The document discusses Lean, which aims to maximize customer value while minimizing waste. Key aspects of Lean covered include: - The five principles of Lean manufacturing: defining value, mapping the value stream, creating flow, using a pull system, and pursuing perfection. - The seven wastes in manufacturing: transportation, inventory, motion, waiting, over-processing, overproduction, and defects. - Value stream mapping provides a visual representation of material and information flow, helping to identify waste. A future state map represents the ideal flow.

1. LEAN- Key Facts
The core idea is to maximize customer value while minimizing waste. Simply, lean
means creating more value for customers with fewer resources.
A lean organization understands customer value and focuses its key processes to
continuously increase it. The ultimate goal is to provide perfect value to the customer
through a perfect value creation process that has zero waste.
To accomplish this, lean thinking changes the focus of management from optimizing
separate technologies, assets, and vertical departments to optimizing the flow of
products and services through entire value streams that flow horizontally across
technologies, assets, and departments to customers.
Eliminating waste along entire value streams, instead of at isolated points, creates
processes that need less human effort, less space, less capital, and less time to
make products and services at far less costs and with much fewer defects,
compared with traditional business systems. Companies are able to respond to
changing customer desires with high variety, high quality, low cost, and with very fast
throughput times. Also, information management becomes much simpler and more
accurate.
Purpose, Process, People
Womack and Jones recommend that managers and executives embarked on lean
transformations think about three fundamental business issues that should guide
the transformation of the entire organization:
Purpose: What customer problems will the enterprise solve to achieve its own
purpose of prospering?
Process: How will the organization assess each major value stream to make sure
each step is valuable, capable, available, adequate, flexible, and that all the steps
are linked by flow, pull, and levelling?
People: How can the organization ensure that every important process has
someone responsible for continually evaluating that value stream in terms of
business purpose and lean process? How can everyone touching the value stream
be actively engaged in operating it correctly and continually improving it?
Lean Thinking
Lean was born out of manufacturing practices but in recent time has transformed the
world of knowledge work and management. It encourages the practice of continuous
improvement and is based on the fundamental idea of respect for people. Womack
and Jones defined the five principles of Lean manufacturing in their book “The
Machine That Changed the World”. The five principles are considered a recipe for
improving workplace efficiency –

2. Lean Thinking lays out the five Lean manufacturing principles; value, value
streams, flow, pull, and perfection. Here’s some insight into what Womack and
Jones meant by each.
1) defining value,
2) mapping the value stream,
3) creating flow,
4) using a pull system, and
5) pursuing perfection.
The Five Lean Principles Explained:
5 principles of lean
Figure 1. The Five Lean Principles

3. 1. Define Value
To better understand the first principle of defining customer value, it is important to
understand what value is. Value is what the customer is willing to pay for. It is
paramount to discover the actual or latent needs of the customer. Sometimes
customers may not know what they want or are unable to articulate it. This is
especially common when it comes to novel products or technologies. There are
many techniques such as interviews, surveys, demographic information, and web
analytics that can help you decipher and discover what customers find valuable. By
using these qualitative and quantitative techniques you can uncover what customers
want, how they want the product or service to be delivered, and the price that they
afford.
2. Map the Value Stream
The second Lean principle is identifying and mapping the value stream. In this step,
the goal is to use the customer’s value as a reference point and identify all the
activities that contribute to these values. Activities that do not add value to the end
customer are considered waste. The waste can be broken into two categories: non-
valued added but necessary and non-value & unnecessary. The later is pure
waste and should be eliminated while the former should be reduced as much as
possible. By reducing and eliminating unnecessary processes or steps, you can
ensure that customers are getting exactly what they want while at the same time
reducing the cost of producing that product or service.
3. Create Flow
After removing the wastes from the value stream, the following action is to ensure
that the flow of the remaining steps run smoothly without interruptions or delays.

