Certified Lean Practitioner Course Material Section 2 – Lean Management Basics

2. Lean Management Basics

ASIAN INSTITUTE OF QUALITY MANAGEMENT 1 www.aiqmindia.com

Certified Lean Practitioner Course Material Section 2 – Lean Management Basics

2. LEAN MANAGEMENT BASICS:

Lean management defines the value of a product or a service from the

customer’s point of view. Customers do not mind how hard you work or what is
the technology you used to create the product or service you are selling to them.

Customers will evaluate your product or the service by looking at how well
this is going to fulfill their requirements.

Who is your customer (internal or external)?

How do you identify his needs?

Whatever you are giving to your customer – is it of value to him?

• Customers do not need to pay for the quality defects you have
removed from your production lines due to re-work.

• They also do not need to pay for the huge amounts of overhead costs
you have in your facility.

• They will like to pay only for the fulfillment of their requirements with the
product or service that you are providing to them.

So, we need to wear the glasses of the customer in defining VALUE.

What do you see as a waste in your organization:

 Generating scrap or re-work due to defects,

 Excess inventory in the stores,

 Unnecessary movements / steps in carrying out a process,

 Underutilizing the talent of your people.

Yes, all these are examples of waste and often they account for nearly for
80% - 90% of the resources wasted in the organization.

ASIAN INSTITUTE OF QUALITY MANAGEMENT 2 www.aiqmindia.com

Certified Lean Practitioner Course Material Section 2 – Lean Management Basics

In Lean Management, the wastes are defined as anything that does not add
value to the end product.

Most of these wastes are avoidable with a little effort, provided we see them as
wastes. Every waste shows an opportunity for improvement.

Lean management talks about eliminating, not minimizing waste.

WHEREVER, THERE IS A WASTE, SIMPLY GET RID OF IT

ASIAN INSTITUTE OF QUALITY MANAGEMENT 3 www.aiqmindia.com