What is a Lean Strategy?
Lean strategies focuses on producing more with less input. Thus, it seeks to eliminate waste throughout the entire manufacturing process. Efficiency can be achieved in two ways:
- Technical Efficiency Here, a firm that produces the maximum amount of products given limited resources and capital is said to be technically efficient.
- Economic Efficiency – This deals with minimizing manufacturing costs through wise allocation of resources to achieve the best output. A firm whose main goal is maximizing profits should also efficiently allocate resources to keep costs down.
Lean strategies seek to enhance the technical efficiency of a firm, methodologies, and processes. Lean firms reduce wasted time, human resources, and space.
Related Topics
- Organizational Strategies
- Growth-Based (Expansion) Strategies
- Inorganic Growth
- Organic Growth
- Diversification
- Concentration
- Integration or Combination (Horizontal and Vertical)
- Asset Acquisition Strategy Definition
- Horizontal Integration – Explained
- Backward Integration – Explained
- Internationalization
- Cooperative Strategy
- Consortium Definition
- Stability and Retrenchment Strategies
- Competitive Strategies
- Contestable Market Theory
- Value Disciplines
- Porter’s Generic Strategies
- Differentiation (Strategy)
- Commoditize
- Niche Market Strategy
- Long Tail
- Low-Cost Production
- Resource-Based View of the Firm
- Resource Dependency Theory
- Ansoff Matrix
- Customer-Centric Strategy
- Blue Ocean Strategy
- Overfished Ocean Strategy
- Hedgehog Concept (Strategy)
- Innovation Strategy
- Bleeding Edge
- 3 Horizons of Growth
- Disintermediation (Strategy)
- Strategic Alliance
- Coopetition (Strategy)
- Loss Leader Strategy
- Lean Strategy
- Game Theory Perspectives
- Functional Strategies
- Marketing Strategy
- Zero-Cost Strategy Definition
- Mobile First Strategy Definition
- Operational Strategy