Lean focuses on eliminating waste to increase profits by understanding customer needs and value, reducing non-value adding activities, and empowering employees through continuous improvement. It aims to develop a culture of constantly evaluating processes and adapting to change through motivated, well-trained people. While no system is perfect, Lean takes a comprehensive approach and incorporates lessons from prior methodologies, making it a pragmatic management strategy according to the author.

1. Why Lean?
Withclip-boardandstop-watchinhand I served mytime onwork-study. Thankfully thosedaysare
overbut thenalongcame QualityCircles,GroupTechnology,Just-In-Time,WorldClass
Manufacturing,Total Quality,6-Sigmaandforthe last couple of decadesLean,spicedalongthe way
withSPC, TPM, MRP andwhole lotof otherTLAs (see TLA Busterbelow).
All these managementsystemshave somemeritandare infact a progressionof ideasthatprobably
go back to buildingthe pyramids. My conclusion?Do-what-works(DWW);Ihappilyuse whatever
ideas,toolsandmethodologiesare effectiveandresponsibleforthe job.Butof all management
systemsLeanisthe probablythe mostcomprehensiveandsuccessful. SowhyLean? Inmy view
successful Leanaddressesthe needsof customers,employeesandof course,shareholdersby
increasingprofits.
Lean iswide inscope andextendsfromanorganisationsrelationshipwithcustomersthroughits
operationsandsuppliers. Itincludesimprovingoffice processesas muchas shop-floor. It’snota
simple collectionof independenttoolssuchasSMED, 5S or Value StreamMappingbutis a
comprehensive managementsystem, baseduponsoundprinciples.
The firstof these principlesisto “understandwhataddsvalue forcustomers”. Unlesscustomers’
needsare clearlyunderstooditisdifficulttoidentify andminimise activitiesthatare notvalue
addingor waste.Althoughmostorganisationsclaimtobe customerfocusedI’moftensurprised how
manydon’thave a clearideaof what addsvalue or evenwhotheircustomersare. Andthenthey
seemtolose the plot - banksinthe noughties,forinstance.
A clearideaof customersshouldleadtoa clear vision andstrategy. Withoutaclear strategyitis
difficulttodevelopefficientoperationstosupportitandit isnot uncommonto findthe operationis
drivingstrategy. Leanjargonfor the processof linkingstrategytooperationdesignandcontrol is
“PolicyDeployment”–a whole bigtopic.
Witha clearideaof what addsvalue forcustomersand the shape of operationstosupportstrategy
Lean focusesonreducing “waste”. InLeantermswaste is anythingthatdoesnotadd value,
includingwastedeffort,material,energy,systemsandpeople’seffortandtalent. Scratcha Lean
practitionerandhe or she will come upwithlonglistsof differentcategoriesof waste,notall them
obvious.Usingtoolslike Value StreamMappingmake waste visual,particularlyorganisational effort,
allowingpeople tosee forthemselveshow toreduce it. The importantpointof course isthat if

2. productsand servicescanbe soldwithlesswaste thenprofits directlyincrease whichishow most
Lean projects yieldafour-foldreturnoninvestment,sometimesmuchmore.
Eventhe most perfectbusinessmodels,processesandproductshave toadapt tochanging
circumstancesandso ContinuousImprovementisanecessityforcommercial survival. However,
afteran initial projectortwo,manyorganisationsthinktheyhave “done Lean”andlookaroundfor
the nextquick-fix.ButLeanisnot a quick-fix. Quick-winsare importanttobuildinitial confidence
but are not the end-goal of a culture thatseekstoconstantlyimprove,andknowshow todo it.
Continuousimprovementisthe ultimateaim;like goodathletesone of the qualifyingindicatorsof a
healthyLeanorganisationisconfidence initsabilitiesbutrelentlessdissatisfactionwithitscurrent
performance. “Happybutneversatisfied” aptly saysone managingdirectorIknow.
More than anyothermethodology,Leanemphasisesconstantreview andimprovementwiththe
engine foradaptiontochangingcircumstancesbeingwell-trained,confident,motivatedpeople. So
an underlyingprinciple of Leanis“respect forpeople”,whichiswhythe phrase “Leanandmean”is
out of place.Respectforpeople doesnotmeanbeingsoft,naiveover-payingorevenbeing
democratic. Neitheris“respectforpeople”some kindof exoticphilosophynotapplicable to
Westerncultures;experience shows“respectforpeople”inaLean contextisuniversal. Lean
providesasensible emphasisondevelopingaculture thatmotivatespeople bygivingthemclear
direction,trainingtosolve problemsandopportunitiestoimprove processesfor themselves,orseek
experthelpwhenneeded. ManytimesIfindemployeesworkingwell below theirintellectual
potential andcontributinglessthantheycould. Traditional work-studymethodstendedto
encourage a sadlack of initiative andmutual respect thatultimatelyledtorigidcultures,unableto
continuouslyimprove.
Lean isnot a panaceaand no doubtwill be overtakenbybetternew managementsystems. Butmy
betis that whatevercomesalongwillinclude alotof Lean thinking,asLeanhas developedfrom
previousmethodologies. MeanwhileI’ll continue withDWWandthat includesagooddose of Lean.
TLA-Buster
DWW – Do What Works; pragmaticuse of toolsandtechniques –youread ithere first
MRP – MaterialsRequirementPlanning;computerisedproductionandstockmanagement
SPC– Statistical ProcessControl;asetof statistical toolsforminimisingprocessvariation
SMED - Single Minute exchange of Dies;ananalytical methodtoreduce make-readies
TPM – Total Productive Maintenance;methodforreducingbreak-downsandincreasingproductivity
TLA – Three LetterAcronym;whatit says!