An introduction to the principles of Lean and Kaizen.

1. STEPHEN LIPSCOMBE BACKGROUND:
• Ex-TOYOTA UK SECTION MANAGER:
• FACILITIES, PRESS, MANUFACTURING DEVELOPMENT, HR.
• MAINTENANCE & ENGINEERING, CONSTRUCTION,
PRODUCTION, PROJECTS, MANAGEMENT SYSTEMS,
FINANCE, DEVELOPMENT.
WELCOME TO LEAN PRINCIPLES TASTER
CURRENT:
• APPLEX MANAGEMENT LTD.
• MANAGEMENT SERVICES:-
• LEAN & KAIZEN CONSULTANCY
• INTERIM MANAGEMENT / PROJECT MANAGEMENT

2. ABOUT THIS SESSION:-
• AN INTRODUCTION TO LEAN & KAIZEN PRINCIPLES
• SIMPLE EXAMPLES TO ILLUSTRATE LEAN & KAIZEN
LEAN PRINCIPLES

3. LEAN PRINCIPLES
THE ORIGINS OF LEAN
• 19th C: Frederick W. Taylor deemed work deserving of systematic
observation and study (Time Study).
• Laid first foundations of improving efficiency in the workplace.
• Believed and taught that only through enforced
standardisation of methods and enforced cooperation
that faster work could be assured. And the duty of
enforcing the adoption of standards and enforcing this
cooperation rested with management alone.
• Taylor believed the labourer was worthy of his hire,
and pay was linked to productivity (piece work).

4. THE ORIGINS OF LEAN
• 19th C: motion efficiency expert Frank Gilbreth saw masons bending
over to pick up bricks from ground.
• Inefficiency built into the job through long practice.
• Introduced non-stooping scaffold, which delivered bricks at waist level.
• Masons work three times as quickly, with less effort.
• Gilbreth’s studies mainly focussed on reducing the effort required to
perform work (Motion Study).
LEAN PRINCIPLES

5. THE ORIGINS OF LEAN
• Late 19th/ early 20th C: The Time & Motion Study was developed from
a combination of Taylor and Gilbreth’s works.
• A basic set of tools used by industrial engineers to increase operational
efficiency through work simplification and the setting of standards.
LEAN PRINCIPLES
• Usually used in combination with a wage-incentive
system designed to increase worker motivation.

6. THE ORIGINS OF LEAN
• 1948: Toyota Production System (TPS) arose out of need to improve
efficiency at car manufacturing plants, improve competitiveness in the
market.
• TPS is driven by smoothing flow of production process. As a result,
quality improves, waste and cost reduce.
LEAN PRINCIPLES
J
I
D
O
K
A
J
I
D
O
K
A

7. THE ORIGINS OF LEAN
• 1981: Six Sigma: strategy originally developed by Motorola.
• Seeks to improve quality of process outputs by identifying and removing
causes of defects & minimizing variability in processes.
• Uses quality management methods, inc statistical methods. Follows
defined sequence of steps, has quantified financial targets (cost
reduction / profit increase).
LEAN PRINCIPLES
• Term six sigma comes from terminology in manufacturing
with statistical modelling of processes.
• A six-sigma = 99.99966% of products free of defects (3.4
DPM). Motorola set a goal of "six sigmas" for all its
manufacturing operations, this goal became byword for the
practices used.

8. THE ORIGINS OF LEAN
• 1990’s: LEAN uses same tools as TPS, but focus on waste elimination.
• Overall aim to improve process efficiency (preserve value with less
work).
LEAN PRINCIPLES

9. COMPARISONS
• 19th – 20th C: TIME & MOTION STUDY
• Improvement activity driven by Management & Engineers, little input by workers.
• NO CONTINUOUS IMPROVEMENT.
• 1948: Toyota Production System (TPS)
• TPS driven by smoothing flow of production process. As a result, quality improves,
waste and cost reduce.
• Centred around human movements MANUFACTURING ORIENTED.
• 1981: Six Sigma:
• Seeks to improve quality of process outputs by identifying and removing causes of
defects & minimizing variability in manufacturing processes.
• QUALITY ORIENTED, cost & efficiency benefits as a result.
• 1990’s: LEAN
• Focus on waste elimination and process efficiency improvements.
• Thus more readily APPLICABLE IN NON-PRODUCTION ARENAS
i.e; office processes.
LEAN PRINCIPLES

10. LEAN PRINCIPLES
• LEAN is a team based process of Continuous Improvement designed to maximise
an organisation’s resources.
• LEAN implementation is only successful in organisations where it is fully
supported by top management.
• Proper application will yield increased efficiency and reduced costs.
INTRODUCTION.

11. LEAN PRINCIPLES
WORK CAN BE GROUPED INTO 3 CATEGORIES.
• Value Added – work that adds value to the product,
such as fitting a part or providing a service to a customer.
• Non-Value Added – work that adds NO value,
such as packaging, or filing paper or information.
• Waste – producing scrap goods or reworking documents.

