What is LEAN THINKING and PRACTICE?

Lean thinking reduces waste and focuses on the essentials.” “Eliminate Waste” is the first of the seven Lean principles which focus on eliminating anything that does not add value to the customer, and identification of “waste” is the 1st step toward ways to eliminate those wastes from the system.

1. Specify the value desired by the customer.

2. Identify the value stream for each product and eliminate wasted steps.

3. Ensure continuous flow through value-added steps.

4. Introduce pull between steps where continuous flow is impossible.

5. Manage toward perfection, reducing the number of steps, time, and information needed.

Today, Toyota stands as a global exemplar of lean enterprise, poised to become the largest automaker worldwide. The principles of lean thinking have extended beyond manufacturing, influencing sectors such as logistics, healthcare, services, and even government. As lean thinking continues to permeate every corner of the globe, its impact on diverse industries is only beginning to unfold. The journey of lean thinking is far from over, with leaders across sectors adapting its tools and principles to drive efficiency and excellence.

What is Lean?

• Embracing Lean involves a mindset geared towards generating essential value while optimizing resources and minimizing waste.
• The essence of Lean extends beyond mere thought, manifesting as a continuous practice rooted in experimentation.
• The ultimate goal: attaining flawless value creation with absolute waste reduction. In essence, Lean thinking and practice go hand in hand, creating a symbiotic relationship.

Customer-centricity forms the bedrock of Lean thinking. Initiating with a fundamental question — What does the customer value? Or, in a more actionable context, what problem requires the customer's resolution?

The practice of Lean commences with the tasks at hand — the actions directly and indirectly shaping value for the customer — and the individuals carrying out those tasks. Through a continuous cycle of experimentation, both workers and managers engage in innovative approaches, fostering better quality, enhanced flow, reduced time and effort, and lower costs in their physical or knowledge-oriented work. Consequently, an organization embodying Lean practice exhibits remarkable adaptability within its dynamic environment. This adaptability stems from the systematic and ongoing learning cultivated through the amalgamation of Lean thinking and practice.

A Lean enterprise is meticulously structured to uphold a constant awareness of the customer and their context. This involves:

Specifying value and seeking continual improvements through product and process development.

Ensuring a streamlined journey from order through production to delivery during fulfillment.

Addressing the complete lifecycle of the product or service, from delivery through maintenance and upgrades to recycling.

The Lean Transformation Framework

• Decoding the Lean Transformation Framework

At the heart of Lean methodologies lies the Lean Transformation Framework — a systematic and proven approach designed to tackle challenges spanning the entire enterprise spectrum. Whether steering an established organization or navigating the startup landscape, the Framework serves as a versatile tool to address issues at every level, from strategic decision-making to day-to-day operations. It centers around five pivotal questions, offering guidance on purpose, process, and people, thereby facilitating solutions that align with these core elements.

Drawing from decades of hands-on lean practice, the Lean Transformation Framework evolved through practical insights. The framework encourages practitioners to enhance a specific aspect of their work processes, recognizing that improvement is the key to understanding lean transformation. Embedded within the framework are five essential questions that Lean Enterprise Institute (LEI) integrated for effective problem-solving:

1. What is the value-driven purpose, or the problem to solve?
2. What is the work required to address the problem?
3. What capabilities are necessary to perform the work and solve the problem?
4. What management system, including operating procedures and leadership behaviors, is needed?
5. What fundamental thinking, encompassing mindsets and assumptions, is essential for the organization as a purpose-driven socio-technical system?

These questions exhibit a fractal nature, applicable at both macro and micro-enterprise levels, ensuring usability for individuals across all organizational tiers, from CEOs to frontline supervisors.

For effective utilization of the Framework, a comprehensive understanding of how each question and its corresponding answer interrelate is imperative. This synergy ensures the maintenance of momentum towards achieving a successful transformation.

What problem are we trying to solve?

