Lean is a broad catchphrase that describes a holistic and sustainable approach to using less of everything to give you more. Lean concepts aren’t new; companies large and small around the globe have practiced the techniques in various forms for decades. The term Lean can be described by the
following ideas:
Maintaining an unrelenting focus on providing customer value Respecting people most of all
Adopting a philosophy of continuous learning and everyday improvement
Using techniques for reducing variation and eliminating waste Taking the long-term view
Improving value not just locally, but globally — across the whole “value stream”
Providing exactly what’s needed at the right time, based on customer demand
Leading by focusing not just on results, but how results are achieved, where customer value is created, and by building capability in employees
Building long-term relationships with all its stakeholders, including employees, managers, owners, suppliers, distributors, customers, the community, society, and the environment
Keeping things moving — flowing — in a valueadded, effective manner
Lean means less of many things — less waste, shorter cycle times, fewer suppliers, less bureaucracy. But Lean also means more — more employee knowledge and empowerment, more organizational agility and capability, more productivity, more satisfied customers, and more long-term success. Although the term Lean was originally associated with manufacturing and production processes, Lean covers the total enterprise, embracing all aspects of operations, including internal functions, supplier networks, and customer value chains. A broad range of industries — including automotive,
aerospace, banking, manufacturing, retail, construction, energy, healthcare, and government — have applied Lean. The Shingo Prize, called “the Nobel Prize of Manufacturing” by Business Week, was developed to promote Lean practices, and has been awarded in North America each year since 1988. Honoring the renowned engineering genius Shigeo Shingo, its purpose is to “promote awareness of Lean manufacturing concepts.” These broad definitions and history are all interesting enough, but what really matters is that the world’s customers are the better for it — much better, in fact. It’s been invisible to many people, but Lean has brought to everyone vastly improved products and services, and it’s brought them faster, cheaper, and more reliably. Its successes have saved billions of dollars. Its competitiveness has forced traditional functional organizations to retool themselves and focus on customer value. And it has equipped struggling companies and industries with methods and techniques to improve performance.