Friday, 3 April 2020

Traditional Problem-Solving Vs Lean Thinking – A perspective!!



Recently I encountered a question from one of the CEOs “why we need Lean?  why not we just do improvements using common sense?
In this blog, I want to share my perspective and experience the difference between Traditional and Lean Thinking for Problem Solving.
Human beings always try to solve problems.  What is meant by “Problem”?
Problem is something undesirable condition or a state so need to be dealt with. But the challenge is we resolve issues but it crops up again.  
For example, Banking System for cash withdrawal
Traditional System 1 – Cashier System:
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In the above scenario the problem was delay, waiting and lot of activities to be performed by the customer need. This is an undesirable state for the customer.
Traditional problem-solving found a solution as follows from the Cashier System to Teller System:
Teller system brought by the bank as a next step to improve customer service. Teller is a person who handles a cash related thing in bank and is generally found in banks as this is the term used for cashier in a bank. But still the problem for the customer is not resolved or addressed.
Now comes the Lean Thinking for the above issue.
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When we say Lean the whole thinking process is to ensure only the minimum number of activities and provide / deliver the service. It’s not how many activities organization has reduced within but also to make sure less no. of activities to be performed by the customer to get the service done.
For example, the breakthrough improvement would be the ATM in this case. We can do multiple transactions / banking services at our convenience using ATM service. I consider this is an example of Lean Thinking (of course ATM (technology) brought the highest level of convenience and flexibility to the customer which is IT enabled service in this case.)
The following are the important points to consider.
  1. Teller system wasn’t a result of structured thinking process. It was more of a stop gap arrangement not even an improvement according to me. Since it has not removed the customer going thro the hassle of doing transaction with the bank. 
  2. Customer visiting the bank to withdraw money is WASTE (non-value activities) as part of the process design has been eliminated.
  3. ATM and online banking made less number of activities being performed by the customer and convenience has been improved manifold.  
  4.  Lean is a structured thinking of understanding the process flow (from the customer perspective), value creation and flow detractors as against Traditional Problem Solving which lacks Thinking in the first place.
  5. The enormity of waste getting ignored in the traditional approach and not visible as much as when Lean Thinking is applied.
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