Sustainable Enterprise Performance

8Lean Management

8.1. The importance of “Lean management” concepts for performance

Lean management proposes an alternative enterprise governance based on the “extraordinary” industrial approach used by the Japanese vehicle manufacturer Toyota. But is there really a different way, also lean, to measure a business’s, performance? This chapter aims to answer that question.

8.1.1. Toyota: the birthplace of Lean management

Over a long period of time, 60 years in fact, Toyota has shown exceptional results in terms of profitability, market penetration and resilience against crises. These results, obtained by steadfast and uninterrupted internal growth, have led this initially modest firm to the global forefront of automobile construction. This leads us to believe that within this family enterprise, there is a particular manner of apprehending performance. An abundance of literature covers the subject.

The classical industrial model – mass production and its economies of scale, scientific work organization, and the well known names of Ford, Taylor, Sloan and Fayol – was theorized before it was applied. Conversely, the Toyota production system (TPS) was invented and developed within this enterprise in an empirical and pragmatic manner, whereby the only common thread was a single, very simple guideline: eliminate waste. At the end of the day, we must admit that these exceptional performances were obtained by applying practices that were completely opposite to previously acknowledged ...