Glossary of Lean Manufacturing Terms

- linking of manual and machine operations into the most efficient combination to

- a pull system that uses color-coded cards attached to parts or part containers to regulate

- the process of analyzing the flow of information and materials in a manufacturing environment and continuously improving the process to achieve enhanced value to the

Takt time sets the pace of production to match the rate of customer demand and becomes


Interesting question isn¶t it?Lots of people talk about lean manufacturing, but when it comes to Understanding these concepts and principles will help us in understanding the lean manufacturing

muda, the Japanese word for waste, mura, the Japanese word for inconsistency, and muri, the


If lean manufacturing system can implement in the wet proce ssing then we will be more beneficiary

Lean Focus

CUSTOMER FOCUS Ensuring Internal and External customer input and \ feedback assures quality and customer satisfaction,

FOCUS ON WASTE The aim of Lean Manufacturing is the elimination of waste in every area of the organizationincluding Accounting Product design Supplier Networks Quality HR Safety Manufacturing Engineering


Objectives of Lean Manufacturing

Lean Manufacturing, al called Lean Production, i a set of tools and met odologies t at The main benefits of this are lower production costs, increased output and shorter

1. Defects and wastage - Reduce defects and unnecessary physical wastage, including excess use of raw material inputs, preventable defects, costs associated with reprocessing defective items, and unnecessary product characteristics which are not required by customers; Cycle Ti es - Reduce manufacturing lead times and production cycle times by reducing waiting times between processing stages, as well as process preparation times model conversion times; Inventory levels - Minimi e inventory levels at all stages of production, particularly Lower inventories also mean lower working capital requirements;

Labor productivity - Improve labor productivity, both by reducing the idle time of workers and ensuring that when workers are working, they are using their effort as ; Utilization of equipment and space - Use equipment and manufacturing space more efficiently by eliminating bottlenecks and maximi ing the rate of production though existing equipment, while minimi ing machine downtime; Flexibility - Have the ability to produce a more flexible range of products with Output ± Insofar as reduced cycle times, increased labor productivity and elimination of bottlenecks and machine downtime can be achieved, companies can generally Most of these benefits lead to lower unit production costs ± for example, more effective use of equipment and space leads to lower depreciation costs per unit produced, more effective use of labor results in lower labor costs per unit produced and lower defects lead to lower cost of goods


What kinds of companies benefit most from lean? Lean is most widely used in industries that are assembly-oriented or have a high amount of These are typically industries for which productivity is highly influenced by the efficiency and attention to detail of the people who are working manually with tools or operating For these kinds of companies, improved systems can eliminate significant levels of waste or Examples of this include wood-processing, garment manufacturing, automobile assembly,

Since Lean Manufacturing eliminates many of the problems associated with poor production scheduling and line balancing, Lean Manufacturing is particularly appropriate for companies This is particularly significant in Vietnam where we believe that many private Vietnamese manufacturing companies are operating significantly below their potential capacity, or experiencing a high level of late-deliveries, due to problems with their current production

Lean Manufacturing is also appropriate in industries for which it is a strategic priority to shorten the production cycle time to the absolute minimum as a source of competitive

Traditional Manufacturing Scheduling Production Lead Time Batch Size Inspection Layout Empowerment Inventory Turns Flexibility COGS Forecast - push Stock Long Large - Batch & Queue Sampling - by inspectors Functional Low Low - <7 turns Low High and Rising

Lean Manufacturing Customer Order - pull Customer Order Short Small - Continuous Flow
- at source by workers

Product Flow High

High Lower and Decreasing

What Types of Waste?

