Lean Transformation - A Step by Step Implementation Guide

LEAN
TRANSFORMATION
A Complete Transformation Hand Book
(For any size of business)
BY
JAPAN TRIVEDI
Author, Consultant & Trainer
(BE, PGBM, Dip in LEAN, LSSBB, MFCA – APO, Japan)
This Page is intentionally kept Blank
Lean Transformation
– A step by step implementation guide
Copyright © [2017] [Japan Trivedi] All rights reserved.
First paperback edition printed [2017] in INDIA
ISBN 978-93-5291-119-6
No part of this book shall be reproduced or transmitted in any form

or by any means, electronic or mechanical, including
photocopying, recording, or by any information retrieval system
without written permission of the publisher. Published by [SELF
PUBLISHED]
For more copies of this book, please email:

japan@japantrivedi.com
Designed and Set by EFFORTS Consulting

[www.effortsconsulting.com]
Printed in Ahmedabad
Cover design by EFFORTS Consulting
Although every precaution has been taken in the preparation of

this book, the publisher and author assume no responsibility for
errors or omissions. Neither is any liability assumed for damages
resulting from the use of this information contained herein.
ACKNOWLEDGMENTS
No person operates in vacuum. I have been the beneficiary of the

wisdom of many people over the years. It was no less true during
the creation of this book. My well wisher and partner patiently kept
my feet on the ground whenever I began to stray from reality. My
Father, Kamendu & Mother, Ramila always be source of
inspiration in my career, achieving the goals and writing the book.
My wife Grishma and daughter Shveni single handedly kept our
life together regardless of where my head was at any point of time.
Thank you all for your support and belief in me.
My successful career in this field is the result of an accumulation
of both knowledge and experience. I would like to acknowledge
the opportunity and experience gain during my association with
all esteemed organizations, beautiful people and all my mentors.
Early training and work a day experiences were learned through
my association with various organizations till today. Much of these
experiences are reflected in this book. Practical application of my
knowledge and experience has been tested under fire from the
dozens of manufacturing and service companies where I was
invited as consultant to help with the improvement of their
operations and practices. Learning has always been a symbiotic
relationship. I have learned much from all of these opportunities
and I thank all of them for this education.
PREFACE
In times of economic ups and down, companies often start looking

for ways to cut costs. They try to optimize business processes,
lay off staff, cut back on investments, et cetera. But by that time it
is often too late: after all, improvement ought to be a continuous
and ongoing process within any organization. Not only should
there be constant attention for improving efficiency and quality but
also for increasing flexibility, both internally and externally. The
aim should be to achieve short production lead times, for both
new products and services to be developed and for existing
products/services.
Practice has shown that it is not easy to start such an
improvement process in an organization. The most important
challenge in doing so is how to set about motivating the
management and all the employees to such an extent that they
see improvement as an integral part of their day to day activities.
The methods most commonly used are often rather theoretical,
which means that users find it difficult to put them into practice.
We have some fifteen years of practical experience in optimizing
processes in various types of companies. Together we have
developed an approach for improving performance; a scenario for
‘Lean Transformation’. It sets out a course for steering an
operational organization to top-level performance. In developing
our approach, we selected the best elements from existing
methods. Together these elements constitute a new approach,
one that produces a considerable impact within a short time and
with relatively little effort. The approach is practical, easy to
understand and simple to implement in a wide range of
companies and organizations; in the profit and non-profit sectors
alike.
This book is intended for all managers who are convinced that the
continuous elimination of waste is a precondition for survival.
Managers who are looking for a manageable approach that puts
to use much of the improvement potential that is already present.
We have implemented the methodology at various organizations
in recent years and have gained experience in applying it in a
diversity of organizations. We now consider it time to share our
experience with a wider public. In doing so, we also hope to
stimulate many others into making the continuous improvement
of an entire organization their goal. In our experience the pleasure
this approach brings, the creativity it demands and the
enthusiasm it generates, are sure to lead to success.
We wish to thank our colleagues at Efforts Consulting & Japan’s
Training System, Various thinkers of Lean and Special ones for
their comments and the discussions we had with them. In
addition, we also thank many colleagues at the organizations
where we were allowed to implement this method and a number
of whom also reviewed our manuscript.
CONTENT
1: A BRIEF HISTORY OF LEAN

1.1 Early Developments 3
1.2 The Ford System 5
1.3 Toyota Production System 5
1.4 Lean Today 7
2: FUNDAMENTALS OF LEAN TRANSFORMATION

2.1 Throughput time 10
2.2 Cycle Time 12
2.3 Takt Time 13
2.4 Value Adding Ratio 16
2.5 Inventory Turns 17
2.6 Seven Types of wastes (Mudas) 17
2.7 Lean Model 26
2.8 9 Steps towards making World
Class Organization 29
3: 5S & VISUAL MANAGEMENT

3.1 Introduction to the 5S Philosophy: 32
3.2 What is 5S? 33
3.3 Benefits of 5S on Workplace 34
3.4 5S Checklist 51
3.5 Visual Management 56
4: FLOW MANAGEMENT
4.1 Value Stream Mapping 64
4.2 Spaghetti Diagram 70
4.3 Cellular Design 74
5: TOTAL PRODUCTIVE MAINTENANCE (TPM)

5.1 TPM History 78
5.2 Definition of TPM 79
5.3 TPM focuses 79
5.4 8 pillars of TPM 80
5.5 TPM Measures 99
5.6 TPM Board 103
5.7 Losses in Process Industry 105
5.8 Single Minute Exchange of Dies
SMED)/ Quick Changeover 106
5.9 TPM Matrix 110
6: QUALITY MANAGEMENT
6.1 History of TQM 112
6.2 TQM Timeline 112
6.3 Basic Quality Tools 114
6.4 Poka Yoke 127
6.5 KAIZEN 129
7: SERVICE MANAGEMENT
7.1 Introduction 132
7.2 Developing a Purchase Part Market
(Supermarket) 133
7.3 Plan to Operate The Purchase
Part Market 137
7.4 KANBAN - “SIGN” or
“SIGNBOARD” or “SIGNAL” 143
8 LEAN in SERVICE
8.1 Introduction of service 154
8.2 Wastage in Service 155
8.3 Basic steps of improvements 155
8.4 Principles of Lean Service 157
8.5 Business Process Mapping 158
Lean Transformation – A complete transformation hand book
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“Why not make the work easier and more

interesting so that people do not have to
sweat? The Toyota style is not to create
results by working hard. It is a system that says
there is no limit to people’s creativity. People
don’t go to Toyota to ‘work’ they go there to
‘think’”
Taiichi Ohno
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1: A BRIEF HISTORY OF LEAN
Lean Manufacturing is being practiced since its origination

from the Toyota Production System or Just In Time
Production, Henry Ford and other predecessors.
The lineage of Lean manufacturing and Just In Time (JIT)

Production goes back to Eli Whitney and the concept of
interchangeable parts. Fig 1 traces the timeline of the long
history.
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1.1 Early Developments

Eli Whitney is known as the inventor of the cotton gin.
However, the gin was a minor accomplishment compared to
his perfection of interchangeable parts.
Whitney developed this about 1799 when he took a contract

from the U.S. Army for the manufacture of 10,000 muskets at
the exceptionally low price of $13.40 each
For the next 100 years, manufacturers equipped themselves

only with individual technologies. During this time our system
of engineering drawings developed, modern machine tools
were perfected and large scale processes such as the
Bessemer process for making steel held the center stage.
As products moved from one discrete process to the next

through the logistics system and within factories, few people
concerned themselves with integral questions like:
• What happened between processes
• How multiple processes were arranged within the

factory
• How the chain of processes functioned as a system.
• How each worker went about a task
This changed in the late 1890's with the work of early

Industrial Engineers.
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Frederick W. Taylor pioneered focusing workers and more

specifically on work methodology (process). The result was
(minute study) Time Study and standardized work. Taylor
tagged his ideas as Scientific Management
The concept of applying science to management was sound

but Taylor simply ignored the behavioral sciences. Taylor was
a controversial figure, In addition, he had a peculiar attitude
towards factory workers which hampered his studies to a
large extent.
Frank Gilbreth (Cheaper By The Dozen) added Motion

Study and invented Process Charting. Process charts
focused attention on all work elements including those non-
value added elements which normally occur between the
"official" elements.
Lillian Gilbreth brought psychology into the mix by studying

the motivations of workers and how attitudes affected the
outcome of a process. There were, of course, many other
contributors. These were the people who originated the idea
of "eliminating waste", a key tenet of JIT and Lean
Manufacturing.
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1.2 The Ford System

Starting about 1910, Ford and his right-hand-man, Charles
E. Sorensen, fashioned the first comprehensive
Manufacturing Strategy. They took into consideration all the
elements of a manufacturing system-- people, machines,
tooling, and products-- and arranged them in a continuous
system for manufacturing the Model T automobile. Ford was
so incredibly successful he quickly became one of the world's
richest men and put the world on wheels. Ford is considered
by many to be the first practitioner of “Just In Time” and “Lean
Manufacturing”.
Ford's success inspired many others to copy his methods. But

most of those who copied did not understand the
fundamentals.
1.3 Toyota Production System

At Toyota Motor Company, Taichii Ohno and Shigeo Shingo,
began to incorporate Ford production and other techniques
into an approach called Toyota Production System or Just In
Time . They recognized the central role of inventory.
The Toyota people also recognized that the Ford system had
contradictions and shortcomings, particularly with respect to
employees. With General Douglas MacAurthur actively
promoting labor unions in the occupation years, Ford's harsh
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attitudes and demeaning job structures were unworkable in

post-war Japan. They were also not viable in the American
context, but that would not be evident for some years.
America's "Greatest Generation" carried over attitudes from
the Great Depression that made the system work in spite of
its defects.
Toyota soon discovered that factory workers had far more to

contribute than just muscle power. This discovery probably
originated in the Quality Circle movement. Ishikawa, Deming,
and Juran all made major contributions to the quality
movement, which culminated in team development and
cellular manufacturing.
Another key discovery involved product variety. The Ford

system was built around a single, never changing product. It
did not cope well with multiple or new products.
Shingo, and Ohno's suggestion, did inception to work on the

setup and changeover problem. Reducing setups from
minutes to seconds, allowed small batches and an almost
continuous flow like the original Ford concept. It introduced a
flexibility that Henry Ford thought was needless.
All of this took place between about 1949 and 1975,and some
of it was adopted by other Japanese companies.
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Soon the productivity and quality gains became prominently

evident to the outside world, which made the American
executives head towards Japan for an integrated study.
. They brought back, mostly, the superficial aspects like
KANBAN cards and quality circles. Early attempts to
emulate Toyota failed because they were not integrated into
a complete system and because only few understood the
underlying principles.
1.4 Lean Today

As these words are written, Toyota, the leading lean exemplar
in the world, stands poised to become the largest automaker
in the world in terms of overall sales. Its dominant success in
everything from rising sales and market shares in every global
market, not to mention a clear lead in hybrid technology,
stands as the strongest proof of the power of lean enterprise.
This continued success has over the past two decades
created an enormous demand for greater knowledge about
lean thinking. There are literally hundreds of books and
papers, not to mention thousands of media articles exploring
the subject, and numerous other resources available to this
growing audience.
As lean thinking continues to spread to every country in the

world, leaders are also adapting the tools and principles
beyond manufacturing, to logistics and distribution, services,
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retail, healthcare, construction, maintenance, and even

government. Indeed, lean consciousness and methods are
only beginning to take roots among senior managers and
leaders in all sectors today.
8
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"Improvement usually means doing something

that we have never done before."
Shigeo Shingo
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2: Fundamental of LEAN TRANSFORMATION
2.1 Throughput time
Manufacturing throughput time “is the amount of time

required for a product to pass through a manufacturing
process, thereby being converted from raw materials into
finished goods”. The concept also applies to the processing
of raw materials into a component or sub-assembly. The time
required for something to pass through a manufacturing
process covers the entire period from when it first enters
manufacturing until it exits manufacturing - which includes the
following time intervals:
• Processing time - This is the time spent transforming

raw materials into finished goods.
• Inspection time - This is the time spent inspecting raw
materials, work-in-process, and finished goods,
possibly at multiple stages of the production process.
• Move time - This is the time required to move items
into and out of the manufacturing area, as well as
between workstations within the production area.
• Queue time - This is the time spent waiting prior to the
processing, inspection, and move activities.
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Throughput
Organizati
In on Ou
(Elements,
Throughput time is summation of activities; activity can be
value adding activity or non value adding. There are three
basic criteria which decide whether it is a value adding activity
or non value adding activity:
• On each stage there should some change in product’s

size, dimensions, colour or structure
• That activity should be as per customers’ demand.
• Company should be earning from that activity
If these three conditions are fulfilled then the activity can be

