This document discusses the Lean philosophy and Lean management. It begins by defining Lean as a philosophy, system and set of integrated tools to improve results by eliminating waste and promoting continuous improvement. The key aspects of Lean are outlined, including identifying customer value, value stream mapping, flow, pull systems and continuous improvement. The five steps to the Lean process are described. Four disciplines of Lean management are introduced: delivering value efficiently to customers; enabling people to lead and contribute; discovering better ways of working; and connecting strategy, goals and purpose. The integration of these disciplines to form a Lean management system is discussed. The document concludes by considering next frontiers for Lean, including new technologies and analytical tools to better understand and serve customers.

1. LEAN IN
Prof.Dr.Aung Tun Thet

2. LEAN IN
Prof.Dr.Aung Tun Thet

3. ◦ “Nobody knows the future.
◦ You can only create the future.”
◦ Jack Ma

4. Organization

5. Organization

6. LEAN IN
Continuous
Improvement
Wastage
Reduction
Respect for
People

7. Lean In
◦ Philosophy
◦ System
◦ Integrated tools
◦ Improve results by eliminating waste of non-value activities
◦ Continuous improvement
◦ Culture with respect for people

8. Lean In
◦ Employee ownership
◦ Holistic approach
◦ Transform organizations into efficient, customer driven and
successful enterprises
◦

9. Lean In

10. LEAN Organization
◦ Creating more value for customers with fewer resources
◦ Understand customer value
◦ Key processes to continuously improve
◦ Ultimate goal - perfect value to customer through perfect value creation process
with zero waste

11. LEAN Organization
Capability to identify
and solve problems
PDCA Thinking
PURPOSE
Vision/Values
True North
Employee Line of Sight
Strategy Formulation &
Deployment
PEOPLE
Involved & Engaged in
CI
Continuously solve
problems
Teamwork
Learn
PROCESS
Horizontal flow of value
Management through
Standardization &
Visualization
Elimination of waste
MANAGEMENT

12. Lean Principles
◦ Toyota - Taichii Ohno
◦ Lean Thinking
◦ Operational excellence
◦ Creating value for customers
◦ Meeting objectives

13. Lean Principles
◦ Origins in manufacturing sector
◦ Application in all sectors – service, healthcare, finance, IT, etc.
◦ Heart - elimination of waste - Mudas

14. 1. Overproduction
◦ Creating more than required or before required
◦ Advertising in saturated market
◦ Building houses and selling them cheaply
◦ Hotels run empty etc.

15. 2. Waiting
◦ Individuals and items wait because of mismanagement or
misappropriate allocation of resources
◦ Waiting in queues in restaurant or shop
◦ Newly recruited employees not contributing because of lack of infrastructure -
computers
◦ Forms waiting for days requiring approvals from authorities
◦ Waiting for net or mobile connection to get started etc.

16. 3. Unnecessary Transport
◦ Movement of materials serve no purpose or add any value to
customer
◦ Long email chains with excessive attachments
◦ Systems requiring multiple approvals in Government offices etc.

17. 4. Over-processing
◦ Efforts do not add value
◦ Redundant steps in process
◦ Call centre employees not trained properly

18. 5. Excessive inventory
◦ Supply of services or information exceeding demand or before
required
◦ Food thrown away
◦ More IT infrastructure
◦ Schools and colleges not filled to capacity etc.

19. 6. Unnecessary Movement
◦ People
◦ Customer representatives walking long to get brochures
◦ Multiple visits by salespersons to get correct documents
◦ Multiple visits to government offices to get job done

20. 7. Defects
◦ “Getting Right First Time”
◦ Correcting overhead
◦ Rework of application forms
◦ Incorrect delivery of couriers and goods
◦ Systems failure

21. 8. Unused employee calibre
◦ Uneven work distribution
◦ Not leveraging strengths of employees
◦ Decisions being made only by upper management without involvement of
employees, etc.

22. Lean Thinking
◦ Antidote to Mudas

23. LEAN IN PROCESS

25. Step 1: Identify Value
◦ Value defined by customer
◦ “What does customer want?”
◦ “Am I adding value to customer?”

26. Step 2: Map Value Stream
◦ Separate value-added steps from non-value-added steps

27. Step 3: Create Flow
◦ Eliminate or minimize non-value added steps
◦ Value adding steps flow in continuous manner

28. Step 4: Establish Pull
◦ Arranging processes into Cell structure
◦ Transparency and information Pulled rather than Pushed from one
component to another
◦ Pull based continuous system uncover hidden problems

29. Step 5: Seek Perfection
◦ Kaizen: Continuous incremental improvement
◦ Progressing towards ultimate goal of zero wastage
◦ Healthcare sector
◦ Ultimate goal - serve customer/patient quickly with optimum results
◦ Once case arrives in hospital minimal lead time
◦ Divide process of serving customer/patient into modules and improve every module
at every single stage

