Application of Lean Manufacturing and Theory of Constraints to the service sector

This research paper transfers the originally in the manufacturing sector applied theories of Lean Manufacturing and Theory of Constraints to the service sector to validate if the application leads to process optimization and improved resource utilization. This transfer is executed by the application of Lean Manufacturing theories and Theory of Constraints to a case company operating in the logistics sector, a subsector of the service sector. The Lean Manufacturing theories of 5S and Automation, the method of Time Value Mapping, as well as Theory of Constraints in combination with Bottleneck theory are applied to the service sector. The study reveals the transferability of the beforementioned theories from the manufacturing to the service sector, by the achievement of process optimization and improved resource utilization in the case company, which is measured by the criteria of time savings and cost reductions. A One-piece flow automation, with a time savings and cost reductions potential of 42 percent was identified as the most suitable process improvement solution for the service sector case company.