Lean management is the management philosophy of removing waste from operations and carrying out only value adding activities. Waste is generally considered as process rejection or scrap but not in Lean Management . Lean has a far more comprehensive definition of waste. It considers anything that doesn’t add value as waste. In other words, any action, process or activity for which customer is not willing to pay is a waste. Therefore in Lean Management storage, transportation, waiting time, quality rejection, process scrap and every other thing that doesn’t add value is considered waste.
Lean focuses on eliminating waste from operations. Most of the lean management concepts such as JIT, Kanban, Poka-Yoke, etc. originated in Japan especially in Toyota as part of its much famous Toyota Production System (TPS). The huge impact of Lean methodology in terms of cost reduction, productivity enhancement and employee morale has now made it a worldwide popular method of business excellence not just in automotive or manufacturing industries but also in service sector.