What is Lean?
You can easily trace the foundational principles of Operational Excellence from Lean Principles. Implementing Operational Excellences will requires us to learn and master most of the principles of lean and the common methods and tools that help make the waste or issues visible and serve as a countermeasure so all this issues are reduce if not gone.
What is Lean?
Lean is about understanding what is important to the customer (value). Lean focuses on eliminating waste in processes. Lean is not about eliminating people. Lean is about expanding capacity by reducing costs and shortening cycle times.
Jim Womack and Dan Jones, studied the Toyota Production System and in their book Lean Thinking they introduced the 5 principles which being emulated by many companies of today.
The five core principles
1. Define the value of a product or service from the customer’s perspective.
2. Identify and visualise the value stream and eliminate waste.
3. Create a continuous flow.
4. Switch to a demand-based system : “Pull instead of Push”
5. Strive for perfection through continuous improvement
These principles can be applied in all organisation processes, including marketing, administration, sales, product development, etc.
Lean provides tangible benefits
Reduces costs not just selling price
Reduces delivery time, cycle time, set-up time
Seeks continuous improvement
Improves customer ratings and perceptions
Increases overall customer satisfaction
Improves employee involvement, morale, and company culture
Helps “transform” organisations