Lean Management

Section 1: A lean environment [LO1]

This section will help you to evidence Learning Outcome 1: Understand the concept of a lean environment.

|Learning objective                                                                           |Place in Assessment                               |
|1.1 Explain the principles of lean organisation techniques                                   |Question 1 Page 1, 2                               |
|1.2 Explain the benefits of a lean environment                                               |Question 2 Page 2                                 |

  1. What are the principles of lean organisation techniques? Name and describe the 5 main principles below. [1.1]

Principle 1: Specify what creates value for customers

This principle highlights the importance of recognising that in an organisation, it is important to identify that effort and time actually adds value for the end customer. This is achieved by clearly defining value for a specific product or service from the end customer’s perspective, in order to remove all the non-value and waste activities.

Principle 2: Identify steps along the process chain

This principle aims to identify and highlight all the different processes that work jointly to deliver the product or service. This section represents the end-to-end process involved in delivering a service from understanding what the customer wants to the steps needed to identify how to deliver the service or product.

Principle 3: Make processes flow by eliminating waste

By considering the 3rd principle of eliminating waste, this ensures that the product or service is delivered to the customer.

Principle 4: Respond to customer demand

This involved understanding the customer demand and creating a process to respond to the demand and produce what is needed by the customer.

Principle 5: Strive for perfection by continuous improvement

By reorganising the steps above,...