Lean Principles


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  • Consider a relay race as a metaphor. Watch the “Baton” not he runners. Accountants may look at a race and measure activity of the runners and think they are drastically underutilized. Value is produced with successful pass of the baton. It is not having all runners in action at same time.
  • How busy people are? How fast value is delivered to the customer? What is your value to waste ratio? Are we watching the runners and not the baton?
  • Today we will begin to understand Lean Thinking by studying two pillars of the process.
  • Terrible utilization could be considered waste in some reports if a goal was to have 95% of resources utilized.
  • Innovation with social and environmental awareness_for example, creator of Prius and hybird technology. We are not suggesting Lean Thinking is the only model to learn from, but it has great merit based on results to date. The key is continuous improvement thinking.
  • The Toyoda system is a company’s management commitment to continuously invest in its people and promote CULTURE OF CONTINUOUS IMPROVEMENT.
  • In order to make greatest improvements leaders must teach. Tools alone want do the job.
  • Are we perfecting things for the customer?
  • Lean Principles

    1. 1. The Lean System A Proven System to Delivery Value in Plant/Office
    2. 3. How Does Your Organization Measure Productivity or Efficiency?
    3. 4. Lean Principles Two Pillars of Lean
    4. 5. Watch the baton, not the runners
    5. 6. Lean: The Big Picture <ul><li>Given name by MIT researchers </li></ul><ul><li>Known as Toyota Way </li></ul><ul><li>Seems to improve over time </li></ul><ul><li>Toyoda </li></ul><ul><ul><li>In 2008 became largest in car sales </li></ul></ul><ul><ul><li>Product development twice as fast as some competitors </li></ul></ul><ul><ul><li>In 2009, after worldwide financial crisis, remained solvent </li></ul></ul>
    6. 7. What are the keys and Power to Lean Thinking ? <ul><li>Management commitment to continuously invest in its people </li></ul><ul><li>Promoting a culture of continuous improvement </li></ul>
    7. 8. The Toyota Way The essence of Toyota’s system is that each individual employee is given the opportunity to find problems in his or her own way of working, to solve them and to make improvements.
    8. 9. Two Pillars of Lean <ul><li>Continuous Improvement </li></ul><ul><ul><li>Kaizen </li></ul></ul><ul><ul><li>Challenge everything </li></ul></ul><ul><ul><li>Embrace change </li></ul></ul><ul><li>Respect for People </li></ul><ul><ul><li>Necessary to work with others </li></ul></ul><ul><ul><li>Means employee, customer, supplier, all </li></ul></ul>
    9. 10. Kaizen Small incremental improvements Challenge status quo Continual Ask: Why are we doing this?
    10. 11. Mgt applies and teaches lean thinking Bases decisions on long term Lean House Short lead time,best quality/value,customer delight Respect for People Continuous Improve ment