BUSINESS PROCESSES 2
INTRODUCTION TO LEAN AND VSM
LEAN HISTORY
BPA
We speak of the history of Lean. We might have spoken of Fordism as well.
“One of the most noteworthy accomplishments
in keeping the price of Ford products low
is the gradual shortening of the production cycle.
The longer an article is in the process of manufacture
and the more it is moved about,
the greater is its ultimate cost.”
Lean Thinking - What’s in a Name?
The Machine That Changed The World (1990)
The Story of Lean Production & Lean Thinking (1996)
by James P. Womack - USA: Lean Institute http://www.lean.org/
& Daniel T. Jones - UK: Lean Academy http://www.leanuk.org/
The rise of the East -Toyota Production System
They were able to use and apply it. They could change the colours and sizes.
Toyota’s Lean Strategy
“Brilliant process management is our strategy.
We get brilliant results from normal people managing brilliant processes.
We observe that our competitors often get average (or worse) results from brilliant people managing
broken processes.”
Lean Thinking is Process Thinking
1
,Lean Thinking: The Womack & Jones Definition
“In short, lean thinking is lean because it provides a way to do more and more with less and less --
less human effort, less equipment, less time, and less space -- while coming closer and closer to
providing customers with exactly what they want.”
➢ When you introduce new products, it’s important to have a lean-mindset.
History of Lean
Interchangeable parts = use the same parts for different products with the same effect
Poka yoke: make sure you can do it only in one way, even a fool can do it, then you make it foolproof
(you cannot make any mistakes). For example: there is only one way to put a HDMI cable in your pc.
SMED: Single minute exchange of die: within one minute we are able to change a product into
another product without losing any time
Mass customization: you make black doors, but you want the 7th to be green, then you will put on
the 7th the green card.
The production flow remains the same, it is automatically.
2
, LEAN PRINCIPLES
7 Lean Principles
1. Value
2. Value Creation
▪ Value creation: you organise something - for example: educate people
3. Pull
4. Flow
5. Roles, Responsibilities and Culture
6. Goal Alignment
7. Continuous Improvement
➢ 1, 2, 3 and 4 make your process lean, but to make sure
they remain lean you need 5,6 and 7.
Value Definitions
Customer Value Added (CVA)
- Customers are willing to pay for it
- It physically changes the form, fit or function of the product (3F)
▪ Form: you need a bottle to sell water, you need something to put it in
▪ Fit: you need a cap that fit to close the bottle, but it’s also important that you can
open it back
▪ Function: you can refill the bottle during the day
- It’s done right the first time (= dirft) – you only need to go through the process one time
▪ You will avoid the waist of over-processing
Overprocessing = you spend to much time and money on the proces – you go
again over the process
➢ CVA: you need all the aspects to have CVA
Business Value Added (BVA) – you need to do activities to have that information on the product
- Internal: Required to sustain the business
▪ On the bottle there is an inspection on the water + show it on the bottle e.g., date
- External: Required by law/industry regulators
➢ BVA: Customers are not interested in this information. Some people are bizzy all the time
with BVA.
Non Value Added (NVA)
- Waste: Creates no value and is not absolutely required
➢ Reduce = make it as slim as possible
3
INTRODUCTION TO LEAN AND VSM
LEAN HISTORY
BPA
We speak of the history of Lean. We might have spoken of Fordism as well.
“One of the most noteworthy accomplishments
in keeping the price of Ford products low
is the gradual shortening of the production cycle.
The longer an article is in the process of manufacture
and the more it is moved about,
the greater is its ultimate cost.”
Lean Thinking - What’s in a Name?
The Machine That Changed The World (1990)
The Story of Lean Production & Lean Thinking (1996)
by James P. Womack - USA: Lean Institute http://www.lean.org/
& Daniel T. Jones - UK: Lean Academy http://www.leanuk.org/
The rise of the East -Toyota Production System
They were able to use and apply it. They could change the colours and sizes.
Toyota’s Lean Strategy
“Brilliant process management is our strategy.
We get brilliant results from normal people managing brilliant processes.
We observe that our competitors often get average (or worse) results from brilliant people managing
broken processes.”
Lean Thinking is Process Thinking
1
,Lean Thinking: The Womack & Jones Definition
“In short, lean thinking is lean because it provides a way to do more and more with less and less --
less human effort, less equipment, less time, and less space -- while coming closer and closer to
providing customers with exactly what they want.”
➢ When you introduce new products, it’s important to have a lean-mindset.
History of Lean
Interchangeable parts = use the same parts for different products with the same effect
Poka yoke: make sure you can do it only in one way, even a fool can do it, then you make it foolproof
(you cannot make any mistakes). For example: there is only one way to put a HDMI cable in your pc.
SMED: Single minute exchange of die: within one minute we are able to change a product into
another product without losing any time
Mass customization: you make black doors, but you want the 7th to be green, then you will put on
the 7th the green card.
The production flow remains the same, it is automatically.
2
, LEAN PRINCIPLES
7 Lean Principles
1. Value
2. Value Creation
▪ Value creation: you organise something - for example: educate people
3. Pull
4. Flow
5. Roles, Responsibilities and Culture
6. Goal Alignment
7. Continuous Improvement
➢ 1, 2, 3 and 4 make your process lean, but to make sure
they remain lean you need 5,6 and 7.
Value Definitions
Customer Value Added (CVA)
- Customers are willing to pay for it
- It physically changes the form, fit or function of the product (3F)
▪ Form: you need a bottle to sell water, you need something to put it in
▪ Fit: you need a cap that fit to close the bottle, but it’s also important that you can
open it back
▪ Function: you can refill the bottle during the day
- It’s done right the first time (= dirft) – you only need to go through the process one time
▪ You will avoid the waist of over-processing
Overprocessing = you spend to much time and money on the proces – you go
again over the process
➢ CVA: you need all the aspects to have CVA
Business Value Added (BVA) – you need to do activities to have that information on the product
- Internal: Required to sustain the business
▪ On the bottle there is an inspection on the water + show it on the bottle e.g., date
- External: Required by law/industry regulators
➢ BVA: Customers are not interested in this information. Some people are bizzy all the time
with BVA.
Non Value Added (NVA)
- Waste: Creates no value and is not absolutely required
➢ Reduce = make it as slim as possible
3
