Kanban guide · Lean foundations
Lean Manufacturing: Principles, Wastes and Tools
Lean manufacturing is a way of producing goods that maximises customer value while minimising waste. Developed at Toyota and later studied worldwide, it underpins Kanban, Agile and much of modern operations management.
Key takeaways
- Lean began at Toyota and focuses on value and waste.
- The seven wastes apply to knowledge work as well as factories.
- JIT, kanban, jidoka, 5S and kaizen are core Lean tools.
Origins
Lean grew out of the Toyota Production System, developed from the late 1940s by Taiichi Ohno, Eiji Toyoda and colleagues. The term "lean" was coined by researcher John Krafcik in 1988 and popularised by The Machine That Changed the World (1990), a study of the global car industry by Womack, Jones and Roos.
The seven wastes (muda)
| Waste | Manufacturing example | Knowledge-work example |
|---|---|---|
| Transport | Moving parts between distant areas | Handing work between many teams |
| Inventory | Stockpiles of parts | Large backlogs; half-finished work |
| Motion | Workers walking to fetch tools | Searching for files and information |
| Waiting | Machines idle for parts | Waiting for approvals or reviews |
| Overproduction | Making more than ordered | Building features nobody uses |
| Over-processing | Unneeded precision | Excessive documentation or gold-plating |
| Defects | Scrap and rework | Bugs and errors needing rework |
Many practitioners add an eighth waste: unused talent.
Key Lean tools
- Just-in-Time: produce only what is needed, when needed.
- Kanban: signals that pull production; see what is Kanban.
- Jidoka: build quality in; stop the line when a problem occurs.
- 5S: sort, set in order, shine, standardise, sustain; see visual management.
- Kaizen: continuous, incremental improvement by everyone.
- Value stream mapping: see the whole flow; see VSM.
- Heijunka: level the production schedule.
- Poka-yoke: mistake-proofing.
Lessons for project teams
- Focus on customer value and stop doing work that doesn't add it.
- Limit work in progress and make work flow.
- Make problems visible and fix their causes.
- Let the people doing the work improve it.
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Frequently asked questions
What is the main goal of Lean manufacturing?
To deliver maximum customer value with minimum waste, through continuous improvement.
Is Lean manufacturing only for factories?
No. Although Lean manufacturing began in factories, Lean principles are used in healthcare, software, services, construction and project management.
What is Lean manufacturing?
Lean manufacturing is an approach to production that maximises customer value by systematically removing waste and improving flow. It grew out of the Toyota Production System.
Where did Lean manufacturing come from?
It came from the Toyota Production System, developed from the late 1940s by Taiichi Ohno, Eiji Toyoda and colleagues. The term "lean" was coined by John Krafcik in 1988.
What is muda in Lean manufacturing?
Muda is the Japanese word for waste: any activity that uses resources without adding value for the customer. Lean also targets mura (unevenness) and muri (overburden).
What is 5S in Lean manufacturing?
5S is a workplace organisation method: sort, set in order, shine, standardise and sustain. See visual management.
What is jidoka in Lean manufacturing?
Jidoka, sometimes called automation with a human touch, means machines or people stop the process as soon as a defect is detected, so problems are fixed at the source.
What are the main Lean manufacturing tools?
Common tools include Just-in-Time, kanban, jidoka, 5S, kaizen, value stream mapping and standard work.
What is the difference between Lean manufacturing and Six Sigma?
Lean focuses on removing waste and improving flow, while Six Sigma focuses on reducing variation and defects with statistical methods. Many organisations combine them as Lean Six Sigma.
How do project managers use Lean manufacturing ideas?
Project teams apply Lean by cutting waiting and hand-offs, limiting work in progress, visualising work and running regular improvement reviews.
How does the Toyota Production System relate to Lean manufacturing?
The Toyota Production System is Toyota's approach to manufacturing, built on Just-in-Time and jidoka. It is the foundation of Lean manufacturing and of kanban.