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Session Plan:

What is lean?
How does lean work?
Who is lean applicable to?
5 principles of lean
The Toyota Production System
Taiichi Ohnos 7 Wastes
7 service wastes
5 Ss

What is lean?
Lean manufacturing was developed by the Japanese automotive industry, with

a lead from Toyota and utilising the Toyota Production System (TPS), following
the challenge to re-build the Japanese economy after World War II.

The concept of lean thinking was introduced to the Western world in 1991 by

the book The Machine That Changed the World written by Womack, Jones,
and Roos.
Lean is a philosophy that seeks to eliminate waste in all aspects of a firms
production activities: human relations, vendor relations, technology, and the
management of materials and inventory.

How does Lean work?


Considers an end to end value stream that delivers

competitive advantage.
Seeks fast flexible flow.
Eliminates/prevents waste (Muda).

Who is Lean applicable to?


Lean is principally associated with manufacturing industries but can

be equally applicable to both service and administration processes.


Currently it is also being adopted by the Automotive manufacturing
and Processing industries.
Its not a new phenomenon, Japanese auto manufacturers have been
developing Lean for over 50 years.

5 principles of Lean
Value - specify what creates value from the customers perspective.
The value stream identify all the steps along the process chain.
Flow - make the value process flow.
Pull - make only what is needed by the customer (short term response to the

customers rate of demand).


Perfection - strive for perfection by continually attempting to produce exactly
what the customer wants.

Value
Any process that the customer would be prepared to pay for that adds

value to the product.

The customer defines the value of product in a lean supply chain.


Value-adding activities transform the product closer to what the customer
actually wants.
An activity that does not add value is considered to be waste.

The value stream


The value stream is the sequence of processes from

raw material to the customer that create value.


The value stream can include the complete supply
chain.
Value stream mapping is an integral aspect of Lean.

The Value Stream


The Value Stream is those set of tasks and
activities required to design and make a family of
products or services that are undertaken with a
group of linked functions or companies from the
point of customer specification right back to the raw
material source.
(Hines et al, 2000)

Flow
Using one piece flow by linking of all

the activities and processes into the


most efficient combinations to
maximize value-added content while
minimizing waste.
The waiting time of work in progress
between processes is eliminated,
hence adding value more quickly.

Pull
Pull = response to the customers rate of demand i.e.

the actual customer demand that drives the supply


chain.
Based on a supply chain view from downstream to
upstream activities where nothing is produced by the
upstream supplier until the downstream customer
signals a need.

Perfection
The journey of continuous

improvement.
Producing exactly what the customer
wants, exactly when, economically.
Perfection is an aspiration, anything
and everything is able to be improved.

The Cornerstone of Lean The Toyota Production System

Based on two philosophies:


1. Elimination of waste

2. Respect for people

Toyota Production Systems


Four Rules
1.

All work shall be highly specified as to content, sequence, timing,


and outcome.

2.

Every customer-supplier connection must be direct, and there


must be an unambiguous yes-or-no way to send requests and
receive responses.

3.

The pathway for every product and service must be simple and
direct.

4.

Any improvement must be made in accordance with the scientific


method, under the guidance of a teacher, at the lowest possible
level in the organization.

Taiichi Ohnos 7 Wastes (muda)


Types of waste:

overproduction
waiting time
transport
process
inventory
motion
defective goods

7 Service Wastes
Delay customers waiting for service.
Duplication having to re-enter data, repeat details etc.
Unnecessary movement - poor ergonomics in the service encounter.
Unclear communication having to seek clarification, confusion over use of

product/service.
Incorrect inventory out of stock.
Opportunity lost to retain or win customers.
Errors in the transaction, lost/damaged goods.

The 5Ss
The 5Ss are simple but effective methods to organise the workplace.
The methodology does however, go beyond this simple concept, and is

concerned with making orderly and standardized operations the norm,


rather than the exception.
Posters bearing the 5S terms can be found on the walls of Japanese
plants, and are a visual aid to organisational management.

The Japanese Origins


Seiri

Sort

This requires the classifying of items into two categories, necessary and unnecessary, and
disregarding or removing the latter.

Seiton Straighten

Once Seiri has been carried out Seiton is implemented to classify by use, and arrange items to
minimise search time and effort. The items left should have a designated area, with specified
maximum levels of inventory for that area.

Seison Shine

Seison means cleaning the working environment. It can help in the spotting of potential
problems as well as reducing the risk of fire/injury by cleaning away the potential causes of
accidents.

The Japanese Origins


Seiketsu

Seiketsu means keeping one's person clean, by such means as wearing proper
working clothes, safety glasses, gloves and shoes, as well as maintaining a clean
healthy working environment. It can also be viewed as the continuation of the work
carried out in Seiri, Seiton, and Seison.

Shitsuke

Standardize

Sustain

Shitsuke means self-discipline.

The 5 Ss may be viewed as a philosophy, with employees following established and


agreed upon rules at each step. By the time they arrive at Shitsuke they will have
developed the discipline to follow the 5 Ss in their daily work.

Summary
Lean manufacturing was developed by the Japanese.
Lean is a philosophy that seeks to eliminate waste in all aspects of a firms

production activities.
Lean is principally associated with manufacturing industries but can be also
equally applicable to both service and administration processes.
Works on 5 basic principles.
Cornerstone of Lean is the Toyota Production System.
Considers 7 Wastes (muda).
Utilises 5 S methodology.