen, Poka Yoke, Gemba Walk, Hoshin Kanri, Plan-Do-Check-Act (PDCA), Root Cause Analysis (RCA), Heijunka, etc.

We have also published an in-depth article on Lean Management, which breaks the 8 types of waste and other foundational Lean concepts.

For effective implementation, take a look at these Lean best practices:

• 001_Introduction to Lean Six Sigma (16-slide PowerPoint deck)
• Lean Six Sigma | Excellence in Operations (50-slide PowerPoint deck)
• Supply Chain Cost Reduction: Warehousing (33-slide PowerPoint deck)
• 005_Waste Elimination Overview (Lean) (21-slide PowerPoint deck and supporting ZIP)
• PSL - Executing Lean - The "Success Mantra" (116-slide PowerPoint deck)

Related Flevy Management Insights

• Lean Transformation Project for Health Care Firm
• Lean Management Improvement for a Global Retail Organization
• Lean Enterprise Transformation for a High-Growth Tech Company
• Lean Transformation in E-commerce Fulfillment
• Lean Transformation in Telecom Operations
• Lean Transformation in Building Materials Sector
• Lean Transformation Project for a Large-scale Manufacturing Firm
• A Holistic Lean Enterprise Optimization Initiative for a Global Automotive Firm
• Lean Thinking Implementation for a Global Logistics Company
• Lean Enterprise Transformation for a Global Pharmaceutical Company
• Lean Transformation for a Global Food Processing Company
• Lean Management Efficiency Improvement for a Growing Tech Firm
• Lean Thinking Implementation for a Global Technology Firm
• Lean Process Enhancement in Aerospace Defense
• Lean Operational Excellence in Specialty Chemicals
• Lean Operational Overhaul for Specialty Retailer
• Lean Management Overhaul in Aerospace Component Manufacturing
• Lean Management Enhancement for Specialty Retailer
• Lean Enterprise Transformation in Power & Utilities
• Lean Process Enhancement in Telecom Infrastructure
• Lean Process Enhancement in Electronics Manufacturing
• Lean Management Enhancement in Specialty Retail
• Lean Transformation in Specialty Chemicals Sector
• Lean Management Enhancement in Renewable Energy
• Process Improvement
• Lean Management/Enterprise
• Robotic Process Automation
• Continuous Improvement
• Business Process Design
• Waste Identification
• Lean Startup