3 Principles and 4 Rules to Remember that Will Guide Your Lean Journey

Lean manufacturing is the continuous improvement methodology of choice for companies around the world. It’s a people-oriented practice that focuses on reducing production lead times within your operations. These practices create a framework that emphasizes eliminating activities that do not add value for the customer, and focuses on reducing cycle, flow, and throughput times.

These Lean principles can be applied to any team, in any organization, in any industry. Practicing Lean effectively hinges on knowing how to apply Lean principles effectively in your business environment. The main thing to remember: Lean management principles focus teams on driving continuous improvement. When Lean is implemented effectively, teams and the processes they use to deliver value to customers grow stronger over time.

For me there are 3 key principles that guide the Lean Philosophy:

Lean Principle #1 – Make to Use (the ideal Target Condition, “True North”)

A Lean process emphasizes getting the right things to the right place at the right time in the right quantity.  These Lean ideals are a vision for your organization. They provide ‘True North’ direction toward which every member of your organization is commonly striving, and yet may never fully reach.

• 1x1

•        Process parts one at a time ( i.e. not batch processing )

• On Demand

•         Make the exact amount the customer ordered, when it’s ordered.

• Defect Free

•        Product conforms to customer’s specifications and expectations.

• No Cost

•         Look for simple low cost solutions.

• Immediate

•        The “system” should tell you immediately if there is problem.

• Safe

•        Physically AND emotionally

Lean Principle #2 – Eliminate Waste

Lean principles aim to identify the waste found in nearly every business and minimize or completely eliminate it, if possible. Using the acronym “DOWNTIME” reveals the 8 types of waste Lean Manufacturers target:

• Defects can lead to rework/salvage and scrap. It is arguably the most costly type of waste, especially if a defective product makes it to the customer.
• Overproduction is making more products than that which is ordered, potentially causing an inventory shortage and wasting labor hours that could be used elsewhere. Additionally, the manufacturer runs the risk of having obsolete inventory if the customer that generally uses the product decides not to order more.
• Waiting comes in several forms. The most obvious, perhaps, is a line shutdown while waiting for parts or equipment repair. Finally, there is in-process waiting that occurs when an employee has to wait for a machine to process before he or she can take the next step in the process.
• Not using people’s talents is a waste of their abilities, and it could hold a manufacturer back when it comes to innovation.
• Transportation happens throughout the manufacturing process, from the supply chain to material delivery and specific production areas.
• Inventory has five major categories: finished goods, sub-assembly, raw component, office supplies and Maintenance, Repair and Operations (MRO). Obsolete or overlooked inventory can build up in all of these areas, taking up valuable space.
• Motion includes bending, reaching, lifting and walking. Something as simple as sharing a tool between workstations can lead to a lot of wasted motion in retrieving it.
• Excess processing happens whenever time is spent on product features that do not impact part functionality. For example, painting a part that won’t be seen is non-essential and excessive, provided it still functions properly without paint.

Lean Principle #3 – People are the Cornerstone

Empowering employees is the ongoing process of providing the tools, training, resources, encouragement and motivation your workers need to perform at the optimum level. When you show an employee you trust them and give them timely information and the authority to find solutions, they will be able to solve problems and provide solutions more rapidly than someone without that empowerment.

• Engage all human resources toward the effort of reaching True North
• Provide information:  lack of knowledge is a limiter to waste elimination.
• Knowledge = Speed (Knowledge is the limiter to waste elimination)

Lean management derives from the Toyota Production System (TPS) where a set of rules provide a structured approach to improvement. They create structure in our systems. Without rules there would be in chaos. Lean rules provide the guidance needed to implement improvement, explaining the “why” behind lean tools and the Six Sigma methodology. Lean rules also help develop new solutions to problems. For everyone in an organization, these rules help structure activities, connect customers and suppliers, specify and simplify flow paths, and bring improvement through experimentation at the right level.

The Principles of the Toyota Production System can be summarized into four basic rules.

Rule 1: All work shall be highly specified as to content, sequence, timing, and outcome.
Specify in advance the exact Content, Sequence, Timing, and Outcome of work.

• Content (what is being done?)
• Sequence (in what order?)
• Timing (how long should it take?)
• Outcome (what clearly defined measurable results are expected?)

