Colorado Statewide
Innovation Center
Lean Overview
What is Lean?
Lean is a philosophy or business management methodology focused on improving products and services by focusing on removing non-value adding activities (waste); essentially, doing more with less.
Lean is customer focused. Value is defined from the point of view of the customer of the process or output. When thinking about a process and/or step, simply ask yourself: "Is the customer willing to pay for it?", "Do we need to do it this way?" and "How can we improve it?".
Respect for People
- Respecting all of the stakeholders: employees, customers, suppliers, etc. It is essential for Lean to be successful at any organization and is more complicated than just treating people well.
- This pillar involves trusting people to continuously improve their work without impeding them with oversight; allowing them to create meaningful, challenging and satisfying work.
Continuous Improvement (Kaizen)
- The practice of making perpetual improvements and challenging the status quo.
- The most value of the continuous improvement mindset comes when it's embedded in an organization's culture.
- Creating an atmosphere where change is accepted and encouraged and there is a wide spread understanding that improvement is everyone's responsibility, from front line employees to directors.
5 Principles of Lean
Value - Value is defined by the customer of the process. What does the customer want and is every task/process in alignment with it?
The Value Stream - The process/steps that make up the life-cycle of the service/product from beginning to end. Any process/step that does not create value from the point of view of the customer of the process should be eliminated.
Flow - The concept of flow is to create a value stream with no interruptions or delays. When the value stream stops moving forwards, waste is inevitable.
Pull - Services/products are only provided/produced when the customer asks for them. This helps ensure flow by preventing a build up of work-in-progress (WIP) that clogs up the value stream.
Strive for perfection - Make continuous improvements (small & large) with the goal of a 0% defect rate & 100% customer satisfaction.
Value to the Customer
Lean delivers value through the identification and elimination of waste. Waste is defined as an activity/task that does not add value from the point of view of the customer.
Lean Identifies Three Types of Work Activities:
- Value Adding - where the act or process adds value from the customer's perspective and/or changes the product or service in a meaningful way.
- Non-Value Adding - any act that is not a value adding activity. (Waste)
- Business Non-Value Adding - any act that is not adding value but is required by law, policy or for safety sake.
State of Colorado Lean Videos
New to Lean? Watch these 4 videos to lean about Colorado's Lean program!