Abstract

Lean manufacturing is an integrated socio-technical system that uses principles, practices, tools, and techniques to improve the speed, cost and quality of processes by eliminating waste, synchronising workflows and managing service flows. Unlike the private sector, public organisations must balance economic, social and other objectives to create value for their customers. However, the primary customer in the public sector is the direct user of the public service. Existing studies are inconclusive on how to measure how organisations create public value. This paper explores lean in the public sector context by creating public value and not value for the individual customer. The shift from customer value to public value was explored using semi-structured qualitative interviews in South African state-owned entities. The findings indicate that public sector value is dependent on the interactions between the dynamic systems of the organisation and their environment.