5 Lean Principles Features And Benefits For Business
5 Lean Principles Features And Benefits For Business
Eliminating waste and adding value to processes are the goals of the five lean principles and ideas.
Lean Concept
Lean Concept is an organized approach that identifies & eliminates all types of waste that don’t add any value to the process. The primary concept of Lean principles is to boost customer value while reducing waste. A huge benefit of lean is that you will deliver the perfect value to your customers but with less work, through a perfect value creation process that has zero waste.
An organization with lean transformation understands customer value as well as concentrates its key processes to consistently increase it. So, Lean is about working efficiently, not swiftly.
Lean is the concept of efficient manufacturing/operations that pop out of the Toyota Production System in the center of the 20th century. But Lean techniques applies not only in production or manufacturing operations, but also in the service industry as well. Regardless of if you are manufacturing a product or supplying a service, some additives “waste”.
Do you frequently wait for product shipments? So, That’s a waste. Do products left in a room until they are required? That’s a waste. The purpose of lean management is to synchronize all of your business processes so there is no waste & your operation runs as smoothly as possible.
Lean consists of a broad range of principles & tools to identify & remove waste to increase process velocity. Hence, Any activity or procedure that engrosses resources increases cost or time without generating value turns into the target for elimination.
A Lean Organization, Subjectively, should have Certain Features
Lean Helps in:
Lean principles specialize in the “large picture” or upgrades within the complete business process. It aims to maximize human potential by empowering workers to consistently enhance their work. Lean leaders help workers grow professionally & personally.
Removing waste alongside whole value streams, rather than at isolated points, creates strategies that want much less human effort, much less capital, much less space & less time to make products and services at far fewer costs and with much fewer defects, compared with traditional business systems.
Companies are capable of reply to changing customer wish with excessive variety, excessive quality, low cost, and very rapid throughput times. Also, information management becomes much simpler & more precise.
You can develop a Lean Enterprise with the aid of aligning these 3 areas: People, Purpose & Process.
1. People:
The achievement of any lean transformation relies upon the involvement of each employee in the process for consistent business improvement. Further, their readiness and capability to solve progressively complicated problems.
2. Purpose:
Learn how all functions, individuals as well as systems work unitedly to deliver true value to customers creating competitive advantage & enduring business results.
3. Process:
To get real feasible results in safety, delivery, quality, cost & morale, one must bring all the lean tools to work cooperatively as a system.
Benefits of Lean
1. Improving Productivity & Efficiency
When employees focuses on delivering value, they will be more productive & efficient, because they won’t be distracted by uncertain activities.
2. Focus
By making use of Lean methodology, you will be capable to lower waste activities. So, your workforce will be focused on activities that bring value.
3. Better Use of Resources
When your manufacturing is primarily based totally on real demand, you may be capable to use only as many resources as needed.
Lean Principles
Lean principles had been first brought in the book. The Machine That Changed the World (1991) by James P. Womack, Daniel T. Jones, and Daniel Roos.
1. Identify Value
What is the aim of every company? Moreover, To provide a product/service that a customer is ready to pay for. Certainly, You need to define exactly what it is that the consumer wants. Customers in general do not define value based on where it is made & how it is made. Customers want their requirements satisfied swiftly, they want particular products, with specific capabilities, at a certain price. So, you first need to identify the value that you want to deliver & then move on to the next step.
The use of Quality Function Deployment (QFD), Brainstorming as well as other ideas can help an organization to define exactly what the customer sees as value.
Value– Value, which is defined by the customer and is something that the customer particularly wants. Still, we waste most of our time doing something other than adding value. Moreover, Studies show that we tend to only add value to a product or service for just 5% of our time.
The rest of the time we spend in wasteful activities; we are waiting, reworking, transporting, moving & a bunch of different wasteful things that the customer does now no longer consider to be something that they should pay for.
These are the seven wastes of lean tools and lean process and mostly what we do within a lean manufacturing implementation is to find out these wastes to remove them. But this often going about lean the wrong way. So, We need to find out the value-adding steps & make those as efficient and free of waste as possible.
If we just look for waste, we tend to begin working on improving processes that are in themselves wasteful & unwanted by the customer. We end up making non-value-adding processes more efficient.
2. Value Stream Mapping
Value stream mapping shows the series of workflow processes that produce the value. It has to include all actions & people involved in the process of delivering the end product to the customer. Furthermore, A value stream map is created to discover all the activities engaged in the product.
Value stream mapping will show you where value is being generated & in what proportion several parts of the process do or do not produce value. Moreover, The value stream of lean principles mapping helps to identify & remove non-value-added activities. This helps you to reduce the process delays & therefore improves the quality of product/service.
Within lean we are looking to remove or minimize those non-value-added steps.
3. Create Flow
After mastering your value stream, you need to ensure that the lean process of each team remains effortless. The ideal flow would be “single-piece flow”, although this is often not achievable due to machine setups & the need to flow several product streams through individual machines or cells. Additionally, Barriers & interruptions may appear at any time.
But what we are trying to attain is the “flow” of products or value from one step to the next, each step being a value-adding step. This flow is attained through some ideas & tools from Kanban, through cell design, and so on. So, You can break up work into smaller batches & visualize the workflow, you will able to easily detect & eliminate process roadblocks.
The quality level of each operation is very high, near-perfect using several defect elimination as well as detection techniques. So, These techniques include:
4. Establish Pull
The biggest waste in any system is inventory; Inventory causes so many wastes. Thus, Inventory takes up space, it needs stacking, storing & transporting. Having a stable workflow ensures that your teams can deliver work tasks much quicker with less effort. However, to secure a stable workflow, ensure to create a pull system.
In such a system the work is pulled only if there is a demand for it & when a customer makes the order. Most mass manufacturing production companies are within side the push production mode. Each operation produces as much as possible & sends it onto the next operation. It helps to diminish inventory levels.
Let’s take an instance of the restaurant. You go there & order a burger. The chef pulls your order & starts making your burger. He doesn’t prepare lots of dishes in advance because there isn’t actual demand & these lots of dishes can turn into a waste of resources. This lets you optimize resources’ capacity & deliver products/services only if there is a real need.
By using kanban systems & “supermarkets” it is possible to set up your production so that customer orders can be swiftly satisfied when they are made.
5. Pursuit Perfection
After going through all 4 steps, you already developed your Lean management system. However; with the support of your employees, you require to seek perfection; delivering exactly what the customer wants when they want it at an acceptable (Minimum) price with zero-waste. You can also apply lean principles to improve user experience.
Remember, your system is not fixed & isolated. Problems may occur at any of the previous steps. That’s why engaging every employee within your company to make sure continuous improvement of each & every aspect of your company by implementing lean tools such as Kaizen. Moreover, There are other techniques to motivate continuous improvement. For instance, every team may have a daily stand-up meeting to discuss what has been done, what requires to be done & possible barriers.
Lean is about improving every other process from order processing to invoicing as well as customer service.
Perfection is attained through:
Conclusion
At last, Lean is now broadly recognized as a fundamental business philosophy. So, Lean management is more like a guide for developing a stable organization that evolves consistently & helps to identify wastes & eliminate them. It’s been seen that organizations that consistently practice Lean are more innovative & competitive, which in turn allows them to be more profitable & sustainable.
This Article is originally taken from: 5 Lean Principles Features And Benefits For Business - Learn Transformation
Comments
Post a Comment