However, this list has been modified and expanded by various practitioners of lean manufacturing 


Transportation Wasted Motions Excess inventory Wait time 

Scrap or rework  Over-processing  Over-production Transportation - Transportation includes any movement of materials that does not add any The idea is that transportation of materials between production stages should aim for the ideal that Transportation between processing stages results in prolonging production cycle times, the

Causes of Transportation Waste Poor plant layout Poor understanding of the process flow for production Large batch si es, long lead times, and large storage areas Wasted Motion ± Motion includes any unnecessary physical motions or walking by workers For example, this might include walking around the factory floor to look for a tool, or even unnecessary or difficult physical movements, due to poorly designed ergonomics, which slow down

Causes of Motion Waste machine effectiveness Inconsistent work methods Failure to take ergonomic issues into consideration Poor facility or cell layout Poor workplace organi ation and housekeeping movements while waiting

Excess Inventory ± Inventory waste means having unnecessarily high levels of raw materials, Extra inventory leads to higher inventory financing costs, higher storage costs and higher defect

Causes of Excess Inventory Compensating for inefficiencies and unexpected problems Product complexity Unleveled scheduling Poor market forecast Unbalanced workload Unreliable shipments by suppliers Misunderstood communications Reward systems

Waiting results in a significant cost insofar as it increases labor costs and depreciation costs per unit

Causes of Wait Time Waste Unbalanced work load Unplanned maintenance Long process set-up times Misuses of automation Upstream quality problems Unleveled scheduling Poor Communication Scrap or rework±Requires additional resources and time to correct defects before shipping or

Causes of Scrap or Rework Little or no process control Poor quality standards or inconsistent quality standards Lack of or little planned equipment preventive maintenance work instructions Customer needs not understood

Over-processing ± Over-processing is unintentionally doing more processing work than the customer requires in terms of product quality or features ± such as polishing or applying finishing

Causes for Over Processing Waste Product changes without process changes Just-in-case logic True customer requirements undefined Over processing to accommodate expected downtime Lack of communication Redundant approvals excessive information Over-production ± Over-production is unnecessarily producing more than demanded or This increases the risk of obsolescence, increases the risk of producing the wrong thing and However, there are some cases when extra supplies of semi-finished or finished products are

Causes for Over Production Just-in-case logic

Misuse of automation Long process setup Unleveled scheduling Unbalanced work load Over engineered Redundant inspections Underutili ed human resources ± The lack of involvement and participation of the employees in

Causes of People Waste Old guard thinking, politics, the business culture Poor hiring practices Low or no investment in training Low pay, high turnover strategy Management thinking it has to ³drive´ everything instead of involving those who know the process the best Knowledge Disconnection ± This is when information or knowledge isn¶t available where or For example, unavailability of a mixing formula may potentia suspend the entire process or lly

Elements for Lean Manufacturing
The Five Primary Elements for lean

manufacturing program, and it is the full deployment of these elements that will propel a company on a path

Five Primary Elements of Lean Manufacturing

The aspect addressing visible, results-based performancemeasures; targeted improvement; and team

The aspect that provides definition for operating rules andmechanis for planning and controlling ms

Lean Manufacturing Tools & Methodologies

Standard Work means that production processes and guidelines are very clearly defined and communicated, in a high level of detail, so as to eliminate variation and incorrect The goal is that production operations should be performed the same way every time, When production procedures are not highly standardized, workers may have different A high level of process standardization also makes it easier for the company to expand The standard work guidelines used in Lean Manufacturing are typically defined in 2000 on ³Control of Production and Service Provision´, particularly in terms of

Standard Timing

Standard in process Inventory

Standard work sequence

Standard work and flexibility lthough standard work requires a high level of detail, in Lean Manufacturing the standard work guidelines should be updated as frequently as necessary to incorporate

Visual Management Visual Management systems enable factory workers to be well informed about production procedures, status and other important information for them to do their jobs as effectively as Large visual displays are generally much more effective means of communication to workers on the factory floor than written reports and guidelines and therefore should be used When it comes to improving compliance with a process, visual presentation helps the team better understand a complicated process including the correct sequence of events, the correct way to perform each action, internal and external relationships between actions, and other Visual Displays - Charts, metrics, procedures and process documentation which are For example, color-coded panel for temperature or speed setting control limits that

Visual process indicators ± These communicate the correct production processes or For example, this would include the use of painted floor areas for non-defective stock

Quality at the Source, also called ³Do It Right the First Time´, means that quality should be built into the production process in such a way that defects are unlikely to occur in the first Lean Manufacturing systems often refer to the Japanese word ³Jidoka´ which means that

