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Ｗｉｔｈ ｒｉｓｉｎｇ ｃｏｓｔｓ ａｎｄ ａ ｓｌｕｍｐｉｎｇ ｅｃｏｎｏｍｙ, ｅｖｅｒｙ ｂｕｓｉｎｅｓｓ, ｌａｒｇｅ ａｎｄ ｓｍａｌｌ, ｎｅｅｄｓ ｔｏ ｔａｋｅ ａ ｈａｒｄ ｌｏｏｋ ａｔ ｉｔｓ ｏｐｅｒａｔｉｏｎ ａｎｄ ｓｅｅ ｗｈｅｒｅ ｉｔ ｃａｎ ｓａｖｅ ｃｏｓｔｓ. Ｔｈｉｓ ｍｅａｎｓ ｅｌｉｍｉｎａｔｉｎｇ ｗａｓｔｅ ａｔ ｅｖｅｒｙ ｓｔａｇｅ ｏｆ ｔｈｅ ｂｕｓｉｎｅｓｓ ｐｒｏｃｅｓｓ ａｎｄ ｂｅｃｏｍｉｎｇ 'ｌｅａｎ'. Ｔｈｅ ｐｒｉｎｃｉｐｌｅｓ ｏｆ ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ａｒｅ ｎｏｔ ｌｉｍｉｔｅｄ ｔｏ ｌａｒｇｅ, ａｓｓｅｍｂｌｙ-ｌｉｎｅ ｏｐｅｒａｔｉｏｎｓ. Ｔｈｅｙ ｃａｎ ｂｅ ａｐｐｌｉｅｄ ｔｏ ａｎｙ ｔｙｐｅ ｏｆ ｏｐｅｒａｔｉｏｎ ｏｒ ａｃｔｉｖｉｔｙ, ｎｏｔ ｊｕｓｔ ｉｎ ａ ｍａｎｕｆａｃｔｕｒｉｎｇ ｅｎｖｉｒｏｎｍｅｎｔ. Ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｉｓ ａｎ ｅｘａｍｐｌｅ ｏｆ ｗｈｏｌｅ-ｓｙｓｔｅｍ ｔｈｉｎｋｉｎｇ ｔｈａｔ ｈａｓ ｈｅｌｐｅｄ ｍａｎｙ ｃｏｍｐａｎｉｅｓ ｄｒａｍａｔｉｃａｌｌｙ ｒｅｄｕｃｅ ｓｕｃｈ ｆｏｒｍｓ ｏｆ ｗａｓｔｅ ａｓ ｌｅａｄ ｔｉｍｅｓ, ｄｅｆｅｃｔ ｒａｔｅｓ, ａｎｄ ｉｎｖｅｎｔｏｒｙ. Ａ ｌｅａｎ ｐｒｏｄｕｃｅｒ ｃｕｔｓ ｔｈｅ ｆａｔ ｆｒｏｍ ｔｈｅ ｏｐｅｒａｔｉｏｎ, ｅｌｉｍｉｎａｔｅｓ ａｃｔｉｏｎｓ ｔｈａｔ ｄｏ ｎｏｔ ａｄｄ ｖａｌｕｅ, ａｎｄ ａｃｔｓ ｊｕｓｔ ｉｎ ｔｉｍｅ, ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｎｅｅｄｓ ｏｆ ｔｈｅ ｃｕｓｔｏｍｅｒｓ. Ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｍｅａｎｓ ｏｐｅｒａｔｉｎｇ ｅｆｆｉｃｉｅｎｔｌｙ, ｕｓｉｎｇ ｌｅｓｓ ｒｅｓｏｕｒｃｅｓ, ｌｅｓｓ ｅｎｅｒｇｙ, ｌｅｓｓ ｓｐａｃｅ, ａｎｄ ｌｅｓｓ ｔｉｍｅ. Ｅｌｉｍｉｎａｔｅ Ｗａｓｔｅ Ａｃｃｏｒｄｉｎｇ ｔｏ ｔｈｅ ｗｅｂｓｉｔｅ 1000 Ａｄｖｉｃｅｓ, ｔｈｅｒｅ ａｒｅ ｖａｒｉｏｕｓ ｔｙｐｅｓ ｏｆ ｗａｓｔｅ ｓｕｃｈ ａｓ ｐｒｏｄｕｃｉｎｇ ｔｏｏ ｍｕｃｈ ａｎｄ ｔｏｏ ｅａｒｌｙ, ｄｅｌａｙｓ ａｎｄ ｉｄｌｅ ｔｉｍｅ, ｍｕｌｔｉｐｌｅ ａｎｄ ｕｎｎｅｃｅｓｓａｒｙ ｈａｎｄｌｉｎｇ, ｈｏｌｄｉｎｇ ｅｘｃｅｓｓ ｉｎｖｅｎｔｏｒｉｅｓ, ｕｎｎｅｃｅｓｓａｒｙ ｓｔｅｐｓ ｏｒ ｐｒｏｃｅｄｕｒｅｓ ｔｈａｔ ｄｏ ｎｏｔ ａｄｄ ｖａｌｕｅ, ａｎｄ ｄｅｆｅｃｔｉｖｅ ｕｎｉｔｓ ｔｈａｔ ｍｕｓｔ ｂｅ ｒｅｗｏｒｋｅｄ ｏｒ ｓｃｒａｐｐｅｄ. Ｗｉｔｈ ｔｈｅ ｐｒｏｐｅｒ ｒｅｓｅａｒｃｈ, ｐｌａｎｎｉｎｇ, ｐｒｏｂｌｅｍ ｓｏｌｖｉｎｇ, ａｎｄ ｃｏｒｒｅｃｔｉｖｅ ａｃｔｉｏｎ, ｔｈｅｓｅ ｗａｓｔｅｓ ａｎｄ ｉｎｅｆｆｉｃｉｅｎｃｉｅｓ ｃａｎ ｂｅ ｅｌｉｍｉｎａｔｅｄ. Ｄｅｓｉｇｎ Ｓｉｍｐｌｅ ｃｈａｎｇｅｓ ｉｎ ｄｅｓｉｇｎ ｍｅｎｔａｌｉｔｙ ｃａｎ ｙｉｅｌｄ ｈｉｇｈ ｒｅｓｏｕｒｃｅ ｓａｖｉｎｇｓ ａｎｄ ｒｅｔｕｒｎｓ ｏｎ ｉｎｖｅｓｔｍｅｎｔ. Ｉｎ "Ａ Ｒｏａｄ Ｍａｐ ｆｏｒ Ｎａｔｕｒａｌ Ｃａｐｉｔａｌｉｓｍ", ｉｎ ｔｈｅ Ｈａｒｖａｒｄ Ｂｕｓｉｎｅｓｓ Ｒｅｖｉｅｗ ｏｎ Ｇｒｅｅｎ Ｂｕｓｉｎｅｓｓ Ｓｔｒａｔｅｇｙ, Ａｍｏｒｙ Ｂ. Ｌｏｖｉｎｓ, Ｌ. Ｈｕｎｔｅｒ Ｌｏｖｉｎｓ, ａｎｄ Ｐａｕｌ Ｈａｗｋｅｎ ｄｅｓｃｒｉｂｅ ｔｈｅ ｅｘｐｅｒｉｅｎｃｅ ｏｆ Ｉｎｔｅｒｆａｃｅ Ｃｏｒｐｏｒａｔｉｏｎ - ａ ｌｅａｄｉｎｇ ｍａｋｅｒ ｏｆ ｃｏｍｍｅｒｃｉａｌ ｉｎｔｅｒｉｏｒｓ. Ｉｎ ｔｈｅｉｒ Ｓｈａｎｇｈａｉ ｃａｒｐｅｔ ｆａｃｔｏｒｙ, ｓｉｍｐｌｅ ｄｅｓｉｇｎ ｃｈａｎｇｅｓ ｗｅｒｅ ｍａｄｅ ｉｎ ｔｈｅ ｓｔａｎｄａｒｄ ｐｕｍｐｉｎｇ ｌｏｏｐ, ｒｅｄｕｃｉｎｇ ｈｏｒｓｅｐｏｗｅｒ ｒｅｑｕｉｒｅｍｅｎｔｓ ｂｙ 92%. Ｔｈｅ ｒｅｄｅｓｉｇｎｅｄ ｓｙｓｔｅｍ ｃｏｓｔ ｌｅｓｓ ｔｏ ｂｕｉｌｄ, ｉｎｖｏｌｖｅｄ ｎｏ ｎｅｗ ｔｅｃｈｎｏｌｏｇｙ, ａｎｄ ｗｏｒｋｅｄ ｂｅｔｔｅｒ ｉｎ ａｌｌ ｒｅｓｐｅｃｔｓ. Ｔｈｅｙ ｉｎｓｔａｌｌｅｄ ｆａｔｔｅｒ-ｔｈａｎ-ｕｓｕａｌ ｐｉｐｅｓ, ｗｈｉｃｈ ｃｒｅａｔｅ ｍｕｃｈ ｌｅｓｓ ｆｒｉｃｔｉｏｎ ｔｈａｎ ｔｈｉｎ ｐｉｐｅｓ. Ｉｎ ｔｈｉｎｋｉｎｇ ａｂｏｕｔ ｔｈｅ ｗｈｏｌｅ ｓｙｓｔｅｍ ｔｈｅｙ ｒｅａｌｉｚｅｄ ｔｈａｔ ｔｈｅ ｈｉｇｈｅｒ ｃａｐｉｔａｌ ｃｏｓｔ ｏｆ ｆａｔｔｅｒ ｐｉｐｅｓ ｗｏｕｌｄ ｂｅ ｍｏｒｅ ｔｈａｎ ｏｆｆｓｅｔ ｂｙ ｔｈｅ ｌｏｗｅｒ ｃａｐｉｔａｌ ｃｏｓｔｓ ｏｆ ｔｈｅ ｓｍａｌｌｅｒ ｐｕｍｐｉｎｇ ｅｑｕｉｐｍｅｎｔ ｎｅｅｄｅｄ ｄｕｅ ｔｏ ｔｈｅ ｒｅｄｕｃｅｄ ｆｒｉｃｔｉｏｎ. Ｔｈｅｙ ｒｅｄｕｃｅｄ ｔｈｅ ｆｒｉｃｔｉｏｎ ｅｖｅｎ ｍｏｒｅ ｂｙ ｍａｋｉｎｇ ｐｉｐｅｓ ｓｈｏｒｔ ａｎｄ ｓｔｒａｉｇｈｔ ｒａｔｈｅｒ ｔｈａｎ ｌｏｎｇ ａｎｄ ｃｒｏｏｋｅｄ. Ｆｉｒｓｔ ｔｈｅｙ ｌａｉｄ ｏｕｔ ｔｈｅ ｐｉｐｅｓ, ａｎｄ ｔｈｅｎ ｐｏｓｉｔｉｏｎｅｄ ｔｈｅ ｖａｒｉｏｕｓ ｔａｎｋｓ, ｂｏｉｌｅｒｓ, ａｎｄ ｏｔｈｅｒ ｅｑｕｉｐｍｅｎｔ ｔｈａｔ ｔｈｅｙ ｃｏｎｎｅｃｔ. Ｎｏｒｍａｌｌｙ, ｄｅｓｉｇｎｅｒｓ ｗｏｕｌｄ ｐｌａｃｅ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｅｑｕｉｐｍｅｎｔ ｉｎ ａｒｂｉｔｒａｒｙ ｐｏｓｉｔｉｏｎｓ ａｎｄ ｔｈｅｎ ｈａｖｅ ａ ｐｉｐｅ ｆｉｔｔｅｒ ｃｏｎｎｅｃｔ ｅｖｅｒｙｔｈｉｎｇ. Ｔｈｉｓ ａｗｋｗａｒｄ ｐｌａｃｅｍｅｎｔ ｆｏｒｃｅｓ ｐｉｐｅｓ ｔｏ ｍａｋｅ ｎｕｍｅｒｏｕｓ ｂｅｎｄｓ ｔｈａｔ ｇｒｅａｔｌｙ ｉｎｃｒｅａｓｅ ｆｒｉｃｔｉｏｎ. Ｂｙ ｃｈａｎｇｉｎｇ ｔｈｅ ｄｅｓｉｇｎ, Ｉｎｔｅｒｆａｃｅ ａｃｈｉｅｖｅｄ 4 ｔｙｐｅｓ ｏｆ ｃｏｓｔ ｓａｖｉｎｇｓ: ｔｈｅ ｔｉｍｅ ｗｏｒｋｅｄ ｂｙ ｐｉｐｅ ｆｉｔｔｅｒｓ, ｅｘｔｒａ ｐｉｐｅｓ ａｎｄ ｆｉｔｔｉｎｇｓ, ｏｖｅｒｓｉｚｅｄ ｐｕｍｐｓ, ａｎｄ ｉｎｆｌａｔｅｄ ｅｌｅｃｔｒｉｃ ｂｉｌｌｓ. Ｉｎ ａｄｄｉｔｉｏｎ, ｔｈｅ ｓｈｏｒｔ, ｓｔｒａｉｇｈｔ ｐｉｐｅｓ ｗｅｒｅ ｅａｓｉｅｒ ｔｏ ｉｎｓｕｌａｔｅ, ｔｈｅｒｅｂｙ ｓａｖｉｎｇ ｅｎｅｒｇｙ ｂｙ ｒｅｄｕｃｉｎｇ ｈｅａｔ ｌｏｓｓ. Ｍｉｎｉｍｉｚｅ ｉｎｖｅｎｔｏｒｙ Ｌａｒｇｅ ｑｕａｎｔｉｔｉｅｓ ｏｆ ｗｏｒｋ-ｉｎ-ｐｒｏｇｒｅｓｓ ｉｎｖｅｎｔｏｒｙ ｃａｎ ａｌｓｏ ｂｅ ｓｅｅｎ ａｓ ａ ｗａｓｔｅ ｉｎ ｓｏｍｅ ｐｒｏｄｕｃｔｉｏｎ ｓｙｓｔｅｍｓ. Ｔｈｉｓ ｗａｓｔｅ ｃａｎ ｂｅ ｍａｎｉｆｅｓｔｅｄ ｂｙ ｏｒｄｅｒｓ ｔｈａｔ ｔａｋｅ ａ ｌｏｎｇ ｔｉｍｅ ｔｏ ｂｅ ｆｉｌｌｅｄ, ｗｉｔｈ ｔｈｅ ｒｅｓｕｌｔｉｎｇ ｌｏｎｇｅｒ ｔｉｍｅ ｔｏ ｂｅ ａｂｌｅ ｔｏ ｂｉｌｌ ａｎｄ ｃｏｌｌｅｃｔ ｏｎ ｓａｌｅｓ. Ｍｏｎｅｙ ｍａｙ ｂｅ ｔｉｅｄ ｕｐ ｉｎ ｐａｒｔｓ ｏｎ ｈａｎｄ ｔｈａｔ ｇｏ ｉｎｔｏ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｐｒｏｃｅｓｓ. Ｕｎｃｅｒｔａｉｎｔｉｅｓ Ｕｎｃｅｒｔａｉｎｔｙ ｃａｎ ｌｅａｄ ｔｏ ｗａｓｔｅ ｗｈｅｎ ｉｔ ｉｓ ｂｅｌｉｅｖｅｄ ｔｈａｔ ｃｅｒｔａｉｎ ｅｖｅｎｔｓ ｃａｎｎｏｔ ｂｅ ａｎｔｉｃｉｐａｔｅｄ ｏｒ ａｄｅｑｕａｔｅｌｙ ｈａｎｄｌｅｄ, ｓｏ ｃｕｓｈｉｏｎｓ ａｒｅ ｂｕｉｌｔ ｉｎ ｔｏ ｃｏｍｐｅｎｓａｔｅ. Ｔｈｉｓ ｃｏｕｌｄ ｉｎｖｏｌｖｅ ｂｕｙｉｎｇ ｍｏｒｅ ｐａｒｔｓ ａｎｄ ｓｕｐｐｌｉｅｓ ｔｈａｎ ｎｅｃｅｓｓａｒｙ, ｉｎ ｃａｓｅ ｓｕｐｐｌｉｅｒｓ ｄｏｎ'ｔ ｄｅｌｉｖｅｒ ｏｎ ｔｉｍｅ ｏｒ ｓｏｍｅ ｐａｒｔｓ ａｒｅ ｄｅｆｅｃｔｉｖｅ ａｎｄ ｈａｖｅ ｔｏ ｂｅ ｄｉｓｃａｒｄｅｄ ｏｒ ｒｅｐｌａｃｅｄ. Ｂｕｔ ｔｈｅｓｅ ｅｖｅｎｔｓ ｄｏｎ'ｔ ａｌｗａｙｓ ｏｃｃｕｒ, ａｎｄ ｔｈｅｒｅ ａｒｅ ｗａｙｓ ｔｏ ａｖｏｉｄ ｔｈｅｍ. Ｔｈｅ ｓｏｌｕｔｉｏｎ ｉｓ ｔｏ ｅｌｉｍｉｎａｔｅ ｔｈｅ ｓｏｕｒｃｅ ｏｆ ｔｈｅ ｕｎｃｅｒｔａｉｎｔｙ - ｌｏｏｋｉｎｇ ｆｏｒ ｔｈｅ ｒｏｏｔ ｃａｕｓｅｓ ａｎｄ ａｔｔａｃｋｉｎｇ ｔｈｅ ｐｒｏｂｌｅｍ ｔｈｅｒｅ. Ｔｈｉｓ ｃｏｕｌｄ ｉｎｖｏｌｖｅ ｂｅｔｔｅｒ ｐｒｅｖｅｎｔｉｖｅ ｍａｉｎｔｅｎａｎｃｅ ｐｒａｃｔｉｃｅｓ, ｂｅｔｔｅｒ ｒｅｌａｔｉｏｎｓ ｗｉｔｈ ｓｕｐｐｌｉｅｒｓ, ａｎｄ ｂｅｔｔｅｒ ｔｒａｉｎｉｎｇ ａｎｄ ｔｅｃｈｎｏｌｏｇｙ ｔｏ ｇｕａｒａｎｔｅｅ ｍｏｒｅ ｒｅｌｉａｂｌｅ ｐｒｏｃｅｓｓｅｓ. Ｄｏ ｉｔ ｒｉｇｈｔ ｔｈｅ ｆｉｒｓｔ ｔｉｍｅ Ｏｎｅ ｆｏｒｍ ｏｆ ｆａｔ ｏｒ ｗａｓｔｅ ｉｓ ｔｈｅ ｔｉｍｅ, ｅｎｅｒｇｙ, ａｎｄ ｍａｔｅｒｉａｌｓ ｓｐｅｎｔ ｉｎ ｒｅｐａｉｒｉｎｇ ｏｒ ｒｅｐｒｏｃｅｓｓｉｎｇ ｉｔｅｍｓ ｔｈａｔ ｓｈｏｕｌｄ ｈａｖｅ ｂｅｅｎ ｄｏｎｅ ｃｏｒｒｅｃｔｌｙ ｔｈｅ ｆｉｒｓｔ ｔｉｍｅ. Ｔｈｅ ｗａｙ ｔｏ ｅｌｉｍｉｎａｔｅ ｔｈｉｓ ｉｓ ｔｏ ｉｄｅｎｔｉｆｙ ｔｈｅ ｒｏｏｔ ｃａｕｓｅｓ ｏｆ ｔｈｅ ｑｕａｌｉｔｙ ｐｒｏｂｌｅｍ ａｎｄ ｔａｋｅ ｔｈｅ ｎｅｃｅｓｓａｒｙ ａｃｔｉｏｎｓ ｔｏ ｃｏｒｒｅｃｔ ｔｈｅ ｐｒｏｂｌｅｍ. Ｄｏｉｎｇ ｉｔ ｒｉｇｈｔ ｔｈｅ ｆｉｒｓｔ ｔｉｍｅ ｉｎｖｏｌｖｅｓ ｔｒａｉｎｉｎｇ, ｅｍｐｏｗｅｒｍｅｎｔ, ａｃｃｏｕｎｔａｂｉｌｉｔｙ, ａｎｄ ｉｎｃｅｎｔｉｖｅｓ ａｎｄ ｒｅｗａｒｄｓ. Ｔｈｅ ｐｅｒｓｏｎ ｄｏｉｎｇ ａ ｐａｒｔｉｃｕｌａｒ ｊｏｂ ｍｕｓｔ ｈａｖｅ ｔｈｅ ｎｅｃｅｓｓａｒｙ ｓｋｉｌｌｓ ａｎｄ ｃｏｍｐｅｔｅｎｃｉｅｓ ｔｏ ｄｏ ｔｈｅ ｊｏｂ ｃｏｒｒｅｃｔｌｙ. Ａｎｄ ｅａｃｈ ｐｅｒｓｏｎ ｍｕｓｔ ｃｌｅａｒｌｙ ｕｎｄｅｒｓｔａｎｄ ｈｏｗ ｔｈｅｉｒ ｆｕｎｃｔｉｏｎｓ ｃｏｎｔｒｉｂｕｔｅ ｔｏ ｍａｘｉｍｉｚｉｎｇ ｖａｌｕｅ ｄｅｌｉｖｅｒｅｄ ｔｏ ｔｈｅ ｃｕｓｔｏｍｅｒ, ａｎｄ ｔｈｅｒｅｂｙ ｂｅｎｅｆｉｔｉｎｇ ｔｈｅ ｂｕｓｉｎｅｓｓ. Ｅｍｐｏｗｅｒ ｗｏｒｋｅｒｓ Ｅａｒｌｌ Ｍ. Ｍｕｒｍａｎ, Ｐｈ.Ｄ. ｆｒｏｍ ｔｈｅ Ｍａｓｓａｃｈｕｓｅｔｔｓ Ｉｎｓｔｉｔｕｔｅ ｏｆ Ｔｅｃｈｎｏｌｏｇｙ, ｉｎ ｔｈｅ ａｒｔｉｃｌｅ "Ｆｒｏｍ ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｔｏ ｌｅａｎ ｅｎｔｅｒｐｒｉｓｅ" ｐｕｂｌｉｓｈｅｄ ｏｎ Ｍｉｃｒｏｓｏｆｔ'ｓ ｗｅｂｓｉｔｅ, ｅｘｐｌａｉｎｓ ｈｏｗ ａ ｍｏｒｅ ｈｏｒｉｚｏｎｔａｌ ｓｔｒｕｃｔｕｒｅ, ｉｎｓｔｅａｄ ｏｆ ａ ｈｉｅｒａｒｃｈｉｃａｌ ｓｔｒｕｃｔｕｒｅ, ｃａｎ ｆａｃｉｌｉｔａｔｅ ｔｈｅ ｍｉｎｉｍｉｚａｔｉｏｎ ｏｆ ｗａｓｔｅ ａｎｄ ｃｏｎｔｉｎｕｏｕｓ ｉｍｐｒｏｖｅｍｅｎｔ ｅｆｆｏｒｔｓ. Ｗｏｒｋｅｒｓ ｃａｎ ｂｅ ｅｍｐｏｗｅｒｅｄ ｔｏ ｐｅｒｆｏｒｍ ｍａｎｙ ｏｆ ｔｈｅ ｉｎｄｉｒｅｃｔ ｔａｓｋｓ ｒｅｌａｔｅｄ ｔｏ ｔｈｅｉｒ ｗｏｒｋ, ｓｕｃｈ ａｓ ｔｈｅ ｌａｙｏｕｔ ｏｆ ｔｈｅｉｒ ｗｏｒｋｓｐａｃｅ, ｂａｌａｎｃｉｎｇ ｔｈｅｉｒ ｗｏｒｋ ｌｏａｄｓ, ａｎｄ ｑｕａｌｉｔｙ ａｓｓｕｒａｎｃｅ. Ｔｈｉｓ ｈｅｌｐｓ ｔｏ ｒｅｄｕｃｅ ｆｕｎｃｔｉｏｎｓ ｔｈａｔ ｄｏ ｎｏｔ ａｄｄ ｖａｌｕｅ, ｉｎｃｒｅａｓｅｓ ｅｆｆｉｃｉｅｎｃｙ ａｎｄ ｆｌｅｘｉｂｉｌｉｔｙ, ａｎｄ ｒｅｉｎｆｏｒｃｅｓ ｈｏｗ ｅａｃｈ ｗｏｒｋｅｒ ａｄｄｓ ｖａｌｕｅ ｔｏ ｔｈｅ ｂｕｓｉｎｅｓｓ. Ａｌｏｎｇ ｗｉｔｈ ｅｍｐｏｗｅｒｍｅｎｔ ａｎｄ ｄｅｌｅｇａｔｉｏｎ ｃｏｍｅｓ ｒｅｓｐｏｎｓｉｂｉｌｉｔｙ ａｎｄ ａｃｃｏｕｎｔａｂｉｌｉｔｙ. Ｏｎ ｈｅｒ ｗｅｂｓｉｔｅ, Ｍａｒｙ Ｐｏｐｐｅｎｄｉｅｃｋ ｉｎｄｉｃａｔｅｓ ｔｈａｔ ｏｎｅ ｏｆ ｔｈｅ ｍｏｓｔ ｉｍｐｏｒｔａｎｔ ｆｅａｔｕｒｅｓ ｏｆ ａ ｌｅａｎ ｏｐｅｒａｔｉｏｎ ｉｓ ｔｈａｔ ｉｔ ｔｒａｎｓｆｅｒｓ ｔｈｅ ｍａｘｉｍｕｍ ｎｕｍｂｅｒ ｔｏ ｔａｓｋｓ ａｎｄ ｒｅｓｐｏｎｓｉｂｉｌｉｔｉｅｓ ｔｏ ｔｈｅ ｗｏｒｋｅｒｓ ｗｈｏ ａｒｅ ａｃｔｕａｌｌｙ ａｄｄｉｎｇ ｖａｌｕｅ ｏｎ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｌｉｎｅ. Ｗｈｅｎ ｅａｃｈ ｐｅｒｓｏｎ ｕｎｄｅｒｓｔａｎｄｓ ｈｏｗ ｔｈｅｉｒ ｆｕｎｃｔｉｏｎｓ ａｆｆｅｃｔ ｔｈｅ ｏｖｅｒａｌｌ ｏｐｅｒａｔｉｏｎ ｏｆ ｔｈｅ ｂｕｓｉｎｅｓｓ, ｐｒｏｂｌｅｍｓ ａｒｅ ｎｏｔ ｐａｓｓｅｄ ｏｎ ｔｏ ｔｈｅ ｎｅｘｔ ｓｔａｇｅ. Ｉｎｓｔｅａｄ, ｔｈｅ ｗｏｒｋｅｒｓ ｓｔｏｐ ａｎｄ ｔｒｏｕｂｌｅｓｈｏｏｔ ｗｈｅｎｅｖｅｒ ａ ｐｒｏｂｌｅｍ ｉｓ ｄｅｔｅｃｔｅｄ. Ｔｈｅｙ ｕｎｄｅｒｓｔａｎｄ ｔｈａｔ ｔｈｅ ｂｕｓｉｎｅｓｓ ｖａｌｕｅｓ ｔｈｅｍ ａｎｄ ｔｈｅｉｒ ｃｏｎｔｒｉｂｕｔｉｏｎ. Ｉｎ ａ ｌｅａｎ ｅｎｖｉｒｏｎｍｅｎｔ, ｉｎｃｅｎｔｉｖｅｓ ａｎｄ ｒｅｗａｒｄｓ ａｒｅ ａｌｉｇｎｅｄ ｗｉｔｈ ｔｈｅ ｄｅｓｉｒｅｄ ｅｎｄ ｒｅｓｕｌｔｓ. Ｌｅａｎ ｂｅｈａｖｉｏｒ ｓｈｏｕｌｄ ｂｅ ｒｅｗａｒｄｅｄ ａｎｄ ｎｏｎ-ｌｅａｎ ｂｅｈａｖｉｏｒ ｓｈｏｕｌｄ ｎｏｔ. Ｉｎｃｅｎｔｉｖｅｓ ｓｈｏｕｌｄ ｂｅ ｌｉｎｋｅｄ ｔｏ ｐｅｒｆｏｒｍａｎｃｅ ｉｎｄｉｃａｔｏｒｓ ｏｒ ｍｅｔｒｉｃｓ ｔｈａｔ ｌｅｔ ｐｅｏｐｌｅ ｓｅｅ ｔｈｅ ｉｍｐａｃｔ ｏｆ ｔｈｅｉｒ ｐｅｒｆｏｒｍａｎｃｅ ｉｍｍｅｄｉａｔｅｌｙ. Ｔｈｅｓｅ ｍｅｔｒｉｃｓ ｃａｎ ｂｅ ｆｉｎａｎｃｉａｌ ａｎｄ ｎｏｎ-ｆｉｎａｎｃｉａｌ ｍｅａｓｕｒｅｓ ａｎｄ ｓｈｏｕｌｄ ｂｅ ｔｒａｃｅａｂｌｅ ｔｏ ｔｈｅ ｏｂｊｅｃｔｉｖｅ ｏｆ ｍａｘｉｍｉｚｉｎｇ ｖａｌｕｅ ｆｏｒ ｔｈｅ ｃｕｓｔｏｍｅｒ. Ｐｕｌｌ, Ｄｏｎ'ｔ Ｐｕｓｈ Ｊｕｓｔ-ｉｎ-ｔｉｍｅ ｐｒｏｄｕｃｔｉｏｎ ｉｓ ａｂｏｕｔ ｐｒｏｄｕｃｉｎｇ ｓｔｒｉｃｔｌｙ ｗｈａｔ ｉｓ ｎｅｅｄｅｄ ｔｏ ｍｅｅｔ ｃｕｓｔｏｍｅｒ ｒｅｑｕｉｒｅｍｅｎｔｓ, ａｎｄ ｏｎｌｙ ａｔ ｔｈｅ ｔｉｍｅ ｉｔ ｉｓ ｎｅｅｄｅｄ. Ｉｎｓｔｅａｄ ｏｆ ｓｃｈｅｄｕｌｉｎｇ ｐｒｏｄｕｃｔｉｏｎ ｂａｓｅｄ ｏｎ ａｎｔｉｃｉｐａｔｅｄ ｒｅｑｕｉｒｅｍｅｎｔｓ, ｃｕｓｔｏｍｅｒ ｏｒｄｅｒｓ ａｒｅ ｗｈａｔ ｇｅｎｅｒａｔｅ ｐｒｏｄｕｃｔｉｏｎ. Ｏｒｄｅｒｓ ｆｌｏｗ ｆｒｏｍ ｔｈｅ ｆｉｎａｌ ｃｕｓｔｏｍｅｒ ｂａｃｋ ｔｈｒｏｕｇｈ ｔｈｅ ｅｎｔｉｒｅ ｐｒｏｄｕｃｔｉｏｎ ｐｒｏｃｅｓｓ, ｐｕｌｌｉｎｇ ｅａｃｈ ｓｔａｇｅ ｉｎ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｃｈａｉｎ, ｗｉｔｈ ｅａｃｈ ｓｔａｇｅ ｈａｖｉｎｇ ｉｔｓ ｏｗｎ ｃｕｓｔｏｍｅｒ-ｓｕｐｐｌｉｅｒ ｒｅｌａｔｉｏｎｓｈｉｐ. Ａ ｖｅｒｙ ｉｍｐｏｒｔａｎｔ ｐｏｉｎｔ ｉｓ ｔｈｅ ｉｍｐａｃｔ ｔｈｅｓｅ ｃｕｓｔｏｍｅｒ-ｓｕｐｐｌｉｅｒ ｒｅｌａｔｉｏｎｓｈｉｐｓ ｈａｖｅ. Ｉｎ ａ ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｓｙｓｔｅｍ, ｐｒｏｄｕｃｔｓ ａｒｅ ｄｅｌｉｖｅｒｅｄ ｉｎ ｓｍａｌｌｅｒ, ｍｏｒｅ ｆｒｅｑｕｅｎｔ ｂａｔｃｈｅｓ, ｗｉｔｈ ｏｐｔｉｍａｌ ｑｕａｌｉｔｙ. Ｑｕａｌｉｔｙ ｉｓ ｃｒｉｔｉｃａｌ ｓｉｎｃｅ ａｎｙ ｄｅｆｅｃｔｉｖｅ ｐｒｏｄｕｃｔ ａｔ ａｎｙ ｓｔａｇｅ ｉｎ ｔｈｅ ｃｈａｉｎ ｉｓ ａ ｆｏｒｍ ｏｆ ｗａｓｔｅ ａｎｄ ｓｌｏｗｓ ｄｏｗｎ ｔｈｅ ｅｎｔｉｒｅ ｐｒｏｃｅｓｓ. Ｊｕｓｔ-ｉｎ-ｔｉｍｅ ｐｒｏｄｕｃｔｉｏｎ ｒｅｑｕｉｒｅｓ ａ ｒｅｌａｔｉｏｎｓｈｉｐ ｏｆ ｔｒｕｓｔ ａｎｄ ｐｒｏｐｅｒ ｉｎｃｅｎｔｉｖｅｓ ｔｈｒｏｕｇｈｏｕｔ ｔｈｅ ｃｈａｉｎ, ｔｏ ｓｈｏｗ ｅａｃｈ ｓｕｐｐｌｉｅｒ ｉｎ ｔｈｅ ｃｈａｉｎ ｔｈｅ ｂｅｎｅｆｉｔｓ ｏｆ ｊｕｓｔ-ｉｎ-ｔｉｍｅ ｐｒｏｄｕｃｔｉｏｎ. Ｍａｘｉｍｉｚｅ ｆｌｏｗ Ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｉｓ ａ ｍａｎａｇｅｍｅｎｔ ｐｈｉｌｏｓｏｐｈｙ ｔｈａｔ ｉｎｖｏｌｖｅｓ ｔｈｅ ｅｎｔｉｒｅ ｏｐｅｒａｔｉｏｎ. Ａｓ Ｅａｒｌｌ Ｍ. Ｍｕｒｍａｎ, Ｐｈ.