Lean Thinking

Lean Thinking is a mindset — a way of viewing the world. Lean is about

focus, removing waste, and increasing customer value. Lean is about smooth
process flows, doing only those activities that add customer value and
eliminating all other activities that don’t.

Lean is the term used to describe the production system developed by the
Toyota company in the post World War II years. "Lean" comes from the
ability to achieve more with less resource, by the continuous elimination of
waste. The concept of Lean is not restricted to manufacturing and applies to
the whole enterprise, including the supply chain, the new product
development process and the provision of service.

Lean is basically all about getting the right things, to the right place, at the
right time, in the right quantity while minimizing waste and being flexible
and open to change. More importantly, all of these concepts have to be
understood, appreciated, and embraced by the actual employees who build
the products and therefore own the processes. The cultural aspect of lean is
just as important than the actual tools or methodologies.

Lean thinking got its name from a 1990’s best seller called "The Machine
That Changed the World : The Story of Lean Production". The book chronicles
the transitions of automobile manufacturing from craft production to mass
production to lean production.

Adding value is another way of saying generating revenue. If it doesn’t

generate revenue then it must add cost, not value. It has to change the form,
fit or function of the product or service. This means that it has to actually be
different than it was before the step was done. If you are just reviewing or
inspecting something, you are not changing it. Therefore it is not value
added. c) It has to be done right the first time.

In the non-value added category we have pure waste and required waste.
Required waste is the inspection that is required in our manuals and there is
no way we can get rid of it. Or perhaps technology is limiting and we can't
remove the waste. Pure waste is anything else that we just haven't removed
yet. It could be transportation because we can't figure out how to move the
two steps closer together yet, or haven't changed an internal set-up to an
external set-up. NVAs can be reduced, eliminated or simplified.
'Lean Thinking', has five Lean Principles:

 Specify what creates value from the customer's perspective

 Identify all the steps across the whole value stream
 Make those actions which create value flow
 Only make what is pulled by the customer just-in-time
 Strive for perfection by continually removing successive layers of
waste

WHAT DOES THAT MEAN ?

Consider the following definitions for each of the key words :

VALUE: what the customer is willing to pay for (ie processes which transform
the product, eg : bending, welding, etc).

VALUE STREAM: the sequence of processes to deliver value to the

customer. (The complete value stream flows through the complete
supply chain, from raw materials to finished goods).

FLOW: movement between value adding processes without delay or

interruption.

PULL: activating a process when the customer wants to receive, not when
the supplier wants to provide.

Lean is all about respecting people while eliminating the 3 M’s which are
muri (overburdening), mura (unevenness), and muda (non value added
activity). Modelled after the Toyota Production System (TPS), the term “lean
manufacturing” was first coined by a group of MIT researchers in the 1980s,
lead by Dr. James Womack as they prepared to write the book “The Machine
that Changed the World.”
 LEAN ENTERPRISE

RESPECT FOR
JIT JIDOKA
PEOPLE

STANDARD HEIJUNKA
KAIZEN
WORK Levelled Production

A house is often used to describe the Toyota Production System. One pillar of
the house represents JIT (just in time). Here we look at how to make things
flow (one piece at a time preferably) using principles like takt time.
We also focus on the customer and only produce what they ask for and when
they ask for it. In other words, we allow the customer to “pull” value instead
of us attempting to “push” things onto them. Finally, we never
“overproduce” which is one of the seven deadly wastes.
The other pillar, Jidoka, is all about ensuring we make a quality product and
eliminate, as much as possible, any opportunity to produce defects. Contrary
to what some people falsely assume, lean is very concerned with process
capability and eliminating defects.
At the base of the Lean house we find heijunka, or leveling. Here we work to
smooth out production in such a way that allows us to better utilize our
resources.
Lastly, the base of Standard work and Kaizen are absolutely essential for any
organization wanting to practice lean manufacturing.
These concepts are discussed at length below.
Lean = Eliminating the 8 Wastes

