Appendix A: A Lean Tutorial
is appendix does not attempt to show how to use every Lean tool; you
can nd that in many other books. My intent is to provide you with a basic
tutorial on Lean. Even if you’re familiar with the Lean toolbox, you may
want to review this section because it oers you a summary of the tools
that are used over the course of a Lean transformation. You also get a valu-
able perspective on how each tool is used, when it should be used, what it
can accomplish, and how it drives the True North metrics.
I organize these tools into a few general categories: top-level tools for
executive leadership; tools that principally improve quality; tools that
principally build ow; tools that principally improve cost and productiv-
ity; tools that support human development; and tools that are specically
used in the area of product or service development. Almost all of these
tools have a positive impact on the four True North metrics, so I group
them under the True North metrics that they tend to impact most directly.
As noted, setting True North improvement goals in the double-digit area
(10 percent or more per year) will have a positive impact on each line item
of an income statement and balance sheet.
A few tools are oriented toward the enterprise-level perspective of the
transformation process.
Transformation Value Stream Analysis
I discuss in Chapter 3 how value stream analysis can help an organiza-
tion learn to see waste in its work, and how such analysis can help build
an improvement plan. In addition to value stream analysis, there is a tool
called transformation value stream analysis (TVSA) that takes a top-level
view of a corporation (see Figure A.1).
TVSA identies key value streams at the top level of the enterprise,
assesses their performance as seen by the multiple stakeholders in the
112  •  Appendix A: A Lean Tutorial
organization, and integrates this with the strategic plan of the organiza-
tion. TVSA takes the insight developed in your strategic plan and builds
top-level value stream objectives around the strategic needs and direc-
tion of the enterprise. TVSA also helps the executive team understand the
potential kinds of improvement and pace of improvement that Lean can
bring to bear on each value stream and how these improvements t with
the enterprise strategic plan.
You will be able to choose a couple of key value streams in which to begin
your Lean transformation. ese will be value streams that are important
to the strategic direction of the rm and will demonstrate the power of
Lean improvement to all stakeholders in the enterprise.
Strategy Deployment
e strategic deployment tool has a couple of other names (policy deploy-
ment and hoshin kanri), but the tool is essentially the same in each version
(see Chapter 6 for details). It is a methodology that takes the enterprise
improvement targets and deploys them down through the enterprise, all
the way down to the rst-level workforce where you nd most of the value-
added steps. e basic concept is a cascading of goals from one level of
leadership down to the next level, where the goals are turned into value
stream improvement plans. is part is called catchball by the Japanese.
It is meant to be an exchange of views and knowledge about the improve-
ment eort between two levels of leadership.
Youll begin to ask the following questions:
TVSA example.

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