7. The relationship between "lean management" and "value"
Updated: Dec 17, 2019
Unfortunately, there is no single and common definition of lean management in the literature. However, when the definitions in the literature are examined, it is seen that some concepts are "sine qua non". What are these? These are "value", "simplification and acceleration of production", "reduction or elimination of waste", "the use of scientific techniques and methods". Furthermore, lean management is both the name of a philosophy and the use of the techniques required by that philosophy. The definition of lean management proposed in this direction:
Is it possible to remember the core steps of lean management? I want to share with you the answer I found when I asked myself.
The activities in Lean management is divided into three groups (Charron et al., 2015: 161). These are; (1) Value Value-Added ”, (2) Non Nonvalue-Added ”and (3) Nonvalue-Added but necessary activities.
For a better understanding of the "sorting out" action verb, it is important to know the three basic concepts and the differences among them.
The activities in the first group shall be enforced by the government in accordance with the legislation or law in force, or by the nature of the activity, or the rules to be complied with safety and health reasons. In lean management, the activities in this group are called Nonvalue-added but necessary activities. These activities do not add value to the process. It is recommended that these activities be dealt with in the medium or long term as legislation gets changed.
The activities in the second group are those that convert resources in such a way that it directly contributes to the needs of the customers. In lean management, activities in this group are called Value-added activities.
Activities in the third group are those that are needed in the production of products and services, but do not directly contribute to the customer's wishes and needs. These activities represent the resource, time or area used. These activities are called Nonvalue-added activities.
The first responsibility of the transforming the classical organizations into lean organizations is accredited to managers.
Managers should, ✒︎ Focus on the processes that will ensure customer satisfaction and realize the policies and objectives of the organization, ✒︎ Identify processes and activities that are nonvalue added activities,
✒︎ Make this approach a part of the business conduct, ✒︎ Conclude the action verb activities as soon as possible.
A Story about the topic
In ancient times, a king put a huge rock on the road to the palace, and he sat in the window, watching the passers-by. The richest traders of the country, the most powerful caravans, palace officials came one by one, from morning to noon. They all went around the rock and entered the palace. Many criticized the king: "He gets so much tax from his people, but he can't keep even the roads clean." Finally, a peasant came up. He brought fruit and vegetables to the palace. He lowered the backrest to the ground, wrapped it in rock with two hands and pushed it firmly. Eventually, the blood was sweaty, but he pulled the rock to the side of the road. He was about to get his back on his back, and he saw a pouch standing in the old rock. He opened it so he could see it was full of gold. There was also the note of the king ... "This gold belongs to the person who pulled the rock from the road," he wrote in the note.
Managers should also recognize, honor, and reward employees who tell them problems frankly and propose them improvement suggestions.
Quality is not an act, It is a habit.
The video link on this topic:
You can find more videos about Lean Management both in Turkish and English on my YouTube Channel "Dr.Bahtiyar EREN" Link: https://www.youtube.com/channel/UCxMmXLJBx712F9bo0AhvWrw
You can find the detailed information about Lean Management in my book "Lean Management and Techniques: Questions and Answers" published by Yazardan Direkt Publishing House. Please note that the book is in Turkish.
Please check my webpage www.freeleansixsigma.com for mor information about Lean Six Sigma both in Turkish and English.
Charron, R., Harrington, H.J., Voehl, F., Wiggin, H. (2015). The Lean Management Systems Handbook. Florida: CRC Press.