S. Vinodh - Lean Manufacturing - Fundamentals, Tools, Approaches, and Industry 4.0 Integration-CRC - Focal Press (2022)

Lean Manufacturing
Lean Manufacturing concepts are being applied to a variety of industries.

These concepts ensure streamlined processes through a systematic analysis of
wastes and elimination, while enhancing value. This book offers fundamen-
tals, theoretical concepts, case studies, and examples, along with insights for
lean integration in Industry 4.0.
The book offers a comprehensive coverage of topics in Lean Manufacturing
which includes lean elements and tools, performance measures, project selec-
tion, integration, along with other related strategies. It ensures a balance
between theory and practice of Lean Manufacturing by including the imple-
mentation aspects of lean tools. The book will explore insights for Industry 4.0
related to lean concepts and provide details on how they relate. Illustrations
and examples depicting OEE (Overall Equipment Effectiveness) analysis and
value stream map analysis are included. The book also provides case studies
on Lean Manufacturing covering value stream mapping, project selection, and
performance measurement.
Lean Manufacturing: Fundamentals, Tools, Approaches, and Industry
4.0 Integration can be used as a reference for academic researchers and
industry practitioners. Undergraduate and postgraduate students can use it for
a course on Lean Manufacturing. Doctoral students can also refer to it for
advanced concepts, and industry practitioners can use it for practical insights.
Lean Manufacturing
Fundamentals, Tools, Approaches, and
Industry 4.0 Integration
S. Vinodh
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ISBN: 978-1- 032- 0 4045-5 (hbk)

ISBN: 978-1-032-0 4046-2 (pbk)
ISBN: 978-1-0 03-19033-2 (ebk)
DOI: 10.1201/9781003190332
Typeset in Times
by codeMantra
This book is dedicated to my Aunt, Professors, Teachers, Parents, Wife,
Son, Students, Friends, and Well-wishers.
Contents
Preface xi
Acknowledgments xv
Author Biography xvii
1 Introduction 1
1.1 Manufacturing Systems Transition 1
1.2 Origin of Lean Manufacturing 2
1.3 Definition and Concepts of Lean Manufacturing 2
1.4 Comparison of Mass and Lean Manufacturing 4
1.5 Summary 5
2 Lean Principles and Waste Categories 7

2.1 Lean Principles 7
2.2 Muda, Muri, and Mura 8
2.3 Waste and Waste Categories 8
2.4 Waste Analysis 10
2.5 Kaizen 10
2.6 Summary 11
3 Elements of Lean Manufacturing 13

3.1 Overview on Elements 13
3.2 Discussion on Elements ( Value Stream and Value Flow) 13
3.3 Activity Categorization in Value Stream 14
3.4 Push and Pull Production 15
3.5 Stability, Standardized Work, and SOPs for Lean System 16
3.6 Visual Management and Single-Piece Flow Concepts 16
3.7 Summary 17
4 Basic Lean Tools (5S and TPM) 19

4.1 5S Lean Tool 19
4.2 5S Implementation 22
4.3 Total Productive Maintenance – Overview and Pillars 24
4.4 OEE Analysis 27
4.5 TPM Implementation 28
4.6 Summary 30
vii
viii Contents
5 Basic Lean Tools ( VSM and Workcell) 33

5.1 Overview on Process Mapping and Value Stream
Mapping (VSM) 33
5.2 VSM Terminologies and Data Types (Observation/
Measurement, Computation Data) 36
5.3 Construction Steps of Value Stream Maps 37
5.4 VSM Illustration and Case Study 37
5.5 Variants of VSM (Advanced Models of VSM) 39
5.6 Workcell 42
5.7 Case on Lean Tools Selection 43
5.8 Summary 45
6 Supporting Lean Tools and Concepts 51

6.1 Scope of Supporting Tools 51
6.2 Description of Core Supporting Tools (Poka Yoke,
Kanban, Autonomation, Visual Communication,
and SMED) 51
6.3 Optimized Production Technology, Leveled Production,
and Enterprise Resource Planning 54
6.4 Summary 56
7 Project Selection and Training for Lean Implementation 59

7.1 Importance of Project Selection 59
7.2 Project Selection for Lean Implementation 59
7.3 Training and Implementation for Lean 67
7.4 Lean Implementation Levels 68
7.5 Summary 68
8 Lean Performance Measurement 71

8.1 Lean Performance Measures 71
8.2 Assessment Approaches 73
8.3 Case Study on Leanness Assessment 75
8.4 Summary 89
9 Lean Integration with Other Strategies 91

9.1 Lean Six Sigma 91
9.2 Lean and Agile Manufacturing 92
9.3 Lean Sustainability 93
9.4 Summary 94
Contents ix
10 Lean Integration with Industry 4.0 95

10.1 Need and Scope of Integration 95
10.2 Insights on Lean and Industry 4.0
Integration 96
10.3 Analysis of Workforce Attributes for Lean
and Industry 4.0 97
10.4 Summary 98
11 Research Issues in Lean Manufacturing 105

11.1 Application Domains in Lean Manufacturing 105
11.2 Research Avenues in Lean Manufacturing 105
11.3 Summary 108
Index 111
Preface
The book aims at addressing theoretical concepts of Lean Manufacturing with

a comprehensive coverage of curriculum and insights for industry practitio-
ners. It includes waste analysis, elements, lean tools (basic and supporting),
lean integration with other strategies, lean performance measurement, and
insights for lean integration with Industry 4.0. Perceptions for lean integration
with Industry 4.0 are highlighted.
A book on Lean Manufacturing is based on the authors’ academic experi-
ence of teaching the course for undergraduate and postgraduate students as
well on research expertise. Efforts have been taken to meticulously discuss
fundamental terms and concepts of Lean Manufacturing, which serve as
reference for students, scholars, and faculty from academics and practicing
engineers. Lean Manufacturing concepts are being applied in wide industrial
establishments due to their significance in terms of ensuring streamlined pro-
cesses through systematic analysis of wastes and elimination, enhancing value
from the customer’s perspective, and improving process flexibility.
The salient features of the book include a detailed presentation of tools/
techniques of Lean Manufacturing (5S, Total Productive Maintenance (TPM),
Value Stream Mapping (VSM)); metrics associated with lean performance;
case studies on value stream mapping, project selection, leanness assessment;
examples of lean concepts (OEE, takt time analysis); research insights on Lean
Manufacturing with Industry 4.0.
Salient topics include:
• Comprehensive coverage of topics in Lean Manufacturing

(elements, tools, performance measures, project selection, integra-
tion with other strategies)
• Reference for doctoral research students ( advancements and
research issues in Lean Manufacturing)
• Inclusion of practical perspectives (implementation aspects of lean
tools)
• Insights for Industry 4.0 (lean concepts for Industry 4.0 and their
relevance)
• Illustrations and examples ( OEE analysis, value stream map
analysis)
xi
xii Preface
• Case studies on Lean Manufacturing (value stream mapping, proj-

ect selection, and performance measurement)
• Highlights on practical implications (training and implementation
for lean, lean integration with other strategies)
• Ensuring balance between theory and practice of Lean
Manufacturing (theoretical concepts and case studies with practical
relevance)
The book provides a description of concepts, supporting illustrations, exam-

ples. This book aims at focusing on fundamentals of Lean Manufacturing and
its perceptions for practitioners. Case studies on Lean Manufacturing are pre-
sented with insights for Industry 4.0.

Preface xiii

Acknowledgments
The motivation for the development of this book originates from the research
work and publications done by the author for the past 14 years.
As the author of this book, I sincerely thank Almighty God for providing
me with the energy and strength to complete the writing of the book.
I sincerely thank the Director and Administration of our institute and my
department for providing the necessary infrastructure and support for book
writing.
I thank my professors, friends, and well-wishers for their motivation. My
special thanks to my beloved Professor Dr S R Devadasan and his mother Mrs
Irene N Devadason for their motivation, blessings, and support during book
writing. I thank our beloved former Director Professor M Chidambaram for
his continued motivation toward book writing.
I wholeheartedly thank my scholar Vishal for his continued support dur-
ing certain stages of book writing.
I thank my aunt, father, mother, wife, son, sister, nephew, and other family
members for their care and moral support rendered during book writing.
I thank all my research group members (past and present students) for
their support in various research studies that got published in international
journals, which formed the foundation for this book writing.
Finally, I would like to thank my publisher CRC Press (Taylor and Francis
Group) and the editorial team for their help and support during various stages
of book publication.
xv
Author Biography
Dr. S. Vinodh is an Associate Professor in the Department of Production

Engineering, National Institute of Technology, Tiruchirappalli, Tamil Nadu,
India. He completed his Ph.D. degree under All India Council for Technical
Education (AICTE) National Doctoral Fellowship scheme from PSG College
of Technology, Coimbatore, India. He completed his master’s degree in
Production Engineering from PSG College of Technology, Coimbatore, India,
and bachelor’s degree in Mechanical Engineering from Government College
of Technology, Coimbatore, India. He was a Gold Medalist in his undergradu-
ate study. He has published over 175 papers in international journals. He has
research experience in Lean Manufacturing for about 14 years. He received
the highly commended Paper Award from Emerald Publishers for the year
2016. He is the recipient of the Institution of Engineers Young Engineer Award
for the year 2013 in the Production Engineering Division. He is the recipient of
the Innovative Student Project Award 2010 based on his Ph.D. thesis from the
Indian National Academy of Engineering (INAE), New Delhi, India. He exe-
cuted research projects and guided Ph.D. scholars in Lean Manufacturing. His
research interests include Sustainable Manufacturing, Lean Manufacturing,
Agile Manufacturing, Rapid Manufacturing, Product Development, and
Industry 4.0.
xvii
Introduction
1
1.1 MANUFACTURING
SYSTEMS TRANSITION
Over the decades, manufacturing systems have been witnessing a transition
from a craft system to a mass and then further a lean system. A craft sys-
tem focuses on product manufacturing based on the workforce skillset. A few
product variants based on predicted demand as well as customers’ preferences
are manufactured. Craft products were limited to certain geographical regions.
Mass production is supported with interchangeability and moving assembly
lines. Mass manufacturing is characterized by high-volume production based
on dedicated assembly lines or product lines. Mass manufacturing is based on
economies of scale, which state that the unit cost of a product comes down as
a result of high volume production. Mass production enables low-cost manu-
facturing of large volumes through dedicated manufacturing lines. Product
variants are limited. Mass customization facilitates a response to customer
demands with high product variants and options (Hu et al., 2011).
Lean manufacturing is characterized by streamlined processes by means
of waste elimination. It ensures flexibility of processes from the viewpoint
of dealing with few product variants. Lean is based on a pull system where
product manufacturing is based on customer demand. Lean and agile systems
focus on greater control of the supply chain by developing long-term collab-
orative relationships with suppliers (Barlow, 1999). An agile system focuses
on developing product variants in line with customers’ varied preferences. An
agile system includes lean and flexibility components. A sustainable system
includes the development of environmentally friendly products/processes with
Triple Bottom Line (TBL) benefits. A smart system focuses on developing a
smart factory system based on a Cyber-Physical System (CPS) to consider
human-equipment interactions for ultimately developing a smart factory. The
transition of manufacturing systems is depicted in Figure 1.1.
DOI: 10.1201/9781003190332-1 1
2 Lean Manufacturing
Mass System Agile System
Smart System
Craft System Lean System Sustainable System
FIGURE 1.1 Transition of Manufacturing rSystems
1.2 ORIGIN OF LEAN MANUFACTURING

Lean manufacturing has its origins in the Toyota Production System (TPS) based
on JIT (Just In Time) principles, which implies that the raw material has to be
procured just in time, the product manufactured just in time, and the product
delivered just in time based on customer demand. A JIT system enables inventory
handling effectively and inventory reduction is facilitated. In line with TPS adop-
tion from Japanese industries, the term “Lean” has been brought into practice
based on the book written by James Womack – The Machine that Changed the
World. From then onward, the term lean has been brought into practice. The term
“Lean” indicates lesser of everything, i.e. space, inventory, people, or time. Lean
is concerned with setting the process speed regulated by customer demand.
Lean manufacturing originated in Japan and TPS applied lean prac-
tice first. Lean manufacturing was in contrast to conventional manufactur-
ing with the focus on inventory reduction, as lean visualizes inventory as
waste. Lean manufacturing has its focus on product value visualization from
the customer viewpoint (Gupta and Jain, 2014). The birth of lean was with
Japanese TPS in the 1940s, which was based on the idea of facilitating con-
tinuous flow ( Melton, 2005). Lean production originated from TPS with the
concept of recognizing and eliminating waste in line with the lean definition.
Lean production is based on the Kaizen approach (continuous improvement).
1.3 DEFINITION AND CONCEPTS

OF LEAN MANUFACTURING
This section presents definitions and concepts of lean manufacturing.
1 • Introduction 3
1.3.1 Definitions of Lean Manufacturing

Lean is defined as a process with five steps: first customer value, second value
stream, third value flow, fourth pull system, and fifth Continuous Improvement
(CI). Standardization of work processes and procedures is essential with suste-
nance of improvements (Gupta and Jain, 2014).
Lean thinking is associated with the following principles: value identifica-
tion, waste elimination, and flow generation (Melton, 2005).
With reference to the widely cited definitions of lean manufacturing in
literature (Shah and Ward (2003); Holweg (2007)), it can be inferred that lean
manufacturing is defined as the capability of a manufacturing system to ensure
streamlined processes, waste elimination, and value addition. Lean ensures
production in line with customer demand (pull system). A lean system includes
a set of elements, tools/techniques, governing rules for enhancing the competi-
tive performance of organizations.
1.3.2 Concepts of Lean Manufacturing

Lean manufacturing implies speedy, smooth, and economical manufacture.
The term speed implies that manufacturing processes have to be done at a
pace based on customer demand. The term smooth implies that the fluctua-
tions (variations) need to be controlled. The term economical manufacture
implies that a lean system has to be done with the focus on cost reduc-
tion based on economies of scale. Lean manufacturing concepts can be
applied to any kind of processes irrespective of the type of product being
manufactured.
Lean manufacturing is based on the Kaizen philosophy of continuously
improving the process, standardization of work procedures, and sustaining the
improvements attained.
Lean manufacturing aims at elimination of waste, streamlining the pro-
cesses, and enhancing value addition. The term “lean” implies lesser of every-
thing, i.e. space, inventory, people, and time. Lean manufacturing regulates
speed of manufacturing in line with customer demand, smooth manufactur-
ing in terms of fewer fluctuations, and economical manufacture in terms of
reduced cost with waste elimination.
Lean manufacturing is based on the Kaizen approach and aims at CI of
processes irrespective of products being manufactured. Lean manufactur-
ing concepts can be applied to any kind of industry (product manufacturing,
process based, SMEs.). A lean system focuses on the customer in terms of
enhanced value addition from the customer’s perspective. A lean system is
flexible and adaptable to processes. Lean concepts synchronize processes and
enable pull production. A lean system aims at worker-driven CI in terms of

having focus on promoting innovative culture in the organization.
1.4 COMPARISON OF MASS AND

LEAN MANUFACTURING
Mass production is associated with inventory buffers whereas lean production
has minimum inventory in specific lesser Work In Process (WIP). A mass sys-
tem aims at Just In Case deliveries whereas a lean system enables JIT deliver-
ies. Mass production aims at Acceptable Quality Level (AQL) whereas a lean
system aims at perfect first time quality. Mass production aims at maximizing
efficiency whereas a lean system aims at process flexibility and CI. Mass pro-
duction is aimed at repetitive manufacture of similar products through assem-
bly lines. Lean production is incorporated with process flexibility in terms of
handling few product variants through quick change over concepts.
1.4.1 On Time Delivery

A mass system permits early/ late delivery; a lean system is based on JIT
delivery.
1.4.2 Good Quality
A mass system ensures quality through inspection whereas a lean system
ensures quality by in-process gauging.
1.4.3 Low Price
A mass system facilitates cost reduction through economies of scale, whereas
a lean system does so by waste elimination.
1.4.4 Objectives
A mass system aims at cost reduction and efficiency improvement, whereas a
lean system focuses on waste elimination and value addition.
1 • Introduction 5
1.4.5 Improvement
A mass system aims at expert-driven improvement, whereas a lean system
aims at worker-driven improvement.
1.4.6 Focus
A mass system focuses on product, whereas a lean system focuses on the customer.
1.4.7 Production Method

A mass system deals with a high volume of standardized products, whereas a
lean system makes products in line with customer order.
1.4.8 Skill
Mass production requires a narrowly skilled workforce, whereas a lean system
requires teams of multi-skilled workers.
Lean manufacturing combines features of both mass and craft produc-
tion with reduction of cost per product and improvement in quality (Pavnaskar
et al., 2003).
A lean system focuses on cost reduction with quality improvement with
minimal resources (Duguay et al., 1997).
1.5 SUMMARY
This chapter presented the manufacturing system transition and discussed the
characteristics of craft, mass, lean, agile, sustainable, and smart systems. The
origin, definition, and concepts of lean manufacturing were discussed. A com-
parison of mass and lean manufacturing was presented from several perspectives.
REFERENCES
Barlow, J. (1999), ‘From craft production to mass customisation. Innovation require-
ments for the UK Housebuilding industry’, Housing Studies, 14:1, 23–42.
Duguay, C.R., Landry, S., and Pasin, F. (1997), ‘From mass production to flexible/agile
production’, International Journal of Operations & Production Management,
17:12, 1183–1195.
Gupta, S., and Jain, S.K. (2014), ‘A literature review of lean manufacturing’,
International Journal of Management Science and Engineering Management,
8:4, 241–249, DOI: 10.1080/17509653.2013.825074.
Holweg, M. (2007), ‘The genealogy of lean production’, Journal of Operations
Management, 25:2, 2, 420–437.
Hu, S.J., Ko, J., Weyand, L., ElMaraghy, H.A., Lien, T.K., Koren, Y., Bley, H.,
Chryssolouris, G., Nasr, N., and Shpitalni, M. (2011), ‘Assembly system design
and operations for product variety’, CIRP Annals – Manufacturing Technology,
60, 715–733.
Melton, T. (2005), ‘The benefits of lean manufacturing – what lean thinking has to
offer the process industries’, Chemical Engineering Research and Design, 83:6,
662–673.
Pavnaskar, S.J., Gershenson, J.K., and Jambekar, A.B. (2003), ‘Classification scheme
for lean manufacturing tools’, International Journal of Production Research,
41:13, 3075–3090, DOI: 10.1080/0020754021000049817
Shah, R., and Ward, P.T. (2003), ‘Lean manufacturing: context, practice bundles, and
performance’, Journal of Operations Management, 21:2, 129–149.
Lean Principles
and Waste
Categories
2
2.1 LEAN PRINCIPLES
Lean principles are referred from literature studies (Azadeh et al., 2017) and
practical perspectives and are discussed below:
• Customer perspective – Understanding customer requirements

exactly. Lean system focuses on compliance with customer require-
ments effectively.
• Waste reduction – Identification of entities that do not add value
from a customer perspective. As waste does not add value from the
customer’s perspective, wastes need to be reduced and eliminated.
• Product value from the customer viewpoint – Lean aims at fulfill-
ing product value from the customer’s viewpoint and not from the
manufacturer’s viewpoint.
• Pull system – Producing products based on customer demand.
Product manufacture is in line with customer demand.
• Non-value-adding activities elimination – Lean aims at minimiza-
tion and elimination of wastes.
• Doing right the first time – Lean aims at executing activities right
the first time without any mistakes.
• Perfect first-time quality – Lean concepts are based on in process
gauging with quality compliance perfectly.
• Delivery of material right time – Suppliers have to supply raw mate-
rial at the right time to initiate the value stream.
DOI: 10.1201/9781003190332-2 7
• Streamlining of inventory – Inventory has to be reduced and stream-

lined to ensure a smooth flow of value stream.
• Synchronization of processes – Processes have to be synchronized
by reducing inventory and setup time.
• Utilization of creative skills of the workforce – Creative and inno-
vative skillset of the workforce has to be utilized to enable process
innovation.
2.2 MUDA, MURI, AND MURA

The terms muda, mura, and muri are discussed as follows (Pieńkowski, 2014).
Muda implies waste or uselessness. It implies waste-generated tasks. As
per lean theory, seven types of muda are reported. These include unnecessary
transportation, unnecessary inventory, waiting, unwanted motion, overproduc-
tion, inappropriate processing, and defects or nonconformities. Muda leads to
non-value-added tasks and have to be eliminated.
Muri implies overburden. It occurs due to the waste of overloading machin-
ery, equipment, or people beyond capacity. Muri occurs due to a disorganized
workstation and the lack of standardized work. Muri implies waste that hap-
pens due to overburdening facilities beyond the capacity/demand. Muri can be
remedied using organized workstations and standardized work.
Mura implies variation or unevenness. It implies waste or unevenness in
production volume. Forms of mura include variation in production scheduling
or uneven production workload. Mura indicates uneven fluctuations. Mura can
be controlled by minimizing scheduling fluctuations or production workload
fluctuations.
2.3 WASTE AND WASTE CATEGORIES

Waste is an entity that consumes resources but does not add value from a cus-
tomer’s perspective. Waste types are depicted in Figure 2.1. Seven fundamen-
tal waste categories are discussed as follows:
Overproduction – Producing more than what the customer has asked

for
Overprocessing – It includes unnecessary or inappropriate processing
2 • Lean Principles and Waste Categories 9
T I M
1 2 3
Seven Waste
4 W T – Transport
I – Inventory
M – Motion
5
O W – Waiting
O – Overproduction
O – Overprocessing
6
O D - Defects
7
D
FIGURE 2.1 Waste Types
Apart from seven fundamental wastes, the following two wastes are being
considered in lean theory.
Underutilization of workforce creativity or the untapped creativity

of workforce – As lean relies on process innovation, not utilizing
workforce creativity becomes waste
Environmental waste – It refers to wastes in terms of emissions or envi-
ronmental impacts
TABLE 2.1 Waste Analysis

WASTE WASTE CATEGORY PROPORTION (%)
Multiple handling Transportation 10

Excess safety stock Inventory 20
Unsold items
Inappropriate layout Motion 10
Excess queue Waiting 20
Late delivery
Producing more than required Overproduction 10
Inappropriate processing steps Overprocessing 10
Scrap Defects 20
Rework
Total 100
2.4 WASTE ANALYSIS

Following wastes are being analyzed and mapped to waste category with the
corresponding proportion. Table 2.1 presents waste analysis.
2.5 KAIZEN
The term “Kaizen” was derived from the Japanese manufacturing philoso-
phy of creative strategy for business success. Kaizen is a Japanese term which
implies Continuous Improvement (CI). Kaizen is aimed at CI of the process
which forms the basis for business success.
Kaizen is based on process improvement through human effort. In line
with the view of Imai, the process-oriented method is referred to as the PDCA
(Plan-Do-Check-Act)
cycle of CI.
The further cycle is called the standardization cycle SDCA (Standardize-Do-
Check-Act)
cycle.
The two cycles of PDCA and SDCA facilitate CI culture in the organiza-
tions. Kaizen also aims at performance improvement in terms of Quality, Cost,
Delivery (QCD) dimensions (Smadi, 2009).
Some of the tools of Kaizen include:
2 • Lean Principles and Waste Categories 11
• 5 Why technique – To identify the root cause of problem

• 5S – To promote an organized workplace
• Waste elimination (Muda) – Customers do not pay for any activity
which does not add value
• PDCA cycle – Improvement cycle
• Poka yoke – Prevents the occurrence of defects (mistakes)
Kaizen enables the organization-wide process of focused and sustained incre-

mental improvement by ensuring employee involvement at every level of
the organization. Kaizen enables an organization to attain world class status
through long-term drive and commitment toward success and profitability.
2.6 SUMMARY
This chapter presented a discussion on various lean principles. Concepts of
muda, muri, and mura were briefed. Waste types were presented. Waste analy-
sis was presented with a discussion on kaizen concepts.
REFERENCES
Azadeh, A., Yazdanparast, R., Zadeh, S.A., and Zadeh, A.E. (2017), ‘Performance optimi-
zation of integrated resilience engineering and lean production principles’, Expert
Systems with Applications, 84, 155–170, DOI: 10.1080/17509653.2013.825074
Pieńkowski, M. (2014), ‘Waste measurement techniques for lean companies’,
International Journal of Lean Thinking, 5:1, 9–24.
Sami Al Smadi, (2009), ‘Kaizen strategy and the drive for competitiveness: challenges
and opportunities’, Competitiveness Review: An International Business Journal,
19:3, 203–211, DOI: 10.1108/10595420910962070
Elements
of Lean
Manufacturing
3
3.1 OVERVIEW ON ELEMENTS
The elements of a lean system have to be clearly understood before implemen-
tation. They are depicted in Figure 3.1. The five elements include customer
value, value stream, value flow, customer pull, and perfection by Continuous
Improvement (CI) (Gopalakrishnan, 2010).
The customer expects value for money being paid in a lean organiza-
tion. Product value is ensured if it fulfills the customer’s known and perceived
requirements.
Product value from the customer’s viewpoint is essential. Though the
manufacturer may claim that product value is being fulfilled, product value
fulfillment from the customer’s perspective is essential.
Elements are based on chronology. After recognizing customer value, a
value stream is set, and value flow occurs followed by customer pull and CI
with sustenance.
3.2 DISCUSSION ON ELEMENTS

(VALUE STREAM AND VALUE FLOW)
Value stream denotes the sequence of activities in product manufacture from
beginning to end where cost is incurred and value is created. Value creation is
DOI: 10.1201/9781003190332-3 13
Perfection
by C.I
Customer Value
Pull System
Value Flow
Value Stream
FIGURE 3.1 Elements of Lean Manufacturing
ensured in a value stream. In contrast, in a process stream, which happens in

batch/mass production, cost is incurred but value creation is not ensured. In a
value stream, three types of activities are prone to occur:
I. Customer Value-Added (CVA)

II. Necessary but Non-Value-Added
(NNVA)

III. Non-Value-Added
(NVA)

The objective is to maximize value-added activities. A product manufactured

using a value stream based on customer demand is value flow. In contrast,
product flow happens in batch/mass production, where product manufacture is
done using a process stream based on predicted/forecasted customer demand.
The value flow has to be smooth without any bottlenecks. Bottlenecks have
to be removed to ensure that the value flow is happening without any hurdles.
Bottlenecks include poorly organized layout, non-understanding of customer
requirements, production held up through improper tooling, downtime, pro-
ductivity variation across shifts.
3.3 ACTIVITY CATEGORIZATION

IN VALUE STREAM
There are three types of activities in a value stream:
3 • Elements of Lean Manufacturing 15
1 CVA – These activities are done for fulfilling customer require-

ments and are essential for ensuring product performance.
These activities have to be focused meticulously. The
proportion of CVA activities serves as a benchmark for
organizations.
Examples: Drilling, milling, or grinding process with the
focus on value addition.
2 BVA – These activities are forcefully induced in the process
because of government regulations and compliance procedures.
These activities do not add value but are essential for comple-
tion of business processes.
Examples: Inspection due to compliance with government
regulations and procedures.
3 NVA – These activities do not add value and are sheer waste.
Removal of these activities does not affect product performance.
Lean concepts aims at elimination of these activities.
Example: Seven forms of wastes belong to NVA activities.
3.4 PUSH AND PULL

PRODUCTION
Push production: Production is based on forecasted demand. Products are pro-
duced and pushed to market with the scope for selling. In this production type,
more inventory gets accumulated. Products may get obsolete. Work In Process
(WIP) will not be limited (Hopp and Spearman, 2004). Product is produced
without knowing customer need. Mass production is push based as it caters
to market forecast and customer demand. All three forms of inventory (Raw
Material Inventory (RMI), WIP, and Finished Goods Inventory (FGI)) get
accumulated in a push system. Interruptions happen in a process stream with
reference to push production.
Pull production: Production is based on customer demand. Products are
produced with definite customer need. In this production, inventory is reduced.
WIP is also limited (Hopp and Spearman, 2004). A pull system is based on
demand from both external and internal customers.
Lean production is pull based as it produces purely based on customer
demand. As the system works based on customer demand, WIP occurs,
which can be streamlined. Pull production aims to streamline inventory
so that products can be manufactured and delivered just in time to the
customer.
3.5 STABILITY, STANDARDIZED WORK,

AND SOPS FOR LEAN SYSTEM
Stability refers to making the system stable with minimization of fluctuations.
Standardization aims at ensuring consistency wherein process steps and pro-
cedures are executed repeatedly. Lean aims at standardized procedures and
instructions to ensure consistency (EL-Khalil et al., 2020).
Standardization reduces process variations for improving operational effi-
ciency and effectiveness. Standard Operating Procedures (SOPs) and Standard
Instructions (SIs) are evolved to control fluctuations in system due to handling
by different operations. As variations happen because of operators getting
changed as per shift, procedures and instructions need to be standardized.
Reasons for unstability need to be found and the system has to be made
stable. Unstability may result from various factors such as machinery, tooling,
man, and so on. Once the causes for unstability are found and removed, the
system is made stable.
Standardized work ensures work procedures need to be standardized to
ensure consistency. SOPs need to be evolved to ensure that system variations
are minimal. The effectiveness of the system can be ensured through stabiliza-
tion, standardization, and evolving SOPs.
In line with SOPs, SIs need to be evolved.
3.6 VISUAL MANAGEMENT AND

