24.08.2021

Lean Management - Two Sides of the Medal - Disadvantages and Advantages

A marvel of modern management technology

In our discussion of the benefits of adhering to this management model, we will group the advantages according to the different ways in which subjects perceive the company.

  • Lean management and the production process and distribution

The main premise of the managerial technique is to reduce the squandering of resources, thereby reducing the losses that occur in production. By eliminating the 7 "cardinal sins of waste" that we wrote about in a previous post, we can significantly reduce the cost of doing business. By using inventory on an ongoing basis, we first of all get rid of the need to maintain or rent large warehouse spaces and prevent "spoilage" of materials, without throwing money down the drain.

Improving the various stages of production also reduces the time it takes to manufacture products and then deliver them to customers. As a result, the company's cash flow rate improves. As a result of the refinement of the production process, the quality of the goods offered is significantly improved and productivity is intensified, thereby increasing competitiveness in the market.

  • Personnel issues and labor relations after implementation of the concept lean management

The "lean management" model involves maximizing the potential of the resources owned by the company. By this we do not mean only production materials, but also human capital. According to the ideology of this method, the company's profits are multiplied when employees can constantly develop themselves and influence the company's production strategies - who, if not them, better knows the problems on the shop floor? That's why it's so important for management to collaborate with rank-and-file employees.

The advantages it brings leanIt is also about retraining employees, creating opportunities for them to acquire new skills and nurturing good relations within the team. It should also be noted that companies using the presented method are particularly concerned about their subordinates - they take measures to maximize work safety, while minimizing the number of accidents in production.

Pluses gained by "lean" companies vs. position held in the market

Successive improvement of product quality guaranteed by the model lean management, makes the brand more competitive, as well as the company's market stability. In addition to this, the benefit of this method is that the company becomes more flexible in terms of production, making it easier to adapt to changes in consumer demand and preferences. This, in turn, again increases sales profits.

The darker and darker sides of lean management

Portuguese writer and Nobel Prize for Literature winner José Saramago said: Morning ideas usually have a factory defect, we think that here we have discovered a perpetual motion machine, and as soon as we turn around, the machine stops. So let's use this maxim to illustratively reflect the drawbacks of "lean management."

First of all, this "morning idea" of imposing a new style of managing people and production on the company may prove to be a failure if it is not discussed with the entire team. Here it is necessary to move away from the principle that full authority belongs to the CEO - in line with the concept of lean management The success of the factory lies in the hands of all members of the workforce. Directly related to this problem is the need to change the approach to management, namely:

  • Management must learn to listen to subordinates and take them as seriously as the end customer, while
  • The workforce must learn teamwork to replace individualism.

Application of the concept lean brings the first results faster than other methods, as the company's financial results can confirm. However, the implementation of the new method itself is time-consuming and requires adequate experience. In order to prevent our perpetual motion machine from stopping and to be able to develop in the right direction, owners should hire a so-called supervisor. This is the person who will effectively guide the company through the process of changing the management style, skillfully prepare all employees for it, and objectively inspect and evaluate the reorganization.

Courage!

Dear reader, after reading, you're still wondering whether the lean management Is it a beneficial solution for your company? Don't waste your time! Perhaps this is the best time to make such changes, be creative, appreciate your employees and significantly increase your profits. Despite the disadvantages present, with a minimum of effort but maximum commitment on your part, you can bring your business to previously inaccessible horizons and achieve unbelievably great success. Get to work!

Agnieszka Buczek

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