Sustainable Growth:

Efficiency Improvement

Lean Production

Doing More With Less

By Vadim Kotelnikov, Founder, Ten3 BUSINESS e-COACH - Innovation Unlimited, 1000ventures.com

 Yes!  You are in the right place!

This site is Ranked #1 by Google for

"Lean Production"

out of about 4-million-wide (!!!) competition!

"A good solution can be successfully applied to almost any problem."

– Big Al's Law

lean production, lean manufacturing, Kaizen, lean production, lean manufacturing, Kaizen, lean production, lean manufacturing, Kaizen, lean production, lean manufacturing, Kaizen

Lean Production Lean Production / Lean Manufacturing - Doing More With Less

The Seven Wastes To Be Eliminated

  1. Overpoduction and early production – producing over customer requirements, producing unnecessary materials / products

  2. Waiting – time delays, idle time (time during which value is not added to the product)

  3. Transportation – multiple handling, delay in materials handling, unnecessary handling

  4. Inventory – holding or purchasing unnecessary raw materials, work in process, and finished goods

  5. Motion – actions of people or equipment that do not add value to the product

  6. Over-processing – unnecessary steps or work elements / procedures (non added value work)

  7. Defective units – production of a part that is scrapped or requires rework.

Just-in-Time (JIT) Seven Wastes Lean Manufacturing (or Lean Production) Toyota Production System (case study) Continuous Improvement Firm (CIF) Case Studies Toyota Production System (TPS) - Lean Production / Lean Manufacturing

7 Principles of Toyota Production System (TPS)

  1. Reduced Setup Times

  2. Small-Lot Production

  3. Employee Involvement and Empowerment

  4. Quality at the Source

  5. Equipment Maintenance

  6. Pull Production

  7. Supplier Involvement... More

Lean Production Just-in-Time Outsourcing e-Business e-Business Total Quality Management Value Chain Ten3 Business e-Coach: why, what, and how 1000ventures.com Supply Chain Lean Production LEAN PRODUCTION / LEAN MANUFACTURING - Components of a Lean Production System

Key Features of Lean Production

compared to Traditional Mass Production

  • Reduced Setup Cost and Times (for semi-versatile machinery such as big stamping presses) from months to hours thus making small-lot production economically viable; achieved by organizing procedures, using carts, and training workers to do their own setups,

  • Small-Lot Production allowing higher flexibility and pull production (or just-in-time manufacturing)

  • Employee Involvement and Empowerment organizing workers by forming teams and giving them training and responsibility to do many specialized tasks, for housekeeping, quality inspection, minor equipment repair and rework; allowing also them time to meet to discuss problems and find ways to improve the process

  • Quality at the Source total quality management (TQM) and control; assigning workers, not inspectors, the responsibility to discover a defect and to immediately fix it; if the defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called jidoka)

  • Pull Production, or Just-In-Time (JIT) the method wherein the quantity of work performed at each stage of the process is dictated solely by the demand for materials from the immediate next stage; thus reducing waste and lead times, and eliminating inventory holding costs

  • Continuous Equipment Maintenance as pull production reduces inventories, equipment breakdowns must also be reduced; thus empowered operators are assigned primary responsibility for basic maintenance since they are in the best position do detect signs of malfunction

  • Multi- Skilled Workforce as employees are empowered to do many jobs, they must be provided with adequate training

  • Supplier Involvement the manufacturer treats its supplier as a long-term partners; they often must be trained in ways to reduce setup times, inventories, defects, machine breakdowns, etc. in order to enable them to take responsibility for delivering the best possible parts/services to the manufacturer in a timely manner.

Strategy of Lean Production

Lean System Components and Best Practices

  1. Cultural awareness

  2. Workplace organization - 5S (sort - straighten - sweep - standardize - self-discipline) & visual control

  3. Standardized work

  4. Flexible operations

  5. Employee empowerment and continuous improvement (see also Kaizen)

  6. Quick changeover capability

  7. Total quality management & total productivity maintenance

  8. Error proofing

  9. Material control

  10. Level production

 

Traditional

Manufacturing

Lean

Manufacturing

Scheduling

Forecast - push

Customer Order - pull

Production

Stock

Customer Order

Lead Time

Long

Short

Batch Size

Large - Batch & Queue

Small - Continuous Flow

Inspection

Sampling - by inspectors

100% - at source by workers

Layout

Functional

Product Flow

Empowerment

Low

High

Inventory Turns

Low - <7 turns

High - 10+

Flexibility

Low

High

COGS

High and Rising

Lower and Decreasing

 Discover much more!

Lean Production

7 Principles of Toyota Production System (TPS)

5 Elements of Enabling a Lean Approach

Glossary Kaizen & Lean Production key definitions and concepts

Efficiency Improvement

10 Commandments of Improvement

Kaizen Mindset

Quick and Easy Kaizen

Japanese-style Suggestion System

9 Waste Categories and 6 Guidelines of the Canon's Suggestion System

Five Ss at Canon

Quality Management

Deming's 14 Point Plan for Total Quality Management (TQM)

Lean Production Case Studies

Toyota Production System (TPS)

Rojee Tasha Stampings Ltd. (India)

Gold Seal Engineering Products Ltd. (India)

Thara Engineering (India)

Three Small- and Medium-sized Firms (USA)

Business Processes

Using Best Practice: The Trotter Scorecard

8 Essential Principles of Enterprise-wide Business Process Management (EBPM)

Ten3 Global Business Learning Report

Business Processes

Free Ten3 Micro-courses

Kaizen and Lean Manufacturing

  Ten3 Mini-Courses   Presentation:    View    Download

Synergizing Business Processes  (60 slides)

Synergizing Value Chain  (200 slides)

Smart Business Architect  (150 slides)

What is Lean Production?

Lean is about doing more with less: less time, inventory, space, labor, and money. "Lean manufacturing", a shorthand for a commitment to eliminating waste, simplifying procedures and speeding up production.

Lean Manufacturing (also known as the Toyota Production System) is, in its most basic form, the systematic elimination of waste – overproduction, waiting, transportation, inventory, motion, over-processing, defective units –  and the implementation of the concepts of continuous flow and customer pull.

 

Five areas drive lean manufacturing/production:

  1. cost

  2. quality

  3. delivery

  4. safety, and

  5. morale.

Just as mass production is recognized as the production system of the 20th century, lean production is viewed as the production system of the 21st century.

Kaizen and Lean Manufacturing

Kaizen is the heart of the Toyota Production System. Toyota states: "...based on the concept of continuous improvement, or Kaizen, every Toyota team member is empowered with the ability to improve their work environment. This includes everything from quality and safety to the environment and productivity. Improvements and suggestions by team members are the cornerstone of Toyota's success."... More

Kaizen Mindset

  • Not a single day should go by without some kind of improvement being made somewhere in the company... More

Quick and Easy Kaizen

Quick and Easy Kaizen helps eliminate or reduce wastes, promotes personal growth of employees and the company, provides guidance for employees, and serves as a barometer of leadership. Each kaizen may be small, but the cumulative effect is tremendous.

The quick and easy kaizen process works as follows:

  1. The employee notices a problem or an opportunity for improvement... More

 Case in Point  Canon

Eliminating 9 Wastes

The objectives of Canon Production System (CPS) are to manufacture better quality products at lower cost and deliver them faster.

Canon invited all their employees to suggest ideas for improvement and developed 6 Guidelines for the Suggestion System to make it most effective.  The company developed also a list of 9 wastes to help their employees become problem-conscious, move from operational improvement to systems improvement, and recognize the need for self-development... More

Five Ss at Canon

Canon has an ongoing workplace improvement program called the Five Ss. The Five Ss refer to the five dimensions of of workplace optimization: Seiri (Sort), Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain)... More

Lean Production Overview

  • Non-value added activities or waste are eliminated through continuous improvement efforts

  • Focus on continuous improvement of processes - rather than results - of the entire value chain

  • The lean manufacturing mindset: concept, way of thinking - not techniques; culture - not the latest management tool

  • Continuous product flow is achieved through physical rearrangement and system structure & control mechanisms

  • Single-piece flow / small lot production: achieved through equipment set up time reduction; attention to machine maintenance; and orderly, clean work place

  • Pull reduction / Just-in-time inventory control

Basic Elements of Lean Manufacturing

The basic elements are waste elimination, continuous one piece workflow, and customer pull. When these elements are focused in the areas of cost, quality and delivery, this forms the basis for a lean production system.

