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
- 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:
- Identify Value
- Map Value Stream
- Create Flow
- Establish Pull
- 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:
- Develop Leadership Commitment
- Educate and Train the Team
- Create a Shared Vision
- Build a Culture of Continuous Improvement
- Establish Clear Communication Channels
- Set Up a Lean Implementation Team
- Start with Small Pilot Projects
- Provide Ongoing Support and Resources
- Celebrate Wins and Progress
- 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.
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