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Evaluation Of The Lean Approach To Business Management And Its Use In The Public Sector

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2. Definitions and Concepts

The definition of Lean Thinking used is:

"Specifying value by specific products, identifying the value stream for each product, make value flow without interruptions, let the customer pull value from the producer, and pursue perfection" (43, 64)

"Leanness is seen as an ideal to be pursued not a system to be implemented. It should be considered as dynamic and a journey rather than a fixed point that has no final destination" (23, 44).

However, it should be noted that although for the purpose of the literature review the definitions of Lean being used are the ones frequently cited but, for the purposes of the Project, the definition is expanded to include any good practice of process/ operations improvement that allows reduction of waste, improvement of flow and better concept of customer and process view. Considering this view of Lean, it is possible to draw on ideas from concepts such as Just In Time ( JIT) 13, Total Quality Management ( TQM) 14 and Business Process Engineering ( BPR) 15 particularly related to research that has been carried out into their implementation within organisations. We can, therefore, consider the notion of "Lean Principles" or a "Lean Philosophy", which relates ideas and concepts whose fundamental ideas lie in continuous improvement, elimination of waste, process flow and systems thinking developed throughout the organisation.

The proponents of Lean Thinking emphasise the scale of the opportunity to eliminate waste. The following quote is typical of those seen within the literature:

"Half the human effort in the factory, half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of products" (43, 66).

The actual scale of the improvement possible through the adoption of Lean Thinking is highly debatable and clearly contingent on the starting point for any lean initiative. Hence the scale of improvements achieved in other economic sectors might be more or less than that seen in specific manufacturing companies.

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Page updated: Tuesday, June 13, 2006