It has to include all actions and people involved in delivering the end product to the customer. This is the point where you literally need to map the workflow of your company. So you first need to identify the value you want to deliver and then proceed to the next step. Any other activity or process that doesn’t bring value to the end product is considered waste. More specifically, in the part of the solution that your customer is actively willing to pay. The value lies in the problem you are trying to solve for the customer. To do so, a company needs to add value defined by its customers’ needs.
What does every company strive to do? To offer a product/service that a customer is ready to pay for. The 5 Basic Lean Principles (How to Create a Lean System?) 1. So, let’s get to the basic principles of Lean management. Instead, it is evolving gradually, thanks to many observations and people's desire for continuous improvement. This methodology is also employed by government structures, marketing professionals, and others.Īs you can see, Lean management was not created in a moment. The concept consists of 5 basic principles that aim to help startups be more flexible and responsive to changes.įrom a business point of view, Lean's is to shorten product development cycles and rapidly discover if a given business concept is viable. In 2011, he packed his ideas in a book called “The Lean Startup”.
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The Lean Startup (What is Lean in Business?)Įric Ries, an engineer and serial entrepreneur developed a methodology based on the Lean principles to help startups succeed.
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In the beginning, it didn’t gain popularity, but a few years later, it became one of the most popular software development methods. The book describes how you can apply the initial principles of the Lean methodology to software development.Īt the end of the day, Lean software development comes down to 7 principles. In 2003, Mary and Tom Poppendieck published their book “Lean software development: an Agile Toolkit”. Indeed, the term Lean was made up by John Krafcik (currently CEO of Google’s self-driving car project Waymo) in his 1988 article “Triumph of the Lean Production System”.
Thanks to this notable impact, Lean thinking has spread across many industries and evolved to 5 basic Lean management principles as described by the Lean Management Institute. In the late 1940s, when Toyota put the foundations of Lean manufacturing, they aimed to reduce processes that don’t bring value to the end product.īy doing so, they succeeded in achieving significant improvements in productivity, efficiency, cycle time, and cost-efficiency. However, it has actually derived from the Toyota Production System, established around 70 years ago. This is why the two main pillars of the Lean methodology are:Īfter all, a good idea or initiative can be born at any level of the hierarchy, and Lean trusts the people who are doing the job to say how it should be done.Ĭurrently, Lean management is a concept that is widely adopted across various industries. Instead of holding total control of work processes and keeping the spotlight, Lean management encourages shared responsibility and shared leadership. What is Lean Management, and How Did It Start?īefore you start with the basic Lean principles, you need to realize that the Lean methodology is about continuously improving work processes, purposes, and people. So now, when you know the core idea, let’s dig deeper and get to know the basic principles of Lean management and where it comes from.
In the next few paragraphs, you will get familiar with the Lean methodology.Īctually, there is no surprise that Lean management is now widespread across industries. You have probably heard of the Lean management concept and its growing popularity in the business world.
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