4. Some strategies for ensuring that value-adding activities flow smoothly include:
breaking down steps, reconfiguring the production steps, leveling out the workload,
creating cross-functional departments, and training employees to be multi-skilled and
adaptive.
4. Establish Pull
Inventory is considered one of the biggest wastes in any production system. The
goal of a pull-based system is to limit inventory and work in process (WIP) items
while ensuring that the requisite materials and information are available for a smooth
flow of work. In other words, a pull-based system allows for Just-in-time delivery and
manufacturing where products are created at the time that they are needed and in
just the quantities needed. Pull-based systems are always created from the needs of
the end customers. By following the value stream and working backwards through
the production system, you can ensure that the products produced will be able to
satisfy the needs of customers.
5. Pursue Perfection
Wastes are prevented through the achievement of the first four steps: 1) identifying
value, 2) mapping value stream, 3) creating flow, and 4) adopting a pull system.
However, the fifth step of pursuing perfection is the most important among them all.
It makes Lean thinking and continuous process improvement a part of the
organizational culture. Every employee should strive towards perfection while
delivering products based on the customer needs. The company should be a
learning organization and always find ways to get a little better each and every day.
Applying the Principles
The five Lean principles provide a framework for creating an efficient and effective
organization. Lean allows managers to discover inefficiencies in their organization
and deliver better value to customers. The principles encourage creating better flow
in work processes and developing a continuous improvement culture. By practicing
all 5 principles, an organization can remain competitive, increase the value delivered
to the customers, decrease the cost of doing business, and increase their
profitability.
7 Wastes of Lean Manufacturing - Ohno
The seven wastes of Lean Manufacturing are what we are aiming to remove from
our processes by removing the causes of Mura and Muri as well as tackling Muda
directly. But what exactly are the seven wastes of Lean Manufacturing (or 7 Mudas)?
The Seven Wastes of Lean Manufacturing are;

5. 1. Transport
2. Inventory
3. Motion
4. Waiting
5. Over-Processing
6. Overproduction
7. Defects
7 Wastes in Manufacturing
1. Transportation – in production it may mean moving parts and materials from
one place to another
2. Inventory – undelivered products or parts. Overstocking with equipment that
may be in need somewhere in the future
3. Motion – unnecessary movement of employees or machinery
4. Waiting – waiting for goods to be delivered
5. Overproduction – too many items produced “just in case”
6. Over-processing – Spending a lot of time on a given task. Adding a feature
that doesn’t bring value
7. Defects – broken parts or defected parts that need to be reworked
AN EIGHTH DEADLYWASTE
An extremely important form of waste that is not represented within the Seven
Deadly Wastes is unused human potential. This form of waste results in all sorts of
lost opportunities (e.g. lost motivation, lost creativity, and lost ideas).

6. The 3Ms of Lean
Some supply chains may require AGILE rather than lean- due to volatility of demand

7. Coca Cola Example
Did you know that it takes 319 days to produce Coca Cola from the point that it is
bauxite to the point that is ready for sales in your average Tesco store[2]?
The amount of time when value is actually being created (3 hours) is infinitesimal in
relation to the total time (319 days) from bauxite to recycling bin. More than 99
percent of the time the value stream is not flowing at all: the Muda of waiting.
Second, the can and the aluminium going into it are picked up and put down thirty
times. From the customer's standpoint none of this adds any value: the Muda of
transport. Similarly, the aluminium and cans are moved through fourteen storage lots
and warehouses, many of them vast, and the cans are palletized and unpalletized
four times: the Muda of inventories and excess processing. Finally, fully 24 percent
of the energy-intensive, expensive aluminium coming out of the smelter never makes
it to the customer: the Muda of defects (causing scrap).
Velocity ratio Coca Cola=Value added time/total processing
time=3h/7656h=0,00039%
Lean production
Advantages Disadvantages
•Lead times are cut
•Damage, waste and loss of
stocks/equipment are lowered
•A greater focus on customer needs
•Improved quality through the
introduction of kaizen and quality
circles
•Lower costs and contribute to
improved profits
•Staff are more involved and
potentially more motivated
•Working environments are safer and
cleaner
•Reduced floor space
•Improved flexibility to react to
changes
Efficiency-By defining processes,
developing management and
implementing strategies such as the
5 S’s (Sort, Streamline, Shine,
Standardise and Sustain), companies
can therefore improve productivity.
•The business may struggle to meet orders if
their suppliers fail to deliver raw materials on
time or of the right quality!!
•The business is unlikely to 'bulk buy' its raw
materials and, therefore, it may lose the
benefit of achieving economies of scale
•Buffer stocks are minimal and this may lead
to the business having to reject customer
orders requiring delivery immediately
•Commitment- For Lean to be successful,
commitment and focus are need by all
involved. Team unity and sometimes
additionally training are required.
Time-Adopting anything into a company can
be tricky but more significantly, it can be time
consuming. Instant results are not
guaranteed as it takes time to implement
new techniques.
Lean production reduces waste and the costs involved in stock, therefore improving