Waste within a process is a

systemic flaw. Waste is
using resources – be it
labor, materials, or
equipment – over and
above what is required to
produce the service or
product defined by our
customers. Ultimately, if
our customer/client does
not need or would not pay
for it, it is waste. It is of no
value to the
customer/client. Waste
elimination is one of the
most effective ways to increase the profitability of any business. Processes
either add value or waste to the production of a good or service. The seven
wastes originated in Japan, where waste is known as “muda." "The seven
wastes" is a tool to further categorize “muda” and was originally developed
by Toyota’s Chief Engineer Taiichi Ohno as the core of the Toyota Production
System, also known as Lean Manufacturing. To eliminate waste, it is
important to understand exactly what waste is and where it exists. While
products significantly differ between factories, the typical wastes found in
different environments are quite similar. For each waste, there is a strategy
to reduce or eliminate its effect on a company, thereby improving overall
performance and quality. Recognizing waste leads to identifying the root
cause of problems.
As we said; Muda is the Japanese word for waste and is the enemy of us all
whether we know it or not. But Muda is not the only enemy of a lean system.
There are two more, less popular (at least in Western companies), M’s we
must also be aware of – namely mura and muri.
 Mura
Mura in its simplest form
means “unevenness.” For
example, mura results when
your operators are told to
work like crazy early in the
morning only to stand
around and do nothing late
in the day. Heijunka may be
the answer to this problem
but let us save that
discussion for another
chapter.

Muri
Muri means to “overburden” equipment or operators. For example, if your
entertainment center is only meant to hold 10 kg and you place your new 15
kg super duper HD Ready TV on it we have muri. We also have other issues
like a very real safety concern!
Leads to Muda
These two M’s are just as important as the infamous muda.

All non-valued activity can be categorized into the 8 wastes below.

The 7 plus 1 DEADLY Wastes

1. OVERPRODUCTION.

Overproduction and early production – producing more than the

customer has asked for or providing unordered
materials/products/services

Simply put, OVERPRODUCTION is to

manufacture an item before it is actually
required. Overproduction is highly costly to a
company because it prohibits the smooth flow
of materials and actually degrades quality and
productivity. The Toyota Production System is
also referred to as “Just in Time” (JIT) because
every item is made just as it is needed.
Overproduction manufacturing is referred to as
“Just in Case.” This creates excessive lead times,
results in high storage costs, and makes it
difficult to detect defects. The simple solution to
OVERPRODUCTION is turning off the tap; this requires a lot of courage
because the problems that overproduction is hiding will be revealed. The
concept is to schedule and produce only what can be immediately
sold/shipped and improve machine changeover/set-up capability.

In Service functions; it means:

 Generating more information than the customer needs right

 Generating more information than the next process needs
 Providing a service the customer is not ready for/unable to use at this
time
 Creating reports that no one reads
 Making extra copies
 Duplicate data sources

2. WAITING

Idle time created when material, information, people, or equipment

is not ready – time when no value is added to the product/service.

Wh
enever goods are not moving or being processed, the waste of WAITING
occurs. Typically more than 99% of a product's life in traditional batch-and-
queue manufacture will be spent waiting to be processed. Much of a
product’s lead time is tied up in waiting for the next operation; this is usually
because material flow is poor, production runs are too long, and distances
between work centers are too great. Linking processes together so that one
feeds directly into the next can dramatically reduce waiting.

In Service functions; it means:

 Waiting for the system to come back up

 Waiting for a handed-off file to come back
 Waiting for customer response
 Waiting for copy machine
 Waiting for faxes
  Waiting for reviews or approvals
 Excessive Login or response times
 Waiting for hard copy printouts

3. TRANSPORTING

Movement of information, people, or materials that does not add

value

TRANSPORTING
product between
processes is a cost
incursion which adds no
value to the product.
Excessive movement
and handling cause
damage and are an
opportunity for quality
to deteriorate. Material
handlers must be used
to transport the
materials, resulting in
another organizational cost that adds no customer value. Transportation can
be difficult to reduce due to the perceived costs of moving equipment and
processes closer together. Furthermore, it is often hard to determine which
processes should be next to each other. Mapping product flows can make
this easier to visualize.

