Lean Management

Drastically reduce lead times and capital tied up: with our in-depth expertise in lean management, we transform your operational workflows into lean, agile and future-proof processes.

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Efficiency and value creation through lean management

Are you looking for effective ways to systematically eliminate waste in your logistics and production processes and to boost your competitiveness in the long term? Successful Lean Management ensures that all value chains are fully aligned with precise customer requirements. As a leading management consultancy at the interface between engineering and process optimisation, ebp-consulting delivers tried-and-tested concepts to consistently reduce non-value-adding activities. In this specialist glossary entry, you will find a well-founded definition of lean management as well as in-depth insights into strategic implementation methods for the modern shop floor. Discover now how you can achieve measurable efficiency gains in your business through optimised processes, agile structures and a value-appreciating corporate culture.

This specialist article offers C-level decision-makers and operational logistics managers scientifically sound guidance on how to systematically reduce process complexity. The focus is on the systematic identification of non-value-adding resource expenditure throughout the entire supply chain. We examine the historical roots of this approach, which are anchored in the Toyota Production System, as well as modern developments for administrative areas. Furthermore, we demonstrate how proven management tools such as value stream mapping and decentralised decision-making structures contribute to a significant reduction in lead times. Finally, you will receive practical answers to key questions regarding the payback period and maturity assessment of operational excellence projects.

When implementing lean management or carrying out lean projects, ebp-consulting always puts people first (please see the book *Kaizen* by Masaaki Imai). We involve your employees in the project at an early stage and show them our appreciation through training and constructive workshops, transforming them from passive recipients into active participants. This also includes your management team, whom we take along in the project, in line with the Gemba principle, to the areas where value is created: the shop floor; this applies to the production hall as well as the workstations in the offices.

We develop a company-specific and needs-oriented implementation strategy that is precisely tailored to your organisation. This also includes a detailed training plan and the composition of the project team.

Together with your staff in interdisciplinary project teams, we move beyond thinking in terms of departments and products and convey to them the importance of processes that lead to a result that meets customer needs. It is important to understand that such a transformation towards Lean Management and Kaizen requires a different understanding of roles and leadership; in other words, it is not just training that should be viewed positively, but your employees also need a certain amount of time to internalise this new understanding of roles and leadership. A coaching programme is recommended for this purpose.

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The definition of Lean Management describes a holistic business philosophy that aims to align all processes along the value chain uncompromisingly with customer requirements, whilst simultaneously avoiding any form of waste. The basic idea is based on systematically identifying and eliminating activities that do not directly add value – the so-called types of waste, or muda. The term was historically established in 1990 by researchers at the Massachusetts Institute of Technology (MIT), who scientifically analysed the efficiency benefits of the Toyota Production System. Its operational implementation combines decentralised management structures with the principle of continuous, step-by-step optimisation by the workforce. The aim of this systemic approach is to bring about a sustainable change in mindset and culture in order to minimise resource expenditure and maximise productivity.

The successful establishment of lean structures requires the precise coordination of strategic guidelines and operational tools. Among the key pillars are the fundamental principles of lean management, which embed continuous quality improvement and strict customer focus across all departments. Only when decentralised decision-making powers are consistently delegated to employees does the personal responsibility necessary for Kaizen emerge. To put this philosophy into practice, companies rely on structured standardisation systems for workplace organisation. This is complemented by innovative, data-based analysis methods such as value stream mapping, which visually represents material and information flows in a transparent manner.

Methods in Lean Management and Value Stream Design

Specific methods in Lean Management form the operational toolkit for systematically uncovering hidden inefficiencies in complex supply chains. The central foundation here is value stream analysis, which provides a comprehensive visualisation of the current flow of materials and information. In day-to-day logistics, we use this method to precisely pinpoint stock build-ups, unnecessary transport routes and waiting times at critical junctions. Building on this, a smooth-flowing process is established which strictly links material provision to actual consumption. By applying this step-by-step structuring, manufacturing companies in the upper mid-market sector are able to radically shorten lead times and drastically reduce capital tie-up costs in the spare parts warehouse.

The 5Ss of Lean Management for shop floor optimisation

The 5Ss of Lean Management represent a structured, five-step system for the systematic optimisation and standardisation of workstations. The Japanese terms Seiri (Sorting), Seiton (Systematising), Seiso (Cleaning), Seiketsu (Standardising) and Shitsuke (Self-discipline) form the methodological sequence of this proven practice. The aim is to create a clean, safe and error-free working environment on the shop floor or in the administrative office.

