What does lean management means?

 ● What is lean Management???

• Lean management is a type of management in which products are manufactured by using less material, less money, less manpower, and less time.

• In Lean management people try to get maximum output by minimum resourse.

• Lean management is also elimination of wastes and creating workflow. 

● When lean management was introduced?

The whole term lean management was introduced by Henry Ford. 

The principles of Lean were first introduced in the book The Machine That Changed the World (1991) by James P. Womack, Daniel T. Jones and Daniel Roos.

● What's the objective behind lean management?

• the main objective of lean management is to reduce waste and waiting time of customer. 

• Example:- if there is a shop a retailer shop not too big and not too small.  The minimum amount of stock in the shop is required monthly is 3lakh depended on customers. If the shopkeeper  is storing the stock of suppose  5lakh monthly which is not needed in current. So money is wasted, required space is wasted, time will be wasted to sort the extra 2 lakh rupees stock. 

• So basically in lean management we have to avoid such mistakes and improve the bussiness.

• The primary purpose of lean management is to produce value for the customer through the optimization of resources and create a steady worklow based on real customer demands. 

Lean management focuses

 on :

• knowing or Defining the value of customers demands and in same time implementing on it.

• Eliminating all wastes in bussiness.

• taking feedback of what you are selling or manufacturing is most important. 

The customers are the one who will give you proper feedback to improve your bussiness. And they will give the feedback according to their needs so it's very important to take feedbacks from customers and implementing them.

• Example: Sunder pichai the CEO of Google. One day two boys were eating burger with senior manager of Google, the boys told that the emoji of burger which you made on Google is not good, senior manager got angry and scolded them. Same he told to sunder pichai, sunder pichai told  that call back the two boys again. 

Two boys came, sunder pichai asked what's the problem in emoji of burger, the boys told the problem, sunder pichai to immediate action on the problem and made emoji to look more better like a burger.

This the difference between of us and Sunder Pichai. He works on small small feedbacks and improves and we just listen the feedbacks and do not to anything.

So please take feedbacks and implement them. 

●  Why lean management must be done?

In every bussiness the bussiness man sees his profit margin. There is the formula to calculate profit.

Profit= SP- CP. 

SP denotes the selling price means the rate of products which are selled including profit amount.

CP denotes the cost price means the the actual price of product which is buyed by the bussiness man. 

So some bussiness man increases the SP to increase their profit margin. But that's wrong way, if you will increase the SP the price of product would be increased, and the customers will not buy.

So to increase your profit margin you must decrease the value of CP. Automatically the profit margin would be increased.

●  The 7 wastes which you can eliminate in your bussiness.

1. Transportation.

If you want to deliver a 50 gunny bags of wheat to a shop and if you delivered 25 only so here is your waste. If the order is of 50 gunny bags you must try that 50 bags must be reached to the person. 

2. Inventory.

In this if you need a stock of 3lakh and you keep a stock of 5lakh in your shop so the extra stock of 2lakh is waste in current in future it will be sold but in current it is waste. And also the extra space is needed to keep the extra stock. 

3. Motion.

The moving distance must be less. Now in shops you will see the social distancing but if it's more than 6fit. If it's 8 feet ,the extra distance you must eliminate. 

And if extra space is kept in shop and it takes time to move from one point to another within the shop you must eliminate that space also.

4. Waiting.

You must avoid the waiting time of customer. More than 5 to 10 min you must not entertain the single customer. Give the products as fast  as you can and reduce the waiting time of customer. And if more customer are standing on your shop the coming next customer will see the rush and move to next shop in this your loss is there, your customer is moving to next shop. 

So please make sure that you  reduce the waiting time of your customers.

5. Over- Production. 

People are keeping in their Gowdowns extra stock. And in this the money stucks in this, if per month 3lakh rupees stock is needed so why to buy more? Keeping extra stock increase the cost of maintenance of the stock. So eliminate the over production. 

6. Over processing.

Overprocessing is adding more value to a product than the customer actually requires such as painting areas that will never be seen or be exposed to corrosion.

Never give more value to products than the customers needs. Customers needs is first priority of us. 

7. Defects.

defects are when products or service deviate from what the customer requires or the specification.

If customer is needing a specific product and you are not selling that product and instead of that you are giving the different product similar to that. It makes the customer unhappy. so you must try that you must make your customer  feel happy.

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 got some knowledge. 

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@ SujalRaysoni