considered as a value adding activity. And if not following than
that activity is called as non value adding activity
(NVA)/waste/MUDA (In japanese) Effective implementation
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of Lean Management increases value adding ratio (VAR),

which could be calculated using NVA data.
How is Lean defined?
Lean means to make organizations fit by identify and reducing

waste and if possible remove the waste. As the wastes
reduced the through put time will be reduced which will help
organization to serve better to the customers.
2.2 Cycle Time
The time taken to do one repetition of any particular process,

typically measured from “Start to Start” - the starting point of
one product’s processing in a specified machine or operation
until the start of another similar product’s processing in the
same machine or process.
Cycle time is commonly categorized into:
Manual Cycle Time: The time loading, unloading,

flipping/turning parts, adding components to parts while still
in the same machine/process.
Machine Cycle Time: The processing time of the machine

working on a part.
Auto Cycle Time: The time a machine runs un-aided

(automatically) without manual intervention.
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Overall Cycle Time: The complete time taken to produce a

single unit. This term is generally used when speaking of a
single machine or process.
Total Cycle Time: This includes all machines, processes,

and classes of cycle time through which a product must pass
to become a finished product. This is not Lead Time, but it
does help in determining it.
2.3 Takt Time:
Takt time, derived from the German word Taktzeit,

translated best as meter, is the average time between the
start of production of one unit and the start of production of
the next unit, when these production starts are set to match
the rate of customer demand.
For example, if the customer wants to buy 10 units per week,

and the units are produced during a 40-hour work week, then
the average time between the start of one unit and the next
should be, which, given a steady flow through the production
plant, will result in a unit being completed every 4 hours
(which equates to 10 units per week). A common
misconception is that takt time is related to the time it takes
to actually make the product - whether it takes 4 minutes to
produce the product or whether it takes 4 years to produce
the product, the takt time should be 4 hours in this example
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(of course, the time it takes to produce the product will impact
the magnitude of the number of units actually in production at
any point in time).
Assuming a product is made one unit at a time at a constant

rate during the net available work time, the takt time is the
amount of time that must elapse between two consecutive
unit completions in order to meet the demand.
Takt time can be first determined with the formula:
Where
T = Takt time, e.g. [work time between two consecutive
units]
Ta = Net time available to work, e.g. [work time per period]
D = Demand (customer demand), e.g. [units required per
period]
Net available time is the amount of time available for work to

be done. This excludes break times and any expected
stoppage time (for example scheduled maintenance, team
briefings, etc.).
Example:
If there are a total of 8 hours (or 480 minutes) in a shift (gross
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time) less 30 minutes lunch, 30 minutes for breaks (2 × 15

mins), 10 minutes for a team briefing and 10 minutes for basic
maintenance checks, then the net Available Time to Work =
480 - 30 - 30 - 10 - 10 = 400 minutes.
If customer demand was, say, 400 units a day and one shift
was being run, then the line would be required to output at the
rate of a minimum of one part per minute in order to be able
to keep up with customer demand.
In reality, over the longer term people and machines cannot

maintain 100% efficiency and there may also be stoppages
for other reasons. Allowances should be made for these
instances and thus the line will be set up to run at a faster rate
to account for this.
Also, takt time may be adjusted according to requirements

within the company. For example, if one department delivers
parts to several manufacturing lines, it often makes sense to
use similar takt times on all lines to smooth out flow from the
preceding station. Customer demand can still be met by
adjusting daily working time, reducing down times on
machines and so on.
Some of the early literature uses cycle time for takt time.
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• Synchronize pace of production to match pace of

sales
• Rate for producing a product, and its components,
based on sales rate
Takt Time : Your available work time per shift

Customer demand per shift
Example : 27,600 seconds/ 690 pieces = 40 sec
It could be interpreted as customer is buying this product at

a rate of one every 40 seconds.
2.4 Value Adding Ratio
The value-adding ratio (VAR) can measure improvement in

all processes in all organizations. For a given process, VAR
equals the time devoted to process steps of interest to the
customer with the total process cycle time. The typical VAR
is less than 10%, often less than 1%. Therefore, the greatest
room for process improvement is in reducing wasted time in
the non-value-added steps of the process. Although it is
unrealistic to expect VARs to come close to 100%, world-
class organizations attain VARs much higher than 20%.
Improving VAR should be done without absolute targets and
without compromising quality.
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2.5 Inventory Turns
A ratio showing how many times a company's inventory is

sold and replaced over a period. The days in the period can
then be divided by the inventory turnover formula to
calculate the days it takes to sell the inventory on hand or
"inventory turnover days."
Generally calculated as: Sales / Inventory
However, it may also be calculated as:
Cost of Goods Sold / Average Inventory
2.6 Seven Types of wastes (Muda)
There are seven types of Muda (wastes) in lean which can

be identified in any manufacturing company.
1. Muda of Transportation
2. Muda of Motion
3. Muda of Waiting
4. Muda of Rejection
5. Muda of over processing
6. Muda of Inventory
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7. Muda of Over production and one more Muda

discussed in organizations these days which is Muda
of Unused Human Potential
1. Muda of Transportation
Definition: Any Material movement that does not

directly support immediate production.
Characteristics:
• Complex inventory management

• Difficult and inaccurate Inventory counts
• Excess material racks
• Excess Transportation of Equipment and
shortage of associated parking spaces
• High rates of Material Transport Damaged
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• Multiple Material Storage Locations

• Poor storage to production floor space ratio
Causes:
• Improper facility layout

• Large buffers and In process KANBAN
• Large lot processing
• Large lot purchasing
• Poor production planning
• Poor scheduling
• Poor work place organization
Example:
Production units are moved off the production floor to

a parking area in order to gather a “full lot” for a batch
production.
2. Muda of Motion
Definition: Any movement of people which does

not contribute added value to the product or service
Characteristics:
• Excess moving equipment

• Excessive reaching or bending
• Unnecessarily complicated procedure
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• Excessive tool gathering

• Widely dispersed material/tools/equipment
Causes:
• Ineffective equipment, office and plant layout

• Lack of Visual Control
• Poor process documentation
• Poor work place organization
Example:
It is not uncommon to see operator make multiple trips

to the tool crib at the beginning of a job. A lack of
proper organization and documentation is in fact the
cause for many types of waste.
3. Muda of Waiting Time
Definition: Idle time that occurs when

codependent events are not fully synchronized
Characteristics:
• Idle operators waiting for equipment

• Lack of operator concern for equipment
breakdowns
• Production bottlenecks
• Production waiting for operators
• Unplanned equipment downtime
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Causes:
• Inconsistent work methods

• Lack of proper equipment /materials
• Long setup times
• Low man/machine effectiveness
• Poor equipment maintenance
• Production bottlenecks
• Skill monopolies
Examples:
An operator arrives at a work station only to find he

must wait because someone else is using the
equipment for production
A production lot arrives at a processing center only to

find that the only qualified operator is not available
4. Muda of Rework/Defect
Definition: Repair or rework of a product or

service to fulfill customer requirements as well as
scrap waste resulting from materials deemed to be
un-repairable or un-reworkable
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Characteristics:
• Complex material flow

• Excess finished goods inventory
• Excessive floor space/tools/equipment
• Excessive manpower to inspect/rework/repair
• High customer complaints/returns
• High scrap rates
• Poor production schedule performance
Causes:
• Excessive variation
• High inventory levels
• Inadequate tools/equipment
• Incapable / Incompatible processes
• Insufficient training
• Poor layouts
5. Muda of Over Processing
Definition: Redundant effort (production or

communication) which adds no value to a product or
service
Characteristics:
• Endless product/process refinement

• Excessive copies/excessive information
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• Process bottlenecks
• Redundant reviews and approvals
• Unclear customer specifications
Causes:
• Decision making at inappropriate levels
• Inefficient policies and procedures
• Lack of customer input concerning
requirements
• Poor configuration control
• Spurious quality standards
Examples:
Time spent manufacturing product features which are

transparent to the customers or which the customer
would be unwilling to pay for.
Work which could be combined into another process
6. Muda Inventory
Definition: Any supply in excess of process

requirements necessary to produce goods or services
in a just in time manner
Characteristics:
• Additional material handling resources (Men,

equipment, racks, storage space)
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• Extensive rework of finished goods

• Extra space on receiving docks
• Long lead times for design changes
Causes:
• Inaccurate forecasting of system

• Incapable processes
• Incapable suppliers
• Local optimization
• Long change over times
• Poor inventory planning
• Poor inventory tracking
• Unbalanced production processes
Example:
Large lot purchases of raw material which must be

stored while production catches up
7. Muda of Over Production:
Definition: Producing more than needed, faster

than needed or before needed
Characteristics:
• Batch processing
• Building Ahead
• Excess equipment / Oversized equipment
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• Excess Capacity / Investment

• Excess Scrap due to obsolescence
• Excess storage racks
• Inflated work force
• Large lot size
• Large WIP and finished goods inventories
• Outside storage
• Unbalanced material flow
Causes:
• Automation in the wrong places

• Cost accounting practices
• Incapable processes
• Faulty reward system
• Lack of communication
• Lengthy setup times
• Local optimization
• Low uptimes
• Poor planning
Example:
Units which were produced in anticipation of future

demand are often scrapped due to configuration
changes.
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2.7 Lean Model
(Ref: Toyota Way Philosophy)
Lean Model sustains on five pillars .viz. flow Management,

Total Productive Maintenance, Quality Management,
Service Management, Human Management.
1. Flow Management (FM): Flow Management pillar

include tools such as
- 5S
- Spaghetti Diagram
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- Cycle time –Takt time

- Line Balancing
- One piece flow
2. Total Productive Maintenance (TPM): Total

Productive Maintenance pillar include tools such as
- 8 pillars TPM
- COT checklist
- Equipment Color Coding
- Plant Standardization
- OEE,MTBF, MTTR calculation-full forms
- SMED(Single Minute Exchange of Die)
3. Quality Management (QM): Total Quality

Management pillar include tools such as
- Pareto Analysis
- Fishbone Diagram
- 5Why Analysis
- Corrective Action Planned/Pokayoke
4. Service Management (SM): Service Management

pillar include tools such as
- KANBAN
- Business Process Mapping
- Inventory Management
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- Stores Management
5. Human Management (HM): Human Management

pillar include tools such as
- Kaizen
- Quality Circle
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2.8 9 Steps for World Class Organization:
Steps Muda / Challenge Lean Pillars & Tools

Lack of awareness of
Step 1 Lean management Hands on Training
tools
Step 2 Muda of transportation Total Flow Management

(TFM)
5S, Muda (Wastage),
Step 3 Muda of Motion Muda (Process
Inconsistencies), Muda
(Overburden)
Total Flow Management,
Total Productive
Step 4 Muda of Waiting Maintenance, Total
Quality Management,
Lean Office
Total Productive
Muda of
Step 5 Maintenance, Total
Defects/Rework Quality Management,
Lean Office
Muda of Over
Step 6 Process Standardisation
Processing
Step 7 Muda of Inventory KANBAN, Total Service

