Purchasing and Lean management

This thesis focuses on the implementation of Lean principles at First Green Industries a.s. The main objective was to propose improvements to the procurement process using lean management approaches, which was achieved through a case study focused on the Procure to Pay (P2P) process. The study involved changes, particularly in the digitalization of processes within the Akip information system, including three key modules: JobCard, Supplier Orders, and Forecasting. The results of the implementation show significant improvements in process performance, measured by the First Time Yield (FTY) and cycle time indicators. FTY increased to 88% from the original 10%, while the average cycle time was reduced to 12 minutes from 58 minutes. The academic contribution of this work lies in answering the research question regarding the impact of internal controls on system efficiency. The study demonstrates that reducing the number of controls through Lean management leads to faster and more reliable process operation. The practical contribution is that the work significantly helped improve the company's procurement process and established a new direction of thinking about process operations that will guide the company in the future. This approach enabled the company to better adapt its procedures and achieve higher efficiency.