Five Principles of Lean Thinking

Welcome to the first chapter of our Lean Thinking journey!

In this brief yet impactful session, we'll explore the five core principles that form the foundation of Lean Thinking.

These principles guide organizations in delivering maximum value to customers while minimizing waste:

1. Define value for customer
2. Map the value stream
3. Create flow
4. Establish Pull
5. Pursue Perfection

1. Define Value

Value is what the customer is willing to pay for. It's essential to understand customer needs and expectations to deliver products or services that meet or exceed them. Usually we use 3 categories as Quality - Cost - Delivery, but recently new categories started to influence decision makers: Health and Safety of workers, environment concerns.

Real-World Example:

Toyota revolutionized the automotive industry by focusing on customer value. They implemented the Just-In-Time (JIT) production system, ensuring that each vehicle met customer specifications and was delivered promptly, reducing excess inventory and waste .

2. Map the Value Stream

The value stream encompasses all the actions (value-creating and non-value-creating) required to bring a product or service from concept to customer. Mapping this stream helps identify and eliminate waste.

Real-World Example:

Nike applied value stream mapping to streamline its supply chain. By identifying bottlenecks and non-value-adding activities, they reduced lead times and improved responsiveness to market demands.

3. Create Flow

After eliminating waste, the next step is to ensure that the remaining value-creating steps flow smoothly without interruptions. This involves organizing workstations, balancing workloads, and optimizing layouts.

Real-World Example:

The Mayo Clinic utilized flow principles to enhance patient care. By redesigning patient pathways and reducing waiting times, they improved patient satisfaction and operational efficiency .

4. Establish Pull

A pull system ensures that nothing is made without a specific customer request. This approach minimizes overproduction and aligns production with actual demand.

Real-World Example:

Dell Technologies implemented a pull system in its manufacturing process. By assembling computers only after receiving customer orders, they reduced inventory costs and increased customization options for customers.

5. Pursue Perfection

Lean Thinking is a continuous journey. Organizations should strive for perfection by constantly improving processes, eliminating waste, and enhancing value delivery.

Real-World Example:

Amazon embodies the pursuit of perfection by continually refining its logistics and customer service operations. Through innovations like one-click ordering and drone deliveries, they aim to provide the best customer experience .

5 lean Principles

To visualize these principles, consider the following diagram:

This circular flowchart illustrates how each principle leads to the next, creating a continuous cycle of value creation and improvement.

Embrace these principles, and you'll be well on your way to transforming processes and delivering exceptional value to your customers.

To enhance your understanding of these 5 principles, watch following video from founder of Toyota Production system.