Lean, what are we trying to accomplish?

Lean is the act of reducing waste and adding customer defined value to products and services. Organisations today must do more with less. Many companies are continually looking for ways to become more competitive in the marketplace. Every new product idea must have a solid business case to back it up, definition's of Lean tends to vary slightly depending upon the source, nevertheless the underlying meaning is the same, when we talk about lean ask what are we trying to accomplish? With lean, unfortunately, the perception is often a very narrow and specific goal. For some it might be to lower cost by reducing staff costs. For others it might be to reduce inventory costs to free up cash. By continually identifying and eliminating waste in our processes, we can lower costs and increase margin. Lean, done properly, enables an organisation to be more adaptable to changes in the market and the economy. To quote the words of W. Edwards Deming, “No one has to change. Survival is optional.” Through implementation of Lean, organisations will benefit from streamlined processes, reduced waste and lower manufacturing cost. In addition, the development of a continuous improvement company culture is also an outcome of Lean. These organisations will not merely survive; these organisations will grow and given that, create additional jobs.

Employee Training

One very important thing you must consider is training and education for your teams. Every professional sports team receives rigorous and continuous training to refine their skill-sets and coaching to keep them motivated and on track towards success. Proper training in Lean methodology and all the tools, along with regular guidance and encouragement, will greatly improve your team’s chance of success and provide for a smoother transition towards a Lean culture.

Start with the Basics

The 5 Lean Principles

Identify Value

Lean teams constantly review their product and service from the eyes of the customer. How does the product help the customer do his job, accomplish his mission, improve his position? This helps them determine the unique value their product or service provides.

Map the Value Stream

Once you determine the unique value they provide (what you’re making, why, and for whom), your can team evaluate each process that leads toward that end goal, moving into the next of the 5 principles of Lean: Value stream mapping enables Lean teams to understand how value flows through the organisation - and more importantly, where it gets stuck. The product of a value stream mapping exercise is a physical ‘map’ of the organisation, which outlines every step of the process for each part of the business: production, R&D, marketing, HR, etc.

Create Flow

With the value stream map in hand, you can then move into the third of the 5 Lean principles: creating flow by analysing each step in the process, finding ways to maximise efficiencies, and reducing waste. Lean teams optimise flow in all aspects of the business -- not just the production arm. Following every value stream to the customer, the Lean team evaluates the steps with her team to determine if each is necessary and, if so, if there are areas to reduce friction, inefficiencies, or stalls in the flow of the value to the customer.

Establish Pull

In the fourth of the 5 principles of Lean thinking, Lean teams consider the customer’s perspective on the final product, effectively looking at the operations of the business in reverse on the value stream maps. When does the customer actually need the product in hand? Instead of investing in materials, production, and then storage to be ready for a customer’s order, Lean teams can use the customer’s true needs to direct a more sensible model saving cost, space, time, and resources.

Seek Perfection

Finally, the Lean team identifies areas of improvement and implements meaningful change, seeking the most efficient processes to bring the greatest value to the customer. In practice, these key 5 Lean principles are cyclical. As the Lean teams seeks perfection, they constantly analyse each process for the increase in value (reduced cost, time, resources used, space, etc.). They focus on the elements that add value and eliminate those that do not. They tighten the flow and deliver the value as the customer needs. Ultimately, the goal is not perfection (which is unattainable), but rather, the pursuit of it -- a concept otherwise known as continues improvement....