In-line inspection ± The main responsibility for quality inspection is done in-line by lthough some independent QC inspectors are often still used in lean companies, their ideally there are no QC inspectors because they also are considered a waste in Lean

standard processes are being done correctly by workers, or in a case where defects have From this perspective, the primary job of a quality control team is to troubleshoot the root cause of defects, implement preventive measures and provide training to workers to

Clear accountability among workers ± In Lean Manufacturing, unless there is an intentional inventory of semi-finished products, there is a direct handoff between each upstream stage and downstream stage, meaning that the workers at each upstream stage are fully responsible for the quality of the materials they deliver to the downstream stage On the other hand, if there is a large buffer of inventory between two production stages, the workers at the upstream process are less likely to feel personally accountable for any , sometimes referred to as ³Poka Yoke´, are implemented so that defective materials do

Intentional shutdowns ± When defects are generated, production is shut down until This helps ensure a culture of zero tolerance for defects and also prevents defective

Value Stream Mapping Value stream mapping is a set of methods to visually display the flow of materials and The objective of value stream mapping is to identify value-added activities and non valueValue stream maps should reflect what actually happens rather than what is supposed to

Value Stream Mapping is often used in process cycle-time improvement projects since it It is also used for process analysis and improvement by identifying and eliminating time

Total Productive Maintenance assigns basic preventative maintenance work including inspection, cleaning, lubricating, TPM clearly assigns responsibility to workers to proactively identify, monitor and correct By allocating this responsibility to the machine operators, maintenance problems are less This also requires the operators to frequently update to the maintenance team about th e machine condition so that potential technical problems could be discovered on a timely basis

In TPM, the maintenance team is responsible for the higher value-added maintenance activities such as improving the equipment, performing overhauls and improvements, fixing problems and


The Five S¶s The Five S¶s are some rules for workplace organization which aim to organize each

Sort ± Sort what is needed and what is not needed so that the things that are frequently

The objective is to minimize the amount of motion required in order for workers to do For example, a tool box can be used by an operator or a maintenance staff who must In the tool box, every tool is placed at a fixed spot that the user can quickly pick it up This way of arrangement can also help the user be immediately aware of any missing

± Keep machines and work areas clean so as to eliminate problems associated with unIn some industries, airborne dust is among the causes of poor product surface or color To be more aware of dust, some companies paint their working places in light colors ± Make the first 3 S¶s a routine practice by implementing clear procedures for sorting, Sustain ± Promote, communicate and train in the 5 S¶s to ensure that it is part of the This might include assigning a team to be responsible for supervising compliance with Preventative Maintenance Preventative Maintenance is a series of routines, procedures and steps that are taken in order In Lean Manufacturing, there is a strong emphasis on preventative maintenance which is essential for minimizing machine downtime due to breakdowns and unavailability of spare When equipment reliability is low, manufacturers are forced to maintain high inventories of However, high inventories are considered a major source of waste and defects in Lean

Kanban ³Kanban´ is a pull-based material replenishment system that uses visual signals, such as color-coded cards, to signal to upstream workstations when inputs are required at a

Production Kanban±

signal from the internal customer to the internal supplier that

Withdrawal Kanban± signal from the internal supplier to the internal customer that the supplier has produced something which is available to be withdrawn by the internal In such case the internal supplier doesn¶t produce more until the withdrawal is made There are many variations on the Kanban system and in fact there are many books dedicated Production Leveling Production leveling, also called production smoothing, aims to distribute production volumes and product mix evenly over time so as to minimize peaks and valle in the ys ny changes to volumes should be smoothed so that they occur gradually and therefore in This will also allow the company to operate at higher average capacity utilization while responsible for placing orders to the factory floor should have a system for automatically In order to apply this methodology, a company needs to know its true capacity as well as

Pacemaker In order to ensure the smooth functioning of continuous flow production in lean manufacturing, each workstation has to produce its product at the correct rate which is not The pacemaker sets the pace of production for the whole production line and the production rates at other workstations are increased or decreased so as to match the rate of

In a Replenishment Pull system, the pacemaker is usually the final workstation such as final In a Sequential Pull system, the pacemaker is often a workstation near the beginning of the

It is too hard to implement the Lean manufacturing system philosophy in the wet processing If it was possible to implement this in the wet processing industry then there are lots of potential t the same time the manufacturing plant will be economically benefited and the consumer can

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