25 Dec 2022

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Leading Change in Lean Enterprises

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Academic level: College

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Introduction 

The elimination of wasteful practices in an organization is a non-standardized process that enables the company to save money and achieve global competitiveness. An example is the reduction of the hiring staff, to minimize waste of human resources (Wright et al., 2012). The other non-standardized process is the generation of customer feedback in the process of product development to build what customers want. 

A standardized process maximizes compatibility, quality and interoperability in business. A mutually consistent decision in an organization increases the coordination and productivity among stakeholders. The consumers also shape the standardization measures so that dominant organizations set up a standard in new products in the market. Non-standardized processes therefore are applied in people variation and the unique production of new products and services. 

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Discussion 

The personnel and product variations are standardized to reduce variation so that organizations do not participate in excessive competition and overproduction. The non-standardized process of hiring new employees creates unnecessary costs and lack of productivity in the company. Many organizations have positions based on the recommended standards but the people do not add value to the business processes, instead, they create a waste of resources (Brunsson et al., 2012). This leads to loss forecasts and discourages the innovation of new ideas to improve product specifications. 

The overproduction of products is also a non-standardized process that creates unnecessary costs to the organization. This is due to the lack of planning of the part of the managerial team that is responsible in the coordination of different sectors of a company. Overproduction increases the costs of stock and leads to waste of employee skills and the exhaustion of valuable resources. 

The non-standardized process of overproduction should be standardized to counter the costs of raw materials and skills, to reduce product and people variation. This is because the company will reduce its capacity to control the various employee segments and produce substandard products leading to losses (Chang, 2016). The underutilized talents increase employee talents and skills, therefore reducing job satisfaction. Such factors also increase turnover rates, leading to increased costs in hiring and training. 

It is recommended; however, to utilize the non-standard measures when the consumer lacks variety in the market. Many products have standardized characteristics that make the consumers lack specificity to their unique needs. Companies therefore specialize in products that meet this market gap to create more sales. When the company understands the value of the product according to the level of customer awareness, they are able to meet these wants. 

The process in the implementation of identified lean enterprise improvements is difficult because it entails radical changes in the roles of employees, inter-company relationships and the employment policies. The main challenge is the maintenance of the movement of the value stream to avoid the creation of waste and reducing customer value. Due to the customer specific attention to create perfection, the products suffer defect incidences through the continuous removal of root causes of poor quality production. 

Another challenge is the incidence of non-utilized talents due to the hiring of many employees. The number of employees increases ambiguous dissemination of information that concerns company goals and objectives. The increase of employee numbers also increases the risk of overproduction leading to high stock costs. The overproduction is due to poorly defined goals and clarified objectives. The lean tool to counter this challenge is increasing the customer feedback to shape the nature of the service or product. 

Challenges and recommendations during implementation of lean enterprise improvements 

The creation of functionalities increases the time wastage in waiting for deliveries. It also reduces empowerment due to lack of management interaction leading poor communication and planning. The solution is a quick changeover to handle the social dynamics in the organization, encouraging team work and open communication lines in a bottom-up approach. The unnecessary costs of transportation due to the proximity to work, geographic location and accessibility can be resolved through the creation of resourcefulness. The availability of tools and supplies increase the value stream mapping and adds value to the company. 

The technological advancements of organizations face a fatal end when there is less flexibility, uniqueness and the rapid introduction of new products. The management can help organizations to facilitate change with empowerment in an all-inclusive design. Articulating the voice of the customer to the staff through open lines of communication increases the chances of progress for the company. Through feedback from customers, the products and services meet the needs of their target market. 

Empowerment 

Employees are the most significant factors in the business process and therefore empowering the support staff increases the brand value of a company. The management should therefore provide support through training and seminars that keep them at per with the technological advancements that improve a company (Dumas et al., 2013). The management should also ensure that they avail resources to the employees to increase their productivity. Supportive frameworks encourage people to act at maximum potential and hold the brand of the company with prestige. The combination of the functionality with the individual needs increases the financial performance of the company. 

The management should also eliminate blame and focus on reducing entitlement and fear among employees. The performance of a functional unit is a result of combined effort and therefore the members should learn to share losses. Once the brand becomes a part of a person, they are determined to increase competition with other units which in the end improve the overall performance of the company. In addition to this, the management should also delegate roles based on the skills off a person so as to ensure maximum detail and perfection is involved in the manufacturing process. The management should also foster community and business collaboration through community participatory activities and community service in a periodical manner. They should solve root problems instead of superficial cover-ups. 

Conclusion 

In order to counter resistance from other companies, functional units and employee managers need to create value streams. Understanding the conflict of needs of the multiagency enables the management to collaborate the solution to a wholesome agenda. Understanding individual needs also creates a platform to manage momentum changes of organizations. Delegating functions enables people to attach meaning to their career and eliminate resistance to changes in the organizations (Dumas et al., 2013). Narrowing the scope of responsibility to effectively calculate costs and segment value streams increases the perfection of a product or service therefore improving global competitiveness in an organization. 

References 

Brunsson, N., Rasche, A., &Seidl, D. (2012). The dynamics of standardization: Three perspectives on standards in organization studies. Organization Studies, 33(5-6), 613-632 

Chang, J.F. (2016). Business process management systems: strategy and implementation. CRC Press. 

Dumas, M., La Rosa, M., Mendling, J., &Reijers, H. A. (2013) Fundamentals of business process management (Vol. 1, p.2). Heidelberg: Springer. 

Wright, C., Sturdy, A., & Wylie N. (2012). Management innovation through standardization: Consultants as standardizers of organizational practice. Research Policy, 41 (3), 652-662 

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StudyBounty. (2023, September 15). Leading Change in Lean Enterprises .
https://studybounty.com/leading-change-in-lean-enterprises-essay

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