Book/This-Is-Lean

defines the value the customer will experience an organization can either focus on differentiation or cost differentiation anything that a customer considers valuable eg. better experience, better quality, faster service, more choice cost sacrifice in terms of - money - time - energy that the customer must make to satisfy their need Model_ business strategy vs operations strategy (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)

Model: business strategy vs operations strategy A business strategy defines what type of customer need the organization wishes to satisfy An operations strategy defines how the organization will meet this need. Model_ business strategy Model_ operations strategy (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)

Efficiency frontier theoretical perfect state impossible to achieve Unfortunately, the star is a theoretically perfect state, which is worth striving for but impossible to achieve to reach the star requires perfection customer’s present and future needs flexible and reliable resources obstacles variation in demand perfectly predict (what, when, which amount) variation in supply perfectly flexible resources (what, when, which amount) perfectly reliable impossible to reach an operational state beyond the efficiency frontier !...

axes resource efficiency flow efficiency four different operational states efficient islands - resource over flow efficient ocean - flow over resource wasteland - neither flow nor resource the perfect state - both Model_ Efficiency frontier (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)

Model: Lean improvement pattern: U-shaped this improvement pattern, shows some key traits of lean example: Toyota Sales Logistics sales, distribution, service (Japan requires thorough car inspections) a) perceived starting position b) actual starting position lot’s of superfluous work (unnecessary technical work, moving cars, difficult planning) c) increasing flow efficiency the speed of the value-adding activities was increased, and non-value-adding activities were eliminated teamwork specialized equipment standardization visualization d) increasing resource efficiency...

Model: Lean is an operations Strategy lean is an operations strategy that prioritizes flow efficiency over resource efficiency aiming for the star moving ’to the right and up’ in the Model_ Efficiency Matrix Quote_ lean operations strategy (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)

helps realize a business strategy defines how value is to be produced how will we produce a product or service given our business strategy (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)

trivial because obvious the knowledge does not add any value because it is obvious Example: murderer trivial the murderer is a person with a head and a heart, and needs to eat and drink regularly to survive not trivial the murderer is a man with shoulder-length hair, a golden earring in his left ear, and a husky voice trivial because no alternatives If there are no alternatives, the theory will become trivial Example: continuous improvement trivial...

All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect the cash. -- Taiichi Ohno (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)

Distinction: Secondary vs indirect needs indirect needs Exist in their own right Fulfilling them creates value Eg. Being treated with respect secondary needs Exist because of bad flow efficiency Solving flow-efficiency makes the need never appear Fulfilling seems to create value, but objectively that activity is waste Eg. wanting a status update after waiting for a long time (src: Book_ This is LEAN - Niklas Modig & Par Ahlstrom)