The Importance Of Lean Management

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Lean management has become a popular concept in the recent decades; the principles permeate the present business strategies as well. Of course, lean thinking can go beyond the limits of one company. More benefits are achievable if it is applied for complex supply chains. An important challenge is enhancing the lean approach to business partners, especially to suppliers.
The focus of the chapter is on the supplier evaluation and selection in order to explore and to prevent the potential losses of poor external compliance. Beyond the theoretical reasoning there are some short case studies presented based on the author’s experiences (Berényi & Bánhegyesi, 2015).

Lean thinking and corporate performance
The elimination of waste in order to make
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The supplier is both a partner and a risk factor at the same time, thus a balance needs to be maintained between these two ‘roles’. The improvement of the business partnerships always requires an active, problem-oriented approach from the management.
The lean management – although using different expressions – is based on five generally accepted principles (Womack & Jones, 2003): identifying value, mapping value stream, creating flow, establishing a pull system and improvement designate a comprehensive management and operation philosophy. The fundamental goals remain the best quality, the shortest production time, the safety and the high morale (Liker, 2004), in a similar manner as were applied in the Toyota Production System (TPS) which provided the core basis of the lean thinking. It is obvious that principles above cannot be simply implemented in case of taking only one single company into consideration. Customer relations have a determinant role in the identification of value, while the other principles perceive rather the supplier as decisive factors. The value stream identification means more than the internal “tidying up”, the suppliers can also contribute to the creation of waste. E.g. if not the proper part arrives, it can lead to major forms of waste,
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The fact that the Toyota co-applies these does not mean that this is the only proper way. The reduction of the production inventory is interpretable even in a push production system; or the kanban applied by itself will not lead to improvement in the proper function of the pull approach (Harangozó, 2012). A basic prerequisite of the just in time operation is to foresee tasks and needs of the production further than the replenishment period of the product or service to be purchased (Hutchins, 1999). However, the kanban requires a strict discipline and strong standardization of the product kits as well as that of the entire procedure. Actually, it only works properly in case there is a stable and continuous demand for the end product (Cimorelli,

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