Lean Gold cheat sheet

Five core principles in sequence: specify value from the customer's perspective, identify the value stream, make value flow, let the customer pull, and pursue perfection.

Value is defined only by the customer's requirements for a specific product or service at a specific price and time; internal opinions of value are not value.

Three conditions classify any activity: value-adding, necessary non-value-adding (business-enabling waste), and pure non-value-adding waste. Only the first two may remain long term.

Lead time = processing time + waiting time + transport time + inspection time. Little's Law states throughput time = work in process / throughput rate.

Push systems release work to a schedule forecast; pull systems release work only on downstream consumption signaled by kanban, CONWIP, or a customer order.

Flow means producing one unit at a time with no batching between steps; continuous flow is preferred, and pull replaces flow only where flow is impossible.

Takt time = available production time / customer demand rate, expressed in time per unit. Cycle time above takt time means demand cannot be met without overtime or added capacity.

Perfection in Lean means reducing the gap between current and ideal states continuously, not reaching a fixed endpoint.

Lean applies to service and administrative work by the same logic: value is defined by the requester and waste is any step that does not move the request toward completion.

A value stream map covers one product family and shows material flow, information flow, and the timeline; process boxes carry cycle time, changeover time, uptime, batch size, and available time.

Value-added ratio (process cycle efficiency) = value-added time / total lead time. Typical office and manufacturing streams sit in the low single digits to about 5 percent.

Rolled throughput yield = product of each step's first-pass yield across the stream; it exposes hidden rework that average yield masks.

Current-state map first, then a future-state map, then a plan with owners and dates. Mapping without a future state and an action plan does not change performance.

Takt time sets the pace line on the map; steps whose cycle time exceeds takt time are constraints and are candidates for kaizen bursts.

A process box represents one step with internal waiting removed; inventory triangles between boxes are the queues that dominate lead time.

A spaghetti diagram traces physical travel of people or documents; distance and crossings are the measure, and the improvement target is shortening or eliminating travel.

A swimlane or deployment flowchart separates handoffs by role, which exposes delays caused by approval loops and rework loops rather than by work content.

Capacity analysis compares each step's effective capacity (available time x uptime / cycle time) with demand to locate the bottleneck before improving anything else.

The eight wastes are overproduction, waiting, transportation, overprocessing, inventory, motion, defects, and unused human talent; overproduction is the worst because it creates the others.

Overproduction is measured as output above the next step's consumption rate or above takt time; it hides defects and inflates lead time.

Inventory waste is quantified as days of supply = on-hand units / daily demand; queues are inventory in the office.

Defects waste includes rework, scrap, inspection, and warranty; cost of poor quality includes appraisal and failure costs, internal and external.

Motion waste is measured by ergonomic risk and travel distance per cycle; transportation waste is measured by distance and number of moves per unit.

Waiting waste appears as operator idle time, queue time, or approval delay; it is the largest single contributor to lead time in most streams.

Overprocessing is work the customer would not pay for, such as redundant approvals, tighter tolerance than specified, or duplicate data entry.

Unused talent is addressed through standard work participation, suggestion systems with response targets, and cross-training matrices.

Waste audits use direct observation at the gemba with a tally sheet per waste type over a defined sample period; conclusions come from observed counts, not recollection.

PDCA: Plan sets target condition and method, Do runs the experiment, Check compares result against target, Act standardizes or adjusts. Without a target condition there is no improvement cycle.

5S sequence: sort, set in order, shine, standardize, sustain. Sustain is the step that fails most often; audits with scores and owners support it.

Standard work specifies takt time, work sequence, and standard in-process stock. It is the baseline against which any improvement is measured.

SMED separates internal setup (machine stopped) from external setup (machine running); the target is converting internal to external and then reducing both.

Kanban rules: downstream withdraws, upstream produces only what is withdrawn, no item is moved without a kanban, and the number of kanban sets the WIP cap.

Jidoka means stop the line on an abnormality so defects are not passed on; andon is the signal, and the five whys is the countermeasure tool.

Poka-yoke is error prevention at the source: contact, fixed-value, or motion-step methods. It is preferred over detection and over training alone.

A3 problem solving structure: background, current condition with data, target condition, root cause analysis, countermeasures, plan, and follow-up. It fits on one page by design.

Kaizen events run five days typically: day one scope and baseline, day two analyze, days three and four implement and trial, day five standardize and report results.

Hoshin kanri cascades annual objectives into measurable targets and improvement priorities at each level, with catchball negotiation up and down the chain.

