Many manufacturers today follow a business philosophy called "lean manufacturing." Lean refers to a systematic approach to maximizing value for the customer by improving the process of how goods are produced or services are provided. The idea is to streamline the production process by removing wasteful steps that do not add value to the end product. As waste is climinated, quality is preserved or improved, and production time and expenses are reduced.
This enables goods and services of the greatest value to be delivered at the lowest cost. The end results are increases in customer satisfaction and profit.
The roots of "lean manufacturing" trace back to the Japanese auto industry in the 1980s. However, the lean philosophy spread quickly to other types of manufacturing and to the service sector, including healthcare, education, and government. Some adherents claim that even individuals can apply the lean philosophy to any and all aspects of their own lives.
Supporters and detractors of the lean philosophy tend to be equally passionate in their praise and criticism, as is evidenced by selected comments posted to an online forum:
Comment 1: In the ideal lean environment, employees do not lose jobs. Rather, productivity potential is unleashed and quality improves. Unfortunately, in most companies today, very little is ideal. Applying the lean philosophy to our tire manufacturing company seems only to be an excuse for senior management to fire the more highly paid workers.
Comment 2: 1 am speaking as someone who knows financing. I work at a company that makes furniture. If the executive bonuses had been cut by just 10 percent last year, the wages of the hourly workers could have been doubled!
Comment 3: Two years ago, my company had a net profit of $5.5 million. The lean philosophy was implemented last year and cost about half our employees their jobs.
The year ended without profit. This year we will net even less. Remember: lean means fewer employees are needed. Don't do it.
Comment 4: In the chemical company where I work, we have implemented the lean philosophy successfully - with no layoffs. We have seen a significant increase in output, which has led to shorter turnaround time to our customers, which in turn led to more orders. This secures rather than jeopardizes people's jobs because we are the company that can give a faster lead time when compared to our competitors that have not adopted the lean philosophy and are struggling with inefficiency. Which word best characterizes the majority of comments about lean manufacturing?
A. negative
B. neutral
C. positive
D. undecided
