Lean Strategy - Explained
What is a Lean Strategy?
Written by J. Mance Gordon
Updated at April 21st, 2024
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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
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- Loss Leader Strategy
- Lean Strategy
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- Marketing Strategy
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