Combining Lean Management and Circular Economy: A Literature Review

In the drive for sustainability, companies are turning to Circular Economy (CE) principles, emphasizing resource conservation, waste reduction, and closed material loops. Strategies known as the R-principles (refuse, rethink, reduce, reuse, repair, refurbish, remanufacture, repurpose, recycle, and recover) guide CE implementation by maximizing resource use and minimizing waste disposal. Interestingly, Lean Management's (LM) core focus on eliminating waste seemingly aligns with CE goals, presenting a compelling opportunity for a synergistic approach to sustainability. This paper explores the connection between LM and CE by providing an in-depth examination of CE, an overview of LM, and a systematic literature review. The review builds upon 1 609 sources (2015-2024) reduced to 32 relevant papers and expert insights to uncover connections and areas for harmonization. While both LM and CE strive to reduce waste, their basic understanding of waste concepts and organizational scopes differ. However, by broadening its focus to include environmental impact, LM principles and methods can guide and monitor CE efforts. Initial synergy is evident in reduce-strategies, where extending the concept of "muda" to include "green waste" benefits both approaches. However, potential conflicts arise when closing the loop, particularly with recycling and remanufacturing, where CE's resource focus can disrupt traditional LM concepts like flow and pull. Furthermore, extended inventory and transports are needed to implement CE, but their reduction is a LM goal. Therefore, integrating CE with LM necessitates a holistic approach encompassing KPIs that balance both lean and green goals. Successfully closing the loop offers significant potential for resource conservation, new business models, and a competitive advantage in a resource-constrained world.