 Establish predictable outcomes for each process so shortfalls and over production are immediately apparent.

Rule 2: Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses.
Interaction between Humans, Materials, and Information should be Clear, Direct, and Binary. No ambiguity.

Create a workplace that is:
     Self-ordering
     Self-improving
     Self-regulating
     Self-explaining

What is supposed to happen, does happen, on time, every time.

Rule 3: The pathway for every product and service must be simple and direct.
Organize for uninterrupted flow with simple, direct paths for work flow. The pathway should not be subject to interpretation on a case-by-case basis. Build in self-diagnostics so when a path is not being followed, it should be obvious and immediately correctable without too much time passing or outside intervention required.

Rule 4: Continuously Improve
Develop leaders who can apply the scientific method to improve anything. Allow improvement to come from the source by those doing the work - as close to the problem as possible. Respond directly to any problem that arises with clear helping/coaching chains. Whenever possible, start as an experiment supported by a coach.

When it comes to using Lean principles in your organization, let these Lean management principles guide you. Embrace the Lean mindset. Consider your options carefully – even if it means making organizational changes to fully support your initiatives. This will lay the foundation for a successful Lean experience.

Lean 101: An Introduction to Lean Manufacturing

Source: Smederevac / iStock / Getty Images Plus via Getty Images

I recently authored the below article on Lean 101: An Introduction to Lean Manufacturing for Quality Magazine and wanted to share with A Lean Journey audience. Creating a good foundation of Lean starts with learning the fundamentals. 

The core idea of lean is to maximize the customer value by minimizing the waste within value chain. This thinking is comprised of five fundamental principles that create a framework for creating an efficient organization. By evaluating our processes for sources of waste and eliminating these inefficiencies we promote productivity and growth. This optimization of the value chain is done through rules that structure activities, connect customers and suppliers, and facilitate flow of materials and information.

To learn more about the basics of the lean thinking check out the following article:

https://www.qualitymag.com/articles/96687-lean-101-an-introduction-to-lean-manufacturing

The Foundation and Principles of Lean Thinking

Though there is no single definition of Lean thinking, these concepts will help any organization get started with Lean thinking. Lean thinking offers the agility to continuously deliver value in an ever-changing business environment. Implementing Lean thinking will guide your organization toward a stronger, more sustainable future.

3 Foundations of Lean Thinking

1) Purpose

Since the goal of Lean management is to deliver value to the customer, everyone needs a clear understanding of what that value is and how it is measured.

Once a value is defined, everyone can begin working together with the purpose of delivering that value as efficiently as possible. Uniting teams with a shared and clearly defined purpose is integral to leading a Lean organization.

2) Process

Lean methods focus tirelessly on process improvement to remove waste and create value.

Lean leaders believe that flawed processes reduce value and detract from their purpose, so they empower everyone to identify and work to correct problems and improve processes.

3) People

Lean organizations are not led from the top down. Leaders strive to create the conditions for employees to be their most successful and efficient, and actively observe, ask questions, and elicit input toward that goal.

They foster engagement and mentor employees toward continuous improvement. Lean companies are holistic, and success is the result of goals, attitudes, behaviors, and processes that are enacted by everyone, every day.

The Guiding Principles of Lean Leadership

The five Lean principles provide a framework for creating an efficient and effective organization. Lean allows managers to discover inefficiencies in their organization and deliver better value to customers. The principles encourage creating better flow in work processes and developing a continuous improvement culture. By practicing all 5 principles, an organization can remain competitive, increase the value delivered to the customers, decrease the cost of doing business, and increase their profitability.

The 5 principles of a Lean system guide the daily activities of every Lean leader. Those principles are:

1) Identify value

Value is defined by what the customer needs from a product and informed by their desires and expectations.

In an internal system, the “customer” can be another team or department that determines their requirements for value.

2) Map the value stream

Determine all the processes involved in delivering value to the customer from beginning to end.

At a high-level, mapping the value stream can be detailing the path of materials as they move through the design and are delivered in a product, identifying departments and processes.

Another way to look at the value stream is to map the flow of information through a department or organization. Mapping gives greater insight and understanding of business operations and is the first step in identifying waste.

3) Create flow

Work to move products, processes, or information through the value stream with no interruptions, delays, or bottlenecks.

