In this part . . .
Chapter 1
Defining Lean
In This Chapter
Understanding that Lean is a philosophy, a framework, a methodology, techniques, and tools
Probing the Lean pedigree
Figuring out how Lean fits in with the global family of business improvement systems
When you first hear the word lean, it conjures up an image. Most likely, you’re seeing a mental picture of thin people — like long-distance runners, or those aerobics junkies who somehow don’t seem to have an ounce of extra fat on them. Or maybe you’re thinking about lean food — the foods that are lower in fat and, of course, much better for you. Lean also implies lightweight, in the sense of speed and agility, with a sort of edge or underlying aggressiveness that recalls the rhyme “lean and mean.”
That’s because the word lean suggests not only a physical condition, but also a certain discipline — a mental toughness. The notion of Lean carries with it a commitment to a set of principles and practices that not only get you fit, but keep you fit. People who are lean seem to be that way not just temporarily, but continuously. Lean people are committed to being lean; they act a certain way in their habits and routines. Lean isn’t a fad or diet — it’s a way of life.
Now take this concept and apply it to a business or organization. What do you see? What does lean mean, business-wise? Back in 1988, a group of researchers working at the Massachusetts Institute of Technology (MIT), led by Dr. James P. Womack, were examining the international automotive industry, and observed unique behaviors at the Toyota Motor Company (TMC). Researcher John Krafcik and the others struggled with a term to describe what they were seeing. They looked at all the performance attributes of a Toyota-style system, compared to traditional mass production. What they saw was a company that:
Needed less effort to design, make, and service their products
Required less investment to achieve a given level of production capacity
Produced products with fewer defects
Performed its key processes — including concept-to-launch, order-to-delivery, and problem-to-repair — in less time and with less effort
Needed less inventory at every step
Had fewer employee injuries
They concluded that a company like this, a company that uses less of everything, is a “lean” company.
And just like that, the term lean became associated with a certain business capability — the ability to accomplish more with less. Lean organizations use less human effort to perform their work, less material to create their products and services, less time to develop them, and less energy and space to produce them. They’re oriented toward customer demand, and develop high-quality products and services in the most effective and economical manner possible. (See Table 1-1 for a comparison of mass production and Lean.)
The practice of Lean — from here on capitalized because, in this context, it’s a proper noun — is, therefore, a commitment to the set of tenets and behaviors that not only gets your organization fit, but keeps it that way.
Table 1-1 The Lean Enterprise versus Traditional Mass Production | | Mass Production | Lean Enterprise |
| Primary | A product-centric strategy. | A customer-focused strategy. |
| business | Focus is on exploiting | Focus is on identifying |
| | economies of scale of | and exploiting shifts in |
| | stable product designs | competitive advantage. |
| | and non-unique technologies. | |
| Organizational | Hierarchical structures along | Flat, flexible structures along |
| structure | functional lines. Encourages | lines of value creation. |
| | functional alignments and | Encourages individual |
| | following orders. Inhibits the | initiative and the flow of |
| | flow of vital information that | information highlighting |
| | highlights defects, operator | defects, operator errors, |
| | errors, equipment abnormalities, | equipment abnormalities, and |
| | and organizational deficiencies. | organizational deficiencies. |
| Operational | Application of tools along | Application of tools that |
| framework | divisions of labor. Following of | assume standardized work. |
| | orders, and few problem-solving | Strength in problem identifi- |
| | skills. | cation, hypothesis generation, |
| | and experimentation. |
Lean has become a worldwide movement. Lean concepts aren’t new; the techniques, in various forms, have been practiced in companies large and small around the globe for decades. But the term Lean has crystallized a particular set of ideas and concepts:
Maintaining an unrelenting focus on providing customer value
Adopting a philosophy of continuous, incremental improvement
Providing exactly what’s needed at the right time, based on customer demand
Keeping things moving — in a value-added, effective manner
Using techniques for reducing variation and eliminating waste
Taking the long-term view
Lean has been adopted across a broad range of industries, most notably automotive, but also aerospace, banking, construction, energy, healthcare, and government. Dozens of consulting firms, hundreds of training courses, and thousands of books and articles all chronicle the many aspects of Lean practice. Consulting firms have developed Lean implementation programs for every business function, including management, manufacturing, administration, supply chains, product design, and even software development. Lean has become a recognized methodology. It even has an award: The Shingo Prize, called “the Nobel Prize of Manufacturing” by Business Week, was developed to promote Lean practices, and has been awarded in North America each year since 1988. Honoring the renowned eng...
