Reasons to Implement Lean. Advantages

Reasons to Implement Lean. Advantages

There are several reasons of benefits for organizations in becoming Lean. This variety of reasons can be categorized into three major groups: customer satisfaction, strategic value and financial value.

1. CUSTOMER SATISFACTION: the first and most important category refers to a focus on customer value. A better dialogue and relation with consumers allows organizations to increase customer loyalty and customer satisfaction. When successfully implementing lean, organizations are able to add more value to their goods and services while simultaneously cutting resources of waste and raising organizational agility.
2. STRATEGIC VALUE: organization can benefit from lean, as Lean organizations focus on continuous improvement in their process performance which brings them great value in terms of strategy. For example, focusing on continuously process performance improvement will lead to increased quality, efficiency of development and effectiveness.
3. FINANCIAL VALUE: the third category refers to the financial advantages that Lean can offer. Lean emphasizes on increasing efficiency by removing wastes, also referred to as unnecessary non-value added activities. A secondary effect of this is that the time between order and delivery will be reduced, thereby improving the cash flow.

Source: Lean IT Association (2015) Lean IT Foundation Syllabus Version 101