SINGLE-PIECE FLOW CONCEPTS
Visual management is applied as a comprehensive system to facilitate an
effective understanding by means of displaying trend charts, work schedules,
problem areas. It enables effective and immediate feedback. Also, it includes
techniques to enable visual communication, visual control, and visual work-
place. Lean emphasizes on visual management to uncover the hidden aspects.
Lean brings about transparency in operations. Single-Piece Flow (SPF) enables
the manufacture of a product one by one as a single component without any
delays/inventory
pile-up.
Visual management reveals bottlenecks and it contributes to operational
transparency. Some of the cited functions of visual management include trans-
parency, CI, simplification, and so on (Yik and Chin, 2019). Lean tries to
3 • Elements of Lean Manufacturing 17
uncover hidden issues and promote system transparency. Visual management

in terms of evolving visual controls and promoting visual communication has
to be ensured. Lean concepts are concerned with transforming batch produc-
tion to SPF. SPF facilitates production of parts one by one and enables syn-
chronized production with inventory reduction. Product movement happens in
a regulated manner without bottlenecks/interruptions.
3.7 SUMMARY
This chapter presents the discussion on various lean elements. Concepts of
value stream and value flow are briefed. Three types of activities in the value
stream are discussed. Push and pull production concepts are briefed. Stability,
standardized work, and SOPs for a lean system are presented with a discussion
on visual management and SPF concepts.
REFERENCES
EL-Khalil, R., Leffakis, Z.M., and Hong, P.C. (2020), ‘Impact of improvement tools
on standardization and stability goal practices an empirical examination of US
automotive firms’, Journal of Manufacturing Technology Management, 31:4,
705–723.
Gopalakrishnan, N. (2010), Simplified Lean Manufacture – Elements, Rules, Tools and
Implementation, PHI Learning Private Limited.
Hopp, W.J., and Spearman, M.L. (2004), ‘To pull or not to pull: what is the ques-
tion?’ Manufacturing & Service Operations Management, 6:2, 133–148, DOI:
10.1287/msom.1030.0028
Yik, L.K., and Chin, J.F. (2019), Application of 5S and Visual Management to Improve
Shipment Preparation of Finished Goods, IOP Conf. Series: Materials Science
and Engineering 530, 012039.
Basic Lean Tools
(5S and TPM) 4
A lean system includes four primary or basic tools (5S, Total Productive
Maintenance (TPM), Value Stream Mapping (VSM), and workcell). The basic
tools are shown in Figure 4.1. Any lean implementation begins with the imple-
mentation of basic tools. Among these primary tools, 5S is one of the basic
tools to be concentrated for first-level implementation, as 5S initiatives might be
prevailing in the organizations prior to lean implementation. Another viewpoint
from literature analysis is that VSM can be focused for initial implementation.
As a part of VSM implementation, all associated lean tools can be enabled for
implementation, thereby enhancing lean performance of the organization.
4.1 5S LEAN TOOL

The 5S lean tool is presented in this section. 5S stands for Seiri, Seiton, Seiso,
Seiketsu, and Shitsuke meaning sort, set in order, shine, standardize, and sus-
tain, respectively. It facilitates an organized workplace and is used to ensure an
efficient and effective work area.
4.1.1 Introduction to 5S
5S facilitates a meticulous approach for efficient results from the perspective of
workplace organization. It reduces wastage and contributes toward workplace
safety improvement. Also, it provides a disciplined approach for the organiza-
tion (Randhawa and Ahuja, 2017).

DOI: 10.1201/9781003190332-4 19
5S TPM
Basic
Tools
VSM Work Cell
FIGURE 4.1 Basic Lean Tools
Set in order – It enables orderly positioning of items for ease of convenient

usage and easy access to necessary materials at required places along with
ease of accessibility.

4.1.2 Description of the 5S Lean Tool

4.1.2.1 Seiri (Sort)

The first element tries to segregate items in use and not in use. It tries to cat-
egorize items adding value and not adding value from the customer’s perspec-
tive. In this step, items not in use are identified and positioned category wise,
4 • Basic Lean Tools (5S and TPM) 21
Seiketsu Shitsuke
Seiso
Seiton
Seiri
FIGURE 4.2 Scheme of 5S
then red tags are attached to those items, and the red-tagged items are posi-
tioned category wise, Cross-Functional Teams (CFTs) are formed for disposal,
and disposal actions are taken.
4.1.2.2 Seiton (Set in Order)

It promotes orderliness whereby there is a place for every entity and they have
to be in their designated place. Key equipment are identified, their locations are
indicated, and shadow boards are developed. A shadow board is depicted in
Figure 4.3. In this step, items are arranged in such a way that there is no waste.
Shadow boards are developed to facilitate the storage and retrieval of
tools.
4.1.2.3 Seiso (Shine)

Routine cleaning and inspection is done to analyze work conditions. Check
points for performance and visual controls are developed.
FIGURE 4.3 Shadow Board Sketch
The term clean implies items must be ready for immediate usage. It extends
to workplace machinery, tools, documents, moving and safety equipment.
4.1.2.4 Seiketsu (Standardize)

In this step, common methods are ensured for consistency. Standard proce-
dures are evolved. The 5S audit is done to monitor 5S performance. A radar
chart is used to record the results of the 5S performance.
4.1.2.5 Shistuke (Sustain)

It facilitates the development of commitment to make 5S a way of life. The
5S level of attainment is found, routine checks are analyzed, and Continuous
Improvement (CI) is planned. In this element, the workforce is trained on good
housekeeping discipline, and self-discipline and self-awareness and the proce-
dures are sustained. Communication boards are formed, before and after photos
are maintained, visual standards are developed, and a monthly review is done.
4.2 5S IMPLEMENTATION
The importance and significance of 5S has to be communicated among
all stakeholders by demonstrating management commitment. Workarea
deployment teams have to be formed and must continue focused efforts.

Implementation targets have to be set and accordingly the activity plan and
schedule derived. The present situation needs to be documented. 5S (Seiri,
Seiton, Seiso, Seiketsu and Shitsuke) has to be applied. Improvements have
to be documented and new goals have to be derived with action steps to be
implemented.
4.2.1 5S Implementation Plan

• Commitment from senior management is essential for 5S imple-
mentation. An open meeting should be conducted to demonstrate
the need for lean implementation. Employee involvement needs to
be ensured for lean implementation.
• A cross-functional team needs to be formed with members from
different divisions to implement 5S. The team needs to include lead-
ers and members involved in 5S implementation.
• Training needs to be provided for lean leaders, production supervi-
sors, shop workers, supply chain staff on 5S. The duration may vary
from one level of workforce to another.
• A pilot area should be selected for 5S implementation, which is
critical for 5S implementation in terms of disorganized workplace.
Also, the area where more transportation and motion wastes happen
should be selected.
• 5S (Sort, Set in Order, Shine, Standardize, and Sustain) needs to
be done. Vital activities include red tagging and recording disposal
actions, shop floor reorganization, tools positioning using shadow
boards, developing visual controls, cleaning standards develop-
ment, evolving Standard Operating Procedures (SOPs), sustenance
plans.
• 5S auditing is conducted to determine the 5S performance score.
A spider chart/radar chart is developed to analyze the results of 5S
auditing. Areas requiring improvement are identified based on a 5S
audit.
• Photograph recording and video recording (“As Is” and “To Be”
scenarios) are undertaken to capture present and future scenarios.
• Periodical review is conducted to check whether the projects are
progressing as per plan. Review results are monitored.
• Appropriate rewarding schemes need to be developed to recog-
nize the workforce efforts on 5S implementation schemes which
include incentives, newsletters, magazines, highlighting the suc-
cess stories.
4.2.2 5S Implementation for SME

In the context of Small and Medium Enterprise (SME), orientation sessions
need to be conducted to highlight the significance of 5S adoption and ben-
efits of implementing 5S. A team of employees has to be formed and trained
on 5S implementation. The pilot area has to be selected where productivity
issues happen. This is followed by implementation of Seiri, Seiton, Seiso,
Seiketsu, and Shitsuke. All activities pertaining to various 5S elements need
to be done.
• The procedural steps for 5S implementation for a large-scale orga-

nization have to be amended for a small-scale organization.
• Organization-wide implementation of 5S should be focused.
• As 5S can be focused on implementation for a SME, a dedicated
team needs not be formed. Available employees should be involved
in implementation.
• Training with external expertise should also be initiated.
4.3 TOTAL PRODUCTIVE MAINTENANCE –

OVERVIEW AND PILLARS
The origins of TPM are in Preventive Maintenance (PM). Also, initially Total
Quality Management (TQM) concepts were applied for maintenance prob-
lems. But they were not found to be fully compatible. Then the specialization
of TPM was brought into practice.
Concepts of TPM
This ensures long-term commitment by organizational employees and
there is a recognition of clear, specific, and quantifiable goals and targets.
Small improvements must be undertaken on a continuous basis. There should
be elimination of wastage and losses with increasing efficiency and productiv-
ity and safety improvement.
Prime goals of TPM

The prime goals of TPM are zero defects, zero accidents, and zero
breakdowns (Poduval et al., 2015). The key goal of TPM is to eliminate all
manufacturing-related losses to enhance production effectiveness.
4.3.1 TPM Pillars
2. Equipment and process improvement

This pillar aims at maximizing efficiency with the elimination
of wastes and manufacturing losses. Manufacturing losses are 13
losses (six equipment related, four manpower related, and three
material related). Overall Equipment Effectiveness (OEE) indicates
efficiency of the machinery/equipment during its planned loading
time. It is the product of availability, performance efficiency, and
quality yield.
OEE = A × PE × Q (4.1)
The calculated OEE should be 85% as per the world class

threshold.
Availability can be ensured by reducing downtime, planned
maintenance time, setup time. Performance efficiency can be
improved by ensuring actual production in line with planned pro-
duction. Quality can be improved by reducing defects through
in-process gauging-based inspection and conformance to quality
standards.
3. Planned maintenance
This pillar aims at preventive and predictive maintenance for equip-
ment to ensure natural life cycle of individual machine elements.
The natural life cycle of machine elements can be ensured by
appropriate procedures during the design phase.
can be correlated with a practical perspective wherein manufactur-

ers are very much concerned with the initial operating period of
machinery/equipment. This observation coincides with the reliabil-
ity curve wherein the initial stage (introduction failures) and the
last stage (worn-out failures) happen. The second stage is the useful
lifetime.
6. Office TPM
This pillar aims at ensuring implementation in administration and
support departments to ensure effective information flow.
As administrative departments have to be coordinated with the
production division, the information flow regarding maintenance
activities needs to be regulated across administrative and support
departments.
8. Safety and environmental management

This pillar ensures safety and avoids adverse environmental impacts
in TPM initiatives.
This pillar aims at safer operating conditions of machinery/
equipment. As material losses can be minimized using the second
pillar of TPM (equipment and process improvement), both these
pillars facilitate optimal resource utilization and environmental
impact minimization.
Figure 4.4 depicts the TPM pillars (eight pillars). They include
autonomous maintenance, equipment and process improvement,
planned maintenance, early management of new equipment, process
quality management, office TPM, education and training, and envi-
ronmental management. Although eight pillars need to be focused
on as a part of TPM implementation, The relative contribution of
the pillars varies from a large-scale organization to a medium- and
further small-scale organization.
3. Planned 2. Equipment
maintenance
3 2 and process
improvement
4. Early
management
TPM 1. Autonomous
of new
4 1 maintenance
equipment
8. Safety and
5. Process
environment 8 5 quality
management
management
PILLARS
7. Education
7 6
6. Office
and Training TPM
FIGURE 4.4 Eight Pillars of TPM
4.4 OEE ANALYSIS
4.4.1 OEE
The “availability” element is concerned with total stoppage time resulting
from various reasons. It is the ratio of actual operating to planned operating
time (Dal et al., 2000).
A vital factor is loading time. The loading time denotes the total shift time
after deduction for planned downtime. It includes non-availability of labor,
planned maintenance, equipment trials, machine cleaning operators’ training,
and so on.
The second element, i.e. the “performance rate”, is the ratio of actual
speed to ideal speed of equipment.
The third element, i.e. the “quality rate”, is used to indicate quality perfor-
mance with consideration of defects.
OEE is an indicator of the effectiveness of the machinery/equipment dur-
ing its planned loading time.
OEE calculation for milling machine
Shift time = 8 hours = 480 minutes
Maintenance time (planned) – 30 minutes
Downtime – 30 minutes
Setup time (average) – 20 minutes
Available time = 480 – 80 = 400 minutes
Planned production – 250 units
Actual production – 200 units
Performance efficiency = 200/250 = 80%
Quality – 99%
OEE = A × PE × Q = .833 × .80 × .99
OEE = 65.9%
4.4.2 Analysis
To increase availability, the planned maintenance time should be reduced; rea-
sons for downtime can be explored and minimized and the average setup time
can be reduced by adopting Quick Change Over (QCO).
The reasons for deviation in actual production can be identified and
reduced and hence performance efficiency can be ensured, thereby improv-
ing OEE.
4.5 TPM IMPLEMENTATION

Top management announce TPM implementation where they demonstrate
commitment and involvement of top management.
• Significance of TPM is demonstrated to all stakeholders with inten-

sive training
• TPM implementation teams are formed
• Targets for TPM implementation are set
• Activity plan and scheduling is undertaken
• OEE is calculated
• Critical projects are identified

• PM is undertaken
• Scheduled maintenance is undertaken
• Revised procedure is implemented
TPM aims at improving the firm’s productivity and ensuring quality prod-
ucts through waste minimization and cost reduction. TPM aims at optimizing
manufacturing equipment effectiveness.
4.5.1 TPM Implementation Plan