In Service functions; it means:

 Retrieving or storing files

 Carrying documents to and from shared equipment
 Taking papers/files to another person
 Going to get signatures
 Moving work over long distances

4. OVER PROCESSING

Efforts that add no value from the customer’s viewpoint

Often termed as “using a sledgehammer to crack a nut,” many organizations

use expensive high precision equipment where simpler tools would be
sufficient. This often results in poor plant layout because preceding or
subsequent operations are located far apart. In addition they encourage high
asset utilization (over-production with minimal changeovers) in order to
recover the high cost of this equipment. Toyota is famous for their use of
low-cost automation, combined with immaculately maintained, often older
machines. Investing in smaller, more flexible equipment where possible;
creating manufacturing cells; and combining steps will greatly reduce the
waste of inappropriate processing.

In Service functions; it means:

 Creating unused reports

 Repeated manual entry of data
 Redundant reviews/approvals
 Use of outdated standard forms/templates
 Use of inappropriate software
 Data entry not performed at the source
 Information for decision-making not real time

5. EXCESS INVENTORY/WIP (and/or Work Waiting)

More information, projects, material on hand/waiting than can be

worked on or the customer needs right now.

WORK IN PROGRESS (WIP)

is a direct result of
overproduction and waiting.
Excess inventory tends to
hide problems on the plant
floor, which must be
identified and resolved in
order to improve operating
performance. Excess
inventory increases lead
times, consumes productive
floor space, delays the
identification of problems, and inhibits communication. By achieving a
seamless flow between work centers, many manufacturers have been able to
improve customer service and slash inventories and their associated costs.

In Service functions; it means:

 Files waiting to be worked on

 Unused records in the database
 Open projects
 Piles and shelves of supplies
o ”Just in case”
o Cost is lower for large volumes
 E-mails waiting to be read
 Voice mails waiting to be picked up
  Requests for services piling up
 Customers waiting for service, such as in Intake

6. UNNECESSARY / EXCESS MOTION

Movement of people that does not add value to the service/product.

This waste is related to

ergonomics and is seen
in all instances of
bending, stretching,
walking, lifting, and
reaching. These are also
health and safety issues,
which in today’s litigious
society are becoming
more of a problem for
organizations. Jobs with
excessive motion should
be analyzed and
redesigned for improvement with the involvement of plant personnel.

In Service functions; it means:

 Searching for files

 Extra clicks or key strokes
 Clearing away files on the desk
 Gathering information
 Looking through manuals and catalogues
 Handling paperwork

7. DEFECTS

Work that contains errors, becomes re-work, or lacks something

necessary – errors that turn into “defects” if they reach the
customer.

Having a direct impact to the

bottom line, quality defects resulting
in rework or scrap are a tremendous
cost to organizations. Associated
costs include quarantining
inventory, re-inspecting,
rescheduling, and capacity loss. In
many organizations the total cost of
defects is often a significant percentage of total manufacturing cost. Through
employee involvement and Continuous Process Improvement, there is a
huge opportunity to reduce defects at many facilities.

In Service functions; it means:

 Data entry error

 Pricing error
 Missing information
 Missed specifications
 Lost records
 Collect wrong or incorrect data
 Equipment breakdowns/malfunctions

8. UNDERUTILIZATION OF EMPLOYEES

UNDERUTILIZATION OF
EMPLOYEES has been added as an
eighth waste to Ohno’s original seven
wastes. It is only by capitalizing on
employees' creativity that
organizations can eliminate the other
seven wastes and continuously
improve their performance.

 People that are needed, but not

enough work to keep busy all
day – could be helping others –
unbalanced workloads.
 Poor or neglected user training and user documentation on
existing/new processes.
 People watching equipment work (watching while copier prints).
 People with extensive knowledge, skills, and/or experience spending
time on activities that do not use these assets.
EXERCISE:

Give 2-3 examples each on the above 8 wastes as applicable to your work
area

Type of Waste Examples

Overproduction 1.

2.

3.
Waiting 1.

2.

3.
Transporting 1.

2.

