Lean Principles | Implementation | Examples | PDF

What is the Lean Principle?

→ Lean principles are guidelines to improve efficiency and reduce waste in manufacturing or system processes.

→ Lean principles were originated by the Toyota Production System (TPS) in Japan.

⏩These principles are widely used in different sectors such as:

• Manufacturing
• Healthcare
• Software Development
• Other industries

→ By implementing lean principles we can maximize value for our customers.

→ Also, we can reduce the resource usage and waste.

Table of Contents:

• What is the Lean Principle?
• Why to Implement Lean Principles?
• Five Lean Principles
• Identify Value
• Map Value Stream
• Create Flow
• Establish Pull
• Seek Perfection
• How to Prepare a Team for Lean Implementation?
• How to Apply Lean Principles?
• Benefits
• Conclusion

Why to Implement Lean Principles?

→ Implementing lean principles is beneficial for any business.

→ We can improve efficiency and reduce the cost.

→ Also we can enhance business performance.

Key Reasons for Lean Implementation are:

• Waste Reduction
• Improved Efficiency
• Higher Product or Service Quality
• Employee Empowerment and Engagement
• Cost Savings
• Faster Delivery
• Enhanced Flexibility
• Sustainability
• Better Customer Focus
• Continuous Improvement

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Five Lean Principles

→ There are five key principles of lean manufacturing.

→ With the help of these principles, businesses can get competitive advantages.

⏩The Five Lean Principles are:

1. Identify Value
2. Map Value Stream
3. Create Flow
4. Establish Pull
5. Seek Perfection

01. Identify Value:

→ The Lean approach begins with a detailed understanding of the value assigned to products or services by the customer.

→ Identify what creates value for customers.

→ That means customers are willing to pay for their required products, services, and features.

→ This involves understanding the customer’s needs and ensuring that products or services fulfill the customer's requirements.

→ The manufacturer is the only person who creates value in the product but it is defined by the customer.

→ Based on the evaluation business needs to create a target price for the product and service.

→ The organization focuses on eliminating waste so that it can meet the customer's expectations.

→ As a business, we must have to give importance to our customer’s needs for a specific product or service.

→ So we can easily meet the customer's required price and we can have a business.

⏩Key Requirements to be defined are:

→ What is the timeline for manufacturing and delivery?

→ What is the price point?

→ What are other important requirements or expectations that must be met?

02. Map Value Stream:

→ Map Value Stream is related to analyzing and improving the flow of information in the case of the service provider.

→ And it refers to the flow of material in the case of a manufacturer of a product.

→ In this method, we have to identify the wastes related to material or information flow and eliminate them from the system.

→ The value stream includes the product's entire lifecycle, from raw materials to disposal of the final product.

→ As a business, we have to analyze each stage of the process.

→ Also we need to identify all non-value-added activities and eliminate them from the system.

→ The Value stream is the product’s entire life cycle from the raw materials to the customer’s use and also disposal of the product.

→ To eliminate waste, there must be an accurate and complete understanding of the operational processes.

→ Processes need to be optimized for value-added process steps.

→ Non-vale-added process steps need to be eliminated.

→ VSM Study is a simple but effective tool for the business.

→ The idea is to draw, on one page, a "map" of the flow of material/product through the process.

→ The goal is to identify every step that does not create value and then find ways to eliminate those wasteful steps.

→ Value Stream Mapping is sometimes referred to as process re-engineering.

→ Ultimately this exercise also results in a better understanding of the entire business operation.

03. Create Flow:

→ By eliminating wastes and non-value-added activity we can improve our lead time for our processes.

→ So we can get a smooth process flow.

→ Lean Production depends on preventing interruptions in the production process.

→ Understanding flow is essential to the elimination of Manufacturing Waste.

→ Create flow is about creating a value chain with no interruption in the production process.

→ After the waste has been removed from the process, the next step is to be sure the remaining steps flow smoothly with no interruptions, delays, or bottlenecks.

→ Make the worth-creating steps occur in a tight sequence so that the product or service will flow smoothly toward the customer.

→ However, studies show that this will also lead to huge gains in productivity and efficiency.

04. Establish Pull:

→ Establish pull means if we have a new order in the pipeline then we have to produce the products.

→ This is a pull system instead of a push system.

→ With a push system, we manufacture the products based on the forecast and we have to maintain more inventory and we have to bear more cost for that.

→ However, forecasts are commonly imperfect, which leads to too much inventory and which is not good for the organization.

→ The pull system eliminates unnecessary inventory and work-in-process inventory.

→ In the traditional manufacturing approach, we need to push products based on a forecast and schedule.

→ While in the pull approach, nothing is produced until the customer orders it.

→ The Pull system makes it easier to deliver products as needed, as in “just in time” manufacturing or delivery.

→ This means the customer can "pull" the product from the manufacturer as needed.

→ As a result, products don’t need to be built in advance.

→ It will save inventory costs and product expiration losses.

05. Seek Perfection:

→ Seek performance means we are constantly working for perfection by eliminating waste and improving processes.

→ We will achieve improved performance by engaging all employees to identify improvement opportunities and implement them.

→ By following the above practices we can improve the performance of our organization and business.

→ It also helps us to eliminate waste from our value stream.

→ Continuously improve process till we achieve the perfect lean process.

→ The first four principles are a great start but the fifth step, seeking performance and perfection is the most important

→ We need to implement lean thinking and process improvement as a part of our culture.

→ It is important to remember that lean requires constant effort for perfection.

How to Prepare a Team for Lean Implementation?

→ Team preparation requires careful planning.

→ Also we need to provide training and proper communication to the team.

→ So we can get confidence that the team is aligned on the same goal of lean transformation.

⏩10 Steps to prepare our team for a successful lean implementation:

1. Develop Leadership Commitment
2. Educate and Train the Team
3. Create a Shared Vision
4. Build a Culture of Continuous Improvement
5. Establish Clear Communication Channels
6. Set Up a Lean Implementation Team
7. Start with Small Pilot Projects
8. Provide Ongoing Support and Resources
9. Celebrate Wins and Progress
10. Monitor, Adapt, and Improve

How to Apply Lean Principles?

→ The five Lean principles provide a framework for creating an efficient and effective organization.

→ Lean allows to discover inefficiencies in processes.

⏩Key Steps for Applying Lean Principles:

• Identify Value
• Map the Value Stream
• Eliminate Waste (Muda)
• Create Flow
• Establish Pull (Just-in-Time)
• Pursue Continuous Improvement (Kaizen)
• Empower Employees
• Standardize Work
• Measure Performance
• Focus on Customer Satisfaction

Benefits:

• Reduced wastes from processes
• Increased efficiency and effectiveness
• Improved quality and performance
• Enhanced flexibility and adaptability
• Improve employee engagement and morale
• Better customer satisfaction
• Improved safety
• Improved collaboration and communication
• Increased profitability
• Scalability

Conclusion:

→ Lean principles are a strategic approach to optimizing our processes by focusing on waste reduction and continuous improvement.

→ By implementing lean processes, businesses can achieve good quality of products and services.

→ Also, we can improve customer satisfaction level.

→ Lean implementation adds high value to the customer and it will help in the long-term success of the business.

→ That will also give competitive advantages to the businesses.

→ Lean principles can be applied to any business irrespective of the size and scale of the business.

→ We can implement lean methodologies to any sector of industries such as manufacturing, healthcare, IT, services, etc.

→ Lean practices are scalable and adaptable.