Lean Systems

In this lesson, we’ll learn about continuous improvement methods, or typically termed “lean”
systems.

It’s an operations manager’s #1 job to continually refine and improve processes and their
results. Many tools are available, and we’ll explore some of those here in this lesson.

Let’s explore the basics of “World-Class” status for your organization, and the introduction of
“Lean”.

First, what is “World-Class”?

• You are “the benchmark” in your industry
• You are always in relentless pursuit of industry excellence
• You live and breathe the principles of “lean”
• Your employees (content experts) lead the way…

And, as an Operations Manager, how can you lead your organization toward “World-Class”
status?
• You relentlessly pursue industry excellence
• You practice and role model the living and breathing of the principles of “lean”
• You get out of the way and let your employees (content experts) lead the way…

Now let’s define “Lean”.

• World Class performance is the goal and “Lean” is the vehicle
• “Lean” is canvas, the fabric, the foundation, the “intangible”
– It’s the way we think, act, respond, teach; it’s engrained in our culture
– Lean fosters continuous improvement
 • Lean utilizes many “tools”
– Process Mapping & Waste Elimination
– Kaizen
– Kanban
– Etc., etc., etc.

Here are some details about those tools:

Kaizen: A “blitz” to solve a problem, utilizing a multi-functional, multi-talented team with the
sole focus to improve the process.
Kanban: A system of automatic stock replenishment, controlling inventory levels and
connecting internal customers and suppliers within an organization.
Just-In-Time (JIT): Partnering with your external suppliers to install smaller, more frequent
deliveries in order to control your inventory levels.
• Waste Identification and Elimination: Identifying and eliminating those activities in your
operation that do not add value to the customer. Waste is anything beyond the
absolute minimum amount of resources (people, information, materials) to get the job
done.

Let’s explore what “value-added” means.

• Definition: Value-Add; Anything a customer is willing to pay for
• Definition: Non-Value-Add; Activities that take time, resources, or occupy space but a
customer is not willing to pay for it
• Remember, customers can be INTERNAL or EXTERNAL
Let’s now define the 7 categories of waste:
• Categories of Waste
– Waiting (Connections, Flows)
– Transportation (Activities)
– Motion (Activities)
– Over-processing (Connections, Flows)
– Overproduction (Activities)
– Inventory (Activities, Flows)
– Defects (Activities, Connections, Flows)

And now some examples:

• Waiting: Time spent waiting for the flow of people, information or materials is waste
• Transportation: Extra time and calories used to transport something (people,
information or materials) is waste
• Motion: Extra calories expended to reach, twist, bend to get your job done is waste
• Over-processing: Extra work done to complete your task is waste
• Overproduction: Producing and delivering too many/too much is waste
• Inventory: Holding and moving information or materials when they are not needed is
waste
• Defects: Having to do tasks over again (rework) is waste

Back to the basics on Lean:

The Big 3: People, Information and Materials
• People: Lean is about people, the way people think, how people behave, and how they
react
• Information: Lean needs information, not too little, not too much
• Materials: Physical ‘stuff’ to get the job done
Lean: People
• People perform physical tasks that we call ‘Activities’
• These activities need structure (should be documented)
• These activities should be standard (should be performed the same way every time!)
• People need to be clearly connected between other people (customers-suppliers),
information, and materials to perform their activities

Lean: Information
• Information needs to be specified, available, and to flow in just the right amount at the
right time

Lean: Materials
• Materials need to be specified, available, and to flow in just the right amount at the
right time

In conclusion, lean is really nothing more than the re-introduction of common sense into our
daily work lives.