Introduction
Organizations embrace new approaches to deal with problems arising from their daily operations. The system they adopt determines whether or not the organization continues to remain relevant in the market. As they grow, the demand for adequate data storage facilities, security, speed, and robust systems increases. All these requirements are intended to accommodate the increasing number of their customers. Organizations may blend sophisticated technology with modern methods to handle clients and offer faster, more secure, and more reliable services. For example, emergent technology like cloud computing is widely used by organizations that receive vast amounts of data daily. The following paper studies the transition process of moving from the traditional ways to the cloud environment using the lean methodology.
Background Information
The emergence of the Lean business model is attributed to the Toyota Production System (TPS), which used the approach to optimize its production (Amaro et al., 2019). Some of the concepts on which lean is embodied include Standard Work, Kaizen, Heijunka, Just-In-Time (JIT), and Jidoka. Standard Work creates harmony in the work procedures and is focused on quality and a flexible working environment. Kaizen advocates for continuous improvement, Heijunka aims at a mixed production system, while JIT involves producing only the needed quantity at the required time. Jidoka is a Japanese principle that aims to reduce human intervention in the control of machines. Research from Amaro et al. (2019) also provides a five-phase method – the DMAIC cycle – to bring change to an organization. Cloud computing is a recent technology that features the use of virtual resources which are hosted far from the location of an organization. Cloud is one of the industry 4.0 technologies that are focused on improving functionality. Research (Shahin et al., 2020) provides that cloud-based data storage “allows for more effective data sharing within departments and dynamic scheduling of maintenance benefits.’
Lean Concepts
Operations Management
The principle of lean operation involves doing more with less; it is a customer-focused approach that employs just-in-time production and reduces waste (Davis et al., 2021). The main goal is to create an environment with no waste of resources and optimized to provide faster consumer services. According to Zhang et al. (2020), “lean implementation eliminates waste through preventive measures to reduce environmental pollution while reducing costs.” Return on investment increases, and the total cost of production is significantly lowered. Implementing the lean operations strategy requires first assessing the organization to determine if there’s a flaw, then streamlining employee communication to ensure consistency.
Six Sigma Methodology
It is a quality-oriented method that helps organizations trace their products and services to identify and eliminate any defects. The central ideology is to work for the customer, establish and eliminate the problem, remove variations, embrace clear communication, and ensure flexibility and a responsive work environment (Purdue University, 2021). The capability of the current system is measured to understand the intensity of the defects if present. During the analysis stage, the root cause of the problem is identified and then corrected by improving the defective sections. Finally, the new activities added are monitored to ensure that the previous mistakes are not repeated.
Main Characteristics of Lean
Lean has several distinctive characteristics; for example, it aims to optimize the organizational operations as one whole entity. Research from The Good and Hoo (2021) asserts that the “lean marketing approach offers the budget, time, and ability to try ideas with a build-measure-learn sequence that drives results quick. Moreover, it creates knowledge since it is learning system that builds on the products’ data and experiments of different workflows. The system efficiently removes waste (which the customer is likely not to buy). The lean system leads to quality products because of the gradual growth that results from improvements made.
Four Building Blocks of a Lean Production System
The main aspects of lean management can be grouped generally as lean management accounting practices, value-stream costing, and visual management methods (Davis et al., 2021). The three aspects cover customer focus, accountability, responsibility, and Generalist management principles. The system is improved to fit the customer’s needs, and the operations of different organizational entities are synchronized to create uniformity in production. Every step is measured to track defects, and the workforce is also optimized so that waste is limited.
Benefits and Risks of a Lean Production System
Lean has several benefits to an organization, such as increased savings and revenue, reduced costs, improved productivity, reduced waste and errors, and increased engagement of employees (Panayiotou & Stergiou, 2020). The organization will be able to limit waste and allocate resources based on priority. For this reason, there will be a surplus left for savings. There will be steady production of quality products because lean provides an effective mode of managing inventory.
Lean Improvement Tools
Research from Djupsjö (2019) provides that the three main tools for improvement in lean are Kaizen, Kanban, and Value Stream Mapping (VSM). Kaizen is a tool that ensures constant improvement by identifying defects and providing remedies to keep production quality. Kanban is a tool that offers a visual impression of the number of goods or services to be provided within a given duration of time. The research by Djupsjö (2019) also shows that the Kanban tool is well-suited when it is an ongoing process. It helps identify the less productive tasks, optimize the workflow, and provide a means of collaboration geared towards bringing improvement. Kanban has a visual board that simulates the actual environment within an organization. The VSM is a tool that is used in destroying waste. It does this by keeping track of the current and future states; then providing a plan that will be useful when migrating from the old system.
Case Evaluation
Research by Shahin et al. (2020) provides a cloud-based Kanban Decision support system composed of seven modules: production, scheduling, performance indicators, decision support, system setup, quality, and customer service. Migrating to the cloud involves establishing business goals, creating a security strategy, copying data to the cloud, moving business intelligence, and switching production from on-premises to the cloud. Using lean to improve organizational production would be beneficial in a cloud environment, mainly because it enhances a company’s online presence. Most customers order items online and would have them delivered at their doorstep rather than going to the physical location. Administrative services would be much more efficient when automated in the cloud. The computing power offered is fast, reliable, and has vast storage. There is no need to have physical servers and powerful computers because cloud providers provide all the functionalities. Therefore, cloud is cheaper and avoids waste by paying only for the resources used.
Conclusion
In conclusion, lean is a perfect method when needed to improve production, be it in small or large organizations. Blending it with cloud computing strategies is beneficial because the number of workers employed is significantly reduced. Using the six-sigma technique to analyze data migration steps can substantially improve production because the system will be quality and readily available to customers. The elasticity of the cloud infrastructure is essential to accommodate the varying number of customers visiting the organization’s website.
References
Amaro, P., Alves, A.C., Sousa, R.M. (2019). Lean Thinking: A transversal and global management philosophy to achieve sustainability benefits. In: Alves, A., Kahlen, FJ., Flumerfelt, S., Siriban-Manalang, A. (eds) Lean Engineering for global development. Springer, Cham.
Davis, P., Schleifer, L., Shackell, M., & Widener, S. (2021). Creating a lean environment. Strategic finance.
Djupsjö, T. (2019). Key issues and strategies for implementing the Lean Methodology in organizations [Master’s thesis, The University of Arcada]. Arcada University of applied sciences.
Panayiotou, N. A., & Stergiou, K. E. (2020). A systematic literature review of lean six sigma adoption in European organizations. International Journal of Lean Six Sigma, 12(2), 264-292.
Purdue University. (2021). What are the Lean Six Sigma principles? Lean Six Sigma online certification & training at Purdue University.
Shahin, M., Chen, F. F., Bouzary, H., & Krishnaiyer, K. (2020). Integration of Lean practices and Industry 4.0 technologies: smart manufacturing for next-generation enterprises. The International Journal of Advanced Manufacturing Technology, 107(5), 2927-2936.
The Good, & Hoos, D. (2021). How Lean marketing principles provide better conversion rates (in less time). The Good.
Zhang, Bo, Niu, Zhanwen & Liu, Chao-Chao. (2020). Lean tools, knowledge management, and lean sustainability: The moderating effects of study conventions.Sustainability, 12(3), 956.