Management
Muda of Over One Piece / Small Batch
Step 8 Flow, Just In Time (JIT),
Production
Pull Manufacturing
Muda of unused
Step 9 Total Human
Human Talent Management
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NOTES:
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"Lean is about constant ticking, not occasional

kicking."
Alex Miller
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3: 5S & Visual Management
3.1 Introduction to the 5S Philosophy:
The 5S philosophy focuses on effective workshop

organization and standard work procedures. It is based on
five Japanese words that begin with S. This document
contains a translation of those words and their corresponding
meanings in values into the English language
5S programs have been implanted in organizations and the

world as a way to improve production values while also
improving employee morale and Safety.
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3.2 What is 5S?
“5S” or "Lean 5S" is a method to promote a safer, cleaner,

and better-organized workplace – often a factory, but the 5S
method can be applied to almost any work environment:
• Office space – from cubicles to mail rooms to library

space
• Computer or server rooms, including online files and
folders as well as physical objects
• Work bench areas
• Warehouses, storage sheds and outdoors storage
areas
• Hospitals and health care facilities
If an area can become messy, cluttered, disorganized,

hazardous or dirty – 5S can improve it.
The 5S method is not a one-shot cleaning campaign. 5S

leads to a new quality standard which results in sustained
improvements. As well, 5S provides the methodology and
discipline to live up to the new standards.
5S should spell the end to one-time cleanups and is a part of,

and often the first step in Lean Manufacturing
implementation.
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3.3 Benefits of 5S on Workplace
The bottom line is that 5S should result in greater profit but

let’s look at some interim benefits first.
Each aspect of 5S can lead to both immediate and long-

lasting benefits. 5S addresses safety by making a workplace
neater and more orderly. This reduces the risk of injuries, in
both the short and long term. For example: in the short term,
workers are less likely to trip over misplaced items or injure
themselves on equipment lacking proper safety guards.
A neat workplace means that frequently-used tools are stored

close to hand, resulting in less time wasted searching for
misplaced items. Likewise, workers do not need to sift
through clutter to find the specific tool or spare part needed
at that moment.
In some environments, greater cleanliness will result in less

dust or other airborne contaminants. This may lead to fewer
chronic health issues.
Cleaner equipment may mean fewer malfunctions or

breakdowns. Even in the short term, a daily five-minute
cleanup can eliminate plant-wide cleaning binges required
before a major customer arrives for a tour.
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Every day, optimized workflow should result in quicker

operations – whether it is a worker moving a piece directly to
the workbench, or a forklift driving in a straight line rather than
wending a path among cluttered piles of inventory.
5S can improve morale in several ways. Most obviously,

workers and managers can take greater pride in a clean and
orderly workplace. As well, every employee will have
responsibilities and duties aimed at a common goal – to
maintain the 5S standards – which leads to a sense of
teamwork and shared vision.
Finally, a 5S program can be a stepping-stone for later

initiatives such as Lean Manufacturing or Continuous
Improvement.
How can these 5S changes generate more profit?
• Both fewer injuries, and fewer long-term illnesses,

lead to a reduction in lost time, compensation, and
scrambles to train workers to cover for colleagues
• Less time spent searching for misplaced tools or parts

means higher productivity
• Cleaner equipment may mean less downtime for

repairs or maintenance, and also saving on replacing
the parts.
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• Optimized workflow leads to higher productivity due to

time savings
• Optimized workflow leads to higher productivity by

reducing process errors and re-work
• A cleaner workplace may result in cost savings for

janitorial staff
• Obsolete equipment or parts may be sold
• Reduced inventory – whether equipment, spare parts,

or raw materials – may result in reduced warehouse
costs
As a rule of thumb: a workplace can achieve a 10% increase

in productivity after completing a 5S programme. It does
depend on the initial state of affairs: the worse when you
started, the greater the improvement.
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The bottom line is that 5S is good for your bottom line.
1: 1st S – Sorting Out (Seiri)
The first S, Seiri, calls for the elimination of unnecessary

items that have collected around work areas. As debris and
unused objects build up, productivity often takes a turn for the
worse. In unproductive workspaces, frustrations mount when
workers find that they are unable to satisfactorily finish the
task at hand. Therefore, it is vital to implement a workplace
sorting system. The effective visual method of identifying
unneeded items is called “red tagging”.
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RED TAG – for unwanted item
In this method, labels or signs are used to identify two areas:
1. One area for the collection of unused items

2. One area for tools or other items that are needed
either (a) frequently (b) occasionally (c) Rarely
Be sure to use separate labels to indicate potentially

hazardous materials. After the unused items are gathered,
they should be moved to a well identified collection area (RED
TAG AREA) that has been specifically established for this
purpose. Be sure to use clearly visible labels and signs to
make the purpose of this area clear. Signs should describe
the process of turning in items for collection.
The Red Tag needs to have the following information:

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• Tag number
• Item description
• Item Quantity
• Tag Prepared by:
• Date when the tag was applied
• Decision & Decision by
Name or employee number of the person who applied the tag

Record the same information on the team’s Sort List.
Using the Red Tag to “remove unnecessary items” is fairly

straightforward. Here is the process.
Each Red Tag gives other workers an opportunity to pass

along comments. Typically, a long-time employee might note
that “Every four or five years, we have to pick out a few of
these parts for customer X who still has an old ZYXW model”.
So that might reprieve this one bin of spare parts.
After a day or two, each Seiri team retraces their steps to

review each Red Tag. If no-one has suggested why an item
should be saved rather than discarded, then deal with it. Items
that are needed less frequently should be moved to a proper
storage area rather than cluttering the shop floor.
(Questionable items may go into a “quarantined storage”
area. The idea is to log when a quarantined item actually is
used. Otherwise, it should eventually be discarded).
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Keep the Sort List up-to-date with the same information.

Eventually, the team must track down any Red Tags that the
Sort List still shows as outstanding – as “not yet handled”.
SEIRI – Conclusion:
With the completion of the first S sorting, you will see three
main results:
1. Increased Productivity:- The purpose of individual work

areas will be more apparent, leading to a highly efficient
workflow
2. Workers will be more satisfied with their environment:

Employee morale would increase as junk items or
materials that are potential health hazards are identified
and removed.
3. The end product of your labors will be much improved

as full attention can be paid to production. Employees
will no longer need to focus on tangential task such as
locating tools or implementing their own organization
systems.
2. 2nd S – Set in Order (SEITON)
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Now that your workplace has been sorted, it is time to

implement a more comprehensive system of organization.
While sorting is an effective method, it is only a preliminary
measure.
Set in Order (SEITON) focuses on effective storage and

organization methods, with the end goal of developing an
environment that resists clutter and aids long-term
productivity.
In order to set your workplace in order, you must determine
1. What items or areas you need in order to do your job

2. Where those items should be located – based on
frequency of use.
3. Ensure people should follow this.
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If your tools and materials are excessive, return to the first S,

Sort and remove unused items to a location more suitable for
long term storage. Once you have identified your most
commonly used tools and materials, find an accessible
location for them. If this tool storage area is located at some
distance from your actual work location, consider ways to
make your tool set more portable.
Some other strategies to effectively set things in order

include:
1. Marking spaces & Installing modular shelving &

cabinets Floor markings are appropriate for
warehouses with otherwise insufficient boundary
marking systems.
2. In workspaces with extensive interior wall space,
Signs and labels should be used to help orient
workers and assist workflow. For example, small
overhead maps (“You are here”) and legends can be
printed on both labels and signs and affixed to walls.
3. As we touched on in 1S, all items placed in storage
should be clearly labeled. In many cases, it is
appropriate to affix RTK (Right To Know) labels for
other warning labels to containers used in storage
areas.
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It is also important to consider installing shelving and cabinets

that are easily accessible and can be adjusted as necessary.
Because production requirements can change frequently, it is
important to implement an organization system that is
customizable.
SEITON – Conclusion
The first two S’s (Sort and Set in Order) provide a strong
foundation for a workplace driven not only by skills and labor
but also by the values of organization and simplicity. Though
extra discipline is necessary at first, these habits will begin in
pay dividends almost immediately through creation of Highly
Visible Workplaces
4. 3rd S – Spic & Span (SEISO)
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Once you have eliminated the clutter in your work area, it is

important to thoroughly clean that area and the equipment in
it. Leaks, sequels and vibrations involving clean equipment
can often be easily detected, but dirty workplace tends to be
distracting and equipments faults go unnoticed. Clean
workplace conditions are also important to employee health,
morale and safety. These factors add up to impact your
company’s bottom line.
Abnormalities are detected and tagged in the workplace

using.
1. Red Abnormality cards

2. Green Abnormality Cards.
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Red Abnormality Card Green Abnormality Card
During the initial cleaning, employees will notice areas that

seem to especially attract garbage of spills. It is important to
make a note of these areas. After the cleaning is done,
special care should be taken:
1. To reorganize problem areas

2. Fix equipment that may be leaking
3. Take steps necessary to ensure that the problem will
not persist in the future.
In this way, a little effort in the beginning will reduce the

necessity of deep cleaning later. .
1. Are areas containing cleaning equipments properly

marked?
2. Are cleaning supplies replenished and marked with
instructions for use?
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3. Are there enough waste receptacles and are they

clearly labeled?
After the first cleaning it is important to look for areas that are
still dingy or dirty. This may indicate that you need stronger
cleaning solvents of tools.
Cleaning operations can coincide with equipment evaluations

in order to ensure that proper care and maintenance is
observed.
As employees clean their work areas, they will become

familiar with the basic functions of the equipment around them
and will enjoy greater safety and productivity as result.
Seiso Conclusion
The benefits of a clean workplace are readily apparent after

a short period of time. Employee morale increases and the
most productive time can be dedicated to the most important
tasks. Considering the short amount of time required, the
results of a good, through cleaning can be remarkable.
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4: 4th S – SEIKETSU (Standardization)
Cleaning and organization systems implemented without

established standards tend to lose effectiveness with time.
Allow your employees to participate in developing standards
that improve workplace conditions. Ask for feedback as you
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find the best way to balance employee morale with production

concerns.
Keep employees informed by making the standards visible.

i.e. customized posters, signs and labels where ever
applicable.
Standards offer employees and employers a way to reach

common goals while showing fairness to both sides.
Cleaning and organization standards based on the 5S
system should be clearly displayed around the workplace
using signs and posters. Labels can also be used as
reminders to be placed on individual pieces of equipment.
To aid memorization and implementation, pick a 5S color

scheme for your facility that aids in quick reference to 5S-
related materials. For example, areas containing many black-
on-white signs may be outfitted with a white-on-green sign
where cleaning or organization instructions are necessary.
As your employees adjust themselves to this new

environment, make sure your standards are easy to
understand and offered in multiple languages where
necessary.
Standardization – conclusion
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Standards are the backbone of a successful 5S program.

Adherence to those standards creates an environment
wherein employees can confidently pursue their production
goals.
5: 5th S- Sustain (Shitsuke)
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This is by far the most difficult S to implement and achieve.

People tend to resist change and even the most well
structured 5S plan will fail if not constantly reinforced.
Fortunately, there are effective methods of sustaining positive

growth. Begin by asking yourself relevant questions:
1. What goals do you wish to achieve by starting 5S

program?
2. How will you measure your progress?
3. What tools and resources are available to help
measure this progress and sustain growth?
If your 5S goals are measurable, such as “pass inspections 5

months in a row”? It is important to find a visible way to
measure your progress, perhaps by printing poster or signs
that can be written on as, important quotas are met. Evaluate
your resources to find ways of obtaining visual materials.
You will also find that employees benefit by easy access to

label and sign-making systems. With the ability to print visual
materials on demand, any employee can quickly labels items
that are required to be organized
Finally, look for ways to emphasize the positive results of a

5S program. Catch phrases and slogans can be used to make
sure no one forgets the significance of your goals.
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SHITSUKE – Conclusion:
Sustaining newly changed behavior is not easy. However, the

results are rewarding for everyone involved. As employees
grow into the 5S system, the will find it energizing and
fulfilling. Be sure to go the extra mile to make sure your
workplace is well prepared to continually observe 5S
standards.
3.4 5S Checklist
After implementation the main issue of organization is how to
sustain the system. To sustain 5S in organization, cross
functional audits are must which helps organization to sustain
the culture. 5S checklist is shown in next picture.
A. 5S Checklist for Office Area
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B. 5S checklist for Plant Area
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C. 5S Score Card
To show and analyze the 5S score of each zone 5S
score sheets are displayed with score in each area
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D 5S Poster Example
Some of the posters are given to display on shop floor for

awareness and visual management in the plant.
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3.5 Visual Management
Visual management is an important tool in lean but its use

generally stops short of its intended purpose. If you are not
prepared to fix the problems it uncovers then you are not
ready for it.
A visual workplace is a work environment that is
• self-explaining, self-ordering, self-regulating and self-

improving
• right things happen at right place and time
• on time, every time, day or night
The Visual workplace would put an end to
• Searching
• Waiting
• Interruptions
• Questioning
• Mistakes
• Guessing
• Delays
• Rework
• Mistake Proofing
• Communication flow
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The central purpose of visual systems……
• To eliminate the numero uno enemy of the corporate

world is “moving without working”
• How is this done? It is done by sharing information

vital to the task-at-hand with the people who need it
the most, i.e. production associates supervisors and
managers.
• Do it without speaking a word, with visual solutions
Can you imagine an end to all your Nos !
• No Wandering
• No Waiting
• No Wondering
• No Obstacle
• No Extras
• No Waste
• No Searching
• No Delays
• No Secrets
• No Detours
• No Injuries
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A visual workplace is more than…
• A collection of brooms and buckets, posters & signs.
• The visual workplace is a compelling operational

necessity.
• It is crucial to meeting daily performance goals,

central to your company’s war on waste.
• It is fundamental to vastly reduced lead times and an

accelerated flow.
• The visual workplace installs the visual language of

production directly into the physical work
environment itself-and into your offices.
• In short freedom to work but with responsibility and

ownership.
The physical workplace speaks for itself — enabled at

last to tell us
• Exactly where things are.
• What needs to be done
• By when
• In what quantity.
• By whom and how
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10 Principal Components of Visual Communication
1. Placing knowledge & information in the public

domain
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2. Enabling the ownership of the environment by its

occupants’ territory
3. Enabling users to participate in creating rules &

standards.
4. Increasing the amount of work done by small groups
5. Increasing informal contact outside of the hierarchy
6. Developing a system of overlapping responsibilities
7. Reorienting inspection functions toward observation

of facts & problem-solving.
8. The participation of production personnel in

improvement projects in the workplace
9. Returning to the shop-floor level after years of

centralized management
10. Returning to reality after years of management by

abstractions
2 Recommendations for Management while sharing

information
Visual communication project should never be started /

approached:
1. Without first verifying the company’s commitment to

the path defined by the 10 Principals
2. Purely as technique
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3 Golden Rules
For the degree of uniform perception the objectives must be
1. Realistic
2. Precisely defined
3. Prioritized
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NOTES:
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“Out of clutter, find simplicity. From discord,

find harmony. In the middle of difficulty lies
opportunity.”
Albert Einstein
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4: FLOW MANAGEMENT
4.1 Value Stream Mapping (VSM)
Definition:
The process of identifying and charting the flows of

information, processes and physical goods across the entire
supply chain from the raw material supplier to the possession
of the customer.
Value stream mapping is a basic planning tool for identifying

wastes, designing solutions and communicating lean
concepts.
Benefits:
• Highlighted dependencies
• Identified opportunities for the application of specific
tools and strategies of lean
• Improved understanding of highly complex systems
• Synchronized and prioritized continuous improvement
activities
Objective of VSM:
• Visualization of material and information flows

