LEAN

Unit IV
Introduction to Lean

Lean is defined as a collection of practices that work together synergistically to create a high

In today’s competitive environment, we are challenged to do more with fewer resources. One of
the best ways to increase effectiveness and efficiency is to adopt Lean Management techniques.
All types of business — manufacturing, service, for-profit, not-for-profit, education and health
— can benefit from the Lean approach. The manufacturing industry has been implementing the
Lean approach for many years. However there are still organisations that have a long way to go
to become leaner. This tool provides ways to help organisations identify and reduce waste in
their processes and procedures and ultimately enhance the value of the organisation.
Lean is defined a collection of practices that work together synergistically to create high quality,
streamline system that produces finished products at the rate of customer demand with little
waste.

In many companies the production capability is the key to competitiveness. Winners often
differentiate with regard to quality, price, time and response to change. These areas are included
in four manufacturing strategies of traditional manufactures:

 Making things better: focus on quality through a computer-aided design. The similarities
with Lean are the focus on the statistical process control, defect reduction programs and
vendor quality programs.
 Making things cheaper: reduce costs by job enlargement programs, automation and
robotics.
 Making things faster: focus on robotics and flexible manufacturing systems. Lean
companies are also empathizing on the continuous reduction of lead times and setup
times.
 Being more agile: Companies have to be able to introduce new products and response
quickly to a changing environment.

What is lean? Lean is defined as a set of management practices to improve efficiency and
effectiveness by eliminating waste. The core principle of lean is to reduce and eliminate non-
value adding activities and waste. Lean thinking always starts with the customer.

What is the lean concept? One of the more interesting trends to affect profitability as well as
the way in which companies address overall efficiency is the concept of “Lean.”

Lean is based on two main philosophies: 1. Only do what the customer values, and

2. Relentless identification and elimination of waste.

Lean manufacturing, or lean production, is a system of techniques and activities for running a
manufacturing or service operation. The techniques and activities differ according to the
application at hand but they have the same underlying principle: the elimination of all non-value-
adding activities and waste from the business.

What is “Waste” in Lean Manufacturing? Waste in lean manufacturing is defined as any kind
of action or process that doesn’t provide value to the customer.

More importantly, waste in a manufacturing process is any unwanted step or process that doesn’t
benefit the customer, resulting in them not paying for the product.

What are the 8 wastes of Lean Production?

The eight wastes of Lean production are precisely the same as TIMWOOD. The only difference
is the additional eighth waste known as the non-utilized talent or skill.

Non-utilized talent is the wasted human potential, whether it be skillset, experience, or

knowledge.

benefits of the lean philosophy

One of the more interesting trends to affect profitability as well as the way in which companies
address overall efficiency is the concept of “Lean.”

Lean is based on two main philosophies:

1. Only do what the customer values, and
2. Relentless identification and elimination of waste.
When Lean is successfully implemented through effective planning and implementation the
following will occur:
• Reduce lead time
• Reduce work in process
• Improve quality
• Improve flexibility
• Reduce transactions
• Simplify scheduling
• Enhance communications
• Reduce costs
• Improve on-time deliveries
• Increase sales
• Improve space utilization

Lean production is management that focuses the organization on continuously identifying and
removing sources of waste so that processes are continuously improved. Also total Quality
management is focusing on continuous attention to products and process improvements, but it
emphasizes on knowing the needs and wants of customers and on building capabilities to fulfill
those needs and wants.

There are two features which distinguish lean organizations from other organizations who are
seeking to identify and eliminate obstructions. First, lean organizations greatly increase the
number of people involved in identifying and eliminating obstructions. Everyone in the
organizations is busy trying to diagnose and solve problems. The second difference is in the
process employed to identify and prioritize problems and sources of waste. The primary focus is
on reduction of inventory.

The subjects which will be covered are:

 Reduced setup times

 Small lot production and one-piece flow
 Employee involvement and empowerment
 Quality at the source
 Equipment maintenance
 Pull production
 Standard work

Fundamentals of Continuous Improvement

Continuous improvement is measured in terms of producing things better, faster, cheaper and
being more agile. To improve products it is necessary to go beyond the products and services and
to improve the materials and basic processes. Therefore continuous improvement is the same as
continuous process improvement. To accomplish continuous improvement, the organization has
to be able to identify the portions of the system that contribute most to increasing product quality
and meeting customer requirements. This is necessary since processes and products can’t be
improved without limits.

What Is Lean Manufacturing?

Sometimes called “lean production,” lean manufacturing is a series of methods designed to

minimize the waste of material and labor while maintaining or increasing levels of production.
This results in a net improvement in total productivity.

Lean manufacturing’s roots lie in Japanese manufacturing with the Toyota Production System.
Lean principles pioneered by Toyota include “just-in-time” manufacturing, where inventory is
kept at low “as-needed” levels; automation supervised by human workers to maintain quality
control (known as jidoka); minimization of downtime and transportation, and others.

