Example Of Lean Management In Practical Use Based On Reduction “Nvat” Activities In The Product Assembly Process

The long recession and the need to maintain competitive advantages have triggered businesses in manufacturing sectors to question the efficiency of their business processes. Cost reduction has become the dominant orientation of business strategies in domestic enterprises because, while reducing operating income, costs should also be kept under control if we want to ensure the survival of the company. Cost reduction can be achieved by improvements and enhancements of existing manufacturing processes, using methods of quality improvement such as Six Sigma, introduction of Lean concept to eliminate unnecessary business activities or implementation of new technologies thereby increasing technological equipment of the company to the next level and thus provides an advantage in relation to other competitors in the market. Western business practices, in the past four decades, shows that the application of methods and techniques of Lean Management can help businesses to optimize their business processes and eliminate unnecessary activities in a business system that only increase costs, and do not generate additional value. The aim of this paper is to examine the applicability of Lean concept in real business environment in the domestic enterprises to identify business activities that do not bring value to the product (NVAT activities) and try to reduce any NVAT activities with Lean management techniques and thus speed up the process of making products. Results of the study show that the Lean concept is useful tool to speed up the existing production processes as well as to increase the efficiency of the process.