Lean Operations Management

Instructor: Kasandra Lane
Many organizations have started making changes in order to better their operations and benefit customers. In this lesson we will discuss the importance of lean operations management and the advantages it offers to organizations.

In today's world, organizations are concerned with how to make the most money while spending little-to-no money. But how can this be accomplished? A new management style, known as lean operations management, is focusing on greater efficiency in all aspects of an organization. This style helps create growth among organizations that are willing to simplify production and service in whatever ways possible in order to get rid of waste.

Simplifying an Organization

What does it mean to simplify an organization?

Simplifying an organization can be broken down in different ways.

1. Job Reductions: You may see jobs disappearing when management recognizes that there were many employees doing the same jobs, especially if there is no proof that they were making the organization more money; therefore, the organization was wasting money on irrelevant job positions.

2. Inventory Reductions: Keeping less inventory means that an organization keeps enough stock on hand to keep up with customers' needs while making sure products are not just sitting or being over-ordered. This ensures that an organization is not wasting money in inappropriate ways.

3. Production Time Reductions: Organizations attempt to reduce production times by getting rid of waste in any way possible, with waste being anything that slows production time and costs an organization more money that necessary.

These are only three ways of simplifying an organization. Each, and other similar methods, helps managers identify waste and learn how to better simplify operations while ensuring that customers' needs are met.

Why Lean Operations Management?

When organizations strive to use this style of management, they focus on meeting the needs of customers and clients - no matter what. They have to be sure they don't overlook the little details but still focus on simplicity and being the best of the best. This type of management may make production more simplistic, but it will do its best to maintain high efficiency and quality. By focusing on this management style, an organization is saving both itself and its customers money.

Lean Operations Management in Action

Consider the following:

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