application of lean

8/13/2019 Application of Lean

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RISHABH TANDON


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By improving an "operating system"the configuration of

assets, material resources, and staffa lean approach can

cut costs dramatically, typically by 15 to 30 percent.

Lean aims to optimize costs, quality, and customer serviceconstantly. It does so by engaging and equipping employeesto focus on creating and delivering value in the eyes of thecustomer and eliminating whatever doesn't contribute tothis goal.


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A major European telecommunications company, successfullyapplied lean techniques to a problem that was leading many of itscustomers to switch to competitors: the repair of faulty telephonelines.

The company found that its call center operators, diagnosticsexperts, and repair technicians operated as though they actuallyworked for rival employers. As a result, it took an average of 19hours to repair a line.

Using lean principles, the company realigned its organization andinvested in the development of team leaders. In the first fewmonths of its pilot project, productivity increased by 40 percentand recurring failures fell by 50 percent. The program was thenrolled out across the company's national network, where itachieved similar success.


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A major European bank used lean techniques to reduce the

processing time for mortgage applications to 5 days, from

35. Because fewer applicants dropped out of the process, thebank's revenues grew by 5 percent even as processing costsfell by 35 percent.


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Lean services is the application of the leanmanufacturingconcept to service operations. It is distinct inthat Lean services are not concerned with the making of

hardproducts.

Lean principles of Continuous Improvementand Respect forPeople have been applied to all manner of services includingcall center services, health care, higher education, softwaredevelopment, and public and professional services
http://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Continuous_Improvement_Processhttp://en.wikipedia.org/wiki/Continuous_Improvement_Processhttp://en.wikipedia.org/wiki/Continuous_Improvement_Processhttp://en.wikipedia.org/wiki/Continuous_Improvement_Processhttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturing


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The wastes for service operations by Bicheno and Holweg (2009) is as follows:1. Delay on the part of customers waiting for service, for delivery, in queues, for

response, not arriving as promised. The customers time may seem free to theprovider.

2. Duplication. Having to re-enter data, repeat details on forms, copy informationacross, answer queries from several sources within the same organisation.3. Unnecessary Movement. Queuing several times, lack of one-stop, poor

ergonomics in the service encounter.4. Unclear communication, and the wastes of seeking clarification, confusion over

product or service use wasting time finding a location that may result in misuse

or duplication.5. Incorrect inventory. Being out-of-stock, unable to get exactly what was required,substitute products or services.

6. An opportunity lost to retain or win customers, a failure to establish rapport,ignoring customers, unfriendliness, and rudeness.

7. Errors in the service transaction, product defects in the product-service bundle,

lost or damaged goods.


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Lean IT is the extension of lean manufacturing and leanservices principles to the development and managementof information technology (IT) products and services. Itscentral concern, applied in the context of IT, is theelimination of waste, where wasteis work that adds no valueto a product or service.

For example, whereas the manufacturing functionmanufactures goods of value to customers, the IT functionmanufactures business services of value to the parentorganization and its customers. Similar to manufacturing,the development of business services entails resourcemanagement, demand management, quality control,security issues, and so on.
http://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_serviceshttp://en.wikipedia.org/wiki/Lean_serviceshttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Information_technologyhttp://en.wikipedia.org/wiki/Lean_serviceshttp://en.wikipedia.org/wiki/Lean_serviceshttp://en.wikipedia.org/wiki/Lean_serviceshttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturing


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Lean software development (LSD) is a translation of leanmanufacturing and lean IT principles and practices tothe software developmentdomain

Origin: The term lean software developmentoriginated in a book

by the same name, written by Mary Poppendieck and TomPoppendieck.

Everything not adding value to the customer is considered to bewaste (muda). This includes:

1. unnecessary code and functionality

2. delay in the software development process3. unclear requirements4. insufficient testing, leading to avoidable process repetition5. bureaucracy6. slow internal communication
http://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_IThttp://en.wikipedia.org/wiki/Software_developmenthttp://en.wikipedia.org/wiki/Muda_(Japanese_term)http://en.wikipedia.org/wiki/Software_development_processhttp://en.wikipedia.org/wiki/Requirementshttp://en.wikipedia.org/wiki/Bureaucracyhttp://en.wikipedia.org/wiki/Bureaucracyhttp://en.wikipedia.org/wiki/Requirementshttp://en.wikipedia.org/wiki/Software_development_processhttp://en.wikipedia.org/wiki/Muda_(Japanese_term)http://en.wikipedia.org/wiki/Software_developmenthttp://en.wikipedia.org/wiki/Software_developmenthttp://en.wikipedia.org/wiki/Software_developmenthttp://en.wikipedia.org/wiki/Lean_IThttp://en.wikipedia.org/wiki/Lean_IThttp://en.wikipedia.org/wiki/Lean_IThttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturinghttp://en.wikipedia.org/wiki/Lean_manufacturing


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In order to be able to eliminate waste, one should be able torecognize it.

