1.
Lean Concepts &
Principles
© Operational Excellence Consulting. All rights reserved.
PDCA APPROACH TO WASTE ELIMINATION
VALUE-ADD VS. NON-VALUE ADD
1. Define value from the customer’s
perspective and provide what they
want
2. Identify the value stream or process
for each product or service and
reduce or eliminate steps that do not
add value
3. Align the value-added steps so they
flow continuously
4. Allow the level of customer demand
to pull the process, i.e., produce only
what is ordered
5. Pursue perfection through
continuous improvement
LEAN MANAGEMENT FRAMEWORK
LEAN PRINCIPLESWORK VS. WASTE
Over-production
Producing more than
what the customer
needs
Inventory
Building and storing
extra products the
customer has not
ordered
Transportation
Moving product from
one place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical or mental
motion that does not add
value
Intellect
Not using employees’
full intellectual
contribution
Waiting
Employees waiting for
another process or a
machine/tool
Waste
§ Transform or shape
material or information
§ Customer wants it and
willing to pay for it
§ Done right the first time
§ No value created but
required by current
thinking
§ No value created but
required by process
limitations
§ No value created but
required by current
technology
§ No value created but
required by government/
business regulations
§ Consume resources but
creates no value for the
customer
§ Could be stopped and it
would be invisible to the
customer
Value-Added
Activities
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Value-Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
EIGHT TYPES OF WASTE
Stability Standardization Just-In-Time Jidoka Involvement1 2 3 4 5
Stability
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
1
3 4
5
Heijunka Standardized Work Kaizen2
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
1
2
3
4
5
6
7
8
PLAN
ACT
CHECK
DO

2.
Lean Concepts &
Principles
© Operational Excellence Consulting. All rights reserved.
PDCA APPROACH TO WASTE ELIMINATION
VALUE-ADD VS. NON-VALUE ADD
1. Define value from the customer’s
perspective and provide what they
want
2. Identify the value stream or process
for each product or service and
reduce or eliminate steps that do not
add value
3. Align the value-added steps so they
flow continuously
4. Allow the level of customer demand
to pull the process, i.e., produce only
what is ordered
5. Pursue perfection through
continuous improvement
LEAN MANAGEMENT FRAMEWORK
LEAN PRINCIPLESWORK VS. WASTE
Over-production
Producing more than
what the customer
needs
Inventory
Building and storing
extra products the
customer has not
ordered
Transportation
Moving product from
one place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical or mental
motion that does not add
value
Intellect
Not using employees’
full intellectual
contribution
Waiting
Employees waiting for
another process or a
machine/tool
Waste
§ Transform or shape
material or information
§ Customer wants it and
willing to pay for it
§ Done right the first time
§ No value created but
required by current
thinking
§ No value created but
required by process
limitations
§ No value created but
required by current
technology
§ No value created but
required by government/
business regulations
§ Consume resources but
creates no value for the
customer
§ Could be stopped and it
would be invisible to the
customer
Value-Added
Activities
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Value-Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Stability Standardization Just-In-Time Jidoka Involvement1 2 3 4 5
Stability
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
1
3 4
5
Heijunka Standardized Work Kaizen2
EIGHT TYPES OF WASTE
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
1
2
3
4
5
6
7
8
PLAN
ACT
CHECK
DO

3.
© Operational Excellence Consulting. All rights reserved. 3
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firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg