What is the lean concept and why is it important to study?

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What is the lean concept and why is it important to study?
The lean concept is a method that identifies and eliminates all types of waste activities, within production or manufacturing operations, and in the service industry as well. No matter if you are manufacturing a product or providing a service, there are components that are waste. Waste is essentially any activity/material within a process that is deemed unnecessary, or the end customer is not willing to pay for. Any activity or process that consumes resources, adds cost or time without creating value becomes the target for elimination. Lean focuses on improvements in the entire business process as opposed to incremental improvements. It is the business process system that can significantly improve a company’s profitability. Lean focuses on adapting to changing circumstances and meeting the changing needs of the end customer.

Will lean work in service environments? Why or why not?
Lean is an approach to maximize the efficiency of production using minimum inventory levels. Many companies adopt lean for the purpose of quality production, waste elimination, reduction in inventory levels and cost-effectiveness. It is utilized by the manufacturing companies. It is also useful in-service sector firms due to the following reasons: It reduces the service waste of an organization by elimination of duplication, delay, and miscommunication in service process. It provides continuous development in the service process. It promotes the philosophy of respecting people which is a major prerequisite for service firms. In this way lean is applicable to the service provider firms including health care, education, call centers and servicing firms.

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