Lean Thinking

Approaches that focus on the elimination of waste in all forms, and smooth, efficient flow of
materials and information throughout the value chain
-To obtain faster customer response, higher quality, and lower costs
Lean operating systems:
: Manufacturing and service operations that apply the principles of lean enterprise
Lean concepts were initially developed and implemented by the Toyota Motor Corporation.
Principles of Lean Operating Systems: Eliminate waste
Eliminate any activities that do not add value in an organization. Includes overproduction,
waiting time, transportation, processing, inventory.
Principles of Lean Operating Systems: Increase speed and response
Better process designs allow efficient responses to customers' needs and the competitive
environment
Principles of Lean Operating Systems: Improve quality
Poor quality reduces yields, requiring extra inventory, processing time, and space for scrap and
rework
Principles of Lean Operating Systems: Reduce cost
Simplifying processes and improving efficiency translates to reduced costs.
5Ss: Seiri (sort)
Each item is in the proper place
5Ss: Seiton (set in order)
Arrange materials so that they are easy to find and use
5Ss: Seiso (shine)
Clean work area
5Ss: Seiketsu (standardize)
Formalize procedures and practices
5Ss: Shitsuke (sustain)
Keep the process going
Visual Controls
Indicators for operating activities that are placed in plain sight of all employees
So that, everyone can quickly and easily understand the status and performance of the work
system
Known as andon, from the Japanese term.

Examples: electronic scoreboards in production processes, painted areas on the floor where
certain boxes and pallets should be placed, employee pull cords to stop production, signal lights
on machines, and even Kanban cards.
Single Minute Exchange of Dies (SMED)
-Quick setup or changeover of tooling and fixtures in processes
*So that multiple products in smaller batches can be run on the same equipment
-Reducing setup time frees up capacity that can be producing output, and therefore, generating
revenue

Example: Yammar Diesel reduced a machine setup from 9.3 hours to 9 minutes!
Batching:
Process of producing large quantities of items as a group before being transferred to the next
operation. However this often builds up inventory that might not match market demand,
particularly in highly dynamic markets
Single-piece flow:
-Concept of ideally using batch sizes of one
*To utilize single-piece flow, a company must be able to change between products quickly and
inexpensively by reducing setup times.
Quality and Continuous Improvement:
-Quality at the source requires doing it right the first time
*Eliminates the opportunities for waste
-As an organization continuously improves its processes, it eliminates rework and waste
*Makes the processes leaner
Total Productive Maintenance (TPM)
Focused on ensuring that operating systems will perform their intended function reliably.
Total Productive Maintenance (TPM): Goals
-Maximize equipment effectiveness and eliminate unplanned downtime
-Create worker ownership of equipment by involving them in maintenance activities.
-Improve equipment operation through employee involvement activities
Lean Six Sigma:
Lean tools focus on streamlining processes, while Six Sigma tools focus on root causes of
problems
Draws upon the best practices of both approaches.
Learn Six Sigma cont.
-Important part of implementing a strategy built upon sustainability
-Lean Six Sigma draws upon the best practices of both approaches.
-Often Lean Six Sigma is an important part of implementing a strategy built upon sustainability.
Lean production:
1. Focused on efficiency by reducing wasteland improving process flow
2. Tools are intuitive and easy to apply
3. Companies start with lean principles
(addresses visible problems in processes like inventory, material flow, and safety
Six Sigma:
1. Focused on effectiveness
2. Tools require advanced training
3. Companies evolve toward sophisticated Six Sigma approaches
Just-in-Time Systems:
Introduced at Toyota a half-century ago.
Push system:
Produces finished goods inventory in advance of customer demand using a forecast of sales.

*Parts and subassemblies are pushed through the operating system based on a predefined
schedule that is independent of actual customer demand
*Have long setup times and large batch sizes, resulting in high WIP inventories
Pull system:
Employees at a given operation go to the source of the required parts, and withdraw the units
as they need them.

-By pulling parts from each preceding workstation, the entire manufacturing process is
synchronized to the final-assembly schedule
-Finished goods are made to coincide with the actual rate of customer demand
**Results in minimal inventories and maximum responsiveness.
Based on pull-production
Synchronizing the entire manufacturing process to the final assembly schedule.
-Results in smaller inventory between production stages, lower costs, and less physical capacity
requirements
Kanban
Flag or a piece of paper that contains all relevant information for an order;
-Part number
-Description
-Process area used
-Time of delivery
-Quantity available
-Quantity delivered
-Production quantity

*Circulated within the system to initiate withdrawal and production items through the
production process
*Simple visual controls.
JIT in Service Organizations:
Service organizations are increasingly applying JIT.
-Firms have reduced order cycle time, office space requirements, and inventory investments,
and have increased profits
-Lean techniques can be detrimental to customer services that are based on human
interactions
Lean quiz questions
-Push system can easily... adjust to forest is more appropriate to costs, works best with variable
sales patterns (3 is pull one is push)
...
total productice mantianence apptempts to do all expect
-foster continuous improvement efforts
- maziize equipment effectiveness
-create worker ownership
-enable multiple. products in small batches in small equipment
...
principle of lean op systems:
which one is not part of it?
1. increase speed and response
2. eliminate waste.
3. reduce workforce
4. reduce cost.