Ultimately, lean manufacuring is about eliminating that which does not add value, and delivering
the best possible product to the customer as quickly and with as few barriers as possible.
Lean production is an approach to management that focuses on cutting out waste, whilst ensuring
quality. This approach can be applied to all aspects of a business – from design, through
production to distribution.

Lean production aims to cut costs by making the business more efficient and responsive to
market needs. This approach sets out to cut out or minimise activities that do not add value to the
production process, such as holding of stock, repairing faulty product and unnecessary
movement of people and product around the business.

Lean production originated in the manufacturing plants of Japan, but has now been adopted well
beyond large and sophisticated manufacturing activities.

The lean approach to managing operations is really about:

 Doing the simple things well

 Doing things better
 Involving employees in the continuous process of improvement
 …and as a result, avoiding waste
 The concept of lean production is an incredibly powerful one for any business that wants
to become and/or remain competitive.

 Why? Because waste = cost

 Less waste therefore means lower costs, which is an essential part of any business being
competitive.

 Over-production: making more than is needed – leads to excess stocks

 Waiting time: equipment and people standing idle waiting for a production process to be
completed or resources to arrive
 Transport: moving resources (people, materials) around unnecessarily
 Stocks: often held as an acceptable buffer, but should not be excessive
 Motion: a worker who appears busy but is not actually adding any value
 Defects: output that does not reach the required quality standard – often a significant cost
to an uncompetitive business

 www.artoflean.com

 3. Waiting
 Time is a limited resource. In the manufacturing world, time is money. Customer
requirements
 are calculated to the second. Any waiting due to breakdowns, changeovers, delays, poor
layout
 or work sequence needs to be eliminated. Thorough preventative maintenance and rapid
 changeovers are essential to global competitiveness. Reducing cycle time by eliminating
waiting
 within the work sequence can also have a profound effect on productivity.

  4. Conveyance
 Inefficient layouts and facility design results in conveying parts, materials and people
more than
 is necessary. Material should progress from one cell or position to the next as quickly as
possible
 without stopping at any intermediate storage place. Shipping areas should be close to the
end of
 the process. Work teams and support units should be located close together.

 5. Processing
 Over processing is as wasteful as insufficient processing. A team member, for example, is
 wasting time and energy if he or she trims 1 mm of flash from a class C area of a PVC
window
 when 6 mm of flash is acceptable. Likewise, a process set to polish a prism for 5.5
minutes when
 only 4.5 minutes is needed to achieve the required prism finish is wasteful activity.
Employees
 must learn to identify over processing waste, and perform the appropriate amount of
processing
 on parts without spending more time or effort than is necessary.

 6. Inventory
 Preventing unnecessary inventory is critical to the success of the Toyota Production
System. The
 smooth, continuous flow of work through each process ensures that excess amounts of
inventory
 are minimized. If work-in-process develops because of unequal capabilities within the
process,
 efforts need to be made to balance the flow of work through the system.

 Inventory ties up assets such as cash and real estate. Inventory often requires additional
handling
 which requires additional labor and equipment.

 7. Motion
 Wasted motion occupies time and energy. Ideally all unnecessary movements or actions
are
 eliminated from the work process. Much of this wasted motion is often overlooked
because it has
 become such a part of the process. Work processes should be designed so that items are
 positioned close to each other. Unnecessary amounts of turning, lifting and reaching are
 eliminated. The same improvements that eliminate wasted motion often have ergonomic
benefits
 as well

Customers Focus
Today, there is even more pressure for manufacturers to meet customer demand. Or, perhaps
more appropriately, customer expectations are becoming more complex and demanding, which is
increasing pressure on manufacturers.

Lean is defined as a collection of practices that work together synergistically to create a high
quality, streamlined system that produces finished products at the rate of customer demand
with little waste.

Practices commonly associated with Lean include the capability to create flow including set-up
time reduction and pull, quality control and human resource development, ultimately to improve
firm performance due to process improvement performance and customer-focused performance,
i.e. the extent to which an organisation effectively meets its customer.

Indeed, Lean is a practical approach to improve processes by identifying and eliminating non-
value-adding activities from a customer perspective resulting in higher customer-focused
performance such as quick response to customer inquiries, speed of complaint handling and
customer satisfaction through the improvement of business processes, though this has never been
empirically validated. ‘Value adding’ activity is anything that changes the size, shape, fit, form
or function of material or information to meet customer requirements.

 Handbook 11
 Art of Lean, Inc.
 www.artoflean.com

 3. Waiting
 Time is a limited resource. In the manufacturing world, time is money. Customer
requirements
 are calculated to the second. Any waiting due to breakdowns, changeovers, delays, poor
layout
 or work sequence needs to be eliminated. Thorough preventative maintenance and rapid
 changeovers are essential to global competitiveness. Reducing cycle time by eliminating
waiting
 within the work sequence can also have a profound effect on productivity.

