Summary

Lean thinking and lean methodologies were developed in a manufacturing environment in the quest to improve productivity, profitability and quality. The central focus of traditional lean practices involves the reduction of waste in all its forms, and the rationalisation of inventory levels. Lean thinking has been extended beyond pure manufacturing environments and also includes lean enterprises and service organisations such as health care providers, government departments, and financial institutions.

A fundamental component of lean is the concept of maximising the "value-added" activities in a given process and thereby improving productivity levels. By providing the right materials, in the right quantity, at the right time production flows can be improved and costs reduced. Lean thinking seeks to minimise defects and thereby to reduce rework and repairs which represent wasted and non-productive effort. The smooth flow of work processes and capitalising on the experience and knowledge of staff are key lean principles. Improved cycle times are important measures in lean systems and this relates to spending a maximum of time on value added work and minimising non value adding activities.

A change of culture is often experienced with the implementation of lean methodologies which involve: