Short summary of Lean principle for quality change management

1. LEAN PRINCIPLE FOR
QUALITY CHANGE
MANAGEMENT
PRESENTED BY:
ROMAN MAN SHRESTHA

2. Lean is defined as a set of management
practices to improve efficiency and
effectiveness by eliminating waste.
 The core principle of lean is to reduce and
eliminate non-value adding activities and
waste.
 Lean Principle main goals are improve
quality, eliminate waste, reduce lead
time and reduce total cost

3. OBJECTIVES OF LEAN PRINIPLE
The three main objectives of Lean Manufacturing are Quality, Cost, and
Delivery.
Quality: Increasing the quality level of a production system means reducing the
number of errors, repairs and rejects.
Cost: The production process inherits many costs; beginning with human
resources, equipment and raw materials, all the way up to the finished product.
Delivery:
1. Reduce Production Line Length
A production line that is too long means more employees, additional work in
progress (WIP), longer production times and higher logistic cost.
2. Reduce Inventory
Carrying inventory consumes space, adds considerable logistics costs and
consumes significant amounts of financial resources; assets that could be utilized
elsewhere.
WHY LEAN? CHANGE

5. LEAN PRINIPLE
• Specify value from the perspective of the
CUSTOMER and the ORGANIZATION.
• Identify the value stream needed to
provide CUSTOMER care and remove
wasted steps
• Enable the flow smoothly and quickly
through the process.
• Continuously improve the value stream
and work towards perfection

6. FINDING FROM LEAN PRICINCIPLE APPLICATION IN
ORGANIZATION
 Defects reduced by 20% per year
 Delivery Lead Times reduced by more than 75%
 On Time Delivery improved to 99+%
 Productivity (sales per employee) increases of 15-25% per year
 Inventory (working capital) reductions of more than 75%
 Return on Assets improvement of 100%+
APPLYING THE
CHANGE IN
ORGANIZATION