Lean thinking is all about enhancing value for the Customer by improving service delivery and eliminating Waste. The lean thinking philosophy was coined by Japanese thinkers which is based on the Toyota Production System(TPS).Personal Effectiveness ‘X’ Increased Productivity ‘=’ Create Value for the Customer
In a more simplified way…
Lean thinking is all about learning to see how things are connected within an overall system and subsequently work towards optimizing People, Process, Partners and Technology so that Customer gets the value for money spent.
Let’s summarize the 5 Principles of Lean thinking which when adapted leads to superior and sustained service delivery and value creation for both Customer and Service Provider.
- Creating Value
We must have a detailed understanding of what services and product the Customer is ready to pay for over and over again. In my understanding, value creation is not a one-time activity. It is a chain reaction and continues to evolve with the eco-system.
Understanding and establishing ‘value’ allows organizations to set a target price.
For. Example: Making the Customer feel Valued. Smiling and greeting the Customer when he walks into the branch makes the Customer feel valued
- The Value Stream
Value Stream mapping(VSM) helps us segregate a process into three segments
- Customer Value Added
- Business Value Added
- Non- Value Added
The value stream is a walk thru of the entire life-cycle of a product from the raw materials through to the customer’s use, and eventual disposal/end of the Product life. Steps that do not add value either to Business or Customer is eliminate, thereby making the process cost effective and time effective.
Understanding the end to end process flow is very important for understanding the gaps (wastes) in the process and subsequently eliminating waste. The Lean principle of flow emphasis on creating a value chain with no speed breakers (Blockages) in the manufacturing/delivery of products and services.
Just -In-Time delivery of Processes and Products. Lean concepts recommends doing away the old process of Manufacturing basis ling term forecast. The catch here is that you need to have a very string and real time communication process in place.
For example, You Pull the door only when you want to open it and move out. It’s not the other way around like you want to go out in the next one hour, so you will keep the door open.
- Continuous Perfection
Continuous improvement strategy leads to identifying root causes in the process and subsequently driven Lean waste elimination strategy which leads to sustained improved processes.
By adopting and implementing, Lean thinking strategy, we are able to reduce required efforts, time taken to deliver a product/Service, space for manufacturing and storage, cost and mistakes while offering a product to the customer.
‘Perfection is not attainable, but if we chase perfection we can catch excellence’ – Vince Lombardi