Lean

Lean is centered on preserving value with less work

- Naman Kumar Totala
Points:
What is lean?
Why Lean?
How does lean work?
Who is lean applicable to?
5 principles of lean
Taiichi Ohnos 7 Wastes
7 service wastes
Lean Tools
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.


Lean is a philosophy that seeks to eliminate waste in all aspects of a firms
production activities:

human relations

vendor relations

technology

the management of materials and inventory.

Why Lean?
Some commonly mentioned goals are:
Improve quality: To stay competitive in today's marketplace, a company must
understand its customers' wants and needs and design processes to meet their
expectations and requirements.

Eliminate waste: Waste is any activity that consumes time, resources, or space but
does not add any value to the product or service.

Reduce time: Reducing the time it takes to finish an activity from start to finish is one
of the most effective ways to eliminate waste and lower costs.

Reduce total costs: To minimize cost, a company must produce only to customer
demand. Overproduction increases a companys inventory costs because of storage
needs.

How does Lean work?
Considers an end to end value stream that delivers
competitive advantage.

Seeks fast flexible flow.

Eliminates/prevents waste (Muda; Jananese Word for
Waste)
Who is Lean applicable to?
Lean is principally associated with manufacturing industries but can
be equally applicable to both service and administration processes.

Its not a new phenomenon, Japanese auto manufacturers have
been developing Lean for over 50 years.

Examples:
- Call Center services
- Information technology (IT)
- Manufacturing companies


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.
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.


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.
Lean Tools
5S
Value Stream Analysis
Cells
Standard Work
Rapid Improvement Events

5S, The Japanese Origins
Seiri i.e. Sort
This requires the classifying of items into two categories, necessary and unnecessary,
and disregarding or removing the latter.

Seiton i.e. 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 i.e. 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.

Seiketsu i.e. Systematise
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 i.e. 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.



Thank You