LEAN MANAGEMENT FOR PRODUCTIVITY ENHANCEMENT

Present day requirement and competition forces organization to adapt new techniques to move at a higher pace and one of the Technique is Lean Management. Lean was generally practiced with manufacturing industries but now it is being applied with equal emphasis in service as well as administration processes. It was developed by the Japanese automotive industry following the challenge to re-build the Japanese economy after World War II. It is not a tactic or a cost reduction program, but a way of thinking and acting for an entire organization.

Lean management is characterized by its drive toward achieving profitability and productivity through continuous improvement and resource waste elimination. It is an organizational culture as well as specific practices with clear goals. Thousands of organization worldwide have achieved tremendous productivity and return on investments by implementing lean practices and techniques. Some of the lean management tools which are commonly used are 5S System, Visual Control, Standard Operating Procedures, Just in Time, KANBAN system, Cellular Layout, Value Stream mapping, Mistake proofing, Quick change over, Total Productive Maintenance, Kaizen etc. These tools help to identify and eliminate wastes thereby making the system lean.

Lean Management System considers the following 7 types of manufacturing wastes (muda):

1. Overproduction – occurs when production should have stopped.2. Waiting time – periods of inactivity.3. Transport – unnecessary movement of materials.4. Extra processing – rework and reprocessing.5. Inventory – excess inventory not directly required for current orders.6. Motion – extra steps taken by employees due to inefficient layout7. Defective goods – don’t conform to specifications or expectations.

The lean management leads to the following benefits at all levels. 1. Company – Reduced resource consumption, reduced energy

consumption, reduced waste , increased productivity, inculcating good management systems and in imbibing a culture of continuous improvement.

2. Customers – It ensures improved customer care services and efficient supply of goods and services to clients.

3. Employees – It ensures motivated employees due to the safe working environment that the method avails to them.

Lean Management is applicable to all organizations both manufacturing and service.

Lean Manufacturing Competitiveness Scheme : It has been noticed that MSME units are so engrossed in their day to day management issues that

they have no time and resources to dedicate for a strategic understanding of the for various techniques which would help them in enhancing their productivity and hence being competitive in global markets. To achieve sustained rate of growth, the manufacturing sector needs to build and maintain competitiveness needed to face challenges posed by globalization. Considering this issue, Government of India, Ministry of MSME has come out with Up scaled LM scheme. Under the scheme any mini cluster formed by 6-10 SME Units can select the services of an empanelled lean manufacturing consultant, who in turn will carry out a detailed study and hand hold the implementation of lean manufacturing tools there by improving there competitiveness. Under this scheme GOI will provide budgetary support to the extent of 80% consultancy charges as grant .To monitor, enable and to ensure effective implementation of the scheme ,National Productivity Council , Under Ministry of Commerce and Industry has been selected as one of the National Monitoring and Implementation Unit.

Any individual MSME unit / Associations may contact National Productivity Council, Hyderabad office for further information.

Contact details: National Productivity Council, 10E Gaganvihar, MJ Road, Hyderabad – 01

Email: npc.ap@nic.in Phone: 040-24733473 Fax: 040-24606981