Definition

Lean Manufacturing A way to eliminate

waste and improve efficiency in a
manufacturing environment
Lean focuses on flow, the value stream and
eliminating muda, the Japanese word for waste
Lean manufacturing is the production of goods
using less of everything compared to
traditional mass production: less waste, human
effort, manufacturing space, investment in
tools, inventory, and engineering time to
develop a new product

Lean and Just-in-Time

Lean was generated from the Just-in-time (JIT)

philosophy of continuous and forced problem
solving
Just-in-time is supplying customers with
exactly what they want when they want it
With JIT, supplies and components are pulled
through a system to arrive where they are
needed when they are needed

What is Waste?

Waste is anything
that happens to a
product that does not
add value from the
customers
perspective
Products being stored,
inspected or delayed,
products waiting in
queues, and defective
products do not add
value

Seven Wastes

Overproduction producing more than the

customer orders or producing early. Inventory of
any kind is usually waste.
Queues idle time, storage, and waiting are
wastes
Transportation moving material between plants,
between work centers, and handling more than
once is waste
Inventory unnecessary raw material, work-inprocess (WIP), finished goods, and excess
operating supplies
Motion movement of equipment or people
Overprocessing work performed on product that
adds no value
Defective product returns, warranty claims,
rework and scrap

Origins
Lean Manufacturing is
sometimes called the
Toyota Production
System (TPS)
because Toyota
Motor Companys Eiji
Toyoda and Taiichui
Ohno are given credit
for its approach and
innovations

Underlying Principles to
TPS

Work shall be completely specified as to

content, sequence, timing, and outcome
Every customer-supplier connection, both
internal and external, must be direct and
specify personnel, methods, timing, and
quantity of goods or services provided
Product and service flows must be simple and
direct goods and services are directed to a
specific person or machine
Any improvement in the system must be made
in accordance with the scientific method at
the lowest possible level in the organization

Toyota Production System

Since the Toyota Production System

requires that activities, connections, and
flow paths have built-in tests to signal
problems automatically, gaps become
immediately evident.
Results of the TPS are improvements in
reliability, flexibility, safety, and
efficiency.
These lead to increase in market share
and profitability.

Key Lean Manufacturing

Techniques
5S
Single Minute Exchange of Dies
Kanban
Cellular Manufacturing

Kanban

A system that uses replenishment

signals to simplify inventory
management

Signals (usually cards) hold product details

What to make, when to make it, how much to make, and

where to send it

Cards stay attached to a bin that holds the

product
When bin is empty, it is returned to the start of
the assembly line for replenishment
Full bins are returned to the customer, and the
cycle continues

Kanban Example
Supermarket Ordering System

Benefits of Kanban

Highly visible systems

Simple, effective, and inexpensive
Reduces inventory and eliminates
stock-outs
Improves the quality of service
Improves lead times

Lean Manufacturing
Advantages and
Disadvantages Disadvantages:

Advantages:

Increased overall
productivity
Reduced amount of
floor space required
Reduced
manufacturing lead
time
Improved flexibility
to react to changes
Improved quality

Difficulty involved with

changing processes to
implement lean
principals
Long term
commitment required
Very risky process expect supply chain
issues while changing
over to lean

People

Transition to Lean is
difficult since a
company must build a
culture where learning
and continuous
improvement are the
norm.
Success of lean
requires the full
commitment and
involvement of all
employees and of the
companys suppliers.

How People Benefit from

Lean
Element

Traditional

Lean

Improvement

Communication

Slow & Uncertain

Fast & Positive

Quality &
Coordination

Teamwork

Inhibited

Enhanced

Effective Teams

Motivation

Negative, Extrinsic

Positive, Intrinsic

Strong Motivation

Skill Range

Narrow

Broad

Job Enrichment

Supervision

Difficult and
Fragmented

Easy & Localized

Fewer Supervisors

How Customers Benefit

from Lean
Element

Traditional

Lean

Improvement

Response

Weeks

Hours

70-90%

Customization

Difficult

Easy

Competitive
Advantage

Delivery Speed

Weeks-Months

Days

70-90%

Delivery
Reliability

Erratic

Consistent & High

Up to 90%

Delivery
Quantities

Large Shipments

JIT as Required

Locks in JIT
Customers

Quality

Erratic

Consistent & High

Delighted
Customers

Economics

Reduction of Inventory

Reduced Waste

Decreased Production Cost

Increased market share

Less space necessary to hold inventory

Able to provide what the customer wants quickly

Increased competitive advantage

Faster response to the customer

Lower Cost
Higher Quality