What is Lean?

Lean comes from Toyota's production in Japan

Lean started back in the 1950s at Toyota in Japan. Toyota was in a tough competition with the major American Car Manufacturers. Toyota was struggle ring due to bad economy following the war. Therefore Toyota could not afford the huge inventories like the American companies could. Hence opposite the Americans Toyota could not run a production based on huge batches (mass production). Toyota therefore invented a production system with low inventories. They called this system "Toyota Production System” or TPS.

As a part of TPS Toyota implemented Just-in-Time or JIT. JIT was mainly used towards the suppliers who were asked to deliver in small batches, in superb quality and at the right time. Always! This forced the suppliers to move closer to the Toyota factories. Actually Ford was the first to use JIT already in the 1920s. Ford called their system “dock to factory floor”.

Among other tools in TPS you will find SMED (reduction of changeover time), Kanban stock control, 5S system and order, poka-yoke (zero failure) and Kaizen (continuous improvements).

Soon Toyota showed good results and in the 1980s the American companies has to acknowledge that Toyota was doing something right.

“Toyota Production System” becomes “Lean”

It was Womack and Jones who named the TPS system as "Lean" with their book "Lean Thinking" from 1996. The word was chosen because it means less. Less inventory, less (and better utilized) capacity, less failures, shorter lead time etc.

In the book Womack and Jones defined Lean in 5 basic principles:
1. Define the value demanded by the customer.
2. Define the value stream that creates the value.
3. Create flow in the value stream.
4. Create pull (based on orders).
5. Continuous improvements.
Read more about the 5 principles >

From production to other areas
Since then Lean has become a widely used tool to optimized value streams and processes. Today Lean is used to optimize production and manufacturing areas, administrative processes (service), product development, IT-software etc. The reason for this is that the 5 basic principles are universal and can be used in any environment.

By Mikkel Smith
Flexkom - download Lean tools and software online >
Scandinavian website with Lean Courses (sorry - in Danish) >

When is a company Lean?

When can a company be considered Lean?

“Is my company Lean?” Many companies ask themselves whether their company is Lean or not. Actually it is my experience, that many of the companies that think they are about to be Lean - have a long way to go! Lean can give excellent results, but they do not show within the first year! Experience shows that it takes up to 3-4 years to “become Lean”. Remember - you never become Lean! Lean is not a static condition and you will never be able to say “now we are Lean”. Lean is a culture - a way to work and do things. Lean can therefore not be something you are - but a way you work!

“Lean is a company culture”

Even though Lean is a way to work, I will try to give 5 questions that can indicate whether you are on the right track!
The questions are for manufacturing companies:

• Does the top management have focus on Lean in words and actions? Do they talk about Lean on every meeting and do they constantly show in the production and recognize results?
• Is the production organized as a 5S workplace with a high level of order and systematism? And is the 5S level constantly improved?
• Is the “total process time” divided by the “total throughput time incl. all stocks” improved? The process times divided by the total throughput time should not be more than 0.1%. The stock turn should be more than 12.
• Is the planning horizon reduced? It should be reduced to at least day-to-day planning. A condition to reach this goal is reduced turn-over times and small batches - with a high OEE on bottlenecks.
• Are boards used for planning and problem solving?

Lean can give significant results

Using Lean production companies can achive the following results:

• Shorter lead time to customers
• Improved delivery service
• Increased capacity
• Improved product quality
• Reduced stocks
• Improved flexibility
• Higher productivity
• Improved safety level
• Improved ergonomics
• Visible management
• Improved job satisfaction
• Key performance indicators at all key points
• Continuous improvements
  

By Mikkel Smith
Flexkom – Download Lean tools online >
Website on Scandinavian Lean Courses >

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 >