EBOOK

LEAN MODEL:
WHAT IS IT AND
WHY APPLY IT TO
YOUR COMPANY
LEAN MODEL: WHAT IS IT AND WHY APPLY IT TO YOUR COMPANY | MJV TECHNOLOGY & INNOVATION. ALL RIGHTS RESERVED.

INDEX

2
11 CONCLUSION
3 INTRODUCTION

6 THE 8 TYPES OF WASTE

8 FRAMEWORKS AND TOOLS

4 THE 5 PRINCIPLES OF LEAN
 INTRODUCTION

The term lean means slim. Meaning that, in essence, the Lean
model aims to eliminate waste. The term first appeared in 1990
in the book The Machine that Changed the World by Womack,
Jones and Roos, published in the United States. Its content
addresses the automotive industry - more precisely the Toyota
Production System or Toyotism - with an iconic approach to
productivity, quality, and optimization of time and product
development costs.

Initially, companies like Toyota focused on the production area.

Today, Lean's philosophy is broadly applied to all dimensions
of business within an organization. And the Lean model is
considered highly valuable for the creation of products and
services. In addition to the automotive industry, Lean Thinking
can - and should - be adopted in other sectors, such as food,
steel, textiles, technology, etc.
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3
 For the success of Lean transformation, the ideal scenario is
that the concept be applied in all areas of the company, from
Legal to Human Resources, through Technology, Marketing,
Commercial, among others.

It is important to understand and identify where there is more

waste and offer opportunities for improvement in these areas,
with substantial impacts on the business equation. But this
should be done in favour of the business as a whole.
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4
 THE 5 PRINCIPLES OF LEAN

Each company has its sector, its target audience and different
offerings. Companies have their own specific identity and stand
out from others due to the sector they operate in or earnings,
but also for the clear development and dissemination of their
mission and vision.

Lean orbits around a word absolutely essential to business:

VALUE. What is value, from the customer's point of view? It
seems simple, but the process of identifying value behind
products and services is often a complex task since value is
relative. And the Lean model works exactly in this paradigm.

The Lean is comprised of 5 principles that help guide the

definition and monitoring of the value proposition. They are:

VALUE
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It is up to the customer - not the company - to define what

delivering value is. For the customer, the need generates the
value. The role of companies is to identify, understand and
satisfy these needs.

5
 FLOW OF VALUE

Basically, it consists of mapping the productive chain, sorting

the processes into three types: those that, in fact, generate
value; those that do not generate value but are important for
the maintenance of processes and quality; and, finally, those
that have no value, considered genuinely wasteful.

CONTINUOUS FLOW
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To provide fluency and optimization for the remaining processes

and activities changes the mindset. The effect of experiencing a
continuous flow scenario is quite positive when one observes
the increase of productivity, quality and also reduction of time
and cost in the various stages.

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 PULLED PRODUCTION

Continuous flow allows the reversal of the production flow: the

company no longer "pushes" its products towards the consumer
using discounts and promotions. The consumer is the one
who "pulls" production, eliminating stocks. The customer now
demands from the company.

PERFECTION
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Achieving perfection is the goal of those involved in the Flow of

Value. The pursuit of continuous improvement towards an ideal
state must guide all the company's efforts. It is the continuous
search for better ways to create value.

7
THE 8 TYPES OF WASTE

By definition, waste happens when an activity that consumes

resources does not generate value for the customer. It is
worth mentioning that most waste is related to productivity
and quality. So in a company, the biggest potential source of
improvement in performance or consumer experience is the
elimination of as much waste as possible.

Lean Thinking considers it essential to eliminate 8 types of

waste that commonly occur in organizations. They are:

FRAMEWORKS AND TOOLS

Lean Thinking is a philosophy that focuses on lack of waste,

but it can also be considered a management system, business
strategy or a practical framework, aimed exclusively at
increasing customer satisfaction. Practical approaches to adopt
the Lean are numerous. See the most important ones below:

LEAN MANUFACTURING SYSTEM

This system seeks to reduce 8 types of waste, meaning factors
that do not add value to the marketed product, from the
perspective of the customer. Waste such as transportation,
inventory, handling, waiting, overproduction, over-processing
and defects are considerably reduced through the Lean
Manufacturing system.

