Lean competence: integration of theories in operations management practice

Abstract

PurposeThis paper aims to develop a methodology for lean implementation that reduces the risk of damaging a company's key resources and abilities through the application of core competence theory.Design/methodology/approachAcademic literature provided background conceptual understanding of lean and core competence theory for an industrial working party of domain experts from 15 major aerospace companies in the UK to develop a methodology for lean implementation that would not damage firm's competences. The methodology was trailed through cooperative inquiry in a business unit of a leading global aerospace company using a case study approach.FindingsAn accessible definition of core competence that captures academic theory was proposed through an industrial working group. Further a methodology for lean implementation, drawing upon core competence theories was developed. The method comprised four tools: market analysis, the visible value stream, customer value analysis, and financial modelling. Tools drew upon established practice and their joint application is intended to safeguard a company's key resources and capabilities from loss or impact during lean implementations. Application in a single case study company and the effects observed over a number of years indicated the methodology, though developmental, was capable of significant positive effects.Originality/valueThe paper provides a practical definition of core competence and application of theory within a lean implementation, trailed and validated in an industrial setting. Competence theory has previously been described as “lack‐lustre” due to the abstract nature of the ideas.