Defining the Core Challenge:

In addressing the question "What problem are we trying to solve?" within the Lean Transformation Framework, the identified challenge serves as the focal point for improvement efforts. The response involves:

1. Clarifying Organizational Purpose: Articulate the organization's value-driven purpose and overarching objectives.
2. Evaluating Current State: Scrutinize the existing state of affairs within the organization, comparing it against desired outcomes and objectives.
3. Identifying Specific Issues: Pinpoint the specific problem or challenge that requires resolution, encompassing aspects related to processes, systems, or organizational dynamics.
4. Systematic Analysis: Conduct a systematic analysis of the factors contributing to the identified problem, delving into various facets of the organization.
5. Leveraging Lean Principles: Utilize Lean principles and methodologies to dissect the problem further. Apply tools such as value-stream mapping, standardized work procedures, and A3 problem-solving for deeper insights.
6. Emphasizing Continuous Improvement: Promote a culture of continuous improvement within the organization, recognizing that each identified problem represents an opportunity for enhancement.
7. Aligning Solutions with Purpose: Ensure that proposed solutions align with the organization's overarching purpose and objectives' work, and how do we improve it?

What is the work, and how do we improve it?

In navigating the Lean Transformation Framework and delving into the question "What is the work, and how do we improve it?" the focus is on gaining clarity on the existing work processes and outlining steps for enhancement:

1. Define the Work: Begin by clearly defining the nature of the work involved. This encompasses both the explicit tasks and the implicit processes that contribute to the overall workflow.
2. Analyze Work Processes: Conduct a detailed analysis of the work processes, breaking them down to understand the specific actions and interactions involved.
3. Identify Improvement Opportunities: Pinpoint areas within the work processes where improvements can be made. This may involve scrutinizing efficiency, quality, and overall effectiveness.
4. Utilize Lean Practices: Leverage established Lean practices and tools to aid in the improvement process. Techniques such as value-stream mapping, standardized work procedures, and A3 problem-solving can be instrumental.
5. Encourage Continuous Experimentation: Foster a culture of continuous experimentation within the work environment. This involves encouraging teams to explore innovative approaches for improvement.
6. Implement Systematic Changes: Implement systematic changes based on the identified improvement opportunities. Ensure that the changes align with the overarching goals and objectives of the organization.
7. Monitor and Adjust: Establish mechanisms for continuous monitoring and adjustment. Regularly evaluate the impact of implemented changes and be prepared to adjust strategies based on evolving needs.

How do we develop our capability?

Developing organizational capability is a multifaceted endeavor that involves fostering skills, knowledge, and adaptability within the workforce. Here's a guide on how to develop organizational capability:

1. Identify Core Competencies: Begin by identifying the core competencies required for achieving organizational goals. This involves understanding the skills, knowledge, and attributes that contribute to success.
2. Assess Current Capabilities: Conduct a thorough assessment of the existing capabilities within the organization. Identify strengths and areas that require enhancement, considering both individual and collective competencies.
3. Define Development Goals: Clearly define development goals based on the identified gaps. Establish specific, measurable, achievable, relevant, and time-bound (SMART) objectives to guide the capability development process.
4. Provide Targeted Training and Education: Offer targeted training programs and educational opportunities to address identified gaps. This can include workshops, seminars, online courses, and other learning initiatives tailored to the organization's needs.
5. Encourage Continuous Learning: Foster a culture of continuous learning within the organization. Promote self-directed learning, encourage employees to pursue professional development, and provide access to resources that support ongoing education.
6. Mentorship and Coaching: Implement mentorship and coaching programs to facilitate knowledge transfer and skill development. Experienced employees can share insights and guidance with those seeking to enhance their capabilities.
7. Promote Cross-Functional Collaboration: Encourage collaboration across different departments and teams. Cross-functional interactions provide opportunities for employees to learn from diverse perspectives and build a broader skill set.
8. Recognize and Reward Development: Recognize and reward employees who actively engage in capability development. This reinforces a culture where continuous improvement is valued and incentivized.
9. Embrace Technological Advancements: Stay abreast of technological advancements relevant to the industry. Integrate new tools and technologies that can enhance efficiency and effectiveness, providing employees with opportunities to adapt and learn.
10. Evaluate and Adjust: Regularly assess the impact of capability development initiatives. Gather feedback from employees, measure progress against set goals, and be prepared to adjust strategies based on evolving organizational needs.

In this article, let’s take Daily Scrum as an example to help understand, identify and eliminate the 7 wastes.

?Inventory: Unfinished goods (also called as “Work In Progress” WIP)

?Overproduction: Producing more than the demand

?Extra processing: Additional steps in the process that are not really needed

?Transportation: Shipping the goods from one place to the other

?Waiting: Lag between process steps

?Motion: Moving around within the process

?Defects: Flaws in the deliverables that impact the feature/functionality