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Brief history of lean manufacturing Just in time Toyota systems Pioneers of lean manufacturing - Ohno and Shingo Benefits of lean manufacturing Theory of constraints Reduction of wastes

--------------------------------------------------------------------------------Prepared By


Vezhavendhan R
Assistant Professor Manufacturing Divn. SMBS, VIT University Vellore- 632014, T.N.


Manufacturing was based on line assembly. Therefore capital was very important. Thereafter the concepts were practiced allover the world. Although very successful in the initial years. This is the continuous flow of value system. they are refilled with new ones. This was the eye opener for other Japanese firms to implement this system. But in the oil crisis in 1973 Japan economy suffered and most of the industries had losses. This led to have a less motivated set of people in the organization. Anything distracting it treated as a waste. They relied on keeping machine busy without thinking about the final outcome. Another major draw back of the system was the poor handling of the human resource. He gave the name “Lean Manufacturing to this system”. They also had to bring down the raw materials from out side. Experiences and knowledge vastly improved the system. This book was aimed to give the history of the automobile with the plant details of some of these manufacturers. Various pioneered work from people like Deming and Juran in the field of quality improvement was used in the system. This was due to the push strategy implemented in the Fords system. They could not compete with the giants like Ford in the foreign markets. This bought built in quality to the system. Also this wasted money unnoticed. But this system got popular in the western world with the book “The machine that change the world” written by James Womack in 1990. They haven’t had much of capital to work with. Parts are manufactured and assembled in a continuous flow. More importantly Ohno and Shingo understood the drawbacks in the push system and understood the role played by the inventory. Also they had to produce in small batches. One of the major drawbacks was that it’s inability to the change. But first or at least famous implementation of something similar to JIT happened a century later in manufacturing of Ford Model T (in 1910) automobile design. They stood out from the rest. This system developed in Toyota from 1949 to 1975 virtually unnoticed by the others even within Japan. But in Japan. Ford system had it drawbacks. Although the concept was mastered in Japan for the Toyota production system. Every part moved without interruptions to the next value adding point.History of lean manufacturing It is a popular fact that JIT system started in the initial years after the World War II in Japan for the Toyota automobile system. where the parts are produced only when they are pulled by the process before that. With these constrains Taiichi Ohno took over the challenge of achieving the impossible. Even Henry Ford may not have understood the basics behind his system. the roots of this concept goes into the sixteenth century. This led to the inflexibility of the system. They had huge stocks in the form of finished goods and in the form of Work In Progress. 2 . This was the eye opener for the western world about this system. But Toyota overcame these problems. This is similar to the concepts in the super markets. Sheigo Shingo for next three decades he built the Toyota production system or the Just In Time system. This led to Pull system rather than the push system. With his right hand man Dr. But the core concept of the Ford system was obeyed. Toyoda family in Japan decided to change their automatic loom manufacturing business to the automobile business. they studied the system very well and saw the problems that Ford system had. But they had few problems to overcome. But it saved lots of money and made Henry Ford a richest on the planet at that time. When the shells are being emptied (that is when people buy the product). Eli Whitney’s concept of interchangeable parts said to be the very initial beginning of this concept. Therefore Toyota had to depend upon the small local markets.

involves – timed arrivals @ workstation – reduced ‘buffer’ stocks – no waste in production system – a “Pull” system thru the plant A management philosophy – Expose problems & bottlenecks – Take away ‘security blanket” – Streamlined production – factory & warehouse networks “The primary elements of Just-in-Time are: • to have only the required inventory when needed.” Other definitions: A system for high-volume production with minimal inventory (raw materials. and lot sizes. queue lengths. • to improve quality to zero defects. The following are few examples of what companies call JIT practices. This concept is vitally important today since in today’s highly competitive world there is nothing we can waste. • and to accomplish these things at minimum cost”. Just In Time The American Production and Inventory Control Society (APICS) defines JIT as “A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity. But there are number of places this system is working well. The synonyms of JIT are as follows: Several companies follow JIT is different ways. finished goods). • to reduce lead times by reducing setup times.But there were many people who just tried to use the tools in lean manufacturing without understanding the meaning of them. • • • • • • IBM HP GE Motorola Japanese Boeing Continuous Flow Manufacturing Stockless Production Repetitive Manufacturing System Management by Sight Short Cycle Manufacturing The Toyota System Lean Manufacturing 3 . WIP. The complete elimination waste is the target of the system. • to incrementally revise the operations themselves. They eventually failed.

