The Lean management methodology was first developed based on the management techniques of Toyota and other Japanese automakers. While it was initially used in manufacturing, the approach has been embraced by almost every industry. Along the way, improvement management software has been developed to support the methodology. When we get the opportunity to talk with leaders about Lean management systems, we generally get the same set of questions. Here are the answers.

What kinds of organizations benefit from Lean management?

As we mentioned, the Lean business approach, and the need for Lean software, has spread well beyond manufacturing. Today, you can find Lean in almost every sector, including healthcare, software, logistics, consulting, retail, financial services, construction, and even higher education. What these organizations have in common is a desire to practice continuous improvement and structured problem-solving, accompanied by the will to make smart investments to ensure that each participant has the tools they need to implement, spread, and sustain positive change.

What are the principles of Lean?

There are five core principles of the Lean approach to production systems. They are:

Value: What a customer is willing to pay for a product is determined by the customer's perceived value. Lean practitioners focus on removing processes, materials, or features that do not provide value to the customer.

Value Streams: A value stream is the combination of processes, activities, and materials needed to deliver the product to the customer. Lean-thinking organizations define, visualize, and control every aspect of their value streams.

Flow: Lean maintains that value should flow freely from beginning to end. Anything that inhibits the flow of value contributes to waste and decreases customer value.

Pull: Lean rests on the idea that nothing is produced or kept in inventory until it is needed because a customer (internal or external) has asked for it. Production is not based on a forecast or a schedule but on near-real-time customer demands.

Perfection: Lean is the constant pursuit of perfection. Lean leaders implement measurements, technology, and processes that constantly look for ways to improve speed and reduce waste across each value stream. When problems surface, workers identify the root cause and apply corrective action.

What are the wastes of Lean?

Taiichi Ohno, the father of the Toyota Production System, defined the original seven Lean wastes.

Defects: Errors or rework in production or service delivery.

Overproduction: Producing more of a product than is demanded by the customer.

Waiting: Time spent idle, waiting for the next step in a process to occur.

Transportation: Unnecessary movement of raw materials or finished products.

Motion: Unnecessary movement of people.

Inventory: Products or raw materials that are stored before customer demand.

Over Processing: Features or process steps that don't add value to the customer.

Today, many organizations include an 8th waste, unutilized human potential or talent.
 

Who in the organization participates in Lean?

This is an essential question because people often assume that only resources dedicated to improvement or quality assurance personnel practice Lean. That's not the case at all. Lean management puts the responsibility for improvement on every person in the organization. The process operators are more likely to recognize waste and develop ideas for reducing it. That's why the Lean software solution works best if everyone can access it and document opportunities for improvement. When a project is selected for implementation, the people involved in doing the work are best positioned to initiate a PSDA or DMAIC cycle.

What are the biggest mistakes when implementing Lean?

Organizations often need to correct two big mistakes when implementing the Lean methodology.

1. Viewing lean as a cost-cutting measure.

Implementing Lean often reduces cost, but the point of Lean is process improvement and creating a workspace in which employees can do their best work. Too much focus on cost-cutting undermines this idea and can cause employees to see Lean as a punitive, potentially job-threatening management method.

2. Discounting the culture change necessary to achieve Lean.

Lean isn't a thing you do; it's a way of thinking and behaving that needs to be established at every level of the organization. People must be free to challenge old assumptions and engage in a different and often uncomfortable way. Shifting the culture isn't easy, but it is a necessary step on the path to perfection.

What tools and techniques are used to support Lean?

Organizations use many tools to support their Lean efforts. Here are some of the most widely used:

PDSA: PDSA (Plan, Do, Study, Adjust) is a structured improvement cycle that helps employees test ideas for improvement and implement successful ones. It is meant to be iterative and frequently applied to process problems.

Kanban Boards: Kanban boards are a visual management tool for depicting the flow of work-in-progress and keeping it limited to what can be acted upon immediately.

Gemba Walks: During a gemba walk, leaders go to the place where work is performed to demonstrate respect for employees, ask questions, and look for opportunities for improvement.

Daily Huddle Meetings: Daily huddles offer the opportunity to talk about the improvement priorities of the day, ensure that information about each project is updated, and engage in problem-solving.

What are the benefits of Lean management software?

The Lean business methodology can be used with or without technology to support it, but there are many compelling reasons to implement a Lean management system:

More completed improvements: Companies that implement a tool to support Lean find that they capture more opportunities for improvement and quickly get more projects over the finish line.

Better impact measurement:  Employee and executive engagement with Lean depends on achieving measurable results. Lean software helps calculate the impact of improvement and proves to everyone that the efforts have a lasting effect on key business metrics.

Strategic Alignment: The best Lean solutions help align improvement work with company goals. This is particularly important for organizations that use the Hoshin Kanri approach to strategic planning.

Smarter future decisions: The Lean solution becomes a repository of knowledge. It can be a treasure trove of best practices and lessons learned, leading to better decision-making in the future.

A more robust Lean culture: The Lean approach works best when ingrained in the corporate culture. Investing in Lean software signals to every employee that Lean is how business gets done. It creates a common language based on improvement and a platform for employee performance reviews.

What are the critical features of Lean Management Software?

We've written about this in more detail here, but the key features to look for are:

Opportunity capture: It should be easy for anyone to submit an opportunity for waste reduction or other improvements. People should be able to engage with improvement work anytime, whether in the office at a computer or elsewhere on a mobile device.

Visual management: The concept of visual control is vital in the Lean approach. Therefore, look for software that supports executive dashboards, huddle boards, Kanban boards, and rotating display boards.

Smart notifications: The right people should receive event-based notifications when new opportunities are submitted, tasks are due, and when projects slip behind schedule.

Reporting:  Getting data into the system is essential but getting it out is even more crucial. Ensure the solution supports reporting on improvement impact, engagement, and activity.

Search: The data in your Lean management system will become incredibly valuable and hopefully quite vast, so make sure it is easy to search for completed, pending, and active improvement projects.

Implementing a Lean management system will go a long way toward making the approach a part of daily life in your organization. It will also help you calculate the impact of success and ensure that positive changes take hold over the long run. If you have additional questions, drop us a note, and we'll be happy to answer them.