The document discusses Lean principles and concepts. It defines Lean as focusing on reducing waste to increase customer value. The roots of Lean come from the Toyota Production System after World War 2. The document outlines the five Lean principles: identify value, map the value stream, create flow, establish pull, and strive for perfection. It defines the seven types of waste in Lean: overproduction, waiting, transportation, overprocessing, inventory, motion, and defects. Benefits of Lean include increased profits, customer collaboration, and employee morale. Challenges can include disruptions during implementation and the need to rethink process flows with changes.

1. Topics
• WHAT IS LEAN
• HISTORY OF LEAN
• LEAN PRINCIPLES
• TYPES OF WASTES
• LEAN SUCCESS AND BENEFITS
• LEAN CHALLENGES

2. WHAT IS LEAN
Lean is set of principles to perform certain activities that reduces waste to add/increase customer
value.
Motto behind Lean was
“Offer higher quality, and more affordable products in less time”

3. LEAN HISTORY
Roots of the lean are derived from Toyota Production System
After world war, Japanese economy was rebuilding and based on Ford’s
original thinking, series of simple innovation steps we implemented. These
innovation steps were focused on improving end to end process rather than
optimizing individual machines. The steady growth of Toyota, from a small
company to the world's largest automaker, made world think how it has
achieved this success.
From this success, Lean principles came into picture.

4. Lean Principles
Identify Value
Map Value Stream
Create Flow
Establish Pull
Strive
Perfection

5. Lean Principles
Identify Value :Define value from customer’s
perspective and express in terms of
specific product or service
Identify Value
Map Value
Stream
Create Flow
Establish Pull
Strive
Perfectio
n

6. Lean Principles
Map Value Stream :Map all the step: value added
and non-value added activities that bring
product or service to the customer.
Identify Value
Map Value
Stream
Create Flow
Establish Pull
Strive
Perfectio
n

7. Lean Principles
Create Flow : The continuous flow of products,
services and information from end to end,
through the process.
Identify Value
Map Value
Stream
Create Flow
Establish Pull
Strive
Perfectio
n

8. Lean Principles
Establish Pull : Nothing is possible by upstream
Process until downstream customer signals
a need.
Identify Value
Map Value
Stream
Create Flow
Establish Pull
Strive
Perfectio
n

9. Lean Principles
Strive Perfection : The complete elimination of
waste ensuring all activities create value
For customer through innovation and
Continuous improvement projects.
Identify Value
Map Value
Stream
Create Flow
Establish Pull
Strive
Perfectio
n

10. Lean –types of wastes
Underutilized
skills
Wrong
Automation
Transportation
Motion
Waiting
Defect
Over
Production
Over
Processing
LEAN
WASTES

11. Lean –types of wastes
Underutilize
d skills
Wrong
Automatio
n
Transportatio
n
Motion
Waiting
Defect
Over
Production
Over
Processing
LEAN
WASTES
Any movement of materials, suppliers or resources that doesn’t add value to
internal/external customer needs like extra carts, multiple storage locations etc.
Any movement of people, resources or machine which doesn’t contribute/add
value to product/service like human/machine motion, lack of visual controls
Long period of inactivity for people, machine or material waiting for each other
leads to waste like late deliveries, people waiting for machine and resources.
Producing faster/excess quantity than customer needs leads to waste like
improper planning, producing earlier.
Investment(money/time) that doesn’t add any value to product/customer are
considered as waste like Redundant approvals/Endless refinement.
Any work done to rectify defects is considered as waste like testing/Re-testing
and bug fixes.
In today’s world, every organization is moving towards automation but if
investment(time/effort/money) is more than that of manual then this is
considered as waste.
Any skill that is not used up to its full potential leads to waste like over/under
qualification, low employee morale.

12. LEAN – SUCCESS and BENEFITS
Profit
Increased Customer
Collaboration
Increased Employee Morale

13. LEAN Challenges
 Disruptions, Downtime and Design Failure
People might not be ready to take new process, this could cause delay in delivery or even design
failure because it was designed as per older process.
 Process changes causes rethinking of process flow
Process require input/output and processing. If process changes it will alter any of these things.