Overview

  1. What is a Lean startup?

  2. What are Lean and Continuous Improvement?

  3. Continuous Improvement

  4. Lean Manufacturing Vs. Continuous Improvement

  5. Extra Resources

  6. References

1. What is a Lean startup?

Lean startup is a method for developing businesses and products first proposed in 2008 by Eric Ries. Based on his previous experience working in several U.S. startups, Ries claims that startups can shorten their product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and what he calls validated learning. Ries’ overall claim is that if startups invest their time into iteratively building products or services to meet the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures. [4]

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Fig 1: Illustrates the working of A Lean Startup Cycle[5]

2. What is Lean and Continuous Improvement? [3]

Lean manufacturing is a continuous improvement model that strives to eliminate non-value-added activities. Continuous improvement is an organizational mindset that focuses on an ongoing effort to improve. There are a number of continuous improvement-type approaches that firms can adopt. Manufacturers that embrace an attitude of continuous improvement can be transformed into agile, more competitive, and more profitable businesses.

enter image description here > Fig 2: Explains Lean startup and Continuous Improvement

3. Continuous Improvement [1]

Continuous Improvement (commonly referred to by the Japanese word kaizen) is arguably the most critical principle of lean manufacturing. It should truly form the basis of your lean implementation. Without continuous improvement your progress will cease. As the name implies, Continuous Improvement promotes constant, necessary change toward achievement of a desired state. The changes can be big or small but must lend itself toward improvement (often many small changes are required to achieve the target). The process truly is continual as there is always room for improvement. Continuous Improvement should be a mind-set throughout your whole organization. Do not get caught up in only trying to find the big ideas. Small ideas will often times lead to big improvements.

enter image description here > Fig 3: The Management Process in Lean [2]

4. Lean Manufacturing Vs. Continuous Improvement [6]

Let’s start off by defining Lean manufacturing. Lean (as described on multiple on-line resources) is described as a production practice that focuses on the elimination of wasteful elements in all process to increase the value to the customer. Sounds great! What organization wouldn’t want to implement a program to eliminate waste? The problem is that some organizations misuse Lean Manufacturing to overwork and reduce headcount. Sure reducing headcount will save money in the short term. Let me assure you, it comes at a higher cost. Let’s say a manager forms a team of skilled individuals to rebalance processes on the line to remove operators. Soon, the operators who are left on the line will start noticing, leading to refusal to cooperate with any effort to make improvement. They will begin to resist changes due to the fact they are scared to lose their job or contribute to a co-worker loosing theirs. This causes stress, conflict, finger pointing and ultimately failure. This is a sure fire way to pit management against the shop floor. It is due to this lack of understanding that Lean has left a bad taste in many shop floor employees’ mouths. This leads me to the opinion that maybe the word Lean needs to be eliminated from our vocabulary. I think that when we focus strictly on Lean we inevitably pay more attention to the dollar numbers. I am not saying that the dollar numbers are not important. They are, but there are other elements within an organization that far outweigh the bottom dollar, create flexibility and opportunity for future growth. It is my opinion that running an organization Lean is actually a by-product of Continuous Improvement philosophy. When we focus our sites on Lean and Lean alone we are really missing the bigger picture. Culture is the most important element to true organizational maturity. Continuous Improvement philosophy zeros in on culture and stimulates its development. Continuous Improvement philosophy focuses on the people and the success of the organizational team. It requires everyone’s engagement, commitment and trust. It is therefore culture driven and will help the company grow for years. Everyone should be trained on its ideals and philosophies. For a continuous improvement organization to thrive organizational leadership must dedicate 85% to development of other employees through training, influence and OJT. Once the majority of the organization understands the philosophy then, and only then is it time to move to the next step. The remaining 15% then can be dedicated to implementing the actual tools and engaging the employees. The employees that own the process need to make the change and improve the organizations current state. Not only does this encourage them but it also increases the chance that the change will be sustained and standardized. We must be careful as organizational leaders to not put the cart before the horse. Don’t expect significant, highly profitable changes too fast. Let the cake sit in the oven for a while, trust me in the end it will taste much sweeter. Let’s get “Lean” out of our heads and start communicating CI. It’s broader, includes everyone (especially the operators) and will give us long term gains. Let’s train, empower and engage rather than cut time, rebalance and lay-off.

enter image description here > Fig 4: Describes the Lean Manufacturing Process [7]

##Extra Resources Following is a list of Articles that talk about Lean Startups and Continuous Improvement:

• Lean Principles and how software development processes are engineered in Lean Startups.

• Continuous Improvement strategy followed in Lean Startups

• A blog on ‘Engaging your Team in Continuous Improvement’.

• A presentation on ‘Engaging your Team in Continuous Improvement’ by Mark Graban.

Following is a list of Videos that talk about Lean Startups and Continuous Improvement

• Gives an overview of how to use the leankit tool.

Following is a list of Case Studies that talk about Lean Startups and Continuous Improvement

• The Lean Startup Movement- the different companies that adopted lean and how the business of these companies changed.

##References

[1] Continuous Improvement

[2] Management Process in Lean

[3] Lean and Continuous Improvement

[4] Lean startup

[5] A Lean Startup Cycle

[7] Manufacturing Process in Lean

[8] Lean startup and Continuous Improvement

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