3.
Over processing 1.

2.

3.
Excess Inventory 1.

2.

3.
Unnecessary Motoin 1.

2.

3.
Defects 1.
 2.

3.
UNDERUTILIZATION OF 1.
EMPLOYEES
2.

3.

PURPOSE: The purpose of this task is to recognize the 8 Wastes in our daily
work and to apply Lean concepts that are effective in reducing or eliminating
them.

The Eight Wastes itself is not a tool to address the problems that are causing
the waste in the first place, but it is an invaluable tool in addressing
inefficiencies and, as a result, also cost. It helps you to identify and organize
problems so that you can focus your efforts in the appropriate areas.

Task: Select one or more steps in your process:

Step Name:

1. Identify the Waste(s) in your process:

2. Name the Waste(s) you see:

3. Select one or more Lean Concepts on the following pages to improve this
step/eliminate the wastes identified:

Using following Lean concepts can help you to reduce the waste in
your worksite and its processes, as well as to transform your
Current State to your Future State.

Eliminate non-value-added activities, tasks, steps

 Evaluate every activity, task, and step from the customer’s point of view and ask
if this action is adding form or function to the service. If it is not, try to eliminate
as much of the non-value-added time as possible. Remember that customers
can be internal, external, direct or indirect -- someone is paying for your
services.

Implement low-cost / no-cost solutions first

 Use simple, grass-roots level suggestions to eliminate waste. Carry out easy
decisions and make low-cost decisions. This is the test phase -- you can make
permanent changes later.

Simplify the process

 Ask why the step or action is being done. Many times, the customer’s
requirements change over time, and the process is never re-evaluated to match
the current needs of the customer. Applying Lean can be a real “up-hill battle” if
key business processes are no longer appropriate or even out of date.

Integrate the processes or steps in the process

 The process should be reviewed to reduce or combine steps in order to eliminate

duplication, inconsistencies, conflicts, and redundancies across processes,
functions, or departments.
Do things only once

 For example, try to capture required data as needed and as close to the source
as possible to eliminate loops (going back to source for data) in the process.
 Current States with an action, data, or information path that moves backwards
should be strictly scrutinized.

Look at process from the customer point of view

 At every step, determine the receiver of the generated output(s) and know the
required outcome. Remember that there can be, and are, many customers
within a value stream.

Implement visual systems

 Visual systems are a form of communication and can be used to direct flow and
identify problems/needs/status with minimal interaction from a person. Typically
these can be no or low-cost solutions and can be quickly implemented to
improve people, information, and documents flows. Simple signals that provide
an immediate understanding of a situation or condition. They are efficient, self-
regulating, and worker-managed.

Create value based on customer demands and needs (define the

customer)

 Perform tasks that increase the value of the service for the customer -- any thing
else that is not necessary is waste.

Reduce batch size

 Analyzing the amount of inventory (or work) before and after a step in the
process can help identify bottlenecks or capacity constraints in the
system. Only one client, case file, etc. can be addressed at a time, so
question the practice of stacking or batching work and pushing batches
forward to the next step in the process.
Improve quality – do it right the first time !

 Strive for perfection at the source of data capture, always. People must be
certain that the product/information they are passing to the next work step/area
is of accepted quality.

Reduce transportation and/or motion

 Analyze the amount of movement of people and documents in performing a
step. Much time can be wasted in unnecessary movement.

Standardize the work

 Documented, standardized work reduces cross-training time, improves

efficiency, reduces searching times, and creates a work area and/or processes
that produce replicable and reliable outcomes. Standardized work minimizes
variation in process and process result.

Implement 5 S – Sort, Set in order, Shine, Standardize, Sustain

 Sort: Eliminate the Clutter – “When in Doubt, Throw it Out”

 Set in Order: Organize and label, set boundaries and limits – “A place for
everything and everything in its place”
 Shine: Clean everything, inside and out – “Inspection through cleaning”
 Standardize: Keep checklists, charts, etc. and make them visual – “Everything in
a state of readiness and service”
 Sustain: Maintain discipline through the implementation of continual
improvement systems and culture

Reduce setup or changeover time

 Changeover activity is considered non-value-added and detracts from available

productive time. Reducing setup is critical to increasing customer
responsiveness and effectively reducing lot size.