JIT Principles: Toyota introduced JIT in the 1950s and they still continue to refine it.. statistical process control and other Japanese innovations. It was first introduced to the North America during the 1980s along with quality circles. They can make use of the following advantages of JIT o o o o o Low inventory investments Good forecasting abilities that can establish customer demand Highly flexible production lines that can produce a selection of different items Simplified administration when there is no inventory to administer Zero waste and reduction of scrap JIT Production: • WHAT IT IS : o Management philosophy o Pull system though the plant • WHAT IT DOES o Attacks waste o Exposes problems and bottlenecks o Achieves streamlined production • WHAT IT REQUIRES o o o o o Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes 4 . JIT enjoyed a bloom initials and later wilted as the grounds proved infertile JIT production follow a few simple rules which are as follows o o o o o o Don’t produce something unless a customer has ordered it Level demand so that work may proceed smoothly throughout the plant Link all processes to customer demand through simple visual tools Maximize the flexibility of people and machinery Improve quality and eliminate defects Reduce raw material and finished goods inventory Advantages of JIT: Companies that are characterized by a highly repetitive work environment are best suited to the JIT approach.

They could not compete with the already existing (Although declining) forces of west. – This made Japanese manufacturers to produce for their local markets. – Limited sources of raw materials. – Therefore they could not compete on the overseas markets.. 5 . simply out performed small manufacturers like Toyota. – labor movements.. with Toyoda family. Japanese manufacturers faced many problems. automobile manufacturers faced another problem.• WHAT IT ASSUMES o Stable environment Elements of JIT Manufacturing o o o o o o o o o Eliminating waste Enforced problem solving and continuous improvement People make JIT work Total Quality Management (TQM) Parallel processing Kanban production control JIT purchasing Reducing inventories Working toward repetitive manufacturing Benefits of JIT o o o o o o o o o o o Inventory levels are drastically reduced: Frees up working capital for other projects Less space is needed Customer responsiveness increases Lead time is reduced Reduced inventory Total product cycle time drops Improved productivity Product quality is improved Scrap and rework costs go down Forces managers to fix problems and eliminate waste. – Meanwhile. when they shifted from textile equipment manufacturing to Automobile manufacturing. or it won’t work! Toyota systems The first step of the manufacturing revolution began in Japan. and limited capital availability are few of them.. In addition. Especially players like Ford. By late 1940’s Japan industry was collapsed and economy was badly affected by the World War II.

but also be competitive in terms of the length of time it takes to deal with things. respect. an unnecessary process step or defective products. Toyota’s reputation for producing quality cars remains strong. is its Toyota Production System (TPS). challenge. in terms of really understanding the sales process and the needs of customers: “Understanding the customer perspective enhances customer service since it allows sales staff to adapt their 6 . We have to be moving and changing all the time and never sit still. improve efficiency and product quality. kaizen can reduce waste through addressing inefficiencies in the provision of customer service. for example. Multi-skilling enables personnel to help colleagues in other teams at busy periods. such as ‘kaizen’. rather than simply aiming for mass production to achieve economies of scale. “You produce a new product and it can be replicated by a competitor almost immediately. ● Challenge: Challenge the status quo. We have to provide not only a competitive service price wise to dealers. assessing the problem directly is more effective than hearing about it through a third party.” Similarly. so you have to be always innovating.” TPS PRINCIPLES The Toyota Production System is based on a number of key principles: ● Just in time: The production process delivers what is needed for the next process when it is needed. Respect also extends to the external environment in which the company operates. which they encounter in their own work processes. to try and improve service levels or create more efficient budgets. ● Genchi genbutsu: If a problem arises. The TPS is based on a number of key principles (see below). disabled customers from assessing the vehicles they are interested in. Ohno with his colleague Shingo created a manufacturing system for next three decades. such as poorly designed showrooms. whether that waste is in the form of excess stock. This has as its central philosophy the aim of ‘the complete elimination of all waste’. it considers the application of genchi genbutsu in car retailers.” “Workers can generate solutions to problems. ● Kaizen: Continuous improvement to eliminate waste. Challenged by these demands Toyota gave the task of making a system which will stand in these conditions to Taichii Ohno. “The key values of the Toyota way are teamwork. kaizen and genchi genbutsu. For example. which is known as Toyota Production System (TPS). ● Teamwork: The causes of problems can arise in areas beyond an individual’s domain. which may restrict. A key reason behind this and the carmaker’s financial success. ● Respect: TPS recognizes the intelligence and ability of all staff and gives them responsibility. ● Jidoka : Embodies the idea that machines will stop production as soon as any problem or defect is identified. which can be translated as continuous improvement to eliminate waste. We are very dealer focused.

