One really good example of lean concepts and principles being applied in the service industry is Southwest Airlines. In many ways they have leveraged ways to identify and reduce waste in processes that were traditionally considered standard practice at all airlines (Hallowell, 1996). Their revolutionary take on cost cutting was extremely well received by customers and help propel Southwest Airlines to the forefront of the airline industry. They quickly gobbled up market share from their more traditional competitors and today stand alone at the top of the industry from a market share perspective which surprised many in the industry that saw Southwest Airline as a gimmick when they first came out.
I find it surprising that so many analysts still do not understand how strong an advantage lean concepts provides to a business. Toyota and Southwest Airlines are just two examples of companies that have leverage these simple concepts to drive profits and market share to eventuall y end up at the top of their industries. It is still surprising to me that more companies do not embrace these tested concepts to drive efficiencies and increase profits.
QUESTION: What other industries are led by a company that has embraced lean throughout their organization?
REFERENCE/CITATION: HARVAD STLYE