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What is Lean?
• Maximising customer value, while minimising
waste

Or
• Creating more value for customers with fewer
resources

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
What is Lean?
• A lean organisation understands what their customers
value

• Then focusses on the key processes in the business to
increase that value

• And minimises the waste in the process

Who does it apply to?
• All businesses – NOT just in manufacturing
Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
Why Lean?
• Imagine the benefits to your business of only
spending time on processes that your customers
value and are willing to pay for, and using less
resource to do it…

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The core principles of Lean
1. Specify value from the viewpoint of the end customer
•
•
•
•

Recognise that a small amount of time and effort actually adds
value to the customer
Define what a customer values
Evaluate how we deliver that value
Remove the waste from the system (anything which doesn’t add
value)

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The core principles of Lean
2. Identify all the steps in the value stream for each
product family

•
•
•

How do we go about delivering the product/service to the
customer?
Do all the steps add value?
Is the process in each step optimal?

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The core principles of Lean
3. Create flow, by eliminating waste
•
•
•

Most businesses start with just 5% of activities actually adding
value!
Flow is created by removing ‘waste’ from each step, and…
In between each step

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The core principles of Lean
4. Respond to customer pull
•

Understand customer demand, so that we only produce what
the customer wants, when they want it

5. Pursue perfection
•
•

The leaner we become, the more waste becomes more visible
The greatest gains come once we are analysing the relationship
between processes rather than the elements themselves

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The core principles of Lean?
Identify
value

Map the
value
stream

Seek
perfection

Create
flow

Establish
pull
Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
Knowing what customers
value?
There are three key conditions we must meet when
defining what customers will value

•
•
•

It must transform the product or service
The customer must be willing to ‘pay’ for it
It must be done correctly the first time

Only if all three criteria are met, does the process ‘add value’

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
Mapping the value chain
•

•
•

Identifying each step which we go through to deliver the product
or service to the end customer, and…

The paths between them
Then identifying areas of waste in these processes

Inbound
logistics

Operations

Outbound
logistics

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk

Marketing
& Sales

Service
Defining waste in lean
• According to lean – waste comes in three main forms:
•
•
•

Waste due to variation
Waste due to overburdening systems, people or equipment
The seven forms of waste…

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The seven forms of waste
•
•
•
•

Transportation – is there unnecessary movement of
parts, materials or information?
Waiting – Is any resource idle, waiting for something else to
complete?
Overproduction – Are you producing sooner, faster or in greater
quantities than the customer demands?
Defects - Does the system result in anything the customer
would reject

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
The seven forms of waste
•
•
•

Inventory – Do you have materials, work in
progress or finished goods that are not
having value added to them?
Movement – How much are resources being
moved within a processing step?
Extra processing – How much extra work is
performed beyond the standard required by
the customer?

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
Where do I start with lean?
•

•
•
•

Find a lean champion –You need to find a leader
within the business who will take responsibility
for delivering lean

Get the knowledge – Get your management
trained and consider a lean consultant to support
your business
Find a lever – Use a crisis in the business or a
high-performing competitor which creates the
imperative
Map the streams – Look at your processes by
product, and start identifying waste
Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
Avoid the common pitfalls?
•
•

•
•

Lean is NOT a headcount reduction method– Remember the
purpose of lean – to add value to customers. Use staff to create
value
Implement lean as part of the overall system – One off
elements alone will not always add value
Limit the scope – Create a project which is small enough to
manage and succeed at, but big enough to make a difference
Be prepared for greater challenges – Be aware that lean will be
a challenging process and may well uncover difficult issues

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk
Pathway Group
•
•

provide consulting support and also approved training in lean
processes and lean management techniques
to find out more about implementing lean in your business
contact Pathway Group for an initial meeting

Email us – enterprise@pathwaygroup.co.uk or
call 0121 707 0550 / 0800 955 0870

Need advice on lean? – contact:
enterprise@pathwaygroup.co.uk

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What is lean and where do I start? lean professional training by Pathway Group, Birmingham

