Resources - Lean

Lean explanation

Lean is the term used to describe the production system developed by Toyota. 'Lean' comes from the ability to achieve more with less resource, by the continuous elimination of waste. The key principle of lean is that waste is defined as anything that does not add value in the eyes of the customer.

The idea of Lean today is not restricted to manufacturing and it can be applied to the whole enterprise, and indeed the whole the supply chain. In the book, 'Lean Thinking', five Lean Principles are defined : -

1. Specify value in the eyes of the customer
2. Identify the value stream and eliminate waste
3. Make value flow at the pull of the customer
4. Involve and empower employees
5. Continuously improve in pursuit of perfection

Within the Toyota production system, 7 wastes were defined : -

1. Transportation
2. Inventory
3. Motion
4. Waiting time
5. Over-production
6. Over-processing
7. Defects

Lean tools are used to identify and eliminate waste in all its forms from business processes to improve efficiency. By eliminating waste and improving efficiency, time and costs are reduced, and quality is often also improved.

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