Reading this section you will explore many definition on What is Lean. I will reveal my favorite but you can choose the definition you like the most...
Let's start with an image ...
This image summarize that Lean Production is not about the COST REDUCTION.
Lean Production is to increase Quality, Speed and Results with the consequence of cost reduction
So the first step is to not believe in Lean Projects where the main scope
is the cost reduction.
Another real important point is to understand that Lean Principles can be applied to every field of industry and life. To give you an example I propose you this 6 minutes video.
Look:
It should be clear now that Lean is a mindset rather than a set of tool. Because of this I do not like to speak of Lean Production, Lean Manufacturing or Lean Enterprise ...
I like to speak about Lean Thinking!
Here the first 2 major points to remember:
1) Lean is not a cost reduction project
2) You can apply Lean Concepts to any reality ... no excuse.
There are many Lean Centre and Lean Institutes that are constantly studying Lean Definitions. I would like to reveal you which is in my opinion the best ...
The winner is ... Lean Enterprise Institute.
From their web site you can really find a lot of material to understand Lean Concepts and now I will report and comment their definition on what is lean.
" The core idea is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources."
My comment:
I fully agree and it is in line with the image I propose at the beginning. Focus on the customer and the waste will be reduced as consequence. Waste Reduction lead to Cost Reduction
The history of the Lean Production start in Japan with the Toyota (even if a continuous exchange with the USA was done). It is common to say that the founder of the Lean Management was Taiichi Ohno. From his book I would like to quote his definition (even if he did not the word Lean at that time).
" The Basic Idea of the Toyota System is to completely eliminate wastes. The two pillars to reach the waste elimination are the "just in time" and the "jidoka" (Autonomation).
The World is moving faster and faster. Windows of opportunities open and close faster too. So the way to organize industries is becoming different accordingly with this new velocity.
A new movement started by merging the Toyota Production System and the Internet World. This movement is named "The Lean Start Up" and was founded by Eric Ries.
For him and his movement the definition of Lean is the following.
The Lean Startup method ask to measure people's productivity in a different way. The objective is to understand the right product to develop. The product that customers want and are willing to pay.
Do you think I gave you already a good overview on the Lean Definitions?
If your answer is yes, I would like to ask you to click on the "+1", for you is an instant and for me is a good feedback for the work I am doing!
You might be wondering you are alone in this research of Lean Definition.
You are not!
When I attended the first Lean Training I asked myself: " Why I should use this tools? What are the benefits to use this Lean Management? "
Then I started with a team my first 5S. It was shocking! we spent an entire week just for the first S.
I was younger and full of energy so I put myself totally in the project. I have to admit that was not so easy to do it and looking at other colleagues observing you as an alien and Engineer Housekeeper.
But, at the end of the project the department looked as brand new, with all the people involved very happy to work in a workplace where everything was organized and available at few steps from the point of use.
So, one of the first benefit in starting with a Lean Production journey is to have an organized company. It is a must, a first step something considered the base to start.
Pay attention now!
Many companies believe that a good 5S is the most important part of the Lean Journey. It is important, but it just the beginning.
Other Benefits of Lean Manufacturing normally listed are:
Is it possible? All this benefits?
Why
all the companies in the world do not use it?
Even if it is not easy to believe it is true. I can clearly state that I saw with my eyes set-up time from hours to minutes, 30% inventory reduction, 20% productivity increase.
I know is hard to believe but it is real. The other face of the coin is the to obtain these results is an hard work. you need a deep cultural change and it not happens overnight. In fact is the Lean Journey not the Lean week-end.
If you will continue to follow me in this section I will tell you how it is possible to reach unbelievable results in your company. If you subscribe the newsletter you will be always updated.
Here I want to list for you the companies I know is involved in a Lean Manufacturing Project. By visiting their websites you really could obtain a lot of information and their definition of What is Lean.
Here is the kicker!
