Five Lean Principles O M T D G R

1. Specify Value A capability provided to a customer at the right time at an

appropriate price, as defined in each case by the customer.

 Specify value from the standpoint of the Waste:

end customer  Activities that add no value,
add cost and time
 Ask how your current products/services and  Symptoms; need to find root
processes disappoint your customer’s value causes and eliminate them
expectation:
 7 types of waste

price?
quality? Incidental
•Incidental
Work
reliable delivery? •Work
Pure
•PureWaste
Waste
rapid response to changing needs?
•Pure Waste
fundamental definition of the product?
Value
•Value

Typical Operation: 1-10% Activities are Value Adding

•Value
Five Lean Principles O M T D G R

“Whenever there is a product or service for a customer, there is a

2. Map the value stream. The challenge lies in seeing it.”

Value (Womack, Learning To See)

Stream
 Identify all of the steps currently Value stream
required
to move products from order to All activities, both value added and
delivery non-value added, required to bring a
product (or provide a capability) from
 Challenge every step: Why is this raw material (initialization) into the
necessary? Would the customer think arm of the customer
the product is worth less if this step
could be left out? 3 Main Value Streams:
 Many steps are only necessary because 1. Raw material to customer
of the way firms are organized and
previous decisions about assets and 2. Concept to launch
technologies 3. Order to cash

Mapping the VS – See the whole and improve the system