but also maintains production pace and provides a benchmark for implementing continuous improvement. The result was a fast and flexible process that gives the customers what they want. The Toyota Production System (TPS) and Lean Production The Toyota Production System is a paradox. problems need to be properly understood through genchi genbutsu. It notifies management immediately if a worker has identified a fault. STANDARDISATION Another key element for quality assurance is a focus on standardisation. This approach — the scientific method—is not imposed on workers. The production line will not be restarted until the reason for the fault has been resolved. and production flow in a Toyota factory is rigidly scripted. it's ingrained in them. which means ‘going to the source’ of the problem and assessing it for yourself rather than relying on information supplied by others. respect through empowerment gives staff autonomy to make decisions. How can that be? After an extensive four-year study of the system in more than 40 plants. rather than persuading customers to buy a car which is available. in negotiating trade-in prices without referring to senior staff. for example. Workers take responsibility for production quality. For employees. Developing and relying on standardised work tasks not only ensures consistently high levels of quality. precisely identifying its location. Yet at the same time. Bowen and Spear (1999) came to understand that at Toyota it's the very rigidity of the operations that makes the flexibility possible.” GENCHI GENBUTSU – GOING TO THE SOURCE Improvements are often made as a result of discovering problems. at the highest quality and most affordable cost. connection. Toyota invented Lean Production in the 1940s and 50s. in order to gain a complete and accurate understanding. every activity. when they want it. it is establishing a hypothesis that is then tested through action. And it stimulates them to engage in the kind of experimentation that is widely recognized as the cornerstone of a learning organization. Respect for customers is shown by the ‘pull’ focus of TPS in providing what customers want. with the power to stop the production line as required.selling approach to establish each customer’s needs.” “Multi-skilling means that staff teams become adaptable and can help each other at busy times. By reducing the communications chain the purchase experience for customers is improved. leading to improved customer service. ANDON BOARD The andon board is a simple but highly-visible electronic sign displaying the status of production lines. Toyota's operations are enormously flexible and responsive to customer demand. 7 . Whenever Toyota defines a specification. On the one hand. Therefore.” “TPS develops respect for employees and customers. but would not necessarily choose to buy. The company focused on eliminating wasted time and material from every step of the production process (from raw materials to finished goods). That's because the company's operations can be seen as a continuous series of controlled experiments.

This long-term philosophy is the guiding post of the company in its continuous quest to offer the best in quality and service to its customers. It generates value for the customer. Unnecessary movement. This can be best illustrated when it ventured into the luxury car industry. Long-term goal should supersede short-term decision making or goals. It did not buy a company that already made luxury cars. Rather. Over processing or incorrect processing. 8 . it created its own luxury division — Toyota House Toyota House is seen in the following picture. its employees. 4.Toyota improved production by: • Eliminating wasted time and resources. Your philosophical mission is and should be the foundation of all your other principles. Waiting or time on hand. Overproduction. It believes that a satisfied customer comes back and gives more business through referrals. The Toyota message is consistent: Do the right thing for the company. grow and align the company towards a common goal that is bigger than making money. 5. Develop. the customer and the society as a whole. 3. One of the keys to success of Toyota is that it lives by the philosophy of self reliance and a “let’s do it ourselves” attitude. 6. Unnecessary transport or conveyance. work. • Building a learning culture for continuous improvement. • Building quality into workplace systems • Finding low-cost and yet reliable alternatives to expensive new technology. 2. 7. Toyota is aligned around satisfying the customer. 8. Excess inventory. the society and the economy. • Perfecting business processes. employees and stockholders. The Heart of the Toyota Production System: Eliminating Waste The point of the TPS is to minimize time spent on non-value adding activities by Positioning the materials and tools as close as possible to the point of assembly. Defects. Unused employee creativity. The Major types of non-value adding waste in business or production process are: 1.