Implement Pull vs. Push Systems

 A Pull System is a method of controlling the flow of resources (people,

information) based on pre-established rules, and the actual status of the system
at any time. A Pull System is a flexible and simple method of
controlling/balancing the flow of resources. It eliminates waste of handling,
storage, expediting, obsolescence, rework, facilities, equipment, and excess
paperwork.
 Pull System consists of:
o Processing based on actual consumption
o Low and well planned work in process (paperwork)
 Management by sight, improved communication
 Avoid “just in case” mentality.

Complete small incremental changes

 Strive for transition to the Future State with incremental and monitored
(measured) changes. Effective vs. ineffective changes can quickly be recognized
and continuous improvement will be achieved more efficiently.

Establish appropriate measurements to determine improvements in

cost, customer service, and quality.

 Check metrics on impact of goals

 Check metrics against project selection criteria:
o Number of customers impacted (future state should positively impact
more),
o Intradepartmental coordination improvement (reduction of duplication or
redundancy),
o Improved service (increased capacity, better quality),
o Dollars saved (reduced time, materials, processing),
o Improved efficiency.

Identifying Wastes, Applying Lean Concepts

8 Wastes -Worksite Worksheet

Purpose: The purpose of this task is to recognize the 8 Wastes in our daily
work, and to apply Lean concepts that are effective in reducing
or eliminating them.

Method: Divide into groups – to be specified by Facilitators

Task: Walk your worksite (Gemba) and on the following page -

1) Identify 5 forms of Waste in your worksite.

2) Name the waste you see.

3) Select one or more Lean concepts to improve this

step/eliminate the wastes identified.
Lean Concept(s) to Use
Observed Waste Which of the ‘8 Wastes’?
for Improvement
 STANDARD WORK AND STANDARDS

“Where there is no standard, there can be no kaizen.”

-Taiichi Ohno
What does this mean?
At its simplest level, it means
if you don’t know how you
are doing something, or if
LEAN ENTERPRISE you don’t do something in a
consistent manner, how can
you ever expect to make it
better?
RESPECT FOR
JIT JIDOKA 1. If you have a task or a
PEOPLE
job you do on even a
semi-consistent basic
(e.g. assemble a
STANDARD HEIJUNKA
product, take care of
KAIZEN
patients, call
WORK Levelled Production
customers, etc.) start
off by writing down the way you generally do these steps.
2. Once you have the steps documented, ask someone who does the
same or similar job to review the steps to see if they agree with them.
 If they don’t, discuss it with them and see if you can mutually agree on
the best way to do this task.
3. Once you and your colleague have the agreed steps documented work
together and time each other doing these steps.
4. Once you have the steps and the times documented, you can
document the standard work procedures.
5. Once you have the process documented, share it with others and get
them to follow the steps for awhile exactly as shown in the document
or documents depending on how detailed you go.
6. When someone figures out how to do it better, and they will, change
the procedures accordingly. This is what kaizen is all about.
There are three components of standard work:
1. Takt Time
2. Work Sequence and
3. Standard Work in Process (SWIP)

TAKT TIME

Formally defined, takt time is the rate at

which your customer buys a product. It is
often called the heart beat of production,
since once takt time is calculated all
processes should operate at, or preferably a
bit below, takt time.
Takt Time = Net Available Time per Day /
Customer Demand per Day
American football helps me remember
this formula. Typically, we note takt
time in “seconds per piece. Takt Time is
the law of the land and once it is
understood all processes must work to
this pace. Toyota, for example, operates
at a takt time of around 50~60 seconds.

WORK SEQUENCE

Next up is Work Sequence which is

simply the order in which an operator
performs manual operations (including
walking and waiting). It is extremely important to determine the best and
most efficient way for operators to perform their work. It helps ensure your
process maintains consistency and stability. Whenever possible our aim
should be to limit wasted motion, reaching, or any other non value added
action.

