Lean operation A flexible

system that uses minimal

resources and produces highquality
goods or services.

Just-in-time (JIT) A highly

coordinated processing system
in which goods move through
the system, and services are
performed, just as they are
needed.
LEAN
 began as lean manufacturing in the mid-1900s.
 developed by the Japanese automobile manufacturer Toyota
 The ultimate goal of lean is a balanced system

Characteristics of Lean Systems

1. Waste reduction —A hallmark of lean systems.
2. Continuous improvement —Another hallmark; never-ending efforts to improve.
3. Use of teams —Cross-functional teams, especially for process improvement.
4. Work cells —Along with cellular layouts allow for better communication and use of people.
5. Visual controls —Simple signals that enable efficient flow and quick assessment of
6. operations.
7. High quality —In processes and in output.
8. Minimal inventory —Excess inventory is viewed as a waste.
9. Output only to match demand —Throughout the entire system; referred to a “demand pull.”
10. Quick changeovers —Enables equipment flexibility and output variety without
11. disruption.
12. Small lot sizes —Enables variety for batch production.
13. Lean culture —The entire organization embraces lean concepts and strives to achieve them.

Five principles
1. Identify customer values.
2. Focus on processes that create value.
3. Eliminate waste to create “flow”.
4. Produce only according to customer demand.
5. Strive for perfection.

Benefits
1. Reduced waste due to emphasis on waste reduction.
2. Lower costs due to reduced waste and lower inventories.
3. Increased quality motivated by customer focus and the need for high-quality processes.
4. Reduced cycle time due to elimination of non-value-added operations.
5. Increased flexibility due to quick changeovers and small lot sizes.
6. Increased productivity due to elimination of non-value-added processes.

Risks
1. Increased stress on workers due to increased responsibilities for equipment changeovers, problem
solving, and process and quality improvement.
2. Fewer resources (e.g., inventory, people, time) available if problems occur.
3. Supply chain disruptions can halt operations due to minimal inventory or time buffers.
Building block of Lean Prodn system:
1. Product design.
2. Process design.
3. Personnel/organizational elements.
4. Manufacturing planning and control

Goals and supporting goals of LEAN:

 The ultimate goal of lean is a balanced system
 The degree to which the overall goal is achieved depends on how well certain supporting goals are
achieved:
1. Eliminate disruptions:
Disruptions have a negative influence on the system by upsetting the smooth flow of products through
the system, and they should be eliminated.
caused by a variety offactors, such as poor quality, equipment breakdowns, changes to the schedule,
and late deliveries.
2. Make the system flexible
A flexible system is one that is robust enough to handle a mix of products, often on a
daily basis, and to handle changes in the level of output while still maintaining balance and
throughput speed. This enables the system to deal with some uncertainty.
3. Eliminate waste, especially excess inventory:
 Waste represents unproductive resources; eliminating waste can free up resources and
enhance production. Inventory is an idle resource, taking up space and adding cost to the
system.
TYPES OF WASTES:
1. Excess inventory —beyond minimal quantities, an idle resource takes up floor space
and adds to cost.
2. Overproduction —involves excessive use of manufacturing resources.
3. Waiting time —requires space, adds no value.
4. Unnecessary transporting —increases handling, increases work-in-process inventory.
5. Processing waste —makes unnecessary production steps, scrap.
6. Inefficient work methods —reduce productivity, increase scrap, increase work-inprocess
inventory.
7. Product defects —require rework costs and possible lost sales due to customer
dissatisfaction.
8. Underused people—relates to mental and creative abilities as well as physical abilities.

The kaizen philosophy for eliminating waste is based on the following tenets:
1. Waste is the enemy, and to eliminate waste it is necessary to get the hands dirty.
2. Improvement should be done gradually and continuously; the goal is not big improvements
done intermittently.
3. Everyone should be involved: top managers, middle managers, and workers.
4. Kaizen is built on a cheap strategy, and it does not require spending great sums on technology
or consultants.
5. It can be applied anywhere.
6. It is supported by a visual system: a total transparency of procedures, processes, and
values, making problems and wastes visible to all.
7. It focuses attention where value is created.
8. It is process oriented.
9. It stresses that the main effort of improvement should come from new thinking and a
new work style.
10. The essence of organizational learning is to learn while doing.