 4. Conveyance
 Inefficient layouts and facility design results in conveying parts, materials and people
more than
 is necessary. Material should progress from one cell or position to the next as quickly as
possible
 without stopping at any intermediate storage place. Shipping areas should be close to the
end of
 the process. Work teams and support units should be located close together.

 5. Processing
 Over processing is as wasteful as insufficient processing. A team member, for example, is
  wasting time and energy if he or she trims 1 mm of flash from a class C area of a PVC
window
 when 6 mm of flash is acceptable. Likewise, a process set to polish a prism for 5.5
minutes when
 only 4.5 minutes is needed to achieve the required prism finish is wasteful activity.
Employees
 must learn to identify over processing waste, and perform the appropriate amount of
processing
 on parts without spending more time or effort than is necessary.

 6. Inventory
 Preventing unnecessary inventory is critical to the success of the Toyota Production
System. The
 smooth, continuous flow of work through each process ensures that excess amounts of
inventory
 are minimized. If work-in-process develops because of unequal capabilities within the
process,
 efforts need to be made to balance the flow of work through the system.

 Inventory ties up assets such as cash and real estate. Inventory often requires additional
handling
 which requires additional labor and equipment.

 7. Motion
 Wasted motion occupies time and energy. Ideally all unnecessary movements or actions
are
 eliminated from the work process. Much of this wasted motion is often overlooked
because it has
 become such a part of the process. Work processes should be designed so that items are
 positioned close to each other. Unnecessary amounts of turning, lifting and reaching are
 eliminated. The same improvements that eliminate wasted motion often have ergonomic
benefits
 as well

Since the customer is the only reason you have a job, if you are not willing to satisfy the
customer…then you might as well go home; you are not needed. Remember that perception is
reality with customer service. If your customers don’t see your organization as one that engages
in customer-focused behavior, then you are not providing exceptional customer service. Treating
your customers as valued individuals is often more important than price.

Focus on the customer means all systems and processes require continuous improvement. These
businesses think about what they can do to make customers happy (as opposed to get the most
money out of them, signup the most accounts, etc.) all the time and think about how they can
make the customer experience better.

In a customer focused organization, Leadership, Processes and People are customer-aligned. This
requires that:
Every action is shaped by a relentless commitment to meeting and exceeding customer
expectations regarding product and service quality.
 Customer touch points and supporting internal processes are constantly evaluated and
improved to meet or exceed those expectations.
 Every employee understands what he/she must do in order to maintain and add value to
every relationship with both the paying customer and those within the organization that
rely on them for the work they do.

Customer focus and service excellence is everyone’s responsibility, not just those that have
direct contact with them. Organizations that are recognized as exceptional providers of customer
service are the ones that have incorporated these customer-focused behaviors into their daily
operations.

Customer Focus and Continuous Improvement

Lean organizations develop a focus on customer value. In an effort to reduce costs to end
customers, businesses using lean manufacturing principles will strive to eliminate defects to
reduce the added cost of reworking parts and components. The first step in adopting a lean
manufacturing system is to create a customer-focused environment. In addition to a focus on the
customer, lean manufacturing stresses continuous improvement, which is a system of small
incremental changes to improve efficiency and eliminate waste. Some businesses use quality
circles or quality improvement teams to identify, resolve and eliminate waste in the company.

Waste Identification
To eliminate waste, such as quality defects, it is necessary to identify it. One of the tools a lean
manufacturing business may use is value stream mapping. Value stream mapping creates a visual
image of how materials and information flow through the organization from the time a customer
places an order until the shipping department ships it out the door. The mapping process
highlights inefficiencies in the production flow and provides opportunities for continuous
improvement projects. The identification of waste affects the quality of a product by showing
where the defects occur in the process.
Root Cause Analysis
Once a quality team identifies a defect or inefficiency, members can begin working on a root
cause analysis. While some businesses implement inspection processes to remove defective
material from production, lean organizations conduct a root cause analysis to resolve the problem
and stop the defects from ever occurring. Root cause analysis traces the cause of a defect back to
its origin. Causes may include machinery failure, human error, raw material defects or a problem
with the work process. Lean manufacturing principles include a zero defect policy that
encourages workers to create error-free products.
Implement a Solution
When a business has a clearly defined problem and the root cause has been identified, the next
step is to implement a solution. Using a team approach to solving the problem allows businesses
to extract input from workers in all areas of the manufacturing process. Teams may implement a
solution and collect data to ensure the problem is resolved.
Lean Principles
Lean was originally created by Toyota to eliminate waste and inefficiency in its manufacturing
operations. The process became so successful that it has been embraced in manufacturing sectors
around the world. For an American company, being lean is critical for competing against lower-
cost countries.
The goal of lean is to eliminate waste—the non-value-added components in any process. Unless
a process has gone through lean multiple times, it contains some element of waste. When done
correctly, lean can create huge improvements in efficiency, cycle time, productivity, material
costs, and scrap, leading to lower costs and improved competitiveness.