8. profits. However, the business will need to build a good relationship with the supplier
because they will be reliant upon them. if they are not this could lead to a bad
reputation and damaged brand image
Lean Features and Benefits are:
● It targets significant opportunity – the supply chain can account for over 65% of
operating costs
● Waste elimination, leading to cost savings without profit erosion
● It encourages strategy alignment of key suppliers with own business strategy
● Standard performance metrics against supply chain management processes.
● Enhanced customer perspective – innovative supply chain
● Supplier perspective – partnership, joint improvement
● Focus on hidden costs that are not recovered in the selling price
● Competitive advantage gained from a supply chain having shared goals and
objectives

9. https://the-lmj.com/2015/06/strategy-for-lean-supply-chains/
VSM
Describes both information and material flow side‐by‐side, and indicates both cost
accumulation and build‐up of value.
A Value stream map is a representation of the flow of materials from supplier to
customer through your organization as well as the flow of information. This enables
you to see at a glance where the delays are in your process, any restraints and
excessive inventory. Your current state map is the first step in working towards
your ideal state for your organization.
Value stream mapping provides a visual representation of the flow of materials and
information throughout the organization. It helps to identify, demonstrate, reduce
waste and finally create effective flow through all the processes in the manufacturing
organization.

10. How to create a VSM - one step at a time
i. Identify a slice of the product
Identify a slice of the product that has high business value, since that will make it
easier to establish the RoIe of conducting VSM.
ii. Empower the right team
Empower a mature and experienced team who can skillfully finish the map in a
timely fashion. The C-suite should set aside enough budget to ensure that execution
is uninterrupted.

11. iii. Decide the problem you are solving for
What problem are you solving from the customer’s standpoint? Are your customers
requesting a drop in price or an increase in quality? Or both? Publish the problem
statement and get everyone on the same page.
iv. Bound the process
Once the problem statement is published, limit the scope of your VSM accordingly.
You may not need to map the release process in its entirety, and focus on a
particular area instead.
v. Map the bounded process
Try to go through the bounded process yourself. This can make a difference, since
firsthand experience cannot be substituted by (possibly biased) narratives and
(possibly incomplete and inaccurate) documentation done by others.
Define the steps. I do the VSM walk a few times instead of just once. This sounds
redundant, however, I found missing pieces in the second pass that were not
exposed in the first pass. And when we dug some more, skeletons fell out of the
closet in the third (and final) pass! They say, the 3rd time's the charm! Sure it was.
vi. Collect process data
As you do the VSM walk, note the process data in the data boxes of the map.
Process data includes (but is not limited to) number of people involved, the average
number of working hours, cycle time, wait time, uptime, downtime, and the like.
vii. Create a timeline
Map out process times and lead times.
viii. Assess your current map
Be inquisitive. Curiosity never killed the cat, and they have nine lives anyways!
Is your lead time too long? And if yes, is it because your test suites don’t (or can’t)
run in parallel? Do you have stable environments, or do you observe intermittent test
failures that the teams cannot reproduce?
Or maybe, you have process steps that you think are valuable but don’t mean
anything to the customer? Regarding the information flow, look for stagnation and
drag in the flow. Note whether it was a push versus a pull.
ix. Design the future map

12. You may not be able to nail a full and final version, and that’s okay. Make sure you
new map aligns with the company’s vision.
Also, nothing is set in stone. Based on customer needs, make continuous
adjustments.
x. Implement the future map
Follow the VSM of the future and validate that it makes better sense for the
customers. It should have solved the problem statement that you started with.
Monitor KPIs regularly and learn from trends. Make sure everyone is rowing in the
direction of customers.
https://www.atlassian.com/continuous-delivery/principles/value-stream-mapping
Source: Wikipedia
At the kaizen event, the team must complete four important steps:
1. Determine the process family.

13. 2. Draw the current state map.
3. Determine and draw the future state map.
4. Draft a plan to arrive at the future state.
Once these four steps have been completed and the team agrees with the plans and
tactics, the VSM team can proceed to the next steps.
Question
Value stream mapping provides a visual representation of the flow of materials and
___________ throughout the organization.
a) Inventory
b) Information
c) Value
d) Volume
A future state map is?
Gemba Glossary: Value Stream Mapping 2m 02s
https://youtu.be/Zl5cGLP3dtI
Learn How Value Stream Mapping Applies to Any Industry or Process 13m 24s
https://youtu.be/gg5u9kn0Bzo
Mapping Your Value Stream 2m 20
https://youtu.be/LyEyW6LFVtA
more video links at
https://sixsigmastudyguide.com/value-stream-mapping/
A future state map represents the ultimate goal of the improvement process and
provides an objective to work towards.