Much Like Six Sigma, Lean is Focused On Maxing Customer Value and Minimizing Waste
What is Lean?
A systematic method for the elimination of waste within a manufacturing system.
Lean takes into account waste created through overburden.
Lean takes into account waste created through unevenness in workloads.
Lean reduces everything that does not add value.
Value is any action or process that a customer would be willing to pay for.
STEPS to LEAN
First, think in terms of usable customer value, not long lists of features functions and requirements.
Second, use the concept of the value-stream to both critique the development life-cycle and to identify the stream of usable value that will deliver the project vision.
Third, eliminate waste by not working on those 80% of functions that are never used
Fourth, “pull” is about working right-to-left, only queuing up that work necessary to deliver a particular chunk of value and nothing else.
Fifth, “pursue perfection”; keep working on mini-projects that lead to fixing the the overall problem
Understanding Value
Value directly relates to the amount a customer is willing to pay for a product or service.
Map the Value Stream
The Value Stream is the complete sequence of activities involved in delivering an end-product with an agreed upon value.
Mapping the value stream refers to visualization techniques (ex. Kanban, flowcharts, spaghetti diagrams).
This step allows business managers and strategists to identify parts of the value stream where waste occurs and optimize the value stream to reduce waste.
Eliminating Waste
Ensure that the value stream flows.
The ultimate goal of value stream mapping is the preservation and optimization of flow.
Flow is the rate and "evenness" with which items and information proceed through the value stream.
Excess, early, or unexpected inventory creates waste.
Synchronization is the key to optimizing flow.
Identifying and eliminating work that adds no value improves flow.
Employing a "Pull" Approach
A "pull" approach allows customer demand to determine production.
In the pull approach nothing is created unless a customer asks for it.
The pull approach eliminates waste caused by inventory costs and overwork.
A pull approach is difficult to implement effectively because it heavily relies an accurate and effective assessment of the market.
A pull approach requires highly effective communication throughout the value stream.
Pursue Perfection
Ideal Lean management is an ongoing and incremental process.
The process must be continually optimized.
Defective processes are consistently improved or replaced.
TYPES OF WASTE
Overproduction - Surplus production and large inventories or creating a product before establishing a demand for it; excess production.
Inventory - The storage of product or information storing products or information that does not add value for the customers but ocsts the company; surplus materials.
Waiting - The waste of people waiting for things like information or material or it can be product or information waiting for the next step in the process.
Transportation - The potential costs of transportation beyond time and money such as damage, physical exertion, and unnecessary travel.
Over Processing - Doing work that is not needed.
Motion - The excess physical movement required to perform tasks economically.
Defects - Products that are defective or information that is inaccurate or missing.
Under utilizing employees - This is when companies do not involve all of their employees in continuous improvement and miss out on their creativity and strength.
-- > Real life examples of Lean Waste: https://blog.kainexus.com/improvement-disciplines/lean/7-wastes-of-lean/real-life-examples
-- > Every day application of Lean principles: https://planet-lean.com/lean-approach-personal-life/
-- > Business application of Lean principles: https://leankit.com/learn/lean/examples-of-lean-manufacturing-in-practice/
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