Lean was born out of manufacturing practices but in recent time has transformed the world of
knowledge work and management. It encourages the practice of continuous improvement and is
based on the fundamental idea of respect for people. Womack and Jones defined the five
principles of Lean manufacturing in their book “The Machine That Changed the World”. The
five principles are considered a recipe for improving workplace efficiency and include:

1) defining value, 2) mapping the value stream, 3) creating flow, 4) using a pull system, and 5)
pursuing perfection. The next sections provides a detailed overview of each principle.

1. Define Value

To better understand the first principle of defining customer value, it is important to understand
what value is. Value is what the customer is willing to pay for. It is paramount to discover the
actual or latent needs of the customer. Sometimes customers may not know what they want or
are unable to articulate it. This is especially common when it comes to novel products or
technologies. There are many techniques such as interviews, surveys, demographic information,
and web analytics that can help you decipher and discover what customers find valuable. By
using these qualitative and quantitative techniques you can uncover what customers want, how
they want the product or service to be delivered, and the price that they afford.

2. Map the Value Stream

The second Lean principle is identifying and mapping the value stream. In this step, the goal is to
use the customer’s value as a reference point and identify all the activities that contribute to these
values. Activities that do not add value to the end customer are considered waste. The waste can
be broken into two categories: non-valued added but necessary and non-value & unnecessary.
The later is pure waste and should be eliminated while the former should be reduced as much as
possible. By reducing and eliminating unnecessary processes or steps, you can ensure that
customers are getting exactly what they want while at the same time reducing the cost of
producing that product or service.

3. Create Flow

After removing the wastes from the value stream, the following action is to ensure that the flow
of the remaining steps run smoothly without interruptions or delays. Some strategies for ensuring
that value-adding activities flow smoothly include: breaking down steps, reconfiguring the
production steps, leveling out the workload, creating cross-functional departments, and training
employees to be multi-skilled and adaptive.

4. Establish Pull

Inventory is considered one of the biggest wastes in any production system. The goal of a pull-
based system is to limit inventory and work in process (WIP) items while ensuring that the
requisite materials and information are available for a smooth flow of work. In other words, a
pull-based system allows for Just-in-time delivery and manufacturing where products are created
at the time that they are needed and in just the quantities needed. Pull-based systems are always
created from the needs of the end customers. By following the value stream and working
backwards through the production system, you can ensure that the products produced will be
able to satisfy the needs of customers.

5. Pursue Perfection

Wastes are prevented through the achievement of the first four steps: 1) identifying value, 2)
mapping value stream, 3) creating flow, and 4) adopting a pull system. However, the fifth step of
pursuing perfection is the most important among them all. It makes Lean thinking and
continuous process improvement a part of the organizational culture. Every employee should
strive towards perfection while delivering products based on the customer needs. The company
should be a learning organization and always find ways to get a little better each and every day.

Applying the Principles

The five Lean principles provide a framework for creating an efficient and effective
organization. Lean allows managers to discover inefficiencies in their organization and deliver
better value to customers. The principles encourage creating better flow in work processes and
developing a continuous improvement culture. By practicing all 5 principles, an organization can
remain competitive, increase the value delivered to the customers, decrease the cost of doing
business, and increase their profitability.

What is "Waste" in Lean Manufacturing?

In lean manufacturing, “waste” is defined as anything that doesn’t add value to a product.
“Value” in manufacturing is defined as anything that a customer would be willing to pay for.

so, waste is any cost incurred in a process that does not benefit the customer. Lean
manufacturing is centered around eliminating waste from manufacturing processes. Businesses
have a surprising amount of waste. We’re not talking about garbage. We’re talking wasted time,
effort, space, resources—anything that doesn’t add value for your clients.

Waste is often broken down into eight categories, sometimes called “the 8 wastes of lean
operations.” Identifying and reducing waste can reduce your company’s costs, lead times and
accidents and make employees and customers happier.

“Any activity that doesn’t add value to your customers or to your company can potentially be
considered waste,” “People usually get used to doing things the same way over the years. They
often forget to pause, challenge the status quo and look for opportunities for improvement.”

One of the core principles of lean manufacturing is the removal of waste within an operation. In
a general sense, waste can be described as something that doesn't add value. In the context of
manufacturing, waste is more accurately defined as any expense or effort spent that does
contribute to converting raw materials into a completed product.

In industrial applications, waste can take many forms. While waste is commonly associated with
labor, time, and material inefficiencies, poor planning, underutilized employee skillsets, and
ineffective procedures can also generate waste in an industrial environment. There are typically
eight types of waste found in lean manufacturing processes.

