Reason for the Adoption of a Lean Organizational Thinking - 1650 Words

Reason for the Adoption of a Lean Organizational Thinking (Essay Sample) Content: BUSINESSStudents NameInstitutionReason for the Adoption of a Lean Organizational ThinkingAll types of organizations should adopt a lean thinking and eliminate waste in order to achieve efficiency by optimizing the use of available resources. By so doing the organization will achieve goals and objectives such as profitability and growth. A lean thinking should a continuous process in all organizations, manufacturing, for profit and non-profit. It creates efficiency in the organization and minimizes all forms of wastes. The quality of products and services by an organization are improved in the adoption of a lean thinking. Cost cutting is also another important benefit in a lean organizational structure (Schroeder, Rungtusanatham, Goldstein, 2012).EvaluationAll the processes in the organization should be evaluated on their efficiency. The time and the cost taken by each process is one of the main point in evaluation process. Evaluation will show what the organization is getting right and wrong in working towards a lean thinking. All the necessary information is obtained through an evaluation process. Evaluation further boosts learning in an organization. The effective evaluation process involves gathering data in a specified period of time. The collected data is then organized into meaningful information which will inform the manager on the necessary decisions based on the available information.Process MappingOnce the evaluation has been done, the processes should be ranked based on the value that each has on the final output. The processes which bring the least value should be eliminated and the process which brings the most value to the final product and services should be retained. Process mapping will show the flow of products from input process to the final output. It gives a report on the areas where there are delays in the systems. Process mapping helps in the selection of the appropriate metrics to measure performance and efficiency of the system. An organization with lean thinking will, therefore, be able to benchmark with the available standards both internal as well as the industry standards.PlanningIn a lean organization, there is effective planning. The evaluation conducted in adopting a lean organization will provide the management with adequate information in planning. Information on the output processes will assist in forecasting and effective resource allocation. A given process can be retained, replaced or modified. With effective planning, lean thinking will enable the organization to manage its risks well and mitigate them accordingly (Sinofsky Iansiti, 2009). Coordination is another important strategy that is well supported by a lean thinking. The various teams in an organization are able to work together and their roles and responsibilities are well communicated.TechnologyA lean organization uses technology effectively to automate its operations. Information systems eliminate human error. There is incr eased productivity in automation and uniformity in standards of the final output. Through the evaluation and mapping process, the information on the right type of technology to use in a given process will be obtained. Better reporting and communication is also enhanced through the adoption of the latest technology in the business processes. Security of information and all the benefits that come with lean thinking will work to improve the quality of final output and overall efficiency. Good internal and external relationships are enhanced through effective communication in a lean organizational thinking.In-House Versus OutsourcingActivities which are not the core business of the company can be outsourced to achieve a lean structure. These are operations which do not add value to the final product or service. More time and resources will then be focused on the core businesses of the organization (Price, 2007). Some of the business processes can be handled better by outsourced experts who have the capacity and expertise to undertake them better than the organization. A lean organization understands where its competitive advantage lies. It will, therefore, leverage on that as a factor to achieve its goals and objectives. Such decision is best made in an or...