What’s "lean dynamics," anyway?
Lean Dynamics is a powerful business improvement methodology based on one simple principle: That organizations of all types can innovate and drive extraordinary results amid uncertain and changing circumstances.
Where did the “lean dynamics” concept come from?
The foundation for this concept was described in a research paper, and subsequently a book, titled Breaking the Cost Barrier (Wiley) by Stephen A. Ruffa and Michael J. Perozziello, detailing their findings from a multi-million dollar, international research project conducted for the Joint Strike Fighter Program—better known as the F-35 fighter. It showed how popular cost reduction techniques—from lean manufacturing to Six Sigma—can be structured in a way to break the trend of spiraling costs for developing and producing tactical aircraft. Their results were widely acknowledged and awarded the Shingo Prize, and formed the foundation for Going Lean, which introduced this concept.
How is lean dynamics different?
Whereas lean manufacturing or Lean Six Sigma typically focus on solving problems or removing “waste”, lean dynamics takes aim at the dynamic conditions that drove these wastes to accumulate in the first place.
What is "dynamic value"?
Lean manufacturing represents a shift from thinking of value from an internal perspective--such as optimizing economies of scale--to seeing value from the perspective of the customer. Dynamic value takes this a step further: value is what the customer says it is--even if they keep changing their minds.
How do I measure dynamic value?
Whereas lean manufacturing or Lean Six Sigma measures value locally--as the aggregation of many individual waste reduction efforts--lean dynamics acknowledges that the individual benefits do not necessarily add up. Instead, dynamic value is measured from the perspective that matters--as bottom-line benefit to the corporation and the customer. It is displayed as a "value curve," visually showing the difference between costs and benefit across the range of conditions in which the company operates.