In discussing process improvement, it’s important to delve into the Lean methodology. Building on the concepts outlined in the previous post, Lean is a systematic approach aimed at minimizing or eliminating non-value-adding activities in a process, while simultaneously enhancing those that add value. By focusing on value-added activities, the Lean methodology not only ensures high quality but also significantly boosts customer satisfaction.
It helps in;
- reducing process cycle time
- improving product or service delivery time
- reducing or eliminating the chance of producing defects
- reducing the inventory volume consumption
- optimizing consumption of resources for key improvements among others
It’s a never-ending approach at waste removal, thus promotes a continuous chain of improvements.
Adding Values
Depending on the type of business process & industry context, the customer defines “values”. As we learnt, “value” is attributed to the customer’s perception about the product or service.
A process is a collection of activities, which transfigures inputs into outputs using resources. Of a process, these activities can be classified into following three types:
Types of Activities at Value
- Non-Value-Added Activity: Does not contribute any value to the process or product. They perform wasteful engagements. Obviously customers have no intention to pay for the costs associated with these activities. Rather, when such activities are excessive, they lead to customer dissatisfaction.
- Value-Added Activity: Enhances values to the process and are thus indispensable. It improves processes for productivity and quality.
- Enabling Value-Added Activity: An activity of this type has no direct impact to the customer value. But it helps the continuation of the process.
In any process, almost 80 – 85% of activities are None-Value-Added activities. The scope of the Lean approach is to narrowing them down in the process. And specific Lean tools are there to eliminate or minimize them. As a result, Lean improves process efficiency.
Removing Wastes
Lean concept obtains its birth from Toyota Production System (TPS). TPS model naturally is well suited for High Volume Production environment. However, Lean finds its application in any environment, wherever even a single process waste is witnessed. Lean can be applied to manufacturing as well as service industries. It causes no doubt that Lean, nowadays, is being adopted by service sectors with both arms.
Stemming from the Toyota Production System, the 3M model – Muda, Mura, Muri – exposes inefficient processes that are a hindrance to customer value generation.
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