The 8 Types of Waste in Lean Manufacturing

The types of wastes found in lean manufacturing can be identified by the acronym DOWNTIME,
which stands for Defects, Overproduction, Waiting, Non-utilized talent, Transportation,
Inventory excess, Motion, and Excess processing.

1. Defects

This type of waste is associated with the additional time, money, and resources dedicated to
correcting errors. Manufacturing defects are any imperfections that can affect the function,
performance, or appearance of the final product. While the elimination of all defects is not
possible, they can be controlled by employing stricter quality control measures.

2. Overproduction

Overproduction, as its name implies, is the production of an excessive amount of goods. This
typically occurs when a product or component is manufactured before it is required.
Overproduction is a common occurrence in ‘Just-In-Case’ management, leading to numerous
issues such as interrupted workflow, increased storage costs, increased expenditure, and
excessive lead times. This type of waste can be minimized by implementing better planning and
work coordination procedures.

3. Waiting

Waiting refers to time wasted due to an interruption in the production chain; this interruption can
cause the entire manufacturing process to either slow down or come to a grinding halt. For
example, if a particular task along the chain takes longer than usual to complete, employees in
charge of subsequent operations can experience downtime as they wait for the bottleneck to be
addressed. Better communication tools can help reduce production waiting times.

4. Non-utilized Talent

This type of waste occurs when employees in an organization are not utilized to their full
potential due to employer mismanagement. Non-utilized talent results in employees being
assigned inappropriate tasks or tasks that they have not been adequately trained for.
Underutilizing talents and abilities can directly impact employee motivation and engagement,
thus affecting overall productivity.

5. Transportation

Transportation waste occurs when moving goods or materials from one point to another. While
transportation is necessary, because the process itself adds no value to the final product
minimizing the time and cost associated with this activity is essential.

Transportation waste can be reduced in the manufacturing environment by reorganizing physical

layouts and minimizing the distances traveled between processes. Having plants located close to
each other or utilizing more efficient transportation methods can also help reduce transportation
waste.

6. Inventory Excess

Inventory excess is waste that results when the supply of a product exceeds the actual demand of
the consumer. This type of waste can lead to unprocessed inventory, which can eventually lessen
storage capacity, increase storage costs, and result in material spoilage. Management techniques
such as Just-In-Time inventory are typically employed to minimized waste due to inventory
excess.

7. Motion

Motion waste refers to the unnecessary movement or actions of people, machinery, and
equipment. In an office or manufacturing environment, motion waste can involve walking,
reaching for materials, searching for files, sifting through inventory, and other repetitive actions
that do not add value to the product or customer. Excessive motion, whether by a person or
machine, can be minimized by readjusting or redesigning everyday tasks.
8. Excess Processing

Excess processing, as its name suggests, involves doing more than the required amount of work
for a completed product or service. This type of waste can be characterized by adding more
components, performing additional steps, or duplicating data during the manufacturing process.
Excess processing is usually a sign of poorly designed processes; process mapping is often
employed to optimize workflow and eliminate over-processing

Examples of 7 Types of Wastes in an office environment

1. Transportation Waste - Document movement between offices
2. Inventory Waste - Deliverable documents produced well ahead of the planned date
3. Motion Waste - Employee's need to move around the office to do their job, e.g. Printer away
from the desk

4. Waiting Waste - Employees sitting idle while others complete the previous step

5. Overproduction Waste - Making extra copies of documents

6. Over processing Waste - Redoing tasks unnecessarily
7. Defects Waste - Incorrect data analysis, spelling mistakes
Examples of 7 Types of Wastes in a hospital
1. Transportation Waste – Moving a patient from one department to another (e.g. for X-ray)
2. Inventory Waste – Excessive stock of supplies (some getting expired)
3. Motion Waste – Poorly organized work spaces leading to excessive motion (e.g. for
registration clerk)
4. Waiting Waste - Patient waiting for lab results, waiting for registration
5. Overproduction Waste – Making extra food for patients.
6. Over processing Waste – Unnecessary diagnostic tests
7. Defects Waste – Misdiagnosis, incorrect labeling

What Does TIMWOOD Mean?

TIMWOOD is a framework for identifying wastes in the workplace that can be applied to any
organization or industry. Developed by the Lean manufacturing experts at Toyota, TIMWOOD
is an acronym for the seven (7) wastes found in manufacturing: Transportation, Inventory,
Motion, Waiting, Overproduction, Overprocessing, and Defects. It helps organizations
dramatically improve the efficiency of their workplace by defining and reducing waste.

These wastes can negatively impact productivity and increase costs. Recognizing and addressing
these wastes is essential to running an efficient and profitable business.

What is TIMWOOD?

TIMWOOD is a framework that Toyota developed to help identify and eliminate waste in
manufacturing operations. TIMWOOD stands for Transport, Inventory, Motion, Waiting,
Overproduction, Overprocessing, and Defects. These are the seven types of waste that the
TIMWOOD system focuses on.
Apart from manufacturing, the TIMWOOD framework applies to any business. This system can
help you identify wastes in your own business and find ways to eliminate them. At the same
time, it can help you improve your processes and make them more efficient.