he raised productivity 100%. In addition to his many consulting assignments in other industries. he developed his concepts of "Mistake-Proofing. As Manufacturing Section Chief. this time with Toyota. Dr. Japan where he attended the Saga Technical High School. Shingo worked for several manufacturers in 1945 and 1946 . Shigeo Shingo In 1955." In 1969. SMED was originated when he cut the setup time on a 1000 ton press at Toyota from 4. It is during this period that he first started work on setups by doubling the output of an engine bed planer at Mitsubishi's shipyard.Pioneers of lean manufacturing . Shingo left JMA to start his own consulting company.Ohno and Shingo Taiichi Ohno and Shigeo Shingo were the primary developers of Lean Manufacturing and the Toyota Production System. During the early 1960's. Shingo was the thinker while Ohno had the authority and determination. In 1959. as an outgrowth of work with Matsushita. After graduation from Yamanashi Technical College in 1930 he went to work for the Taipei Railway Company. 9 Shigeo Shingo was born in 1909 at Saga City. In 1943 shingo was transferred to the Amano Manufacturing Plant in Yokohama. Dr. Shigeo Shingo Career Highlights Dr.0 hours to 3.0 minutes. Shingo began another long association.

delivered several important papers and crystallized his ideas on process and plant layout. Toyota was verging on bankruptcy during much of this period and could not afford major investments in new equipment or massive inventories. visits and assignments. and European firms in implementation. China in 1912 and graduated from Nagoya Institute of Technology. In the 1940's and early 1950's. He began to see Toyota's efforts as an integrated system and began to assist several U. Ohno's career accelerated as a result of his success as Assembly Shop Manager and he became an executive Vice President in 1975. Shigeo Shingo has written 14 major books and hundreds of important papers on manufacturing. improved return on investment. He also applied Statistical Process Control. Ohno retired from Toyota and was president of Toyota Gosei. Taiichi Ohno Career Highlights Taiichi Ohno was born in Manchuria. 10 . He joined Toyota in 1932 and for about twenty years worked his way up in the firm. During the 1970's. The 1950's also saw the beginning of a long collaboration with Shigeo Shingo and the refinement of their earlier efforts into an integrated Manufacturing Strategy. a Toyota subsidiary and supplier. From 1946-1954 Shingo had many assignments. Work on productivity and profitability Improving the bottom line by reducing production costs.and also began a long association with the Japanese Management Association (JMA). Dr. Ohno was the assembly manager for Toyota and developed many improvements that eventually became the Toyota Production System. Shingo and his lifelong work. Taiicho Ohno died in Toyota City in 1990. Benefits of lean manufacturing Financial benefits of Lean Manufacturing: • • • • • Reduction of circulating assets (stock and in-process materials) Reduction of capital used Increase in cash-in-hand. He died in 1990. The Shingo Prize is awarded for excellence in manufacturing as a tribute to Dr. Shingo traveled in Europe and North America on many lectures. In the early 1980's.S.

Furthermore. In addition. 11 . In a single piece flow environment. (5) makes the identification of future kaizens simpler. We do not need to dedicate hours isolating and testing the parts in the production run to determine if they meet quality standards. what changes need to be made to the standard work document to ensure that the problem will never resurface again. Improved quality. pick and deliver) them. (4) Enhances overall manufacturing flexibility: We know from our value steam maps that the less inventory in a value steam. these steps include determining if standard work was followed and if so. single piece flow ensures that if there is a quality problem with a particular part. store. Ecological production. (7) improves employee morale. we are sure that the defect has affected just one part. the shorter the lead-time will be from customer order to product delivery. (6) ensures a safer work environment. move. there will not be mountains of inventory to count. (3) Requires less space: As inventory levels are reduced (see above).Industrial benefits of Lean Manufacturing: • • • • Less investment for same level of production. count. there is less opportunity to manufacture defects. since we operate with less inventory. Commercial benefits of Lean Manufacturing: • • • Production in phase with customer demand Reduction of delivery times Greater customer satisfaction. Since the batch size will essentially be one. Kaizen! (2) Reduced Inventory: Implementing single piece flow will require each operation to only produce what is needed by the next operation (the surgeon). if a defect is caught in a single piece flow environment. many other benefits follow. less space and manpower will be required to manage (receive. Increased production at constant investment. the process will eliminate any opportunity to build ahead. At a high level. single piece flow usually requires creating manufacturing cells that squeeze machines as close together as possible so that a single operator can oversee many machines with the least amount of walking motion. As a company reduces the wastes and strives for single piece flow. When followed properly. Of course. inventories will not be allowed to build up. stock. this should not mean that we do not take the appropriate corrective actions to ensure that the problem is not ongoing as it may reoccur. Consequently. lead-times will also drop which will give us more time to react to customer orders (unless we pass off the lead-time gains to the customer). Some of these benefits include (1) improved quality and fewer defects (2) reduced inventory (3) less space required. store and eventually pick. (4) enhancement of overall manufacturing flexibility. more compact plants. We will review each of these benefits in more detail: (1) Improved quality and fewer defects: When batches and lot production is eliminated.