STANDARD WIP

Finally, we must discuss Standard Work in Process (SWIP). SWIP is calculated

as follows:
Standard WIP = (Manual Time + Auto Time) / Takt Time
When a process is operating at, or slightly less than, takt time, SWIP will
usually be 1 piece. An exception to this rule would be if two sequential
processes summed cycle time was less than takt time. In this case, you may
only have one piece of SWIP for these two processes. If a process has a cycle
time greater than takt time, SWIP will be at least 2 pieces, possibly more,
depending on how the formula works out.
JIDOKA

LEAN ENTERPRISE

RESPECT FOR
JIT JIDOKA
PEOPLE

STANDARD HEIJUNKA
KAIZEN
WORK Levelled Production
In the Toyota Production System house there are two pillars. The one pillar is
JIT and is based on takt time, one piece flow, and pull. That other pillar is
Jidoka.

Toyota’s website defines jidoka

as follows:
The term jidoka used in
the TPS can be defined as
“automation with a
human touch.” The word
jidoka traces its roots to
the automatic loom
invented by Sakichi
Toyoda, Founder of the
Toyota Group. The
automatic loom is a machine that spins thread for cloth and weaves
textiles automatically.
There are four main steps to jidoka. They are:
1) Detect the abnormality or defect
2) Stop doing what you are doing… something is wrong!
3) Fix the issue
4) Investigate the root cause and ensure it doesn’t happen again

Poka-Yoke, or error proofing,

is an excellent tool to ensure
jidoka is in place. Once you
identify a failure mode, the
best control of all is a Poka-
Yoke device. Some call this
mistake proofing while
others call it idiot proofing.
Both work, but mistake
proofing sounds more
respectful
HEIJUNKA

LEAN ENTERPRISE

RESPECT FOR
JIT JIDOKA
PEOPLE

STANDARD HEIJUNKA
KAIZEN
WORK Levelled Production

In the house of Toyota, heijunka belongs in the foundation. Heijunka which is

properly pronounced (hey-june-kah) and not (hey-junk-ah) is defined in the
Lean Lexicon - Third Edition as:
Leveling the type and quantity of production over a fixed period of
time. This enables production to efficiently meet customer demands
while avoiding batching and results in minimum inventories, capital
costs, manpower, and production lead time through the whole value
stream.
We normally hear about heijunka in the
manufacturing environment. Assuming a
factory can change over their machines in an
expedient manner, (a prerequisite for
heijunka) a leveled production system may
look something like this. Note that (c) stands
for changeover.
• AAA (c) BB (c) C (c) AAA (c) BB (c) C (c)
AAA (c) BB (c) C

Compare this to the way a mass producer would likely approach this same
demand structure keeping in mind their changeover time is likely much
greater when compared to the lean producer.
• AAAAAAAAA (c) BBBBBB (c) CCC
What about the office?
Can we apply the same, or similar, idea in the land of cubicles? Definitely.
Let’s see how.
One of the easiest ways to accomplish this is
by using a heijunka wheel as shown in the
picture. In the wheel we can place the work,
normally in folders, to be done in the slots in
a leveled and balanced manner.
For work that needs to be done daily, the
labels along the top may be noted, for
example, in 30 minute intervals. For work
that needs to be done weekly we may note
the particular day (Monday, Tuesday, etc.) on
the label.
Another powerful approach is to place all the folders “in process” in an
upright position. Then, once the work has been completed, lay the folder on
its back. This is a powerful visual control that lets anyone and everyone that
walks by the heijunka wheel see how things are going.
We can also store, within the heijunka wheel, standard work instructions,
training records, and other documentation.
The benefits of using a heijunka wheel are many. People know what they are
to do and when to do it. There is no more guessing or wondering what to
work on next. And if an individual falls behind, they will know it immediately
and can ask for help before severely impacting the entire system.

