ABSTRACT

To put it simply, lean IT is the application of information technology (IT) solutions to further the

positive effects of adopting lean management principles. Separately, the application of lean

management principles and the use of IT are undoubtedly two of the most powerful ways to

improve organizations. Hence the importance of IT in operations management has escalated over

the years and there is a strong interest in lean IT in both manufacturing and services. However,

these two avenues for organizational improvement are often not well attuned. Although com-

bining lean management with extensive use of IT in operations may seem to be an attractive

option for achieving operational excellence, it is definitely a challenging one. Consider the

following example taken from our research into a manufacturing company well known for its

highly mature and developed lean practices:

In this company, one of the core practices is the involvement of production workers in

continuous improvement. When identifying an opportunity to improve assembly routines,

production workers pull an andon cord to stop the line and then gather the team at the assembly

station to observe the problem and discuss possible solutions. When a solution is identified and

decided upon, it is typically documented and implemented immediately, and the assembly

process restarted. One such improvement cycle might take 15 minutes to complete.