12. LEAN PRINCIPLES
THEREFORE:-
The greater ratio of Value-Added work performed, and the less waste effort carried out,
the leaner and more competitive the process and the organisation.
BUT:
• It’s not just about cutting.
• It’s about ACHIEVING A BALANCE
Cost implication –
Excess inventory or Work in
Progress.
Cost implication –
Process stops
Too many parts in Stock=
WASTE of Inventory
Too few parts in Stock=
WASTE of Waiting

13. 1: MAP YOUR PROCESS FLOW.
Make a visual map of how your product or service is produced and consider its
value from the standpoint of the end customer.
Is it what the customer needs?
Would the customer pay for it?
What would they pay?
What does it cost to produce in terms of materials and resources?
LEAN PRINCIPLES
Materials: Tea bag, milk, sugar,
water, energy.
Resources: your time, your
assets (appliances, crockery,
cutlery), transport.

14. 1: MAP YOUR PROCESS FLOW.
LEAN PRINCIPLES
1 hour 63 mins Non-Value Added
2 mins Value Added (3.2%)
Shop Tools Material
Pour
tea
Boil
kettle
Brew
tea
Prepare
cup
1 min
30 sec 30 sec 2 mins
30 sec30 sec
Drink
tea

16. 2: IDENTIFY ALL THE STEPS IN THE PROCESS.
What does the process entail?
Which elements of the simple process of making a cup of tea are Value Added?
Which elements are Non-Value Added and which are WASTE?
LEAN PRINCIPLES

17. 2: IDENTIFY ALL THE STEPS IN THE PROCESS.
LEAN PRINCIPLES
Organisations should understand every step of every process they use and whether
these steps add VALUE to the Customer.
The aim is to remove those activities & processes that don't add value.
This is the part of the process where we remove WASTE.
Can you identify the Waste elements of making a cup of tea?
Consider all the walking time, waiting time,
waste disposal, washing up……

18. KITCHEN
3: CREATE FLOW.
Make the Value Adding steps of the process occur in a tight
sequence.
Break Through the functional and departmental barriers.
The product will flow smoothly towards the Customer.
LEAN PRINCIPLES
“ROOM” for Improvement?
Add timings of
walking, waiting,
manual work,
automatic work
(by m/c)
TABLE
SUGAR
CUPBOARD
REFRIGERATOR
CUTLERY
CROCKERY
SINK
STOVE
1
2
3
4
5
6
7
8
9

19. 4: ESTABLISH “PULL”.
Every process should only be operated when required, i.e;
"PULLED" by THE CUSTOMER,
not "PUSHED" when the organisation desires or targets
dictate.
LEAN PRINCIPLES
or
Empty Desk
I fancy a
cup of
coffee
PUSH
What would “PULL” look like?
Derek
usually has a
cup of tea at
around this
time

20. 5: CONTINUOUS IMPROVEMENT
An Organisation should strive to continuously improve and
refine the
VALUE its PROCESSES provide to its CUSTOMERS.
LEAN PRINCIPLES
2.
Identify
Steps
3. Create
Flow
4.
Establish
Pull
5. Seek
Perfection
1. Identify
Value
As value is mapped,
wasted steps are removed,
flow and pull are introduced,
begin the process again and
continue aiming for perfect
value with no waste.

21. WHAT IS VALUE?
We talked about Value-Added steps, and how the customer will pay for these
steps, but maybe not Non-Value-Added.
LEAN PRINCIPLES
THINK about how do YOU make a decision to buy or recommend, is it on price or
service alone?
V
A
L
U
E
S
How easy is it to find / get to?
Can I park my car easily?
What is the service like (quality)
What image does it portray (about me)?
Is it nice tea there?
Is there a selection of different beverages?
Do they have a nice menu?
What is the price?
You probably use a mix of;

22. WHAT IS VALUE?
LEAN PRINCIPLES
Do they provide the
products / services I require?
Are they a
reputable business?
What is the
Lead Time?
What will it cost?What after-sales support
is available?
Do I or any of my colleagues
know anyone there?
Do I know anything
about this company?
VALUE
BUSINESS CUSTOMER VALUES

23. WHAT ARE THE TYPES OF WASTE?
LEAN PRINCIPLES
Remember, a Customer will pay for Value Added, and maybe Non Value Added,
but not WASTE!
There are 7 types of WASTE (MUDA) :-
£
£
£
£

24. THE 7 WASTES.
LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
Overproduction Too much paper / Work Flow Sequence.
information. A “Pull” system.

25. LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
Transportation / Moving work between Shorter distances /
Conveyance offices, departments. No temporary storage.
THE 7 WASTES.

26. LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
Waiting People, supplies, X-Training, Kanban,
signatures. Review signatures
THE 7 WASTES.

27. LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
Motion Office Layout, Poor 5S. Standardise cabinets,
folders, files.
THE 7 WASTES.

28. LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
(Over)Processing Providing too much Standardise processes
information (right every time).
THE 7 WASTES.

29. LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
Inventory Excess or insufficient Kanban – order only
stock of office supplies. what / when needed.
THE 7 WASTES.
Cost implication –
Excess inventory or Work in
Progress.
Cost implication –
Process stops
Too many parts in Stock=
WASTE of Inventory
Too few parts in Stock=
WASTE of Waiting

30. LEAN PRINCIPLES
MANUFACTURING OFFICE WASTE ACTIONS
Defects / Scrap Reworking documents. Standard work procedures,
forms, job aids.
THE 7 WASTES.

