Although the business world continues to change at a dizzying pace, one truth persists: To sustain success over the long haul, businesses must constantly strive to improve. There’s no room for complacency when it comes to efficiency, productivity and customer satisfaction. This is where Lean continuous improvement comes in.
What is Lean thinking in the context of continuous improvement? How can it help develop leadership skills that benefit the business and its stakeholders? This article will break down the basics of Lean methodology, discuss its core goals and principles, define continuous improvement and explore some of the benefits of incorporating Lean management strategies in an organization.
What Is Lean Methodology?
To understand Lean continuous improvement, it’s necessary to consider Lean methodology first. Lean is a business philosophy that emphasizes value and the elimination of waste in all forms. The methodology outlines eight types of waste, which are often represented by the acronym, DOWNTIME:
- Non-Utilized Talent (Unused Talent)
- Extra/Excess Processing
The goal of Lean is to streamline processes and make them as efficient as possible so that the business can operate at peak productivity levels.
Using Lean methodology, an organization can identify and eliminate waste in all areas of its operations, from manufacturing and production to customer service and sales. This gives leaders a moral compass to guide their decision-making so that the company can stay focused on its ultimate goal: creating value for customers while maximizing efficiency.
Origins of Lean Methodology and Lean Continuous Improvement
While the concepts of Lean can be traced back more than 500 years, by most accounts, it gained prominence in the early 20th century with Henry Ford of the Ford Motor Company and later Taiichi Ohno of Toyota, as a way to improve manufacturing processes. Since then, Lean has been adopted by businesses in various industries all over the world.
At the heart of Lean is the principle of Kaizen, a Japanese philosophy which loosely translates to “continuous improvement” or “change for the better.” Kaizen promotes the view that businesses should never rest on their laurels and should always look for ways to improve their processes, products and services. To achieve this, business leaders instill a culture of continuous improvement and sustainability in their organization, empowering employees to identify problems and take corrective action when necessary.
Lean management can therefore be described as a never-ending, flexible, and collaborative quest for excellence, rooted in the fundamental belief that there is always room for improvement in every business process.
Goals and Principles of Lean Continuous Improvement
The focus of Lean is on creating value for the customer while minimizing waste. This is achieved through continuous process improvement which can involve all employees in the organization, from the C-suite to front-line workers.
The main goal of Lean continuous improvement is to create a work environment in which everyone is always looking for ways to improve the way things are done. To this end, the Lean continuous improvement methodology rests on the following core principles:
- Identify value: Identifying value helps streamline work processes and align them with the customer’s needs.
- Map the value stream: Mapping out the value stream demonstrates where bottlenecks or inefficiencies are occurring in the work process.
- Create flow: Creating flow means eliminating waste so that work can move smoothly through the organization from start to finish.
- Establish pull:To allow the customer to “pull the value,” work should only be performed when there is customer demand and waste, e.g., in the form of excess inventory, can be kept to a minimum.
- Seek perfection: The goal of any Lean process is to constantly strive for perfection and never be satisfied with the status quo.
These principles provide a roadmap for creating a more efficient and productive organization.
Lean Tools and Techniques
There are many essential and advanced tools and techniques to help promote continuous improvement. Some common Lean tools and transformational frameworks include the following:
- The 5S System
The 5S system is a simple but effective way to organize your workspace and eliminate waste. 5S stands for Sort, Set in Order, Shine, Standardize and Sustain. This system can work in any type of organization, from manufacturing to office environments.
- Just-in-Time Production
Just-in-Time (JIT) production is a technique that minimizes waste by producing only what is needed when it is required. JIT prevents excess waste production and ensures that products are of the highest quality.
Kanban is a visual system for managing workflow. It uses cards to signal when a task needs to start and when it has been completed. Visual tools like Kanban can help increase transparency and collaboration in the workplace by making it easy to see what needs to be done and who is responsible for doing it.
- Root Cause Analysis
Root Cause Analysis (RCA) is a problem-solving technique used to identify the underlying cause of a problem. It helps to address the root problem in a work process to prevent it from occurring again in the future. One of the most popular methods of Root Cause Analysis is the Five Whys technique, which involves asking five “why” questions to get to the root of a problem.
- Plan-Do-Check-Act Cycle
The Plan-Do-Check-Act (PDCA) cycle technique is used to make work processes more efficient. As the name implies, it involves the four steps: Plan, Do, Check, and Act. Each step in the cycle builds on the previous one and helps ensure that problems are solved in a systematic and effective manner.
Lean Continuous Improvement Transforms Leadership
Implementing Lean process improvement can have lasting effects on an organization, including its management style. With Lean continuous improvement, leaders work with team members to identify problems and then develop solutions together. This creates a sense of ownership and buy-in from the entire organization. As a result, Lean organizations are often more successful in embracing change because everyone is on board with the process.
Lean leadership transforms the way that decisions are made in an organization. It shifts the focus from individual achievement to collective success and can help change how decisions are made and promote a corporate culture of buy-in and collaboration.
Interested in learning more? Please visit our Certificate in Lean Continuous Improvement program page for more details regarding student expectations, program benefits, tuition, program length and more.