LEAN - David-Lennuk/Buketov_Python GitHub Wiki

1. What is Lean Project Management?

Lean Project Management is a methodology that focuses on reducing waste and optimizing workflows. It is not just part of Agile, but a standalone approach that aims to use resources efficiently while constantly improving processes. Through Lean, teams focus on value creation and simplifying processes.

Example of Waste in a Process:

• The operator walks 25 feet to pick up a part.

• The operator retrieves a tool.

• The operator goes to where the tool is stored.

• The operator brings the tool back to the chassis.

• The operator installs the part onto the chassis.

• The operator secures the part with bolts.

• The operator tightens the bolts with a tool.

Adding Value: These steps may be necessary, but they may not always add value to the final product. Reducing unnecessary steps, such as walking back and forth for tools, would streamline the process and minimize waste.

2. Historical Background of Lean

Lean manufacturing and project management originate from the Toyota Production System (TPS), which was developed in Japan after World War II. Toyota aimed to improve its competitiveness and streamline production in a time when resources were scarce and the industry needed to recover quickly.

The Development of Lean:

• Post-WWII Japan lacked resources (labor, materials, and financial resources).

• Toyota had to compete with large US manufacturers, such as Ford and General Motors, who used mass production systems.

• Key figures in the development of Lean manufacturing included Kiichiro Toyoda, Taiichi Ohno, and Shigeo Shingo. They designed a system focused on eliminating waste and creating value for customers.

• Toyota took inspiration from Henry Ford’s mass production techniques, adapting them to Japan’s economic and cultural context.

Core Principles of TPS:

• Muda (Waste): Anything that does not add value must be eliminated.

• Just-in-time (JIT): Components and materials should arrive only when needed to avoid excess inventory.

• Jidoka (Automation with a Human Touch): Problems should be detected automatically and resolved quickly in the production process.

3. The Global Spread of Lean

In the 1950s and 1960s, Toyota's production system proved to be highly efficient. In 1990, the system was introduced globally through the book "The Machine That Changed the World" (James P. Womack, Daniel T. Jones, and Daniel Roos). The book highlighted Lean production’s advantages, such as efficiency, quality, and cost reduction, while showcasing Toyota’s success.

4. The Evolution of Lean into Project Management

While Lean initially focused on manufacturing, its principles were later adapted for various sectors, including project management, service delivery, and software development. Lean now helps to:

• Minimize waste in all processes.

• Focus on customer value.

• Improve workflows and efficiency.

Toyota’s principles, such as continuous improvement (Kaizen) and waste elimination (Muda), remain central to the Lean methodology today.

5. Kaizen: Continuous Improvement

Kaizen Principles:

• Small steps lead to big results: Improvements are implemented gradually rather than radically.

• Everyone participates: Improvement efforts involve all employees, from factory workers to management.

• Focus on the process: When a process is well organized, the result is automatically high-quality.

• The “5 Whys” Technique: This technique asks “Why?” five times to find the root cause of problems.

• Never stop improving: Even if a process seems ideal, it can always be improved.

Kaizen Mini Project: Simple Order Manager

• Description: Create a program that allows the user to:

• Enter multiple products (name + price).

• Add all products to the shopping cart.

• Calculate the total cost.

• Display the list of purchased products and the total.

Improvement Ideas Using Kaizen:

• Problem: No error checking for input → Fix: Check if the price is a valid number.

• Problem: No functions → Fix: Create functions like add_product(), calculate_total(), and display_receipt().

• Problem: Can't display quantities → Fix: Add quantities (multiple units of a product).

• Problem: Products and prices are in separate lists → Fix: Use a dictionary to link products and prices.

• Problem: No formatted output → Fix: Format the receipt neatly.

6. Jidoka: Autonomation

Jidoka involves detecting abnormalities and addressing them quickly to avoid production issues.

Steps in the Jidoka Process:

1. Discover an Abnormality: When a defect or process disruption is detected (e.g., a defective part), the system responds immediately.

2. Stop the Process: The process is immediately stopped to prevent defective products from moving forward and to minimize waste.

3. Fix the Immediate Problem: Initial corrections are made to resume production quickly.

4. Remove the Root Cause: The underlying issue is investigated and permanently fixed to prevent recurrence (using techniques like Root Cause Analysis and the 5 Whys).

7. Key Lean Principles

1. Define Value To define value, it’s essential to understand what customers consider valuable. Value is what customers are willing to pay for. Methods such as interviews, surveys, and analytics can help determine customer needs and expectations.

2. Map the Value Stream Mapping the value stream identifies all activities that contribute to creating value. Activities that do not add value are considered waste. Waste is categorized into two types:

• Non-value-adding waste: Should be completely eliminated.

• Necessary but non-value-adding waste: Should be minimized.

3. Create Flow After eliminating waste, it’s crucial to ensure that the remaining steps flow smoothly without interruptions or delays. This can be achieved by:

• Breaking processes down into smaller steps.

• Reorganizing production stages.

• Training employees to be flexible and multi-skilled.

4. Establish Pull A pull-based system ensures that products or services are created only when there is actual demand, avoiding excessive inventory and overproduction.

5. Pursue Perfection The pursuit of perfection is a mindset of continuous improvement, where the organization and its employees are constantly striving to improve processes and meet customer needs more effectively.

8. Lean in Practice: Value Stream Mapping Exercise

Task: Complete a Value Stream Mapping exercise for a project by breaking it down into the following steps:

• Project requirements.

• Technology selection.

• Architecture planning.

• Activity input functionality.

• Data storage.

• Analysis logic.

• Report generation.

• Testing.

• Documentation.

• Customer feedback simulation.

Fill out a Lean value stream table:

• Step: Activity in the process.

• Adds value? Whether the step adds value.

• Necessary / Waste: Is the step necessary or waste?

• Comments: Additional notes.

9. Application of Lean Principles

The five Lean principles form the foundation of creating an efficient organization. They help managers identify inefficiencies, improve workflows, and build a culture of continuous improvement. Implementing Lean can lead to:

• Increased customer value.

• Reduced business costs.

• Better competitiveness and profitability.

Recommendation: Start implementing these principles in small steps, focusing on continuous improvement and transparent communication within teams and stakeholders.

10. Lean vs. Agile vs. DevOps