30. Step 5: Seek Perfection
◦ Jidoko: Built-in quality
◦ Cultivating culture of stopping to fix problems at root
◦ Error proofing
◦ Delivering right quality first time
◦ Enhance customers’ experience

31. Step 5: Seek Perfection
◦ Standardisation of work processes:
◦ Maintain predictability
◦ Regular timing
◦ Regular output from processes
◦ Mcdonalds, Dominos or Pizza Hut

32. Step 5: Seek Perfection
◦ Use of visual indicators
◦ Alert everyone as soon as system deviating from regular predicted
behaviour

33. Step 5: Seek Perfection
◦ Use Pull Systems to avoid overproduction
◦ Generate service only when assured of demand from next customer-
in-line
◦ Grow leaders from within rather than from hiring from outside

34. Step 5: Seek Perfection
◦ Genchi Genbutsu:
◦ Get on floor and see for yourself what the real problem is
◦ Take decisions slowly after total consensus of all stakeholders
◦ Implement them quickly

35. Lean Philosophy
◦ Not tool or technique
◦ Culture
◦ Cultivated within organization to succeed in long run

36. LEAN MANAGEMENT
Organization renews itself

38. Four Disciplines
◦ Reinforce one another
◦ Create adaptive organization
◦ Generate value for all stakeholders

39. Four Disciplines
◦ Tangible skills and ways of working
◦ People and organizations learn - over time culture - how people behave
and think

40. 1. Delivering value efficiently to customer
◦ Understand what customers truly value
◦ Where, when, how, and why
◦ Configure how it works
◦ Deliver exact value - no more and no less

41. 1. Delivering value efficiently to customer
◦ Fewest resources possible
◦ Improving coordination
◦ Eliminating redundancy
◦ Building quality into every process

42. 1. Delivering value efficiently to customer
◦ Cycle of listening and responding never ends
◦ Customer’s evolving needs reveal:
◦ New opportunities to attack waste
◦ Create new worth
◦ Build competitive advantage

43. 2. Enabling people to lead and contribute to
fullest potential
◦ Provide support mechanisms
◦ Truly master work
◦ Revamped physical space foster collaboration
◦ Visual-management techniques let everyone see what needs to be
done

44. 2. Enabling people to lead and contribute to
fullest potential
◦ Targeted coaching builds capabilities
◦ “Job aids” reinforce standards
◦ Employees own development

45. 3. Discovering better ways of working
◦ Continually think about today’s ways of working and managing
improveent
◦ Clear sense of what “better” means - ideal organization
◦ Unvarnished view of current conditions
◦ Ability to work with others to close gaps

46. 3. Discovering better ways of working
◦ Problem identification and resolution part of everyone’s job
description
◦ Problems flow to people best able to solve them

47. 4. Connecting strategy, goals, and meaningful
purpose
◦ Operate from clear direction
◦ Vision of what organization is for
◦ Shapes strategy and objectives

48. 4. Connecting strategy, goals, and meaningful
purpose
◦ Leaders articulate strategy and objectives people understand and
support
◦ Align individual goals to strategy and vision
◦ People fully understand role in organization and why it matters

49. Four Disciplines
◦ Build on one another
◦ New products deliver better value to customers
◦ Convince employees ideas matter
◦ Find new ways to respond to customers
◦ Clarify organization’s purpose

50. Four Disciplines
◦ Government agency evaluate what matters
◦ Reassess how work done
◦ Strategy consistent with mission
◦ Emphasize different disciplines at different times
◦ Need all to keep renewing itself
◦ Form lean-management system

51. Lean-
Management
System:
Four
integrated
disciplines

52. NEXT FRONTIERS

53. Lean In
◦ Put customers first by truly understanding what they need and
delivering it efficiently
◦ Enabling workers to contribute to fullest potential
◦ Constantly searching for better ways of working
◦ Giving meaning to work by connecting strategy and goals in clear,
coherent way

54. Lean In
◦ Biggest management idea of past 50 years
◦ Transformed how leading organizations think about operations
◦ Senior executives gain more exposure and deepen understanding

55. Lean In
◦ New technologies, new analytical tools, and new ways of looking at
customers
◦ Ultimate “North Star”
◦ Translate what customers value into additional improvements
◦ Bridge gaps among operations, marketing, and product development

56. New Horizons
◦ Lean not stationary
◦ Delighting customers
◦ Boosting productivity

57. Scientific Insights
◦ Product and service contribute to customer value
◦ New ways to look at - lead time, cost, quality, responsiveness, flexibility, and
reliability
◦ New opportunities for cross-functional problem solving to eliminate
anything that strays from customer-defined value

58. Future of Lean In
◦ Exciting
◦ Tools for eliminating waste
◦ Increasing value as customers define it
◦ Volume and quality of information about customer behaviour

59. Future of Lean In
◦ Marketing insights integrated with operations
◦ Psychological insights on customer’s needs and desires
◦ “Learning to see”

60. THANK YOU!