© www.leanthinking.ie 2012
Home Lean Thinking Lean Training IPad App About Contact Lean News
Value ‘Value is what the customer is prepared to pay for. Anything else is waste and should be eliminated’ Value Stream is the set of all actions (both value added and non value added) required to bring a specific product or service from raw material through to the customer.
Lean Principles Lean Thinking focuses on eliminating  non-value added activities from the  company’s processes, including  defects. 
There are FIVE overriding principles to Lean.    1. Identify Customers and Specify Value - The starting point is to recognise that only a small  fraction of the total time and effort in any organisation actually adds value for the end customer. By  clearly defining Value for a specific product or service from the end customer’s perspective, all the  non value activities - or waste - can be targeted for removal.    2. Identify and Map the Value Stream – The Value Stream is the entire set of activities across all  parts of the organisation involved in jointly delivering the product or service. This represents the end- to-end process that delivers the value to the customer. Once you understand what your customer  wants the next step is to identify how you are delivering (or not) that to them.    3. Create Flow by Eliminating Waste – Typically when you first map the Value Stream you will find  that only 5% of activities add value, this can rise to 45% in a service environment. Eliminating this  waste ensures that your product or service “flows” to the customer without any interruption, detour or waiting.     4. Respond to Customer Pull – This is about understanding the customer demand on your service  and then creating your process to respond to this. Such that you produce only what the customer  wants when the customer wants it.     5. Pursue Perfection - Creating flow and pull starts with radically reorganising individual process  steps, but the gains become truly significant as all the steps link together. As this happens more and  more layers of waste become visible and the process continues towards the theoretical end point of  perfection, where every asset and every action adds value for the end customer.
Lean Thinking