• Facilitate the identification and elimination of waste
and the sources of waste
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• Support the prioritization of continuous improvement

activities at the plant and value stream levels??
• Support constraint analysis
• Proved to be a common language for process
evaluation
Organisation of VSMs:
Types:
1. Production: Raw material to the customer

2. Design: Design to concept launch
3. Administrative: Order taking to delivery
States:
1. Current State – The existing conditions in the value

stream
2. Future State – Reflects the future vision of the value
stream
1. Current State Drawing
• Understanding how the shop floor currently

operates
• Material & Information flow mapping
• Draw using icons
• Starts with the “door to door” flow

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• Have to walk the flow and get actual
o No standard time
o Draw by hand, with pencil
• Foundation for the future state
Product Family
Current State Drawing
Future State Drawing
Plan &
Implementation
At XYZ company there is raw material inventory, finished

goods inventory, and inventory between each process. The
observed amount of inventory is recorded below the
triangles, in quantity and/ or time.
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Current State Map

With all Processes, Data
Boxes & Inventory Triangles
16
Current - State Map
Showing the material Flow
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Information
Electronic
Information flow
Time
P
u Current state map
s showing the customer
h
Current State Mapping
• Review the basic processing steps and calculate

the takt time in your team’s breakout room.
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• Everyone draw while on the shop floor. Be sure

to draw both the material & information flows.
• Always introduce yourself to operators and tell

them what you are doing : “Drawing the total
factory flow as part of a training session.’ Show
them your drawings.
• Select a scribe and combine your drawings into

one current state map (in team area).
• Calculate total lead time versus processing time.
• Make an overhead transparency of the map and

select presenters.
Future State Mapping
• Review Current State Map
• Calculate Takt Time
• Identify Bottleneck Process
• Lot Sizing and Set up Opportunities
• Identify Potential Work cells
• Determine KANBAN Locations
• Establish Scheduling Methods
• Calculate Lead and Cycle Times
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Supermarket Pull System
1: Customer process goes to supermarket and

withdraw what and when it needs it
2: Supplying process produces to replenish what was

withdrawn
4.2 Spaghetti Diagram
Spaghetti diagram is a visual representation using a

continuous flow line tracing the path of an item or activity
through a process. The continuous flow line enables process
teams to identify redundancies in the work flow and
opportunities to expedite process flow.
Creating a spaghetti diagram is the visual creation of

actual flow. The keyword is ACTUAL, not what it should be
or perceived to be. It is a snapshot in time so it may not
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include all what-if and special scenarios, but these do warrant

discussion as the team progresses.
This is one potential downside because these must be

captured for Process Mapping especially if these scenarios
are high in risks and costs.
They are used to track:
• Product Flow
• Paper Flow
• People Flow
Use a different line type or color for each flow type, or use
separate map for each flow path for more clarity.
Creating a Spaghetti Diagram should be done with or by the

operators or those that use the process. Record the path with
a pencil and use a measuring wheel or tape measure to
document distances.
Items needed to get started:
• Overhead views of area, drawn close to scale and

labeled
• Colored Pencils
• Measuring Wheel and/or tape measure
• Stop Watch
• Team, Operators, People impacted by the flow
• Actual Process
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Steps:
§ Record the processes on the side and ask questions if

not clear on the activity.
§ Start at the beginning of the scope, the start of the first

process. Use directional arrows for the routes that are
traced on the paper.
§ Do not leave out any flow movement even if the paper

becomes cluttered and difficult to follow. This probably
indicates opportunity. Most often, the perceived unusual
flow, or "exceptions" are actually happening more often
than realized. Capture these!
§ Record the amount of time within each activity.
§ Shows the areas where materials stops, staged, held,

inspected and picked up. Look for point-of-use
opportunities for materials, tools, and paperwork.
§ Record the names of those involved, dates, times, and

other relevant information.
§ Calculate the distance, times, shift, starts, stops, to

provide baseline performance.
§ Create a separate diagram showing the ideal state of flow

for each that eliminates as much non-value added tasks
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as possible. The team should target the ideal state and

the Project Manager and Champion should remove
obstacles that may prevent this objective.
Operator Flow EXAMPLE: details
Before
IDEAS to Improve
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4.3 Cellular Design
Cellular Manufacturing is a model for workplace design, and

has become an integral part of lean manufacturing systems.
Cellular manufacturing is based upon the principles of Group

Technology, which seeks to take full advantage of the
similarity between parts, through standardisation and
common processing.
In functional manufacturing similar machines are placed close

together (e.g. Lathes, Millers, Drills etc.). Function layouts are
more robust to machine breakdowns, have common jigs and
fixtures in the same area and supports high levels of
demarcation.
In cellular manufacturing system machines are grouped

together according to the families of parts produced. The
major advantage is that material flow is significantly
improved, which reduces the distance travelled by materials,
inventory and cumulative lead times. Cellular
manufacturing is most suitable for batch manufacturing
Simplicity is an underlying theme throughout cellular design.

Notice the simplicity of material flow. Scheduling, supervision
and many other elements also reflect this underlying
simplicity.
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Benefits:
1. Process become more balanced
2. Productivity increases because the manufacturing

floor has been reorganized and tidied up.
3. Part movement, set up time and wait time between the

operations are reduced, resulting in a reduction of
work in progress inventory freeing idle capital that can
be better utilized elsewhere.
4. Cellular manufacturing, in combination with the other

lean manufacturing and JIT processes, also helps
eliminate over production by only producing items
when they are needed. The results are cost saving
and the better control of operations.
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NOTES:
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“If you always do what you always did, you’ll

always get what you’ve always got.”
Henry Ford
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5: TOTAL PRODUCTIVE MAINTENANCE
5.1 TPM History:
TPM has been developed from the original PM (preventive

maintenance or productive maintenance) concept and
methodology introduced from the USA. It has been further
developed and implemented in many Japanese companies,
and is now rapidly becoming a method applied worldwide.
In 1971, Nippon Denso Co., Ltd. first introduced and

successfully implemented TPM in Japan. They won the
Japan Institute of Plant Maintenance (JIPM) PM Excellent
Plant Award for their activities. This was the beginning of TPM
in Japan. Since then, TPM has spread progressively
throughout the world and established itself as a renowned
cultural improvement programme. The first example of TPM
used in Europe to deliver world class performance was by
Volvo in Ghent, Belgium, who won the PM prize for their work
in the paint shop.
This was quickly followed in the early 1990s by other

European automotive companies trying to slam up the
productivity and quality gap with their Japanese competitors.
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5.2 Definition of TPM
The JIPM definition of TPM is
T = Total, Must involve all employees at all levels of the

organization
P = Productive, Effective utilization of all resources
M = Maintenance, Keeping the Man-Machine-Material
system
in optimum condition
5.3 TPM focuses on achieving:
- Zero Accidents
- Zero Breakdowns
- Zero Defects
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5.4 8 pillars of TPM:
1. Autonomous Maintenance
What is Autonomous Maintenance?
• Autonomous Maintenance is the first of the eight

pillars of TPM. It follows a structured approach to
increase the skill levels of personnel so that they can
understand, manage and improve their equipment
and processes.
• The goal is to change operators from being reactive to
working in a more proactive way, to achieve optimal
conditions that eliminate minor equipment stops as
well as reducing defects and breakdowns.
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How is this Pillar implemented?
The Autonomous Maintenance pillar activity is broken

down into three phases and is owned by the team who
use the equipment on a daily basis.
• The first phase establishes and maintains basic

equipment conditions through restoration and
eliminating causes of forced deterioration and sources
of contamination. Standards are introduced for
cleaning, inspection, tightening and lubrication to
ensure the conditions are sustained.
• The second phase increases the capabilities of the

team by training them in the detailed operating
principles of the equipment and then improving the
standard basic condition.
• During the third phase, the operators take total

ownership of the equipment as self-directed teams,
continuously improving equipment condition and
performance to further reduce losses.
7-Steps of Autonomous Maintenance
I. Initial cleaning
II. Counter measures
III. Provisional checklist
IV. General inspection and tagging
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V. Autonomous inspection
VI. Standardization
VII. Autonomous management
I. Initial cleaning
Cleaning means an inspection which is required to restore the

basic condition of machine i.e. maintaining of usage
condition. Usage condition means something special is
happening while the machine is working.(confusing).
Something special means “tagging “and “Untagging”. Here
we are talking about identification of abnormalities which is
supposed to be sorted out. For sorting out problem, first step
is to identify the problem that’s why tagging is important. (you
need to write about untagging).
Mostly Accelerated Deterioration caused due to two types
i) Internal
Internal means,
a) Dust , Dirt (Generated from the process),

Contamination (Fluids-oils, grease)
b) No or inadequate Lubrication
c) Loose parts
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ii) External
a) Improper method of operation or maintenance
• Cleaning is inspection
• Start cleaning M/C in stopped condition
• Use checklist for ABNORMILITIES
• Tag ABNORMALITIES – by Green / Red tag
Red Abnormality card for Maintenance from outside

party and Green Abnormality card for internal
maintenance,
• Record tags on tag graph & list the abnormalities

• When tagging is done to the best ability start Un-
tagging – REPAIRING
• Update the GRAPH with Un-tagging rate
• After tagging & Un-tagging in stopped condition,
TAG M/c in running condition.
• Again update graph & record ABNORMILITIES
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• Un-tagging after correcting
II. Counter measures
For step 2, step 1 must be rigorously done on shop floor,

Modify, improve the condition of the machine so that less
time is spent by operators in maintaining it.
Maintenance time must be targeted nearly 10 minutes /shift.
If the maintenance time is high then identify its root cause
Identify…
A. Difficult to clean areas
B. Difficult to inspect areas
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C. Areas having repeated abnormalities
Make a sketch of machine or take a picture. And target

marked area which has high abnormality and take counter
measures. Identify points of lubricating on machine and
give number them. Give color code to the containers and the
point of use area for visual management.
Provide visuals on machines like
- Mark direction flow

- Mark directions of movement of parts
- Colour code of pipes
- Marking for tightening nuts and bolts
- Mark correct ranges in gauges
- Mark unsafe areas
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Providing visuals on machines drastically reduces the

maintenance time of the machine. If abnormalities found in
man power generate One point lesson (OPL’s), it helps to
provide continuous guidance/error proofing measures.
Direction of flow Visuals on guard
Color codes for Lubricants Visual Floor
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III. Provisional checklist
Prepare visual checklist with what, who, how, when - details

to have visual on shop floor. Use numbers/symbols for
identification of lubrication, cleaning points and make
machine highly visual.
Colour codes for oiling, greasing points to be provided on
machines. Use picture/drawing with identification of all cot??
points and use as visual on shop floor. The checklist should
not be consuming time more than 10 mins.
What to
When to How to
clean? Who will
Sr. clean? clean?
(Identify clean?
No. (Cleaning (Equipment
areas to be (Responsibility)
frequency) to clean)
cleaned)
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IV. General inspection and tagging
Understanding the technical aspects of the machine and

general inspections of the machines are primary requirement
for TPM. Training of concerned operators of Design,
Production and Maintenance is required to work as a team.
Identify training needs
- Prepare training material(Use of OPLs is a must)
- Identify trainers (Who?)
- Identify trainees (Whom?)
- Identify class room + gemba (Shopfloor)
Enhance the diagnostic / technical skills of operators to

diagnose abnormalities on machines. Educate on
problems/quality defects /accidents thru OPLs. Prepare the
final checklist.
What are the benefits of this Pillar?
The deployment of Autonomous Maintenance will improve

