the lean thinking method: maximum efficiency!

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Britney Setrojojan
May 9, 2023

In the b2b environment, the lean thinking method is a valuable way to improve efficiency within the organization. In addition, it contributes to minimizing waste and increasing customer satisfaction. Aspects that allow you to save costs as an organization. And let's be honest, who doesn't want that?

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the principles of lean thinking were developed by Toyota and have their origins in the manufacturing industry

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Curious about how you can apply the lean thinking method within your organization and where it all started? Then read on soon!

what is the lean thinking method?

Lean thinking is a term that focuses on eliminating waste and maximizing customer value. It originated in the production industry, but is now also used in other sectors, including services.

The core of the lean thinking method lies in combating waste by optimizing processes. This identifies the different types of waste, such as:

  • Overproduction
  • Staff waiting times or unused equipment
  • Redundant movements
  • Overprocessing
  • Excessive inventory
  • Defects
  • Unused talents
  • Unnecessary transports

The goal is to reduce or eliminate these wastes in order to create a more efficient process.

Toyota Production System (TPS) - Source: toyota-global.com

the origin of the Toyota Production System

The basis of the lean thinking method was laid at Toyota. Shigeo Shingo, one of the leading thinkers behind the Toyota Production System, once said: “The most dangerous kind of waste is the waste we don't recognize.” — a statement that seamlessly aligns with the principles of lean thinking.

It Toyota Production System (TPS) was created between 1948 and 1975 at Toyota in Japan. The system was developed by Taiichi Ohno, a Toyota production engineer, and Eiji Toyoda, a company founder. The goal was to develop a production system that was as efficient and effective as possible, with minimal waste of resources. A big difference with working with large stocks and producing large quantities.

To achieve this, Toyota developed various methods and techniques, such as Just-in-Time production and Kanban. At the Just-in-time production, products were produced on time based on customer demand. Kanban is a system for managing materials and processes. The TPS also stands for improvement and respect for people, encouraging employees to identify problems and then solve them to improve the production process.

The success of Toyota Production System has had a great influence on the development of lean manufacturing. Today, many of the principles and techniques of the TPS are being applied. Not only in production companies around the world, but also in services.

the principles of the lean thinking method

The principles of lean thinking were developed by Toyota and have their origins in the manufacturing industry, but can be used in various sectors and organizations.

  • Value: Analyze what value means to your customers. Once you've done this, you can also offer that value.
  • Value stream: Identify the process required to deliver value to the customer. Identify where the wastage occurs.
  • Flow: Here you ensure that the process runs smoothly without interruptions or delays. You strive for an even and continuous flow of work.
  • Question: You organize the process so that it is driven by customer demand — instead of working according to a fixed schedule or inventory.
  • Perfection: Here you strive for the continuous improvement of the process. You do this by systematically looking for ways to eliminate waste, improve quality and increase efficiency.

how do you apply the lean thinking method in a b2b environment?

In a b2b environment, applying the lean thinking method is similar to the application in the production environment. Here are some tips for applying the lean thinking method in a b2b environment:

limit the number of process steps

Try to have as few process steps as possible. The fewer process steps, the faster the value stream. Strive to reduce the number of separate process steps. To do this, you can use ECRS, which stands for: Eliminate, Combine, Reduce, and Simplify. In other words: eliminate, combine, reduce and simplify. By following these four steps, you can prevent a lot of misery afterwards, such as automated waste.

Once the wastes have been identified, they can be eliminated. You can do this, for example, by removing unnecessary process steps or by reducing inventory. Look at the impact of these changes on customer satisfaction and the quality of the end product.

optimize turnaround time

An important part of the lean thinking method is optimizing the lead time of a process. This can be done, for example, by reducing the time spent waiting for customer approvals or feedback. By reducing the lead time, efficiency can be increased and costs saved.

focus on quality

And last but not least: quality. By eliminating defects and improving the quality of the final product, customer satisfaction can be increased and costs saved. It is important to look at the entire value stream, not just the individual process steps.

After reading this blog, you know the secret behind the successful implementation of the lean thinking method in b2b organizations. Are you now also willing to apply it yourself? I wish you the best of luck!

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