Lean management cycle

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Progress in manufacturing is measured by the production of high quality goods. The unit of progress for Lean Startups is validated learning-a rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty. Once entrepreneurs embrace validated learning, the development process can shrink substantially. When you focus on figuring the right thing to build-the thing customers want and will pay for-you need not spend months waiting for a product beta launch to change the company's direction. Instead, entrepreneurs can adapt their plans incrementally, inch by inch, minute by minute.

The elements of 5S are all valuable in their own right but they simply form part of the bigger picture of establishing good practice. They sit alongside the other elements of Lean , or Just in Time, or World Class and some of the elements in, for example, Seiton (standardisation) are in fact straight lifts from textbooks on other forms of improvement activity. There is nothing in any 5S material, for example, to give guidance on improving the clerical processes for generating production paperwork following receipt of a sales order! The answer, surely, is to understand 5S as we understand all aspects of other types of improvement and problem-solving activity and then to agree a change programme for our own business. This is not to say that we must not launch a project which we call "5S" - some businesses have more success if improvement initiatives are launched with a generic, well-publicised term as project name. Equally, this is not a good solution in other organisations. Again, the history and culture of the company or the specific plant have to be taken into account when this decision is taken.

While companies seek ways to reduce waste, the less formal, sometimes messy creative process and ideation may hold more value in the long run than saving a few dollars on a particular process. It is impossible to put a price on innovation, therefore a company’s decision as to how much time to devote to continuous improvement can be complex. Whether or not a company chooses to make continuous improvement a part of its everyday culture depends on the particular needs of the company and the potential cost savings that may come as a result.

Lean management cycle

lean management cycle

While companies seek ways to reduce waste, the less formal, sometimes messy creative process and ideation may hold more value in the long run than saving a few dollars on a particular process. It is impossible to put a price on innovation, therefore a company’s decision as to how much time to devote to continuous improvement can be complex. Whether or not a company chooses to make continuous improvement a part of its everyday culture depends on the particular needs of the company and the potential cost savings that may come as a result.

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