Overall Equipment Effectiveness (OEE) by reducing
performance loss and increasing equipment availability. In
addition there will be measurable improvement in employee
engagement and capability levels.
2. Focused Improvement
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Focused Improvement is the first pillar of TPM. It provides a

structured, team-based approach to drive elimination of
specifically identified losses in any process Industry.
How is the Pillar implemented?
• The pillar follows a structured set of steps aligned to

the Plan, Do, Check, Act (PDCA) cycle, which can be
implemented for improvement activities of any size or
complexity in any organization.
• The pillar builds an understanding and analysis of the

different loss types affecting an organization. The
pillar operates at a strategic level, identifying the
criteria for project selection and TPM deployment that
will deliver the business objectives.
• The pillar develops the capabilities of teams to be self-

sufficient in applying appropriate problem solving
approaches. By building competencies and
embedding behaviors, the pillar ensures that the
workforce has the skills and motivation to eliminate
loss from their processes, not only for selected
projects but also for normal everyday issues.
3. Planned Maintenance
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What is Planned Maintenance?
• Planned Maintenance is the third pillar of TPM and

aims to achieve zero breakdowns.
• It follows a structured approach to establish a
management system that extends the equipment
reliability at optimum cost.
• The Planned Maintenance pillar activities are normally

led by the maintenance team. The initial phase
prioritizes equipment and involves evaluating current
maintenance performance and costs to set the focus
for the pillar activity.
• Support is provided to the Autonomous Maintenance

pillar to establish a sustainable standard basic
condition and the team focuses on eliminating the
causes of breakdowns.
• Information management systems are used to provide

detailed data on the maintenance process and the use
of spares.
• The teams identify the optimum approach to

maintaining the equipment, starting with a Periodic
Maintenance (Time-Based Maintenance) system
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before introducing Predictive Maintenance

(Condition-Based Maintenance) systems where they
are appropriate and cost effective.
• Finally the team drive continuous improvement of the

process, eliminating reactive activities and assuring
machine reliability.
• The primary benefit from implementing Planned

Maintenance is the reduction in breakdowns, which
leads to reduced cost and improved machine
efficiency.
• The pillar will also contribute to improve quality and
performance safety.
4. Training and Education
What is the Training and Education Pillar?
Training and Education is the fourth pillar of TPM. It ensures

that staffs are trained in the skills identified as essential both
for their personal development and for the successful
deployment of TPM in line with the organisation’s goals and
objectives.

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• Initially the knowledge and skills required for carrying

out each job are defined, in terms of both complexity
of knowledge needed and the number of capable
people required to support the business
• A current state analysis assesses the current levels

against the established requirements and a training
plan is developed to close gaps if any.
• This plan is implemented and evaluated to ensure that

the activity generates the improved capabilities
targeted.
• The pillar team then designs, implements and improve

a ‘Skill Development System’ to enable on-going
development of all employees. As the TPM
programme develops, the pillar will expand to cover
broader roles and increasingly complex training
needs.
Increased skills and performance of all personnel throughout

the organization is essential for the successful
implementation of TPM. Without a strong Training and
Education pillar, the impact of the first three pillars will not be
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sustainable. Untapped human potential creates substantial

waste within an organization. Training and Education creates
a corporate environment which is able to maximize the
potential of all employees and respond positively to the
changing business climate, technological advances and
management innovation.
5. Early Management
What is Early Management?
• Early Management is the fifth pillar of TPM and aims to

implement new products and processes with vertical
ramp up and minimizes development lead time.
• It is usually deployed after the first four pillars as it builds
on the learning captured from other pillar teams,
incorporating improvements into the next generation of
product and equipment design.
• There are two parts to the Early Management pillar:

Early Equipment Management and Early Product
Management.
• Both approaches focus on using the lessons from

previous experiences to eliminate the potential for losses
through the planning, development and design stages.
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• For Early Equipment Management, the goal is to

introduce a loss and defect free process so that
equipment downtime is minimal (zero breakdowns), and
overall maintenance costs (viz. commisioning are
considered and optimized,.
• Early Product Management aims to shorten

development lead times, with teams working on
simultaneous activities so that vertical start up can be
achieved with zero quality loss (zero defects).
Effective Early Management implementation will deliver

reduced product and process introduction lead times,
improved Overall Equipment Effectiveness and the ability to
deliver in volume at the right quality from production start-up.
Cost savings will be delivered both during the introduction
phase and throughout the equipment or product life cycle.
6. Quality Maintenance
What is Quality Maintenance?
Quality Maintenance is the sixth pillar of TPM and aims to

assure zero defect conditions. It does this by understanding
and controlling the process interactions between manpower,
material, machines and methods that could enable defects to
occur. The key is to prevent defects from being produced in
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the first place, rather than installing rigorous inspection

systems to detect the defect after it has been produced.
• Quality Maintenance is launched later in the overall TPM

deployment process because certain conditions must be
in place for it to be successful. These conditions are
delivered by full implementation of the first four pillars.
• Forced deterioration must be abolished, process

problems must be eliminated and any variation in
materials must be under control. Operators and
maintenance employees must have the required
capability to sustain equipment conditions.
• Quality Maintenance is implemented in two phases. The

first phase aims to eliminate quality issues by analyzing
the defects, so that optimum conditions can be defined
that prevent defects occurring. Then, the current state is
investigated and improvements are implemented. The
second phase ensures that quality is sustained, by
standardising the parameters and methods to achieve a
zero defect system.
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Quality Maintenance reduces the cost of quality, as waste

resulting from poor quality, rework, consumer complaints and
the need for inspection are reduced. Defects become a failure
of the organization’s systems, not the fault of the operator,
and poor quality is no longer accepted as a normal
occurrence. Everyone is responsible for maintaining optimal
conditions and striving for zero defects.
7. Office TPM
What is Office TPM?
Office TPM is the seventh pillar and concentrates on all areas

that provide administrative and support functions in the
organisation. The pillar applies the key TPM principles in
eliminating waste and losses from these departments. The
pillar ensures that all processes support the optimization of
manufacturing processes and that they are completed at
optimal cost.
• The initial preparation stage for the pillar ensures that

the goals and objectives for each department are aligned
to the organisation’s vision and mission. There are then
five key activities that the Office TPM pillar undertakes
within an appropriate timeframe.
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• The Office TPM team implements office versions of

focused Improvement, Autonomous Maintenance and
the Training and Education pillars to establish
sustainable, performing processes.
• They deploy a flexible staffing policy to allow

departments to manage peak workloads, without
overstaffing, and a prioritised improvement program, by
loss analysis, against the goals and objectives set in the
preparatory activity phase.
Office TPM benefits organisations by eliminating losses in the

administrative systems across the whole organisation and
into the extended supply chain. This delivers cost reductions
in the organisation’s overheads as well as supporting
improvement and sustainability of the manufacturing process
efficiency. The application of Office TPM also benefits the
organisation by developing support functions that react
flexibility to changes in customer requirement and that ensure
a strong brand image is maintained.
8. Safety, Health and Environment
What is the Safety, Health and Environment Pillar?
• Safety, Health and Environment (SHE) is the final TPM

pillar and implements a methodology to drive towards the
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• Achievement of zero accidents. It is important to note that

this is not just safety but aims at zero accidents
• Zero overburden (physical and mental stress and strain
on employees) and zero pollution.
• Although the SHE pillar is the eighth pillar of TPM, it

should not be thought of as the last to be deployed. The
implementation of SHE strategies occurs throughout the
TPM deployment process and SHE activities are never
complete.
• SHE pillar activities aim to reactively eliminate the root

causes of incidents that have occurred, to prevent
Reoccurrence, and proactively reduce the risk of future
potential incidents by targeting near misses and potential
hazards.
• The pillar team target three key areas: people’s

behaviour, machine conditions and the management
system.
• All SHE pillar activities should be aligned to relevant

external quality standards and certifications.
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The immediate benefits of implementing the SHE pillar are

to prevent reoccurrence of lost time accidents and reduce
the number of minor accidents as well as preventing
environmental system failure. This has a direct financial
saving in the cost of containment, investigation and
compensation as well as reputational impact.
5.5 TPM Measures:
1. OEE ( Overall equipment effectiveness)
OEE measures six categories of equipment losses

throughout its system. The six categories are,
1) Equipment failure
2) Set up and adjustment
3) Idling and minor stoppages
4) Reduced speed
5) Defects in the process
6) Reduced yield
These six losses are combined in to one measure of overall

equipment effectiveness (OEE), which is calculated as,
OEE= Availability factor * Performance factor * Quality

factor
We can also say that OEE is a measure of three factors:

availability factor, performance factor and quality factor.
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Availability factor: It is one of the basic criteria to measure

OEE and machine utilization is the most important component
of availability. There are many things that influence
availability which effects output and plant. For example:
• Absenteeism and utilization: Utilization measures like

employee like employee illness, unavailable human
resource.
• Scheduling: It involves having the right skill at right time.
Employees’ skill must be considered.
• Indirect time: Includes material delays, idle time, shift
change over, and machine down time.
Availability Factor = (Run time/ Net operating time)*100,
• Calendar time = 30*24* 60 = 43200 min

• Net operating time = Gross time-(planned shutdown+ no
schedule production + planned maintenance)
• Run time = Schedule O.T. - Down time losses
Performance factor: : It is the record of output, which

determines whether producing and delivering a product or
service as per standards. Performance output includes
availability of processes, instructions, tools and material
shortage. Skill labours and standard process also effects
performance.
Performance Factor= (Actual O.P/Total O.P)*100
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Quality factor: At the end of the day, it should be known that

whether the product achieves a pre decided standard. Quality
is the function of material that is used. A proper instruction to
skilled labours and standardization of processes affects a lot
to the quality of the product.
Quality Factor= ((Total units produced-defective

units)/total units produced)*100
2. MTBF (Mean time between failure)
MTBF=Total running time /Number of breakdowns

MTBF shows average failure frequency after particular
running period
As we follow TPM this should increase.
3. MTTR (Mean time to repaired)

MTTR= total down time due to breakdowns /no. of break
down
MTTR shows average time taken to repair machine for
average breakdown.
As we do TPM this should decrease.
Graphs of measures:
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5.6 TPM Board:

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5.7 Losses in Process Industry:
Seven major losses that impede overall equipment

A
efficiency
Losses due to failures. Types of

failures include sporadic function-
Failure losses stopping failures, and function-
1
(Breakdown) reduction failures in which the
function of the equipment drops
below normal levels.
Set up and
Stoppage losses that accompany
2 Adjustment
set-up changeovers
Losses
Stoppage losses caused by changing
the cutting blade due to breakage, or
Cutting blade caused by changing the cutting blade
3
change losses when the service life of the grinding
stone, cutter or bite has been
reached.
When starting production, the losses
Start-up that arise until equipment start-up,
4
Losses running-in and production processing
conditions stabilize.
Losses that occur when the
equipment temporarily stops or idles
Minor
due to sensor actuation or jamming
stoppage
5 of the work. The equipment will
and
operate normally through simple
idling Losses
measures (removal of the work and
resetting).
Losses due to actual operating speed
6 Speed losses falling below the designed speed of
the equipment.
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Defect &
7 Losses due to defects & reworking
rework loss
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B Losses that impede equipment loading time

Losses that arise from planned
equipment stoppages at the
Shutdown (SD)
8 production planning level in order
Losses
to perform periodic inspection and
statutory inspection
C Five Major losses that impede workers efficiency
Waiting losses that are caused by
Management management, such as waiting for
9
Losses materials, waiting for instructions
etc.
10 Man-hour losses arising from
Motion losses
differences in skills involved in etc.
Line
Idle time losses when waiting for
11 organization
multiple processes
losses
Distribution man-hour losses due
Distribution
12 to transport of Materials, products
Losses
(processed products) and dollies.
Work losses from frequent
Measurement &
measurement and adjustment in
13 adjustment
order to prevent the occurrence
losses
and outflow of quality defects.
Three major losses that impede efficient use of
D
production subsidiary resources
Losses due to ineffective
14 Energy losses utilization of input energy (Electric,
gas, fuel oil, etc) in processing.
Financial losses (expenses
incurred in production etc.), which
Die, jig and
15 occur with production or repairs of
tool losses
dies, jigs and tolls due to aging
beyond services life or breakage.
Material losses due to differences
16 Yield losses
in the weight of the input materials
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and the weight of the quality

products
5.8 Single Minute Exchange of Dies/ Quick
Changeover
Definition:
Single Minute Exchange of Dies (SMED) broadly means the

ability to perform any set up activity in a minute or less of
machine or process downtime. Also called
1. Single Digit set up: Performing a setup activity in a

single-digit number of minutes, i.e. fewer than ten.
2. OTED: One touch exchange of die; literally, changing
a die with one physical motion such as pushing button;
broadly, an extremely simple procedure for
performing a set up activity
Set up Time
Setup time is the time taken between the last piece of

previous lot and the first “ok piece” (acceptable quality of next
lot.
Component of setup time
• Internal Setup: This part of the setup operation can

only be done when the machine is shut down. For
example, a new die can only be attached to a press
when the press is topped.
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• External Setup: This part of the setup operation can

be done while the machine is still running. For
example, bots to attach to the die can be assembled
and sorted while the press is operating.
Following are, in general, conceptual stages of SMED:
1. Separating internal and external setup.

