Module 5 - Lean Management Principles
Module 5 - Lean Management Principles
Module 5 - Lean Management Principles
2. Value stream. Once the value (end goal) has been determined, the next step is
mapping the “value stream,” or all the steps and processes involved in taking a
specific product from raw materials and delivering the final product to the
customer. Value-stream mapping is a simple but eye-opening experience that
identifies all the actions that take a product or service through any process. That
process can be in design, production, procurement, HR, administration,
delivery, or customer service. 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.
3. Flow. After the waste has been removed from the value stream, the next step
is to be sure the remaining steps flow smoothly with no interruptions, delays, or
bottlenecks. “Make the value-creating steps occur in tight sequence so that the
product or service will flow smoothly toward the customer,” advises LEI. This
may require breaking down silo thinking and making the effort to become cross-
functional across all departments, which can be one of the greatest challenges
for lean programs to overcome. However, studies show that this will also lead to
huge gains in productivity and efficiency, sometimes as high as 50-percent
improvement or more.
4. Pull. With improved flow, time to market (or time to customer) can be
dramatically improved. This makes it much easier to deliver products as needed,
as in “just in time” manufacturing or delivery. This means the customer can
“pull” the product from you as needed (often in weeks, instead of months). As a
result, products don’t need to be built in advance or materials stockpiled,
creating expensive inventory that needs to be managed, saving money for both
the manufacturer/provider and the customer.
5. Perfection. Accomplishing Steps 1-4 is a great start, but the fifth step is
perhaps the most important: making lean thinking and process improvement
part of your corporate culture. As gains continue to pile up, it is important to
remember lean is not a static system and requires constant effort and vigilance
to perfect. Every employee should be involved in implementing lean. Lean
experts often say that a process is not truly lean until it has been through value-
stream mapping at least half a dozen times.