8
LEAN SIX SIGMA
A Framework focused on customer satisfaction and controlling
variations. Focused on deliveries and how to minimize variations
between them. It starts with data collection, which can range
from a few days to weeks, depending on the focus of the analysis.
Subsequently, there is the elaboration of statistics to understand
variations. Next comes the step of testing the hypothesis that
aims to minimize variations. Six Sigma is dedicated to controlling
variations since the timeframe for completion can take weeks to
months.

LEAN STARTUP
It is a methodology originally conceived for startups but has
since become a cohesive method and applicable to any corporate
context. Building (ideas), Measuring (the product) and Learning
(through data) are the proposed steps. It is recommended that
Lean Startup be adopted in addition to other tools so that its
applicability and results can be measured (for example, the
Scrum framework).

5S METHODOLOGY
The 5S Methodology is named after the first letter of 5
Japanese words: Seiri (Use), Seiton (storage), Seiso (cleaning),
Shitsuke (Discipline) and Seiketsu (hygiene). The methodology
allows for the development of systematic planning, allowing,
at once, greater productivity, safety, organizational climate
and employee motivation, with consequent improvement
of organizational competitiveness. The purposes of the 5S
methodology are to improve efficiency by properly disposing
of materials (separating what is necessary from unnecessary),
organizing, cleaning and identifying materials and spaces, and
maintaining and improving 5S itself.

9
VSM (Value Stream Mapping)
Value Stream Mapping is usually the first tool to be used in a
lean production scenario. Through VSM, we can identify and
differentiate activities that add value to the customer from
those that are wasteful - and must, therefore, be eliminated.
The tool helps in identifying, prioritizing and planning actions
that lead to significant waste and cost reductions.

HEIJUNKA
Heijunka is the act of levelling out the variety or volume of items
produced in a process over a given period of time. It is a concept
that is related to the programming of the production and is the
main tool in generating flexibility and stability in the production.
The application of heijunka consists of levelling the production
according to the total customer order, converting customer
demand instability into a less-than-unpredictable process.

KANBAN
Kanban is a supply and inventory control system. It was based
on a visual supply system for a supermarket: as products are
sold (consumed), the empty spaces are replenished. In Kanban,
cards are used for the control of demands. It is an approach
that assists in the understanding and visibility of the flow of
demands of a production conveyor belt.

PDCA
PDCA (Plan - Do - Check - Act) is an iterative, 4-step,
management method, used for the continuous control and
improvement of processes and products. A fundamental
principle of the method is iteration (repetition), once a
hypothesis is confirmed (or denied), executing the cycle again
will lead to more knowledge going forward. Repeating the PDCA
cycle brings organizations closer to improve the performance
of a product and/or service, as continuous improvement is an
evolutionary process that does not necessarily have an end.

10
 CONCLUSION

When a company adopts a new process model, it is necessary

to move past challenges and overcome them in order to
achieve competitive advantages in the market in which it
operates. Opting for the Lean philosophy means adopting and
aggregating the concepts presented here across all activities
and sectors of the organization. An organizational culture that
values continuous improvement and the participation of all is
essential, as well as the involvement of all areas.
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11
ABOUT MJV

MJV is a 20-year old consulting firm specializing in technology and

innovation services. With a structure of more than 400 employees and
eight offices, the company serves the Latin American, European and
United States market.

The services we provide are classified into four business units:

innovation consulting, technology services, digital strategy and staff
outsourcing of experts in Design Thinking, IT, UX and Marketing.

Based on inside knowledge, two very successful books have been

released, both available for free download: Design Thinking - Business
Innovation with over 200,000 downloads, and Gamification Inc. - How
to reinvent companies from games.

Our mission is to support companies in search of change, working

collaboratively toward disruptive business solutions.

MAURÍCIO VIANNA
CEO
mvianna@mjvinnovation.com

YSMAR VIANNA
Chairman
yvianna@mjvinnovation.com
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