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What is Lean?
There are several definitions of Lean, a valid definition is the following:
Lean is a way to understand the value of a product from the point of view of the customer and eliminating waste.
It is also a series of methodologies to create a continuous flow of value-added activities that are determined by the customer.
To achieve these objectives, Lean has several tools.
Waste
As explained above, one of Lean's priority is to eliminate waste, which is defined as the following items and activities:
- Defective product.
- Overproduction.
- Inventory.
- Movement.
- Transactions.
- Transport.
- Wait.
Some examples of waste are: seeking, select, move, etc.
Value
Another central argument within the Lean philosophy is the concept of value, which separates the activities of a company into three types:
- Value-added activities. Are the activities that produce a product or provide a service in a way that a customer is willing to buy.
- Activities of business value. These are activities that do not create value for the customer, but are necessary for the business.
- Pure waste.These are activities that use resources, but do not create value.
System efficiency
Lean believes in the efficiency of a system over the individual efficiency of a process. A system is efficient when all processes are working at the same rythm (a balanced flow).
The efficiency of a process can work against the system efficiency. When each activity works at their own pace, as fast as possible, there are local efficiency but this may reduce overall system efficiency.
Takt time
Another key concept to understand the lean philosophy is Takt Time. Takt Time is the rate at which a system must work to produce a product or provide a service, is determined by the following formula:
Therefore, as we stated in the formula above, Takt Time indicates how many products we have to produce daily.
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