Lean Business Practices

Manufacturing Leaders Love Talking About Lean—But Who’s Actually Doing It? Everyone loves to talk about Lean. Lean principles. Lean thinking. Lean transformation. But when it’s time to make real changes—where does all that talk go? I’ve seen it too many times: A company maps its value stream, holds a big workshop, talks about reducing waste… and then? Nothing. The shop floor stays the same. Cycle times don’t improve. Bottlenecks remain bottlenecks. Why? Because real Lean isn’t about PowerPoint slides or whiteboard exercises. It’s about getting your hands dirty and fixing what’s broken. It means making practical, real-world changes—not just talking about them in meetings. Here’s what actually moves the needle: ✅ Cutting redundant inspections only where it makes sense, not blindly eliminating quality checks. ✅ Moving tools closer without disrupting ergonomics or safety. ✅ Automating material flow where volume justifies the investment, not just for the sake of automation. ✅ Reducing lead time by fixing scheduling bottlenecks, not just tweaking processes that aren’t the real problem. ✅ Managing inventory to avoid both excess and shortages, instead of forcing a one-size-fits-all JIT approach. ✅ Standardizing work only where it helps, while keeping flexibility where needed. ✅ Fixing quality at the source but making sure operators have the training to do it right. ✅ Empowering frontline workers with real authority to improve processes, not just asking for their “input.” ✅ Synchronizing production with demand without creating unrealistic targets that break the system. ✅ Using real-time data that’s actually useful for decision-making, not just flooding dashboards with numbers no one acts on. Lean isn’t about buzzwords. It’s about execution. The best manufacturers don’t just talk about Lean. They live it. They enforce it. They make it happen. They do VST (Value Stream Transformation), not just VSM! - If it’s not executed, it’s not Lean. ♻️Repost to lead real change!

"We're implementing Lean." What people think that means vs. what it actually means. What Everyone Else Thinks Lean Is: "Just organize stuff and eliminate waste." What Lean Practitioners Actually Do: → Value Stream Mapping & Analysis → Takt Time Calculation & Balancing → Standard Work Development & Maintenance → Pull System Implementation (Kanban) → Error-Proofing (Poka-Yoke) Design → Single Minute Exchange of Dies (SMED) → Root Cause Analysis (5 Whys, A3) → Cellular Manufacturing Layout Design → Gemba Walks & Leadership Development → Visual Management Systems Design → And tons of other methodologies that can't fit on one page The gap between perception and reality explains why 70% of Lean transformations fail. People think it's about organizing. Practitioners know it's about systematic thinking. People think it's about tools. Practitioners know it's about culture. People think it's about efficiency. Practitioners know it's about customer value. The complexity isn't the problem. The oversimplification is. When you reduce Lean to "clean up and eliminate waste," you miss the entire methodology that makes Toyota the most efficient manufacturer in the world. What's your biggest misconception about Lean that you've had to correct?

In today's fast-moving AI market, perpetual 0->1 mode is the only way to survive. Even big companies and non-tech companies are finding themselves suddenly disrupted– software ate the world, but now AI is eating software [h/t Jensen Huang]. 'The Lean Startup' was very influential to me during Hearsay Systems' 0->1 (thank you Eric Ries & Steve Blank). Some highlights that seem more relevant than ever: 1. A Unique Management Method. The entire 0->1 process is more than just the product; as such it requires a different kind of management specifically geared for extreme uncertainty. How we set goals, run meetings, conduct performance reviews, and hire completely changes in the face of uncertainty due to AI. 2. Ideate-Build-Measure-Learn. The fundamental goal of 0->1 is to turn ideas into products people pay for. But we don't know upfront what that product will be-- we can only hypothesize, test, pivot, and learn and arrive at PMF asymptotically. The key is to start with a best guess, then validate scientifically with frequent experiments to measure how customers respond, learn, and then pivot or persevere. All successful 0->1 processes are geared toward accelerating this feedback loop. Smaller, flatter teams beat big teams, because fewer cooks = faster learning loop. On the Business AI team at Meta, we ship experiments, not features. If 100% of experiments are turning into features, then we aren't trying enough things or going fast enough. 3. Why 0->1 Efforts Fail. The biggest culprit is the allure of a "sound" plan, a "solid" strategy, and comprehensive market research. In past eras, these were prerequisites and indicators of likely success. The temptation is to apply them to 0->1, but this doesn’t work because there's too much uncertainty. As the world gets more uncertain with AI, it gets harder to predict the future. Old management methods yield false precision and give us a false sense of security. Long-range planning and forecasting only work when there is a long, relatively stable operating history and relatively static environment-- AI ensures that the latter has disappeared. As AI eats the world, rapid learning loops will eat traditional management. #Management #LeanStartup #startups #GenAI

This is the sneakiest trap entrepreneurs fall into: (I've personally fallen into this one multiple times) It's called: Optimizing the Useless Elon was once asked: "what's the biggest mistake engineers make?" He said: "Optimizing that which shouldn't exist." Now, if you find it really easy to fall into this trap (like me), then here's a simple framework that we used to build our first 8-figure business that I think you'll find useful. It's called D.O.W.N.T.I.M.E. This framework (borrowed from Lean Manufacturing) is all about learning to identify and eliminate WASTE within your business. Here's how to use this acronym to optimize your business: 1. DEFECTS If you don't have time to do something right, then when will you ever have the time to fix it? Defective products are a margin killer. Defects costs material, time, energy, morale, customer satisfaction, reputation, and more... 2. OVERPROCESSING Determine the customer's expectation of quality. Exceed it by ~15%. Diminishing returns kick in beyond this point. Want to increase quality? Increase price and your customer's corresponding expectation. Want to decrease quality? Decrease price. 3. WAITING Teams become increasing inefficient as they grow. People waste large amounts of time waiting for somebody in some other department to complete a task before they can move forward. Combat this by creating "simultaneous" (not "sequential") processes whenever possible. 4. Non-Used Employee Genius Your people are your most valuable resource. Treat them as such. Make sure they're not only sitting on the right seat, but that you're tapping into their unique genius (whatever that may be). 5. TRANSPORTATION The excessive movement of a "product" or "material" through a process. When moving things through a facility, straight lines are your friend. When moving things through a work cell, the "u" is your friend. 6. INVENTORY Necessary evil, especially in a world with next day delivery expectations. We're a "just in time" manufacturer, so balancing "enough" inventory with "too much" is one of the hardest problems we've had to solve for. 7. MOTION The excessive movement of yourself through a process. Example: Walking 10 steps to get the hammer 10 times per day. 10 x 10 x 280 (working days /year) = 28,000 steps 2,000 steps/mile 28,000/2,000 = 14 miles /year Move the tool. 8. Excess Production This gets turned into Inventory, but it's the unintended result of a process exceeding demand. Don't get this one figured out and you'll drown in inventory. This concept of D.O.W.N.T.I.M.E. works in ANY business, but it all comes down to culture. Training new employees in this concept is the most important thing we do. Why? Because once you know how to identify waste, you start to see it everywhere... Even in areas you know nothing about (like me in manufacturing). And once you control for DOWNTIME... your UPSIDE is practically unlimited.

🚲💥 Lean sounds like a good idea… until it’s misapplied. This general meme template made me think of how often organizations say they’re adopting Lean — but then put the stick right into the spokes of their own efforts. So I created this version of it. Lean is supposed to be about Safety, Quality, Delivery, and Cost — in that order. But in healthcare, especially, too many Lean initiatives start and end with one thing: Cost. 👉 That doesn’t inspire nurses, techs, or physicians. 👉 That doesn’t build trust. 👉 That doesn’t lead to sustainable improvement. What DOES engage frontline staff is the idea of improving their work: reducing frustration, fixing broken processes, and providing safer, better care. Making work easier. I think that's true outside of healthcare, as well. When we focus on people and purpose, cost improvements tend to follow — as an end result, not the primary reason. People generally won't engage when Lean is framed as a finance initiative, instead of a people-centered one with the broad goals of SQDC. Let’s stop throwing sticks in our own wheels. 🔁 What’s helped your team stay focused on purpose instead of just cost? #LeanHealthcare #Kaizen #RespectForPeople #PsychologicalSafety #ContinuousImprovement #SQDC #LeanLeadership #Meme