Flow makes everything move in a tight sequence with high efficiency and little waste.

4) Establish pull

With a smooth flow, products can be delivered to the customer as needed. Using a “just in time” delivery model reduces excess inventory, over- or under-production, or unmet demand.

The benefit of pull is that everything is produced highly efficiently, exactly when needed, in the exact quantities required.

5) Seek perfection

Even with a very good process, further evaluation of the value stream always reveals waste or excess that could be eliminated, and flow can always be refined.

Lean systems are engaged in continuous process improvement, iterating these 5 principles over and over in the pursuit of perfection.

 

Four Lean Rules-in-Use

Rules create structure in our systems. Without rules there would be in chaos. Lean rules provide the guidance needed to implement improvement, explaining the “why” behind lean tools and the Six Sigma methodology. Lean rules also help develop new solutions to problems. For everyone in an organization, these rules help structure activities, connect customers and suppliers, specify and simplify flow paths, and bring improvement through experimentation at the right level.

The Principles of the Toyota Production System can be summarized into four basic rules.

Rule 1: “All work shall be highly specified as to content, sequence, timing, and outcome.

Thanks to specification in terms of sequence of steps, timing, outcome and content, people are able to address any deviations. This rule is a necessary step for people to know implicitly how to do their work.

Rule 2: Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses.

The path of communication must be described, shared, known and applied. Each collaborator so knows implicitly how to connect with each other.

Rule 3: The pathway for every product and service must be simple and direct.

Services don’t flow to the next available person—but to a “specific” person

Rule 4: Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest level in the organization.

Frontline workers make improvements to their own jobs and their supervisors provide direction and assistance. The purpose of the supervisor is to act on the process to continuously improve the performance of the process.

The impact of those rules on the System is important – “By making people capable of and responsible for doing and improving their own work, by standardizing connections between individual customers and suppliers, and by pushing the resolution of connection and flow problems to the lowest possible level, the rules create an organization with a nested modular structure”.

Toyota developed this set of Principles, Rules-in-Use, as the building blocks of a production system. They allow organizations to gain maximum efficiency so everyone can contribute at or near his or her potential. When the parts (activities, connections, and pathways) come together the whole is much, much greater than the sum of the parts.

Lean: Doing More to Get More

A common definition of Lean manufacturing I hear often is paraphrased as “doing more with less”. Honestly, it is my least favorite. I don’t like it because labels like this rarely capture the essence of the approach and minimize Lean. It’s origins come from summarizing Toyota’s results where they we able to do more with less resources.

It is too easy to link this phrase with firing people. Unfortunately, there are too many people who launch Lean with the only objective of personnel reduction. Lean manufacturing is not a head-count reduction system; instead Lean manufacturers understand employees on the shop floor know their work best. Lean manufacturers don’t want employees to work harder, or faster – they want employees to work more efficiently. Lean manufacturing focuses on improving employees, providing more value to the workforce, and, overall, establishing a dependable and stable workforce.

Lean is about doing more to get more, knowing that reducing waste is a growth strategy, a way to help the company be more competitive. Lean is about value — a bigger and more inclusive concept than mere waste. Lean is a systematic way to learn to see the inefficiencies in your processes and to solve these opportunities in such a way to grow the business profitably by adding value the customer will pay for. If you want to be a successful company you will learn to empower and engage the entire organization to focus improvement on value-added work from the customer’s perspective.

Lean is a relentless, continuous, never ending focus on waste reduction. Lean is all about finding better ways to do things, so that they require less effort, less time and fewer resources. It is not about cost reduction – penny-pinching, cutting investment, taking out people – it is about finding better ways to get work done. Traditional cost cutting occurs in silos, without regard to who is affected upstream and downstream. These impacts cannot just negate the initial cost reduction from the unilateral approach, but exceed them. Lean examines each process, internal and external, finding and removing the waste, and reducing cost while maintaining the health of all constituents.

Lean manufacturing means creating more value for customers with fewer resources while we deliver what the customer want, with the quality expected and when they need it.  Value is whatever the customers are willing to pay for.  Less resources means:  less time, less human effort, less machinery, less materials, less space.  