I would like to reveal that my favorite Lean Definition is from the Lean Enterprise Institute.
I already said something but they continue with a more detailed definition:
" A lean organization understands customer value and focuses its key processes to continuously increase it. The ultimate goal is to provide perfect value to the customer through a perfect value creation process that has zero waste."
My comment:
Two keywords you have to fix in mind. Key Processes and Continuous Improvement. Following these sections I will give you the best practice to focus on the Key Processes. About the Continuous Improvement I would like to challenge you.
I think that in your life you had chance to travel. You normally put clothes in a suitcase or bag. Do you think the way you use is the best or there is something that you could improve?
Answer first and then look at this video.
" To accomplish this, lean thinking changes the focus of management from optimizing separate technologies, assets, and vertical departments to optimizing the flow of products and services through entire value streams that flow horizontally across technologies, assets, and departments to customers."
My comment:
To change the focus of the management is probably the hardest part. In particular the middle managment. It not easy to ask to the inventory manager to accept an increase of inventory in the first period of the Lean Implemention even if it is something to accept in the long term strategy.
The two keywords:
" Eliminating waste along entire value streams, instead of at isolated points, creates processes that need less human effort, less space, less capital, and less time to make products and services at far less costs and with much fewer defects, compared with traditional business systems.
Companies are able to respond to changing customer desires with high variety, high quality, low cost, and with very fast throughput times. Also, information management becomes much simpler and more accurate."
My comment:
Every time the company is able to really eliminate waste it is created something that stick in the company because everybody win! Believe me, is not simple! The only tip I can give you is to involve all the person involved in the process and listen, listen, listen.
The Lean books that really you have to read to understand What is Lean.
In these years the Lean Managament in becoming more and more popular. A lot of consultants are approaching companies to promote the Lean Journey.
I would like to reveal you a secret.
Some of them has just experience but in my opinion some of them have not read the books. I think that if you have time to read the book I am going to suggest and start with a project in a limited area of the company you will learn a lot with a little investment (Less than 300$ and you will save more!).
Toyota Production System:
Beyond Large-Scale Production Hardcover
My comment: The original words of Ohno. A book that can change the way you look at your company. No numbers. To read, underline and read again.
Learning to See: Value Stream Mapping to Add Value and Eliminate MUDA
My comment: Here you start with some number. In a company the numbers are important. You will learn how to manage chaos in the most efficient way. I will learn to see what you normally see from a different point of view
The Lean Toolbox: The Essential Guide to Lean Transformation
My Comment: This book is from a professor from UK and will offer you a round 300 pages with all the tool for the Lean Transformation. Good to understand in one book all the story :-). There are formulas and numbers.
Lean Lexicon: A Graphical Glossary for Lean Thinkers
My comment: It is important to have a quick guide to align the company to the definitions. If you misuderstand the KANBAN, probably you will waste time and resources. Refer to this book to start with the right step.
All this books are the my essentials. Just with this book you can start the Lean Journey and follow for 1-2 year. In the following section I will suggest you specific books for an higher level of implementation.
Remeber! The Lean Transformation is a journey not a week-end.
Before the last part.
If you like my way to explain Lean Management, why don't you join the community?
Purpose, Process, People
Womack
and Jones recommend that managers and executives embarked on lean
transformations think about three fundamental business issues that
should guide the transformation of the entire
organization:
- Purpose: What customer problems will the enterprise solve to achieve its own purpose of prospering?
- Process: How will the organization assess each major value stream to make sure each step is valuable, capable, available, adequate, flexible, and that all the steps are linked by flow, pull, and leveling?
- People: How can the organization insure that every important process has someone responsible for continually evaluating that value stream in terms of business purpose and lean process? How can everyone touching the value stream be actively engaged in operating it correctly and continually improving it?
Now , I will invite you to assess your knowledge by the "Lean Audit Checklist"
and try to find your own definition of Lean.
Leanlab Staff.