Create FlowĪfter removing the wastes from the value stream, the following action is to ensure that the flow of the remaining steps run smoothly without interruptions or delays. By reducing and eliminating unnecessary processes or steps, you can ensure that customers are getting exactly what they want while at the same time reducing the cost of producing that product or service. The later is pure waste and should be eliminated while the former should be reduced as much as possible. The waste can be broken into two categories: non-valued added but necessary and non-value & unnecessary. Activities that do not add value to the end customer are considered waste. In this step, the goal is to use the customer’s value as a reference point and identify all the activities that contribute to these values. The second Lean principle is identifying and mapping the value stream. By using these qualitative and quantitative techniques you can uncover what customers want, how they want the product or service to be delivered, and the price that they afford. There are many techniques such as interviews, surveys, demographic information, and web analytics that can help you decipher and discover what customers find valuable.
This is especially common when it comes to novel products or technologies. Sometimes customers may not know what they want or are unable to articulate it. It is paramount to discover the actual or latent needs of the customer. Value is what the customer is willing to pay for. To better understand the first principle of defining customer value, it is important to understand what value is.
The Five Lean Principles Explained:įigure 1. The next sections provides a detailed overview of each principle. The five principles are considered a recipe for improving workplace efficiency and include: 1) defining value, 2) mapping the value stream, 3) creating flow, 4) using a pull system, and 5) pursuing perfection. Womack and Jones defined the five principles of Lean manufacturing in their book “The Machine That Changed the World”. It encourages the practice of continuous improvement and is based on the fundamental idea of respect for people. Lean was born out of manufacturing practices but in recent time has transformed the world of knowledge work and management.
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