2. Converting internal to external setup.
3. Streamlining all aspects of the setup operation.
Separating Internal and External setup
• Certain tasks can be done before machines are

stopped for changeover. These include lining up the
right people, preparing parts and tools, making repairs
and bringing parts and tools closer to the equipment
• It is surprising however, that often these tasks are
done after the machine has been stopped instead of
while it is still running the previous lot
• A checklist that lists everything required to set up and
run the next operation will minimize those external
setup elements that are performed as internal
elements
• Checklist
ü Tools, specifications and workers required
ü Proper values for operating conditions such as
temperature pressure, current and federate
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ü Correct measurements and dimension

required for each operation
ü Function checks before the setup
• Improve the transport of parts and tools. Make sure
that during this transport the machine is running
Concerting Internal Setup to External Setup
• Look closely at each individual function in your setup

process and decide which functions, if any, can be
standardized
• Look again at the functions and think about which can
be made more efficient by replacing the fewest
possible parts
Applying SMED to Internal Operation
• Implement parallel operations
• Use functional clamps
ü One turn attachments
ü Pear shaped holes for clamping
ü U shaped washers for clamping
ü Split thread screws for one turn operation
ü U-slots for attachment
ü Clamping instead of screwing
ü One motion clamping devices
ü Interlocking devices
ü Elimination of adjustments
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ü Fixing numerical settings

ü Make centerlines and reference plans clearly
visible
ü Use sensors and limit switches
ü Use mechanization (only after exhausting
other means) in streamlining the setup
ü Use the energy provided by the machine to
speed up the set operations
Improving the Internal Setup
The quickest way to replace something is to replace nothing
at all – or as little as possible Function standardization
ü Standardize clamping operations
ü Use jigs to centre dies
ü Use die cassette systems
ü Use intermediary jigs
ü Implement parallel operations
ü Use functional clamps
ü Eliminate adjustments
ü Fix numerical settings
ü Make centerline and reference plane visible
ü Use limit switches, sensor and other warning
devices
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5.9 TPM Matrix
TPM Measure UOM Before After
OEE %
MTBF Minutes / Hours
MTTR Minutes / Hours
SMED Minutes / Hours
Production Per hour Output
Quality defects % reduction
Man days Requirement Per unit reduction
Consumable Per unit (i.e. Kg.,
Consumption ltr, ton) reduction
Power consumption Per unit reduction
(Overall plant /
Machine)
Delivery Performance %
Safety Loss Time
accident
Area spared In sq. mtr
Cleaning time Minutes
reduction
Checking time Minutes
reduction
Manufacturing cost % to sales
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“If you define the problem correctly, you almost

have the solution.”
Steve Jobs
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6: QUALITY MANAGEMENT
6.1 History of TQM
The history of Quality Management (QM) began initially as a

term coined by the Naval Air Systems Command to describe
its Japanese-style management approach to quality
improvement. An umbrella methodology for continually
improving the quality of all processes, it draws on knowledge
of the principles and practices of:
• The behavioral sciences
• The analysis of quantitative and non quantitative data
• Economic theories
• Process analysis
6.2 QM Timeline
• Some of the first seeds of quality

management were planted when
the principles of scientific
management swept through U.S.
1920s industry.
• Businesses clearly separated the
processes of planning and carrying
out the plan, and union opposition
arose as workers were deprived of
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a voice in the conditions and

functions of their work.
• The Hawthorne experiments in the
late 1920s showed how worker
productivity could be impacted by
participation.
• Walter Shewhart developed the

1930s methods for statistical analysis and
control of quality.
• W. Edwards Deming taught

methods for statistical analysis and
control of quality to Japanese
engineers and executives.
• Joseph M. Juran taught the
1950s concepts of controlling quality and
managerial breakthrough.
• Armand V. Feigenbaum’s book
Total Quality Control, a forerunner
for the present understanding of
TQM, was published.
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• The Japanese named their

approach to total quality
companywide quality control.
1968
• Kaoru Ishikawa’s synthesis of the
philosophy contributed to Japan’s
ascendancy as a quality leader.
• TQM is the name for the philosophy

of a broad and systemic approach
to managing organizational quality.
• Quality standards such as the ISO
9000 series and quality award
Today
programs such as the Deming
Prize and the Malcolm Baldrige
National Quality Award specify
principles and processes that
comprise TQM
6.3 Basic Quality Tools:
Quality Guru Kaoru Ishikawa quoted that “As much as 95%

of quality related problems can be solved out with
fundamental quantitative tools”.
The basic 7 Quality tools are following:
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1. Fishbone diagram
2. Histograms
3. Pareto analysis
4. Flow charts
5. Scatter plots
6. Check sheets
7. Control charts
1. Fishbone Diagram
It is also called as Ishikawa diagram because it was created
by Kaoru Ishikawa in 1968.A diagram designed to help
workers focus on the causes of a problem rather than
symptoms. The diagram looks like skeleton of fish. The
problem being the head of the fish, major causes being the
“ribs” of the fish and sub causes forming smaller “bones” off
the ribs
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Steps for creating fishbone diagram:
a. State the problem clearly in head of fish

b. Draw the backbone and ribs
c. Identify different from where problem may arrive from
d. Continue to fill out the fishbone diagram, asking “why?”
about each problem or cause of a problem until the fish
is filled upout
e. Use the finished diagram to brainstorm solutions to the
main problems. Set goals to address the core causes
When to use Ishikawa Diagram:
• While identifying possible causes for a problem

• Especially when a team’s thinking tends to fall into ruts
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• It immediately sorts ideas into useful categories.
2. Histogram
Histogram is a representation of data in a bar chart format. It
a tool which shows frequency data. Histogram is a tool
which provides the easiest way to evaluate the distribution
of data.
Steps for developing a Histogram:

a. Collect data and sort it into categories
b. Label the data as the independent set or the dependent
set.
c. Each mark on either axis should be in equal increments
d. For each category, find the related frequency
e. And make the horizontal marks to show that frequency
Example of Histogram:
70 65
No. of Times ordered
60
50
40 33
30
20 12
8
10
0 0 1
0
1 2 3 4 5 6 7
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No. of Slices Ordered
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When to use Histogram:

a. The data are numeric value
b. Analyzing what the output from the supplier’s process
look like
c. Whether a process change has occurred from one
time period to another time period
d. To determine whether the outputs of two or more
processes are different
e. To communicate the distribution of data quickly and
easily to others
3. Pareto Analysis
• Pareto analysis is an economic concept identified by
Joseph M. Juran
• The economic concept is called Pareto’s law or the
80/20 rule.
• Are used to identify and prioritize problems to be
solved
Some Features of Pareto Chart
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Very similar to Histograms
Use of the 80/20 rule
Use of percentages to show importance
Indicates which problem we should solve first in

eliminating defects and improving the operation
Interpreting a Pareto Chart

• Focus on the tallest bars in the histogram first , when
solving the problem
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Steps for Developing a Pareto Chart
Select information
based on types or Collect data and Construct a histogram
or frequency chart
classifications of classify into
showing the number
defects that occur as categories
of occurrences
a result of a process
When to Use a Pareto Chart?

1. When analyzing data about the frequency of problems
or causes in a process
2. When there are many problems or causes and you
want to focus on the most significant
3. When analyzing broad causes by looking at their
specific components
4. Flowchart
• A flowchart is a picture of a process
• First step in many process improvement projects is to
flowchart the process as it exists
• This useful step also determines the parameters for
process improvement
• We must know the process before we can improve it
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To do List before Drawing a Flowchart
1 Define symbols before beginning
2 Stay consistent
3 Check that process is accurate
Steps for Developing a Flow Chart

1. Familiarize the participants with the flow chart
symbols
2. Draw the process flow chart and fill it out in detail
about each element
3. Analyze the flow chart
4. Determine which steps add value and which don’t in
the process of simplifying the work
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Some Typical Flowchart Symbols

Symbol Activity
Start or Finish
Process
Decision
Process Flow
5. Scatter Plot
• Scatter diagram or scatter plot is used to examine the
relationships between variables
• 2 Dimensional X*Y plots
• Used to show relationship between independent(x)
and dependent(y) variables
• These relationships are used to identify indicator
variables in organizations
When to Use a Scatter Plot?
When there is a need to find a relationship between two

variables such as the percentage of an ingredient in an
alloy and its hardness.
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Steps for Developing a Scatter Plot
Determine the X (independent) and

Y (dependent) variables.
Gather process data relating to the

variables identified in step 1
Plot the data on a two-dimensional

Cartesian plane.
Observe the plotted data to see

whether there is a relationship
between the variables.
The Scatter Plot
25
20
Employee Defects
15
10
0
0 20 40 60 80
Some Interpretations
Overtime in minutes
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• A general trend of points going up & to the right

indicates that an increase in one variable corresponds
to an increase in the other
• If the trend is down & to the right, an increase in one
variable corresponds to a decrease in the other
• If no trend is seen, then it would appear that the
variables are not related
• However, even a trend may not be illustrative that the
variables do have a perfect relation, there is a chance
that it may be a chance cause
6. Check sheets
• A check sheet is a structured, prepared form for
collecting and analyzing data
• A generic tool that can be adapted for a wide variety
of purposes
• Can be either tabular or schematic
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Steps for Developing a Check sheet:
Test the ceck

sheet for a short
Decide what Label all spaces trial period to be
event or problem on the form sure it collects
will be observed the appropriate
data and is easy
to use
Set it up so that Each time the

Develop data can be targeted event or
operational recorded simply problem occurs,
definitions by making check record data on
marks the check sheet
Decide when data

will be collected Design the form Sustain
and for how long
The Check Sheet Example
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When to Use a Check Sheet?

1. When data can be observed and collected repeatedly
by the same person or at the same location
2. When collecting data on the frequency or patterns of
events, problems, defects, defect location, defect
causes, etc.
3. When collecting data from a production process.
7. Control Charts
• Control charts are used to determine whether a
process will produce a product or service with
consistent measurable properties.
Types of Control Chart
• Different types of control charts can be used,

depending upon the type of data. The two broadest
groupings are for Variable data and Attributable
data.
Steps for Making Control Charts change background
color
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Identify critical operations

in the process where Update the limits
inspection might be needed
Identify critical operations Establish the control limits

in the process where and use the chart to
inspection might be needed monitor and improve
Determine whether the

critical product Select the appropriate
characteristic is a variable process control chart
or an attribute
Q.C story board:
Q.C story board is a visual to show the systematic

approach followed by organization to solve the quality
problem.
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Example:
6.4 Poka Yoke
To avoid (yokeru) inadvertent errors (poka), Poka-Yoke

means mistake proofing.
Principles of Poka-Yoke
• Respect the intelligence of workers

• Take over repetitive tasks or actions that depend on
constantly being alert
• Free a worker’s time and mind to pursue more
creative and value adding activities
• It is no acceptable to produce even a small number of
defects or defective products
• The objective is zero defects
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Ten Types of Human Error
• Forgetfulness
• Error due to misunderstanding (jump to conclusion)
• Error in identification (view incorrectly…too far away)
• Errors made by untrained workers
• Willful errors (ignore rules)
• Inadvertent errors (distraction, fatigue)
• Errors due to slowness (delay in judgment)
• Errors due to lack of standards (written and visual)
• Surprise errors (machine not capable, malfunctions)
• Intentional errors (sabotage – lease?? common)
Human Errors-Provoking Conditions
• Adjustments
• Tooling/tooling change
• Dimensionality / Specification / Critical Condition
• Many parts/mixed parts
• Multiple steps
• Infrequent production
• Lack of / or ineffective standards
• Symmetry
• Rapid repetition
• High Volume / extremely high volume
• Environmental conditions
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ü Material / process handling

ü Housekeeping
ü Foreign matter
ü Poor lighting
Three level of mistake proofing
• Catching errors before they create defects

• Catching errors during the process of creating defects
• Catching errors that have created defects and
keeping the defects from going further in the process
Technique of Mistake Proofing
1. Prediction/Prevention and Detection Method: Contact

methods – Contact with the part highlights errors
fixed- value methods – Errors are detected through
counting
2. Motion-step method
Errors are detected by motion or lack of it.
6.5 KAIZEN
Kaizen means a proven methodology for achieving Continual

Improvement. Kaizen means gradual, unending
improvement, doing “little things” better and achieving higher
standards.
• Increased customer service
• Increased quality
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• Increased safety
• Increased employee participation
• Increase in job security
Principles of Kaizen
• Continuous improvement (step – by – step)
• Accumulation of small steps
• Employee involvement (top management, managers,
workers)
Basic Road Map for Kaizen
• Discard conventional fixed ideas