It’s time to face the raw reality of Lean head-on. As a CEO, you need to confront these 10 harsh truths about Lean: 😬 1. Lean is not a quick fix: Expecting immediate results will only lead to disappointment and a waste of resources. Realize that implementing Lean takes time and relentless dedication. ⏳ 2. Resistance to change is common: Be prepared to face resistance from employees, even from your own executive team. Overcome it or risk jeopardizing the success of your Lean initiatives. 💪 3. It's not just about cost-cutting: If you think Lean is a mere cost-cutting exercise, you're missing the point. It demands a fundamental shift in your organization's mindset and operations. 💡 4. Continuous improvement is a journey, not a destination: There's no end date for improvement. You must constantly push your organization to evolve, or it will stagnate and fall behind. 🚀 5. The human factor is vital: Ignoring the importance of engaging your workforce will lead to a disengaged and unproductive workforce, undermining the potential of Lean. 👥 6. Failure is an opportunity for growth: Embrace failure or be left behind. If you punish failures instead of learning from them, you're stifling innovation and progress. 🚫🛑 7. It requires top-level commitment: If you're not fully committed to Lean, your entire organization will follow suit. Half-hearted efforts will lead to half-hearted results. 💼💔 8. Metrics matter, but they can be misleading: Relying solely on metrics might give you a false sense of accomplishment. Don't get blindsided by numbers while ignoring the true impact on customers and performance. 📈🚨 9. Customization is essential: A cookie-cutter approach to Lean won't work. If you don't adapt Lean to suit your organization's unique needs, you'll end up with a hollow shell of transformation. 🍪🏭 10. It's not suitable for all industries: Before jumping on the Lean bandwagon, critically assess whether it aligns with your industry and business model. Blindly applying it could be a costly mistake. 🚫🤔 Embracing these brutal truths will prepare you for the tough road ahead in your Lean journey. It's not for the faint-hearted, but facing these realities head-on will lead to meaningful change and a stronger, more resilient organization. 🌟🏆 Lean Focus

How I Navigate Streamlining with a Reduced Team Size [Guidelines from managing lean teams] Things I Don't Do: -Neglect team feedback. -Assume old output standards. -Overburden team members. -Overlook training gaps. -Avoid hard conversations. -Minimize regular check-ins. -Shift blame. -Ignore morale. -Isolate team members. -Skip recognition. Things I Do: -Listen to team input. -Set realistic goals. -Distribute workload evenly. -Identify and fill skill gaps. -Address challenges promptly. -Ensure clear communication. -Take accountability. -Monitor team well-being. -Encourage teamwork. -Acknowledge achievements. Efficiency is key with a streamlined team. P.S. Is your team aligned and ready?

🔍 Have you ever wondered how some companies keep things running smoothly, even when challenges pop up? Here’s a little insight: They’re often using Lean principles, a set of practices focused on making things simpler, faster, and more effective by cutting out the clutter. But Lean is about more than just efficiency; it’s about connecting people with their work in meaningful ways. Take visual management as an example. It’s all about making information visible and accessible. Imagine Walking into an office and immediately seeing a Kanban board showing where each project stands or an “out-of-stock” card on an inventory shelf. These aren’t just clever tools—they make work easier to understand and create a sense of ownership and accountability. And the results? Employees feel empowered to make decisions on the spot, without waiting for formal reports or meetings. According to recent studies, visual management can increase task accuracy by up to 60% in workplaces that adopt it. Then there’s gemba, or what Toyota calls the “go-and-see” mindset. Instead of guessing what’s going on from an office, managers head to the shop floor. They observe, listen, and understand what’s happening right at the point of action. Toyota Motor Corporation leads the way here, with most of its supervisors spending time on the production floor daily. And it pays off—problems get resolved faster, and solutions are based on firsthand observations, not assumptions. Finally, Continuous improvement is at the heart of Lean. It’s the mindset of always looking for ways to do things better, even if only by a tiny bit. Every tweak, every little fix, adds up over time, ensuring that the company is always moving toward giving customers more value. In fact, companies that embrace continuous improvement report a 15-20% increase in productivity over time, as noted by the Lean Enterprise Institute. And here’s what often goes unnoticed: Lean only works because it values people. Real, day-to-day improvements come from the employees who are involved in the work and whose insights and ideas shape better processes. When people feel heard, productivity grows—by as much as 30% in companies with strong employee engagement practices. So, Next time you hear about Lean, think beyond the jargon. At its core, it’s about creating a work environment where people feel connected to their roles, confident in their abilities, and motivated to make a difference every day. That’s the real impact of Lean.

