Lean Management Proficiency Test – Level 1

What is Lean?

Lean is not a tool, it is a way of thinking. Lean can be applied in all walks of Life. So simply Lean is a way of life

Lean is a strategy that focuses on relentless elimination of wastes with the objective of making every step, task, & activity creates value for the customers.

Lean also means doing more with less – Less Time, less space, less human effort, less machinery, less material – while giving customers what they want

Though the principles are derived from Japanese Auto maker TOYOTA, the name Lean is the term was first coined by John Krafcik in his 1988 article, “Triumph of the Lean Production System,” based on his master’s thesis at the MIT Sloan School of Management.�

After a team from MIT under the leadership of Jim Womack published the Book named “The Machine that changed the world” in 1990s, the black box of Toyota production System was opened for external world. Today Lean is used as No 1 Strategy for Operational Excellence by most of the leading organizations throughout the world. Initially the application of Lean principles was limited to engineering particularly automotive industries but during the last decade lean is adapted by many other Industries including IT, Education and Healthcare.

Why lean a powerful strategy for Operational Excellence?

Ø  First reason is its simplicity.  It does not require any special knowledge except Conviction, Discipline and Commitment.

Ø   It is a very good cultural transformation tool. Makes every employee to recognize waste and contribute for its elimination

Ø  It helps in Reducing lead-times to the extent up to 90 % which makes customer delighted

Ø  It helps to find and solve problem in a fastest way before it becomes very expensive.

Ø  It allows decision making at the bottom most level in the organization

Ø  It helps in reducing  inventory and effective utilization of space

Overall it improves Business results significantly, including profitability.

Myths and Facts about Lean

Ø  Myth: Lean is intended to reduce man power

Fact: Lean is intended to eliminate waste not people. In reality, lean provides lot of opportunities for people to grow both intellectually and financially.

Ø  Myth: Lean works only in Mass Production/Automotive Industry.

Fact: Lean can be applied to any Industries. Lean is a proven concept even in Industries like IT, BPO, Healthcare, Pharma, Banks, Education, Hotels etc… Lean can also be implemented on high impact public sector projects like Traffic Management in Metro cities. Lean works equally well in Low volume; High variety environment

Ø  Myth: My organization is already lean.

Fact: No organization is perfect. Even Toyota says “Today’s perfection is tomorrow’s mediocrity”. Lean is a Journey and not a destination.

Ø  Myth: Lean will not work in unionized organizations ( with Trade unions)

Fact: Lean works equally well in unionized environment. But it needs to be communicated properly and buy-in should be obtained before starting the journey.

Principles which helps in successful implementation of Lean

Ø  Leaders at the top level should lead by example

Ø  Lean is not just tools. It is a Culture, development of people.

Ø  Employees should be allowed to stop production to solve problems as and when they occur. Solve the root cause not symptoms

Ø  Quick response to any problems/abnormalities

Ø  Lean is not a quick fix. It should be implemented with long-term results in mind

Ø  Encourage employees to solve problems using Kaizens (Continual Improvement ideas)

Ø  Focus on both process and Results

Ø  Hate all Seven Wastes and work towards eliminating them ( Overproduction, Inventory, Waiting, Motion, Extra Process, Transportation and Defects)

Ø  Respect for people and Time

Ø  Commitment to continuous learning.

Ø  Lean is not a tool , it is way of thinking

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