Question Matt Business & Management

The Principles Of Lean

What are the principles of Lean?

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Answer Internal Staff

Lean thinking has five core tenets:

Identify Value This means recognising what the customer finds valuable, or useful, about the product or service.

Identify the value stream This means recognising all activities that the product goes through are where these add the value identified in the first principle, how much they add and how they all link together. The activities can be represented in a Value Stream Map which helps to identify areas for improvement.

Create Flow This means creating a smooth progress of products through the stages of the value stream – avoiding delays, repeats, unnecessary steps and inventories/storage.

Establish Pull This means creating a system where product moves through the process based on demand. So you don’t create products to build up a big inventory, but create them to match the level of demand.

Aim for perfection This means continuous improvement, often called Kaizen. Where you constantly look to make small improvements in all areas of the business – reducing waste and increasing value. These principles work together to create an efficient business which aims to enhance customer value by targeting operations towards value creating activities and highly coordinated and regular production that meets demand precisely.