The Person Behind TIMWOOD

TIMWOOD was developed by Taiichi Ohno, the father of the Toyota Production System (TPS).
Ohno was born in 1912 and started working at Toyota in 1943. Ohno categorized these
unproductive manufacturing practices to eliminate them from the work process.

Due to his concept, TIMWOOD now plays an important role in the TPS to determine and
eliminate the seven wastes to boost production efficiency and quality. Today, TIMWOOD is
known and used worldwide as an effective lean manufacturing tool.

Why is TIMWOOD Essential?

If you want an effective system for eliminating waste in your workplace, it’s essential to use
TIMWOOD to remove all of the relevant wastes associated with your work process. This system
will help you to identify and correct these wastes, resulting in a more efficient workplace.

By closely examining the seven wastes TIMWOOD focuses on, you can see how this system can
help your business. Just remember that small changes can make a huge difference, so don’t
hesitate to give TIMWOOD a try in your workplace!

What Are the 7 Wastes?

As mentioned earlier, TIMWOOD is a Lean Framework with only an acronym for the seven
wastes in a management process: Transport, Inventory, Motion, Waiting, Overproduction, Over
processing, and Defects. Let’s take a closer look at each one to understand how they can affect
your business:
 Transport
Transport waste is any waste incurred from moving materials or products from one process to
another. This type of waste can include unnecessary handling or transport of material, long
distances between processes, and poor layout of the facility.
Inventory
Inventory waste is any waste associated with too much inventory on hand. This can include
excess raw materials, work in progress, or finished goods. Too much inventory can tie up your
cash and lead to problems such as obsolescence or deterioration.
 Motion
Motion waste is any waste associated with the unnecessary or excessive movement of people or
equipment. It’s important to have a well-designed workplace layout to avoid this type of waste.
This waste can include walking or searching for materials, repetitive motions, and poor
ergonomics.
 Waiting
Waiting for waste is any waste associated with waiting for materials, people, or equipment. This
type of waste can include waiting for approvals, waiting for the next process step, and idle time
due to machine downtime.
  Overproduction
Overproduction waste is any waste associated with producing more than what is needed. This
type of waste can include producing ahead of schedule, over-processing, and making more than
required.

 Over processing

Over processing waste is any waste that is associated with performing more work than what is
necessary. This waste can include excessive testing, rework, and unnecessary features.

 Defects

Defect waste is any waste that is associated with producing a defective product or having to
rework a product. Defective products can include things like products that are damaged,
incorrect, or late. This waste can result in lost time, money, and resources.

Lean manufacturing (also known as just-in-time production, or JIT) is a production methodology

whose main purpose is to eliminate waste activities from a production process, optimize
productivity and reduce the time to market. In other words, the goal is to sustainably deliver
value to the customer.

Lean tools

Lean manufacturing (also known as just-in-time production, or JIT) is a production methodology

whose main purpose is to eliminate waste activities from a production process, optimize
productivity and reduce the time to market. In other words, the goal is to sustainably deliver
value to the customer.

1. Kanban
2. 5S
3. Kaizen
4. Value Stream Mapping
5. Gemba Walk
6. Andon
7. Continuous Flow
8. Heijunka
9. Hoshin Kanri
10. Just-In-Time

1. Kanban

Kanban is a Lean method that originated as a scheduling system for Lean manufacturing and
workflow management. In Japanese, the word “kanban” means “visual board” or a “sign”. The
main features of Kanban are visual boards and Kanban cards.
What Are the benefits of Kanban?

Kanban allows you to optimize workflows and help teams accomplish more, faster. Here are the
8 main benefits of Kanban for your business.

 Better visibility of flow

 Increased productivity

 Reduced waste activities

 Increased team focus

 Better collaboration

 Better predictability

 Improved quality

2. 5S

The 5S is a lean method for workspace optimization that consists of 5 consecutive steps. They
allow teams to organize their workplace for maximum process efficiency. The 5s comes from the
Japanese words Seiri (Sort), Seiton (Set in order), Seiso (Shine), Seiketsu (Standardize), and
Shitsuke (Sustain).

What Are the Benefits of 5S?

The 5S can be particularly beneficial in different industries and can be applied in manufacturing
and knowledge work. Here is a list of the main benefits.

Separate the necessary from unnecessary tools for your team.

Minimize waste activities by better organizing your work environment.

Keep equipment in a perfect state and utilize it to its full potential.

Standardize the work process.

Sustain any changes and set yourself up for continuous improvement.

3. Kaizen

Kaizen is a Lean concept that aims to continuously improve all functions in business.
The original meaning of the Japanese word “Kaizen” can be translated as “The act of making bad
points better”. To achieve Kaizen, you need to adopt the practice of self-criticism, in Japanese
“Hansei.”