The 5S of Lean Management at a glance:

1. Seiri (Sorting): All non-value-adding equipment or items that are superfluous to the current process step are systematically removed from the work area to immediately stop waste caused by search times and a lack of transparency.
2. Seiton (Systematising): Every remaining, necessary tool is assigned a fixed, ergonomically optimised and visually clearly marked location in accordance with the principle “Everything has its place and everything is in its place”.
3. Seiso (Cleaning): Regular cleaning of the shop floor is used as a proactive inspection to identify deviations, leaks or wear at an early stage and to ensure machine availability in the long term.
4. Seiketsu (Standardisation): Through visual management tools such as kanban boards, markings or checklists, the optimised conditions of the first three stages are established as a universally applicable, easily verifiable standard.
5. Shitsuke (Self-discipline): Adherence to and the continuous optimisation of the defined processes are firmly embedded in the corporate culture as a daily routine through regular audits and appreciative leadership behaviour.

By consistently eliminating the time spent searching for tools, documents or load carriers, waste is stopped directly at the point of value creation. In consulting practice, it is regularly demonstrated that 5S measures not only eliminate search times, but also significantly increase occupational safety and measurably reduce set-up times on production lines.

Sustainable principles in Lean Management and Kaizen culture

The core principles of lean management require a permanent, far-reaching shift in mindset and culture throughout the entire organisation. At the heart of this is the Kaizen principle of continuous improvement, which defines the optimisation of daily work as a fundamental task for all employees. Managers act explicitly as facilitators for employees by creating space for initiative, delegating decision-making authority and actively incorporating ideas for improvement. This respectful approach utilises the deep operational know-how gained from daily practice to resolve the root causes of errors sustainably. For ebp-consulting, this lived culture is the indispensable prerequisite for permanently raising an organisation’s level of maturity and securing long-term investments.

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Lean Management in the context of Kaizen culture

To embed the Kaizen culture within the company, the ‘new’ understanding of leadership can be summarised in 8 guiding principles:

1. “Quality first” (Taiichi Ohno): But what is quality? Becoming aware within the company of what the customer’s expectations are. This applies not only to sales and marketing, but to everyone in the company, particularly QM, production and logistics.
2. Customer­orientation: Aligning all activities with customer expectations.
3. “Rolling out” customer­requirements as a corporate­mission statement within the company (internal customer­orientation)
4. Strengthening personal responsibility, the development and empowerment of one’s own staff is an investment in the future of the company (empowerment)
5. “Leadership” is a “service” to staff: people speak to one another as equals. The manager shows appreciation for their employees.
6. Optimising work processes is the responsibility of all employees in the company (not just managers); however, they must give employees the freedom to get involved and express ideas for improvement.
7. Continuous improvement process: Establishment of a structured improvement process to achieve quality (customer requirements). This improvement process, or rather Kaizen, must be publicised and practised throughout the company.
8. This also requires the delegation of decision-making powers to employees and the promotion of decentralised structures with independent thinking and action. Managers must not perceive this as a loss of control; otherwise, training courses for management development are recommended.
        

Lean management is not a catalogue of measures, but a philosophy designed to bring about a change in thinking and behaviour. It is therefore not only applicable in a manufacturing company or solely within production, but can also be applied to other sectors and departments:

• Lean Production: To date, the best-known area in which Lean Management is applied. In the context of production planning, the Lean Production philosophy involves the development of lean value-added processes.
• Lean Logistics: Here, the extension to logistics processes was the most obvious step; it has already been highly refined and specifically applied to logistics and warehouse processes: e.g. goods receipt, order picking, dispatch processes, …
• Lean Thinking: Aligning thinking with customer expectations. The question is not only what is changing (fear of missing a trend among customers), but also: what is important to the customer in the long term (long-term thinking); in other words: what remains important to them. This safeguards long-term investments. In meetings, do not interrupt the flow of thoughts and conversation (let people finish speaking, pick up on ideas and develop them further). This also includes visualising thoughts: building the spoken word into a model (e.g. building blocks, cardboard, …)
• Lean Administration: In non-technical areas, order processing and other administrative processes are worth mentioning (HR, Controlling, etc.)
• Lean Development: Customer-oriented thinking and action in all areas of a company, including the creative aspects of product or software development. It has also found its way into the development of manufacturing processes and new technologies.
      

Owing to its long-standing success, the proven principles of lean management are increasingly being adopted in process-intensive sectors beyond traditional manufacturing. Whilst lean healthcare specifically optimises administrative and operational processes in hospital management, lean construction is transforming efficiency in complex construction planning and execution. A particularly dynamic development is evident in modern lean supply chain management, which has emerged as a synergistic fusion of the established disciplines of lean logistics and lean administration. ebp-consulting supports companies across all sectors in implementing these adapted methods in a targeted manner and realising sustainable productivity benefits throughout the entire value chain.