Lean Production systems in the modern understanding of logistics are primarily applied to the optimization of logistics chains. These principles have been practiced since the 1960s in Japan. In the US and Europe, Lean Production was only discovered in the 1980s. The automotive industry adopted this method very quickly.

With Lean Production, it was possible for the first time to reduce high planning efforts and complexity. “Lean” means decentralization, outsourcing, flat hierarchy, capacity compaction resulting in a reduction in the number of employees. This represents a simplification of Japan's “Total Quality Management” method.

Complexity is reduced through the overall organizational concept and initially meant a reduction in the scope of production work in each step of production in the factory. This reduction is realized by transferring the stored processes and final processing is carried out in other factories. For this reason, supplying companies are becoming increasingly important. Further, production takes a central place in the enterprise and is supported through other areas.

In order to prevent the monotony that arises in production belt work, workers by working in groups can be qualified higher and thus be able to perform different tasks. Unfortunately, this method leads to layoffs in companies.

Business Reengineering represents a change from traditional structures to new leaner structures.

Since the demands on employees for Lean Production are high, training and further education of employees are required.

CONCERNSWNE

• TQM - Total Quality Management

• Value flow design