Taiichi’s Take on Heijunka

“The slower but consistent tortoise
causes less waste and is much more
desirable than the speedy hare that
races ahead and then stops
occasionally to doze. The Toyota
Production System can be realized
only when all the workers become
tortoises.”
- Taiichi Ohno
KAIZEN

LEAN ENTERPRISE

RESPECT FOR
JIT JIDOKA
PEOPLE

STANDARD HEIJUNKA
KAIZEN
WORK Levelled Production

Kaizen
There are two types of kaizen events: point kaizen and system kaizen.

Point Kaizen

Commonly practiced Kaizen is called point

kaizen. These kaizen events typically come
about as the Manager is walking through the
shop and notices a disorder in cell 4. So he
finds the supervisor of the cell and discusses
it. The supervisor gets the clue and launches
an immediate 5S kaizen event in the area.
 System Kaizen

System kaizen, in contrast to point

kaizen, comes about when this same
plant manager realizes that one of
their product line is suffering from a
major issues like high defect levels,
excess inventory, and overall poor
morale. With this in view, he works
with the team in developing both a current state value stream map and then
a future state value stream map. This future state value stream map is a
view of how the team wishes to see things working in a pre-determined time
frame (e.g. 3 months, 6 months, etc.).
Things like tidying things up via 5S, creating model cells, and implementing
WIP and finished good supermarkets may be some of the things needed in
order to reach this future state.

System Kaizen leads to Point Kaizen

What the team soon realizes is that the 2 day value stream mapping “system
kaizen” exercise lead to the identification of multiple “point kaizen” events.
And once these point kaizen events are successfully complete, the team
should be much closer to their future state vision.

Few Kaizen Rules

Always Challenge the status quo

If something is broken, we must fix it. However, even if something is

working, we must study it to see how it can be even better.

Rule 2: Think of how to do it instead of why it can’t be done

Enter a “how it can be done” mindset instead of why it cannot be done
mindset. This manner of thinking must also be taught to all workforce. If
everyone adopts this change can occur rapidly.
Rule 3: Stop making excuses. Start questioning current practices.

When we encounter a defect or failure, we should not make excuses or play

the blame game. Instead, we must go to the gemba to see what is really
happening.
Rule 4: Don’t seek immediate perfection.

For many of us, we want it all and want it now. However, aiming for
immediate perfection is not the kaizen way. To be sure, perfection is our
ultimate goal but it will never be achieved with one single initiative (or ever).
These quick improvements create momentum that is difficult to stop. And
this, my friends, is when kaizen is at its best.
Rule 5: Correct mistakes at once
If you are walking through your office, factory, or even home and spot an
abnormality, you should make every effort to remedy the situation
immediately.
Don’t wait to call a meeting or form a project plan and improvement
committee.” JUST DO IT! Many times this may mean implementing a
temporary solution (i.e. a Band-Aid) until a more permanent solution can be
established.
Rule 6: Don’t spend money on kaizen
Many times the best solutions cost nothing at all. It’s easy to fall into the trap
that new equipment or technology will take away all our problems.
But if you take the time to really study the problem, you may be in position
to improve things without spending a penny, pence, etc.
Process Flow
There are five basic steps in assessing lean operations:

1. Specify value from the standpoint of the end customer by product family.

The critical starting point for lean thinking is value. Value can only be defined
by the ultimate customer. And it's only meaningful when expressed in terms of
a specific product (a good or a service, and often both at once), which meets
the customer's needs at a specific price at a specific time." The determination
of which features create value in the product is made from the internal and
external customer standpoints. Value is expressed in terms of how the specific
product meets the customer’s needs, at a specific price, at a specific time.
Specific products or services are evaluated on which features add value. The
value determination can be from the perspective of the ultimate customer or a
subsequent process.

2. Identify all the steps in the value stream for each product family,
eliminating every step and every action and every practice that does not
create value.

