Introduction

In race to be a leader, most companies are realizing that traditional management, manufacturing processes, and other orthodox approaches, are not enough.
More effective methods are needed:
• Lean Manufacturing
• Six Sigma

Lean “Lean is a way to specify value, line up value-creating actions in the best sequence, conduct those activities without interruption whenever someone requests them, and perform them more and more effectively. In short, lean thinking is lean because it provides a way to do more and more with less and less – less human effort, less human equipment, less time, and less space – while coming closer and closer to providing customers with exactly what they want.”- Womack and Jones (1996).

“Becoming ‘lean’ is a process of eliminating waste with the goal of creating value.” – Womack & Jones

There are FIVE overriding principles to Lean.
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