Lean Thinking Overview
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Questions and Answers

Which of the following is NOT identified as a primary reason for process issues?

  • Defects
  • Variation
  • Complexity (correct)
  • Waste
  • What is a primary focus of Lean thinking?

  • Minimizing the workforce to reduce costs
  • Maximizing production output regardless of customer needs
  • Enhancing value for the customer and eliminating waste (correct)
  • Creating complex processes to prevent errors
  • Which of the following best describes the concept of 'pull' in the context of Lean principles?

  • Pushing products through the system to keep production flowing
  • The final step of the process pushing the product back to the start
  • Producing goods in anticipation of customer demand.
  • The customer dictating the production rate for the upstream process. (correct)
  • What is the first principle of Lean thinking, according to the text?

    <p>Specify value from the customer's point of view (D)</p> Signup and view all the answers

    Which of these is NOT explicitly mentioned as a focus of lean thinking?

    <p>Maximizing resource utilization (B)</p> Signup and view all the answers

    What does 'customer service' involve?

    <p>Providing customers with what they need, want, or value, before, during, and after a purchase. (A)</p> Signup and view all the answers

    Based on the diagram showing a communication flow, what is the likely outcome the further away from the customer an organization is?

    <p>There is a greater variation in understanding the customers need. (A)</p> Signup and view all the answers

    Which of the following best describes the goal of pursuing 'perfection' in Lean thinking?

    <p>Eliminating waste through continuous improvement. (A)</p> Signup and view all the answers

    What is the primary characteristic of a 'value-adding' activity in a business process?

    <p>It is an activity the customer is willing to pay for. (B)</p> Signup and view all the answers

    In the context of Lean thinking, what does 'pull' refer to?

    <p>Producing goods based on the customer's specific demand. (C)</p> Signup and view all the answers

    Which of these needs, according to the Kano model, would be categorized as a 'delighter'?

    <p>Being offered a free lunch. (A)</p> Signup and view all the answers

    What is the definition of 'necessary non-value' activity?

    <p>An activity that does not add value but is required by outside authorities. (B)</p> Signup and view all the answers

    Which lean principle focuses on continuously removing waste to achieve optimal efficiency?

    <p>Perfection. (C)</p> Signup and view all the answers

    What does the term 'value stream' represent in a business context?

    <p>All activities and steps in the production chain from customer request to product delivery. (C)</p> Signup and view all the answers

    According to the content, what common characteristic determines whether a product or service is perceived to have 'value'?

    <p>That the product or service can fulfil a need or desire of the customer. (C)</p> Signup and view all the answers

    Which of the following best describes 'digital value creation'?

    <p>Products and services generated using digital communication that meet customer demand. (D)</p> Signup and view all the answers

    According to the Kano Model discussed, which type of need makes customers happy as they are more and more fulfilled?

    <p>Performance Need. (A)</p> Signup and view all the answers

    In the context of value stream mapping, how are activities classified?

    <p>As either value-adding or non-value-adding. (D)</p> Signup and view all the answers

    Flashcards

    Three Reasons for Process Issues

    Process issues occur due to variations, waste, and defects in the process. Variations refer to inconsistencies, waste refers to non-value-adding activities, and defects are errors in the product or service.

    Lean Thinking - It's all about Adding Value

    Lean focuses on understanding customer needs and maximizing value while eliminating waste. This doesn't mean eliminating jobs but streamlining processes to improve efficiency and customer satisfaction.

    Identify the Value Stream

    The value stream identifies all steps in a process, from start to finish. Lean emphasizes creating a smooth flow through the value stream, eliminating unnecessary steps, and minimizing delays.

    Pursue Perfection

    Lean is about continuously improving processes by eliminating waste and maximizing efficiency. It is a journey toward perfection, not a destination, and focuses on ongoing improvement.

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    Define Customer Service

    Customer service is the experience your customers have interacting with your business. It encompasses all aspects of the customer journey, from initial contact to post-purchase support.

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    Information Distortion Along the Value Chain

    Customer needs and expectations are often miscommunicated as information flows through different departments and roles. This leads to misunderstandings and potentially delivering a product or service that doesn't meet the customer's actual needs.

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    Non Value

    Anything a customer would not be willing to pay for, often referred to as waste.

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    Necessary Non Value

    Activities that are required by some authority, but the customer is not willing to pay for, such as regulatory approvals or quality checks.

