Lean thinking – 5 Steps to using Lean thinking

“Lean Thinking” is a model focused on eliminating waste and inefficiency, defined as anything unnecessary for producing a product or service.

Define

Lean thinking in English is Lean Thinking.

Lean thinking also known as Lean Production or the Toyota Production System.

Lean thinkingis a model focused on eliminating waste and inefficiency, defined as anything unnecessary for producing a product or service.

In Lean Thinking, inventory is seen as the root of all problems. Large inventories obscure the real issues of the organization, hindering flexibility and efficiency. If inventory is reduced systematically, the real problems become apparent and can be addressed properly.

Lean Thinking requires companies to continuously identify and eliminate sources of waste using the seven “no’s”:

1. No defects;
2. Not much (excessive) batch volume;
3. No setup;
4. No damage;
5. No transportation waste;
6. No downtime;
7. No fluctuations.

According to these seven “no’s”, Lean Thinking advocates for production flow focusing on just-in-time delivery.

Methods of applying Lean Thinking:

There are five essential steps in Lean Thinking:

1. Identify value-creating factors (identify value and discover customer needs)

Evaluating value-creating factors must be done from both internal and external customer perspectives. Value is expressed in how a product or service meets customer needs at a certain price point and at a certain time.

2. Identify the value stream (sequence of actions that add value to the product or service)

Activities contributing to value are identified with the support of a value stream map, where all activities are assessed based on whether they add value to the product or service. Ultimately, activities that do not add value are eliminated when possible.

3. Create flow of activities (ensure production in flow: establish product and service flows through processes)

Improvement efforts are aimed at creating activities within the value stream. Flow is the continuous movement of a product or service through the system to the customer. The main constraints of flow are working in sequence, batch processing, and transportation.

4. Let the customer pull the product or service through the process (pull production control)

Synchronize production with the actual needs of the customer. Products must be pulled from the system based on the actual needs of the customer. The value stream must be capable of responding to the delivery of products and services when the customer needs them, not before or after.

5. Continuously optimize the system

Seek perfection by continuously improving processes, eliminating waste, and implementing effective management activities.

 

(Reference material: “Classic Management Models,” National Economics University Publishing House)