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The idea of intangible consequences has been adequately explained. The author goes a step farther to demonstrate how intangible impacts negatively affect both consumers and employees.
Johnson provides a thorough overview of intangible impacts. Easy-to-follow and comprehending examples are used to further illustrate this.
Several service organizations have successfully implemented lean strategies. The lean effort at Fujitsu, an IT service management firm, was built on a customer-focused philosophy (Fujitsu 1). As a result, there were fewer customer complaints, more satisfied customers, and lower operational costs overall (Leite and Vieira 536). Another lean initiative was applied by Wipro, an Indian IT company, which applied the concept of continuous improvement, and software development tools such as Design Structure Matrix (DSM). The company has experienced a reduction in errors and workflow was seamless (Hanna). It is clear that service organizations should implement lean initiatives. This is due to the fact that the approach is based on principles that were created with the consumer in mind. Therefore, they are bound to increase consumer satisfaction. At the same time, lean principles help minimize all forms of waste produced in a company, while improving quality (Collier and Evans 359-361). Moreover, the organization will benefit from the time saved, increased employee satisfaction and efficiency (Shpak).
Applying lean in a factory is distinctly different from using the same approach in a service organization. In the service organization, work takes place in the individual's mind, and processes are out of sight. In the factory, processes are physically observable, and lean can be seen in action. At the same time, lean services are not concerned with the creation of tangible products.
Collier, David A. & Evans, James R. OM: Operations + Supply Chain Management. Boston: Cengage Learning, 2016
Fujitsu. Improve Business Processes with Lean Approach, n.d. https://www.fujitsu.com/fi/Images/XpresWay_Lean_EN.pdf. Accessed 21st June, 2017.
Hanna, Julia. "Bringing 'Lean' Principles to Service Industries". Harvard Business School, Oct. 2007. http://hbswk.hbs.edu/item/bringing-lean-principles-to-service-industries. Accessed 21st June, 2017.
Leite, Higor R. & Vieira, Guilherme, E. "Lean Philosophy and its Applications in the ServiceIndustry: A Review of the Current Knowledge". Production. 25.3(2015):529-41. http://dx.doi.org/10.1590/0103-6513.079012
Shpak, Scott. "Advantages & Disadvantages of Lean production". Chron, 2017. http://smallbusiness.chron.com/advantages-amp-disadvantages-lean-production-46696.html. Accessed 21st June, 2017.
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