The lean production concept was to a large extent inspired by the Kaizen - the Japanese strategy of continuous improvement. Employee empowerment and promotion among them of a way of thinking oriented at improving processes, imitation of customer relationships, fast product development and manufacturing, and collaboration with suppliers are the key strategies of leading lean companies.

  Lean Manufacturing Overview

254 slides by Superfactory

Lean Manufacturing - 5S - Visual Controls - Kaizen - Value Streams - Pull - Mistake Proofing - Quick Changeover - Six Sigma - Theory of Constraints

US$80 ►  See sample slides ►  BUY NOW!

Benefits of Lean Production

Establishment and mastering of a lean production system would allow you to achieve the following benefits:

  • Waste reduction by 80%

  • Production cost reduction by 50%

  • Manufacturing cycle times decreased by 50%

  • Labor reduction by 50% while maintaining or increasing throughput

  • Inventory reduction by 80% while increasing customer service levels

  • Capacity in current facilities increase by 50%

  • Higher quality

  • Higher profits

  • Higher system flexibility in reacting to changes in requirements improved

  • More strategic focus

  • Improved cash flow through increasing shipping and billing frequencies

However, by continually focusing on waste reduction, there are truly no end to the benefits that can be achieved.

The Five Elements of Enabling a Lean Approach

  1. Specify Value

  2. Identify and Map the Value Stream

  3. Flows

  4. Pull

  5. Perfection... More

Characteristics

  • Integrated single piece continuous workflow

  • Close integration of the whole value chain from raw material to finished product through partnership oriented relations with suppliers and distributors.

  • Just-in-time processing: a part moves to a production operation, is processed immediately, and moves immediately to the next operation

  • Short order-to-ship cycles times; small batch production capability that is synchronized to shipping schedules

  • Production is based on orders rather than forecasts; production planning is driven by customer demand or "pull" and not to suit machine loading or inflexible work flows on the shop floor.

  • Minimal inventories at each stage of the production process

     
  • Quick changeovers of machines and equipment allow different products to be produced with one-piece flow in small batches

  • Layout is based on product flow

  • Total quality control. Active involvement by workers in trouble shooting and problem solving to improve quality and eliminate wastes.

  • Defect prevention rather than inspection and rework by building quality in the process and implementing real time quality feedback procedures.

  • Team based work organizations with multi skilled operators empowered to make decisions and improve operations with few indirect staff.

Applications

Lean techniques are applicable not only in manufacturing, but also in service-oriented industry and service environment. Every system contains waste, i.e. something that does not provide value to your customer. Whether you are producing a product, processing a material, or providing a service, there are elements which are considered 'waste'. The techniques for analyzing systems, identifying and reducing waste, and focusing on the customer are applicable in any system, and in any industry.

Lean thinking may also be applied for getting rid of bureaucracy in your home office. To run your home office more effectively and faster you may need just as little as 10% of its current staff. Only executives who have a direct involvement with finding, keeping, or growing customers as well as key support staff - accountants, tax, legal and human resources people - should stay. Others can be rehabilitated by sending to an operating unit.

Three Stages of the Suggestion System

1. Encouragement. In the first stage, management should make every effort to help the workers provide suggestions, no matter how primitive, for the betterment of the worker's job and the workshop. This will help the workers look at the way they are doing their jobs... More

 Case in Point  14 TQM Slogans at Pentel

Pentel is a Japanese firm manufacturing stationary products. The following is a list of 14 Pentel's slogans for explaining Total Quality Management (TQM) and Quick and Easy Kaizen philosophy to its employees.

