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《Lean Performance ERP Project Management 4》.pdf
3
LEAN PERFORMANCE
METHODOLOGY
WHAT IS THE LEAN ENTERPRISE?
Where can lean thinking be used? It is the premise of this book that it
can be used on any job, in any process, in any manufacturer or service
sector firm, in any economy, regardless of the size of a firm, level of
technology, operator skill, or professional staff employed. In lean produc-
tion, the system is the complete set of processes required to produce the
product in the producing company. A company is lean when lean prin-
ciples, tools, and practices are applied to all processes in the company.
In their 1996 publication, Lean Thinking, Womack and Jones (two of
the authors of the original Massachusetts Institute of Technology study
discussed in Chapter 1) describe the phenomenon of applying lean pro-
duction principles to all processes in a company and to all processes in
the chain of companies involved in producing a product. The concept of
lean enterprise extends the process definition to include all processes
required to produce the product in all the companies that play a role in
producing the materials, components, supplies, etc., for that product. We
are reminded in Lean Thinking (p. 239) that “the machine that changed
the world” relies upon “Toyota’s interconnected ideas about Product
Development, Production, Supply Chain Management, and Customer Rela-
tions systems [italics added].”
When lean companies are linked in a business activity to produce
product together, they are a lean enterprise. When lean companies are
linked in a business activity to produce pro
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