Lean Fundamentals for Business Success 

1. Identifying Value:  What Does the Customer Actually Want?

The first step in Lean is understanding what the customer truly values. Businesses should focus on delivering exactly what the customer wants and eliminate anything that doesn’t contribute to that.

Practical Example: The bakery assumes customers want exotic bread flavors, but after conducting a survey, they learn customers prefer fresh, warm, and simple bread varieties like whole wheat and sourdough. The bakery realigns its focus to meet this demand.

2. Mapping the Value Stream: Determine What Adds Value and What Doesn’t

Next, the bakery maps out every step in the bread-making process to see which ones add value and which create waste.

Practical Example: The bakery realizes that bread dough sits idle overnight before baking starts. This unnecessary delay does not add value to the customer, so the bakery adjust the process to reduce downtime.

3. Creating Flow: Ensuring a Smooth Progression of Work

The bakery now works on creating a smooth flow from mixing to baking, ensuring there are no unnecessary stops or delays.

Practical Example: By reorganizing the kitchen layout, the bakery ensures that ingredients flow smoothly from preparation to baking without unnecessary movement or waiting, leading to fresher bread and a faster process.

4. Establishing Pull: Produce Only What Is Needed When It’s Needed

Lean encourages production based on actual demand, not forecasts. This avoids overproduction and waste.

Practical Example: Instead of baking large quantities of bread in the morning and risking unsold inventory, the bakery bakes smaller batches throughout the day based on actual customer demand.

1. Defects

Mistakes that require rework or corrections.

Bakery Example: A batch of bread is overcooked and must be thrown away or re-done. Lean would suggest improving oven temperature settings to avoid this.

2. Overproduction

Producing more than what’s needed.

Bakery Example: Baking too many loaves in the morning, only to throw away the unsold bread in the evening. With Lean, the bakery produces smaller and more frequent batches.

3. Waiting

Idle time when processes are delayed.

Bakery Example: Bakers standing idle while waiting for dough to rise. Lean might recommend preparing other tasks during this time to maximize productivity.

4. Non-Utilized Talent

Not fully utilizing people’s skills and abilities.

Bakery Example: Highly skilled bakers spend too much time cleaning instead of focusing on baking. Lean would encourage assigning less skilled staff to cleaning tasks to free up bakers for higher-value work.

5. Transportation

Unnecessary movement of products or materials.

Bakery Example: Ingredients are stored on the opposite side of the kitchen, requiring bakers to walk back and forth. Lean would suggest reorganizing the kitchen to minimize unnecessary movement.

6. Inventory

Excess materials or products that aren’t being used.

Bakery Example: Storing too much flour that may spoil before it’s used. Lean would recommend ordering just enough inventory to meet actual production needs.

7. Motion

Unnecessary movements by people within a workspace.

Bakery Example: Bakers frequently walking between workstations due to poor kitchen layout. Lean might suggest reconfiguring the workspace so that tools and ingredients are within easy reach.

8. Excess Processing

Doing more work or using more resources than necessary.

Bakery Example: Wrapping each loaf of bread in two layers of packaging when one is sufficient. Lean would recommend reducing packaging to the essentials without compromising quality.