What Lean is Not - 10 Things That Are Not Lean

Despite Lean Thinking be around for three decades there are still surprising many misconceptions about Lean. We often hear what the definition of Lean is but this time I wanted to share what Lean is not!  Here is a list of 10 things Lean is not:

1. Lean is Not about Tools

Tools do not solve problem but rather people do. It is not about the tools it’s how they are applied. A large number of organizations have failed to produce the desired results from the direct and prescriptive application of Lean tools. The tools themselves have been proven to work in many situations. The difference must then be in how the tools were applied, their appropriateness, but not the tools themselves.

2. Lean is Not Devoid of Technology

The fundamental principle of Lean manufacturing is to design a simple manufacturing system, however, that does not mean eliminating technology. There is always room for improvement.

3. Lean is Not Only for Manufacturing

Whether it is lean manufacturing, lean office, or lean management, benefits can be realized throughout the company in inventory reduction, productivity improvement, and reduction in errors, to name a few.

4. Lean is Not about Waste Reduction

First and foremost, 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.

5. Lean is Not about Cost 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.

6. Lean is Not Only for the Frontline

Lean is meant to involve the whole company. It is not intended to be put into action in only one area. It is a management philosophy which should include every part of your organization. This helps promote the concept that everyone in the company is part of the team. True Lean manufacturing needs the involvement of everyone coming into contact with the company’s product and its customer.

7. Lean is Not about Less (or more with Less)

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.

8. Lean is Not about No Inventory

Lean doesn’t mean ZERO inventory. Even with lean there may be a need to keep some finished goods on hand or some inventory in a supermarket. It means the right inventory at the right time at the right quantities and in the right place. Every company needs buffers, but they must be well planned and controlled. Things to consider are the demand of the customer and the time necessary to replenish the material. Implementing a Kanban system for the supermarket or finished goods helps to control the level and eliminates overproduction.

9. Lean is Not Rigid

People are often concerned that Lean efforts, including standardized work, will turn them into unthinking robots. Many Lean methods are used so that abnormalities are clearly visible and therefore can be reacted to. It is not about mindless conformity. Lean creates a baseline so improvement can occur by freeing up mental capacity from doing the routine in order to think about how the process could work better. A truly Lean culture respects people and engages them in continuous improvement.

10. Lean is Not Mean

Company executives that treat Lean as mean and use the tools to shed people, the source of the company’s health, are either delusional or do not really care about how the company performs in the long term. A Lean implementation that results in layoffs should not be considered a successful Lean implementation. 

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.

Lean is a process. It's a culture. It's a system. And at its core, Lean seeks to optimize manufacturing processes and reduce or eliminate waste — everywhere in the value stream.

But Lean is not a quick fix and you cannot pick and choose the tools you use.   The key to ongoing success is to embed Lean as a philosophy, and a requirement in everybody’s role; ensuring the right levels of line-management responsibility and accountability for gradually implementing the various tools and techniques that support it.

Implementing Lean, or any change initiative is difficult.  If it wasn’t, everyone would be doing it, and they’re not.  The answer is that the philosophy, tools and techniques are relatively simple, the hard bit is the culture, people, training, employee acceptance and ultimately perseverance and endurance as improvement does not happen overnight.

Lean Quote: Independence

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"To be simple is to be Great." — Albert Camus

Today, we celebrate Independence Day in the US. The 4th of July is an extremely patriotic holiday where we celebrate the independence of our country. People celebrate with family and friend gatherings, barbecues, parties, games, food, fun, festivals, parades, musical events and fireworks.

Freedom is not just the natural right of every human. It is the state of mind that enables people to create the greatest and the most inspiring things. The spirit of freedom gives us the power to conquer new heights, whether it is a real mountain peak or a bold business challenge.

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. It is about developing a mindset, methods and tools to identify and eliminate waste in all its forms at every opportunity. It is about freeing-up resources because you no longer need to use them.

Lean manufacturing provides your workforce the freedom that they need to own and maximize their productivity. In a Lean production plant, the "freedom to control one's work" replaces the "mind numbing stress" of mass production. Armed with the skills they need to control their environment workers have the opportunity to think actively even proactively to solve workplace problems.

Lean is more than the traditional metrics of improved efficiency, reduced costs and increased throughput. The people-centric approach to the application of Lean creates a better future, driven by empowered individuals working in teams, committed to continuous improvement. It is this culture of responsible freedom and trust that allows employees and their organization to realize the positive benefits of Lean and achieve a successful outcome.

 

Five Simple Ways to Make Your VSM A Valuable Improvement Tool

Value stream mapping is a tremendously valuable tool for improving a process. Well suited for a broad range of industries and processes. A value stream map (VSM) illustrates the flow of materials and information as a product or service moves through a process.

