Depending on your background, you might have a very different definition of Lean methodology than someone in another industry. Technically, you could both be right. Lean, in its purest sense, is a methodology that aims to organize human activities to deliver more value while eliminating waste. Show
People have taken many different approaches to defining Lean methodology, and may even use different names for it. Each of these sub-disciplines pays some regard to Lean principles, but some are more closely aligned with the original intention of Lean methodology than others. Keep reading to learn about these Lean definitions and what they might mean for your Lean practice. Getting Started with LeanLean is a mindset that helps you make smarter decisions about how to invest your time, energy, and money. View the eBook • Getting Started with Lean7 Stages to Lean Budgeting SuccessStep-by-step guide to successfully adopt Lean budgeting practices in your own organization. View the eBook • 7 Stages to Lean Budgeting SuccessA Brief History of Lean MethodologyLean thinking was developed by Japanese automaker Toyota in the mid-20th century, in a method called the Toyota Production System (TPS). TPS allowed Toyota to deliver more innovative products than its competitors with faster speed and less waste. Its competitors had no choice but to follow suit, and so Lean manufacturing was born, first in the auto industry, then spreading to manufacturing at large. By the end of the century, businesses across the globe were trying to find ways to apply Lean methodology to their industries to achieve similar results. This resulted in several manifestations of what we would now loosely refer to as Lean, including Total Quality Management, Theory of Constraints, Just-in-Time, and Six Sigma. These versions of Lean methodology were generally prescriptive, structured, and focused on the elimination of waste. Over time, the definition of Lean has evolved, to become more of a flexible methodology than a regimented set of practices. It’s important to understand how you define Lean methodology, because this impacts how you practice Lean, how Lean impacts your business, and how you define Lean management and its role in your business. TPS and the Evolution of Definitions of Lean MethodologyThe main objectives of the Toyota Production System (TPS) were to remove overburden (muri) and inconsistency (mura) from the system and to eliminate waste (mura). These objectives work together to create a system optimized for value delivery. This is based on the idea that a well-designed process (with little inconsistency) delivers a more predictable, consistent product. It’s critical that this process is flexible (not overburdened), since an overburdened system just creates more waste, which leads to less value and more inconsistency in the product. In the process of applying Lean to knowledge work, the definition of Lean has evolved from the original application in manufacturing in two distinct ways. The first defines waste literally, and applies Lean manufacturing principles in a literal sense to justify eliminating this definition of waste. The second defines waste as anything that wouldn’t add value to the customer, which can come in many tacit forms. It uses an evolved definition of Lean principles to focus more on improving the flow of value to the customer through continuous improvement, rather than on the strict elimination of waste. The old definition of Lean MethodologyDrawing influence from Lean manufacturing, the goal of this first definition of Lean methodology is operational excellence, which is achieved by eliminating waste. This interpretation of Lean is more of a set of practices than a principled methodology. Most applications of Lean methodology using this definition use a prescriptive set of rules, tools, and certifications to practice Lean. This definition of Lean methodology requires a new definition of Lean management, as well. The way we define Lean management requires a shift in mindset: from that of a commanding role, to that of a teacher and coach. Lean leaders must lead gently, by example, ensuring that Lean principles are being applied with the right goal in mind: To sustainably maximize the delivery of value to the customer. This waste is related to the time and materials spent doing something of poor quality and later fixing it or trashing it. Lean practitioners also count the inspection cost as part of this waste (although you shouldn't reduce inspection unless you've created perfect quality through mistake-proofing techniques). Here are some examples:
 TransportationThe waste of transportation involves moving inventory, people, tools, or other items more often or further than is necessary. Excessive movement can lead to product damage, unnecessary work, and exhaustion. Examples of transportation waste include:
WaitingWaiting involves customers, patients, or inventory sitting idle. Waiting happens when the person or item is ready for the next step, but the process is not prepared to accommodate them. Here are some examples:
MotionThe waste of motion involves the unnecessary movement of people or items within a work center. It is often the result of neglecting the 5s'. Here are some examples:
OverproductionProducing more of a product than can be consumed at the time creates the waste of overproduction. Making too much of something (or making it too early) creates other types of waste. Overproduction is of particular concern because it exacerbates transportation, inventory, and motion wastes. Examples include:
Over-processingOver-processing means doing work that does not add value to the customer. Over-processing is resolved with simplification. Sometimes, in Lean, the best approach is to stop doing some things instead of figuring out how to do them better.
InventoryThe waste of inventory involves storing products or materials that are not needed. Excess inventory results in a waste of space, and it wastes the cost associated with the physical inventory. Although it is a significant concern in manufacturing, it occurs in other sectors as well.
Human PotentialFor a long time, the discussion centered around only the prior seven Lean wastes, but more recently, the waste of human potential has joined their ranks, and with good reason. It is probably the most common and most damaging type of waste that organizations encounter. You see it when:
The Lean Wastes and COVID-19Although it is not over yet, the COVID-19 pandemic offers many insights into how waste impacts the critical healthcare needs of millions of people. Software Assisted Waste ReductionContinuous improvement software can significantly affect organizations serious about finding and eliminating waste in all of its forms. Here's how it helps:
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