The Lean Methodology

I have previously written about how the Agile methodology is based on the Lean methodology, so now I want to write about what the Lean methodology is.

The Lean methodology is a process improvement methodology that was created by the the Toyota Production System.

The Lean methodology was created to eliminate problems, remove waste and improve efficiency in order to respond to the customers’ needs.

The Lean methodology was originally created to be used in the manufacturing industry. But, the software and manufacturing industries share similarities which made it easy to utilise the lean methodology.

Some of those similarities include the following :

1. They both follow a defined process.
2. They both have some defined acceptance criteria.
3. They both result in tangible value delivery.

Due to the similarities of both industries, overtime the lean methodology was changed the Agile methodology so that it could be used in the software industry.

Due to the success of both the Lean and Agile methodologies in both the manufacturing and software industries, other industries became interested in using these methodologies. Today, the Lean methodology is being used in numerous industries.

So what is the Lean methodology ?

The Lean Methodology is based on the principles of continuous Improvement and respect for people. These principles are commonly known as the pillars of Lean.

1. Continuous improvement: the first pillar of lean is continuous improvement. Continuous improvement is one of the guiding principles of the Lean methodology.

Continuous improvement is the continual improvement of the business processes in an organization, in order to identify the value adding steps in the process and eliminate the non value adding steps which could lead to waste.

So what are these value adding steps in a process ?

Some processes have administrative steps which might lead to bottlenecks in the process.

For example, let us take a look at The Sales Order Process:

The Sales Order Process, is the process which a customer uses to order a product and get it delivered.

The steps in the process are:

1. The process starts when a customer wants to buy a product.
2. They select the product.
3. They pay for the product.
4. The product is prepared for shipping.
5. The product is shipped.
6. The customer receives the delivery.
7. The process ends.

This process has been optimized to identify only the value adding tasks which add value to the customer. But there might be some non value adding tasks that could happen behind the scene such as :

1. The process starts when a customer wants to buy a product.
2. They select the product.
3. They pay for the product.
4. The Invoice clerk verifies the customers credit card details.
5. The credit card verification is sent to the account manager for approval.
6. The account manager approves the credit card verification.
7. The product is prepared for shipping.
8. The product is shipped.
9. The customer receives the delivery.
10. The process ends.

In this second process, steps 4 to 6 are non value adding tasks which can lead to unnecessary bottlenecks. The customer can become frustrated with the delays and cancel the transaction. If this goes on overtime the organization would lose valuable customers and this would lead to lost sales.

If the organization uses the Lean methodology to improve their process, they can replace steps 4 to 6 with an automated credit card verification system. The automated credit card verification system would eliminates the bottlenecks and optimise the process.

Which would create the following process:

1. The process starts when a customer wants to buy a product.
2. They select the product.
3. They pay for the product.
4. Credit card automated system automatically verifies the payment details.
5. The product is prepared for shipping.
6. The product is shipped.
7. The customer receives the delivery.
8. The process ends.

The Lean methodology is used to review a process and identify those steps in the process that are non value adding and can be optimized.

2. Respect for people: the second pillar of lean is respect for people.

In order to identify processes for improvement, you have to respect the people who are actually doing the work.

While the Lean methodology initiative might be initiated by senior management, the people who are actually doing the work are the ones who understand the process best.

So they might be able to offer an insight into ways in which the process can be improved. The Lean methodology encourages people to express themselves and voice their opinions.

So in summary, the Lean methodology is used to optimize the people and resources in an organization in order to create value for the customer.