Value-stream mapping is a useful tool for grasping the current situation and for planning improvements. A current state value-stream map depicts the current situation as is. A future state value-stream map depicts what the value stream should look like after planned improvements have been implemented.

Creating a value stream map of the current state of your process helps you focus on areas of waste such as excess inventory, non-value-added time, and multiple operators. It’s not an easy undertaking, but making a good value stream map is a great way to help everyone involved understand and see where improvements can be made.

There is a tendency to skip mapping the current state and go directly to the future state map. But if we don’t understand the current process, we can’t really make intelligent decisions about how the future current state might or should look. A lot of companies want to skip the development of the current state map and get right into brainstorming ideas for improvement. We must reduce this impulse.

Skipping the current state map is like building a house without surveying the land or visiting the site.  Doing so can lead to a home that can’t be built and an upset homeowner.

These tips will help you develop accurate value stream maps that you can use to drive continuous improvement.

1. Define your value stream.

Identify the basic process steps before conducting your value stream map. Base the value stream map process on customer requirements. You must understand what the customer values, and use that as your starting point. Include all the activities required to bring a product from “raw materials” into the customer’s hands or provide service to a target audience. For each step in the process agree to the measure/data requirement needed for the map.

2. Capture the actual process in the actual place.

Describe the process as it operates now, not how it’s supposed to operate. Don’t be shy – visit the workplace when doing a value stream map. Walk through the process to ensure that the flow of materials and information is accurate. You will gain far more knowledge of the process if you witness the events yourself. An incorrect VSM can lead to wrong conclusions being drawn and can waste valuable time of improvement teams.

3. Make your value stream map with pencil and paper.

These days there are lots of value stream mapping software available but for first timers who may not be familiar with the software it’s just one extra thing to learn. Excellent results can be obtained through traditional pencil and paper. This helps your Value Stream Mapping team be familiar with the process and understand the level of detail that will be captured. When drawn in pencil it is easier to make changes. Just remember to stick with basic value stream mapping icons.

4. Analyze the entire value stream.

Too many Lean practitioners skip value stream analysis and jump right to identifying specific sources of waste and removing them. Unfortunately, as they note, this often results in local improvements, but rarely results in significant overall improvements in the overall value stream or in improved products for customers. To really have an impact, you need to begin by streamlining the entire value stream, and only after that, drill down into specific processes to eliminate waste. Your map may reveal a number of potential areas for improvement. Which ones will make the biggest difference in meeting customer requirements?

5. Map your improvement plan.

Create a future state map from the current state map. Your current-state map suggests where to focus your efforts, so you can draft a map that shows how value will flow through an improved process. List the actions that need to happen to improve the process. Take a step-by-step approach to putting your plan in action, then update your future state map as you implement each step.

Bonus: Remember keep your value stream map simple.

Remember that there is no perfect value stream map and you should set out to capture all the sufficient information. Keep the mapping process simple and allow for corrections. This will allow everyone to participate and be engaged in the improvement part of the process.

There is a lot to think about when undertaking value stream mapping so be sure not to rush. Create a check list of items that should be included in the map and cross them off as you go along. When you think you’ve got your map complete – validate it with your stakeholders – ensure its representative of what actually happens. Use this to iron out any problems with the map. Don’t take this stage for granted – get it wrong and you can find your improvement suggestions shot down in flames as stakeholders trash your map!

Lean Quote: Simplicity is the Key to Effective Continuous Improvement

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"To be simple is to be Great." — Ralph Waldo Emerson

Simplicity is the key to effective continuous improvement. Simplicity is the state or quality of being simple. Simplicity is not simple. If it were otherwise, it would not be the subject of discussion. Simplicity would be what is taken for granted.

According to Occam's razor, all other things being equal, the simplest theory is the most likely to be true.  A simple solution always takes less time to finish than a complex one.  So always do the simplest thing that could possibly work next. If you find something that is complex replace it with something simple. It's always faster and cheaper to replace complexity now, before you waste a lot more time on it.

In my experience with problem solving in a Lean environment it is often those simple creative solutions at the source of the problem by those who do the work that are the most effective.  Lean leaders understand this well and work to create a culture that fosters and develops the use of this ingenuity.

If your process isn’t simple, it’s going to be very expensive, not very usable, and probably not sustainable – put simply, it will fail. Whether evaluating new processes, or determining which ones to re-engineer or discard, make simplicity a key consideration. Remember this – usability drives adoptability, and simplicity is the main determinant of usability.

I think it was Leonardo da Vinci that said it best "simplicity is the ultimate sophistication."

