1. Why I Like Lean
Any business system is subject to misinterpretation by those who do not fully
understand its principles and/or do not understand business in general. Lean is no
exception. Further, lean can be misinterpreted by those who view it as a tool set to be
applied, rather than a business philosophy of which the “tools” are only a part.
I like lean because:
o It is strategic and tactical. Lean provides both a business strategy and a tool set to
help implement the strategy. Lean’s business strategy focuses on reducing process
lead time (and inventory) to surface problems (waste) to be solved. Lean’s tool set
helps people “see” the waste and provides tools to reduce or eliminate it.
o Lean engages the organization. Done right, lean is not a project, but rather a
process of training, learning and problem solving. Lean relies heavily on employees
at all levels of the organization, with proper facilitation and guidance, to analyze
processes, identify wastes and then design and implement improved lean
processes. Unfortunately, lean processes are also somewhat fragile, at least
initially, and it is easy for them to underperform if basic design characteristics are not
satisfied, such as material flow, reliable processes, etc. As a result, it is critical that
lean processes be controlled by lean management systems that focus on sustaining
the new lean process until the organizational discipline and focus necessary for the
systems to operate as designed become habit.
o Lean principles and tools embody a wealth of operational best practices, such as
standard work (standards), process level metrics, employee training and flexibility,
employee involvement, management attention to detail, process reliability, first time
quality and others that have been largely ignored in many operations as headcounts
have been reduced in a wrongheaded effort to reduce cost. In fact, it is the
seamless integration of these basic blocking and tackling tools that give lean
systems their ability to reliably deliver expected performance and continuously
improve. Unfortunately, “doing the basics right” is no easier in a lean system than it
is for the many conventional operations trying to implement lean, so doing the basics
right is still a struggle. If any difference exists between lean and non-lean
operations, it is the fact that the absence of these core tools is more obvious if one
actually traces to root cause the reasons a lean process fails to deliver expected
results.
o Lean principles apply in any operational environment. Though lean got its start in
automotive manufacturing and has traditionally been applied in repetitive
manufacturing environments, lean principles are being successfully applied in almost
every type of operating environment, including low volume/high mix manufacturing,
process industries, administrative operations, engineering applications, construction
and health care. Hospitals are beginning to “flow patients” through the health care
delivery process, creating more treatment capacity and more satisfied patients who
see shorter overall treatment times (lead time) and higher quality care in the
process.
o Lean is “common sense, commonly applied’ to quote Mazaaki Imai, a lean author
and consultant. Invariably, as companies begin to understand lean principles and
successfully implement them, the overwhelming reaction is that “this is just common

2. sense.” Unfortunately, in many operational environments, common sense is not
commonly applied.
o Last, lean is culturally neutral. Though founded in Japan, the fundamental principles
of the Toyota Production System have been successfully applied in the US, Europe,
Latin America and throughout Asia. Lean principles are no longer “new,” but rather
are the fundamental operational improvement philosophy being followed globally in
manufacturing.
Some maintain that TPS stands for the Thinking Production System, rather than the
Toyota Production System, because of lean’s focus on identifying and solving problems,
driving to root cause and then working to sustain the improved process. As a result,
lean is a system that requires great organizational discipline and consistency to truly
prosper, values unfortunately lacking in many companies. As a result, lean probably
fails more often than it succeeds. Sometimes this is due to unscrupulous consultants
who sell clients a bill of goods that cannot be delivered, but this is probably a small
proportion of the cases where lean fails. More often lean is a victim of changing
organizations, new leadership directions, lack of patience and lack of understanding of
lean principles at all levels of an organization.
Also, lean won’t trump a bad business model, but for any manufacturing business
seeking to make the most of what it’s got, lean cannot be beat. Over the past ten years
Delphi probably won more Shingo Prizes than any other corporation, but they eventually
filed for bankruptcy clearly demonstrating that even lean principles, well applied, cannot
overcome $46 labor rates, when your competitors are paying $10 to $15.