• Top management must demonstrate their commitment toward
TPM implementation. Involvement of employees must be ensured.
Management must present case studies of TPM implementa-
tion in other organizations and highlight the benefits of TPM
implementation.
• The goal statement must indicate the objective of TPM imple-
mentation and strategies are the ways to ensure TPM implemen-
tation. For example, the goal could be enhancement of OEE,
which is facilitated through strategies such as increase in avail-
ability, performance efficiency, and quality. Detailed plans are
evolved for TPM implementation, highlighting various activities
concerned.
• Workforce from different divisions must be formed as teams for
implementation. Shop workforce needs to be trained on mainte-
nance activities. Training should be done for operational and main-
tenance activities. A training plan should be evolved and subjected
to implementation.
• TPM activities need to be initiated.
• The pilot area should be selected based on critical maintenance
activities. The pilot area where OEE of machineries/equipment are
found to be less needs to be identified.
• Present maintenance activities need to be analyzed. The map of the
present scenario needs to be done and the revised procedure arrived
at. Maintenance activities (autonomous) activities need to be done.
• Along with PM, scheduled maintenance needs to be done.
• This is followed by standardization of processes/procedures for
maintenance activities and CI initiatives to be done.
• Best performing teams have to be rewarded for their maintenance
effectiveness contribution.
4.5.2 Role of Industry 4.0 Technologies

in TPM
• Internet of Things (IoT) helps in monitoring of OEE with capturing
of data parameters for Availability, Performance, and Quality. IoT
facilitates remote monitoring of machineries/equipment through the
cloud system. IoT helps shop managers to remotely manage shop
activities in terms of maintenance data updates through application
and the cloud system. In this context, the shop manager can attend
to maintenance issues in any of the machine tools across several
manufacturing shops.
• Industrial IoT ( IIoT) includes enhanced form of IoT with sensors
and actuators to enable diversified functions with regard to TPM.
• An augmented reality system includes digitalization of history data
of machinery/equipment. The digital history card includes complete
breakdown data and maintenance actions.
• Equipment and Process Improvement pillar enables the safety
and environmental management pillar wherein optimal resources
utilization and minimization of environmental impact are
facilitated.
4.6 SUMMARY
This chapter presents the introductory aspects and description of 5S lean tool.
The general 5S implementation plan and plan for SME are presented. The
fundamentals and eight pillars of TPM are presented. OEE computation and
analysis are discussed. The TPM implementation plan and the role of Industry
4.0 technologies enabling TPM have been discussed.
REFERENCES
Dal, B., Tugwell, P., and Greatbanks, R. (2000), ‘Overall equipment effectiveness
as a measure of operational improvement – a practical analysis’, International
Journal of Operations & Production Management, 20:12, 1488–1502.
Poduval, P.S., Pramod, V.R., and Jagathy Raj, V.P. (2015), ‘Interpretive Structural
Modeling (ISM) and its application in analyzing factors inhibiting implementa-
tion of Total Productive Maintenance (TPM)’, International Journal of Quality &
Reliability Management, 32:3, 308–331.
Randhawa, J.S., and Ahuja, I.S. (2017), ‘5S implementation methodologies: litera-
ture review and directions’, International Journal of Productivity and Quality
Management, 20:1, 48–74.
Basic Lean
Tools (VSM

and Workcell)
5
5.1 OVERVIEW ON PROCESS MAPPING
AND VALUE STREAM MAPPING (VSM)
A process map indicates the sequence of processes but does not indicate the
details of value addition. VSM shows the steps involved in product manufacture
from beginning to end where cost is incurred and value is added. It depicts all
the steps from the receipt of customer order till the product is delivered to the
customer, where the cost is incurred, and in turn where value is added. VSM
quantitatively analyses the process sequence using time and inventory data.
5.1.1 Process Mapping
• A process map indicates the sequence of process steps.
• It qualitatively analyzes the process steps which add value and those
that do not add value.
• It helps to understand the process boundaries.
• It enables recognizing the present status of process steps.
5.1.1.1 Types

DOI: 10.1201/9781003190332-5 33
Detailed Process Map

It indicates all process steps with inputs and outputs. All process steps should
be depicted.
Need for Process Maps

• Complete process sequence should be analyzed
• Problem diagnosis and training tool should be used
• Improvement areas should be identified
• Qualitative analysis of process maps to enable waste identification
should be undertaken
5.1.2 VSM
• VSM denotes logically the activities needed for transforming raw
material to product in line with customer requirements. It includes
those activities that add value by consuming resources.
• It provides an understanding of value flow.
• It is based on the Supplier Input Process Output Customer (SIPOC)
cycle.
• The SIPOC cycle is triggered by customer requirements.
• It includes the current state and the future state.
• It includes three parts (the SIPOC cycle, process attributes, and
timeline).
5.1.2.1 General VSM Scheme

VSM analyzes the process stream from the value perspective based on time
and inventory data.
It helps to understand those activities that add value to the customer and
those that do not add value.
5.1.2.2 Guidelines for Drawing VSM

• Selection of product family in such a way that tasks are manageable
• VSM should not be drawn for multiple product lines
• Both material and information flow should be mapped
• Data collection should be done in multiple shifts
• Data should be collected and plotted in the process attributes box
5 • Basic Lean Tools (VSM and Workcell) 35
Production
control
Supplier Customer
Production
Supervisor
Process
C/T
C/O
AT
UT
/t
C/T
FIGURE 5.1 Format of VSM
5.1.3 VSM Format
The format of VSM is shown in Figure 5.1. As shown, VSM consists of
three parts: the SIPOC cycle, process attributes, and timeline. The SIPOC
cycle includes activities from receipt of customer order, request initiation to
supplier, supplier supplying material which forms the input, and the output
delivered to customer. The process attributes box includes the first row with
the process name, the second row with operators, the third row with cycle
time, the fourth row with changeover time, the fifth row with available time,
and the sixth row with uptime. Inventory ( WIP) is represented between pro-
cesses. The Raw Material Inventory (RMI) is represented between supplier
and process 1. The Finished Goods Inventory ( FGI) is represented between
the last process and the customer. Timeline is plotted below the process attri-
butes box. The bottom segment of the timeline represents cycle time and the
top segment indicates inventory being converted to timescale. The signifi-
cance of the timeline is that it facilitates the calculation of lead time. The
format of VSM can be understood and followed while drawing value stream
maps.
5.2 VSM TERMINOLOGIES AND

DATA TYPES (OBSERVATION/
MEASUREMENT, COMPUTATION DATA)
5.2.1 Data in VSM

5.2.1.1 Observation Based
• Shift time: Time available per shift (8 hours or 8.5 hours)
• Processes
• Number of operators
• Inventory (units)

5.2.1.2 Measurement Based
• Cycle time: Elapsed time between one part coming off the process
and the next part entering the process
• Changeover time: Time for changing over from one product variant
to another
5.2.1.3 Computation Based
• Available time: It is the difference between shift time and allowances
• Uptime: The proportion of time the machine is running
• Inventory (time scale) = inventory (units) to daily production
Significance of inventory conversion to timescale
To understand the magnitude of inventory and facilitate the calcula-
tion of lead time
• Lead time = cycle time of all processes + inventory (timescale)
• Takt time = It is the ratio of available time to customer demand
It is the time needed to complete an activity in line with customer
demand.
Takt time calculation
Shift time = 8.5 hours = 510 minutes

Available time = 510 − 60 minutes = 450 minutes (after subtracting breaks)
Customer demand = 150 parts/day
Takt time = 450/150 = 3 minutes
Cycle time of all processes must be well within the takt time.
5.3 CONSTRUCTION STEPS OF

VALUE STREAM MAPS
5.3.1 Analysis of Current State VSM

• The first step is to analyze which activities add value and which do
not. Then customer requirements need to be understood in terms of
quantity and schedule. The customer wants an exact supply of prod-
ucts. Then supplier capabilities and constraints need to be considered
and accordingly the economic quantity to be supplied is calculated.
• The present inventory/ WIP needs to be measured and converted to
timescale.
• Then takt time needs to be calculated and the cycle time compared
with the takt time. Those processes whose cycle time are more than
the takt time are considered to be bottlenecks. Appropriate actions
need to be taken to bring cycle time in line with the takt time.
• Then continuous flow should be ensured and, to the extent possible,
it should be made single-piece flow.
• Line balancing should be done to ensure that cycle times of all pro-
cesses are closer to each other, thereby avoiding waiting.
5.3.2 Construction of VSM

Customer demand needs to be captured. A complete walk-through of Gemba
(shopfloor) should be done to recognize principal processes. Basic production pro-
cesses need to be captured and mapped. Appropriate data to be gathered should
be defined. This is followed by collection and mapping the data. Supplier-related
details should be documented in terms of quantity to be supplied. Then informa-
tion flow should be mapped. As lean tools focus on transformation from a push to
a pull system, points should be located where the material is being pushed.
5.4 VSM ILLUSTRATION

AND CASE STUDY
The Current State Map (CSM) is shown in Figure 5.2. As shown, the prod-
uct line includes six processes. The customer places an order and in turn the
supplier supplies the raw material and production happens in a particular

sequence. The inventory between processes with RMI and FGI is indicated.
The number of operators, cycle time, changeover time are indicated with AT
and UT. The timeline is represented below the processes attributes box. Cycle
time data are indicated in the below segment and the inventory being con-
verted to timescale is indicated in the top segment of the timeline.
5.4.1 VSM Case
This section presents the case of VSM.
The CSM provides an idea of the present scenario of manufacturing pro-
cesses and is shown in Figure 5.2. Data parameters are represented in CSM.
The CSM includes three parts: the SIPOC cycle, the process attributes box,
and the timeline. As shown, CSM includes five processes ( P1–P5). For every
process, cycle time, changeover times are measured; AT and UT are com-
puted; inventory (RMI, Work in Process (WIP), and FGI) are observed and
indicated. The bottom segment of the timeline indicates the cycle time and the
top segment includes the inventory converted to timescale. Next, the lead time
has to be found.
The future state map is the improved scenario of manufacturing processes.
It is shown in Figure 5.3 and includes the following improvements:
FIGURE 5.2 Current State Map

FIGURE 5.3 Future State of VSM
• SMED is implemented in the first process to reduce changeover

time
• 5S is implemented in the third and fifth processes. The third ele-
ment of 5S is focused where workplace cleanliness has been focused
• TPM implementation is focused wherein breakdown data has been
studied and OEE (Overall Equipment Effectiveness) improvement
has been focused
• Because of the implementation of improvement actions, inventory
and lead time get reduced.
5.5 VARIANTS OF VSM

(ADVANCED MODELS OF VSM)
Variants of VSM, which are advanced models of VSM, are discussed as
follows:
Procurement VSM (P-VSM)

It is a variant of VSM applied for purchasing activities (Jing et al., 2020). The
tool had been proposed from the viewpoint of procurement tasks generating
value and then applying for enhancement of procurement process of manufac-

turing firms.
P-VSM indicates Value Added (VA) and Non Value Added (NVA) activi-
ties during the procurement cycle. It helps in recognizing NVA parts, wastes,
and delays in procurement tasks. Ultimately, this variant of VSM enhances
procurement process efficiency.
Ergo VSM
It is a variant of VSM contributed by Rother and Shook (Arce et al., 2018). This
variant of VSM enhances ergonomic aspects without any impact on production
performance. It is used to assess physical and organizational ergonomic risk
factors along with lean parameters in the assembly process.
Sustainable VSM
It is a variant of VSM that visualizes and evaluates sustainable performance
(Brown et al., 2014). It amalgamates VSM with metrics to assess environmen-
tal impacts and societal wellbeing (Brown et al., 2014). The traditional VSM
approach does not consider environmental and societal performance as it inves-
tigates economics of product line with reference to time and inventory data.
It has to be incorporated with environmental and societal performance to
evaluate manufacturing operations from the sustainability viewpoint.
Sustainable VSM includes sustainability metrics to view sustainable
performance.
Environmental metrics include process water, raw material usage, and
energy consumption.
5.5.1 eVSM
5.5.1.1 Scope of eVSM Software
The eVSM software module enables digital VSM and drawing and analyzing
value stream maps.
5.5.1.2 Steps in eVSM Software

It helps to map and improve mixed model value stream maps. It uses electronic
templates for capturing the existing state of manufacturing processes. Then
value stream maps are analyzed to compute lean metrics. “What-Ifs” can be
done thereafter to explore improvement ideas. This is followed by prioritiza-
tion of improvements based on an impact matrix. Then the desired state of
processes is designed and the implementation plan is designed. A sample value
stream map drawn in eVSM is shown in Figure 5.4.
Value Stream Map (eVSM)

F IGURE 5.4
5.6 WORKCELL
It is a productive grouping of machinery/equipment, tooling, trained personnel
involved in producing similar products. The core objectives of the workcell
are to ensure minimum people movement, minimal material movement, setup
time reduction, effective space utilization.
The steps of a workcell can be referred to in the literature (Gopalakrishnan,
2010).
Part family denotes the group of parts having similar design attributes/
manufacturing attributes.
The broad steps are:
Part family selection, process finalization, selection of machinery,

tools, jigs/fixtures, layout design, line balancing, manpower selection,
quality standards formulation, automated testing.
Problems in modifying existing product/process layout to cellular

layout are:
• Operators’ reluctance to work on multiple machines
• Fear of losing jobs and employee resistance
• Capital investment in machinery and tooling
• Training of employees
5.6.1 Implementation Steps of a Workcell

• Methods for grouping of parts into the part family include visual
inspection and Production Flow Analysis (PFA). Visual inspec-
tion is recommended for less complex parts. PFA is suggested for
relatively complex parts where grouping is based on dedicated
algorithms
• Process finalization is based on deciding the manufacturing process
with appropriate process parameters
• Machinery has to be selected with consideration of process capabil-
ity, maintenance aspects, special conditions. Then production tool-
ing has to be selected with the consideration of universal tooling and
tooling with QCO
• The facility layout has to be designed with minimal wastes based on
line balancing concepts. This helps minimize cycle time variations
• Manpower has to be selected with skill considerations pertaining

to the activities. Manpower selection should be done based on cus-
tomer demand. Man machine chart should be prepared
• Workforce must have the willingness to work on multiple machines.
Man machine charts need to be developed to facilitate the optimal
allocation of workforce
• Then production control system has to be designed considering the
above-mentioned aspects. The system may be designed in line with
external or internal customer demand
• Production control system design (Gopalakrishnan, 2010):
For directly supplying parts to the customer based on customer
demand (external request)
For supplying parts to inhouse assembly (internal request)
For supplying parts as spares (internal or external customer
request)
• Testing to ensure trial run to observe any kind of problems and to
proceed with actual implementation. Then a trial run has to be done
to check the practical feasibility of the designed cell, which is when
Cross-Functional Teams (CFTs) must be resolved
• Standardization of parameters and measures to ensure constant
productivity
5.7 CASE ON LEAN TOOLS SELECTION

This study presents the selection of four primary or basic tools of lean man-
ufacturing (5S, TPM, VSM, workcell). The selection of appropriate lean
tools can be done based on lean parameters such as inventory, cycle time.
Factors critical to lean parameters such as inventory, cycle time, takt time
should be considered. The tool which is critical to lean parameters need
to be focused. Based on these perspectives, the right lean tool needs to be
selected.
Alternatively, lean tools selection can be formulated as a decision-making
problem with multiple lean criteria. This study focuses on the selection of
lean tools as an Multi-Criteria Decision Making (MCDM) problem. Four
lean tools are considered as alternatives: 5S, TPM, VSM, workcell. The gov-
erning criteria include streamlined processes, customer satisfaction, value
addition, financial benefits, flexible workforce, QCO, project duration, takt
time compliance, inventory reduction.
Fuzzy Technique for Order Preference by Similarity to Ideal Solution

(TOPSIS) is used as a solution methodology. The procedural steps of fuzzy
TOPSIS are as follows (Wang and Lee, 2009):
Step#1: Establishing a fuzzy decision matrix with the help of experts’

inputs for alternative ratings and criteria weights. Suppose “m”
alternatives [a1 a2 a3 … am] (m
= 1, 2 … q) are computed against “n”
criteria [C1 C2 C3 … Cn] (n = 1, 2 … r). The alternative ratings and
criteria weights of each expert EPk where k = 1, 2, 3 … k is repre-
sented by W = Wijk (m = 1, 2 … q, j = 1, 2…. r, k = 1, 2 … k).
Step#2: Computation of average fuzzy ratings for alternatives. For
instance, the input data gathered from “k” experts are in Triangular
Fuzzy Numbers (TFNs) = (u k, vk, wk) where k = 1 to k, the average
fuzzy rating is given by r = (u, v, w) where
k 1 k k
(5.
1)
u = min(u), v = ∑ vk , w = max(w)
k k k=1 k
Step#3: The fuzzy decision matrix is transformed into a fuzzy normal-

ized matrix “N” using equations 5.2 and 5.3:
u v w 
n mn =  mn+ , mn+ , mn
+
 (5.2)

 wn wn wn 
where w+j = Max( wmn ) – for beneficial criteria
 u− u− u− 
and n mn =  j , j , j 
(5.3)
 wmn vmn umn 
where w −j = Min( wmn ) – for non-beneficial criteria
Step#4: Constructing a weighted normalized matrix (W)