31. LEAN PRINCIPLES
THE 8TH WASTE.
KNOWLEDGE
PRO’s
• Subconscious Competency.
• Can Teach Others.
CON’s
• “It’s Always Been Done Like This”
• Can be “Anchor Draggers”.
Most of the knowledge is
held in the heads of
experienced employees
who have worked for the
company for 5+ years.
Very few of the operations
are written down or
documented in any way.
Create Standardised Work
and Cross-Train staff.

32. WHAT ARE THE BARRIERS?
LEAN PRINCIPLES
Lack of Consistent Leadership - LEAN is not
a “Flavour of the Month” management exercise.
Once you start down the LEAN road, you have
to keep going, or risk losing credibility.
Lack of Communication – implementing LEAN
is a “Top Down, Bottom Up” activity. It is vital to
get all levels of the team actively involved.
This requires very strong, consistent, regular
communications. The team must understand:
•What are our Goals?
•What is our current focus?
•What can I do?
•What’s the Next Step?
•How are We Doing?
???
??

33. WHAT ARE THE BARRIERS?
LEAN PRINCIPLES
Using LEAN as a means to reduce Headcount –
This is not the Goal of LEAN. The aim is to eliminate
Waste and Add Value. As a result, Costs will be
reduced, Processes will be more efficient, and yes, in
the end there may be some opportunity to reduce
Headcount.
Taking on Too Much - LEAN beginners should limit
the scope of their initial project to gain some small
successes.
You’re fired!
AS

34. WHAT ARE THE BARRIERS?
LEAN PRINCIPLES
Lack of Persistence - one of the hardest challenges you will
face is the degree to which individual LEAN successes will
invariably uncover new problems and greater challenges.
Therefore, simply be aware of how difficult this work will be,
and be resilient.
“It’s Always Been Done Like This” – See this less as a
barrier, more as an opportunity.

35. WHAT ARE THE BENEFITS OF LEAN?
LEAN PRINCIPLES
* Figures quoted are general industry statistics
Management tools and techniques for long term Continuous
Improvement.
Financial & Management reports demonstrate Business
Improvement to ALL stakeholders.
Management Information available in minutes with no IT investment.
Capacity increases of over 40%*.
Improved cash flow as Waste, Work In Progress, Stocks are
reduced by 50%*.

36. WHAT ARE THE “SOFT” BENEFITS OF LEAN?
LEAN PRINCIPLES
Employee Engagement at ALL levels
Develops Staff Capabilities: increased
contribution, responsiveness.
Possible contributor to achievement of
“Investor In People” accreditation.
Soft Skills improvement.

37. ANY OTHER BENEFITS?
LEAN PRINCIPLES
Quality: Standardised processes will improve consistency of output.
ISO 9001: Standardisation and improved quality may support quality
accreditation.
More customers, repeat business,
recommendations / referrals.

38. STRATEGICALLY, HOW TO GET STARTED?
LEAN PRINCIPLES
Incorporate LEAN into your Annual Business Plan,
Make LEAN implementation part of your business strategy
Develop a LEAN leader who will take personal responsibility
for the lean transformation, who will develop deep knowledge
and have a gemba attitude i.e. always thinking of the work &
processes.
Get the LEAN knowledge, via a ‘sensei’ or consultant,
who can teach LEAN techniques and how to implement them
as part of a system, not as isolated programs.
Select a Model area, an area ripe for improvement
where it’s possible to gain a few quick & easy
successes to showcase to all Stakeholders.

39. CREATE YOUR ORGANISATION.
LEAN PRINCIPLES
Appoint a LEAN Champion to provide Direction & Recognition.
Identify and move the “Anchor-Draggers”.
Form a Pilot Team, high performing, receptive members of various
departments to initially learn and implement the LEAN techniques. Later,
these Pilot people may be able to teach others.
Use “Fresh Eyes” Approach, the Pilot team should comprise of people
from several areas of the business. Combine local knowledge with “Why
Do You Do It Like This?”
Top Management Reviews, i.e; Quarterly. Progress review and
recognition for achievements. Support to knock down any barriers.
“Two steps forward and one step backward is O.K.;
no steps forward is not O.K.”

40. TACTICALLY, HOW TO GET STARTED?
LEAN PRINCIPLES
Map the Value Streams (processes), beginning with the current
state of how material and information flow now, then drawing a
leaner future state of how they should flow and creating an
implementation plan & schedule.
Begin as soon as possible with an important and visible activity.
Once you’ve gained momentum, expand your scope to link
improvements in your processes from one area to another.
Broadcast positive results and
Recognise early successes.

41. THANK YOU.
THIS IS THE END OF THE PRESENTATION.
LEAN PRINCIPLES
ANY QUESTIONS?
Stephen Lipscombe,
Applex Management Ltd
T: 07802 799195
E: enquiries@applexmanagement.co.uk
W: www.applexmanagement.co.uk