Leader standard work defines daily routines (gemba walks, tiered meetings, escalation checks) that sustain gains after a project ends.

Tiered daily management uses short stand-up meetings at each level with a defined escalation path and time limit for unresolved issues.

A value stream manager owns end-to-end flow and lead time for a product family, which conflicts with functional department ownership and must be made explicit.

Resistance to Lean typically comes from misaligned metrics, not attitude; changing local efficiency and utilization targets to flow and lead-time targets removes the incentive to build inventory.

Gemba means going to the place where work happens to observe the actual process; reports and dashboards are not a substitute.

Respect for people means engaging the people who do the work in designing the standard, and leaders asking questions rather than issuing countermeasures.

Deployment sequencing: pilot in a constrained area with visible flow, prove results with data, standardize, then spread by replication with local adaptation.

Training structure commonly follows a 70-20-10 pattern: most learning on the job in a real improvement, some from coaching, a minority from classroom instruction.

Five principles in order: value, value stream, flow, pull, perfection. Perfection is the pursuit, not a state to be reached.

Value is set by the customer's requirements at a specific price and time; internal preference does not define value.

Little's Law: throughput time = WIP / throughput rate. Cutting WIP at constant throughput shortens lead time proportionally.

Takt time = available time / customer demand, in time per unit. Cycle time above takt time means demand cannot be met.

Pull releases work only on downstream consumption; push releases work to a forecast.

Continuous flow is preferred over pull, and pull is preferred over batch scheduling where flow is impossible.

Activities are value-adding, necessary non-value-adding, or pure waste; only the third must be eliminated outright.

Lean applies to service work by the same logic: the requester defines value and delay is the dominant waste.

A value stream map covers one product family and shows material flow, information flow, and a timeline bar of value-added versus waiting time.

Process boxes record cycle time, changeover time, uptime, batch size, available time, and operators; inventory triangles record quantity and days of supply.

Value-added ratio = value-added time / total lead time; typical streams land in the low single digits.

Rolled throughput yield = product of first-pass yields at every step; it exposes rework hidden by average yield.

Sequence is current state, future state, then an action plan with owners and dates; mapping without a future state changes nothing.

Steps with cycle time above takt time are constraints and receive kaizen bursts on the map.

Spaghetti diagrams measure travel distance and crossings of people or documents; the target is shortening or eliminating movement.

Effective capacity per step = available time x uptime / cycle time; compare with demand to locate the true bottleneck.

Eight wastes: overproduction, waiting, transportation, overprocessing, inventory, motion, defects, unused talent. Overproduction generates the rest.

Days of supply = on-hand inventory / daily demand; queues are inventory in office streams.

Waiting is usually the largest contributor to lead time; it appears as queue time, idle time, or approval delay.

Overprocessing is work the customer would not pay for: redundant approvals, duplicate entry, tolerance tighter than specified.

Defects waste includes rework, scrap, inspection, and warranty; cost of poor quality spans appraisal plus internal and external failure.

Motion is measured by travel distance and ergonomic risk per cycle; transportation by distance and number of moves per unit.

Unused talent is countered with standard work participation, suggestion systems with response targets, and cross-training matrices.

Waste audits use direct gemba observation with a tally sheet per waste type over a defined sample; counts, not recollection, drive conclusions.

PDCA requires a target condition; without one there is no experiment and no improvement cycle.

5S order: sort, set in order, shine, standardize, sustain. Sustain fails most often and needs audits, scores, and owners.

Standard work defines takt time, work sequence, and standard in-process stock; it is the baseline for every improvement.

SMED converts internal setup (machine stopped) to external setup (machine running), then reduces both.

Kanban rules: downstream withdraws, upstream produces only what is withdrawn, nothing moves without a kanban, and kanban count caps WIP.

Jidoka stops the process on abnormality; andon signals it, and five whys drives the countermeasure.

Poka-yoke methods are contact, fixed-value, and motion-step; prevention at the source beats detection and beats training alone.

A3 structure: background, current condition with data, target, root cause, countermeasures, plan, follow-up; one page by design.

Kaizen events typically run five days: scope and baseline, analyze, implement and trial, then standardize and report results.

Hoshin kanri cascades annual objectives into measurable targets at each level through catchball negotiation up and down the chain.

Leader standard work defines daily routines such as gemba walks, tiered meetings, and escalation checks that sustain gains after projects end.

Tiered daily management uses short stand-ups at each level with a defined escalation path and a time limit for unresolved issues.

