- Identify Customers and Specify Value – The starting point is to recognise that only a small fraction of the total time and effort in any organisation actually adds value for the end customer. By clearly defining Value for a specific product or service from the end customer’s perspective, all the non value activities – or waste – can be targeted for removal.
- Identify and Map the Value Stream – The Value Stream is the entire set of activities across all parts of the organisation involved in jointly delivering the product or service. This represents the end-to-end process that delivers the value to the customer. Once you understand what your customer wants the next step is to identify how you are delivering (or not) that to them.
- Create Flow by Eliminating Waste – Typically when you first map the Value Stream you will find that only 5% of activities add value, this can rise to 45% in a service environment. Eliminating this waste ensures that your product or service “flows” to the customer without any interruption, detour or waiting.
- Respond to Customer Pull – This is about understanding the customer demand on your service and then creating your process to respond to this. Such that you produce only what the customer wants when the customer wants it.
- Pursue Perfection – Creating flow and pull starts with radically reorganising individual process steps, but the gains become truly significant as all the steps link together. As this happens more and more layers of waste become visible and the process continues towards the theoretical end point of perfection, where every asset and every action adds value for the end customer.
In following these five principles of Lean you will implement a philosophy that will become “just the way things are done”. You are ensuring that you are driving towards the overall organisational strategy by constant review of your processes to ensure that they are constantly and consistently delivering value to your customer. This allows the organisation to maintain its high level of service whilst being able to grow and flex with a changing environment and it does this through implementing sustainable change.