Lean Enterprise Organization Application

LeanEnterprise Organization Application

LeanEnterprise Organization Application

Leanenterprise is a concept that is focused on the creation of value forthe consumers thorough the reduction of waste and the improvement ofprocesses. According to Poppendieck, M. (2011), the term has a veryclose relationship with the lean manufacturing and lean six sigmapractices as it relies on the lean principles. Lean enterprise inorganizations is aimed at ensuring minimum waste known as ‘Muda’.The lean enterprise practice is worked from the perspective of theclients who are the main consumers of the product (Poppendieck,2011). As such, it should be possible for the consumers to pay forthe value added. Organizations that apply lean enterprise in theirsystems ae able to produce goods that are appropriate to thecustomers and hence make more sales (Krajewski, Malhotra &ampRitzman, 2015). However, the lean enterprise elements can be goodsigns of the areas that the organization would need to improve.

TwoCore Elements of Lean Enterprise Used For Improvements

Mostof the organizations have very good opportunities of benefiting fromthe improvements that arise out of lean enterprise. Two elements oflean enterprise are selected and which would help in the improvementof airbus. One of them is the identification of value from theperspective of the consumers. In this regard, Poppendieck (2011)opines that organizations should conduct surveys and establishwhether the customers are satisfied with their services and prices.Specifically, Airbus would conduct surveys from their clients andcheck their level of satisfaction. Listening to the voices of thecustomers about what they consider important would be critical inimproving the value of the services offered by Airbus (Krajewski,Malhotra &amp Ritzman, 2015). The second element in the mapping ofthe value stream for the Airbus services. In this regard, the currentstate of the Airbus would be evaluated and addressed and a futurestate made depending on the series of events from the start of aproduct up to when it reaches its consumers.


Thetwo operational excellence approaches that will be compared to leanenterprise are those of six sigma and Total Quality Management (TQM).

Lean enterprise


Six sigma

Its main aim is the removal of waste in the production and manufacturing.

It is often concerned with the improvement of quality within departments.

Its implementation stages are similar to those of business management.

Reduces the costs of products by avoiding wastes (Poppendieck, 2011).

Deploys the internally set quality standards.

It is customer oriented where it focuses on value addition for the customers.

Adds value to the product and passes it on to the consumer.

It has internal mechanisms of monitoring and addressing quality

It can be process oriented through improvement of the processes and systems.

Concerned with monitoring the activities that an organization must undertake in the delivery of quality and value added products to the consumers.

There is no obligation that the quality should be taken to a higher level or even outside the organization’s internal systems.

Its application is a good depiction and sign for good communication in the organization.

Table1: Comparison of Lean Enterprise, Six Sigma and Total QualityManagement.

Evaluationof How Airbus Vision Supports Lean Enterprise

Thevision of Airbus is “to create better, more efficient ways forairlines and passengers to fly”. As such, the organization has thevision of ensuring that their services are better and efficient. Thisaligns with the lean enterprise values of the elimination of waste.Additionally, the fact that efficient ways will be created for thesake of the customers would constitute the aspect of value additionfor the consumers. As such, the vision statement of the companygreatly supports the lean enterprise.

Assessmentof How Lean Enterprises and/or Other Operational ExcellenceInitiatives/Approaches Can Help Lead an Organization to Change

Byapplying the lean enterprise as well as the six-sigma and TQMinitiatives, organizations are able to establish the areas thatrequire improvement. For instance, enquiring about the satisfactionof the customers with the prices of products and services would makeorganizations know how comfortable the customers are (Boyle,Scherrer-Rathje &amp Stuart, 2011). As such, improvements would bemade after and the responses from the consumers are examined.Additionally, through total quality management, the quality ofproducts and services is gauged with the internal standards that havebeen set as the benchmarks of quality. From a comparison of theproducts made and the quality standards, organizations are able toknow where they need to improve. As such, Boyle, Scherrer-Rathje &ampStuart (2011) states that the approaches are critical in showingorganizations the areas that they need to change.


Thefocus of lean enterprise is the creation of value for the consumerswhile reducing wastes and improving the processes. The use of thispractice is critical in the improvement of organizational processes.Specifically, using customer feedback as the basis of improvementwould ensure that the products and services provided would be inconcordance with the tastes and preferences of the consumers. TheAirbus vision statement enshrines the lean enterprise principles asit is focused on providing better services for the consumers throughefficient means. Indeed, lean enterprise is fundamental in initiatingorganizational change as it ensures that organizations makeimprovements that would be aimed at adding value to their productsand services.


Boyle,T. A., Scherrer-Rathje, M., &amp Stuart, I. (2011). Learning to belean: the influence of external information sources in leanimprovements. Journalof Manufacturing Technology Management,22(5),587-603.

Krajewski,L. J., Malhotra, M. K., &amp Ritzman, L. P. (2015). OperationsManagement: Process and Supply Chains (11th ed.). Boston, MA: PearsonEducation.

Poppendieck,M. (2011). Principles of lean thinking. ITManagement Select,18,1-7.

Theworld of Airbus | People &amp culture, history, environment, orders&amp deliveries, market forecast, worldwide presence&nbsp| Airbus,a leading aircraft manufacturer.(2016). airbus.Retrieved 12 November 2016, from http://www.airbus.com/company/