What is LEAN - a business process maximizes value while minimizing waste.
- The term LEAN transformation is used to characterize a company moving from an “old way” of thinking to “lean thinking”.
- LEAN is about creating the most value for the customer while minimizing waste.
- LEAN approach is about understanding what’s really going on, and improving the processes by which products and services are created and delivered.
- LEAN is doing more productive work with less effort and waste
- LEAN is NOT about doing more work with less resources.
In Business: It maximizes value while minimizing waste
In Software Development: a concept that emphasizes optimizing efficiency and minimizing waste in the software development process.
What is Six Sigma?
Six Sigma is a set of techniques and tools for process improvement.
Lean + Six Sigma = Lean Six Sigma is a method that relies on a collaborative team effort to improve performance by systematically removing waste and reducing variation.
It mentions waste several times, so the overall idea of LEAN principles is to cut off waste.
What is waste in Lean Principles?
Any action that does not add value to the customer
Definition of waste in Six Sigma
Waste is any process activity that does not add value for the customer. The customer will not pay for this non-value added work, yet you expend resources creating the waste.
- Defects – Products or services that are out of specification that require resources to correct.
- Overproduction – Producing too much of a product before it is ready to be sold.
- Waiting – Waiting for the previous step in the process to complete.
- Non-Utilized Talent – Employees that are not effectively engaged in the process
- Transportation – Transporting items or information that is not required to perform the process from one location to another.
- Inventory – Inventory or information that is sitting idle (not being processed).
- Motion – People, information or equipment making unnecessary motion due to workspace layout, ergonomic issues or searching for misplaced items.
- Extra Processing – Performing any activity that is not necessary to produce a functioning product or service.
To remember the 8 Wastes, you can use the acronym, “DOWNTIME.”