Abstract
This article presents the concept of lean production and its practical use in project management. This concept is a combination of principles of building relationships between employees, which creates effective relationships in companies. The efficiency of implementing the concept of lean production is reflected in the reduction of production time or optimization of service delivery, increase productivity, reduce downtime in the enterprise, and reduce inventory. This concept's impact is enhanced by the use of methods that are designed to overcome crises and adverse situations in enterprises. It can minimize the company's costs and create additional value for consumers. The ever-increasing competition requires business leaders to find and apply methods that can increase competitiveness in the long run. Proper implementation of the concept of lean production is a source of competitive advantage. One of the most effective ways to improve the production process's management is to use a combination of several concepts that have the same features or complementary components. The possible solution of dealing with project complexity is the usage of lean production and agile combination. Using a lean production system is not an easy task. The main source of increasing the project's efficiency is the assessment of economic efficiency and the selection of those projects that provide a maximum economic effect. Successful implementation of such projects can create a basis for further improvement of the company. Combining the elements of both Lean and Agile methodologies brings the best practices into the projects managing. Muda is a key term, which is used in the concept of lean production. This term means means all unreasonable costs that do not create added value for the product or service. Because of this, the main idea of this concept arose, which emphasizes the need to produce only the amount of products that consumers need and to abandon mass production. It should be noted that the use of the concept of lean production does not increase the company's cash turnover, because the main purpose of this approach is to reduce costs and increase the efficiency of equity management.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.