Business Process

Re-engineering

Lean Management
___

Mansi Vishnoi

1. EXPLAIN FIVE BASIC STEPS OF LEAN MANAGEMENT

1. Define Value

To higher apprehend the primary precept of defining consumer cost, it's far vital to apprehend what
cost is. Value is what the consumer is inclined to pay for. It is paramount to find out the real or latent
desires of the consumer. Sometimes clients might not recognize what they need or are not able to
articulate it. This is mainly not an unusual place in terms of novel merchandise or technologies.
There are many strategies which includes interviews, surveys, demographic facts, and net analytics
that allow you to decipher and find out what clients locate valuable. By the use of those qualitative
and quantitative strategies you could find what clients need, how they need the service or product to
be delivered, and the rate that they afford.

2. Map the Value Stream

The second Lean precept is figuring out and mapping the cost circulate. In this step, the aim is to
apply the consumer’s cost as a reference factor and become aware of all of the sports that make
contributions to those values. Activities that don't upload cost to the give up consumer are taken into
consideration as waste. The waste may be damaged into categories: non-valued delivered however
important and non-cost & pointless. The latter is natural waste and needs to be removed whilst the
previous need to be decreased as an awful lot as possible. By decreasing and putting off pointless
techniques or steps, you could make certain that clients are becoming precisely what they need
whilst at the same time decreasing the fee of manufacturing that service or product.

3. Create Flow

After casting off the wastes from the cost circulate, the subsequent motion is to make certain that
the float of the closing steps run easily without interruptions or delays. Some techniques for making
sure that cost-including sports float easily include: breaking down steps, reconfiguring the
manufacturing steps, leveling out the workload, developing cross-purposeful departments, and
schooling personnel to be multi-professional and adaptive.
 2

4. Establish Pull

Inventory is taken into consideration in every one of the largest wastes in any manufacturing
machine. The aim of a pull-primarily based total machine is to restrict stock and paintings in
procedure (WIP) gadgets whilst making sure that the needful substances and facts are to be had for
a clean float of paintings. In different words, a pull-primarily based total machine lets in for
Just-in-time transport and production wherein merchandise are created on the time that they may be
wished and in only the portions wished. Pull-primarily based total structures are constantly
constructed from the desires of the give up clients. By following the cost circulate and operating
backwards thru the manufacturing machine, you could make certain that the goods produced may be
capable of fulfilling the desires of clients.

5. Strive for Perfection

The achievement of the first four processes prevents waste: 1) determining cost, 2) mapping cost
circulation, 3) creating float, and 4) implementing a pull machine The fifth stage in the pursuit of
perfection, however, is the most important of them all. It integrates Lean inquiry and continuous
procedure development with the company's culture. Every employee should strive for perfection
while delivering products that are entirely based on the needs of the customer. The company should
be a learning organization that is continually looking for ways to improve every day.

2. CRITICALLY ANALYZED DIFFERENT WASTAGES IN LEAN MANAGEMENT

Ans: One of the most fundamental criteria for developing a successful firm is eliminating
unproductive tasks. This concept is a key component of Lean thinking, and it can help you boost your
profits.

The Lean theory identifies seven primary areas where Muda activities can be found, known as the
Lean seven wastes.

1. Transportation

This sort of waste occurs when resources (materials) are moved without adding value to the final
product. Excessive material movement can be costly to your organization and can compromise
quality. Frequently, transportation will require you to pay extra for time, space, and machinery.

2. Inventory

Excess inventory is frequently the result of companies keeping "just in case" inventories. Companies
overstock to satisfy unforeseen demand, safeguard against manufacturing delays, poor quality, and
 3

other issues. Excessive inventories, on the other hand, frequently fail to meet customer needs and
offer no value. They just increase the costs of storage and depreciation.

3. Movement

Employee (or machinery) movements that are difficult and unneeded are examples of this type of
waste. They can result in injuries, longer production times, and other issues. To put it another way, do
whatever it takes to set up a process that requires workers to do as little as possible to complete
their tasks.

4. Remaining patient

This is perhaps the simplest trash to identify. The "waiting waste" arises when items or tasks are not
moving. Because lost time is the most evident thing you can detect, it is easy to spot. For example,
supplies that have yet to be delivered, equipment that has yet to be repaired, or a document that has
yet to be approved by executives.

5. Excessive production

It's easy to see why overproduction is Muda when you consider that waste is anything that the client
refuses to pay for. Producing more means you'll be able to meet the demand of your customers,
which will result in increased expenditures. Overproduction, in fact, is what causes the other six
wastes to appear. The reason for this is that extra products or tasks necessitate more transportation,
more motion, more waiting time, and so on.

6. Excessive processing

This form of waste is frequently the result of undertaking work that adds no value or adds more
value than is required. Such things can include providing extra features to a product that no one
would use, but which raise your company's costs.

7. Errors

Defects can result in rework or, in the worst-case scenario, junk. In most cases, defective work must
be returned to production, which takes time. Furthermore, in some cases, an additional reworking
area is required, resulting in increased labor and tool exploitation.

As you can see, the seven categories of garbage are hazardous to your company. You can, however,
regard them as a chance to improve work procedures and, most significantly, resource optimization.
The 7 types of garbage may have distinct elements for different enterprises.
4