Lean methodology, whether used in manufacturing, health care, or any other industry, is a concept where a business attempts to create a flow of value to the customer through specific concepts. Most people associate Lean with waste elimination, and that is a big result, but the real goal behind Lean is providing your customers with the value they need as efficiently as possible.
One of the core concepts underlying Lean methodology is the idea of continuous improvement. This is a never-ending goal of making improvements to the way things in the business are done. These improvements may be major changes to the way a process is completed, or they may be small adjustments that cut out wasted effort. Either way, the company must be focused on finding all potential problems and eliminating them from the process.
Another core concept used in Lean is the idea of a value stream. This is the representation of how value is added to a product or service, and how it flows toward the customer. One of the main things to note about a value stream is that the value always must be from the perspective of the customers. If they aren’t willing to pay for a specific addition to a product or service, than it is not adding value and should be considered waste.
End Goal of Lean
In the end, the Lean methodology should lead to a dramatic reduction of all forms of waste, and an improved value provided to the customer. This will, if done properly, increase the profit margin for the company and help them to become more successful over time. This methodology has been proven to be effective in thousands of companies over the past several decades, and thanks to the fact that it is adaptable by its core nature, it will continue to benefit businesses long into the future.
- What are principles of Lean manufacturing?
- What is the Lean manufacturing process?
- How does Lean manufacturing eliminate waste?
- What is a value stream?
- What is Lean management?
- What do the letters in the acronym DOWNTIME refer to in Lean Methodology?
- What are Lean terms?