Lean Methodology Vs. Agile

The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.

Aspect	Lean Methodology	Agile
Origins	Lean principles originated in manufacturing, particularly from Toyota’s production system (TPS).	Agile principles originated in software development, with roots in the Agile Manifesto.
Philosophy	Lean is a systematic approach that focuses on reducing waste, optimizing processes, and maximizing value delivery to customers.	Agile is a customer-centric approach that emphasizes collaboration, adaptability, and iterative development.
Focus	Lean is primarily concerned with process efficiency, waste reduction, and continuous improvement in various industries.	Agile focuses on iterative development, delivering value to customers through collaboration, and responding to change.
Principles	Lean principles include eliminating waste, optimizing flow, continuous improvement (Kaizen), and customer value.	Agile principles include customer collaboration, working software, responding to change, and individuals and interactions.
Methodology	Lean can be applied as a methodology or philosophy in various contexts, including manufacturing, services, and software development.	Agile is a specific methodology for software development, with various frameworks like Scrum, Kanban, and Extreme Programming (XP).
Iterations	Lean does not prescribe specific iterations but encourages continuous improvement and value stream mapping.	Agile uses iterations (sprints) to deliver increments of working software with regular reviews and adaptations.
Customer Focus	Lean aims to understand and meet customer needs by eliminating activities that do not add value to the customer.	Agile places a strong emphasis on customer collaboration, feedback, and delivering customer value.
Waste Reduction	Lean identifies seven types of waste (Muda) and seeks to eliminate them, including overproduction, waiting, and defects.	Agile aims to reduce waste through practices like iterative development, continuous integration, and automated testing.
Roles	Lean does not prescribe specific roles but encourages cross-functional teams and involvement at all levels of the organization.	Agile defines roles like Scrum Master, Product Owner, and Development Team to facilitate collaboration and responsibilities.
Tools	Lean uses various tools such as value stream mapping, 5S (Sort, Set in order, Shine, Standardize, Sustain), and the PDCA (Plan-Do-Check-Act) cycle.	Agile uses specific tools for project management, collaboration, and development, but the choice of tools can vary.
Change Management	Lean promotes a culture of continuous improvement and may require a cultural shift to embrace Lean principles fully.	Agile encourages adaptability and embraces change, making it well-suited for organizations open to change.
Scope	Lean can be applied to various industries and processes, including manufacturing, healthcare, and services.	Agile is primarily applied in software development but can also be used in other project-based environments.
Use Cases	Lean is suitable for organizations seeking process optimization, waste reduction, and increased efficiency in their operations.	Agile is ideal for software development projects requiring flexibility, collaboration, and delivering value in short iterations.

Table of Contents

Agile Methodology

Lean Methodology

Key Highlights

Agile and Lean Methodologies:
- Agile methodology and lean thinking are both employed not only in software development but also in various business domains.
- They prioritize customer value, waste reduction, and continuous improvement.
Agile Methodology Recap:
- Agile emerged as a response to heavyweight software development methods of the past.
- The Agile Manifesto, established in 2001, introduced principles for iterative development and continuous improvement in software development and beyond.
Lean Methodology Overview:
- Lean methodology focuses on continuous product development to fulfill customer needs.
- It draws inspiration from the Toyota Production System, which was influenced by Henry Ford’s assembly line approach.
Lean Methodology Evolution:
- Lean methodology is an extension of lean manufacturing principles, emphasizing continuous improvement and waste reduction.
- Its application has expanded beyond manufacturing to various sectors, including software development.
Shared Key Principles:
- Both Agile and Lean methodologies consider the customer as a central driver for improvement and emphasize delivering value.
- Continuous improvement is a core principle in both methodologies, fostering adaptation and evolution.

