Lean Thinking was introduced by Toyota in the 1960s as a systematic approach to identifying and eliminating waste or non-value-added activities in an organization through continuous improvement with the goal of creating value.
The term Lean is used because a Lean organization:
- Optimizes human effort
- Uses less space
- Reduces the need for capital investment
- Decreases the amount of raw materials or supplies bought and consumed
- Uses less time to produce and deliver products and services
Lean is therefore a strategy or system for remaining competitive through identifying and eliminating wasteful elements in products, services, or processes. The key principles of Lean are based on identifying 'waste' from the customer perspective, and determining how to eliminate it. Waste is defined as the activity or activities that a customer would not want to pay for, and that do not add value to the product or service from the customer's perspective. Once waste has been identified in the current or existing state, a plan is formulated to eliminate this waste, and attain a desired future state in as effective and efficient a manner as possible.
The 7 Wastes
- Waiting (Employee or equipment idle time)
- Transportation (Any movement that does not add value)
- Processing Itself (Doing more work than necessary)
- Motion (Wasted walking or movement)
- Poor Quality (Errors or rework)
- Inventory (Storing excess inventory or materials)
- Overproduction (Servicing more, sooner, faster than required by the next step in the process)
All types of organizations are discovering the advantages of educating their people on Lean and applying its principles within their own organization. Some of these organizations are trying to function effectively in the face of mounting challenges such as a high cost base relative to their competition; declining market share because of process or cost problems; and limited capacity. In all of these cases, Lean can have an immediate and positive impact on business. Through the process of implementing Lean, the organization can find ways to achieve a number of benefits. Results will vary, but here are some typical savings and improvements that can be achieved:
- More operational flexibility
- Increased product throughput
- Consistent service delivery
- Reduced lead times
- Reduced space
- Improvement in quality
- Reduction in operating costs
Management and staff need to be familiar with all aspects of the 5S methodology before committing fully to the concept. All relevant staff should receive appropriate training in the 5S aims, stages, and implementation methods before commencing any pilot program.
On their own, the individual Lean concepts and tools will provide certain measurable benefits, but it is the combination of them and their systematic implementation that will lead to more dramatic gains. Successful Lean implementation requires commitment and involvement across all levels as an organization-wide change initiative.
The first step to any Lean initiative is to gain top management support. Effective communication of Lean Thinking throughout the organization is seen as a vital ingredient in its successful implementation. This has to begin at Senior Management level in any organization. Management must appreciate and understand the financial opportunity and long-term business benefits of converting from traditional ways of doing business to a streamlined Lean approach. It is imperative to educate and train core staff in Lean Thinking, and to appoint a number of internal Lean champions to drive improvements across the organization’s core processes.
Without significant change in how a facility organizes and arranges the way that it works, any piecemeal change will do little more than maintain the status quo. The maxim should be that every process can be improved and, even if you think ‘it isn’t broke’, fix it anyway.