What Are the Benefits of Kaizen?

Traditional Japanese ideas of Kaizen follow five basic tenets: teamwork, personal discipline,
improved morale, quality, and suggestions for improvement. These five tenets lead to the
following three major outcomes.

Elimination of waste (also referred to as economic efficiency)

Good housekeeping

Standardization.

Ideally, Kaizen gets ingrained in a company’s culture so that it eventually becomes natural to
employees.

4. Value Stream Mapping

Value stream mapping is a Lean management tool that helps organizations visualize, analyze,
and take future actions to improve critical steps in a specific product delivery process. The VSM
process shows the flow of goods from suppliers to customers throughout your organization.
What Are the Benefits of Value Stream Mapping?
Here is a list of the main benefits of value stream mapping.
VSM helps you identify and remove wasteful activities.
VSM enables you to identify value-adding and non-value-adding activities.
VSM allows you to focus on future improvements by highlighting the current flaws of your
workflow.

5. Gemba Walk

The Gemba walk is a Lean management technique that refers to managers observing the actual
work process first hand, engaging with employees, and exploring improvement opportunities on
the spot. The term “Gemba” translates from Japanese as “the real place”. The Gemba walk
includes three main concepts:

Regularly walk and observe the work area to locate wasteful activities

Actively communicate to identify the problematic areas

Perform the above activities always with respect for the people.

What Are the Benefits of Gemba Walk?

Practicing the Gemba walk regularly unlocks the following benefits.

The identification of problematic areas and their resolution happens faster.

Managers and leaders are empowered to create better relationships with the people who create
the actual value for the customers. The direct communication of strategic objectives leads to
increased employee engagement.

6. Andon

The Andon system is part of Lean manufacturing to help operators notice when a problem occurs
on the production line. Andon is one of the main elements of the Jidoka method invented by
Toyota to improve quality control and avoid defects.

What Are the Benefits of Andon?

The main benefits of applying Andon are listed below.

Improved transparency: Andon provides immediate reaction to quality, downtime, and safety
problems.

Cost-effective manufacturing: Using Andon, companies can detect production problems early in
the process. The result is fewer reworks and lower manufacturing costs.

Reduction of recurring issues: In an Andon system, all operators contribute to the identification
of the root cause of the problem and its elimination which reduces recurring problems altogether.

Increased customer satisfaction: Lean manufacturing teams constantly improve their processes
because they get to the root of problems. This leads to continuous improvement of the quality
and thus satisfying customers’ needs.

Reduced downtime: Supervisors and operators can detect and resolve manufacturing problems
faster.

7. Continuous Flow

Continuous flow is a Lean approach whose main idea is to produce and move one item at a time
continuously through a series of steps instead of moving them into batches. As a result, you will
be able to deliver value more frequently to your customers. The idea of continuous flow is to
produce only what has been requested.

What Are the Benefits of Continuous Flow?

The continuous flow approach is popular for its ability to create a balanced and defect-free
production. Here is a list of the main benefits of continuous flow.
Reducing inventory and transaction costs.
Increasing productivity by completing more units in less time.
Reducing waste activities.
Identifying and correcting errors easily in order to improve quality.
Delivering value to the market more frequently and increasing customers’ satisfaction.
8. Heijunka
The principles of Heijunka are intended to reduce a process’s unevenness and minimize the risk
of overburdening. In Japanese, the term Heijunka means “leveling/creating balance”. Companies
can use it to react to changes in demand and optimize their capacity utilization.
What Are the Benefits of Heijunka?
Implementing Heijunka can lead to the following benefits.
Reducing inventory costs.
Avoiding overproduction.
Preventing teams from overburdening.
Producing and delivering value to your customer at a steady pace.
Building a balanced pull system running at optimal efficiency.
What Are the Challenges of Heijunka?

9. Hoshin Kanri

Hoshin Kanri is a 7-step planning process used to communicate strategic goals across the
company. The Lean method ensures that the organizational vision, presented in the form of key
objectives, results from a mutual agreement between managers and subordinates. These
objectives must capture the feedback and efforts of every person in the company. The goal of
Hoshin Kanri is to connect strategic planning with execution in a meaningful way.

What Are the Benefits of Hoshin Kanri?

The Lean method is known for bringing alignment between strategic planning and execution at
every company level. Some of the benefits of the Hoshin Kanri method are listed below.

Hoshin Kanri helps bridge the gap between strategy and execution by creating alignment
between a company vision and actionable goals.It ensures that strategic organizational plans are
executed across the company’s hierarchy.

Poka-Yoke
Meaning and Birth of Poka-Yoke
Lean Management has adopted the principles and techniques originating as part of the Lean
Manufacturing methodology and developed them further. Now we can experience Lean's
benefits in management and transfer successful techniques from the times of post-war Japan to
modern-day business conditions.

