A proposed definition for the essence of Lean, for discussion.

1. A DEFINITION OF “LEAN”
By Mike Rother

2. 2Mike Rother
The word "Lean" was coined in 1990, as a new
paradigm of management that led to Toyota’s
enduring success.
However, there is no agreed upon definition of
Lean, and perhaps a consistent definition is not
possible. What, then, is the essence of the concept?
My goal here is to give one possible answer to that
question, to stimulate thought and discussion.

3. We've often tried to define Lean by listing
things like its elements and principles.
A different kind of definition is less about
"things" associated with Lean and more
about describing the mindset of Lean.
The following definition, published in the
February 2014 issue of Quality Progress,
could serve as a description of Lean.
A Proposed Definition
“Lean is the permanent
struggle to better flow
value to each customer”
3

4. Let’s take a closer look at this
elevator-speech definition
4Mike Rother

5. Permanent and better mean never-ending
and on-going, because any situation can be
further improved.
You’ll never, ever be at the ideal state of
your distant vision…. and that is the beauty!
The permanent struggle to
better flow value to each customer
5Mike Rother

6. Struggle is recognizing that you may learn
something from each step. It's about striving for
a next target condition through the grey zone of
obstacles and uncertainty -- where you are not
always right -- and realizing that there will be
another target condition after that.
You take a step, encounter new information,
evaluate it, revise your understanding based on
what you learn, and plan the next step
accordingly.
Notice that without struggle we are only
doing what we already know… and what
our competitors know.
The permanent struggle to
better flow value to each customer
6

7. To flow is not simply to ‘provide.’ For instance,
it’s not just holding items in inventory in the
hope that you'll have on hand what a customer
wants, but rather to create and provide what
the customer wants when they want or need it.
This ideal of such a pure 1x1 flow may not be
entirely reachable, but it gives a perpetual
target to those organizations who view this as
strategic.
The permanent struggle to
better flow value to each customer
7Mike Rother

8. The concept value is defined by deeply
understanding customers, and evolves
over time.
The permanent struggle to
better flow value to each customer
8Mike Rother

9. To each customer means that at the end of your
value stream there is a single customer with
particular wants or needs.
Toyota has a saying: “We make millions of cars,
but the customer buys only one.”
From our perspective we may think we are
supplying many customers, but turn that around
to the customer’s perspective and there is only
one.
The permanent struggle to
better flow value to each customer
9Mike Rother

10. Let’s face it... we are almost always
in the unpredictable learning zone
Whether reacting to deviations from standards or striving
for a new level, the Lean mindset & approach is roughly
the same in each case... it involves a scientific process of
testing and possibly adjusting as you strive to reach a
goal. Why? Because you never know for sure how you
are going to get there, until you get there and look back.
Predictable Zone
Current
Knowledge
Threshold
Next
Target
Condition
Unpredictable / Learning Zone
?
We want
to be here
next
?
10Mike Rother

11. Striving for efficiency
is not enough
The Lean community seems to have internalized and
operated on the idea that Toyota's growth and
prosperity stemmed from eliminating waste for
greater efficiency. We've been selling Lean as a cost-
reduction tool for so long that most leaders probably
think that is its only goal.
Today we know that Toyota's success came from
striving scientifically to achieve many types of
challenging goals, not just cost reduction.
11Mike Rother

12. What do YOU want to achieve?
Focusing on waste elimination and cost
reduction alone is no guarantee of business
success. The Lean idea of 'value' involves
understanding your customer & environment,
defining a strategic direction that will set you
apart in delivering customer value, and
mobilizing the organization in that pursuit.
A narrow focus on minimizing waste
and cost alone is ultimately not what
will help organizations meet the
challenges they face and differentiate
themselves from competitors.
12Mike Rother