A landmark study conducted in 1988 with a $5 million grant examined best practice from the international automotive factory floor and named that body of knowledge lean (Womack, Jones & Roos, 1991). With a long history of development, originating with the production of goods and lasting over centuries, the term lean is fairly new, but it represents centuries of thinking and tools that advance performance, referred to by Womack (Lean Enterprise Institute, 2010) as “waves of improvement” (online video). Lean is an organizational philosophy and operating system heavily embedded in the total quality work of W. Edwards Deming (Dennis, 2006) and the continuous improvement cycle of Shewhart (1980), the Plan-Do-Check-Act cycle which Deming popularized. Further, Emiliani (2008) emphasized that lean uses two weighted principals; the lighter one being continuous improvement and the weightier one being respect for people. Ransom (2007) in a Lean Enterprise Institute resource testified that lean culture and continuous improvement in turn produces desirable bottom line results as well, “Essentially, it [lean implementation] is a virtuous circle. I would stipulate that the adoption of a lean culture will improve financial performance.” (Slide 2). The most sophisticated lean enterprises have embraced the practice of enacting lean so that it moves from continuous improvement of internal operations to the full stakeholder chain (Burton & Boeder, 2003). In all, lean results in three aims, stakeholder engagement in continuous improvement, stakeholder application of improved paradigms and processes, and organizational respect for empowered stakeholders in the continuous improvement process (Liker & Hoseus, 2008).
A landmark study conducted in 1988 with a $5 million grant examined best practice from the international automotive factory floor and named that body of knowledge lean (Womack, Jones & Roos, 1991). With a long history of development, originating with the production of goods and lasting over centuries, the term lean is fairly new, but it represents centuries of thinking and tools that advance performance, referred to by Womack (Lean Enterprise Institute, 2010) as “waves of improvement” (online video). Lean is an organizational philosophy and operating system heavily embedded in the total quality work of W. Edwards Deming (Dennis, 2006) and the continuous improvement cycle of Shewhart (1980), the Plan-Do-Check-Act cycle which Deming popularized. Further, Emiliani (2008) emphasized that lean uses two weighted principals; the lighter one being continuous improvement and the weightier one being respect for people. Ransom (2007) in a Lean Enterprise Institute resource testified that lean culture and continuous improvement in turn produces desirable bottom line results as well, “Essentially, it [lean implementation] is a virtuous circle. I would stipulate that the adoption of a lean culture will improve financial performance.” (Slide 2). The most sophisticated lean enterprises have embraced the practice of enacting lean so that it moves from continuous improvement of internal operations to the full stakeholder chain (Burton & Boeder, 2003). In all, lean results in three aims, stakeholder engagement in continuous improvement, stakeholder application of improved paradigms and processes, and organizational respect for empowered stakeholders in the continuous improvement process (Liker & Hoseus, 2008).
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