Operation management Essay Example | Topics and Well Written Essays - 1500 words

Operation management - Essay Example LM is an entire management philosophy which is often also called Toyotism because it was actually introduced by Toyota automotive manufacturer. This essay is based on scrutinising what the modern literature has to say on the subject of LM and how different principles related to this business strategy can improve the value stream of an organisation. After discussing major concepts identified in LM research, the following discussion will include application of those concepts on a chosen area of tourism, which in this case is the accommodation sector. The accommodation sector includes luxury resorts, hotels, and bed and breakfasts which are built to accommodate tourists. The essay will conclude by evaluating the extent to which OM contributes to organisational decision making. LM is not an enemy as thought by some. It does not lead to even more serious problems because it is only incorrect lean implementation that is to be feared. This explains why it is important to analyse multiple important ways which show how lean principles can be applied in a safe manner. Basically, LM is a management principle which considers the goal of delivering value to the customers to be the most important in terms of lending strength and reputation to an organisation (Sarkar, 2012, p. 2). It stresses that the limited resources available to an organisation are critically valuable and they should be only spent on creating value for the customers. Resources spent on other goals which do not add value are wasted (Duggan, 2012, p. 3). A value stream is one of the key concepts of LM which may be either based on internal processes alone or also include external suppliers. It basically includes all processes involved in the creation, production, and delivery of goods to the market. Deep investigation into value stream should be considered a top priority by all organisations because before eliminating waste, it is important for it to be identified, which is exactly what