Lean thinking has its roots in the Toyota Manufacturing System - a concept brought to the attention of the world in "The Machine That Changed the World" by Womack, Jones and Roos.
Also known as lean production, its goal is the relentless elimination of wasteful activity, which can be defined as anything which is unnecessary to the task of serving and satisfying the customer.
There are six essential principles behind creating a lean operation:
- Define value from the customer's perspective
- Identify the steps that make up the value stream
- Ensure the value creating steps flow...
- ... in response to the pull of the customer
- Continuously strive for perfection ...
- ... with the active involvement of all your people
Identify value...
Value can only be defined and appreciated by the customer of the product or service. Value, in the world of lean thinking, is that which the customer is willing to pay for with their time or money. Conversely, waste is any activity that is not of value, directly or indirectly, to the intended customer.
Map the value stream...
Once value has been established, the activities and events that contribute to customer value must be identified. Necessary operations are defined as being directly or indirectly essential to the task of creating customer value. Some activities - such as the payroll function - may be defined as necessary but of no direct value. Many other activities will be seen to contribute no value, direct or otherwise, and need to be progressively eliminated from the system.
Improve flow...
Flow is a key concept in lean thinking. In our sales and marketing context, it represents the uninterrupted movement of the prospect through their buying process, unhindered by any restriction or constraints on the part of the vendor. Vendors can and should increase this flow, not only by eliminating self-induced bottlenecks but also by encouraging appropriate self-service.
Allow customer pull...
Vendors must be responsive to supporting the prospects requirements at each stage in the buying process - but they can also accelerate flow and stimulate customer pull by elevating the consequences of inaction in the minds of
their prospects, and creating reasons for them to want to move forwards.
Strive for perfection...
The work of a lean organisation is never finished, and nor should it be: there needs to be a repeated and constant drive to eliminate unvalued activities, improve prospect flow, and anticipate and satisfy customer needs
The organisational impact of lean thinking...
Adopting lean thinking has a profound impact on everyone involved in the value stream. Employees at every level are encouraged, equipped and empowered to make their contribution to steadily eliminating waste.
Far from stifling innovation and creativity, lean thinking positively encourages everyone to align around a common goal - that of creating customer value.
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