If some activity could be bypassed or the result could be achievedwithout it, it is waste.

Partially done coding eventually abandoned duringthe development processis waste.

Extra processes and features not often used by customers arewaste.

Waiting for other activities, teams, processes is waste. Defectsand lower quality are waste.

Managerial overhead not producing real value is waste. A valuestream mapping technique is used to distinguish and recognizewaste.

The second step is to point out sources of waste and eliminatethem. The same should be done iteratively
http://en.wikipedia.org/wiki/Software_development_processhttp://en.wikipedia.org/wiki/Software_development_processhttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Value_stream_mappinghttp://en.wikipedia.org/wiki/Software_development_processhttp://en.wikipedia.org/wiki/Software_development_processhttp://en.wikipedia.org/wiki/Software_development_process


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Lean Governmentrefers to the application of lean production(also known as"Lean") principles and methods to both identify and then implement the mostefficient, value added way to provide government services. Governmentagencies have found that when Lean methods are implemented, they see animproved understanding of how their own processes work, that it facilitate

the quick identification and implementation of improvements and that itbuilds a culture of continuous improvement.

Some examples of federal government organizations with active LeanGovernment initiatives include:

U.S. Environmental Protection AgencyU.S. Department of Defense

Common methods and approaches:

1. Value stream mapping(VSM)2. Kaizen3. 5S-Sort, Set in Order, Shine, Standardize, and Sustain.
http://en.wikipedia.org/wiki/Lean_productionhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/wiki/Continuous_improvementhttp://www.epa.gov/lean/leangovernment/http://dcmo.defense.gov/http://dcmo.defense.gov/http://dcmo.defense.gov/http://www.epa.gov/lean/leangovernment/http://en.wikipedia.org/wiki/Continuous_improvementhttp://en.wikipedia.org/wiki/Continuous_improvementhttp://en.wikipedia.org/wiki/Continuous_improvementhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/wiki/Value_addedhttp://en.wikipedia.org/wiki/Lean_productionhttp://en.wikipedia.org/wiki/Lean_productionhttp://en.wikipedia.org/wiki/Lean_production


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Inventory = Backlog of Work, ExcessMaterials or Information

Defects = Data Errors, Missing Info Overproduction = Unneeded Reports, Doing

Work Not Requested Complexity = Unnecessary Process Steps

Waiting = Unnecessary Approval Cycles Excess Motion = Trips to Remote Printer or

Files Moving Items = Report Routing, File Storage


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Lean Start-up, how to start a company in a lean way Lean constructionis a translation and adaption of lean manufacturing

principles and practices to the end-to-end design and constructionprocess

Lean Laboratory, application of lean manufacturing principles in alaboratory

Lean Integration, application of lean manufacturing principles to dataand systems integration

Lean Higher Education, application of lean manufacturing principles in

Higher Education Lean Six Sigma, combination of lean and six sigma approaches. Lean accounting, move away from traditional accounting methods to a

system that measures and motivates excellent business practices in thelean enterprise.
http://en.wikipedia.org/wiki/Lean_Startuphttp://en.wikipedia.org/wiki/Lean_constructionhttp://en.wikipedia.org/wiki/Lean_Laboratoryhttp://en.wikipedia.org/wiki/Lean_Integrationhttp://en.wikipedia.org/wiki/Lean_Higher_Educationhttp://en.wikipedia.org/wiki/Lean_Six_Sigmahttp://en.wikipedia.org/wiki/Lean_accountinghttp://en.wikipedia.org/wiki/Lean_accountinghttp://en.wikipedia.org/wiki/Lean_Six_Sigmahttp://en.wikipedia.org/wiki/Lean_Higher_Educationhttp://en.wikipedia.org/wiki/Lean_Integrationhttp://en.wikipedia.org/wiki/Lean_Integrationhttp://en.wikipedia.org/wiki/Lean_Laboratoryhttp://en.wikipedia.org/wiki/Lean_constructionhttp://en.wikipedia.org/wiki/Lean_constructionhttp://en.wikipedia.org/wiki/Lean_Startuphttp://en.wikipedia.org/wiki/Lean_Startuphttp://en.wikipedia.org/wiki/Lean_Startup


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