A value stream manager owns end-to-end flow and lead time for a product family, which conflicts with functional ownership and must be made explicit.

Misaligned metrics, especially local efficiency and utilization targets, drive inventory buildup; flow and lead-time targets remove that incentive.

Gemba means observing the actual process where work happens; reports and dashboards are not a substitute.

Respect for people means the people doing the work design the standard, and leaders ask questions instead of issuing countermeasures.

Deployment sequence: pilot in a constrained area, prove results with data, standardize, then replicate with local adaptation.

Training commonly follows 70-20-10: most learning on the job in a real improvement, some from coaching, a minority from classroom.

Five principles in order: value, value stream, flow, pull, perfection. Perfection is a pursuit, not a destination.

Value is defined by the customer's requirements at a specific price and time; internal preference does not define value.

Little's Law: throughput time = WIP / throughput rate. Reducing WIP at constant throughput shortens lead time proportionally.

Takt time = available time / customer demand, in time per unit. Cycle time above takt time means demand cannot be met.

Pull releases work only on downstream consumption; push releases work to a forecast.

Continuous flow is preferred over pull, and pull over batch scheduling where flow is impossible.

Activities are value-adding, necessary non-value-adding, or pure waste; only the third must be eliminated outright.

Lean applies to service work by the same logic: the requester defines value and delay is the dominant waste.

A value stream map covers one product family and shows material flow, information flow, and a timeline bar of value-added versus waiting time.

Process boxes record cycle time, changeover time, uptime, batch size, available time, and operators; inventory triangles record quantity and days of supply.

Value-added ratio = value-added time / total lead time; typical streams land in the low single digits.

Rolled throughput yield = product of first-pass yields at every step; it exposes rework hidden by average yield.

Sequence is current state, future state, then an action plan with owners and dates; mapping without a future state changes nothing.

Steps with cycle time above takt time are constraints and receive kaizen bursts on the map.

Spaghetti diagrams measure travel distance and crossings of people or documents; the target is shortening or eliminating movement.

Effective capacity per step = available time x uptime / cycle time; compare with demand to locate the true bottleneck.

Eight wastes: overproduction, waiting, transportation, overprocessing, inventory, motion, defects, unused talent. Overproduction generates the rest.

Days of supply = on-hand inventory / daily demand; queues are inventory in office streams.

Waiting is usually the largest contributor to lead time; it appears as queue time, idle time, or approval delay.

Overprocessing is work the customer would not pay for: redundant approvals, duplicate entry, tolerance tighter than specified.

Defects waste includes rework, scrap, inspection, and warranty; cost of poor quality spans appraisal plus internal and external failure.

Motion is measured by travel distance and ergonomic risk per cycle; transportation by distance and number of moves per unit.

Unused talent is countered with standard work participation, suggestion systems with response targets, and cross-training matrices.

Waste audits use direct gemba observation with a tally sheet per waste type over a defined sample; counts, not recollection, drive conclusions.

PDCA requires a target condition; without one there is no experiment and no improvement cycle.

5S order: sort, set in order, shine, standardize, sustain. Sustain fails most often and needs audits, scores, and owners.

Standard work defines takt time, work sequence, and standard in-process stock; it is the baseline for every improvement.

SMED converts internal setup (machine stopped) to external setup (machine running), then reduces both.

Kanban rules: downstream withdraws, upstream produces only what is withdrawn, nothing moves without a kanban, and kanban count caps WIP.

Jidoka stops the process on abnormality; andon signals it, and five whys drives the countermeasure.

Poka-yoke methods are contact, fixed-value, and motion-step; prevention at the source beats detection and beats training alone.

A3 structure: background, current condition with data, target, root cause, countermeasures, plan, follow-up; one page by design.

Kaizen events typically run five days: scope and baseline, analyze, implement and trial, then standardize and report results.

Hoshin kanri cascades annual objectives into measurable targets at each level through catchball negotiation up and down the chain.

Leader standard work defines daily routines such as gemba walks, tiered meetings, and escalation checks that sustain gains after projects end.

Tiered daily management uses short stand-ups at each level with a defined escalation path and a time limit for unresolved issues.

A value stream manager owns end-to-end flow and lead time for a product family, which conflicts with functional ownership and must be made explicit.

Misaligned metrics, especially local efficiency and utilization targets, drive inventory buildup; flow and lead-time targets remove that incentive.

Gemba means observing the actual process where work happens; reports and dashboards are not a substitute.

