2. AGENDA
LEAN MANAGEMENT
2
1. INTRODUCTION TO LEAN MANAGEMENT
2. IMPLEMENTING THE 5 CORE LEAN
PRINCIPLES
3. CONCEPT OF SHARED LEADERSHIP FOR LEAN
4. WHAT IS VALUE IN LEAN? – IDENTIFYING
WASTE AND WHERE VALUE IS ADDED
6. 6
LEAN – THE TOYOTA WAY
Continuous
Improvement
Respect for
People
Two main pillars of
the Lean
Methodology
Genchi
(go & see)
Kaizen
(improvement)
Challenge Respect
Birth of Lean
1940s
TOYOTA
Lean
Significant
improvements in
productivity,
efficiency, cycle
time, and cost-
efficiency.
Challenge
John
Krafcik
Lean Software
Development
2003
Mary and Tom
Poppendieck
8. 8
Lean Management
The 5 Basic Lean Principles
Identify
Value
Map the
Value
Stream
Create
Flow
Establish
Pull
Continuous
Improvement
Custome
r Needs
● Add value defined by customer needs
● Value lies in the problem you are trying to solve
● Map the workflow of your
company
● Identify what parts of the
process bring no value
● Detect the steps that don’t
bring value and eliminate
them
● Cross-functional teamwork
● Detect and remove process roadblocks
● Work is pulled only if
there is a demand for it
● Optimize resources
capacity and deliver
products
● Most important step
● Problems may occur at
any of the previous steps
● Encourage continuous
improvement
9. Benefits of Lean
Management
● Focus
● Improving productivity & efficiency
● Smarter process (pull system)
● Better use of resources.
9
11. Implementing Lean Principles
11
Simple to understand + Quick to make an impact
Prepare Your Team for the Change
Set clear goals
• Know your end goal.
• Communicate with team
• Define your goal
• Path to achieve it
• Motivate people
• Assist them
Establish a lean mindset
Start with a single team
Form a temporary pilot group
Ask for volunteers
Select members who can
influence
Start Small and Find a Change Agent
• Integrate lean mindset
• Explain what lean is
• Make sure they understand
• More likely to embrace change
12. 12
Implementing Lean Principles
Introduce the Lean Management Principles
Identify
Value
● Distinguish the value-adding from waste activities
● Value lies in the problem you are trying to solve
● Value = What customer is paying you for
● Waste activities => Pure & Necessary
Map the
Value
Stream
● Map the workflow of your
company
● Identify what parts of the
process bring no value
● Detect the steps that don’t
bring value and eliminate
them
Custome
r Needs
Create
Flow
● Detect and remove process roadblocks
● Alleviate the bottlenecks
● Work is pulled only if
there is a demand for it
● Optimize resources
capacity and deliver
products
● Cycle time = Time your
team is actively working
towards their completion
● Throughput = Number of
tasks that you finished in
a pre-defined time
Continuous
Improvement
Establish
Pull
● Most important
step
● Constantly improve
every process
● Plan-Do-Check-Act
● Implement a shared
leadership model
● Daily stand-up
meeting
13. A picture is worth
a thousand words
A complex idea can be
conveyed with just a single
still image, namely making it
possible to absorb large
amounts of data quickly.
13
18. Our process is easy
18
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congue tempus
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit, sed do
eiusmod tempor. Donec
facilisis lacus eget
mauris.
Vestibulum
congue tempus
Lorem ipsum dolor sit amet,
consectetur adipiscing elit,
sed do eiusmod tempor.
Donec facilisis lacus eget
mauris.
Vestibulum
congue tempus
Lorem ipsum dolor sit amet,
consectetur adipiscing elit,
sed do eiusmod tempor.
Donec facilisis lacus eget
mauris.
03
01 02
19. Let’s review some concepts
Yellow
Is the color of gold, butter and
ripe lemons. In the spectrum of
visible light, yellow is found
between green and orange.
Blue
Is the colour of the clear sky
and the deep sea. It is located
between violet and green on
the optical spectrum.
Red
Is the color of blood, and
because of this it has
historically been associated
with sacrifice, danger and
courage.
19
Yellow
Is the color of gold, butter and
ripe lemons. In the spectrum of
visible light, yellow is found
between green and orange.
Blue
Is the colour of the clear sky
and the deep sea. It is located
between violet and green on
the optical spectrum.
Red
Is the color of blood, and
because of this it has
historically been associated
with sacrifice, danger and
courage.
20. You can insert graphs from Excel or Google Sheets
20
4000
3000
2000
1000
0
21. Mobile project
Show and explain your
web, app or software
projects using these
gadget templates.
