Lean management Essay Example | Topics and Well Written Essays - 500 words

Lean management - Essay Example Five principles of lean management includes specify value and identifying the customers, finding the value stream, make value flow, respond to customer pull and seek perfection (Hines, 2010). Increase in consumer demand for quality and fierce competition has created a significant impact on fast food markets. Toyota Motor Company was the first business corporation to extensively develop the concept of lean management in the late 1970s. The occurrence of global recession has created a detrimental effect on organization to reduce costs. McDonald’s have set their sights on nullifying the issue by implementation of lean management. A set of key practices have been utilized by McDonalds to deliver effective service to the customers. Overproduction, inventory, motion, wasting time, defectives and transport are the seven sources of waste that are required to be eliminated. Overproduction is one of the sources that are eliminated by McDonalds by introduction of new system to prepare limited stocks of sides, salad, ingredients and patties to combine them in to finished product. The lessening of duration of the process to 3 minutes has reduced the risk of overproduction. The organization succeeded to maintain the overall production cycle time between 1 and 15 minutes, which enhances customer satisfaction and waste reduction (Muller, 2012). One of the vital elements that company should focus on is continuous improvement by sharing best practice and regular audits. This links with the principle of pursuing perfection. The set of ideas of lean philosophy are no waste and perfect quality can be achieved by application of this process. An opportunity of wastage and cost is incurred by holding stock. McDonaldscan eliminate all inventories by implementation of sophisticated stock control system. The excess handling of goods has resulted in to occurrence of