Respect for people means the people doing the work design the standard, and leaders ask questions instead of issuing countermeasures.

Deployment sequence: pilot in a constrained area, prove results with data, standardize, then replicate with local adaptation.

Training commonly follows 70-20-10: most learning on the job in a real improvement, some from coaching, a minority from classroom.

Five principles in order: value, value stream, flow, pull, perfection. Perfection is a pursuit, not a destination.

Value is defined by the customer's requirements at a specific price and time; internal preference does not define value.

Little's Law: throughput time = WIP / throughput rate. Reducing WIP at constant throughput shortens lead time proportionally.

Takt time = available time / customer demand, in time per unit. Cycle time above takt time means demand cannot be met.

Pull releases work only on downstream consumption; push releases work to a forecast.

Continuous flow is preferred over pull, and pull over batch scheduling where flow is impossible.

Activities are value-adding, necessary non-value-adding, or pure waste; only the third must be eliminated outright.

Lean applies to service work by the same logic: the requester defines value and delay is the dominant waste.

A value stream map covers one product family and shows material flow, information flow, and a timeline bar of value-added versus waiting time.

Process boxes record cycle time, changeover time, uptime, batch size, available time, and operators; inventory triangles record quantity and days of supply.

Value-added ratio = value-added time / total lead time; typical streams land in the low single digits.

Rolled throughput yield = product of first-pass yields at every step; it exposes rework hidden by average yield.

Sequence is current state, future state, then an action plan with owners and dates; mapping without a future state changes nothing.

Steps with cycle time above takt time are constraints and receive kaizen bursts on the map.

Spaghetti diagrams measure travel distance and crossings of people or documents; the target is shortening or eliminating movement.

Effective capacity per step = available time x uptime / cycle time; compare with demand to locate the true bottleneck.

Eight wastes: overproduction, waiting, transportation, overprocessing, inventory, motion, defects, unused talent. Overproduction generates the rest.

Days of supply = on-hand inventory / daily demand; queues are inventory in office streams.

Waiting is usually the largest contributor to lead time; it appears as queue time, idle time, or approval delay.

Overprocessing is work the customer would not pay for: redundant approvals, duplicate entry, tolerance tighter than specified.

Defects waste includes rework, scrap, inspection, and warranty; cost of poor quality spans appraisal plus internal and external failure.

Motion is measured by travel distance and ergonomic risk per cycle; transportation by distance and number of moves per unit.

Unused talent is countered with standard work participation, suggestion systems with response targets, and cross-training matrices.

Waste audits use direct gemba observation with a tally sheet per waste type over a defined sample; counts, not recollection, drive conclusions.

PDCA requires a target condition; without one there is no experiment and no improvement cycle.

5S order: sort, set in order, shine, standardize, sustain. Sustain fails most often and needs audits, scores, and owners.

Standard work defines takt time, work sequence, and standard in-process stock; it is the baseline for every improvement.

SMED converts internal setup (machine stopped) to external setup (machine running), then reduces both.

Kanban rules: downstream withdraws, upstream produces only what is withdrawn, nothing moves without a kanban, and kanban count caps WIP.

Jidoka stops the process on abnormality; andon signals it, and five whys drives the countermeasure.

Poka-yoke methods are contact, fixed-value, and motion-step; prevention at the source beats detection and beats training alone.

A3 structure: background, current condition with data, target, root cause, countermeasures, plan, follow-up; one page by design.

Kaizen events typically run five days: scope and baseline, analyze, implement and trial, then standardize and report results.

Hoshin kanri cascades annual objectives into measurable targets at each level through catchball negotiation up and down the chain.

Leader standard work defines daily routines such as gemba walks, tiered meetings, and escalation checks that sustain gains after projects end.

Tiered daily management uses short stand-ups at each level with a defined escalation path and a time limit for unresolved issues.

A value stream manager owns end-to-end flow and lead time for a product family, which conflicts with functional ownership and must be made explicit.

Misaligned metrics, especially local efficiency and utilization targets, drive inventory buildup; flow and lead-time targets remove that incentive.

Gemba means observing the actual process where work happens; reports and dashboards are not a substitute.

Respect for people means the people doing the work design the standard, and leaders ask questions instead of issuing countermeasures.

Deployment sequence: pilot in a constrained area, prove results with data, standardize, then replicate with local adaptation.

Training commonly follows 70-20-10: most learning on the job in a real improvement, some from coaching, a minority from classroom.