  • Be problem-conscious at all times... More

8 Best Practices of Successful Companies

  • Manage inventory in superior fashion... More

 Case in Point  IBM

IBM regularly compare part counts, bills of materials, standard versus custom part usage, and estimated processing costs by tearing down competitor products as soon as the latter are available. "Through such tear-downs during the heyday of the dot matrix printer, IBM learned that the printer made by the Epson, its initial supplier, was exceedingly complicated with more than 150 parts. IBM launched a team with a simplification goal and knocked the part count down to 62, cutting assembly from thirty minutes to only three."1

TPS-Lean Six Sigma

TPS-Lean Six Sigma is like a ‘turbo-charged’ Lean Six Sigma program.

TPS-Lean Six Sigma is a revolutionary, holistic concept. It actively has human capital embedded in Lean Six Sigma in a manner that not only stimulates commitment, integrity, work-life balance, passion, enjoyment at work and employee engagement but also stimulates individual and team learning in order to develop a motivated workforce and sustainable performance improvement and quality enhancement for the organization... More

Focusing on Main Principles As The Key To Success

 

"In the U.S., becoming Lean appears to have gone down a path of implementing tools such as “one piece flow”, “value stream mapping”, “standardized work”, or “kaizen events”, but results have not always followed. Toyota, by way of contrast, has stayed focused on its principles and a disciplined emphasis on process improvement to obtain results such as “making a profit”, “reducing lead-time”, “improving productivity”, “achieving built in quality”, as well as “respecting human dignity of employees” etc. The difference may sound trivial, but it is actually significant. In fact, it is likely the main reason why Toyota has continued to see success on so many dimensions, where others struggle." (Art Smalley4)

 

    

References:

  1. Relentless Growth, Christopher Meyer

  2. Competitive Manufacturing Management, John M. Nicholas

  3. The Lean Journey, White Paper by Oracle Corporation

  4. TPS vs. Lean and the Law of Unintended Consequences, Art Smalley, President, Art of Lean, Inc.

  5. Lean Manufacturing That Works, Bill Carreira

  6. Toyota Production System, Taiichi Ohno

  7. The Toyota Way, Jeffrey Liker

  8. Kanban Just-In-Time at Toyota, Japan Management Association

  9. Lean Production Simplified, Pascal Dennis, John Shook

  10. The Lean Manufacturing Pocket Handbook, Kenneth W. Dailey

  11. Lean Six Sigma : Combining Six Sigma Quality with Lean Production Speed, Michael L. George

What Lean Means

(DVD by the Association of Manufacturing Excellence)

Explains the concept of lean through the experience of the Freudenberg-NOK plant in La Grange, GA. The experience of this plant is presented as a snapshot of two decades of American thinking on Lean Manufacturing. As in all AME video offerings, the story is told by the people involved, from management to front-line associates.

 US$60    Buy now!

 

 

Map

Ranked #1

Search

Testimonials

Free Downloads

  Products

SMART Learning

Training

 Contact

We invented Business e-Coaching in 2001

Today, we have customers in 100+ countries!

Our customers:

3M, ABB, Adidas, Alcatel, American Express, Bayer, Boeing, British American Tobacco, BP, Canon, Cisco, Citigroup, Colgate, Corning, Deloitte, Ernst & Young, Fujitsu-Siemens, GE, Goldman Sachs, HP, Hitachi, Huyndai, IBM, Intel, Johnson & Johnson, JP Morgan Chase, KPMG, Lufthansa, Microsoft, Motorola, Nokia, Oracle, Samsung, Shell, Siemens, Sony, United Bank of Switzerland

Ten3 Mini-courses: SMART & FAST sets Full version of Ten3 Business e-Coach Ten3 Business e-Coach (home page)

Ten3 Business e-Coach, version 2008

Inventor, Author & Founder – Vadim Kotelnikov

© Vadim Kotelnikov, GIVIS