• Think of how to do it and why it cannot be done
• Do not make excuses. Start by questioning current
practice
• Do not seek perfection. Do it right away even if for only
50% of target
• Correct it right away, if you make a mistake
• Do not spend money for Kaizen??
• Follow 5Why
Phase of how to implement Kaizen
• Select an event
• Plan an event
• Implement an event
• Follow up to an event
135
___________________________________________________________
“Perfection is not attainable. But if we chase

perfection, we can catch excellence.”
Vince Lombardi
136
___________________________________________________________
7: SERVICE MANAGEMENT
7.1 Introduction
Service management is integrated into supply chain

management as the intersection between the actual sales
and the customer. The aim of high performance service
management is to optimize the service-intensive supply
chains, which are usually more complex than the typical
finished-goods supply chain. Most service-intensive supply
chains require larger inventories and tighter integration with
field service and third parties. They also must accommodate
inconsistent and uncertain demand by establishing more
advanced information and product flows. Moreover, all
processes must be coordinated across numerous service
locations with large numbers of parts and multiple levels in
the supply chain.
Among typical manufacturers, post-sale services

(maintenance, repair and parts) account for less than 20
percent of revenue. But among the most innovative
companies in service, those same activities often generate
more than 50 percent of the profits.
Benefits
The main drivers for a company to establish or optimize its

service management practices are varied:
137
___________________________________________________________
• High Inventory carrying costs can be reduced, i.e. by

integrating the production lead time and products
dispatch pattern
• Inventory levels of Raw Material, WIP and Finished

Goods can be reduced and therefore reduce total
inventory costs.
• Spare Parts inventory cost optimised
• No Stock out or Over Stocking situations
• Increasing service revenue
• Reduce obsolescence costs of service parts through

improved forecasting.
• Improve customer satisfaction levels.
7.2 Developing Purchase Part Market (Supermarket):
Need of Purchase part market
A. Developing a single location to hold a controlled level

of every purchased parts used for the model
cell/family mix initially chosen
B. Subsequently all product families are added to the

material handling system, every purchased product
part used in the facility will be stored in the purchased-
parts market.
138
___________________________________________________________
Location of Market
The purchased-parts Market is located
1. Near the receiving dock in the facility

2. An area large enough to accommodate a market
stocked with purchased parts for the entire plant
The Amount
The amount of parts is determined based on:

1. The average daily usage of each number part number
2. The receiving shipment size (in day of usage)
3. The necessary buffer (in days of usage) i.e. maximum
inventory level for each part
Maximum inventory levels can be determined by
Planned maximum inventory level = Daily usage X shipment

size in days + purchased parts buffer in days of usage
Shipment size in days
Shipment size is based on the delivery frequency translated

into a number of days of production inventory
139
___________________________________________________________
Delivery Frequency Shipment Size in

days of production
1 time per week = 6 days of production
2 times per week 3 days of production
6 times per week 1 day of production
Purchased parts Buffer Calculations
Following variables are required to consider for calculation

of parts buffer
1. Supplier’s delivery performance
• Quality History
• On time Performance
• Reliability of Transportation method
• Physical distance to supplier
• Risk of bad weather or other uncontrollable
factors in delivery
2. Production Performance Variation
• Variation in usage of the part viz spikes in

customer demand
140
___________________________________________________________
Calculate the quantity of containers
Purchased parts Market must have capability to hold the

arrived maximum number of containers. Quantity of
containers can be calculated by following formula:
Maximum Quantity of Containers = Planned Maximum

inventory level / Standard Container Quantity
The Space
The space required is determined by the following formula
The quantity of containers needed to hold inventory X The

physical dimensions of each containers
Calculate rack storage space needed
1. Use container dimensions (Length, Width, Height) to

calculate how much square space is required to store
maximum inventory levels
2. Translate the height and width information into
physical storage (rack space) dimensions for the
market (room for how many containers)
Storage Flexibility
Design storage space as flexible as possible enabling

response to periodic needs to change rack configurations as
volumes, variety, sizes of parts containers in the market
change.
141
___________________________________________________________
7.3 Plan to Operate the Purchase Part Market
Operational Plan
A. Select the correct storage media to hold parts

B. Develop an address system
C. Put in place procedures to place and pick parts
D. Put in place procedures for reacting to inventories
beyond the maximum levels
E. Determine the minimum inventory levels and reorder
points and put in place procedures for reacting to
minimum inventory levels
A. Select the correct Storage media to hold Parts
Various types of storage available to hold parts:
1: Flow Rack
142
___________________________________________________________
Bloc
k Street
table Addre
numb
s ss of
ers
House
bin:
numb
ers A32=B
lock A,
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2
Flow rack storage is preferred method of storage.
Ideal parts can be moved as directly as possible from
the docks onto the rack.
2. Pallet Storage
Pallet storage media may be used for:
- Parts too big or heavy to fit on flow rack

- Production volumes are high
143
___________________________________________________________
- Standard container is very large

Pallets are moved directly to a designated
location
3. Storage for Low Volume parts
High quantity containers such as fasteners require
delivery on a replenishment basis. Instead of
delivering a whole box to cells (with days or weeks
worth of material), Material Handler to scoop out a
small amount into a smaller container and deliver that
quantity
B. Develop an address System
Develop a formal address system for
1. Parts storage locations in the market
144
___________________________________________________________
Create rack address using:
1. Letters for vertical placement (the Rack level)

2. Numbers for horizontal placement (the rack row)
3. Section number of the market area which housed
the particular rack
Example of part location address: A, 1,111 (ie.
section A, Level 1, item code no. 111)
2. Address System for entire Facility
Create Address system for entire facility that designates
physical spots in the plant to reference the location of each
cell. Physical spots are column A1, A2, B1, B2, C1, C2 etc.
Each cell is identified on the floor with a visual (usually a large
sign hanging over or near the cell)
Example: Address as (8,B2) indicates work cell 8 near column
B2
3. Handling Nuts, Bolts, Fasteners and other small items
small and C class items like Nuts, Bolts, Fasteners are store
on a shelf in two containers
Container 1 - the material handler workout
Container 2 – backup
C. Put in place procedures to place and pick parts
Procedures (standards) are required to systematize entire

storage and to make it easy and efficient access.
145
___________________________________________________________
Standards and procedures can be made for
- Loading parts in the market

- Picking parts from the market for delivery to cell
- Maintaining strict FIFO fullform
D. Put in place procedures for reacting to inventories

beyond the maximum level
Establish an over flow area adjacent to the market. To

manage the over flow area, establish a board that
clearly indicates:
1. What is in the area

2. The reason it is there
3. Plan to get the material out and back to their
proper location in the market
Overflow board and overflow area
Over Flow
Part no. XY!
2.04 Over
prod
8.04
Get
order
146
___________________________________________________________
Part no. YY23
3.05
Production
down
16.05
Take in
planning
The placement of information board mirrors the placement

of actual inventory on the floor.
Each active rectangle represents:
1. Part number
2. Top of the diagonal the day of receipt of overflow
and why it occurred
3. Bottom of the diagonal the day the overflow is to
be removed and the plan to accomplish this task.
E. Determine the minimum inventory levels and

reorder points and put in place procedures for
reacting to minimum inventory levels
Set minimum inventory levels for each part number at

the point called minimum inventory level when just
enough material is still on hand so supplier parts could
be expedited to the facility to prevent experiencing a
parts shortage.
Considerations for supplier expedite time:
147
___________________________________________________________
1. Supplier location
2. Time to communicate
3. Level of finished goods inventory
4. Production time
5. Transport interruptions
Minimum inventory levels typical calculation example
Communication and set up truck = 1.0 hr
Load Truck = 1.0 hr
In Transit = 3.5 hrs
From Dock to Operations = 0.5 hrs.
Total expedite time = 6.0 hrs
Minimum hours in purchased market = 6.0 hours
148
___________________________________________________________
If usage is 3 containers per hour of the part (from

PEEP) 6 hours X 3 containers per hour = 18
containers minimum
Treat minimum inventory levels as if there are no parts

available.
7.4 KANBAN - “SIGN” OR “SIGNBOARD” OR

“SIGNAL”
KANBAN is the specific tool for:
- Controlling information (functions as a physical tool)
- Regulating material conveyance (combines control

over movement of material with respect to both time
and quantity)
KANBAN is thus a signaling device that gives authorization

and instruction for the production or withdrawal of
items/goods OR a Japanese manufacturing system in which
the supply of components is regulated in a value stream
KANBAN“forms”
KANBAN paper cards are the best and most common

examples of these signals within a single facility
KANBAN can be:
- Triangular metal plates

149
___________________________________________________________
- Colored balls
- Electronic signals (When communicating over long
distances or inter facility)
- Or any other devices that can convey the needed
information while preventing introduction of erroneous
instructions.
Basic Information in a KANBAN
- Part Name
- Part Number
- External or internal supplying process
- Lot size
- Pack quantity
- Storage Address
- Consuming process address/location
Purpose of KANBAN
- Prevent overproduction or material between

production process
- Provide specific production instructions between
process based upon replenishment principles
- Serve as a visual control tool for production supervisor
to determine schedule adherence status
- Establish a tool for continuous improvement
- Overtime reduction in the number of KANBAN since
each KANBAN represents a container of inventory
150
___________________________________________________________
Types of KANBAN
KANBAN
Production Instruction Parts Withdrawal
Signal Interprocess
In process KANBAN for Supplier
KANBAN KANBAN for
scheduling internal KANBAN or
scheduling flow batch externla
proces purpose
process pupose
1. Production KANBAN
Instruction KANBAN signals to make

something/products to an upstream process for a
downstream process hence Production KANBAN
called “Make KANBAN ”
2. Parts Withdrawal
Withdrawal KANBAN signals that something/products

need to be removed from inventory (which then
triggers replenishment) and conveyed to a
downstream process hence its called “Move
KANBAN”
3. In-Process KANBAN
151
___________________________________________________________
The in-process KANBAN is used to convey make

instructions for small amounts (at least one pitch
corresponding to one pack quantity) to an upstream
process
Typical uses include scheduling final production areas

based upon withdrawal of inventory from a market or
a direct replenishment signal from a customer
Signal KANBAN
152
___________________________________________________________
The signal KANBAN is used to convey make

instruction for large quantities to upstream batch
process. Signal KANBAN utilizes lot size in
conjunction with markets to feed downstream process
while still allowing time for changeover to occur at
upstream process There are three variations on the
signal KANBAN: Triangle KANBAN, Pattern KANBAN
and Lot making.
4. Inter process KANBAN
The inter process KANBAN is used to signal the need

to withdraw parts from a storage area and convey them
to a downstream process within a facility.
A prerequisite for use of the withdrawal KANBAN is the

creation of a material market as well as determination
of storage quantities at line side
It is normally employed in conjunction with continuous

flow cells that use a large number of parts from
internal or external sources
153
___________________________________________________________
Supplier KANBAN
The supplier KANBAN is used to signal the need to withdraw

parts from external supplier for conveyance to a purchased-
market or central market at the downstream process
154
___________________________________________________________
Other Types of KANBAN
1. Temporary KANBAN
There are short term events that require additional
KANBAN to be injected into the system for smooth
production.
Reason could be temporary buildup of inventory to
adjust lost time. It is for one time use only and shows
an expiry date
2. KANBAN in combination (Dual card KANBAN)
Production and withdrawal KANBAN are used in

combination to control pull production between processes
where some work-in-process must be stored in markets
Dual card KANBAN allows lot splitting, the transfer batch

quantity between work stations, governed by withdrawal
155
___________________________________________________________
KANBANs, may be a smaller quantity than the production

batch size governed by production KANBAN.
Prerequisites for successful KANBAN implementation
- Reasonably stable demand

