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Lean Principles. Being Fast, Flexible, Economic Author: Dr Rhys Rowland-Jones. Session Plan:. What is lean? How does lean work? Who is lean applicable to? 5 principles of lean The Toyota Production System Taiichi Ohno’s 7 Wastes 7 service wastes 5 S’s. What is lean?.

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lean principles

Lean Principles

Being Fast, Flexible, Economic


Dr Rhys Rowland-Jones

session plan
Session Plan:
  • What is lean?
  • How does lean work?
  • Who is lean applicable to?
  • 5 principles of lean
  • The Toyota Production System
  • Taiichi Ohno’s 7 Wastes
  • 7 service wastes
  • 5 S’s
what is lean
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 firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory.
how does lean work
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
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.
  • It’s not a new phenomenon, Japanese auto manufacturers have been developing Lean for over 50 years.
5 principles of lean
5 principles of Lean
  • Value - specify what creates value from the customer’s perspective.
  • Thevalue 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 customer’s rate of demand).
  • Perfection - strive for perfection by continually attempting to produce exactly what the customer wants.
  • 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
  • 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 stream9
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.”

(Hines et al, 2000)

  • 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 = response to the customer’s 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.
  • 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.
the cornerstone of lean the toyota production system
The Cornerstone of Lean – The Toyota Production System
  • Based on two philosophies:
  • 1. Elimination of waste
  • 2. Respect for people
toyota production system s four rules
Toyota Production System’s Four Rules
  • All work shall be highly specified as to content, sequence, timing, and outcome.
  • Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses.
  • The pathway for every product and service must be simple and direct.
  • 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 ohno s 7 wastes muda
Taiichi Ohno’s 7 Wastes (muda)
  • types of waste:
  • overproduction
  • waiting time
  • transport
  • process
  • inventory
  • motion
  • defective goods
7 service wastes source john bicheno lean toolbox 2003
7 Service WastesSource – John Bicheno, Lean Toolbox (2003)
  • 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.
the 5s s
The 5S’s
  • The 5S‘sare simple but effective methods to organise the workplace.
  • The methodology does however, go beyond this simple concept, and is concerned with making orderly and standardized operations the norm, rather than the exception.
  • Posters bearing the 5S terms can be found on the walls of Japanese plants, and are a visual aid to organisational management.
the japanese origins
The Japanese Origins
  • Seiri Sort
      • This requires the classifying of items into two categories, necessary and unnecessary, and disregarding or removing the latter.
  • Seiton 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 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.
the japanese origins19
The Japanese Origins
  • Seiketsu 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 Sustain
    • Shitsuke means self-discipline.
      • The 5 S‘s 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 S‘s in their daily work.
  • Lean manufacturing was developed by the Japanese.
  • Lean is a philosophy that seeks to eliminate waste in all aspects of a firm’s 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).
  • Utilises 5 S methodology.