This document, Chapter 3, delves into Lean System and Innovation, covering key concepts like Lean System, Just-in-Time (JIT), Kaizen, 5S, Total Productive Maintenance (TPM), Six Sigma, and Business Process Reengineering (BPR). It explains waste minimisation, the principles of lean manufacturing, and various techniques to improve efficiency and quality. This chapter is particularly useful for students and professionals seeking to understand and implement modern manufacturing and business process improvement methodologies.