Context	Lean Methodology	Agile
Software Development	In software development, Lean focuses on reducing waste, such as unnecessary code, by streamlining processes. Teams use principles like Kanban to visualize work and continuously improve.	Agile software development emphasizes iterative development, collaboration, and customer feedback, using frameworks like Scrum or Kanban to deliver valuable software increments.
Manufacturing	In manufacturing, Lean principles aim to minimize inventory, reduce defects, and improve efficiency by using techniques like Just-In-Time (JIT) production and value stream mapping.	Agile concepts like Scrum have been adapted to manufacturing, allowing teams to adapt to changing customer demands and respond quickly to production changes.
Project Management	Lean project management focuses on delivering projects efficiently by identifying and eliminating non-value-adding activities, optimizing resource allocation, and improving project flow.	Agile project management promotes adaptive planning, frequent collaboration with stakeholders, and responding to changes during project execution using Agile frameworks.
Product Development	In product development, Lean principles help in creating products with fewer resources by eliminating waste in processes, optimizing product features, and efficiently delivering value to customers.	Agile product development relies on iterative development, continuous feedback from customers, and prioritizing features based on customer needs and market changes.
Healthcare	Lean principles in healthcare aim to reduce wait times, eliminate errors, and improve patient care by streamlining processes and ensuring resources are used efficiently.	Agile practices have been adapted in healthcare for project management and product development, fostering collaboration among healthcare professionals to deliver better patient care.
Supply Chain Management	In supply chain management, Lean principles help reduce excess inventory, minimize lead times, and optimize the flow of goods from suppliers to customers by eliminating inefficiencies.	Agile supply chain management involves adapting to changing customer demands, collaborating with suppliers, and maintaining flexibility to respond to market shifts.
Construction	In construction, Lean construction techniques focus on reducing project delays, improving communication among teams, and eliminating waste to enhance project efficiency.	Agile construction methodologies promote iterative planning, regular feedback, and adaptability to changing conditions to ensure successful project completion.
Marketing	In marketing, Lean marketing strategies aim to optimize marketing spend, reduce ineffective campaigns, and target efforts on channels and activities that generate the most value.	Agile marketing involves iterative campaign planning, frequent analysis of results, and the ability to adjust marketing strategies based on real-time data and customer feedback.
Education	Lean education principles aim to optimize classroom resources, eliminate non-value-adding activities, and improve learning outcomes by focusing on effective teaching methods.	Agile education approaches involve adapting curriculum and teaching methods to cater to individual student needs, promoting collaborative learning, and continuous improvement.
Retail	In retail, Lean retail principles target waste reduction, efficient inventory management, and optimizing store layouts to enhance the shopping experience for customers.	Agile retail strategies involve quickly responding to market trends, adjusting product offerings, and using customer feedback to drive product and service improvements.

Related Frameworks, Models, Concepts	Description	When to Apply
Lean Methodology	– A systematic approach to identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection. Lean focuses on enhancing process speed and quality by reducing waste and non-value-added activities.	– Essential in manufacturing and service industries aiming to optimize processes, reduce costs, and improve customer value.
Agile	– A methodology primarily used in software development that focuses on iterative progress through small, rapid cycles. Agile is characterized by the division of tasks into short phases of work and frequent reassessment and adaptation of plans.	– Used in project environments where requirements are expected to change frequently and a flexible, adaptive response is needed.
Scrum	– A framework within the Agile methodology used to manage complex software and product development with iterative and incremental practices. Scrum significantly increases productivity and reduces time to benefits while facilitating adaptive product development.	– Implemented in complex project environments where innovation, speed, and flexibility are critical to success.
Kanban	– A lean method to manage and improve work across human systems. This approach aims to manage work by balancing demands with available capacity and improving the handling of system-level bottlenecks.	– Applied in production and service environments where work needs to be visually managed to ensure continuous flow and on-time delivery.
Six Sigma	– A set of techniques and tools for process improvement, developed by Motorola. Six Sigma aims to improve the quality of output by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes.	– Utilized in industries where reducing errors and increasing efficiencies are crucial, such as manufacturing, finance, and healthcare.
Waterfall Model	– A sequential (non-iterative) process, often used in software development processes, where progress is seen as flowing steadily downwards (like a waterfall) through the phases of conception, initiation, analysis, design, construction, testing, deployment, and maintenance.	– Suitable for projects with well-defined requirements and where no changes are expected during the development process.
Total Quality Management (TQM)	– A management approach to long-term success through customer satisfaction, focusing on continuous improvement of products, services, and processes by integrating all functions and processes within an organization.	– Implemented across all areas of a company to embed quality assurance and continuous improvement in every product and process.
Continuous Integration/Continuous Deployment (CI/CD)	– CI/CD are practices in software development designed to improve software delivery processes; CI focuses on blending source code updates from all developers on a team into a shared mainline several times a day. CD is the automated delivery of applications to selected infrastructure environments.	– Employed in development projects that require frequent updates and a high level of automation to streamline builds, tests, and releases.
Value Stream Mapping	– A lean-management method for analyzing the current state and designing a future state for the series of events that take a product or service from its beginning through to the customer.	– Applied to identify waste, reduce process cycle times, and implement process improvement solutions in manufacturing and logistics.
DevOps	– A set of practices that combines software development (Dev) and IT operations (Ops), aiming to shorten the systems development life cycle and provide continuous delivery with high software quality.	– Critical in environments where rapid iteration, operational efficiency, and tight collaboration between development and operations are needed.