A Model of Lean Management for Organizational Innovation: Cases in Visegrád and AFTA

Abstract

Originated as a production management philosophy, Lean Manufacturing has successfully transferred and implemented globally. Lean genealogy studies have been conducted, indicating the essential concept now evolves to Lean Management (LM), which is applicable to many branches of production and services management, viz quality and productivity, human resources, knowledge and technology, etc. Innovation has been made to ensure a smooth customization of knowledge and principles, tailored to each organization who is eager to implement this state-of-the-art management system. However, failures are becoming commonplace due to the lack of understanding the core values, and insufficient intensification of compensation for cultural differences. In this paper, cases of implementing LM across the Visegrád group (V4) and the ASEAN Free Trade Area (AFTA) from previous literature are taken into consideration. Factors that differentiate the characteristic of LM are brought to discussion. Therefore, the discovered gap between the two trade blocs urges the in-depth amendment and modification of employed concepts, tools, etc. A model is consequently elaborated, which aims at facilitate the managerial decision-making process regarding knowledge transfer of LM between V4 and AFTA, based on critical factors related to human, technology and culture, i.e. Labor cost, Manual requirement, Awareness, Continuous Improvement culture. This model can be used to predict the change should be made, or the criterion should be fulfilled to transfer the implementation and knowledge of LM effectively.