perhaps on another shift. if a particular process can not keep up. The result is dramatic improvements of throughput (or contribution) and customer order due date performance. After all. (7) Improves employee morale: As production problems are identified and solved right away. in any complex system at any point in time. there is most often only one aspect of that system that is limiting its ability to achieve more of its goal. This quick build-in feedback encourages team members to speak up. Also. or an individual's paradigm for looking at the world. if they produce defective product. it will become easier to see production problems. a corporate procedure. These problems will dictate where to focus the next improvement activity. No longer are operators completing the rework of others. The Theory of Constraints provides a practical framework for managing enterprises with a holistic and focused approach and does away with conflicts between local operating level decisions and global company objectives and goals. (6) Ensures a safer work environment: Less inventory means less clutter. more light in the darkest corners of the factory and the opportunity to better lay out equipment and tools. These are . defects and WIP inventories fall. Of course.(5) Makes identifying future kaizens simpler: We have already discussed that in a single piece flow environment. A physical constraint is something like the physical capacity of a machine. since manufacturing cells are occupied by a set number of employees who each know what to do (as defined by standard work). and inventory reduction. As a result of this reduction. like a chain with its weakest link. TOC recognizes two types of constraints that can exist in any business . Theory of constraints The Theory of Constraints (TOC) is a philosophy of management and improvement originally developed by Eliyahu M. there is less opportunity for unexpected movements. Instead. this becomes obvious almost the minute it happens. TOC brings in the powerful 'five focusing step' methodology to identify the constraint in the company and systematically attack the associated problems. if defective inventories build up next to a particular machine or if overall customer demand can not be met. After all. that defective product will most likely be noticed in the very next process. team members gain more ownership of their work. this assumes that an appropriate goal has been defined.the size notwithstanding.physical constraints and non-physical constraints. 12 . For that system to attain any significant improvement that constraint must be identified and the whole system must be managed with it in mind. take corrective action and ensure that the problem never resurfaces. identify a problem. It is based on the fact that. they are more likely to report themselves. Goldratt . A non-physical constraint might be something like demand for a product. The Theory of Constraints (or TOC as it is called) is a one of the most profound developments in the practical aspect of making organizational decisions in situations in which constraints exist. A constraint is anything in an organization that limits it from moving toward or achieving its goal.

The process must be reapplied. 3. policies. Supply Chain. Logistics. and procedures that have developed over time. Elevate the system's constraints. 4. If the constraint is broken. DR. It is very important not to let inertia become a constraint. If we continue to work toward breaking a constraint (also called elevating a constraint) at some point the constraint will no longer be a constraint. and develops an alternate approach to managing projects. Most constraints in organization are of their own making. Project Management and other important segments. when we finally break a constraint. The constraint will be broken. Many times. there will be another constraint. Most constraints in organizations today are policy constraints rather than physical constraints. Since the constraints are keeping us from moving toward our goal.. all the resources are applied that can assist in breaking them. 2. would you like to • • • • Understand the root cause for all these issues Significantly improve cash availability Improve Vendor reliability Improve On Time delivery 13 . providing benefits for the entire company. Once it is decided how to manage the constraints within the system. improve communication and stimulate new solutions. The application of Theory of Constraints reveals the reasons projects never finish on time or within budget or within specifications.The steps in applying TOC are as follows: 1. When that happens. They are the entrenched rules. Identify the system's constraints. somewhere else in the system that is limiting progress to the goal. Do you have any one or more of the following issues in your organization? • • • • • Severe Cash Shortage Vendors not delivering material on time Not meeting customer schedules Falling Sales Shrinking Profits And. Decide how to exploit the system's constraints. Subordinate everything else to the above decision in Step 2. how about the majority of the resources that are not constraints? The answer is to manage them so that they just provide what is needed to match the output of the constrained resources. we do not go back and review and change the rules and policies that caused the constraint initially. ELIYAHU GOLDRATT'S "THEORY OF CONSTRAINTS" SERIES will serve as one of the most effective platforms to improve business productivity in Production. 5. return to Step 1. THE GOLDRATT-THEORY OF CONSTRAINTS as a holistic approach will enhance the quality of decision-making. perhaps many times.

