INTRODUCTION

What is lean?
How does lean work?
Who is lean applicable to?
5 principles of lean
The Toyota Production System
Taiichi Ohnsos 7 Wastes
7 service wastes
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).
Extends the Toyota Production
System (TPS).
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
food manufacturing and meat processing
sectors.
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.
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.
DOWNSIZING
Manpower reductions One of the major
benefits of lean is getting more done with less
people. With standardized work and increased
efficiencies, the ability to do the job with less
people becomes a very real possibility. This
does not mean you have to send these people
to the unemployment line. The concept of
lean would have these freed-up people
utilized to perform further kaizen activity,
training to enhance skill level, or maintenance
of the system once it is implemented.
Initial Labour Increase
You will require additional resources to
implement lean. The number you require will
depend on how quickly you want to
implement and which areas you are focusing
on. Initially you can bring in temporary
workers to free up some of your full time folks
to implement the system. Ultimately, your
lean implementation will result in freed-up
labour. These people can be utilized to carry
on the implementation of lean as well as the
upkeep later on.
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.
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).