What is Lean? Principles of Lean Production

Do you want to know “What is Lean ?”

Do you want to increase your output of 30%
and at the same time to reduce your inventory of 25%?

Before you do anything else, see this video!

Now, I have a good and bad news.

The bad news is that there is not one single definition.

The good news is that in this super guide you will find a lot of definitions and you will find what will fit better for your needs.

Now:

What exactly means Lean?

Firstly,

continue to read this guide, and you will answer to the question in a manner that will surprise your boss, your classroom, and your colleagues.

Ready?

Go!

Why Lean? It is proven to work.

One note before starting!

Do you want your customer, the company, and the employee satisfied?

Surely YES! YES! YES!

In this case, you do not have other option that Lean Production.

Truly,

I know what are you thinking …

It is not possible.

Look:

I have collected for you some videos, and this will help you to understand
what is Lean Production with examples. See now!

Then,

you could ask yourself which companies use lean production.

Well,

in 2014 the list of the top 5 was the following:

1. Toyota
2. Ford
3. John Deree
4. Parker Hannifin
5. Textron

But believe me that the list is very long and increasing because
lean production for competitive advantage is a MUST!

A bit of history of the Lean Terms Origin

First of all,

it is important to know when the terminology starts to know what is Lean Production definition.

1975 – Toyota Production System
1988 – Lean Production, Lean Manufacturing
1998 – Lean Six Sigma
Today – Operational Excellence, The Lean Startup

In brief,

these Lean Terms were coined by scientific articles and now by the usage on the web.

All this said,

let’s go on …

Lean Thinking in not only for Manufacturing

In the first place, I would cite one of the fathers of the Lean.

In addition,

I would add that the Lean Thinking now find application in every industry and other aspects of ordinary life.

See this 6 minutes video that shows Lean concepts applied to NGO that helps people.

Look:

You have now the first answer to the question:

Q: What is Lean?
A: Lean is a mindset rather than a set of tool.

Now,

where did lean production originate?

Read below and you will discover!

Lean Definition: The American Side

You have to know that the story of the Lean Production is full of fusions between American and Japanese guru that merged experiences and theories and they are equally important.

Then,

there are many Lean Centre, Institutes, and Universities that try to find the best definition of Lean and from the American side, and I have my favorite.

At the present time, the winner is … Lean Enterprise Institute.

" The core idea is to maximize customer value while minimizing waste.

Simply, lean means creating more value for customers with fewer resources."

To summarize,

The second answer about what is lean could be:

Q: What is Lean?
A: If you look at the American school you can say that Lean is to do more with less.

Additionally,

the Lean Enterprise Institute propose to follow a 5 step process to become a Lean Enterprise.

Below there is the 5 step circle.

Toyota Production System (LEAN TPS) – The Japanise side of Lean

It is commonly accepted that TPS was founded by Taiichi Ohno.

He wrote a book that is the most inspiring I have read on Lean Management, and I would like to quote his definition (even if he did not use the word Lean at that time).

" The Basic Idea of the Toyota System is to eliminate wastes.
The two pillars to reach the waste elimination are the "just in time" and the "jidoka" (Autonomation)."

Hence,

we have a third answer to the question.

Q: What is Lean?
A: If you look at the Japanese school you can say that Lean is to eliminate wastes from the processes by stability, just in time and jidoka.

Look:

The Japanese Lean side propose to build the Lean Enterprise by “building a house.”

Then, the concept can be summarized in an image of the House of Toyota.

If you do not know this picture very well, as a result, you will be labeled as “weak” in Lean.

The Toyota house should answer to a question I often have to answer:

What is lean production and JIT.

They are not 2 separate things but to implement Lean Production you have to implement the JIT.

Now,

particularly relevant is the upcoming movement in Lean.

Read the following paragraph.

The Lean Startup: Lean definition of the near future.

The World is moving faster and faster,

in addition,

windows of opportunities open and close very rapidly.

Of course, the industries has to catch these opportunities with the same speed of the actual market.

Today, do you know how fast internet is?

