Optimising a company's performance by eliminating waste and improving efficiency. That's the aim of lean management. Applied mainly in industry (lean manufacturing), it is above all a state of mind to be adopted in order to continually improve company processes. So what makes lean management an effective methodology? What are the main tools? What are the key stages in setting up a lean system? What are the challenges and limitations of implementing a lean system? Find out from Pierre Sarramaigna, an expert in management, production management and operational excellence.
“Lean management is above all a philosophy, a culture of improvement identified by behaviors based on easy-to-use tools.” Historically, lean was first widely deployed in different industries: automobile, aeronautics, pharmaceutical, etc. This concept was developed by Toyota in the 1950s, with the implementation of the Toyota Production System (TPS), a new mode management of industrial activities. The objective: to eliminate any activity without added value for the end customer.
This success challenged a team of researchers at the end of the 1980s. Conclusion: Toyota's TPS can be applied in all companies in all sectors and all countries. Hence the birth of the term “lean” (“lean”, “fat-free”, in French). Ten years later, the work The Machine That Changed the World (1991) helped popularize the lean manufacturing philosophy and inspired many companies to adopt this approach to improve their efficiency and competitiveness.
Since then, lean management has integrated other concepts and methods linked tocontinuous improvement, like the theory of constraints, the Six Sigma® methodology or even Agile methods. The objective remains the same: the search for optimization and a need for efficiency to aim for performance at all levels of production.
What fundamental principles?
The principles of lean management include continuous improvement, optimization of processes and production flows, employee engagement, compliance with Quality rules and standards. The goal is to create a flexible company, capable of responding quickly to customer requests while minimizing costs and production times. In other words, it involves setting up a culture of continuous improvement by eliminating waste (“muda” in Japanese) in a production or service system, in order to maximize added value for customers.
Eliminating waste
Waste can take three different forms depending on its nature:
- Muri: the saturation of a resource, an excessive task, too difficult, or even impossible;
- Mura: phenomena of variability;
- Muda: tasks without added value.
Typology of muda
- errors, defects and rejects;
- waiting times and delays;
- unnecessary inventory;
- unnecessary transport and handling (of products);
- unnecessary movements and travel (of employees);
- underutilization of skills.
Among these types of waste, we can note two specificities:
- overproduction (producing too much or too soon) which affects the company's finances;
- overprocessing (superfluous operations, overquality controls).
We therefore distinguish between value-added time and non-value-added time: everything necessary to create added value (turning on machines, changing tools, etc.) and waste.
Other key principles
Another fundamental principle is the inventory on the ground. This involves meeting operational staff (production, logistics, etc.), identifying (quickly) problems and determining their causes, and applying collective intelligence to resolve them. This is the principle of the Gemba Walk.
Lean requires a certain methodological rigor. “This is the condition for perpetuating the tools.” In other words, it is a question of collectively determining rules, respecting standards, norms (ISO 9001 for quality management, HACCP for the agri-food industry, etc.)… “and maintaining them at a high level of adherence, or even make them evolve.”
Furthermore, employee commitment – at all levels (production lines, management, support functions, etc.) – is imperative to take ownership of the tools. Once these fundamentals are in place, it remains to propose effective and sustainable solutions.
“The whole challenge lies in resolving the problems sustainably.”
What tools?
A "toolbox" is being put together to implement lean management in industry. It includes a variety of tools:
- value flow mapping: SIPOC, Swimlane diagram, VSM…
- process diagrams aimed at problem solving: Ishikawa, 5 whys, QRQC;
- visuals: 5S, visual management, standardization…
- “Just-in-Time”: Kanban, Takt Time, push/pull flow;
- strategic: “Hoshin Kanri” to deploy the corporate vision.
The 5S method, an efficient visual tool
The 5S method is an organization and quality management technique. The objective: to improve and secure the working environment. Originally, we found this method in production workshops, then offices and services. Using tables, then dematerialized solutions (SQCDP) for real-time display, performance indicators are recorded and gaps are measured during the 5 key stages: sorting, storage, cleaning, standardization then improvement. This visual tool allows for faster appropriation.
Lean, for whom?
Lean management can be applied in all types of businesses. It remains to be seen whether there is a team dedicated to its implementation, whether lean is an integral part of the strategy... in which case, the company must report on it, under the cover of standards and certifications. In small businesses, generally, there are no dedicated people. VSE/SME leaders and middle managers are therefore trained in this direction.
What key steps, according to what strategy?
Implementing lean methodology in an industrial company generally involves the following steps:
- identification of key processes;
- identification of waste;
- process improvement;
- Establishing a culture of continuous improvement;
- standardization of improved processes.
These different key stages vary depending on the business strategy. If it is a complete deployment of the method – 3 to 5 years – it is then necessary to define an objective, a transformation plan. “Everything depends on the preparation to implement lean management.” Among the actions to be carried out: designate project pilots, carry out the pilot project then duplicate it so that “ lean is anchored in the collective in a sustainable way ".
“Lean is a path towards sustainable performance”.
In any case, it is necessary to establish a performance diagnosis, identify sources of improvement, carry out regular piloting and sustainable improvement actions. This is the objective of the Kaisen shipyards. Without forgetting awareness-raising actions: training, regular support to “facilitate the progress of projects and secure teams”, co-development activities. This is without also counting on feedback to “improve standards and develop good practices in the company”. The key factor for success: the presence and involvement of management and top management, the definition of clear objectives and action plans. Essential conditions for implementing lean management.
What limits, for what solutions?
The deployment of lean management may encounter certain obstacles. We must first ask ourselves the following questions: what meaning do we give to a lean approach? Is this meaning shared?
Then, there are several ways to implement lean. We must therefore not focus on the tools, but rather “appropriate them and adapt the concepts without losing sight of common sense”. Lean management must improve team performance and commitment. Provided you have sufficient means to achieve this. “We must therefore persevere, because the effects are not necessarily immediate.” And the challenges are numerous. Implementing a lean system involves:
- to inform the teams and explain: define the roles of each person, achieve voluntary involvement;
- to reassure: by being supported by an internal or external expert, particularly when it comes to embarking on a 5S project for example;
- not to be too ambitious: aim for small successes by minimizing the efforts produced using simple and effective tools;
- to be constant: it is about carrying out projects sustainably, insisting, being convinced and convincing of the effectiveness and interest of the lean approach.
“The maturity of lean remains moderate across all companies. This approach remains less obvious for VSEs/SMEs, and very often, we have not worked upstream on improving the process.” The real challenge therefore consists of raise awareness among small businesses to acculturate them to lean management. A challenge which therefore involves the implementation of basic projects such as 5S and routines in the company.
Key points to remember: lean management is an effective methodology for improving industrial processes, as well as a mindset to adopt in order to continually improve business processes. This approach can also be deployed in other areas or sectors of activity: IT, construction, banking, health, etc.
