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This project deals with the principles and methods associated with lean management. Different aspects of lean management techniques used by the manufacturing firms have been discussed in the paper. Based on this discussion, it has been found that lean management practices adapted by the companies allows them to utilise their resources in the optimal manner. Introduction The current manufacturing and service industry has encountered many changes from that of the traditional manufacturing and service system which was prevalent in the past. Today the assembly work is regularly categorized by the constant decrease in batch sizes and short production cycles. However, the variety of products and the models are increasing and the production capacity has also increased with the change in the manufacturing system. There has been a constant urge for reducing the lead times which add demand for more production and thus creates a challenging mix for the innovative and large manufacturers. In order to react quickly to the ever growing and changing customer demands, there is a need for efficient manufacturing system that are capable of expanding and re-configuring during their course of operation. It should also have the ability to accommodate new procedures in the assembly techniques in such a way that it does not make any investments for manufacturing obsolete products (Fliedner, 2011). The lean manufacturing concept is also applicable to the service operation. There have been huge changes in the service operation too from that of the past. The lean principle for the continuous improvement and respect for the employees are applied to every service. It includes the healthcare services, call centre services, higher education, public and professional services and also in the software development services. The Lean manufacturing approach in both the manufacturing and services operation highly depends on the workplace organization and the flexibility of the production system. Lean manufacturing can be defined as an outstanding initial point for the companies those who want to create a fresh and new look for their existing manufacturing system by introducing innovative methods of production. The lean techniques are worth for investigation since they have the power of eliminating the large capital investment which is needed for efficient and dedicated machineries till the mechanization is fully necessary. The lean manufacturing concept thus signifies an important decline of the automated factory which was popular during the past years. The “less is better” method in manufacturing guides to a remarkably simplified and uncluttered environment. The environment is cautiously tuned in accordance with the demands of the manufacturers (McGiven, 2013). The manufacturing of the products are carried out once at a time, after getting confirmation from the customers and are not done in batches, which adds up to the stock of the companies if not sold. The main goal of the lean manufacturing is to produce what is needed and not more than that. As there is production of limited number of products, it is important to change the processes during the day.

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