Audience Opinion Piece

Value in a Lean System

American newspaper columnist Doug Larson once remarked, "Wisdom is the reward of a lifetime of listening when you'd have preferred to talk." As I've recently celebrated my 45th birthday, I've reflected on how much time I've spent talking versus listening. Over the last decade, listening has taught me a profound lesson about value.

When seeking to define value, we can begin with some fundamental questions. One great question to begin with is, "How is value determined?" It is very important to realize that value is determined by the customer, and it's not static; it changes over time.

Another important question to ask is, "What does value creation look like?" When value is created, it involves stakeholders who are actively engaged in processes that meet customer expectations. It fosters a sense of pride and satisfaction among those involved, directly impacting the emotional and operational landscape of a business or service.

This is where continuous improvement can be demonstrated. The concept of continuous improvement is pivotal in a lean system because it ensures we're always aiming to align with what the customer values. Continuous improvement works systemically with many elements, some of which are Standard Work (Processes) and Flow.

When creating standard work, we need to question, "What processes do we use to create value?" If these processes aren't effective, we must refine them. Good standard work reflects the best-known current process. Once this standard is in place, we can analyze where we're truly adding value and where we might be adding waste.

Good process flow doesn't happen by accident. It requires focus and execution, repeated over time. By focusing on value, we become more adept at spotting inefficiencies. Information flow is crucial; where it stops, inventory and waste accumulate.

Sometimes in technical industries, we can face challenges when selling products to our customers. There are many reasons for this, but when we experience resistance to sales from lean organizations, we should consider a few important things. Companies adopting lean principles are wary of automating inefficiencies. They seek solutions that enhance processes already stripped of waste. If you're proposing automation for a process that could be simplified or eliminated, you might encounter skepticism. Lean companies ask, "Why automate if simplification could render automation unnecessary?"

Understanding this doesn't solve the problem, but it can bring an added perspective to the situation. Today's lean companies are looking for partners that can help them solve problems that eliminate waste. Moving waste onto a server or automating it may be a tough sell to these organizations. This is where the concept of customer value comes into perspective. In your own operations, ask, "What does the customer define as value?" Look at your customers' workflows, understand how tasks are prioritized, and who does what next. How can we align what we do well with what the customer identifies as value?

When we seek to identify and remove process steps that do not contribute to value creation, we create a system that is far more than just cutting costs; it's about enhancing the overall system's efficiency and responsiveness to customer needs.

The journey towards perfection is incremental. Each small step in the right direction compounds over time, making tomorrow's operations better than today's. In essence, the pursuit of value within a lean system is not just about doing things better but about doing better things. It's about aligning every action with what truly matters to the customer, thereby elevating both the product and the process. Remember, continuous improvement isn't about reaching a destination; it's about making the journey itself valuable.  Real, lasting transformations make tomorrow better than today.

Jason Neal

Lean Leader, GE Aerospace

Jason Neal works as a Transformational Operations Leader for GE Aerospace.  He has over 20 years of operational experience, ranging from manufacturing, development, and transactional business systems.  He has worked for GE Aerospace for 18 years of his career, with other time spent working for Delphi Automotive and Procter & Gamble in engineering research. Jason has a Bachelor degree in Mechanical Engineering and an MBA in Strategic Management with a focus in Servant Leadership.