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What is Lean?
Lean Thinking
'Lean' is a management philosophy (incorporating many principles, processes and practices etc) that when implemented, forces an organisation, supply chain or industry to become more competitive, customer focused and profitable.
While the concept of 'Lean' was popularised by Womack and Jones in their book "Lean Thinking" in 1993, 'Lean' builds on, and extends earlier 'Just-in-Time' philosophies and practices developed by Toyota (Toyota Production Systems), and even has roots in the work of Henry Ford. A central theme of Lean Thinking is the elimination of Muda (or waste). It is supported by five principles, each of fundamental importance.
Womack and Jones point out that there are three types of activity:
Value creating,
Non-value creating but unavoidable with present processes, and
pure waste.
But note that waste may not be identified as waste unless the complete value stream is looked at. An example is an operator diligently adding a feature that is removed at another company further along the stream.
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The Five Lean Principles
Some managers believe the 5 lean principles not to be feasible within their industry. But this is to miss the point, which is vision: you may not get there within your lifetime, but try - others certainly will.
(1) The starting point is to specify value from the point of view of the customer. This is an established marketing idea (that customers buy results, not products - a clean shirt, not a washing machine).
(2)Then identify the value stream. This is the sequence of processes all the way from raw material to final customer, or from product concept to market launch. If possible look at the whole supply chain. Think of the three types of actions (above), and eliminate the wastes.
(3)The third principle is Flow. Make value flow. If possible use one piece flow. Keep it moving. Avoid batch and queue, or at least continuously reduce them and the obstacles in their way. A clear vision will provide you with a guiding strategy that will move you inexorably towards flow.
(4)Then comes Pull. Having set up the framework for flow, only make as needed. Pull according to customer demand. Pull reduces time and waste. Do not overproduce. Of course, pull needs to take place along the whole demand flow network, not only within a company. So this ultimately implies sharing final customer demands right along the chain.
(5) Finally comes Perfection. Having worked through the previous principles, suddenly now perfection seems more possible. Perfection does not mean only quality - it means producing exactly what the customer wants, exactly when (with no delay), at a fair price and with minimum waste.
One quickly realises that these five principles are not a sequential, one off procedure, but rather a journey of continuous improvement. Start out today.
James Womack and Daniel Jones, Lean Thinking, Simon and Schuster, New York, 1996, ISBN 0-684-81035-2
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15 Characteristics of Lean
The literature on JIT and Lean contains several seminal books, amongst them by Womack and Jones, Schonberger, Hall, Goldratt, and Imai. These built on the greats : Deming, Juran, and Ohno. To distill them is a daunting task, but certainly there are common themes. These 15 seem to be at the core:
Customer: The external customer is the starting and ending point.
Simplicity - Lean is not simple, but simplicity pervades.
Visibility: Seek to make all operations as visible and transparent as possible.
Regularity: Regularity makes for no surprises operations.
Synchronisation: Seek keep it moving manufacture. Seek flow, especially one-piece flow.
Pull: Seek for operations to work at the customer s rate of demand.
Waste: Waste is endemic. Learn to recognise it, and seek to reduce it, always.
Process: Organise and think by the process view, the supply chain perspective. Think horizontal, not vertical.
Prevention: Seek to prevent problems, rather than to inspect and fix.
Time: Seek to reduce overall time to make, to deliver, and to introduce new products.
Improvement: Improvement is everyone's concern.
Partnership: Seek co-operative working both internally between functions and externally with suppliers.
Gemba: Go the workplace and seek the facts. Manage by walking around.
Variation: Variation is found in every process. Seek to reduce it
Participation: Give operators the first opportunity to solve problems
For effective learning of Lean techniques and processes - see details of the highly regarded Buckingham Lean Business Simulation below:
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Value Stream Mapping
1) A visual pencil and paper mapping process that helps you, your team and other stakeholders see and understand the flow of material and information as a product makes its way through the value stream.
2) Develoment of a visual "CURRENT STATE" map, and then later a "FUTURE STATE" map, helps everybody clearly understand the improvement opportunities for the business and its supply chain
Learn more about Value Stream Mapping
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Want to read more ? See the 'Lean Toolbox'
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Lean Manufacturing
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