Lean is not easy. It's not easy to understand. It's not easy to implement. And it's especially not easy to sustain. But anyone who has embarked on a so-called lean journey already knows this. Lean, in fact, is hard work and it's a challenge to keep it going.

A label like "doing more with less" just doesn't do justice to Lean and all it is.

Have You Seen Tim Woods Today?

Employees want to do their best, sometimes the system or process does not position them to be successful. At times, it can be difficult for employees to see the forest for the trees. Sometimes they cannot see past the mounds of work at hand. This is why Lean Thinking shifts the viewpoint from a worker-centric vantage to the eyes of the customer. The customer’s perspective enables us to understand not only where we might be standing in the forest but also how to navigate through it.

Lean thinkers focus on waste, which we call muda. To make processes more efficient and move closer to the value stream (those steps that take us from beginning to end of a process and which add value), we use lean thinking approaches to remove muda from processes.

There is a handy acronym for knowing the 8 types of waste: “Tim Woods”

Transportation
Transporting items or information that is not required to perform the process from one location to another. While the product is moving, no value is added to it.

Inventory
Inventory and information queued-up between people and processes that are sitting idle not being processed.

Motion
Excess movement by people or equipment only consumes time and resources without producing value. People, information or equipment making unnecessary motion due to workspace layout, ergonomic issues or searching for misplaced items.

Waiting
Idle time created when material, information, people, or equipment is not ready. No value is added while people wait for product to process or product waits for people or machines.

Over-Processing
Performing any activity that is not necessary to produce a functioning product or service. Doing more than what is necessary to generate satisfactory value as defined by the customer.

Overproduction
Waste from producing product that is not currently needed or product that is not needed at all.

Defects
Products or services that are out of specification that require resources to correct. Defects are the result of executed processes that did not produce value.

Skills
The waste of underutilized intelligence and intellect commonly referred to as behavioral waste. When employees that are not effectively engaged in the process.

We encounter muda every day. It is all around us and present in everything we do. Lean thinkers strive to reach perfection—that state where all waste has been removed from a process and only value remains—but so far no one has achieved the desired state. It helps to remember, therefore, the eight types of muda and watch for them in what you do each day. You don’t have to engage in a kaizen event to get rid of all waste, you simply have to identify it and stop doing it.

Starting a Lean journey can be easy, but mastering Lean can take a lifetime. In a Lean world, the only thing worse than finding waste is not taking the steps to get rid of it.

Not seeing is not knowing. The following steps can help you see Tim Woods.

Step 1: Scan the forest from the mountaintop. View the entire workplace from a single standpoint.
Step 2: Observer the woods. Look at the entrance and exit points of each line or cell.
Step 3: Observe the groves. Study machines, people, and materials at each process.
Step 4: Observe the trees. Look at machine motions and people motions.

As you work through the day, ask yourself whether what you are doing fits into TIM WOODS. If it does, then ask yourself if there is way to avoid doing the wasteful step and if you can, eliminate that step. Have you seen Tim Woods today?

Lean is Not a Hunt for Waste it is a Journey to Add Value

Courtesy: http://www.allaboutlean.com/muda/

Undoubtedly, you have seen the narrow minded definition of Lean as a waste elimination tool. If you search the internet for a definition of Lean you will find many different suggestions, ranging from a few sentences to others that run many pages. Most miss the main point of Lean; they on the whole define lean as being a process of waste elimination. Unfortunately, this misses some of the major and most important parts of Lean.

It is difficult to define Lean in just a few sentences as Lean encompasses so much. To me it is:

Lean is all about respecting people while eliminating Muri (overburdening), Mura (unevenness), and Muda (non value added activity) in all business processes. It is a philosophy which embodies a culture of continuous improvement based on setting standards aimed at providing value through participation of all employees.

Lean Thinking is comprised of five fundamental principles:

1) Specify Value – End-use customer view
2) Indentify Value Stream – Activities that create value
3) Flow – Make value flow
4) Pull – Respond to customer demand
5) Perfection – Zero waste

Lean is Customer First, what is value in the eyes of the customer? What features and services does the customer want? When do they want them and what price do they want to pay? Without this information how can you design your ideal system?

This value needs to be made to flow from raw materials through to the consumer, this value stream needs to produce product at the pull of the customer. This is Just In Time manufacturing (JIT), producing what the customer wants when they want it!

