What are the five key principles of the lean plan?
1. Value- What does our customer need? Why and when do they need it? :
By identifying the unique value of a product or a service through the customers’ point of view, entrepreneurs can improve their position by producing services and products that fulfill the needs of the customers.
2. Value Stream- What happens next and who does it?
Once the value is determined, entrepreneurs can understand how this value flows from the business to the customers. The importance of a value stream map is that by outlining every step of the production process, the entrepreneurs might pinpoint a certain point on the map where value is hindered.
3. Flow-How can we think in a smart, streamlined way to reduce the steps needed to provide the most value to our customer?
Following the value stream entrepreneurs optimize the flow of the production by determining if there are areas to reduce inefficiencies in the flow of the value to the customer.
4. Pull- How can we transform our approach so that we have exactly the quantity the customers need, exactly when they need it?
Entrepreneurs consider the customer’s perspective on the final product or service by investing in the idea of the customer being able to pull the value when they need it. Instead of investing in materials, production, and then storage to be ready for a customer’s order, entrepreneurs can use the customer’s true needs to direct a more sensible model saving cost, space, time, and resources.
5. Perfection - Did we execute our plan and realize
gains inefficiency? Where else can we improve our approach to bringing value
to our customers? :
In the pursuit of continuous improvement entrepreneurs analyze every step in the production process by focusing on elements that add value and eliminating those that don’t.
References:
1. https://articles.bplans.com/an-overview-of-lean-business-planning/
2. https://leanplan.com/what-is-a-lean-business-plan
3. https://articles.bplans.com/introducing-lean-planning-how-to-plan-less-and-grow-faster
4. https://timberry.bplans.com/5-things-lean-business-planning/
5. https://www.gazprom-energy.co.uk/blog/what-is-the-lean-business-model-and-what-are-its-benefits
6. https://www.correoslabs.com/en/news/5-benefits-applying-lean-startup-methodology
7. https://www.sba.gov/blog/fundamentals-lean-business-planning
8. https://leanplan.com/lean-business-planning-process/
9. https://leankit.com/learn/lean/5-principles-of-lean
10. https://www.liveplan.com/blog/an-easier-business-model-canvas-template-the-lean-plan-template/
11. https://articles.bplans.com/do-you-need-a-business-plan-scientific-research-says-yes/
12. https://www.liveplan.com/blog/an-introduction-to-lean-planning/