Lean business model

Definition

A lean business model focuses on creating maximum value for customers with minimal waste. It emphasizes efficiency, continuous improvement, and the elimination of non-value-added activities.

5 Must Know Facts For Your Next Test

1. The lean business model is derived from Lean Manufacturing principles initially developed by Toyota.
2. It aims to improve customer satisfaction by delivering high-quality products or services efficiently.
3. Key components include Just-in-Time inventory, continuous improvement (Kaizen), and value stream mapping.
4. Lean accounting practices are used to support lean business models by providing relevant financial information that aligns with lean principles.
5. Implementing a lean business model often involves cross-functional teams working together to streamline processes and reduce costs.

Review Questions

• What are the primary goals of a lean business model?
• How does value stream mapping contribute to a lean business model?
• What role does lean accounting play in supporting a lean business model?

Related terms

Just-in-Time (JIT): An inventory management strategy aiming to increase efficiency by receiving goods only as they are needed.

Kaizen:

A Japanese term meaning 'continuous improvement,' focusing on small, incremental changes in processes.

Value Stream Mapping: A visual tool used to analyze and design the flow of materials and information required to bring a product or service to the customer.