This month the Journal of Management dedicated a special issue to the Lean Startup. I have been teaching Lean Launchpad (ENGR 245) at Stanford University School of Engineering for the last eight years. Lean Launchpad class was started by Steve Blank at Stanford University in 2012. Today there are several classes at Stanford based on the Lean Launchpad methodology and many schools around the world teaching it. We focus on teaching customer discovery ("getting out of the building" to talk to customers and trying to understand what the customers say). We teach students a framework to test the business model of a startup while creating all of the pressures and demands of the real world in an early stage startup. We come as close as possible to simulating a startup in just ten weeks. Every year we will get at least one venture backed company (many times more) ouf of eight teams to become a significant company. Some companies include: Zūm, Afresh, Blue River Technology , Nova Credit,FreeWill, Pocus, XP Health, Sybill , and many others. Some of my key learnings so far (there are many more!): * Being a "customer savant" is critical in understanding what customers need. You can be a customer savant because you are the customer or know the customer intimately. You can also do this by interviewing many customers (100+ interviews seems to be a magic number), spending time with the customer (one of our asks is "spend a day with the customer") and creating a set of increasing complexity experiments to extract info from customers. The more time/effort you spend becoming a "customer savant" the higher chance of addressing a real problem/opportunity. * Performing interviews but not truly listening and letting go of your biases does not work. You are constantly fighting confirmation biases. It is hard and painful to let go of old ideas but it is part of the journey. We celebrate changes and pivots - they mean change forward. * Fight the urge to build and focus on fast prototyping. If you build before being a "customer savant", you will likely throw away what you build. However, if you can prototype quickly (eg, Figma demos) you will get a lot of signal from the customer at a low cost. This means you can move much faster. * Everything can be learned. Students just need encouragement to do uncomfortable things. By the end of the class, an MBA student will learn how to prototype and an engineering student is comfortable reaching out to strangers and asking for something. My mentor Katheryn Gould recommended me as a mentor for Lean Launchpad back in 2015 and Steve Blank not only took me on but encouraged me to become an instructor. Thank you Steve for taking a chance on me. You have given me the gift of teaching every year to an amazing set of students and working with talented folks like you, Jeff Epstein, Steve Weinstein, George John, Sarah Smith and Radhika Malpani. https://lnkd.in/gwBKzS3d

Wednesday Q&A Q: "I am an experienced leader preferring a command-and-control approach, and this leadership style has helped me build and maintain highly effective teams for many years. However, in today's rapidly evolving environment, my style feels outdated. I am open to change but unsure how to create an environment of empowerment—delegation, letting control go, and giving freedom to make decisions—without compromising performance?" First, it's important to acknowledge your willingness to adapt—a crucial first step in leadership evolution. As the environment shifts, so must our approaches to leading others. Your command-and-control style has merits, particularly in situations requiring strict compliance and efficiency. However, it's important to note that promoting an environment of empowerment can drive even greater performance by unlocking your team's full potential and inspiring confidence in the transition. Here's how you can transition to a more empowering leadership style without compromising performance: 1️⃣ Recognize your team members' strengths and competencies. Focusing on their past strengths and achievements will help you TRUST them to make decisions and handle responsibilities. 2️⃣ Delegate with clarity. DELEGATION doesn't mean dumping tasks. It's about entrusting team members with meaningful responsibilities that align with their skills and growth areas. When you delegate, provide clear objectives and expectations, allowing them to determine how to achieve those goals. 3️⃣ Create a culture of ACCOUNTABILITY by encouraging individuals to contribute to the outcome, take the initiative, and offer solutions. This will help them to become more invested in the team's success. Remember, empowerment doesn't mean you disappear from the process and entirely give up control. It means you provide the resources, guidance, and feedback they need without prescribing what to do or micromanaging. Although you may initially feel you're losing grip, you'll gain a more engaged, innovative, and high-performing team. To start to shift, ask yourself today: 🔹 How can you begin to delegate more effectively this week? 🔹 What small steps can you take to build trust and encourage ownership within your team? #trust #delagation #accountability