LEAN management

Delivering value as defined by the customer - Eliminating waste – Continuous improvement

Vico (TNHH Thắng Lợi) company – a mechanical enterprise after 5 years of applying
LEAN management system has earned a 20 – 25% productivity boost by eliminating
input waste, reducing transportation time, …
WHAT IS LEAN MANAGEMENT?
LEAN management is an approach to managing an organization that supports the concept
of continuous improvement, a long–term approach to work that systematically seeks to
achieve small, incremental changes in processes in order to improve efficiency and
quality.
WHERE LEAN CAME FROM?
The principles of Lean were first introduced in the book “The Machine That Changed the
World” (1991) by James P. Womack, Daniel T. Jones, and Daniel Roos. The authors
studied several manufacturing systems and wrote the book based on their observations at
Toyota.
5 PRINCIPLES OF LEAN

Defining Mapping the Creating

value value stream flow

Using a pull Pursuing

system perfection

- Defining value: (the 1st step) means finding the problem that the customer needs
solved and making the product the solution. Any process or activity that does not
add value -- meaning it does not add usefulness, importance, or worth -- to the
final product is considered waste and should be eliminated.
- Mapping the value stream: refers to the process of mapping out the company's
workflow (actions and people). This helps managers visualize which processes are
 led by what teams and identify the people responsible for measuring, evaluating,
and improving the process.
- Creating flow: means ensuring each team's workflow progresses smoothly and
preventing any interruptions or bottlenecks that may occur with cross-functional
teamwork. In this step, Kanban is used. (chèn thông tin về kanban vào)
- Using a pull system: ensures that the continuous workflow remains stable and
guarantees that the teams deliver work assignments faster and with less effort. A
pull system is a specific lean technique that decreases the waste of any production
process (8 types of waste: transportation; inventory; motion; waiting;
overproduction; overprocessing; defects). It ensures that new work is only started
if there is a demand for it, thus providing the advantage of
minimizing overhead and optimizing storage costs.
- Pursuing perfection: (the most important one) refers to a variety of techniques
that are used to identify what an organization has done, what it needs to do, any
possible obstacles that may arise, and how all members of the organization can
make their work processes better (Kaizen). (chèn thông tin về Kaizen)
WHY USE LEAN?
- Creating a more intelligent business process - The pull system ensures work is
only carried out when there is an actual demand and need for it.
- Improving the use of resources - The pull system also ensures the organization is
only using resources when they are needed since it operates based on real
customer demand.
- Improving focus - Lean management decreases the number of wasteful activities,
therefore allowing the workforce to increase their focus on tasks that produce
value.
- Enhancing productivity and efficiency - Improved focus leads to a more
productive and efficient workforce since attention is not given to unnecessary
activities.