Location: Innovation IEG > Management Innovation > Lean Production Management (Lean)

Lean Production Management (Lean)

Lean production is developed from Toyota Production System, but it has exceeded the Toyota Production System in scope, idea and application. A relatively rigorous definition of lean production is: a set of principles, ideas and technologies to improve the manufacturing system continuously and realize the maximum satisfaction of customers by eliminating all waste in the whole process of production. 

Different from Six Sigma, lean is an oriental way of thinking, which pays attention to solving problems from macro perspectives and by overall implementation and is a method of analogy. The solution of one problem can be replicated in other similar situation. Lean is suitable for problems related with time, such delivery time, on-time rate, cycle, etc. Lean regards problems from the VSM aspect in macro perspective. Through comprehensive value management, it finds out the waster point affecting the whole process and implement improvement.  

Implement Approach for Lean management Innovation Projects


Recognize Define Measure Analyze Improve Control
Plan business strategy Define problems of project Draw macro process map Analyze the failure mode of critical process Design future value stream map Verify process improvement performance
Define enterprise KPI
Define scope of project Data collection planning
Process balance analysis Design fluent process Control plan
Define potential project Formulate objective of project Value analysis Waste analysis Design pull process Establish routine improvement mechanism
Sort projects Financial benefit analysis Current value stream map Field rationalization analysis Design material distribution model Total productive maintenance
Set up project KPI Define action mechanism of project team     Maintain the stability of new process Project transfer plan

Comparison of Lean production and “Batch” Production on Short-term Yield:

Save 50% human resources

Save 50% production area

Reduce 50% inventory

Shorten 50% cycle time

Improve 50% quality 

Save 50% investment

Comparison of Lean production and “Batch” Production on Long-term Yield:

The delivery cycle is shortened from several months to several weeks (or from several weeks to several hours)

Quality of products approaches zero defect (6 Sigma level)

Sustainable improvement of the enterprise’s profitability

Significant improvement of the satisfaction of customers and employees