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Entrepreneurs have always sought the means of maximizing the output and reducing the number of costs to zero. In the 21st century, in the realm of globalization and technological breakthrough, the philosophy of lean production works was the key tool for achieving the above-mentioned goal. Lean operations, traditionally identified as the philosophy aimed at minimizing the number of production costs, provides such an opportunity and, as a result, is a common practice nowadays (Dolgui and Proth 218).
Designed and suggested by Toyota, the principle of lean operations is obviously a product of its time. Its very existence is predetermined by the technological breakthrough of the era and the existence of the informational society. Without the principle of lean operations, modern companies would not be able to exist in the environment of the global economy.
The significance of lean operations for present-day entrepreneurship cannot be overrated. If it has not been for the introduction of the aforementioned principles, the idea of a narrow job specification and, therefore, the premises for a consistent increase in the quality of the end product, would not have emerged.
Moreover, lean production has also made it possible to improve the strategies adopted for accounting. It is essential that lean operations help make efficient use of every single resource available; thus, the output-input ratio of a company may rise considerably with the adoption of the principle in question.
Lean operations, therefore, can be deemed as rather important in the global market. They are connected very closely to the JIT (Just in Time) principle, which allows for a connection between organizational management and business practice, therefore, making the company’s performance more efficient (Medina-López, Alfalla-Luque and Arenas-Márquez 39).
Among the key objectives, which a company integrating the principle of lean operations into its production process, may have, the goal of reducing the number of costs for the production process, logistics (including transportation), promotion campaign and the delivery of the end product should be mentioned first.
However, apart from a drop in financial losses, rapid growth in the quality and the amount of goods produced is also included into the key objectives of accompanying with lean operations as its basic strategy (Dolgui and Proth 119).
Traditionally, five principles of lean operations – or five lean principles, as they are generally referred to – are listed when addressing the concept.
These principles include the concept of value from the customer’s perspective, the identification of the steps to be taken in order to accomplish the goals set previously, the facilitation of the process flow, a complete compliance with the existing demand, and the avoidance of any type of costs or wastes (Salman et al. para. 2.2). Therefore, lean operations set a sustainable environment within a company, both from an environmental (waste reduction) and an economic (change in perspective) aspect.
Unless Toyota had not introduced the concept of lean operations into the modern organization management theory, attaining high level of performance would be barely possible nowadays.
Lean operations allow for a complete reinvention of the company’s accounting model and the following reduction of costs, as it helps reduce waste almost to zero. Lean operations incorporate customer-focused strategies and the key postulates of sustainability. The concept of lean operations is especially important for running a business in the environment of global competition.
Dolgui, Alexandre and Jean-Marie Proth. Supply Chain Engineering: Useful Methods and Techniques. New York, NY: Springer Science & Business Media.
Medina-López, Carmen, Rafaela Alfalla-Luque, Francisco Arenas-Márquez. “Active Learning in Operations Management: Interactive Multimedia Software for Teaching JIT/Lean Production.”Journal of Industrial Engineering and Management 4.1 (2011), 31–80.
Salman, Mustafa Ramzi, Roman van der Krogt, James Little and John Geraghty. “Applying Lean Principles to Production Scheduling.” Academia.edu. n. d. Web.