Lean Enterprise

DEFINITION of 'Lean Enterprise'

Lean enterprise is the production and management philosophy that considers any part of the enterprise which does not directly add value to the final product to be superfluous and in need of elimination. Lean enterprise considers the product or service from the consumer's perspective to determine what is of value (i.e. what the consumer is willing to pay for), then examines at the process with the aim of reducing all of its aspects except for the value-adding ones.

BREAKING DOWN 'Lean Enterprise'

Lean enterprise is sometimes simply referred to as "lean." Both of these terms came into use in the 1990s, but theĀ approach itself originates in Toyota Production System - a management philosophy developed by Eiji Toyota and Taiichi Ohno between 1948 and 1975. (For related reading, see: Lean Six Sigma and What's the Difference Between Lean Six Sigma and Six Sigma?)