Lean Systems

Introduction

In this report we are going to explore how lean thinking is applied to streamline operations in the service industry, and two of the companies that we are going to take a closer look for our case are Target Corporation and Tesco. We will examine how they apply lean techniques to conduct their operations, the tools they use, and how innovative companies have taken advantage of this methodology and found it to be extremely helpful in running their operations. Although some organizations have succeeded in deploying lean thinking, others have failed. In this report, we will highlight what it takes to facilitate its implementation.

Describing lean

The goal in lean is to give perfect value to the customer through perfect value creation without waste. Lean is a way of thinking about processes that include five tenets: specify customer value, improve the value stream, flow the product or service, pull from the customer, and strive for perfection (Schroeder, R., & Goldstein, S., 2013, p. 155). To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers (What is Lean, 2015).

Major tools available in lean

A certain number of lean tools have been developed to eliminate waste and inefficiencies and reduce delays. Some of these tools are:

5S

It is a well-known technique supporting lean thinking used for organizing a workspace (i.e. production shop floor, office space, hospital station, tool shop) to improve employee morale, environmental safety, and process efficiency. The belief is that if a workspace is well organized there will not be time wasted looking for things, and items misplaced will be noticed immediately (Schroeder, R., & Goldstein, S., 2013, p. 140). 5S is a team run process and ideally would be conducted by the people who work within the area in which the principles of 5S are being applied, it is not a tool that can be applied by an outsider onto an area without the knowledge and cooperation of the people within it (Lean Manufacturing Tools).

There are five Japanese terms referenced in (What is 5S; Seiri, Seiton, Seiso, Seiketsu, Shitsuke. (n.d.), 2015) that make up the name of this particular technique:

• Seiri (to sort): Deciding what things should be kept and what things should be discarded so that only the essential things remain.

• Seiton (to straighten or set in order): Arrange essential things in a manner that supports an efficient flow of work.

• Seiso (to shine,