Definition of Lean, Defining Value and Waste

Lean Definition

Lean has been defined in many different ways

“A systematic approach to identifying & eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.”

• A culture, more than a set of efficiency & improvement techniques
• A set of principles used to enable the manufacture of goods with fewer resources
• Adding value & eliminating waste
• Combinations of tools & techniques
• Most of lean manufacturing is common sense!

Defining Value and Waste

• Value - An item or feature for which a customer willing to pay
• Everything else – Waste
• Waste - Activities that consume time, resource &/or space but do not add value
• Lean - Production of product to meet demand on daily basis with minimum lead time & non value added activities eliminated or minimized

Focus on Waste

• The value adding parts of the process are obvious, so companies mistakenly focuses on trying to make them faster. The waste is not obvious so it is not addressed
• Lean focuses on eliminating the waste.

Considering Lean as Lean Manufacturing is a tragedy because it results

• Lean Focused on Manufacturing
• Lean Is Just a Minor Part of Strategy

Lean is the Greatest Wealth Creator… Ever