Once you have the customer defined value flowing at the pull of the customer you strive for perfection, improving everything that you can about the product and process.

This is done by all within your organization, Lean values respect for people, involves everyone in the company to help meet customer value.

In some ways is could be said that Lean is more about preventing waste. By implementing the Lean principles above you identify those actions that add value and make them flow at the pull of the customer, this prevents the waste from occurring.

Lean follows a set of rules to provide value what I refer to as “Lean Rules-in-Use”:

1) Activity Rule – Specify all work to content, sequence, timing, and outcome.
2) Connection Rule – Customer-supplier connections must be direct & unambiguous.
3) Pathway Rule – Pathways for product/service must be simple & direct.
4) Improvement Rule – Improvements are made using scientific method (PDCA) at place of activity (Gemba) under the guidance of a teacher (Sensei)

If you follow this process you will not be going through a process of waste elimination and reduction but a more important process of waste prevention! So if you want to implement Lean manufacturing you must not just focus internally to impress your shareholders and make short term gains, but focus on the customer to make sustainable changes that will help your company flourish in today's world, not just struggle to survive.

If you only focus on an internally focused drive to eliminate waste, a process generally of cost reduction and labor elimination to reduce costs and increase profits, you forget the first and most important part of lean; what is value to the customer? The selfish drive to reduce costs wrongly assumes value on the part of the customer and the organization tends to become not Lean but anorexic! They remove the ability to be able to react to customer changes, to adapt when there are supplier and internal problems. Because of this companies that "have done lean" quickly revert to the way they were before the improvements, bringing back old inefficient processes to cover over other issues and rehiring the labor that they removed, Lean being put on the discard pile of management fads.

Lean Manufacturing is a business improvement philosophy that has developed over many years. Whilst Lean has a huge toolbox of tools and techniques you cannot define Lean from those tools. Lean is more than the sum of all of those tools, applying tools in isolation will not necessarily give you the benefits that you would expect and want to see. Lean is a method to better focus your business on the true needs of the customer to help you prevent waste from being built into your system.

Lean is not a hunt for waste it is a journey to add value.

The Lean Path Poem

The other day while thinking of Lean and what it really means to be on the path or journey to continuous improvement I wrote the following poem:

The Lean Path

With open mind, I cultivate learning

With open eyes, I go see the opportunity

With open heart, I display humility

With passion, improve the world.

I believe this poem captures well my thoughts on Lean in simple way. Let me elaborate.

In my opinion being open minded is one of the most important traits for individuals to have in a Lean environment.  Without an open mind problem solving and learning will be more difficult and therefore delay your pursuit of excellence.

An open mind leads to new possibilities. New possibilities lead to new thoughts and experiences. New thoughts and experiences lead to growth. Therefore an open mind is important to our personal growth.

Being open-minded also helps us with problem solving.  First it helps us look at more than one way to approach a problem; then we find more expansive, ways of solving it. When we give ourselves more options, better solutions are undoubtedly more available to us.  Keeping an open mind means that you are open to all possibilities.

Learning begins with humility.  The more you strive for Lean, the more you realize how little you know, and how much there is yet to learn.  A sure sign of impending failure is a manager who claims to "know it all" or says "we have tried that…"

Passion is the driving force that enables people to attain far more than they ever imagined. This enthusiasm is literally the fuel that propels you toward success. Passion allows you to think, feel, focus, act, attract and create the events conditions and circumstances that you most desire to see you through difficult times. Passion is what propels you to begin taking the necessary action steps that will allow you to begin changing your current situation.

Lean is a journey that never ends. There will always be a gap between where you are (current state) and where you would like to be (True North). Since there will always be a gap, there will always be an opportunity to improve. The road to continual improvement can be a rocky one with many ups and downs. Failure will occur. Its ok, the purpose is learning, and we learn through experimentation. Trying new approaches, exploring new methods and testing new ideas for improving the various processes is exercise for the mind.

Toyota has taught us that Lean goes beyond just making cars. Our goal should go farther than making our work easier and improving our businesses. We can improve the world. Many businesses and leaders have made their mark through Lean thinking for generations to come.

I have shared my Lean poem but what poem would you write to share the essence of Lean with others?