FIVE STEPS OF LEAN

So far, we have spoken about various concepts of business, best practices and benefits of LEAN. Today, we shall talk about how a typical LEAN project moves forward. Experts describe this as FIVE STEPS OF LEAN. I list them below:?

1.?????IDENTIFY VALUE: This is the starting point of LEAN. It is vital that we understand what is perceived as value by the customer. This is so important that a separate post has been earmarked for this topic. Only when we understand value from a customer's perspective can we hope to achieve customer delight.?

2.?????MAP THE VALUE STREAM: Every business activity is basically a sequence of processes, be it material or information or both. It is absolutely necessary for us to understand the flow of the process, document it clearly and analyze it thoroughly. Such analysis, if done properly, can be revealing; even shocking. It will show which parts of the process add value and which do not.?

3.?????CREATE FLOW: We are all used to hurdles, surprises and stoppages of work quite often. It is so common that we accept it as a way of life. LEAN will teach us to stop this destructive thinking. It will help us think in a new way where we shall not accept any of these lying down. The smoother the flow, better will be the speed of delivering products to the customer. That has to be our priority.?

4.?????ESTABLISH PULL: I recall the time almost fifty years ago when I had just walked in as a fresher in a large factory. They had a huge warehouse filled with finished products. More trucks were rolling in. When I meekly asked the Storekeeper why so much was being stored, he condescendingly explained that the company did not want any customer order to remain unfulfilled. Today, five decades later, the thinking of modern, smart organizations has taken a U-turn. The huge cost of inventory, hitherto hidden under the camouflage of safety stock, has now been recognized as a deadly poison that could destroy a company. Thus, with the advent of LEAN, the concept of PULL has come into vogue. Raw Material purchases, Production plans and Finished Goods inventory are now planned purely based on meeting the customer need as and when needed. A tough call but a necessary discipline. Smart companies have perfected this and it has become second nature to them.?

5.?????PURSUIT OF PERFECTION: In a philosophical sense, perfection is always a dream, never to be achieved. But pursuit of perfection is a much needed reality. Through constant effort for Continuous Improvement, companies have realized that while perfection may not be the goal, pursuit of excellence certainly is.?

This stuff has been quite long. Thank you for your patience. Until next week, bye.?

Here is the link for the previous article: https://www.dhirubhai.net/pulse/time-various-definitions-sridhar-j

LEAN MURALI, my mentor in understanding LEAN, has a magnificent mission. His mission is to help one million young professionals become Lean Champions. Towards this, he conducts a weekly one hour online Knowledge Sharing Session where he explains Lean, Six Sigma concepts in a simple manner that is easy follow. He believes that spreading knowledge to hungry minds is no less than donating blood or feeding the poor. This is absolutely FREE and anyone can participate. Those interested in these free live sessions can opt to register through the following link: https://tinyurl.com/freelean