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Introduction to LeanManuacturin!
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"ne Pa!e "verview
# $%e &ur&ose o 'ean is to
remove all forms of waste
from the value stream.
# (aste inc'udes cyc'e time,
'a)or, materia's, and ener!y.
# $%e c%ie o)stac'e is t%e
act t%at waste oten %ides
in &'ain si!%t, or is )ui't into
activities.
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Contents
# +eneits o Lean Manuacturin!
# $%e "ri!ins o Lean
Manuacturin!
# (%at Is Lean Manuacturin!
# (aste, riction, or Muda
# Lean Manuacturin! and reen
Manuacturin!/ IS" 1001
# Some Lean Manuacturin!
$ec%niues
# Conc'usion
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+eneits o Lean
Manuacturin!
# Lean manuacturin!
de'ivers an insurmountable
competitive advantage over com&etitors w%o dont
use it eective'y.
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+eneits o Lean
Manuacturin!415 Lower &roduction cost
%i!%er &roits and wa!es
# Cost avoidance 'ows direct'y tot%e )ottom 'ine.
425 Su&&orts IS" 1001 and
6!reen6 manuacturin!# 7eduction o materia' waste
and associated dis&osa' costs
%i!%er &roits
4*5 S%orter cyc'e times8 make-to-order vs. make-to-stock
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+ottom Line and t%e
Lan!ua!e o Money# $%e irst com&re%ensive
im&'ementation o 'ean
manuacturin! yie'ded8# Stock a&&reciation o * &ercent
&er year, or 1 years 4not
countin! dividends5
# :.2 &ercent annua' wa!e !rowt%
# $%e ne;t section wi'' discuss
'ean manuacturin!s ori!ins.
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$%e "ri!in o LeanManuacturin!
<iscussion uestion8
(%o created t%e $oyota
Production System
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"ri!in o t%e $oyota
Production System# $aiic%i "%no said o&en'y t%at
%e !ot t%e idea rom >enry
ords )ooks and t%e ?mericansu&ermarket.
# ords My Life and Work 419225
descri)es @ust-in-time 4AI$5 and
ot%er 'ean conce&ts e;&'icit'y.
# <e&'etion o su&ermarket s%e'
stock tri!!ers re&'enis%mentB it is
a 6&u''6 system 'ike kan)an or
<rum-+uer-7o&e.
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+ottom Line 7esu'ts o
t%e $PS# $%e ord Motor Com&anys
ori!ina' stock !rew * &er
year 4not countin! dividends5and :.2 annua' wa!e !rowt%.
# $oyota recent'y su&erseded
enera' Motors as t%e wor'ds'ar!est automo)i'e com&any.
# $%e ne;t section wi'' s%ow %ow
t%e $PS de'ivers t%ese resu'ts.
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(%at is LeanManuacturin!
? systematic approach tothe identification andelimination all forms of
waste rom t%e va'uestream.
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Conce&t o riction,(aste, or Muda
Dnderstandin! o riction,waste, or muda is t%e
oundation o t%e 'ean
Manuacturin!.
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$%e irst Ste& is to
7eco!niEe t%e (aste# $%is &rinci&'e %as )een
stressed )y8
# >enry ord
# $aiic%i "%no 4$oyota
&roduction system5
# $om Peters 4Thriving On
Chaos5
# S%i!eo S%in!o
# A. . >a'&in 4Zero Defects5
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(aste "ten >ides in
P'ain Fiew# (e cannot e'iminate t%e waste
o materia', 'a)or, or ot%er
resources unti' we reco!niEe itas waste.
# ? @o) can consist o :3 &ercent
waste 4or even more5.
# C'assic e;am&'e8 )rick 'ayin!
in t%e 'ate 19t% century
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Post-i')ret% +rick
Layin!
$%e so'ution is o)vious 4in
retros&ect5, )ut irst we %ave to
know t%at we %ave a &ro)'emG
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Lessons so ar
# Waste often hides in plain
view.
# Peo&'e )ecome used to 6'ivin!
wit% it6 or 6workin! around it.6
# <einition or em&'oyees at a''
'eve's8 If it's frustrating, a
chronic annoyance, or a
chronic inefficiency, it's
friction. 4Levinson and
$um)e'ty, 199:, !C "ssentials
and !roductivity #mprovement ,
?SH Hua'ity Press5
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$PS <einitions o
(aste1. "ver&roduction
2. (aitin!, inc'udin! time in ueue
*. $rans&ortation 4)etweenworkstations, or )etween su&&'ier
and customer5
. on-va'ue-addin! activities
3. Inventory
. (aste motion
:. Cost o &oor ua'ity8 scra&,
rework, and ins&ection
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(aitin! as a orm o
(aste# " t%e tota' cyc'e time or
'ead time, %ow muc%
invo'ves va'ue-addin!work
# >ow muc% consists o
waitin!