The Importance Of Lean Practices In Organizations

1918 Words 8 Pages
Introduction
Lean practices can be beneficial for all types of organizations. The primary objective of lean is to improve organizational efficiency by eliminating waste, which in turn will lead to increased profitability. Organizational efficiency is directly linked to profitability. Often times growing businesses can find their organizations facing challenges due to inefficiencies, causing their bottom line to take a hit. According to Lancaster 2011, some of the strategies that organizations could use to improve efficiency include Lean, Just-in-time (JIT) and Six Sigma. Implementing lean practices can help organizations improve operations and increase profitability. This paper will discuss implementing lean concepts to address wasteful procurement
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In order for DMADV to be successful, organizations will need to understand the customer 's needs and decide which needs are being met and which needs can be improved upon. In an effort to satisfy customers while saving money, organization need to evaluate existing processes thoroughly. Organizations have indicated they generally adopt Six Sigma methodologies to lower costs, increase time to market, and improve both process and product and service quality. In addition, they intend to institutionalize Six Sigma as a company culture or state of mind. The success of Six Sigma projects is also due to its results orientation, data driven and ability to align the goals with objectives across the organizations. It is used by Indian automobile industry for supplier quality improvement. It has helped in a number of ways such as, process improvement, inventory reduction, productivity improvement, reduction in customer complaints, and reduction in field returns (Pendokhare, Quazi, & Kulkarni …show more content…
In the final phase, the team validates that the design is acceptable to all stakeholders. Several pilot and production runs will be necessary to ensure that the quality is the highest possible. Here, expectations will be confirmed, deployment will be expanded and all lessons learned will be documented. The Verify step also includes a plan to transition the new procurement system to a routine operation and to ensure that this change is sustainable. This phase involves verifying the efficiency of the new system and process in a real world situation (Pendokhare, Quazi, & Kulkarni

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