What is the purpose of Lean? Why do we use it?
The roots of the Lean philosophy can be traced to Toyota’s manufacturing systems in Japan, inspired by Henry Ford’s flow production in the United States and Eli Whitney’s interchangeable parts (1). The term Lean was coined by John Krafcik in 1988 and defined by James Womack and Daniel Jones in 1996 (2). They identified the key principles for the success of the Toyota Production System.
How does it help us create value for our customers and our organization?
These are the questions that should guide our actions and decisions when we adopt Lean as a philosophy and a practice. But sadly, many companies have lost sight of the why and focused only on the how. They have reduced Lean to a set of tools and techniques that aim to cut costs and eliminate waste, but ignore the human and cultural aspects that make Lean truly effective.
Real-Life Case Studies:
- McDonald’s: The fast-food giant applied Lean principles to its kitchen operations. By optimizing processes, they reduced the time it takes to prepare and serve meals, improving customer satisfaction and profitability.
- Amazon: In their distribution centers, Amazon uses Lean principles to streamline order fulfillment, reduce inventory, and improve delivery times. They also apply Lean thinking to their software development processes.
Lean is not just about doing things faster and cheaper.
It’s about doing things better and smarter. It’s about empowering our employees to improve their work processes, to learn from their mistakes, to experiment with new ideas, to collaborate with their colleagues, and to engage with their customers. It’s about creating a culture of continuous improvement that fosters innovation and excellence.
But how do we create such a culture?
How do we ensure that our employees are motivated and inspired by Lean? How do we avoid the pitfalls of implementing Lean in a superficial and mechanical way? The answer lies in understanding the three principles of Lean: Muda, Mura, and Muri.
- Muda means waste. It refers to anything that does not add value to the customer or the organization. It can be physical waste, such as defects, scrap, or inventory, or it can be process waste, such as waiting, overproduction, or rework.
- The goal of Lean is to identify and eliminate Muda as much as possible, by applying tools such as value stream mapping, 5S, or Kanban.
- Examples of Mudas
- Waiting: In a manufacturing setting, workers waiting for materials to arrive or machines to be fixed.
- Excess Inventory: Keeping excess raw materials, work-in-progress, or finished goods, which ties up capital and space.
- Overproduction: Producing more than customer demand, leading to excess inventory and potential waste.
- Defects: Manufacturing defects that require rework or lead to product recalls.
- Mura means unevenness. It refers to any variation or fluctuation that causes imbalance or instability in the system. It can be external variation, such as changes in customer demand or supplier delivery, or it can be internal variation, such as differences in quality, performance, or skill level.
- The goal of Lean is to reduce Mura as much as possible, by applying tools such as heijunka (leveling), takt time (synchronization), or jidoka (autonomation).
- Examples of Muras
- Uneven Workload: Some employees having a heavy workload while others have less to do, leading to inefficiency.
- Fluctuating Demand: Peaks and valleys in customer demand can lead to overproduction or underutilized resources.
- Muri means overburden. It refers to any excess or unreasonable demand that causes stress or strain on the system. It can be physical overburden, such as overloading machines or equipment, or it can be mental overburden, such as overloading workers or managers.
- The goal of Lean is to avoid Muri as much as possible, by applying tools such as standard work (simplification), kaizen (improvement), or gemba (observation).
- Examples of Muris
- Forcing Overtime: Requiring employees to consistently work long hours to meet production targets.
- Overloading Machines: Running equipment at maximum capacity continuously, leading to breakdowns and maintenance issues.
The three principles of Lean are interrelated and interdependent.
They form a holistic system that balances efficiency and flexibility, control and autonomy, standardization and customization. They also require a human-centered approach that respects the dignity and potential of every person involved in the value creation process.
Unfortunately, many companies have neglected this holistic and human-centered approach. They have focused on Muda at the expense of Mura and Muri. They have cut slack resources without considering their role in buffering variability and enabling innovation. They have pressured their employees without providing them with support and guidance. They have implemented Lean in a top-down and rigid way, without involving their employees in the problem-solving and decision-making process.
This is not Lean.
This is a distortion of a powerful philosophy that can transform organizations and cultures. This is a recipe for failure and frustration.
“A phenomenon of distancing is at work in the case of continuous improvement approaches driven by lean. This concept has been largely misused by managers who have tended to focus solely on chasing waste (muda), neglecting the potential for learning and adaptation contained in the other two principles (mura and muri) relating to control, the variability of situations and work overloads.”
Philippe Lorino(3)
If you want to do Lean right, you need to start with why.
We need to understand the purpose and value of Lean for our customers and our organization. We need to communicate this purpose and value to our employees and inspire them to embrace Lean as a way of thinking and acting. We need to involve them in the implementation and improvement of Lean practices and processes. We need to provide them with the tools and resources they need to succeed.
We also need to balance the three principles of Lean: Muda, Mura, and Muri. We need to eliminate waste without creating unevenness or overburden. We need to reduce variation without sacrificing flexibility or creativity. We need to avoid overload without compromising quality or performance.
“We need to create a culture of continuous improvement that fosters innovation and excellence.
That’s how we can make Lean work for us.
That’s how we can make a difference.”
In summary, Lean is not just about cutting costs.
Lean is about creating value for customers, empowering employees, and learning from mistakes. But many managers have missed the point. They have focused on eliminating waste, but ignored the other two pillars of lean: reducing variability and avoiding overload. They have cut slack resources, but sacrificed the time and space for innovation. They have pressured workers, but neglected their well-being and engagement.
This is not lean. This is a distortion of a powerful philosophy that can transform organizations and cultures. Lean is about finding the optimal balance between efficiency and flexibility, between standardization and customization, between control and autonomy. Lean is about continuous improvement, not short-term results. Lean is about respect, not exploitation.
If you want to do lean right, you need to understand its roots and principles. You need to involve your teams in the process and listen to their ideas. You need to smooth your production and anticipate your demand. You need to maintain your equipment and train your staff. You need to create a culture of learning and experimentation.
Don’t settle for a superficial version of lean that only looks at the bottom line. Embrace the true spirit of lean that aims for excellence and value creation. This is how you can make a difference and improve the system as a whole.
- Embrace the true spirit of lean
- Avoid settling for a superficial approach
- Focus on excellence and value creation
- Strive to make a meaningful impact and disrupt the status quo
Lean principles, encompassing Muda, Mura, and Muri, are versatile and can be adapted to various industries ; Healthcare, Software, Service industries, Retail, Construction…
By identifying and eliminating waste, smoothing out processes, and avoiding overburden, organizations can achieve significant improvements in efficiency, quality, and customer satisfaction.
“On-demand production is not just a trend, it’s a necessity. It’s the way to meet the ever-changing needs and preferences of customers, while reducing waste and environmental impact. It’s the way to unleash creativity and innovation, while optimizing efficiency and quality. It’s the way to create value and make a difference.”
Anonymous
References
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