Step#5: Calculating the Fuzzy Positive Ideal Solution (FPIS) and the
Negative Ideal Solution (FNIS) by considering maximum and mini-
mum values of each column of matrix W for benefit criteria and just
opposite for cost criteria.
Step#6: Calculating the Euclidean distance for each alternative from
FPIS i.e. d m+ and FNIS i.e., d m− .
Step#7: Computation of Closeness coefficient “CCm ” using equation 5.4.
d m−
CCi = (5.4)

(d + dm− )
+
m
where 0 < CCm < 1

Step#8: Prioritizing the alternatives using the closeness coefficient.
The alternative possessing closeness coefficient CCi nearer to 1 is
observed to be the best alternative.
Expert inputs have been obtained using scales for weights and ratings as shown
in Table 5.1 (Wang and Lee, 2009).
Inputs have been obtained from three experts of an automotive compo-
nent manufacturing organization. Based on expert opinion, computations have
been done and the ranking of lean tools is obtained. Table 5.2 presents expert
inputs for lean tools with respect to some criteria and Table 5.3 presents an
excerpt of fuzzy inputs. Then the fuzzy inputs are aggregated and normalized.
Table 5.4 presents weighted normalized inputs. Table 5.5 depicts ranking of
lean tools with respect to closeness coefficient.
The ranking of lean tools is VSM > 5S > TPM > workcell. Based on the
ranking, tools are subjected to implementation. VSM has been planned for
first-level implementation.
5.8 SUMMARY
This chapter presents the details of a process map. The significance of VSM,
data parameters, format have been discussed with a case study. Variants of
VSM and the scope of eVSM software have been presented and workcell and
the implementation plan have been discussed. A case study on tools selection
has been presented.
TABLE 5.1 Linguistic Terms for Importance Weights and Performance Ratings
IMPORTANCE WEIGHTS PERFORMANCE RATINGS
FUZZY
LINGUISTIC TERMS FUZZY NUMBER LINGUISTIC TERMS NUMBER
Very low (VL) (0, 0, 0.1) Very poor (VP) (0, 0, 1)
Low (L)
(0, 0.1, 0.3) Poor (P) (0, 1, 3)
Medium low (ML) (0.1, 0.3, 0.5) Medium poor (MP) (1, 3, 5)
Medium (M) (0.3, 0.5, 0.7) Fair (F)
(3, 5, 7)
Medium high (MH) (0.5, 0.7, 0.9) Medium good (MG) (5, 7, 9)
High (H) (0.7, 0.9, 1) Good (G) (7, 9, 10)
Very high (VH) (0.9, 1, 1) Very good (VG) (9, 10, 10)
46
TABLE 5.2 Expert Inputs for Lean Tools with Respect to Criterion
Lean Manufacturing
SYNCHRONIZED CUSTOMER VALUE FINANCIAL FLEXIBLE QUICK PROJECT TAKT TIME INVENTORY
PROCESSES SATISFACTION ADDITION BENEFITS WORKFORCE CHANGEOVER DURATION COMPLIANCE REDUCTION
EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3
Weight H VH H VH H H H MH H H VH H H H VH VH H H H H VH H H VH H H VH
5S MG G MG G G MG F MG MG G MG G MG G G MG F MG MG F MG G MG MG G MG G
TPM MG G MG MG F MG MG F MG G MG MG G MG G MG MG F G MG MG MG G MG G MG G
VSM VG G G G G VG VG G VG MG G G G MG G G VG G VG G G VG G VG VG G VG
Work F MG MG G MG F MG F MG MG G MG F MG MG G MG MG MG G MG MG G MG MG G MG
cell
TABLE 5.3 Excerpt of Fuzzy Inputs
SYNCHRONIZED PROCESSES CUSTOMER SATISFACTION VALUE ADDITION
EX.1 EX.2 EX.3 EX.1 EX.2 EX.3 EX.1 EX.2 EX.3
Weight (0.7, 0.9, 1) (0.9, 1, 1) (0.7, 0.9, 1) (0.9, 1, 1) (0.7, 0.9, 1) (0.7, 0.9, 1) (0.7, 0.9, 1) (0.5, 0.7, 0.9) (0.7, 0.9, 1)
5S (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10) (7, 9, 10) (5, 7, 9) (3, 5, 7) (5, 7, 9) (5, 7, 9)
TPM (5, 7, 9) (7, 9, 10) (5, 7, 9) (5, 7, 9) (3, 5, 7) (5, 7, 9) (5, 7, 9) (3, 5, 7) (5, 7, 9)
VSM (9, 10, 10) (7, 9, 10) (7, 9, 10) (7, 9, 10) (7, 9, 10) (9, 10, 10) (9, 10, 10) (7, 9, 10) (9, 10, 10)
Work (3, 5, 7) (5, 7, 9) (5, 7, 9) (7, 9, 10) (5, 7, 9) (3, 5, 7) (5, 7, 9) (3, 5, 7) (5, 7, 9)
cell
5 • Basic Lean Tools (VSM and Workcell)
47
TABLE 5.4 Weighted Normalized Inputs
SYNCHRONIZED CUSTOMER VALUE FINANCIAL FLEXIBLE QUICK PROJECT TAKT TIME INVENTORY
PROCESSES SATISFACTION ADDITION BENEFITS WORKFORCE CHANGEOVER DURATION COMPLIANCE REDUCTION
5S (0.35, 0.716, 1) (0.35, 0.778, 1) (0.15, (0.35, (0.35, 0.778, 1) (0.21, 0.591, (0.233, (0.35, (0.35, 0.56, 1)
0.5278, 0.778, 0.9) 0.442, 1) 0.609, 1)
0.9) 0.9)
TPM (0.35, 0.716, 1) (0.21, 0.591, (0.15, (0.35, (0.35, 0.778, 1) (0.21, 0.591, (0.21, (0.35, (0.35, 0.56, 1)
0.9) 0.528, 0.9) 0.716, 0.9) 0.365, 0.609, 1)
0.9) 0.6)
VSM (0.49, 0.871, 1) (0.49, 0.871, 1) (0.35, (0.35, (0.35, 0.778, 1) (0.49, (0.21, 0.3, (0.35, 0.483, (0.35, 0.483,
0.806, 1) 0.778, 1) 0.871, 1) 0.429) 0.714) 0.714)
Work (0.21, 0.591, (0.21, 0.653, 1) (0.15, (0.35, (0.21, 0.591, (0.35, (0.21, (0.35, (0.35,
cell 0.9) 0.528, 0.9) 0.717, 0.9) 0.717, 1) 0.365, 0.609, 1) 0.609, 1)
0.9) 0.6)
FPIS (0.49, 0.871, 1) (0.49, 0.871, 1) (0.35, (0.35, (0.35, 0.778, 1) (0.49, (0.233, (0.35, (0.35,
0.806, 1) 0.778, 1) 0.871, 1) 0.442, 1) 0.608, 1) 0.609, 1)
FNIS (0.21, 0.591, (0.21, 0.591, (0.15, (0.35, (0.21, 0.591, (0.21, 0.591, (0.21, 0.3, (0.35, 0.483, (0.35, 0.483,
0.9) 0.9) 0.528, 0.9) 0.7166, 0.9) 0.9) 0.429) 0.714) 0.714)
0.9)
TABLE 5.5 Ranking of Lean Tools

LEAN TOOL D+ D− CC RANK
5S 0.745498 1.143027 0.605249 II
TPM 1.129968 0.726202 0.391237 III
VSM 0.700772 1.127835 0.616773 I
Work cell 1.217421 0.657028 0.350518 IV
REFERENCES
Arce, A., Romero-Dessens, L.-F., and Leon-Duarte, J.A. (2018), ‘Ergonomic
value stream mapping: a novel approach to reduce subjective mental work-
load’, in R.H.M. Goossens (ed.), Advances in Social & Occupational
Ergonomics, Advances in Intelligent Systems and Computing, 307–317, DOI:
10.1007/978-3-319-60828-0_31
Brown, A., Amundson, J., and Badurdeen, F. (2014), ‘Sustainable value stream map-
ping (Sus-VSM) in different manufacturing system configurations: application
case studies’, Journal of Cleaner Production, 85, 164–179.
Jing, S., Hou, K., Yan, J., Ho, Z.-P., and Han, L. (2020), ‘Investigating the effect of
value stream mapping on procurement effectiveness: a case study’, Journal of
Intelligent Manufacturing, 32, 935–946.
Wang, T.C., and Lee, H.D. (2009), ‘Developing a fuzzy TOPSIS approach based on
subjective weights and objective weights’, Expert Systems with Applications, 36,
8980–8985.
Supporting
Lean Tools
and Concepts
6
6.1 SCOPE OF SUPPORTING TOOLS
Lean implementation starts with primary tools. Secondary tools augment pri-
mary tools in the implementation. Secondary tools enable recognizing areas
of further studies, recognize causes for the problem, enable communication,
and so on.
In many real-life industrial applications, primary tools have to be sup-
ported with secondary tools for implementation. For example, Value Stream
Mapping ( VSM) implementation necessitates the implementation of sec-
ondary tools such as Poka yoke, SMED, Just In Time (JIT), Kanban, and
so on.
6.2 DESCRIPTION OF CORE

SUPPORTING TOOLS (POKA YOKE,
KANBAN, AUTONOMATION, VISUAL
COMMUNICATION, AND SMED)
This section presents the details of supporting or secondary tools of lean
manufacturing.
DOI: 10.1201/9781003190332-6 51
6.2.1 Poka Yoke
It is a prevention approach that enables operators not to make any mistakes
during operation.
Following criteria should be fulfilled:
• Identification of out-of-control process

• Admitting that humans commit mistakes
• Realizing that solutions are inexpensive and are based on common
sense
Examples include sensors, fouling pins, contoured locators,
self-aligning parts
It is the approach of manufacturing products with close to zero defects. It

is in line with the principle that defects are eliminated by performance regula-
tion in a way that the product does not have defects. It employs sensors that are
fitted in processing equipment to monitor and track errors.
The system detects errors before manufacturing technology produces
defective products (Mohan Prasad et al., 2020). It facilitates detection and
avoidance of abnormal conditions in the manufacturing process to prevent
defective products. Solutions as a part of Poka yoke must be logical and
cost-effective. It is a significant secondary lean tool which has several applica-
tions in industrial studies. Historically, this lean secondary tool is adopted in
jigs & fixture mistake proofing.
6.2.2 Kanban
• It is a Japanese term that implies an instruction card
• It is a manual pull device that facilitates efficient parts transfer
• It is used in a pull manufacturing system
Governing rules
• No production/withdrawal without a Kanban
• No change in quantity in production and withdrawal
• Part production based on priority order of Kanban
• Kanban does not permit defective parts
6.2.2.1 Functions
The Kanban card facilitates inventory function in terms of streamlining the
inventory between processes. Production functions indicate the production
6 • Supporting Lean Tools and Concepts 53
quantity to be produced. Visibility functions enable visual communication

in terms of indication and displays with signal mechanism. Kanban is a sig-
nal mechanism and provides signals to regulate inventory, production, and
visual information and communication. The objective is to pull the parts when
needed to monitor and regulate in-process inventories. It is a Japanese term
meaning card. The number of Kanbans indicates the maximum inventory of a
product and must be as small as possible (Matzka et al., 2012).
These systems were originally developed in Japan to deal with multi-stage
manufacturing systems. They operate on pull principles. Customer demand is
communicated upward stage by stage (Simic et al., 2019). Based on functions,
they are categorized as withdrawal (transportation) Kanban and production
Kanban.
Finding the number of kanbans is a critical aspect in a JIT or a lean system
to minimize in-process inventory and to deal with product shortage.
6.2.3 Autonomation
• It is an automatic mechanism working based on signals to indicate
the status of any machine or any other entity for measurement. It is
a fully automatic mechanism with light and/or sound signals. It is
very significant in the context of an Industry 4.0 system which is
governed by signal mechanism.
• The green signal denotes routine state, the red signal indicates
problem with machine tools, and the yellow signal indicates qual-
ity problem. In the context of Industry 4.0, sensor data based on
Internet of Things (IoT) should be linked as a part of autonomation.
6.2.4 Visual Communication
It is a powerful technique in the context of a lean system. In the industry shop,
visual boards are installed that depict key data in terms of shift target, quantity
produced, and so on. Visual information enables the team to recognize the
project plan, attainment, and goals. The mechanism can be supported on a
computer, electronic board, or other visual media.
6.2.4.1 Visual Management
It is a holistic approach enabling visual information to facilitate the team and
individuals to gain better insights on their role and contribution. It facilitates
identification of bottlenecks and enhances operational transparency.
General criteria to be considered are empowerment of team, simple sys-

tem, visual depiction of process with monitoring parameters. Functions are
transparency, discipline, Continuous Improvement (CI), shared ownership,
simplification, and unification (Filho Felipe et al., 2018).
6.2.5 SMED
• It is an approach that aims at simplifying machine setups
• This approach facilitates reduction of cycle time and lead time. It
can be enabled by usage of relevant jigs, fixtures, dies, molds to
avoid changeovers
• Exchange of dies needs to be enabled to support product variants.
Exchange time between setups must be lesser to contribute to lead
time reduction
SMED
• It is an effective tool to minimize changeover times or setup time

by transforming the steps done during machine stoppage (internal
tasks) into steps with machine operating conditions (external tasks)
• The approach aims at analyzing and reducing setup times with the
goal of setup time reduction from hours to minutes. It reduces setup
times with increase in manufacturing costs
• It leads to enhanced productivity. It improves flow and enhances
efficiency (Haddad et al., 2021)
It is used to transform internal to external operations. SMED aims at reduction

of duration of external operations (Amrani and Ducq, 2020)
SMED facilitates Quick Change Over (QCO). It facilitates quick change
of setups. As lean system facilitates process flexibility, exchange between set-
ups is enabled using SMED. A lean system can facilitate manufacture of few
product variants which can be done through faster exchange of setups.
6.3 OPTIMIZED PRODUCTION

TECHNOLOGY, LEVELED PRODUCTION,
AND ENTERPRISE RESOURCE PLANNING
The details are presented in the following subsections.
6.3.1 Optimized Production Technology

