Risk in Implementing Lean Practices: Lean manufacturing as a strategic business transformation
The objective of this work is to assist practitioners with the vagaries of Lean implementation. To do this we explore the intersection between strategic risk management and Lean implementation. The research embodies the monitoring and review of risk for Lean business transformation with the application of AS/NZS ISO 31000 and includes a representative case study from the manufacturing sector. Lean manufacturing or Lean management is becoming the standard for systematic productivity and quality improvement. We discuss the intersection of risk and Lean management and the lack in research literature at this juncture. We further illustrate the mutually supportive nature of risk management and Lean. By case study we show how various aspects, methods or tools of Lean may be characterised for benefits and detriments, likelihood and impact. In this way risk management methods can be used to support decisions in the design of the Lean implementation process. The work extends into the organisational factors including culture and maps strategic considerations into the process. The case study illustrates how to analyse these factors for a customised Lean implementation using a risk management framework and presents implications for practitioners.