Since I feel this eighth category is very important I will go by this categorization. For an example you have to transport the goods at least a little amount even within the working flow without adding any value to that. Every organization wastes majority of their resources. ERP. SCM and CRM. In some instances one extra category is added to make the total of eight waste categories. Some might be not possible due to technical concerns. each one of these is interconnected. Dr. these wastes are categorized in to seven categories. For the ease of understanding these and due to many other similarities. Over production Waiting Work In Progress (WIP) Transportation Inappropriate processing Excess motion or ergonomic problems Defected products Underutilization of employees Although in deferent groups. Anyway you will have to get down the raw materials for the manufacturing of product from far places. TPM. If you try to avoid some of these wastes 14 . Following are these waste categories.• • Increase sales significantly Increase profits Addressing the above issues would require fundamental paradigm shifts in policies and measurements. Every waste you will come across in your organization or even in day-to-day life will fall into one of these categories. As I explained earlier. Reduction of wastes Manufacturing wastes Waste is defined as anything that does not add value to the final product. Therefore one change will affect the total system. the wastes are everywhere in many different forms.Theory of Constraints brings in the powerful methodology to identify the constraint in the company and systematically attack the associated problems. You will see later in this chapter how closely these are interconnected to make the mesh of wastes in every organization. Therefore it is worthier to have a closer look at these wastes. But in practical situations removing all the wastes might not be possible. These can not be avoided. the answer is yes. it also focuses the company's investment in initiatives such as TQM. Besides creating an excellent work environment and motivating employees. Can all the wastes be avoided? If I am to give a more theoretical answer for the above question. Eli Goldratt's . some are due to various obvious factors. Industry derives a host of advantages while implementing TOC. Yes you can avoid all the wastes in the system in theory.

This ties up valuable labor and material resources that might otherwise be used to respond to customer demand. Therefore nothing is permanent. or erratic demand. By reducing inventory. not at all. equipment. Lean practitioners identify seven types of waste: 1. and many developments coming on. 15 . tools. 3. 2. • Excess (or early) production—Producing more than the customer demands. This wastes valuable space and cash. Always you have to give the importance to the bigger picture to stop creating a new waste in the system in the effort of removing one. Therefore it is very important to categorize the wastes according to availability of them. Always remember the bigger picture is what that always matters. Quality must be built into the manufacturing process so that parts are produced correctly the first time.that will cost you much more in the bigger picture. move it to an inventory location. Also when you are removing some of the problems from the avoidable category. • Processing—Doing more work on a part than is necessary. You will get tons of chances to overcome these problems. information. Always an overall reduction should be there. 5. This wastes time and money. lack of communication. • Inventory—Storing more material than is needed. When you decide on this or at least have some idea about the wastes which are avoidable. etc. you fill find the ways to tackle some problems in this category as well. Lot of learning. then it is the time to understand the importance of removing each waste from the system. experimenting and thinking has to go into this process. When you do that all the wastes in the organization will fall in to the one of the following two categories. Material should be delivered and stored at its point of use. or producing it earlier than the customer needs it. wastes that are avoidable wastes that are unavoidable Deciding what are the avoidable and what are unavoidable will require some good decision making. Waste Reduction Waste is commonly defined as non-value-added activity. This may be a result of poor planning. Why receive material at a receiving dock. • Transportation (to/from processes)—Moving material more often than necessary. and then move it to the production floor when it can be delivered and stored where it is used? 4. What about the other wastes which we thought un removable. With the time there are new technologies. overbooking of equipment. • Delays—Waiting for materials. plans for warehouse expansion can usually be postponed or canceled. late supplier deliveries. including inspection and reworking. Should they remain untouched? No. A tool like pareto curve will be an ideal tool to understand the problems according to their importance of removing them.

Kaizen Costing And Cost Analysis. picking parts. Defects consume considerable resources.6. This is usually the result of poorly planned work layout and workflow. --------------------------------------------END OF UNIT-1 ----------------------------------------- 16 . • Movement—Excess motion of employees in getting tools. Engineering And Change Management. or moving from one point to another. Total Productive Maintenance. but more resources will be consumed to resolve the eventual complaints. • Defects—Defective parts. In addition to the original materials and labor used to manufacture the part. not only will unnecessary shipping costs be lost. A variety of techniques are available for reducing or eliminating waste. Total Quality Management. These Techniques Include • • • • • • Value Stream Analysis. extra labor and machine time are required to fix the defective part. And Document Management. If the defective part is sold to a customer. 7.