21
25. Credits
Special thanks to all the people who made and
released these awesome resources for free:
● Presentation template by SlidesCarnival
● Photographs by Unsplash
25
26. Presentation design
This presentation uses the following typographies:
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26
28. Timeline
28
DEC
NOV
OCT
SEP
AUG
JUL
JUN
MAY
APR
MAR
FEB
JAN
Blue is the colour of
the clear sky and the
deep sea
Red is the colour of
danger and courage
Black is the color of
ebony and of outer
space
Yellow is the color of
gold, butter and ripe
lemons
White is the color of
milk and fresh snow
Blue is the colour of
the clear sky and the
deep sea
Yellow is the color of
gold, butter and ripe
lemons
White is the color of
milk and fresh snow
Blue is the colour of
the clear sky and the
deep sea
Red is the colour of
danger and courage
Black is the color of
ebony and of outer
space
Yellow is the
color of gold,
butter and ripe
lemons
29. Roadmap
29
1 3 5
6
4
2
Blue is the colour of the
clear sky and the deep
sea
Red is the colour of
danger and courage
Black is the color of
ebony and of outer
space
Yellow is the color of
gold, butter and ripe
lemons
White is the color of
milk and fresh snow
Blue is the colour of the
clear sky and the deep
sea
31. SWOT Analysis
31
STRENGTHS
Blue is the colour of
the clear sky and the
deep sea
WEAKNESSES
Yellow is the color of
gold, butter and ripe
lemons
Black is the color of
ebony and of outer
space
OPPORTUNITIES
White is the color of
milk and fresh snow
THREATS
32. Business Model Canvas
32
Key Activities
Insert your content
Key Resources
Insert your content
Value Propositions
Insert your content
Customer Relationships
Insert your content
Channels
Insert your content
Customer Segments
Insert your content
Key Partners
Insert your content
Cost Structure
Insert your content
Revenue Streams
Insert your content
34. Team Presentation
34
Imani Jackson
JOB TITLE
Blue is the colour of the
clear sky and the deep sea
Marcos Galán
JOB TITLE
Blue is the colour of the
clear sky and the deep sea
Ixchel Valdía
JOB TITLE
Blue is the colour of the
clear sky and the deep sea
Nils Årud
JOB TITLE
Blue is the colour of the
clear sky and the deep sea
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39
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Editor's Notes
Introduction:
Good Afternoon everyone! Are we good? Thank you for joining us, sparing your time and interest to hear about the Introduction to Lean Management, and I’m very happy to see all of you Interns, so welcome for today’s webinar discussion.
First, before we proceed to our session proper, I just wanted to formally introduce myself, I am Engr. Kyle Ruskin M. Porazo, a previous Team Leader at PASAR Corporation and currently a college instructor under Industrial Engineering Department. So some of you are very familiar to me, especially with my students from the Industrial Engineering, and now I’m so glad to see some fresh faces from the Electrical and Mechanical Engineering students.
So I wanted as well to formally welcome you all for today’s afternoon webinar discussion.
Before we start, I wanted to leave a statement that for sure will leave an impact to all you, the very core discipline is that “Learning is always a part or a parcel for the continuous improvement and it should be a lifestyle, so you should have the decision to continuously improve.”
In today’s webinar discussion, we will be tackling the following agenda’s
First is the… (read the agenda)
You may have probably heard of the Lean Management concept and its growing popularity in the business world, but don’t worry if you didn’t. In today’s afternoon discussion, you will get familiar with the Lean methodology.
Actually, there is no surprise that Lean Management is wide as spread across different industries. Thanks to its core values and positive impact on companies overall performance. The Lean concept appears
The Lean concept appears to be a Universal Management Tool, you can apply the concept of Lean in any business or production process from manufacturing to marketing and software development.
The Lean Methodology relies on 3 very simple ideas, number 1, deliver value from your customer’s perspective, number 2, eliminate waste or things that don’t bring value to the end-product, and number 3, continuous improvement. So now when you know the core idea, let’s dig deeper and get to know the basic principles of Lean Management and where it comes from, what is Lean Management and how did it start.
* Before you start with the basic Lean principles, you need to realize that the Lean methodology is about continuously improving work processes, purposes, and people. Instead of trying to hold total control of work processes and keep the spotlight, Lean management encourages shared responsibility and shared leadership.
This is why the domain pillars of the Lean methodology are Respect for people and Continuous improvement. Afterall, a good idea or initiative can be in any level of hierarchy and lean trusts the people who are doing the job to see how it should be done.
Currently, Lean management is a concept widely adapted across various industries. However, it has actually derived from the Toyota Production System that has established around 70 years ago.