- Reasonably capable process
- Preventive maintenance of TPM
- Reasonably short change over times
- Disciplined workforce – including management
Priority KANBAN Board
- Operations where there is changeover and/or

changing priority KANBAN board is the usual option
- It displays all the products that go through the work
centre
- The board indicates priority as 1,2,3 …or has bands of
green, yellow or red
156
___________________________________________________________
- KANBAN hanging in the green zone is a low priority

authorization and in the red zone the product to be
taken the very next one
Number of KANBAN cards
The general rule on KANBAN is to start “loose”, with

generous amount of safety stock and to move towards
“tight KANBAN” gradually, but steadily.
The philosophy is to gradually reduce inventory (Muda)

either by removing/reducing KANBANs or reducing the
KANBAN quantity.
The number of KANBAN depends on demand. When

demand changes the number of KANBAN should change.
In line with lean manufacturing the number of cards in

circulation should be generally “less than last time”
progressively,
7 – Rules for using KANBAN
1. The downstream process (Customer) pulls from the

upstream process
2. The upstream process (Supplier) produces and
replenishes the quantity taken away
3. No defects/Defective parts should be allowed to pass
on to the next process
157
___________________________________________________________
4. KANBAN must be always attached and conveyed with

the part or container
5. No parts can be produced or conveyed without a
KANBAN instruction
6. The quantity indicated on the KANBAN must equal the
actual amount in th container (to ensure accuracy of
information)
7. The numbers of KANBAN is reduced carefully to lower
inventories and reveal problems.
158
___________________________________________________________
“Costs do not exist to be calculated. Costs exist

to be reduced.”
Taiichi Ohno
159
___________________________________________________________
8 LEAN in SERVICE
8.1 Introduction of service
Following model indicates interrelation of various

services
160
___________________________________________________________
8.2 Wastage in Service
Manufacturing Business Process
Transportation Transportation of
Documents
Motion Unnecessary motion
Defects Errors in documents
Processing Process steps and

approvals
Waiting Waiting for the next step
Inventory Backlog of work
Overproduction Doing more/faster than

required
8.3 Basic steps of improvements
Following four basic steps are applicable for lean in

office and workplaces
A. Stabilize
B Standardize
161
___________________________________________________________
C. Visualize
D. Improve
A: Stabilize
Objective of this step is to create predictable and repeatable

outputs. In office and service environment, “we never know
what we are going to get”, is a common mantra. In office
environment the “product” is not as tangible so it can be
difficult to assure the quality of the output.
Steps:
1: Identify the source of instability
This is most often an inadequate understanding of customer

needs. Some time one may even find a complete disregard
to meeting customer needs. In other words, service providers
no longer hear the “Voice of Customer”
2: Clearly defining the needs of the customer and

documenting them in simple ways
3: Define a specific process for all employees to understand

and follow
B: Standardize
When implementing lean in service, you will find that you

already have some stability within your process, and
standardizing will then become your starting point.
162
___________________________________________________________
C: Make Visible
Our Key objective with this step is to have workplace “speak”

to us. Visual communication is the most effective and
efficient method of communication.
A visual workplace is one that is easier to manage over time.

With work instructions and prioritization rules posted visibly,
less time will be needed to direct the most basic activities.
D: Improve (Continuously)
Regardless of the approach, there will be a high level of

improvement activity for some time, perhaps two to three
years.
8.4 Principles of Lean Service
The concept underlying lean service is six simple principles

that correspond closely with those of lean production.
1. Solve the customer’s problem completely by insuring

that all the goods and services work and work together
2. Don’t waste customer’s time
3. Provide exactly what the customer wants
4. Provide what is wanted, and exactly where it is wanted
5. Provide what is wanted, where it is wanted, and exactly
when its wanted
6. Continually aggregate solutions to reduce the customer’s
time and hassle
163
___________________________________________________________
8.5 Business Process Mapping
Mapping the steps in a service is the best way to see

opportunities for improvements. A map can reveal how
broken processes, waste providers’ and consumers’ time and
money could be minimized.
Steps of BPM
1. List down all the steps from starting of the service to

customers receiving the desired output
2. Gauge time required for each listed down activities
3. Draw boxes representing the each above activities. Size
of each box should bin proportion to the time needed to
complete the corresponding task
4. Identify Value adding and Non Value adding time within
the activity
5. Gauge average serving time by calculating total time of
all activities.
6. Identify the percentage of VA time and NVA time from
all total time
7. Identify the activity which takes maximum time
8. Use Lean tools ie. Why-Why and root cause analysis to
decrease NVA in that particular activity
9. Map the process again after reducing or eliminating NVA
10. Repeat the process till you can reduce NVAs from all the
activities
164
Notes:
Notes:
INDEX
10 Principal Components of Fishbone Diagram 27, 115

Visual Communication 59 Flow Management 14, 26, 29
3 Golden Rules 61 FLOW MANAGEMENT 64
5S 13, 26, 29, 32, 33, 34, 35, Flowchart 120, 121
36, 37, 48, 49, 50, 51, 52, Focused Improvement 89
53, 54, 55 Future State Mapping 69
5S Philosophy 13, 32 Green Abnormality Cards 44
7 – Rules for using KANBAN Histogram 116, 117
151 History of QM 112
8 pillars of TPM 14, 80 Human Management 26, 28,
A BRIEF HISTORY OF 29
LEAN 2 Improving the Internal Setup
Applying SMED to Internal 109
Operation 108 In-Process KANBAN 146
Autonomous Maintenance Inter process KANBAN 148
80, 81, 88, 90, 97 Introduction of service 15,
Basic Quality Tools 14, 114 154
Basic steps of improvements Inventory Turns 13, 17
15, 155 KAIZEN 14, 129
Benefits 13, 34, 64, 75, 132 LEAN BASICS 10
Business Process Mapping LEAN in SERVICE 15, 154
15, 27, 158 Lean Model 13, 26
Calculate rack storage space Lean Today 13, 7
needed 136 Losses in Process Industry
Calculate the quantity of 14, 104
containers 136 minimum inventory levels
Cellular Design 14, 74 137, 142, 143
Check sheets 115, 123 MTBF 27, 101, 110
Checklist 13, 51, 52, 107 MTTR 27, 101, 110
Control Charts 125 Muda Inventory 23
Current State Mapping 68 Muda of Inventory 17, 29
Cycle Time 13, 12, 13 Muda of Motion 17, 19, 29
Definition of TPM 14, 79 Muda of over processing 17
Develop an address System Muda of Over Processing 22,
138 29
Early Developments See Muda of Over production 18
Early Management 93, 94
Muda of Over Production 24, SEIRI 40
29 Seiso 46
Muda of Rejection 17 SEISO 44
Muda of Rework/Defect 21 SEITON 41, 43
Muda of Transportation 17, Select the correct Storage
18 media to hold Parts 137
Muda of Waiting 17, 20, 29 Service Management 26, 27,
OEE 27, 88, 99, 100, 110 29
Office TPM 96, 97 SERVICE MANAGEMENT
Parts Withdrawal 146 15, 132
Plan to Operate the Set up Time 106
Purchase Part Market 137 Seven Types of wastes
Planned Maintenance 90, 91 (Muda) 17
Poka Yoke 14, 127 Shitsuke 49
Principles of Lean Service15, SIGN” OR “SIGNBOARD”
157 OR “SIGNAL 143
Priority KANBAN Board 150 Signal KANBAN 147
Production KANBAN 145, Single Minute Exchange of
146 Dies 14, 106
Purchased parts Buffer Spaghetti Diagram 14, 26,
Calculations 135 70, 71
Put in place procedures for Storage Flexibility 136
reacting to inventories Supermarket 15, 70, 133
beyond the maximum level Supplier KANBAN 149
140 Takt Time 13, 16, 69
Put in place procedures to The Ford System 13, 5
place and pick parts 137, 140 Throughput time 13, 10, 11
Q.C story board 126 Total Productive
QM Timeline 112 Maintenance 26, 27, 29
Quality Maintenance 94, 95, TOTAL PRODUCTIVE
96 MAINTENANCE 14, 78
Quality Management 26, 27, Toyota Production System
29, 112 13, 2, 5
QUALITY MANAGEMENT TPM Board 14, 103
14, 112 TPM focuses on achieving 79
Red Abnormality cards 44 TPM History 14, 78
Safety, Health and TPM Matrix 14
Environment 97, 98 TPM Measures 14, 99
Scatter Plot 121, 122 Training and Education 91,
Score Card 54 93, 97
SEIKETSU 47 Types of KANBAN 145, 149
Seiri 37, 39 Value Adding Ratio 13, 16
Value Stream Mapping14, 64 Wastage in Service 15, 155
Visual Management 13, 56
We Coach, Train and Assist For:
• Lean Management
• Lean Six Sigma
• Six Sigma (Yellow Belt)
• Six Sigma (Green Belt)
• Material Flow Cost Accounting (MFCA)
• Time & Motion Study
• Production Norms
• Incentive & Pay Scale design
• Standard Operating Process Design
• Method Study
• Business Excellence
• Operation Excellence
• Office Excellence
• ZED – Zero Effect Zero Defect
• LEAN Marketing
• Industry 4.0 / IOT – Digital/Paperless Factories
For more detail:
Login to: www.effortsconsulting.com

Email us on: info@effortsconsulting.com
THE AUTHOR
Japan Trivedi (BE Industrial,

Business Management, LSSBB
Certified, Lean Diploma, MFCA –
APO, Japan) has over 16+ years
of line and staff experience in
transforming companies,
production planning, inventory
control, business process
optimization and operations
management in Manufacturing
and Service Sectors. A Graduate
from Industrial Engineering
stream and Post Graduate in Business Management, he has
led the execution and transform many companies across
Asian Countries. He has developed and trained more than
1000+ people in his various assignment. As Director and
Founder of Efforts Consulting (www.effortsconsulting.com)
and Japan’s Training System (www.japantrivedi.com), he has
designed and delivered training programs, seminars,
conferences and workshops for various SME, MSME and
Large Scale organizations.
Over the last decade Japan Trivedi has concentrated on the

implementation and education of Lean Transformation
systems. He helps manufacturers and business units across
a wide variety of industries to convert their current operating
systems from traditional order launch/expedite system to a
Lean system.
Key Features
This “Lean Transformation” handbook provides complete

guidance for transform the business without the aid of a
consultant. This book is the proven, objective, standard and
complete “how to” sequential series of progressive steps are
easy to understand and use to effect business transformation
to lean.
This manual illustrates the methodologies that will help you to

produce higher quality products at a lower cost with faster
response time. The results: improved PROFIT Margin and
increased MARKET share. The author also provides a
toolbox of techniques for problem solving, continuous
improvement and for operating lean transformation exercise
on a day-to-day basis.
www.japantrivedi.com www.effortsconsulting.com
Follow us on:
Face-Book: www.facebook.com/coachjapantrivedi
Linked in: www.linkedin.com/INjapan-trivedi
You-tube: www.youtube.com/Japan
E-mail: info@effortsconsulting.com,
japan@japantrivedi.com

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LEAN

Copyright © [2017] [Japan Trivedi] All rights reserved.

First paperback edition printed [2017] in INDIA

No part of this book shall be reproduced or transmitted in any form

For more copies of this book, please email:

Designed and Set by EFFORTS Consulting

Cover design by EFFORTS Consulting

Although every precaution has been taken in the preparation of

No person operates in vacuum. I have been the beneficiary of the

In times of economic ups and down, companies often start looking

1: A BRIEF HISTORY OF LEAN

2: FUNDAMENTALS OF LEAN TRANSFORMATION

3: 5S & VISUAL MANAGEMENT

5: TOTAL PRODUCTIVE MAINTENANCE (TPM)

“Why not make the work easier and more

1: A BRIEF HISTORY OF LEAN

Lean Manufacturing is being practiced since its origination

The lineage of Lean manufacturing and Just In Time (JIT)

1.1 Early Developments

Whitney developed this about 1799 when he took a contract

For the next 100 years, manufacturers equipped themselves

As products moved from one discrete process to the next

• What happened between processes

• How multiple processes were arranged within the

• How the chain of processes functioned as a system.

• How each worker went about a task

This changed in the late 1890's with the work of early

Frederick W. Taylor pioneered focusing workers and more

The concept of applying science to management was sound

Frank Gilbreth (Cheaper By The Dozen) added Motion

Lillian Gilbreth brought psychology into the mix by studying

1.2 The Ford System

Ford's success inspired many others to copy his methods. But

1.3 Toyota Production System

attitudes and demeaning job structures were unworkable in

Toyota soon discovered that factory workers had far more to

Another key discovery involved product variety. The Ford

Shingo, and Ohno's suggestion, did inception to work on the

Soon the productivity and quality gains became prominently

1.4 Lean Today

As lean thinking continues to spread to every country in the

retail, healthcare, construction, maintenance, and even

"Improvement usually means doing something

2: Fundamental of LEAN TRANSFORMATION

2.1 Throughput time

Manufacturing throughput time “is the amount of time

• Processing time - This is the time spent transforming

• On each stage there should some change in product’s

If these three conditions are fulfilled then the activity can be

of Lean Management increases value adding ratio (VAR),

How is Lean defined?

Lean means to make organizations fit by identify and reducing

2.2 Cycle Time

The time taken to do one repetition of any particular process,

Cycle time is commonly categorized into:

Manual Cycle Time: The time loading, unloading,

Machine Cycle Time: The processing time of the machine

Auto Cycle Time: The time a machine runs un-aided

Overall Cycle Time: The complete time taken to produce a

Total Cycle Time: This includes all machines, processes,

2.3 Takt Time:

Takt time, derived from the German word Taktzeit,

For example, if the customer wants to buy 10 units per week,

Assuming a product is made one unit at a time at a constant