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What is Lean?

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What is Lean?

• lean, simple and transparent processes,
• application of common sense and simple approaches in process management according to customer requirements,
• reducing time necessary for conducting activities,
• using capacities for value add activities from the point of view of a customer,
• reducing useless waste,
• reducing material supplies, their simple management, and subsequent improvement of financial flows,
• reducing costs.

**Lean means rapidity, simplicity, clarity, creation of products and services without excessive activities and supplies, reducing waste, process balancing and linking processes to a customer. **

Where can Lean be applied?

In fact, Lean principles are used in everyday lives. You choose an optimal way to get from a place to another one and do not waste resources uselessly that are not at your disposal. Lean does not concern only manufacturing processes but its principles are widely applicable in transaction and administration processes as well. Keep in mind that Lean is mainly about time reduction and removal of waste and activities not adding a value in the eyes of a customer.

Where came Lean into existence?

Lean was created in the company Toyota in the 1940´s. The Toyota Production System or Toyota Production House became a basis for many improvement activities based on Lean principles in many companies.

What are basic Lean principles?

1. Determining a value in the eyes of a customer -who are your customers and what is important for them?
2. Determining a value stream and waste removal – how does a value „flow“ through your processes or what happens with an emerging product in the process and what activities represent waste?
3. Flow and pull -linking flow to an employee
4. Engaging employees – employees participate in shaping their working environment and in improving the organization performance
5. Continuous improvement and attempt at perfection – it is not enough to improve once, as customer requirements change, processes get changed to perfection

What is waste?

• Defects – defective products, incorrectly entered information
• Overproduction – production for stock, excessive reports
• Excessive inventories – material surplus on a production line, in warehouse, „in“ and „out“ boxes
• Useless movements – non-connected, separate operations, data entered uselessly
• Overprocessing – inefficiencies in a product design, excessive transactions or approval procedures
• Transport – transfers in production or subsequent steps in the process require a long-distance transfer
• Waiting – waiting for an output from the downstream operation, work in batches
• Incorrectly used human resources – individual potential is not used to the fullest

What activities add a value?

• A customer is willing to pay
• They change a product in physical terms
• They are done correctly at the first time

All the other activities are those that do not add a value from a customer viewpoint. They include all the activities representing 7 W´s.