Lean management means establishing a competitive management system by making the organization structurally and procedurally agile. It aims at developing efficiency in production, simplicity and efficiency in service delivery, improvement in quality, adoption of prompt production cycle measures, and development-oriented tendencies. Lean management emphasizes on the structural aspects of management, the systemic aspect of work and the agility of staff management. This lean management can be changed as per the need, acceptable to the client, operated by expert and skilled and technically skilled staff, economical and efficiency based, more productive than procedural, encouraging change oriented creativity, reduced hierarchy and wide scope of control.
Lean management is a unique and effective tool to ensure continuous improvement of organizational management. It is a process of gradual but continuous improvement. It is also a strategic improvement of the accelerated process. It was first used only in the manufacturing sector, later in the service sector and is now used in the military, police and public sectors. Lean management reduces unnecessary costs and aims to measure the satisfaction of its customers as well as stakeholders.
Techniques/ Processes of Lean Management
- Unnecessary staff cuts
- Development of group work
- Focus on production process
- Participatory management
- Delegation of rights and responsibilities
- Minimization of waste
- Minimization of human resources
- Development of human resources
- Focus on creative discipline
- Cooperation and partnership building
- Use of new technology
- Use of flexible time
- Unproductive costs and system reduction
- Emphasis on quality service delivery
- Expert service contracts
- Appropriate structural framework
- Utilization of external capacity
- Quick fulfillment of customer needs
- Support for good governance
- Focus on continuous improvement
Steps and Processes of Lean Management
1) In terms of policy
The organization should clearly identify its scope of work; do not work by government sector in such areas where the private sector and non-governmental organizations work; Emphasizing decentralization and liberalization; Focus all attention towards customer / consumer.
2) As a resource
To motivate, coordinate and arrange contracts for human resources as per the need; Arranging optimal use of financial resources; Achieving results using the full potential of physical resources; To make effective use of sources of data and information.
3) Organizational view
To establish an organization only for clear objectives and goals; Improving and changing the organizational structure; To carry out local level works from the community or private sector on issues other than the mandatory presence of the government.
4) Administrative view
To expedite the work through modern information technology; Reducing levels of decision; Competent leadership and delegation of authority; Motivated staff management etc.
5) Simplified process
Assign the contact person; effective management of Citizen Charter; Arranging procedures and directives; Implementing e-governance.
In the context of Nepal,
Value Production Process
Lean Value Principles
In the context of Nepal,
- Lean concept is accepted
- Started organizational reform
- Arranged a Citizen Charter with compensation
- Arrangement of helpdesk
- Arrangement of Nodal Officer
- Mobile governance
- Hello Sakar system
- Arrangement of two shift operations in urgent places
- Arrangement of compulsory training for employees
- Employee contract arrangement etc.
Value Production Process
Value production is the ultimate goods and services. Each layer in the line adds value. Whatever results are obtained at the end point of the organization is the result of a series of long steps. The main basis for the survival of any organization is to produce the right value at the right time and at the right price.
The structure of our organizations is based on a vertical process, which is the structure of organizations around the world, while the facilities and goods available to the people are horizontal. If there is no one to look horizontally in the organizational structure, then that organization becomes an orphan. As most of the management's assessments are accountable only to their respective departments, the results have been poor. Usually the flow of value is not completely normal, as well as what the needs of the people are, not even looking at the important business needs of the organization, they use what they have learnt or know.
Lean Value Principles
- Price Specialization:- Ingredient based and satisfaction based.
- Identify the flow of value
- Flow - to make value creating
- Continuous pulling
- To adopt perfection
- Price instead of waste
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