WHAT IS LEAN MANAGEMENT?
Lean Transformation
Lean Management transforms organisations so that they consistently deliver the value that their customers want. It
applies the principles used so successfully by organisations like Toyota and Tesco, but adapted to meet the needs of
public services. Some may question the applicability to the public sector of a method that has evolved from
manufacturing industry. The answer lies in what we have in common – delivering value to our customers.
Lean Method
One: Define value from the customers perspective
Two: Map how value currently flows to the customers
Three: Eliminate activities and processes that limit the flow of value to customers (“waste”)
Four: Re-design the system so it delivers increased value efficiently and cost effectively
Five: Continuously improve
Eliminating waste
„Waste‟ is defined as any activity or process that does not add value. A patient may spend 10 hours having a routine
operation. Only 90 minutes add value: the time spent being diagnosed and having the operation. Why focus on
making the 90 minutes more efficient rather than reducing the 8.5 hours of time not adding value?
There are many examples of “waste” in the services we deliver: delays in seeing customers; errors in paperwork
and the transfer of information; incomplete or inappropriate referrals; customers and staff having to make
unnecessary journeys; complicated & time consuming procedures; avoidable fluctuations in demand and capacity;
customers retained in service unnecessarily….. Customers and operational staff are best positioned to understand
this “waste” since they suffer its consequences. They are also the best people to re-design the value-added process.
Lean tools
Staff learn to use the “tools” of Lean Management – for example Value Stream Mapping, to map out how the
process currently operates and to identify all the “waste” in the system. Information and data are added to the
Value Stream Map to get a full picture of priorities for change and staff work together to re-design the Map to
enable customers to pull more value from the process. Staff generate their own agenda for change and decide how
they will be able to tell what difference the changes make.
Sustaining transformation
The sustainability of any transformation process requires leadership commitment, a strategy for transformation that
is organisation-wide and the engagement of staff in changing their behaviour. If these are in place Lean
Management will radically transform any public service.