Lean

Lean Defined

Federal Government The determination of value is paramount to lean. Value is an item or feature for which a customer is willing to pay. Any other aspects of the manufacturing process are waste. Lean manufacturing is a tool to focus resources and energies on producing the value-added features while identifying and eliminating the non-value added activities.

Lean Applied

The goal of a lean organization is to deliver the exact product in the exact quantity with the exact quality that the customer needs exactly when they need it. One of the stumbling blocks to lean is understanding the concept of waste identification and elimination. In any manufacturing environment everyone works to minimize waste. However, lean redefines waste. Traditionally waste has been viewed as an object. It is very easy to envision a barrel of scrap and identify it as waste. Rather than referring to waste as physical material, lean manufacturing defines the term as the relationship of the resource to the end customer. In short, if the end customer will not pay you for it, it is waste.

In addition to delivery, manufacturing to customer demand includes the correct level of quality and features. In a lean environment, implementation of a pull system forces just-in-time deliveries. One of the hallmarks of companies that are truly lean is a focus on continuous improvement. Although project-based changes are typical, a lean environment lends itself to constant change. Quickly identifying and removing waste from the value stream achieves immediate benefits.

Additional lean tools for reducing waste:

Lean at Thomas Group

Lean is about getting the right things, in the right quantity, to the right place, at the right time, while altogether minimizing waste through a flexibility and openness to change. More importantly, these concepts should be understood, appreciated, and embraced by the actual employees who build the products, therefore owning the processes. The cultural aspect of Lean is just as paramount as the tools and methodologies.

By identifying the customer and how they define value, lean manufacturing allows companies and individuals to focus resources on adding value. Manufacturing to customer demand, driving out waste and continuously improving, satisfies customers, employees and shareholders alike.

When implementing and following a lean path you should realize direct cost savings by driving out waste. Other areas of improvement include:

Employee morale and productivity
Customer satisfaction due to reduced defects and improved delivery
Faster time to market

Lean manufacturing is customer focused. Since the success of your business as a whole is due in large part on satisfying customer demands, lean allows your manufacturing activities to become more closely aligned with other company goals and activities.