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Strategy & Productivity
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Origins and Philosophy
- Lean Methodology:
- Originated in manufacturing, specifically from the Toyota Production System, Lean focuses on
- minimizing waste and
- maximizing value.
- The core philosophy is about continuous improvement (Kaizen) and creating value for the customer by eliminating non-value-adding activities.
- Agile Methodology:
- Developed in the software development industry, Agile focuses on delivering software incrementally and iteratively.
- It emphasizes flexibility, customer collaboration, and responding to change rather than following a fixed plan.
Key Principles
- Lean Principles:
- Value: Define value from the customer's perspective.
- Value Stream: Map out the value stream to identify waste.
- Flow: Ensure a smooth flow of processes without interruptions.
- Pull: Implement a pull system to produce only what is needed, when it is needed.
- Perfection: Strive for continuous improvement in all processes.
- Agile Principles:
- Customer Satisfaction: Prioritize customer satisfaction through early and continuous delivery of valuable software.
- Embrace Change: Accept changes in requirements, even late in development.
- Frequent Delivery: Deliver working software frequently, with a preference for shorter timescales.
- Collaboration: Foster close cooperation between business stakeholders and developers.
- Simplicity: Maximize the amount of work not done, emphasizing simplicity.
Focus Areas
- Lean Focus:
- Primarily concerned with efficiency and waste reduction across all processes, whether in manufacturing or service industries.
- Lean often involves creating a streamlined production process and improving workflows to enhance overall efficiency.
- Agile Focus:
- Primarily focused on delivering software and adapting to changes quickly.
- Agile teams work in short cycles (sprints) and rely on customer feedback to guide development, ensuring the final product aligns with user needs.
Implementation Practices
- Lean Practices:
- Tools and techniques like Value Stream Mapping, 5S (Sort, Set in order, Shine, Standardize, Sustain), and Kaizen events are commonly used to implement Lean.
- Lean aims to create a culture of continuous improvement involving all employees.
- Agile Practices:
- Involves frameworks like Scrum, Kanban, or Extreme Programming (XP), with practices such as daily stand-ups, sprint planning, and retrospectives.
- Agile emphasizes self-organizing teams and iterative cycles of development.