Saturday, October 28, 2006

The 5 Lean Principles

Lean is all about creating the right value for customers with minimum effort!

The 5 Lean principles are:

  1. Define value seen from the customers/markets point of view.
  2. Identify the value stream (activities) that delivers the value defined in point 1.
  3. Create flow in the value stream.
  4. Create pull (order driven) in the value stream.
  5. Create a culture of continuous improvement (Kaizen) in the organisation.

The principles in short:

Principle 1: Customer value

Lean Thinking is all about delivering the value demanded by the customers. No more. No less.
The principle applies not only to the physical product. It also applies to service, logistics, information etc.
The principle of ”customer value” permeates a Lean organization.

Principle 2: Define the value stream

When the value has been defined, the value stream that creates the value must be identified and optimized.
The value stream is mapped and optimized step by step.
The target is to minimize waste.

Principle 3: Create flow

The most powerful tool to minimize waste in the value stream is flow.
The value for the customer should be created in a flow of activities and processes.
Flow with a minimum of unnecessary stops in the steps.
Flow gives significant results.

Principle 4: Create pull

Among other things, the target with flow is to minimize the through put time of a value stream, so that most activities and processes are based on firm customer orders and not forecasting.
Principle no. 4 is about carrying out as many steps as possible in the value stream based on customer demand.

Principle 5: Continuous improvement

Principle no. 5 is to create a culture of continuous improvement.
It is more about culture and attitudes than management Lean-tools.
The organization should continuously strive to become better. Every day.
Continuous improvement is also known as ”Kaizen” (Japanese).

By Mikkel Smith
Flexkom - download Lean tools online >
Scandinavian website with Lean courses >