It is a proprietary scheduling system based on computer software to take
care of shopfloor scheduling as the critical problem faced by manufacturing
firms. The objective of Optimized Production Technology (OPT) is to sched-
ule bottleneck capacity in an effective way. It includes preparation, plant, and
bottleneck analysis. OPT deals with key problems of handling bottlenecks and
enhances profitability by concurrent throughput improvement.
6.3.2 Heijunka (Leveled
Production)
The details of Heijunka are presented as follows (Koide and Iwata, 2007):
• In this system, multiple products in a process are produced at the

same time; thus production and item type are averaged as the suc-
cessive process pulls from prior process
• For averaging quantities and item types produced, time period for
averaging is found first
• Scheduling may be on a weekly, daily, or per unit basis
• The period of scheduling may be found based on needs of the suc-
cessive process and other factors
• Unwanted inventory is not accumulated and the workforce needed
for preceding operations is reduced
6.3.2.1 Production Leveling
Heijunka is the Japanese term for leveling of production. Heijunka eliminates
muda, mura, and muri. Production leveling involves adapting manufacturing to
variable demand conditions. Conventional manufacturing is unleveled whereas
leveled production is incorporated with changeovers. Leveled production forms
the basis for pull systems, minimized inventory, capital, and labor. Even in the con-
text of a pull system, workstations may not be synchronized. One workcenter may
go faster than the other, which creates inventory between workstations, in turn
affecting lead time. Production leveling contributes to synchronized workcenters.
6.3.3 Enterprise Resource Planning

It is an approach for effective planning and the control of resources. It amal-
gamates all divisions and application modules into a single computer system
to serve each department requirements from a central repository. Enterprise

Resource Planning (ERP) is based on push principles wherein it relies on fore-
casts and historical data. Lean is based on a pull system where products are
produced in line with customer demand.
6.3.3.1 ERP and Lean Integration

ERP systems have a goal used in coordination with lean concepts
Lean is based on a pull system and products are produced based on cus-
tomer demand
ERP is based on a push concept, where products are produced based on
forecasted demand (Halgeri et al., 2008)
Increasing competition has contributed to the integration of ERP and lean
applications. ERP systems are based on IT with the focus on amalgamating
different business functions. Lean manufacturing enables value-added activi-
ties by elimination of wastes and NVA (Non-Value-Added) activities (Iris and
Cebeci, 2014).
ERP deployment can act as a catalyst for deployment of lean practices.
VSM and standardized work enable the process development for ERP deploy-
ment (Powell et al., 2013).
6.4 SUMMARY
This chapter presents the scope of secondary tools. A description of the core
supporting tools Poka yoke, Kanban, autonomation, visual communication, and
SMED have been provided. Details of concepts OPT, Heijunka, and ERP have
been presented. Insights for ERP and lean integration have also been discussed.
REFERENCES
Amrani, A., and Ducq, Y. (2020), ‘Lean practices implementation in aerospace based
on sector characteristics: methodology and case study’, Production Planning &
Control, 31:16, 1313–1335, DOI: 10.1080/09537287.2019.1706197
Filho Felipe, A.B.S., Pontes Heráclito, L.J., Albertin, M.R., de Lima Raphael, L.M., &
Moraes Thais, d.C. (2018). ‘Application of visual management panel on an air-
plane assembly station’, International Journal of Productivity and Performance
Management, 67:6, 1045–1062, Doi: http://dx.doi.org/10.1108/IJPPM-09-2016-0189
Haddad, T., Shaheen, B.W., and Németh, I. (2021), ‘Improving overall equipment
effectiveness (OEE) of extrusion machine using lean manufacturing approach’,
Manufacturing Technology, 21:1, 56–64.
Halgeri, P., Pei, Z.J., Iyer, K.S., Bishop, K., and Shehadeh, A. (2008), ‘ERP Systems
Supporting Lean Manufacturing: A Literature Review’, Proceedings of the 2008
International Manufacturing Science and Engineering Conference MSEC2008
October 7–10, 2008, Evanston, IL.
Iris, C., and Cebeci, U. (2014), ‘Analyzing relationship between ERP utilization and
lean manufacturing maturity of Turkish SMEs’, Journal of Enterprise Information
Management, 27:3, 261–277.
Koide, K., and Iwata, T. (2007), ‘Kaizen through Heijunka Production (Leveled
Production),’ SAE Technical Paper 2007-01-3886, DOI: 10.4271/2007-01-3886.
Matzka, J., Mascolo, M.D., and Furmans, K. (2012), ‘Buffer sizing of a Heijunka
Kanban system’, Journal of Intelligent Manufacturing, 23, 49–60.
Mohan Prasad, M., Dhiyaneswari, J.M., Jamaan, J.R., Mythreyan, S., and Sutharsan,
S.M. (2020), ‘A framework for lean manufacturing implementation in Indian tex-
tile Industry’, Materials Today: Proceedings, 33:7, 2986–2995.
Powell, D., Alfnes, E., Strandhagen, J.O., and Dreyer, H.C. (2013), ‘The concurrent
application of lean production and ERP: towards an ERP-based lean implementa-
tion process’, Computers in Industry, 64:3, 324–335.
Siaudzionis Filho Felipe, A.B., Pontes Heráclito, L.J., Albertin, M.R., de Lima Raphael,
L.M., and Moraes Thais, d.C. (2018), ‘Application of visual management panel
on an airplane assembly station’, International Journal of Productivity and
Performance Management, 67:6, 1045–1062, DOI: 10.1108/IJPPM-09-2016-0189
Simic, D., Svircˇevic, V., Corchado, E., Calvo-Rolle, J.L., Simic, S.D., and Simic, S.
(2019), ‘Modelling material flow using the Milk run and Kanban systems in the
automotive industry’, Expert Systems, DOI: 10.1111/exsy.12546
Project Selection
and Training
for Lean
7
Implementation
7.1 IMPORTANCE OF PROJECT SELECTION

Project selection is a vital step as the majority of projects (about 40%) fail due
to improper project selection. Even the importance of project selection is not
considered by certain organizations (Singh et al., 2021).
7.2 PROJECT SELECTION FOR

LEAN IMPLEMENTATION
As lean implementation is project driven, it is vital to evaluate and select proj-
ects compatible for Continuous Improvement (CI). Lean projects vary in terms
of goals and complexity but have related risks (Singh et al., 2021).
As many lean projects have certain benefits, key projects that provide max-
imum financial benefits to the organization have to be selected. Most projects
involve multiple criteria and project selection problem is Multi-criteria decision
making (MCDM) in nature. The selection of projects depends on multiple criteria
inclusive of quantitative and qualitative criteria (Singh et al., 2021).
DOI: 10.1201/9781003190332-7 59
TABLE 7.1 Project Selection Criteria

CRITERION NUMBER CRITERION
C1 Pull production & streamlined process
C2 Project duration
C3 Technical feasibility
C4 Customer satisfaction
C5 New business avenues
C6 Return on investment
C7 Top management commitment
C8 Employee involvement
C9 Continuous training and education
C10 Process improvement
C11 Multi-skilled and flexible workforce
C12 Activity categorization
C13 Waste analysis
C14 Flexible setups
Selection of the appropriate projects is a key task as a part of CI activities.

If the right project is not selected during the early phases, benefits cannot be
attained and resource wastage might happen.
Some of the guidelines for effective lean project selection are linkage of
projects to organization goals, contribution of the project in terms of financial
benefits, duration of the projects, governing criteria, project deliverables.
Project selection should be done considering multiple criteria with defined
goals. Based on the literature, brainstorming and a voting method are recom-
mended with other MCDM methods (Trakulsunti et al., 2020).
Project selection and prioritization is an essential step in lean deploy-
ment. The success of initial projects forms the motivation for lean imple-
mentation. Wrong project selection could lead to loss of interest among
employees and management. It had been suggested to follow appropriate
procedure for selection and prioritization of projects based on selection
criteria (Antony et al., 2018). Table 7.1 presents concept selection criteria.
7.2.1 Case on Lean Project Selection

Criteria were identified from a literature study and presented to the aca-
demia and industrial experts. Based on their opinion, 14 criteria were selected
7 • Project Selection and Training for Lean Implementation 61
for the lean concept selection process. The Fuzzy Technique for Order
Preference by Similarity to Ideal Solution (TOPSIS) (F-TOPSIS) method
was employed to choose the best lean concept. The methodological steps of
F-TOPSIS can be referred to from Section 5.7. Three lean concepts, namely,
A1, A2 and A3, are analyzed with respect to 14 lean concept selection criteria.
Table 7.2 presents the linguistic variables for ratings and weights ( Wang and
Lee, 2009). Table 7.3 presents expert inputs for the relationship of various cri-
teria with respect to alternative 1. Table 7.4 presents the importance of criteria
with respect to three decision makers. Table 7.5 presents a fuzzy relationship
matrix.
The case study presents project selection for lean implementation with 3
alternative projects and 14 criteria. Three alternative projects are product lines
involved in lean implementation. The best project to be selected is based on
governing criteria. As the organization is in the process of lean implementa-
tion, projects need to be prioritized. Criteria are selected based on literature
review and expert opinion.
Expert opinion has been obtained and the F-TOPSIS approach has been
used for prioritizing projects. The computational steps of F-TOPSIS are dis-
cussed using a case study.
The study was carried out in an automotive component manufacturing
organization. In this study, 14 criteria were taken into consideration for choos-
ing the appropriate lean concept. Those 14 criteria were further evaluated to
assess how the criteria influence one other. This criteria list was discussed with
academia and industrial experts. From this survey, values were calculated and
the criteria influence over one other was depicted. Initially the relationship
between criteria values were obtained in linguistic form and then appropriate
values were assigned to proceed with calculation.
TABLE 7.2 Linguistic Variables for Ratings and Weights

RATINGS WEIGHTS
LINGUISTIC
LINGUISTIC VARIABLE FUZZY NUMBER VARIABLE FUZZY NUMBER
Very poor (VP) (0, 0, 1, 2) Very low (VL) (0, 0, 0.1, 0.2)
Poor (P) (1, 2, 2, 3) Low (L)
(0.1, 0.2, 0.2, 0.3)
Medium poor (MP) (2, 3, 4, 5) Medium low (ML) (0.2, 0.3, 0.4, 0.5)
Fair (F)
(4, 5, 5, 6) Medium (M) (0.4, 0.5, 0.5, 0.6)
Medium good (MG) (5, 6, 7, 8) Medium high (0.5, 0.6, 0.7, 0.8)
(MH)

Good (G)
(7, 8, 8, 9) High (H) (0.7, 0.8, 0.8, 0.9)
Very good (VG) (8, 9, 10, 10) Very high (VH) (0.8, 0.9, 1, 1)
TABLE 7.3 Expert Inputs for Alternative 1 with Respect to Different Criteria
DECISION MAKER (DM)
CONCEPT CRITERIA DM 1 DM 2 DM 3
A1 Pull production & streamlined process VG G G
Project duration MG G MG
Technical feasibility G VG G
Customer satisfaction VG G G
New business avenues G VG G
Return on investment VG G G
Top management commitment G MG G
Employee involvement MG G MG
Continuous training and education G F G
Process improvement VG G G
Multi-skilled and flexible workforce G MG G
Activity categorization MG G MG
Waste analysis G G MG
Flexible setups G G MG
TABLE 7.4 Importance Weights of the Criteria by Three Decision Makers

DECISION MAKER (DM)
CRITERIA DM 1 DM 2 DM 3
Pull production & streamlined process VH H H
Project duration MH H MH
Technical feasibility H MH H
Customer satisfaction H VH H
New business avenues MH H H
Return on investment MH M MH
Top management commitment H MH M
Employee involvement M MH H
Continuous training and education H M ML
Process improvement VH H H
Multi-skilled and flexible workforce H H VH
Activity categorization H MH H
Waste analysis MH H MH
Flexible setups M ML MH
TABLE 7.5 Fuzzy Relationship Matrix

DM 1 DM 2 DM 3
A1 C1 8, 9, 10, 10 7, 8, 8, 9 7, 8, 8, 9
C2 5, 6, 7, 8 7, 8, 8, 9 5, 6, 7, 8
C3 7, 8, 8, 9 8, 9, 10, 10 7, 8, 8, 9
C4 8, 9, 10, 10 7, 8, 8, 9 7, 8, 8, 9
C5 7, 8, 8, 9 8, 9, 10, 10 7, 8, 8, 9
C6 8, 9, 10, 10 7, 8, 8, 9 7, 8, 8, 9
C7 7, 8, 8, 9 5, 6, 7, 8 7, 8, 8, 9
C8 5, 6, 7, 8 7, 8, 8, 9 5, 6, 7, 8
C9 7, 8, 8, 9 4, 5, 5, 6 7, 8, 8, 9
C10 8, 9, 10, 10 7, 8, 8, 9 7, 8, 8, 9
C11 7, 8, 8, 9 5, 6, 7, 8 7, 8, 8, 9
C12 5, 6, 7, 8 7, 8, 8, 9 5, 6, 7, 8
C13 7, 8, 8, 9 7, 8, 8, 9 5, 6, 7, 8
C14 7, 8, 8, 9 7, 8, 8, 9 5, 6, 7, 8
DM 1 DM 2 DM 3
A2 C1 7, 8, 8, 9 5, 6, 7, 8 7, 8, 8, 9
C2 7, 8, 8, 9 5, 6, 7, 8 5, 6, 7, 8
C3 5, 6, 7, 8 7, 8, 8, 9 4, 5, 5, 6
C4 4, 5, 5, 6 5, 6, 7, 8 5, 6, 7, 8
C5 7, 8, 8, 9 4, 5, 5, 6 7, 8, 8, 9
C6 7, 8, 8, 9 4, 5, 5, 6 7, 8, 8, 9
C7 8, 9, 10, 10 7, 8, 8, 9 5, 6, 7, 8
C8 7, 8, 8, 9 5, 6, 7, 8 5, 6, 7, 8
C9 5, 6, 7, 8 4, 5, 5, 6 5, 6, 7, 8
C10 7, 8, 8, 9 5, 6, 7, 8 2, 3, 4, 5
C11 5, 6, 7, 8 4, 5, 5, 6 5, 6, 7, 8
C12 5, 6, 7, 8 4, 5, 5, 6 5, 6, 7, 8
C13 5, 6, 7, 8 4, 5, 5, 6 5, 6, 7, 8
C14 7, 8, 8, 9 5, 6, 7, 8 2, 3, 4, 5
(Continued )
DM 1 DM 2 DM 3
A3 C1 5, 6, 7, 8 7, 8, 8, 9 5, 6, 7, 8
C2 5, 6, 7, 8 7, 8, 8, 9 5, 6, 7, 8
C3 5, 6, 7, 8 4, 5, 5, 6 5, 6, 7, 8
C4 4, 5, 5, 6 5, 6, 7, 8 4, 5, 5, 6
C5 5, 6, 7, 8 7, 8, 8, 9 5, 6, 7, 8
C6 4, 5, 5, 6 5, 6, 7, 8 4, 5, 5, 6
C7 5, 6, 7, 8 4, 5, 5, 6 5, 6, 7, 8
C8 4, 5, 5, 6 5, 6, 7, 8 7, 8, 8, 9
C9 7, 8, 8, 9 5, 6, 7, 8 5, 6, 7, 8
C10 7, 8, 8, 9 5, 6, 7, 8 4, 5, 5, 6
C11 7, 8, 8, 9 4, 5, 5, 6 5, 6, 7, 8
C12 4, 5, 5, 6 2, 3, 4, 5 4, 5, 5, 6
C13 7, 8, 8, 9 5, 6, 7, 8 5, 6, 7, 8
C14 5, 6, 7, 8 4, 5, 5, 6 2, 3, 4, 5
Individual criteria weights were assigned to 14 lean concept selection