Ｄ. ｐｏｉｎｔｓ ｏｕｔ, ｌｅａｎ ｐｒａｃｔｉｃｅｓ ａｒｅ ｊｕｓｔ ａｓ ａｐｐｌｉｃａｂｌｅ ｔｏ ａｄｍｉｎｉｓｔｒａｔｉｖｅ ｆｕｎｃｔｉｏｎｓ ａｓ ｔｈｅｙ ａｒｅ ｔｏ ａｃｔｕａｌ ｐｒｏｄｕｃｔｉｏｎ. Ｗｏｒｋ ｆｌｏｗ ｐｌａｎｎｉｎｇ ａｎｄ ｄｅｓｉｇｎ ｉｎｃｌｕｄｅ ｅｖｅｒｙ ｓｔｅｐ ｉｎ ｔｈｅ ｐｒｏｃｅｓｓ, ｉｎｃｌｕｄｉｎｇ ａｌｌ ｓｕｐｐｏｒｔｉｎｇ ａｃｔｉｖｉｔｉｅｓ, ｓｏ ｔｈａｔ ｔｈｅｙ ａｌｌ ａｄｄ ｖａｌｕｅ. Ｄｅｆｅｃｔｓ, ｗｈｅｔｈｅｒ ｉｎ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｐｒｏｃｅｓｓ ｏｒ ａｄｍｉｎｉｓｔｒａｔｉｖｅ ｆｕｎｃｔｉｏｎｓ, ｓｈｏｕｌｄ ｂｅ ｄｅｔｅｃｔｅｄ ａｎｄ ｒｅｓｏｌｖｅｄ ｉｍｍｅｄｉａｔｅｌｙ, ｔｏ ｅｌｉｍｉｎａｔｅ ｔｈｅ ｗａｓｔｅ ｔｈｅｙ ｒｅｐｒｅｓｅｎｔ. Ｉｎｆｏｒｍａｔｉｏｎ ｆｌｏｗ ｓｈｏｕｌｄ ａｌｓｏ ｂｅ ｓｔｒｅａｍｌｉｎｅｄ, ｅｌｉｍｉｎａｔｉｎｇ ｄｕｐｌｉｃａｔｅ ｅｆｆｏｒｔｓ ａｎｄ ｕｎｎｅｃｅｓｓａｒｙ ｒｅｐｏｒｔｓ ｏｒ ｃｏｍｍｕｎｉｃａｔｉｏｎｓ. Ｉｎｆｏｒｍａｔｉｏｎ ｓｈｏｕｌｄ ｇｅｔ ｔｏ ｔｈｅ ｐｅｒｓｏｎ ｗｈｏ ｎｅｅｄｓ ｉｔ ａｓ ｄｉｒｅｃｔｌｙ ａｎｄ ｑｕｉｃｋｌｙ ａｓ ｐｏｓｓｉｂｌｅ ａｎｄ ｉｎｆｏｒｍａｔｉｏｎ ｓｙｓｔｅｍｓ ｓｈｏｕｌｄ ｂｅ ｄｅｓｉｇｎｅｄ ｔｏ ｓｕｐｐｏｒｔ ｔｈｅ ｏｖｅｒａｌｌ ｐｕｒｐｏｓｅ, ｗｈｉｃｈ ｉｓ ｔｏ ａｄｄ ｖａｌｕｅ ｆｏｒ ｃｕｓｔｏｍｅｒｓ. Ｔｈｅ ａｃｃｏｕｎｔｉｎｇ ａｎｄ ｍａｎａｇｅｍｅｎｔ ｒｅｐｏｒｔｉｎｇ ｓｙｓｔｅｍ ｉｎ ａ ｌｅａｎ ｂｕｓｉｎｅｓｓ ｍｕｓｔ ｐｒｏｖｉｄｅ ｔｈｅ ｉｎｆｏｒｍａｔｉｏｎ ｎｅｅｄｅｄ ｆｏｒ ｃｏｍｐａｒｉｎｇ ａｃｔｕａｌ ｐｅｒｆｏｒｍａｎｃｅ ｗｉｔｈ ｔｈｅ ｔａｒｇｅｔ ｉｎｄｉｃａｔｏｒｓ ｏｒ ｍｅｔｒｉｃｓ. Ａｃｔｉｖｉｔｙ-ｂａｓｅｄ ｃｏｓｔｉｎｇ ｓｙｓｔｅｍｓ ｏｒ ｃｏｓｔ ａｃｃｏｕｎｔｉｎｇ ｓｙｓｔｅｍｓ ｔｈａｔ ａｃｃｕｍｕｌａｔｅ ａｎｄ ｒｅｐｏｒｔ ｉｎｆｏｒｍａｔｉｏｎ ａｌｏｎｇ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｃｈａｉｎ ａｎｄ ｃｏｓｔ ｄｅｔａｉｌｓ ｂｙ ｐｒｏｄｕｃｔ ａｒｅ ｉｍｐｏｒｔａｎｔ ｉｎ ａ ｌｅａｎ ｂｕｓｉｎｅｓｓ. Ｐａｒｔｎｅｒ ｗｉｔｈ ｓｕｐｐｌｉｅｒｓ Ｅａｒｌｌ Ｍ. Ｍｕｒｍａｎ, Ｐｈ.Ｄ. ｅｘｐｌａｉｎｓ ｔｈａｔ ａ ｌｅａｎ ｓｙｓｔｅｍ ｅｘｔｅｎｄｓ ｂｅｙｏｎｄ ｔｈｅ ｃｏｍｐａｎｙ ｉｔｓｅｌｆ ａｎｄ ａｌｓｏ ｉｎｃｌｕｄｅｓ ｓｕｐｐｌｉｅｒｓ. Ｉｎ ｏｒｄｅｒ ｔｏ ｋｅｅｐ ｉｎｖｅｎｔｏｒｉｅｓ ｌｏｗ ａｎｄ ｕｓｅ ａ ｊｕｓｔ-ｉｎ-ｔｉｍｅ ｓｔｒａｔｅｇｙ ｔｏ ｍｅｅｔ ｃｕｓｔｏｍｅｒ ｄｅｍａｎｄ, ｒｅｌａｔｉｏｎｓｈｉｐｓ ｗｉｔｈ ｓｕｐｐｌｉｅｒｓ ｗｉｌｌ ｂｅ ｃｒｕｃｉａｌ. Ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｉｎｖｏｌｖｅｓ ｌｏｎｇ-ｔｅｒｍ ｒｅｌａｔｉｏｎｓｈｉｐｓ ｗｉｔｈ ｓｕｐｐｌｉｅｒｓ ｂａｓｅｄ ｏｎ ｃｏｏｐｅｒａｔｉｏｎ. Ｂｙ ｗｏｒｋｉｎｇ ｔｏｇｅｔｈｅｒ ｔｏ ｍｅｅｔ ｑｕａｌｉｔｙ ｓｔａｎｄａｒｄｓ ａｎｄ ｅｘｐｅｃｔａｔｉｏｎｓ, ｓｕｐｐｌｉｅｒｓ ｃａｎ ｂｅ ｃｅｒｔｉｆｉｅｄ, ｔｈｅｒｅｂｙ ａｖｏｉｄｉｎｇ ｕｎｃｅｒｔａｉｎｔｙ. Ａｎｄ ｗｈｅｎ ｅｆｆｉｃｉｅｎｃｉｅｓ ａｒｅ ａｃｈｉｅｖｅｄ ｔｈａｔ ｌｏｗｅｒ ｃｏｓｔｓ, ａｇｒｅｅｍｅｎｔｓ ｃａｎ ｂｅ ｒｅａｃｈｅｄ ｏｎ ｈｏｗ ｔｈｅ ｓａｖｉｎｇｓ ｗｉｌｌ ｂｅ ｓｈａｒｅｄ. Ｃｏｎｔｉｎｕｏｕｓ ｉｍｐｒｏｖｅｍｅｎｔ Ｃｏｎｔｉｎｕｏｕｓ ｉｍｐｒｏｖｅｍｅｎｔ ｉｓ ａ ｍｅｃｈａｎｉｓｍ ｆｏｒ ｅｎｓｕｒｉｎｇ ｑｕａｌｉｔｙ ａｎｄ ｄｅｔｅｃｔｉｎｇ ａｎｄ ｓｏｌｖｉｎｇ ｐｒｏｂｌｅｍｓ ｉｎ ａ ｊｕｓｔ-ｉｎ-ｔｉｍｅ ｓｙｓｔｅｍ. Ｔｈｅ ｉｄｅａｓ ｏｆ ｃｏｎｔｉｎｕｏｕｓ ｉｍｐｒｏｖｅｍｅｎｔ ａｎｄ ｊｕｓｔ-ｉｎ-ｔｉｍｅ ａｒｅ ｆｕｎｄａｍｅｎｔａｌ ｅｌｅｍｅｎｔｓ ｏｆ ａ ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｓｙｓｔｅｍ. Ｔｈｅ ｑｕｉｃｋｅｒ ｐｒｏｂｌｅｍｓ ｃａｎ ｂｅ ｉｄｅｎｔｉｆｉｅｄ ａｎｄ ｒｅｓｏｌｖｅｄ, ａｎｄ ｉｍｐｒｏｖｅｍｅｎｔｓ ｍａｄｅ, ｔｈｅ ｌｅｓｓ ｗｉｌｌ ｂｅ ｔｈｅ ｗａｓｔｅ ｏｒ ｌｏｓｓ ｉｎｃｕｒｒｅｄ. Ａｓ ｗａｓｔｅ ｉｓ ｒｅｍｏｖｅｄ ｆｒｏｍ ｔｈｅ ｐｒｏｄｕｃｔｉｏｎ ｐｒｏｃｅｓｓ, ｏｔｈｅｒ ｉｎｅｆｆｉｃｉｅｎｃｉｅｓ ｗｉｌｌ ｂｅｃｏｍｅ ｅｖｉｄｅｎｔ ｍｏｒｅ ｑｕｉｃｋｌｙ, ｍａｋｉｎｇ ｉｔ ｐｏｓｓｉｂｌｅ ｔｏ ｄｅｔｅｒｍｉｎｅ ｔｈｅ ｃａｕｓｅｓ ａｎｄ ｃｏｒｒｅｃｔ ｔｈｅｍ ｍｏｒｅ ｑｕｉｃｋｌｙ, ｔｈｅｒｅｂｙ ｆｕｒｔｈｅｒ ｉｍｐｒｏｖｉｎｇ ｔｈｅ ｏｖｅｒａｌｌ ｓｙｓｔｅｍ. Ｓｏｕｒｃｅｓ: 1000 Ａｄｖｉｃｅｓ - Ｌｅａｎ Ｐｒｏｄｕｃｔｉｏｎ, ｂｙ Ｖａｄｉｍ Ｋｏｔｅｌｎｉｋｏｖ: ｗｗｗ.1000ａｄｖｉｃｅｓ.ｃｏｍ Ｍｉｃｒｏｓｏｆｔ - Ｍａｎｕｆａｃｔｕｒｉｎｇ - Ｆｒｏｍ ｌｅａｎ ｐｒｏｄｕｃｔｉｏｎ ｔｏ ｌｅａｎ ｅｎｔｅｒｐｒｉｓｅ, ｂｙ Ｅａｒｌｌ Ｍ. Ｍｕｒｍａｎ, Ｐｈ.Ｄ.: ｗｗｗ.ｍｉｃｒｏｓｏｆｔ.ｃｏｍ Ｍａｒｙ Ｐｏｐｐｅｎｄｉｅｃｋ - Ｐｒｉｎｃｉｐｌｅｓ ｏｆ Ｌｅａｎ Ｔｈｉｎｋｉｎｇ: ｗｗｗ.ｐｏｐｐｅｎｄｉｅｃｋ.ｃｏｍ Ａ Ｒｏａｄ Ｍａｐ ｆｏｒ Ｎａｔｕｒａｌ Ｃａｐｉｔａｌｉｓｍ, ｂｙ Ａｍｏｒｙ Ｂ. Ｌｏｖｉｎｓ, Ｌ. Ｈｕｎｔｅｒ Ｌｏｖｉｎｓ, ａｎｄ Ｐａｕｌ Ｈａｗｋｅｎ; Ｈａｒｖａｒｄ Ｂｕｓｉｎｅｓｓ Ｒｅｖｉｅｗ ｏｎ Ｇｒｅｅｎ Ｂｕｓｉｎｅｓｓ Ｓｔｒａｔｅｇｙ |
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