One of the most valuable takeaways is Poka-Yoke. It has become one of the most powerful work
standardization techniques and can be applied to any manufacturing or service industry.

Its idea to prevent errors and defects from appearing in the first place is universally applicable
and has proven to be a true efficiency booster.

The term Poka-Yoke (poh-kah yoh-keh) was coined in Japan during the 1960s by Shigeo Shingo,
an industrial engineer at Toyota. Shingo also created and formalized Zero Quality Control – a
combination of Poka-Yoke techniques to correct possible defects and source inspection to
prevent defects.

What is Poka-Yoke, and why is it useful?

Rather than demanding perfection, Poka-Yoke acknowledges the inevitability of human error
and gives people a framework for minimizing mistakes.

It fits the culture of continuous improvement, which is part of Lean Management. Aside from the
obvious benefits – fewer errors – it gives people a simple technique for solving common issues.

It also helps those prone to analysis paralysis make a move: if the evidence shows the conditions
are right, it’s much easier to take the next step. And if there is a problem, Poka-Yoke can help
you detect where and why earlier on.

Why is Poka-Yoke Important?

The value of using Poka-Yoke is that they help people and processes work right the first time,
which makes mistakes impossible to happen.

These techniques can significantly improve the quality and reliability of products and processes
by eliminating defects. This approach to production fits perfectly the culture of continuous
improvement, which is also part of the Lean management arsenal.

It can also be used to fine-tune improvements, and process designs from six-sigma Define –
Measure – Analyze – Improve – Control (DMAIC) projects. Applying simple Poka-Yoke ideas
and methods in product and process design can eliminate human and mechanical errors.

When and How to Use it?

Poka-Yoke technique could be used whenever a mistake could occur, or something could be
done wrong – meaning everywhere. It can be successfully applied to any type of process in the
manufacturing or services industry, preventing all kinds of errors:

Processing error: Process operation missed or not performed per the standard operating
procedure.
Setup error: Using the wrong tooling or setting machine adjustments incorrectly.
Missing part: Not all parts are included in the assembly, welding, or other processes.
Improper part/item: Wrong part used in the process.
Operations error: Carrying out an operation incorrectly; having the incorrect version of the
specification.
Measurement error: Errors in machine adjustment, test measurement, or dimensions of a part
coming in from a supplier.
Poka-Yoke is easy to implement because of its universal and rational nature. You can follow this
step by step process to apply it:

Pull System and Push System

What is a Push System?

In manufacturing, a push system means that a company produces goods according to a demand
forecast. This is also called make-to-stock manufacturing and it is often used to produce goods
that have a low chance of unforeseeable demand fluctuations, e.g. food, pharmaceuticals,
household chemicals, electronic devices, etc.

A push system, therefore, starts production in order to anticipate future demand that has been
estimated according to historical data. In this supply chain system, goods are “pushed” through
the supply chain, with the demand forecast triggering production, and with finished goods being
dispatched to distributors or retailers that will then market the products and wait for customers to
make the purchase.

A great example of using a push system would be a bakery where the decision on which goods
and which quantities to bake is done according to how much is expected to be sold. As people
are not willing to wait an hour for their morning bagel after they put in an order, a push system is
used.

What is a Pull System?

The pull system is a lean manufacturing strategy where goods are produced according to actual
demand as opposed to forecasts. In this kind of system, companies only keep as much inventory
and produce as much as is needed to respond to existing customer orders.

In a pull system, goods are therefore “pulled” through the supply chain, with a customer order
triggering a sequence of events where the required quantity of products are made, and raw
materials used in the production of said products are replenished.
A great example of a pull system is just-in-time manufacturing. The core idea of JIT is to
schedule the process so that materials would reach the facility exactly when production is
scheduled to start, and production is scheduled so that it would be finished just as the goods
should be dispatched to the customer.
Push System vs. Pull System
The main difference between push and pull systems is that in a push system, production dictates
how much of the product will reach the market while in a pull system, current demand dictates
how much to produce. This key factor of what triggers activities in the supply chain leads to an
array of distinctions between the two systems.
Key points
A push system (also called make-to-stock) means that a company produces goods according to a
demand forecast. It is often used to produce goods with a low chance of unforeseeable demand
fluctuations, e.g. food, pharmaceuticals, household chemicals, etc.
The pull system is a lean manufacturing strategy where goods are produced according to actual
demand as opposed to forecasts. In this kind of system, companies only keep as much inventory
and produce as much as is needed to respond to existing customer orders.
The main difference between push and pull systems is that in a push system, production dictates
how much of the product will be “pushed” to the market while in a pull system, current demand
“pulls” the goods, i.e. it dictates when and how much to produce.
What else sets push and pull systems apart is the amount of WIP inventory allowed, inventory
costs, product availability, and product customizability.
Push and pull can also work together in a hybrid push-pull system where both demand forecasts
and current orders are used to trigger the movement of goods at various points in the supply
chain.

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