What is Lean?

What is Lean? An Exploration of Definitions

When you Google “Lean,” you’ll find various definitions. Some refer to it as a type of drink or a weight loss program. In this article, we’ll explain Lean as a strategy for continuous improvement, also known as Lean management, Lean Thinking, or Lean manufacturing.

What is Lean?

Lean is not just a buzzword; it’s a method to improve processes by creating value for customers while eliminating waste (muda). Originating from Toyota’s Production System (TPS), Lean is used in many industries and businesses of all sizes. The main goal is to make processes more efficient and deliver the most value to customers with the least waste. For over 50 years, Toyota has shown how effective Lean is at optimizing operations, proving its worth for both short-term improvements and long-term success.

The Definition of Lean

Lean is all about:

1. Creating value for customers.
2. Eliminating waste (muda, mura, and muri) in the process.
3. Getting it right the first time.

Lean aims to deliver higher quality products and services and increase customer satisfaction. This is achieved by reducing process cycle times, improving delivery times, reducing errors, and lowering inventory levels. In short, Lean is about achieving maximum added value with minimal effort and delivering the best quality to the customer.

1. Creating Value for the Customer

Value Added describes the value of a product or service from the customer’s point of view. In organisations, people often have their own ideas about what adds value for the customer. In Lean, “value for the customer” is crucial. This helps determine which activities to keep and which to eliminate.

Lean focuses on delivering as much value as possible to the customer and getting rid of activities that don’t add value (wastes). The customer decides the value of the process output. For an activity to add value, it must meet three criteria:

1. The customer must be willing to pay for the activity.
2. The activity must transform or change the product or service in a way that meets the customer’s specifications.
3. The activity must be done correctly the first time without mistakes.

This applies to all processes in every organisation. To add value, all actions, activities, processes, people, systems, tools, and other resources involved must meet these criteria.

In Lean, there are three types of value:

1. Value Added – value for the customer.
2. Business Non-Value Added – does not deliver direct value for the customer.
3. Non-Value Added – all wastes.

2. Identifying and Eliminating Waste in Lean (Muda, Mura, Muri)

Muda are activities that cost time or money without creating value for the customer. These activities, categorized as Type 2 Muda, are unnecessary and should be eliminated first. Taiichi Ohno identified seven forms of waste, and an eighth was later added (underutilized skills). These are:

1. Transport – Unnecessary movement of products or materials.
2. Inventory – Excess stock that doesn’t add value.
3. Motion – Unnecessary movement of people, like walking or lifting.
4. Waiting – Idle time when staff are not productive.
5. Overproduction – Producing more than needed, causing other wastes.
6. Overprocessing – Steps that don’t add value, like extra checks or unnecessary packaging.
7. Defects – Products or services not meeting customer specifications.
8. Skills – Not using the full potential of employees’ knowledge and skills.

Mura is about imbalance and variation in processes, leading to no flow. For example, high workload on Monday and low on Friday. Reducing Mura is key because:

1. Increasing Mura worsens production line performance.
2. Mura involves variations in supply, capacity, and time.

Processes often misalign, creating Mura. Extra supplies, capacity, and time are used to handle variation, leading to more Muda.

Muri refers to overburdening people, machines, or systems beyond their capacity, causing stress, burnout, absenteeism, and errors. In Lean:

1. Overburdening people leads to stress and absenteeism.
2. Overburdening machines causes errors and breakdowns.

Lean emphasizes respect for people, avoiding harmful or unnecessary repetitive tasks. Muri results in high staff turnover, machine breakdowns, and poor decisions. Using tools to reduce heavy workloads helps minimize pressure on people and systems.

3. Getting it Right the First Time

Lean focuses on delivering quality without needing rework. This is achieved through built-in quality practices and the “stop the line” principle. The goal is to ensure that every product or service meets quality standards the first time, preventing defects and errors before they occur.

The Five Principles of Lean

Within the Lean methodology, there are five key core values and steps, also known as the five principles of Lean: define the value, map the value stream, ensure the right flow, implement a pull system, and strive for perfection.

The five principles of Lean:

1. Define the Value: The customer determines the value of a product or service. The first step is to identify customer demand and expectations. Ask yourself: what does the customer want, and what are their requirements and needs concerning your products or services?
2. Map the Value Stream (the process): Create a value stream map that illustrates the workflow of process steps for a product or service. This map helps in identifying and eliminating waste (Muda), ultimately leading to reduced process delays and improved quality of the product or service.
3. Ensure the Right Flow: Create a smooth and continuous flow in production or service delivery by eliminating obstacles and delays. An optimized process ensures maximum process efficiency and reduces waste.
4. Implement a Pull System: Produce based on the actual demand of the customer, with the customer’s order acting as a ‘pull signal’. This ensures that overproduction is avoided and inventories remain limited.
5. Strive for Perfection: Continuously repeat and improve the first four steps until perfection is achieved: a process that delivers value to the customer and is free of waste. This process of continuous improvement, also known as Kaizen, ensures that the organization is constantly adapting and improving.

By following and applying these core values and steps within your organization, you can effectively implement the Lean method to reduce waste, optimize processes, and ultimately provide more value to your customers.

Dual Approaches to Implementing Lean

1. Long-term Approach: When an organization aims for a long-term Lean strategy, the objective is to instill a Continuous Improvement culture. Employees at all levels adopt a Lean mindset, which involves concentrating on customer value, eliminating wastes, and striving for perfection while performing tasks.
2. Short-term Approach: On the other side of the spectrum, Lean can tackle specific, immediate challenges within processes. By deploying Lean tools, you can rapidly identify problems and implement effective solutions.

Conclusion: Understanding Lean

Lean is more than just a set of tools; it is a philosophy aimed at enhancing organizational efficiency and increasing customer satisfaction. In the short term, Lean tools effectively address specific challenges. Over time, adopting a Lean mindset fosters an environment of continuous improvement.

Whether you aim to tackle immediate operational issues or invest in a sustainable future, Lean stands as a proven and dynamic approach. It offers a comprehensive set of principles and tools to guide your journey.

Lean can be seen in multiple ways, all based on core principles:

• A Philosophy: Emphasizes customer value and continuous improvement.
• A Method: Systematically identifies and eliminates waste in operations.
• A Management Philosophy: Integrates into management, promoting a culture of improvement.
• Tools and Techniques: Includes various tools like Six Sigma and 5S that fall under the Lean umbrella.

Learn More About Lean

Want to dive deeper into Lean? Check out our online Lean Black Belt course to master the principles and tools of Lean management.