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    Value Adding

    Creating or delivering value to the customer through processes that are free from waste.

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    Digital Value Creation

    The process of generating products and services using digital information and communication technology to fulfill a need or desire.

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    Basic Needs (Kano Model)

    Needs that make customers unhappy if unmet, but don't create happiness when met, like basic amenities in a hotel room.

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    Performance Needs (Kano Model)

    Needs that make customers happier as they are fulfilled, like long battery life in a phone.

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    Delighters (Kano Model)

    Needs that surprise and delight customers, like a free meal or room upgrade.

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    Value Stream Mapping

    A method for understanding the sequence of steps that transform a customer's request into a delivered product or service.

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    Value Adding Activity

    Each step in the Value Stream that directly adds benefit to the customer, making them willing to pay.

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    Non Value Adding Activity (Waste)

    The activities within a Value Stream that do not add direct value to the customer, causing waste.

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    Study Notes

    Understanding Processes

    • Processes sometimes don't go as planned.
    • Three common reasons for process issues are variation, waste, and defects.

    Tools for Addressing Process Issues

    • Understanding and translating customer requirements.
    • Fixing existing problems/processes.
    • Identifying waste in existing/future processes.
    • Designing new products/processes.
    • Project managing and reviewing processes.
    • Measuring performance.
    • Addressing cultural/organizational structure issues.
    • Utilizing collaboration tools.
    • Generating ideas.

    Lean Thinking Introduction

    • Lean focuses on customer needs.
    • Lean prioritizes value (quality, cost, safety, compliance, performance).
    • Lean aims to eliminate waste.
    • Lean isn't about eliminating people, it's about improving performance and capacity. This involves reducing errors, waste, and cycle times.

    Lean Principles

    • Lean thinking prioritizes adding value.
    • Principle 1: Define value from the customer's perspective.
    • Principle 2: Identify all steps in the value stream; eliminate any steps that don't create value.
    • Principle 3: Create a smooth and integrated flow of the product to the customer.
    • Principle 4: Allow customers to draw products from upstream activities as needed (pull system).
    • Principle 5: Strive for perfection through continuous improvement, eliminating waste.

    Customer/Customer Service

    • Customer service provides customers with needs, wants, and valued items, encompassing the entire experience before, during, and after a purchase.
    • Understanding of customer needs varies as distance from the customer increases.

    Value vs. Non-Value Activities

    • Value: A product/service meeting a customer need or desire.
    • Value-Adding: Creating value via waste-free operations and processes. Activities changing/converting materials/information into customer-desired products/services.
    • Non-Value (Waste): Activities customers won't pay for.
    • Necessary Non-Value: Activities customers won't pay for, but are required by authorities (regulatory, quality function).

    Digital Value Creation

    • Digital value creation involves generating products/services utilizing digital information and communication technology.
    • The aim to produce goods/services offering worthiness or desirability.
    • Digital value creation is any production using digital tools to meet human needs.

    Value/Non-Value Examples

    • Identifying value in various examples: gold, cryptocurrency, art (NFTs), and land.

    Understanding Customer Needs (Kano Model)

    • Basic Needs: Unmet needs lead to dissatisfaction, but met needs don't necessarily provide pleasure. (e.g., hotel tea facility, product sell-by dates)
    • Performance Needs: Increased satisfaction as these needs are fulfilled further. (e.g., fuel economy, battery life, room size)
    • Delighters: Needs often unrecognized initially; satisfaction when unmet, delight when fulfilled. (e.g., room upgrade, free meal, free movie)
    • Kano model graphically displays these needs.

    Customer Importance

    • Companies lacking customer understanding are losing out to competitors (e.g., consumer companies, pubs/restaurants, retail, media, education, EV sales).

    The Value Stream

    • The value stream encompasses all activities from customer request to product/service delivery.
    • Includes both value-adding and non-value-adding (waste) activities.
    • A visual representation is the value stream map (VSM).

    Lean Thinking Principles (summary)

    • Value: Customer-centric value definition.
    • Value Stream: Identify and eliminate non-value-adding steps.
    • Flow: Optimize product flow to the customer.
    • Pull: Allow customer demand to drive production.
    • Perfection: Continuously eliminate waste.

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    Description

    This quiz explores the core concepts of Lean Thinking and its principles. Understand how to define value from a customer's perspective, address process issues, and eliminate waste. Gain insights into tools and strategies for improving process performance and capacity.

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