  • 1.
  • 2. What is Lean? • Maximising customer value, while minimising waste Or • Creating more value for customers with fewer resources Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 3. What is Lean? • A lean organisation understands what their customers value • Then focusses on the key processes in the business to increase that value • And minimises the waste in the process Who does it apply to? • All businesses – NOT just in manufacturing Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 4. Why Lean? • Imagine the benefits to your business of only spending time on processes that your customers value and are willing to pay for, and using less resource to do it… Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 5. The core principles of Lean 1. Specify value from the viewpoint of the end customer • • • • Recognise that a small amount of time and effort actually adds value to the customer Define what a customer values Evaluate how we deliver that value Remove the waste from the system (anything which doesn’t add value) Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 6. The core principles of Lean 2. Identify all the steps in the value stream for each product family • • • How do we go about delivering the product/service to the customer? Do all the steps add value? Is the process in each step optimal? Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 7. The core principles of Lean 3. Create flow, by eliminating waste • • • Most businesses start with just 5% of activities actually adding value! Flow is created by removing ‘waste’ from each step, and… In between each step Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 8. The core principles of Lean 4. Respond to customer pull • Understand customer demand, so that we only produce what the customer wants, when they want it 5. Pursue perfection • • The leaner we become, the more waste becomes more visible The greatest gains come once we are analysing the relationship between processes rather than the elements themselves Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 9. The core principles of Lean? Identify value Map the value stream Seek perfection Create flow Establish pull Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 10. Knowing what customers value? There are three key conditions we must meet when defining what customers will value • • • It must transform the product or service The customer must be willing to ‘pay’ for it It must be done correctly the first time Only if all three criteria are met, does the process ‘add value’ Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 11. Mapping the value chain • • • Identifying each step which we go through to deliver the product or service to the end customer, and… The paths between them Then identifying areas of waste in these processes Inbound logistics Operations Outbound logistics Need advice on lean? – contact: enterprise@pathwaygroup.co.uk Marketing & Sales Service
  • 12. Defining waste in lean • According to lean – waste comes in three main forms: • • • Waste due to variation Waste due to overburdening systems, people or equipment The seven forms of waste… Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 13. The seven forms of waste • • • • Transportation – is there unnecessary movement of parts, materials or information? Waiting – Is any resource idle, waiting for something else to complete? Overproduction – Are you producing sooner, faster or in greater quantities than the customer demands? Defects - Does the system result in anything the customer would reject Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 14. The seven forms of waste • • • Inventory – Do you have materials, work in progress or finished goods that are not having value added to them? Movement – How much are resources being moved within a processing step? Extra processing – How much extra work is performed beyond the standard required by the customer? Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 15. Where do I start with lean? • • • • Find a lean champion –You need to find a leader within the business who will take responsibility for delivering lean Get the knowledge – Get your management trained and consider a lean consultant to support your business Find a lever – Use a crisis in the business or a high-performing competitor which creates the imperative Map the streams – Look at your processes by product, and start identifying waste Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 16. Avoid the common pitfalls? • • • • Lean is NOT a headcount reduction method– Remember the purpose of lean – to add value to customers. Use staff to create value Implement lean as part of the overall system – One off elements alone will not always add value Limit the scope – Create a project which is small enough to manage and succeed at, but big enough to make a difference Be prepared for greater challenges – Be aware that lean will be a challenging process and may well uncover difficult issues Need advice on lean? – contact: enterprise@pathwaygroup.co.uk
  • 17. Pathway Group • • provide consulting support and also approved training in lean processes and lean management techniques to find out more about implementing lean in your business contact Pathway Group for an initial meeting Email us – enterprise@pathwaygroup.co.uk or call 0121 707 0550 / 0800 955 0870 Need advice on lean? – contact: enterprise@pathwaygroup.co.uk