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Bringing ‘Lean’ Principles to Service Industries

October 30, 2007 by Alex  
Filed under Uncategorized

Measure.  MaximumCEO>‘ />HARVARD BUSINESS SCHOOL—Thanks to the pioneering success of <a href="http://finance.google.com/finance?q=NYSE%3ATM" target="_blank">Toyota</a>, the concept of a “lean” operating system has been implemented in countless manufacturing companies and even adapted for industries as diverse as insurance and healthcare.</p>
<p>With its focus on standardization, quality improvement, cost reduction, and efficiency, lean’s influence (and various interpretations of its tenets) continues to grow. In their working paper “Lean Principles and Software Production: Evidence from Indian Software Services,” HBS doctoral student Bradley Staats and professor David Upton examine what happens when Wipro Technologies, an Indian outsource provider of software services, launches its own lean initiative.</p>
<p>“In terms of operations and improvements, the service industries in general are a long way behind manufacturing,” Upton says. “The motivation for this work was to gain some well-grounded research on how improvements can be brought to services through some of these lean concepts.” <a href="http://hbswk.hbs.edu/item/5741.html" target="_blank">Read article.</a></p>
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