The birth of Lean, back in the late 1940s, when Toyota put the foundation of Lean manufacturing they are into reduce processes that don’t bring value to the end-product. By doing so, they succeeded doing significant improvements in productivity, efficiency, cycle time, and cost-efficiency. Thanks to this notable impact that lean spreads across many industries.
Indeed, the term Lean was made up of John Krafcik, currently the CEO of Google Self driving car project.
Lean Software development, started 2003, mary and tom poppendieck published their book named Lean software development: an agile toolkit. This book describes how can you apply the initial principles of the Lean methodology software development. In the end of the day, Lean software development comes down to 7 principles. In succeeding years later, this became the popular software development methods.
So what is Lean in business? Eric ries, an engineering and civil entrepreneur, develop a methodology based on the lean principles to help start-ups succeed. In 2011, he packed his ideas in a book called, The Lean Startup. The concept consist of 5 basic principles that aim to help start-ups to be more flexible and responsible to changes. From a business point-of-view, Lean is to sharpen product development cycles and rapidly discover a business concepts. This methodology is also employed by government structures, academe professionals and others.
As you can see, Lean management was not created in a moment, instead it is evolving gradually, thanks to many observations and the desire of the people for its continuous improvement.
So let’s get down to the 5 Basic Lean Principles of the Lean Management, which may need to create a Lean system.
Number 1, Identify value, what does every company strive to do to offer a product or service that a customer are ready to pay for? To do so, a company needs to Add value defined by customer needs. The value lies in the problem you are trying to solve for the customer, most specifically in the part of the solution that your customer actively willing to pay, any other activity or process that doesn’t bring value to the end-product is considered waste. So you first need to identify the value that you want to deliver and then proceed to the next step.
Number 2, Value stream mapping, this is the point where you literally to map the workflow of your company, it has to include all actions and people involved in the process of delivering the end-product that the customer. By doing so, you will be able to identify what parts of the process bring no value, applying the lean principle of value stream mapping will show you where value is being generally generated and in-work proportioned different parts of the process do or do not produce value. When you have your value stream map, it will be much easier for you to see which processes are role by what teams or who is responsible for measuring, evaluating and improving that process. This big picture will be able you to detect the steps that don’t bring value and eliminate them.
Number 3, Create continuous workflow, after you mastered your value stream, you need to make sure that the work flow the each team remains smooth. Have in mind that, it may take a while, developing a product service will often include the cross-functional teamwork, bottlenecks or interruptions may appear at any time. However by breaking up working to smaller batches and visualizing the workflow, you will be able to easily detect and remove process roadblocks.
Number 4, create a Pull system, having a stable workflow is a guarantee that your teams can deliver work tasks much faster with less effort. However, in order to secure a stable workflow, make sure you create to pull system when it comes to the lean methodology, in such a system the work is pulled only if there is a demand for it, this lets you optimize resources capacity and deliver products. Services only if there is an actual need. For an example, you go to a pizza parlor and order a pizza, the baker puts your order and starts making your pizza, he doesn’t prepare the ingredients in advance because there isn’t an actual demand for it and in other hand, if the instance this ingredients was prepared in advance, it could be a possibility to become a waste of resources.
Number 5, continuous improvement, after going through all the previous steps, you already built your lean management system, however, don’t forget to pay attention to this last step, probably the most important step. Remember, your system not cicely and static. Problems may occur at any of the previous steps, this is why you need to make sure that employees in every level are involved in continuously improving the process. There are different techniques to encourage continuous improvement. For example, every team may have a daily standup meeting to discuss what has been done, what needs to be done, and possible obstacles, an easy way to process improvement on a daily basis.
So what are the benefits of Lean Management? The growing popularity of the lean principles comes from the fact that they actually focus on improving every aspect of the work process and involve all levels of the companies hierarchy. They are a few major advantages that managers can benefit from which include: Focus, by applying the lean methodology, you will be able to reduce waste activities, therefore, your workforce will be focused on activities that bring value. Improving productivity and efficiency, when employees are focused on delivering value they will be more productive and efficient because they wont be distracted by unclear tasks. Smarter process (pull system), by establishing a pull system you will be able to deliver work only if there is an actual demand, which leads to the next one. Better use of resources, when your production is based on actual demand, you will be able to use only as many resources as needed. As a result, your company team will be much more flexible and able to respond consumers requirements much faster. In the end, lean management principles will let you create a stable production system which a higher chance improving overall performance.
So if we summarize what we have learn in the First part of this afternoon discussion, Lean management is more likely a guide for building a stable organization that evolves constantly and helps to identify actual problems and remove them. The main purpose of Lean management is creating value to the customer by optimizing resources. Lean Management principles aims to create a stable workflow based on actual customer demand. Continuous improvement is a major part of lean management ensuring that every employee is involved in the process of improving.