criteria by decision makers. The values were assigned in the form of fuzzy
numbers and so in order to find the best lean concept, these fuzzy ratings were
normalized and averaged out with available three lean concepts which were
carried out in further computational process.
The individual criteria weightage with respect to three lean concepts are
averaged to find the overall weightage of criteria. The fuzzy values are normal-
ized with criteria weight and it is depicted in Table 7.6 as weighted normalized
criteria.
Table 7.7 depicts the ideal positive and negative distance values for 14 cri-
teria with respect to three lean concepts A1, A2, and A3. The span of criteria
to lean concepts was calculated to identify the most closely associated lean
concept.
Table 7.8 depicts the closeness coefficient index of three lean concepts
with respect to 14 criteria. It is found that lean concept A2 lies with closeness
coefficient value of 0.62 followed by A1 with 0.60 and A3 with 0.59. Thus,
concept A2 is ranked as top most lean concept compared to other two lean
concepts with respect to selection criteria.
Based on the computations using the F-TOPSIS approach, projects are pri-
oritized and subjected to implementation. The priority order of projects helps
industry practitioners in implementing lean concepts.
TABLE 7.6 Weighted Normalized Criteria Matrix
WEIGHTED NORMALIZED FUZZY WEIGHTED NORMALIZED FUZZY WEIGHTED NORMALIZED FUZZY
MATRIX A1 MATRIX A2 MATRIX A3
C1 0.49 0.6889 0.7482 1 0.35 0.6059 0.6612 0.9 0.35 0.5478 0.6351 0.9
C2 0.275 0.5025 0.4964 0.9 0.275 0.5025 0.4964 0.9 0.275 0.5025 0.4964 0.9
C3 0.2 0.3504 0.3542 0.513 0.22 0.4599 0.462 0.9 0.25 0.5183 0.4851 0.9
C4 0.49 0.6889 0.7482 1 0.28 0.4648 0.5481 0.8 0.28 0.4648 0.4872 0.8
C5 0.35 0.6059 0.6622 0.9 0.22 0.511 0.539 0.81 0.25 0.4818 0.5621 0.81
C6 0.16 0.2736 0.2898 0.456 0.176 0.3249 0.3591 0.8 0.2 0.4047 0.4473 0.8
C7 0.2 0.4599 0.5092 0.81 0.2 0.4788 0.5561 0.9 0.16 0.3528 0.4221 0.72
C8 0.2 0.4158 0.4891 0.81 0.2 0.4158 0.4891 0.81 0.16 0.3969 0.4422 0.81
C9 0.088 0.3021 0.3249 0.9 0.1 0.3763 0.3591 0.9 0.088 0.318 0.3078 0.72
C10 0.49 0.6889 0.7482 1 0.14 0.4648 0.5481 0.9 0.28 0.5229 0.5742 0.9
C11 0.308 0.4482 0.4524 0.8 0.35 0.5893 0.5481 1 0.308 0.5229 0.522 1
C12 0.25 0.4818 0.5621 0.81 0.2 0.4088 0.4851 0.72 0.1 0.3139 0.3542 0.54
C13 0.22 0.3618 0.3796 0.72 0.25 0.4757 0.4599 0.9 0.2 0.402 0.3942 0.72
C14 0.044 0.1269 0.1378 0.32 0.044 0.1645 0.1643 0.8 0.05 0.2021 0.1961 0.8
A* 0.49 0.6889 0.7482 1 0.35 0.5893 0.5481 1 0.308 0.5229 0.522 1
A_ 0.044 0.1269 0.1378 0.32 0.044 0.1645 0.1643 0.8 0.05 0.2021 0.1961 0.8
7 • Project Selection and Training for Lean Implementation
65
66
TABLE 7.7 Ideal Positive and Negative Solution

FPIS FNIS
C1 0 0.08768727 0.091607 0.670758 0.426372 0.370688
C2 0.226842971 0.09279391 0.063667 0.468839 0.309782 0.283458
C3 0.443879582 0.13045762 0.070111 0.229758 0.268863 0.278988
Lean Manufacturing
C4 0 0.14189227 0.122978 0.670758 0.312612 0.262457

C5 0.120947647 0.14049164 0.119389 0.558114 0.311736 0.289993
C6 0.512328231 0.24214621 0.154073 0.159767 0.164417 0.205465
C7 0.276744166 0.12216689 0.215421 0.413627 0.3091 0.175391
C8 0.295474996 0.17529333 0.163552 0.396363 0.253695 0.192104
C9 0.408412018 0.2262668 0.267498 0.366987 0.178832 0.106072
C10 0 0.15231574 0.067104 0.670758 0.292517 0.320818
C11 0.269912412 0 0 0.409187 0.392171 0.32439
C12 0.238902784 0.2140477 0.330001 0.442915 0.253858 0.18938
C13 0.362473158 0.11645342 0.200843 0.318654 0.280868 0.189828
C14 0.67075782 0.39217066 0.32439 0 0 0
SUM 3.826675784 2.23418345 2.190634 5.776485 3.754823 3.189034
Projects A1 A2 A3 A1 A2 A3
TABLE 7.8 Closeness Coefficient Index

CONCEPTS D+ D− CCI RANK
A1 3.826675784 5.7764848 0.601519 2
A2 2.234183454 3.7548225 0.626953 1
A3 2.190634481 3.18903391 0.592794 3
7.3 TRAINING AND

IMPLEMENTATION FOR LEAN
Steps involved in training and implementation are discussed as follows:

a. Formation of a dedicated team with lean leaders and associates
A dedicated team has to be formed with management repre-
sentatives who will coordinate lean implementation, and select lean
leaders for planning various projects and lean associates to coordi-
nate lean implementation
c. Formation of a training schedule and training leaders and associates

A training schedule has to be formed for training the workforce
at different levels: lean leaders, lean associates, shop workers
e. Formation of a project-wise team

On identification of potential projects, a project-wise team has
to be formed with coordinator and members from different divisions
g. Project implementation and review

This is followed by implementing projects as per the plan.
Based on the project scope, primary and secondary lean tools have
to be ideated and implemented
h. Computation of cost savings
This has to be followed by cost savings by involving personnel

from finance division.
7.4 LEAN IMPLEMENTATION LEVELS
Lean implementation has to be followed by focusing on the following

aspects (Gopalakrishnan, 2010):
1. The system has to be made stable by exploring the reasons for unsta-
bility. Appropriate actions should be taken to overcome the reasons
for unstability and the system has to be made stable.
2. Once the system has been made stable, work standardization
has to be achieved for ensuring consistency. Standard Operating
Procedures (SOPs) and Standard Instructions (SIs) have to be
focused in this regard.
3. Production has to be made pull in compliance with customer
demand. A pull system facilitates the reduction of inventory.
5. The final level needs to be sustained through CI (Kaizen). Sustenance

is a critical element of 5S.
7.5 SUMMARY
This chapter presents the significance of project selection for lean deployment.
A case of lean project selection is illustrated using an MCDM tool. Steps
involved in training and implementation are presented with lean implementa-
tion levels.
REFERENCES
Antony, J., Gupta, S., Vijaya Sunder, M., and Gijo, E.V. (2018), ‘Ten commandments of
lean six sigma: a practitioners’ perspective’, International Journal of Productivity
and Performance Management, 67:6, 1033–1044.
Singh, M., Rathi, R., Antony, J., and Garza-Reye, J.A. (2021), ‘Lean six sigma proj-
ect selection in a manufacturing environment using hybrid methodology based
on intuitionistic fuzzy MADM approach’, IEEE Transactions on Engineering
Management, DOI: 10.1109/TEM.2021.3049877
Trakulsunti, Y., Antony, J., Ghadge, A., and Gupta, S. (2020), ‘Reducing medication
errors using LSS Methodology: a systematic literature review and key find-
ings’, Total Quality Management & Business Excellence, 31:5–6, 550–568, DOI:
10.1080/14783363.2018.1434771
Wang, T.C., and Lee, H.D. (2009), ‘Developing a fuzzy TOPSIS approach based on
subjective weights and objective weights’, Expert Systems with Applications, 36,
8980–8985.
Lean
Performance
Measurement
8
8.1 LEAN PERFORMANCE MEASURES

Appropriate performance measures of lean should be identified and ana-

lyzed. Some of the common performance measures include inventory, cycle
time, changeover time, lead time, and value addition. These performance
measures are basic measures. Performance measures contributed in research
include indicators from different perspectives such as management, technol-
ogy, employee, organization, and so on. Different solution methods are adopted
in literature for analysis. Leanness is the comprehensive lean performance
index with several indicators. Leanness measurement helps the organization to
gauge its lean performance. It is a comprehensive measure for lean practices.
Lean performance measurement needs to be done at regular time periods to
monitor improvements in performance which help organizations to sustain in
the competitive scenario.
DOI: 10.1201/9781003190332-8 71
TABLE 8.1 Dimensions and Sub-Dimensions for Leanness Assessment

DIMENSION SUB-DIMENSIONS
Organizational hierarchy Cultural transition
Workforce with interchangeable tasks
Management perspective Management commitment
Management vision for lean practices
Problem solving Kaizen approach adoption
Quick problem solving
Pull manufacturing Demand-driven manufacturing
Inventory management
Streamlined processes Value stream mapping adoption
Analysis of seven wastes
Waste and activity analysis Waste quantification
Activity categorization (VA, NVA. NNVA)
Employee Flexible workforce
Multi-skilled workforce
Manufacturing setups Flexible setups
Lesser time for changing setups
Visual controls Poka Yoke concepts
Andon devices
Product design Design for Manufacture and Assembly (DFMA)
concepts
Lean principles for product design
Standardization Component standardization
Adoption of Standard Operating Procedures
(SOPs), Standard Instructions (SIs)
Layout Organized layout
Flexible layout
Time management Takt time computation
Scheduled activities
Resource management Resource monitoring
Resource allocation
Quality management Usage of appropriate quality tools/techniques
Zero defects
Maintenance management OEE (Overall Equipment Effectiveness) monitoring
and analysis
Preventive maintenance adoption
Technology management Incorporation of new technologies
Technology-driven improvements
8 • Lean Performance Measurement 73
8.2 ASSESSMENT APPROACHES
8.2.1 Multi-Grade Fuzzy Approach

The leanness index of the organization is given by I which is the product of
the overall assessment factor R and the overall weight W (Vinodh and Chintha,
2011).
L .I . = W × R (8.1)

Evaluation is split into five grades

I = {10, 8, 6, 4, 2}
8–10 – Extremely lean
6–8 – Lean
4– 6 – Generally lean
2– 4 – Not lean
<2 – Extremely not lean
Computation is done based on expert inputs.
8.2.1.1 Primary Evaluation
Computation pertaining to the criterion weight and rating factor
I11 = W11 × R11 (8.2)

I11 – Index pertaining to the criterion

W11 – Weights pertaining to the criterion
R11 – Assessment vector pertaining to the criterion
Similarly, index pertaining to several criteria are derived.
8.2.1.2 Secondary Evaluation

Similarly, index related to all enablers should be done.

8.2.1.3 Tertiary Evaluation
Lean index of an organization is given by
Overall weight – W
Overall rating vector – R
Lean index I = W × R
8.2.2 Fuzzy Logic Approach

Steps involved in fuzzy logic approach are presented as follows (Vinodh and
Vimal, 2012):
Leanness index is denoted by
1
L .I . = ∑ R W× W
i
i
i
(8.4)

I =1
Ri Performance index for lean capabilities

Wi Importance weight for lean capabilities
Performance ratings and importance weights are evaluated by selecting the

appropriate linguistic variables. Then linguistic variables are approximated
using fuzzy numbers.

LCij Lean capabilities of the jth criterion in the ith enabler

Wijk Importance weight of the kth attribute in the jth criterion in the
ith enabler
Rijk Performance rating of the kth attribute in the jth criterion in the ith
enabler
Similarly, the lean index for rest dimensions are calculated.

FLI – fuzzy leanness index.
FLI should be paired with the relevant leanness level. Several approaches
are available. Among them, Euclidean distance is most applied because
of its advantages. This is followed by Euclidean distance and FPII (Fuzzy
Performance Importance Index) computation, which are presented in the case

study section.
8.3 CASE STUDY ON

LEANNESS ASSESSMENT
This section presents the case study on leanness assessment.
8.3.1 Computation Using
Multi-Grade Fuzzy Approach

8.3.1.1 Primary Assessment Calculation

W1 = (0.6 0.4)
 8 9 7 
R1 =  
 6 7 8 
Index
I1 = W1 × R1
I1 = (7.2, 8.2, 7.4)
Using the same principle, other indices are calculated.
I2 = (7.5, 7.5, 8.5)
I3 = (7, 6, 7.2)
TABLE 8.2 Expert Inputs for Leanness Assessment

DIMENSION WI SUB-DIMENSIONS WIJ E1 E2 E3
Organizational 0.05 Cultural transition 0.6 8 9 7
hierarchy
Workforce with 0.4 6 7 8
interchangeable tasks
Management 0.05 Management 0.5 7 8 8
perspective commitment
Management vision for 0.5 8 7 9
lean practices
Problem solving 0.05 Kaizen approach 0.6 7 6 8
adoption
Quick problem solving 0.4 7 6 6
Pull 0.1 Demand-driven
0.5 6 5 5
manufacturing manufacturing
Inventory management 0.5 7 6 5
Streamlined 0.05 Value stream mapping 0.6 6 5 5
processes adoption
Analysis of seven wastes 0.4 5 6 5
Waste and 0.1 Waste quantification 0.6 6 5 5
activity analysis
Activity categorization 0.4 5 5 5
(VA, NVA. NNVA)
Employee 0.1 Flexible workforce 0.5 6 7 6
Multi-skilled
workforce 0.5 7 6 6
Manufacturing 0.05 Flexible setups 0.6 5 6 7
setups
Lesser time for changing 0.4 6 7 6
setups
Visual controls 0.06 Poka Yoke concepts 0.6 5 6 5
Andon devices 0.4 6 5 6
Product design 0.04 DFMA concepts 0.5 5 6 4
Lean principles for 0.5 6 5 5
product design
Standardization 0.05 Component 0.6 5 6 7
standardization
Adoption of SOPs, SIs 0.4 6 7 6
Layout 0.05 Organized layout 0.5 6 6 7
Flexible layout 0.5 5 6 5
(Continued )
TABLE 8.2 (Continued)

Time 0.05 Takt time computation 0.6 6 5 5
management
Scheduled activities 0.4 7 6 5
Resource 0.05 Resource monitoring 0.4 6 7 6
management
Resource allocation 0.6 6 5 6
Quality 0.05 Usage of appropriate 0.5 7 6 6
management quality tools/techniques