And your company?

Look:

Today this is the situation!

Hence,

Lean is changing too and a movement name “The Lean Startup” was founded by a startupper named Eric Ries.

The Lean Startup method ask to measure people’s productivity in a different way expressly with the objective to understand the right product to develop.

In conclusion,

companies have to create the product that customers want and are willing to pay.

Then,

we found the fourth definition.

Q: “What is Lean?”
A: The goal of the Lean Startup is to understand the right product to develop. The product to produce is what the customer want to pay. The faster you are in this process the better your company will go.

In addition,

The Lean Startup propose another cycle to implement the Lean concept.

The sequence is named:

• Build
• Measure
• Learn

Probably could help you a different point of view to understand.

Continue reading …

How to understand what Lean in NOT!

As opposite, you can try a different approach
by looking to Lean understanding what is NOT Lean.

1) Lean is not easy
2) Lean is not devoid of technology
3) Lean is not only for manufacturing
4) Lean is not only for waste reduction
5) Lean is not only for the frontline
6) Lean is not a cost reduction program
7) Lean is not a headcount cuts
8) Lean is not about zero inventory
9) Lean is not rigid
10) Lean is not costless
11) Lean is not magic
12) Lean is not mistake-less
13) Lean is not a short-term program
14) Lean is not only for the automotive industry

In summary,

Based on what lean is not you could answer:

Q: What is Lean?
A: Lean is an organizational company transformation that aims to respect people and engage them in continuous improvement.

Lean Production, Lean Manufacturing or TPS (Toyota Production System)?

Firstly,

I want you to think the difference between the terms in the title.

Secondly,

is lean production like lean manufacturing?

You might be wondering:

Can I use them indifferently?

Well,

If you use it casually, you could appear not very well prepared on the topic.

Hence a bit of history could help you.

For further details,

you can read this post of Allaboutlean.com to have another perspective on what is lean.

What is Lean? The right answer they expect.

Firstly, if you want to give an answer to the question what is lean, you will find some difficulties.

Today, I will reveal you the answer I typically use based on the context to maximize the impact and the results.

Scenario 1: Job Interview

Firstly,

imagine you during a job interview as Lean Expert.
At a certain point, they ask: “What is Lean?”

What they expect:

Mainly, they want to know your experience and how you will be able to deploy the Lean Strategy in the company. Hence, the results in money!

The answer I usually use is:

Firstly I have to say that Lean approach works and it is proven not only for Toyota but works for other firms too. – (i.e. Boeing, ABB, Philips, etc.)

I usually organize the Lean Strategy with a fusion of Japanese Lean and American Lean.

The first is more principle and people driven, while the second is more tool driven.

To sum up,

the final goal of this Lean Strategy is to teach the organization to minimize the waste in the processes with the effect of continuously reducing costs with benefits for the customer, the company, and the employee.

Finally, imagine how powerful is to have everyday the employees thinking: “How can I do better?”

In summary,

with this answer, you show that you know the Lean theory, you can involve people and get results.

Scenario 2: My Boss

Imagine you your boss is curious about Lean or he has to start with a project. At a certain point, he asks you: “What is Lean?”

What he expects:

How this can simplify his life and lead him to results.

The answer I usually use is:

Lean is to do more with less! After the complete implementation, you will have what you need, when you need and in the quantity you need. Hence, you will satisfy your customer 100% on time.

In summary,

with this answer, you will cover just a part of the story, and usually, you will be able to have commitment.

Scenario 3: Executive Presentation

Visualize you to promote Lean at an executive presentation.
At a certain point, they ask: “What is Lean?”

What they expect:

To have a magical tool to save money and have great results.

The answer I usually use is:

Firstly, Lean is proven to work.

Then, this methodology does not work only Toyota but others prominent firms are getting double digit improvement. It is based on doing more with less with a continuous improvement in reducing waste, save costs and protect profits.

In summary,
you will show them results.

Scenario 4: Shopfloor

Now you are at the coffee machine with people of the shopfloor.
They ask you: “What is Lean?”

