Lean management is an approach to running an organisation that supports the concept
of continuous improvement. It is an ongoing effort to improve products, services, or
processes, which require “incremental” improvement over time in order to increase
efficiency and quality.
Lean management uses methods for eliminating factors that waste time, effort or
money. This is accomplished by analysing a business process and then revising it or
cutting out any steps that do not create value for customers.
Lean management principles are derived from the Japanese manufacturing industry
1. Defining value from the standpoint of the end customer.
2. Identifying each step in a business process and eliminating those steps that do not create value.
3. Making the value-creating steps occur in tight sequence.
4. Repeating the first three steps on a continuous basis until all waste has been
These lean principles ensure that the processes involved with bringing a product to
market remain cost effective from beginning to end.