 

Keep Calm and Let the Quality Manager Handle It

Yeah, that will work. While a creative idea in the “Keep Calm” series and probably something many of experience this is completely the wrong idea.

Quality is not something we can rely on a single person or group to perform. We cannot add it at the end of the line or inspect it into the product. At best that is only a false sense of security. If we want a quality product it must be made with quality processes by quality minded people. A focus on quality must be intrinsic to the company culture and practices for the customer to take notice.

The responsibility of delivering quality products and services to customers lies on the shoulders of every single individual who is even remotely associated with the organization. It is not only the management but also employees irrespective of their designation, suppliers, clients, customers who need to come up with improvement ideas to make foolproof systems and processes to deliver quality products which meet and exceed the expectations of end- users.

Generally the most effective way to achieve quality is to avoid having defects in the first place. It is much less costly to prevent a problem from ever happening than it is to find and correct the problem after it has occurred. Focusing on prevention activities whose purpose is to reduce the number of defects is better. Companies employ many techniques to prevent defects for example statistical process control, quality engineering, training, and a variety of tools from the Lean and Six Sigma tool kit.

Quality is everyone’s job. Each individual can influence some parts of the manufacturing process of a product or service they provide, therefore, effecting the quality of its output and ultimately the customer’s satisfaction. Quality directives should be compulsory to everyone in the corporation.

Perhaps the shirt should say “Keep Calm and Let Me Handle It”.

Six Tips for Facilitating a Lean Event

Kaizen events are opportunities to discuss problems within your organization. The purpose is to find workable solutions to problems within an organization or to find new opportunities for a company. The participants of a Kaizen event are key to the success of it. They need to be engaged, thinking and interacting throughout the entire event. This is the role of the facilitator to accomplish.

Here are some thoughts on how to facilitate an event.

1. Start small. Trying to do too much when introducing a new process can be overwhelming. Strive to accomplish small steps over time and build on your successes.

2. Expect to use extra time at first when planning to incorporate activities for reflection. Extra time spent in up-front planning will help reduce challenges during delivery of activities or in follow-up.

3. Work with a colleague whenever possible. You and your colleague can provide each other with a sounding board for ideas and mutual support.

4. Make a collection of activities and ideas. Evaluate the ones that work and those that do not. Revisit old activities occasionally; fresh eyes may see new opportunities for old ideas.

5. Be persistent. If you feel that the process is not working, reflect on the experience to gain new insights. Identify the issues, create solutions, and make necessary adaptations. As a facilitator, consider:
 What worked?
 What could have been better?
 How did the students respond to the activity?
 What feedback did colleagues give about the activity?
 Was I open to honest feedback (or was I nervous about receiving constructive comments)?
 What adaptations could be made to the activity?
 How did I respond to the activity?
 How could I adjust my approach to enhance the process?

6. Remember that expertise develops over time and often through a process of trial and error. See this learning process as a journey, rather than the destination.

As a Lean facilitator, if you apply these sensibly you will not go far wrong. Just remember to try it. It's easy to forget about these simple things during the heat of battle.

Lean Quote: Quality is Really About Customer Service

On Fridays I will post a Lean related Quote. Throughout our lifetimes many people touch our lives and leave us with words of wisdom. These can both be a source of new learning and also a point to pause and reflect upon lessons we have learned. Within Lean active learning is an important aspect on this journey because without learning we can not improve.

"Quality is understanding, accepting, and meeting the needs and expectations of customers." — W. David Hall, Prosolve Consulting LTD

Customer satisfaction is one of the most important aspects of any organization. If customers aren’t satisfied, they will take their business elsewhere and the organization won’t last.

For any business the customer is the lifeblood. Every process and every action internal or external should ultimately result in the value addition to the customer and the customer’s delight. Therefore it is essential that the customer needs, wants and expectations are identified before you embark on a quality building program.

Fundamentally, there are three levels of quality customer service:

First level: Conformance to Customers basic requirements, includes safety /health.

Second level: Customer satisfaction with Customer's expressed requirements.

Third level: Customer delight with unexpected new quality achieved by meeting customer's latent requirements.

Quality is an ever evolving perception by the customer of the value provided by a product. It is not a static perception that never changes but a fluid process that changes as a product matures (innovation) and other alternatives (competition) are made available as a basis of comparison.

Remember that long term profitability isn’t as much in winning customers as in keeping customers. Each individual customer’s perception of your company will determine how well you do and that perception will depend on the level of customer service you provide.

Since the customer is the only reason you have a job, if you are not willing to satisfy the customer…then you might as well go home; you are not needed. Remember that perception is reality with customer service. If your customers don’t see your organization as one that engages in customer-focused behavior, then you are not providing exceptional customer service. Treating your customers as valued individuals is often more important than price.