One objective of lean is to eliminate waste in the production. The elimination of waste would result in a reduction costs within all the departments of the company. Eliminating the part that does not create any value frees resources for offensive bets and results in cost reductions.
Another objective of lean production is to improve customer satisfaction. Maximizing customer value in products results in a competitive advantage in the market place through the factors of a reduction of lead times, increase in product and service quality and price competitiveness. This would in its turn result in higher industry returns that comes from differentiation through customer service.
Managers are implementing lean with the prospect of achieving a competitive advantage in the marketplace by both reducing cost and increasing the efficiency of service to meet customer demand. Managers are also implementing lean principles to cope with challenges that may occur within the operations and supply chain of the company. The implementation of lean principles helps companies to adopt a joined team-approach to solve problems and to manage problems that arises regarding company culture.