* Lean has proven to an effective model for managing teams and some of the most demanding industries like software development, manufacturing, construction and many others.
A huge role which has the fact that methodology is simple to understand and quick to make an impact when implemented properly, like everything else in life, the first step in Lean management are the most difficult and a huge portion of the team that fail to implement it successfully and give up early.
Prepare your team for the change, although lean management is based on the five principles of lean, before applying them you need to prepare your team, department, and even the whole organization for the change. Set clear goals, first of all, you need to know what your end goal that communicates that everybody in your team, what are you trying to achieve by implementing the lean process within your company, is it optimization of your workflow so you can have faster product deliveries?, or are you trying to increase your overall business profitability as a result of it? Or perhaps you just want to ensure your businesses survivability by making more sustainable in the future. What every goal is, it needs to be clearly defined, this way you will be able to share a path to achieve it, motivate people to take the journey with you and assist them by moving any obstacles that appear on your way to process perfection.
Establish a lean mindset, once you knew what the outcome of the implementation is, you need to integrate the lean mindset within your team, dealing with the human factor and getting everybody on board might be a major challenge, that’s why to get started, you need to explain to your team members what lean is and make sure they understand its benefits not just from an organization perspective but from a personal one too. The lean process is not about delivering superior customer value by eliminating waste but also cultivating an environment of shared leadership where your team members received more responsibilities and seek continuous improvement. Once your colleagues understand that, they are more likely to embrace the change, it is important that you’ll lead the change not manage it.
Start small and find a change agent, a good practice is to start in a single team and spread the lean practices across the departments, eventually transforming your whole company into a lean organization. Form a temporary pilot group of members of different teams so they could service change agents after they returned to their original team mates. For example, if you have a large research & development department that consist of multiple teams working independently you should ask for volunteers from each team, a good way to ensure that they will be fitting change agents is to select members who are not only enthusiastic but also influential in their teams. Once you set a strong foundation, introduce the 5 principles of lean management.
So next, how to Introduce the Lean Management Principles, after you have prepared your team for the change, you need to take specific actions lean activities to apply each of the 5 principles of lean. Nonetheless, you have the responsibility to enlighten your team and help them understand why each one of the lean principles is important with the goal.
Principle 1, Identify value, after you’ve prepared your team for the change to lay the foundations of the lean process, you need to first identify the value of the teams work, you need to distinguish the value adding from waste activities, it is crucial for everybody to be on the same page about it, so there’s should be a collective activity to understand work value is, consider the end-product of your efforts and what your customer get from it. By definition, value is everything that your customer is paying you for, there are teams that are not producing a direct value for the customer of the company but they are enhancing the overall value that the organization delivers, such as, quality assurance teams. In this case, the customers is your company, for example, the value of the quality assurance teams work is the number of bugs they catch and therefore ensure that the whole company will deliver a product with a value to the end user. Lean identifies 7 types of waste, waste activities is categorized as pure & necessary. The main difference between them is that some waste activities are necessary to support the value adding ones, while pure waste activity is only bring hung to the lean flow of work. Going back to the software development, example, quality assurance is the brightest example of a necessary waste, it doesn’t generate direct value for the end-customer but it ensures the value of the development process doesn’t get lost.
Principle 2, Map Value stream, the second of the 5 principles of lean is all about the stream value, that’s why after you identify the value that your team produces, it is important to visualize its parts to the customer. In lean management, this is usually done with the help of Kanban board, the Kanban board is a tool from mapping every step of your process and therefore visualizing the value stream of your team.
Principle 3, create flow, in the world of lean, flow is a key concept, since any kind of waiting is a waste, when creating a flow of value, your goal is to ensure smooth delivery when delivering it to your customer. A major impediment to create a smooth flow are the bottlenecks in your process. As a manager, you should be watchful of how does progress through your workflow, keep especially a close eye in where tasks gets stuck and why that happen. Bottlenecks may be caused by lack of capacity at the certain stage. Among the most common bottlenecks in any process are the reuse stages because most of the time the people reviewing work items are fewer than those that submitted. Alleviating the bottlenecks in your process is crucial for the creation of the smoothen lean flow, if you cant alleviate them at least be sure to protect any existing ones from getting clog. A simple way to do it, is to limit the amount of work that your team can have in progress simultaneously, having this in mind, you should have a discussion with your team on the topic to achieve maximum efficiency. Make sure that they understand how harmful multitasking to get productivity and experiment different limits until you achieve smooth flowing of task