The answer I usually use is:

The goal of the Lean is to make the life easier for everybody: Employee, Company, and Customer. Do you like to waste time? I think no! Well, the Lean approach will help you to avoid unuseful stress and work smarter not harder.

In summary,
Once you have given this answer paired with a good 5S methodology implementation you will have the door open for the Lean Journey.

All the application of the Lean Principles

Today, Lean Principles are spreading among different industries and now I will try to explain in different pages the various applications:

1) What is Lean Manufacturing

2) What is Lean Production

3) What is Lean Office

4) What is Lean Construction

5) What is Lean Healthcare

6) What is Lean Management

7) What is Lean Enterprise

8) What is Lean TPS

9) What is Lean Six Sigma

10) What is Lean Engineering

Mostly, the principles for all these forms of lean are equal, but the tools to use could be tailored depending on the company.

My Lean Implementation Plan – Step by Step

Today, I would like to reveal you my step by step process.

It is proven … really works.

Step #1: What is the problem?

Firstly, ask yourself: “What is the problem and how can I prove that?”

Secondly, procure yourself data to sustain your statement.

Finally, you have to do verify at the shopfloor if the problem is real or only in the PC!

Step #2: Who are your main customers

Firstly, ask the company who are the customers

Secondly, understand who are the major clients. Who spends the most?

Finally, try to group the products of the most important customers in products family.

Step #3: What the customers want (or why they are complaining)

Firstly, ask the customer what he wants

Secondly, procure yourself data to support your assumptions

Finally, select the right tools to solve the problem. (i.e. Delay? I will use Value Stream Mapping)

Step #4: How fast the customers buy (Takt Time)

Firstly, define the available time in the company.

Secondly, share with all the members, print and have in front of you.

Finally, divide the available time for the customer demand and you have the Takt Time.

Step #5: Where are bottlenecks? (Yamazumi Chart and VSM)

Firstly, do a simple Yamazumi Chart to see constraints and opportunities.

Secondly, carry out a Value Stream Map (VSM) at the shopfloor to validate numbers and catch other opportunities.

Finally, see the AS IS condition and project the TO BE status.

Step #6: Place a board at the bottleneck

Firstly, it is time now to action. Place a big board at the bottleneck you found at step 5.

Secondly, set a daily meeting to speak about metrics and projects to solve problems.

Finally, be methodic in the meeting and do not miss any.

Step #7: Involve the people in the KAIZEN mood.

Firstly, give people the opportunity to speak at the boards.

Secondly, give them accountability for some KAIZEN project.

Finally, celebrate successes in some way (i.e. Pizza, Cakes, Shirts, Money …)

Step #8: Build the foundation of the Toyota’s House

Firstly, remember the house of Toyota. The foundation is the stability.

Secondly, create a stable material flow. Never say: “I do not have the material”

Finally, put this goal on the board and track it for a while.

Step #9: Build the first pillar – Just in Time

Firstly, check if the point 8 is reached.

Secondly, ask the team about the materials: “What you need? When do you need? How much do you need?”

Finally, set a Visual Management and a Kanban System to create an information flow.

Step #10: Build the second pillar – Jidoka

Firstly, ask yourself: “Are we ready for jidoka?”

Secondly, set a service level for intervention. In other words how long it takes today to fix a problem.

Finally, start testing where you have the board and improve the process.

Step #11: Track the results and have the “buy in”

Firstly, ask yourself: “I will invest in something that gives me more money back.”

Secondly, prepare a report on the expenses done and the benefits obtained. I am sure you will be positive.

Finally, prepare a meeting to show them what the team was able to get with Lean. Get the “buy in” from the leadership and start again with the next bottleneck or other products family.

Conclusion

In summary,

to define what is Lean is not a unique definition.

Today the terminology is changing, and Operational Excellence is growing, but I would like to underline that basic principles of Lean Production are always the starting point.

Hence, my suggestion is to be prepared on Lean Topics, Lean Tools and Lean History that is equally important.

Now,

I want to hear your voice!

Then, leave a comment now!