Once value is identified, activities that contribute value are identified. The
entire sequence of activities is called the value stream. Then a determination is
made as to whether activities that do not contribute value to the product or
service are necessary. Necessary operations are defined as being a
prerequisite to other value added activities or being an essential part of the
business. An example of a non-value added but necessary process is payroll.
After all, people need to be paid. Finally the impact necessary, non-value
added activities have on the process is reduced to a minimum. All other non-
value added activities are transitioned out of the process. The value stream is
the set of all the specific actions required to bring a specific product through
the critical management tasks of any business: the problem-solving task
running from concept through detailed design and engineering to production
launch, the information management task running from order-taking through
detailed scheduling to delivery, and the physical transformation task
proceeding from raw materials to a finished product in the hands of the
customer. Identifying the entire value stream for each product is the next step
in lean thinking, a step which firms have rarely attempted but which almost
always exposes enormous, indeed staggering, amounts of waste.
3. Make the remaining value-creating steps occur in a tight and integrated
sequence so the product will flow smoothly toward the customer.

Only after specifying value and mapping the stream can lean thinkers
implement the third principle of making the remaining, value-creating steps
flow. Such a shift often requires a fundamental shift in thinking for everyone
involved, as functions and departments that once served as the categories for
organizing work must give way to specific products; and a "batch and queue"
production mentality must get used to small lots produced in continuous flow.
Interesting, "flow" production was an even more valuable innovation of Henry
Ford¹s than his better-known "mass" production model. Once value added
activities and necessary non-value activities are identified, improvement efforts
are directed toward making the activities flow. Flow is the uninterrupted
movement of product or service through the system to the customer. Major
inhibitors of flow are work in queue, batch processing and transportation.
These buffers slow the time from product or service initiation to delivery.
Buffers also tie up money that can be used elsewhere in the organization and
cover up the effects of system restraints and other wasted activities.

4. As flow is introduced, let customers pull value from the next upstream
activity.

As a result of the first three principles, lean enterprises can now make a
revolutionary shift: instead of scheduling production to operate by a sales
forecast, they can now simply make what the customer tells them to make. As
Womack and Jones state, "You can let the customer pull the product from you
as needed rather than pushing products, often unwanted, onto the customer."
In other words, no one upstream function or department should produce a
good or service until the customer downstream asks for it.

After waste is removed and flow established, efforts turn to letting the
customer pull product or service through the process. The company must make
the process responsive to providing the product or service only when the
customer needs it— not before, not after.

5. As these steps lead to greater transparency, enabling managers and

teams to eliminate further waste, pursue perfection through continuous
improvement.

After having implemented the prior lean principles, it "dawns on those

involved that there is no end to the process of reducing effort, time, space,
cost, and mistakes while offering a product which is ever more nearly what
the customer actually wants,"

This effort is the repeated and constant attempt to remove non-value activity,
improve flow and satisfy customer delivery needs. While lean focuses on
removing waste and improving flow, it too has some secondary effects. Quality
is improved. The product spends less time in process, reducing the chances of
damage or obsolescence. Simplification of processes results in reduction of
variation. As the company looks at all the activities in the value stream, the
system constraint is removed, and performance is improved.

For example, let’s take a look at the most fundamental cycle within a lean
operation, the order-to-delivery cycle. The top level activities, in sequence,
are taking an order, building the order, and delivering the order. The activities
that do not add value are such things as: order entry, backlog, inventory, and
shipping delays.

In a lean operation we could have the customer enter their own orders;
products made on demand, so we would have no backlog or inventory, and
then product could be shipped overnight for minimal shipping delay (or
downloaded in the case of software).

Lean implementation program

In summary, an example of a lean implementation program would be:-

• Senior management to agree and discuss their lean vision

• Management brainstorm to identify project leader and set objectives

• Communicate plan and vision to the workforce

• Ask for volunteers to form the Lean Implementation team (5-7 works
best, all from different departments)

• Appoint members of the Lean Manufacturing Implementation Team

• Train the Implementation Team in the various lean tools - make a point of
trying to visit other non competing businesses which have implemented lean

• Select a Pilot Project – 5S is a good place to start

• Run the pilot for 2-3 months - evaluate, review and learn from your
mistakes

• Roll out pilot to other factory areas

• Evaluate results, encourage feedback

• Once you are satisfied that you have a habitual program, consider
introducing the next lean tool. Select the one which will give you the biggest
return for your business.