Lean

The need for “Lean” derives as a result of numerous changes and dynamic environmental shifts that have influenced the industry around the world.

a) Technological Changes:- This factor is one of the fastest developing fields, allowing precision in processes as well as quick response and flexibility. Information technology simultaneously enables lower costs, flexibility, credibility, reliability and increases efficiency of manufacturing processes; as well as integrating marketing processes and collaboration with customers. The strategic overview of numerous businesses is influenced as a result of the improved collaboration between suppliers and their customers together with the ability to respond quickly to customer’s demand.

b) Globalization – The globalization process is defined as the unlimited geographical borders that allow the international arena to become a free marketplace in which the flow of investments is less manipulated by governments. Companies in industrialized countries are driven to accelerate improvements in industrial processes, improve technology, quality and work efficiency.

c) Changes in customer behavior – Lately, the highlighted link in the supply chain is the customer. Much emphasis and sensitivity is placed upon the customers who demand high standards of quality and real value for their investments. As a result of the competitive marketplace, the customers demand simultaneously personalized orders and quick response.

d) Changes in Business Environment The three factors stated above influence the business environment in which firms are currently active. Competitive processes force organizations to lower costs and to improve management of the supply chain. Additionally, there are several factors that may cause an organization to adapt “lean” principles: High manufacturing costs, significant changes in demand, non-consistent processes, lack of raw materials, sharp increase in manufacturing cycles, complex products etc.

Lean is...