“Lean is… a mindset, or way of thinking, with a commitment to achieve a totally waste-free operation that’s focused on your customer’s success….It is achieved by simplifying and continuously improving all processes and relationships in an environment of trust, respect and full employee involvement….It is about people, simplicity, flow, visibility, partnerships and true value as perceived by the customer.” Ref: David Hogg, High Performance Solutions. This definition gives the essence of what lean is and its importance in the business. Many business undertakings have adopted the system of lean into their functions with the intention of surviving and succeeding in the market surrounded by economic slowdown and stiff competition.

The introduction of lean into the organization requires the company to chart out the value stream to identify the elements and the reasons for the improvement. Value streaming means all the activities and processes in the company performed to design, produce and deliver the product. Once the processes have been identified, the management has to identify the ‘muda’ or the waste in the production. Muda includes all those activities that do not add value to the output requested by the customer. The seven wastes include inventory, unwanted movement of the materials or people, defects, unnecessary transportation, waiting time, overproduction and over processing. Once the wastes have been identified and eliminated, the next step is grouping the common elements, thus reducing the lead time for the processes to complete.

Lean tools have been introduced by companies like Boeing, Toyota and Indian companies like Wipro. The introduction of lean into the system has resulted in making significant gains to the business enterprises. Lean is doing more with less of resources, investment, labour, space, working hours resulting in greater efficiency, fewer defects, and customer satisfaction. It is a continuous movement wherein all the members of the organization take an active part for its implementation. Lean tools like Kaizen, Kanban, Value Stream Mapping, 6S, can be used to bring out the improvements in the entity.

Many Indian companies who have introduced the system have started to reap the benefits gradually over the period of years. For instance, quoting Wipro, it had gained a return of 20-30% in cycle time and effort, which has added to the overall profitability of the company after three years of introducing lean into the organisation. To cite one example from Wipro, the application of lean practices which resulted in resolving offshore defects in an existing product mix, is said to have created a 50% improvement in the productivity through the elimination of non-value adding activity.

A positive organizational culture is vital for overcoming the barriers in the implementation of lean. Every activity that adds value to the customer must be made measurable for keeping a constant check for taking rectification measures to ensure the effectiveness of lean. A constant inspection helps the company from deviating from the actual needs of the customer.

The success of lean in many companies has led to its implementation in many business houses. A lean system which is backed by the management and its employees can go a long way in driving the company to its overall objectives.