Zero defects 0.5 5 6 7
Maintenance 0.05 OEE monitoring and 0.5 5 6 5
management analysis
Preventive maintenance 0.5 6 7 6
adoption
Technology 0.05 Incorporation of new 0.6 5 5 6
management technologies
Technology-driven
0.4 5 6 5
improvements
I4 = (6.5, 5.5, 5)
I5 = (5.6, 5.4, 5)
I6 = (5.6, 5, 5)
I7 = (6.5, 6.5, 6)
I8 = (5.4, 6.4, 6.6)
I9 = (5.4, 5.6, 5.4)
I10 = (5.5, 5.5, 4.5)
I11 = (5.4, 6.4, 6.6)
I12 = (5.5, 6, 6)
I13 = (6.4, 5.4, 5)
I14 = (6, 5.8, 6)
I15 = (6, 6, 6.5)
I16 = (5.5, 6.5, 5.5)
I17 = (5, 5.4, 5.6)
8.3.1.2 Secondary Assessment Calculation

W = (0.05, 0.05, 0.05, 0.1, 0.05, 0.1, 0.1, 0.05, 0.06, 0.04, 0.05, 0.05, 0.05, 0.05,
0.05, 0.05, 0.05)
I=W×R
I = (6.029, 6.006, 5.889)
1
I= (6.029 + 6.006 + 5.889)
3
I = 5.978 ∈ (4, 6)
8.3.2 Computation Using Fuzzy Logic Approach

TABLE 8.3 Expert Inputs for Leanness Assessment

Organizational H Cultural transition H E G VG
hierarchy
Workforce with H G VG G
interchangeable tasks
Management VH Management commitment VH VG VG F
perspective
Management vision for lean H G VG E
practices
Problem solving H Kaizen approach adoption FH G F VG
Quick problem solving H G F G
Pull manufacturing H Demand-driven
FH G F F
manufacturing
Inventory management VH G VG F
Streamlined FH Value stream mapping FH G F F
processes adoption
Analysis of seven wastes H F G F
Waste and activity FH Waste quantification H G F F
analysis
Activity categorization (VA, H F F F
NVA. NNVA)
Employee H Flexible workforce H G VG F
Multi-skilled
workforce H G F F
Manufacturing FH Flexible setups H F G VG
setups
Lesser time for changing FH G G F
setups
(Continued )

Visual controls H Poka Yoke concepts H F G F
Andon devices H G F G
Product design FH DFMA concepts M F G P
Lean principles for product M G F F
design
Standardization M Component standardization M F G VG
Adoption of SOPs, SIs FH G G F
Layout H Organized layout H G G VG
Flexible layout FH F G F
Time management H Takt time computation FH G F F
Scheduled activities H VG G F
Resource H Resource monitoring H G VG F
management
Resource allocation H G F G
Quality VH Usage of appropriate VH G F G
management quality tools/techniques

Zero defects H F G VG
Maintenance VH OEE monitoring and H F G F
management analysis
Preventive maintenance H G VG F
adoption
Technology FH Incorporation of new FH F F G
management technologies
Technology-driven
H F G F
improvements
Leanness index (LI

i)
N
 
= ∑ E W× W 
ij
ij
ij
(8.6)

j =1
LIi – Leanness level of the ith criterion

Eij – Performance rating of the jth factor in the ith criterion
Wij – Importance weight of the jth factor in the ith criterion
Table 8.5 presents performance ratings and importance weights for
assessment.
TABLE 8.4 Fuzzified Inputs for Assessment

SUB-DIMENSIONS WIJ E1 E2 E3 EAVERAGE
Cultural transition (0.7,
0.8, (8.5,
9.5, (5,
6.5, (7, 8, 9) (6.833, 8, 9)
0.9) 10) 8)
Workforce with (0.7,
0.8, (5, 6.5, 8) (7, 8, 9) (5,
6.5, (5.667,
7,
interchangeable 0.9) 8) 8.333)
tasks
Management (0.85, (7, 8, 9) (7, 8, 9) (3, 5, 7) (5.667,
7,
commitment 0.95, 1) 8.333)
Management vision (0.7, 0.8, (5, 6.5, 8) (7, 8, 9) (8.5,
(6.833, 8, 9)
for lean practices 0.9) 9.5, 10)
Kaizen approach (0.5, 0.65, (5, 6.5, 8) (3, 5, 7) (7, 8, 9) (5, 6.5, 8)
adoption 0.8)
Quick problem (0.7, 0.8, (5, 6.5, 8) (3, 5, 7) (5,
6.5, (4.333,
6,
solving 0.9) 8) 7.667)
Demand-driven
(0.5, 0.65, (5, 6.5, 8) (3, 5, 7) (3, 5, 7) (3.667,
5.5,
manufacturing 0.8) 7.333)
Inventory (0.85, (5, 6.5, 8) (7, 8, 9) (3, 5, 7) (5, 6.5, 8)
management 0.95, 1)
Value stream (0.5, 0.65, (5, 6.5, 8) (3, 5, 7) (3, 5, 7) (3.667,
5.5,
mapping adoption 0.8) 7.333)
Analysis of seven (0.7, 0.8, (3, 5, 7) (5,
6.5, (3, 5, 7) (3.667,
5.5,
wastes 0.9) 8) 7.333)
Waste (0.7,
0.8, (5, 6.5, 8) (3, 5, 7) (3, 5, 7) (3.667,
5.5,
quantification 0.9) 7.333)
Activity (0.7,
0.8, (3, 5, 7) (3, 5, 7) (3, 5, 7) (3, 5, 7)
categorization 0.9)
(VA, NVA. NNVA)
Flexible workforce (0.7, 0.8, (5, 6.5, 8) (7, 8, 9) (3, 5, 7) (5, 6.5, 8)
0.9)
Multi-skilled
(0.7, 0.8, (5, 6.5, 8) (3, 5, 7) (3, 5, 7) (3.667,
5.5,
workforce 0.9) 7.333)
Flexible setups (0.7, 0.8, (3, 5, 7) (5, 6.5, (7, 8, 9) (5, 6.5, 8)
0.9) 8)
Lesser time for (0.5,
0.65, (5, 6.5, 8) (5,
6.5, (3, 5, 7) (4.333,
6,
changing setups 0.8) 8) 7.667)

Poka Yoke concepts (0.7, 0.8, (3, 5, 7) 6.5,
(5, (3, 5, 7)
(3.667, 5.5,
0.9) 8) 7.333)
(Continued )

SUB-DIMENSIONS WIJ E1 E2 E3 EAVERAGE
Andon devices (0.7, 0.8, (5, 6.5, 8) (3, 5, 7) (5,
6.5, (4.333,
6,
0.9) 8) 7.667)
DFMA concepts (0.3, 0.5, (3, 5, 7) (5,
6.5, (2, 3.5, (3.33,
5,
0.7) 8) 5) 6.667)
Lean principles for (0.3, 0.5, (5, 6.5, 8) (3, 5, 7) (3, 5, 7) (3.667,
5.5,
product design 0.7) 7.333)
Component (0.3, 0.5, (3, 5, 7) (5, 6.5, (7, 8, 9) (5, 6.5, 8)
standardization 0.7) 8)
Adoption of SOPs, (0.5, 0.65, (5, 6.5, 8) (5, 6.5, (3, 5, 7) (4.333, 6,
SIs 0.8) 8) 7.667)
Organized layout (0.7, 0.8, (5, 6.5, 8) (5,
6.5, (7, 8, 9) (5.667,
7,
0.9) 8) 8.333)
Flexible layout (0.5, 0.65, (3, 5, 7) (5,
6.5, (3, 5, 7) (3.667,
5.5,
0.8) 8) 7.333)
Takt time (0.5, 0.65, (5, 6.5, 8) (3, 5, 7) (3, 5, 7) (3.667,
5.5,
computation 0.8) 7.333)
Scheduled activities (0.7, 0.8, (7, 8, 9) (5,
6.5, (3, 5, 7) (5, 6.5, 8)
0.9) 8)
Resource (0.7, 0.8, (5, 6.5, 8) (7, 8, 9) (3, 5, 7) (5, 6.5, 8)
monitoring 0.9)
Resource allocation (0.7, 0.8, (5, 6.5, 8) (3, 5, 7) (5,
6.5, (4.333,
6,
0.9) 8) 7.667)
Usage of (0.85, (5, 6.5, 8) (3, 5, 7) (5,
6.5, (4.333,
6,
appropriate 0.95, 1) 8) 7.667)
quality
tools/techniques

Zero defects (0.7, 0.8, (3, 5, 7) (5,
6.5, (7, 8, 9) (5, 6.5, 8)
0.9) 8)
OEE monitoring (0.7, 0.8, (3, 5, 7) (5,
6.5, (3, 5, 7) (3.667,
5.5,
and analysis 0.9) 8) 7.333)
Preventive (0.7, 0.8, (5, 6.5, 8) (7, 8, 9) (3, 5, 7) (5, 6.5, 8)
maintenance 0.9)
adoption
Incorporation of (0.5,
0.65, (3, 5, 7) (3, 5, 7) (5,
6.5, (3.667,
5.5,
new technologies 0.8) 8) 7.333)
Technology-driven
(0.7,
0.8, (3, 5, 7) (5,
6.5, (3, 5, 7) (3.667,
5.5,
improvements 0.9) 8) 7.333)
TABLE 8.5 Performance Ratings and Importance Weights for Leanness

Assessment
DIMENSION WI E
Organizational hierarchy (0.7, 0.8, 0.9) (6.25, 7.5, 8.667)
Management perspective (0.85, 0.95, 1) (6.193, 7.457, 8.649)
Problem solving (0.7, 0.8, 0.9) (4.611, 6.224, 7.823)
Pull manufacturing (0.7, 0.8, 0.9) (4.506, 6.093, 7.703)
Streamlined processes (0.5, 0.65, 0.8) (3.667, 5.5, 7.333)
Waste and activity analysis (0.5, 0.65, 0.8) (3.333, 5.25, 7.167)
Employee (0.7, 0.8, 0.9) (4.333, 6, 7.667)
Manufacturing setups (0.5, 0.65, 0.8) (4.722, 6.276, 7.843)
Visual controls (0.7, 0.8, 0.9) (4, 5.75, 7.5)
Product design (0.5, 0.65, 0.8) (3.5, 5.25, 7)
Standardization (0.3, 0.5, 0.7) (4.583, 6.217, 7.822)
Layout (0.7, 0.8, 0.9) (4.833, 6.328, 7.862)
Time management (0.7, 0.8, 0.9) (4.444, 6.051, 7.686)
Resource management (0.7, 0.8, 0.9) (4.667, 6.25, 7.833)
Quality management (0.85, 0.95, 1) (4.634, 6.229, 7.825)
Maintenance management (0.85, 0.95, 1) (4.333, 6, 7.667)
Technology management (0.5, 0.65, 0.8) (3.667, 5.5, 7.333)
8.3.2.1 Calculations at Secondary Level

LI = (4.572, 6.156, 7.747)
The natural expression leanness level (LL)
set used in Euclidean distance
method is:
LL = {Extremely I4.0 [EI], Very I4.0 [VI], Good I4.0 [GI], Fairly I4.0 [FI],
Slowly I4.0 [SI]}
Further, the Euclidean distance D from LI is calculated for each member
in set LL and selected minimum. Euclidean distance D is calculated using the
following equation.
 
 ∑
D ( LI , LLi s) =  ( fI 4 RI ( x ) − f RLi ( x )) 
2
 (8.7)

 x∈ p 
LLi) – Euclidean distance between LI and LLi

D (LI,
LLi – Fuzzy number set for natural-language expression
f LI ( x ) – TFN of LI
f RLi ( x ) – TFN of LLi
Linguistic levels to map FLI [SL (0, 1.5, 3); FL (1.5, 3, 4.5); G (3.5, 5, 6.5); VL
(5.5, 7, 8.5); EL (7, 8.5, 10)]
D (LI, FL) = 5.478
In a similar manner, D for remaining leanness linguistic levels have been
computed as shown below:
D (LI, SL) = 8.068
D (LI, G) = 2.0094
D (LI, VL) = 1.463
D (LI, EL) = 4.058
8.3.2.2 Evaluation of Fuzzy Performance

Importance Index
The higher the FPII, the more is the contribution of factor in improving the
leanness level. The importance weight Wij is transformed into its complement
Wijʹ due to its lower weightage. Subsequently, the FPII of each sub-dimension
is calculated using equation 8.8.
FPII ij = Eij (Average) × Wij′ (8.8)
where Eij ( Average ) – Combined performance ratings of the ijth factor

Wij′ – Complement of importance weight of the ijth factor = [(1, 1, 1) − Wij]
Defuzzification of each FPII is done for ranking using equation 8.9. The
ranking score is obtained using the centroid equation for membership function.
Let A = (m, n, p),
 m + 4n + p 
Ranking score =   (8.9)
 6 
Table 8.6 presents FPII and the ranking score for sub-dimensions.
8.3.3 Excel-Based Support for

Leanness Assessment
xcel-based support system is developed for the computations. The developed
E
Excel-based support should enable industry practitioners to systematically
analyze the lean performance of firms. Experts can access dimensions used
for assessment and the dimensions can be amended. Experts provide linguistic
assessment of ratings and weights. The window enabling this process is shown
in Figure 8.1.
84
TABLE 8.6 FPII and Ranking Score for Sub-Dimensions
RANKING

SUB-DIMENSIONS EIJ AVERAGE W (1, 1, 1) − W FPII SCORE
Cultural transition (6.833, 8, 9) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.683, 1.6, 2.7) 1.631
Workforce with interchangeable (5.667, 7, 8.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.567, 1.4, 2.5) 1.444
tasks
Management commitment (5.667, 7, 8.333) (0.85, 0.95, 1) (0, 0.05, 0.15) (0, 0.35, 1.25) 0.442
Management vision for lean (6.833, 8, 9) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.683, 1.6, 2.7) 1.631
Lean Manufacturing
practices
Kaizen approach adoption (5, 6.5, 8) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5) (1, 2.275, 4) 2.350
Quick problem solving (4.333, 6, 7.667) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.433, 1.2, 2.3) 1.256
Demand-driven manufacturing (3.667, 5.5, 7.333) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5) (0.733,
1.925, 2.017
3.667)
Inventory management (5, 6.5, 8) (0.85, 0.95, 1) (0, 0.05, 0.15) (0, 0.325, 1.2) 0.417
Value stream mapping adoption (3.667, 5.5, 7.333) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5) (0.733,
1.925, 2.017
3.667)
Analysis of seven wastes (3.667, 5.5, 7.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.367, 1.1, 2.2) 1.161
Waste quantification (3.667, 5.5, 7.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.367, 1.1, 2.2) 1.161
Activity categorization (VA, NVA. (3, 5, 7) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.3, 1, 2.1) 1.067
NNVA)
Flexible workforce (5, 6.5, 8) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.5, 1.3, 2.4) 1.350
Multi-skilled workforce (3.667, 5.5, 7.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.367, 1.1, 2.2) 1.161
Flexible setups (5, 6.5, 8) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.5, 1.3, 2.4) 1.350
Lesser time for changing setups (4.333, 6, 7.667) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5)
(0.867, 2.1, 2.183
3.833)
(Continued )
RANKING

SUB-DIMENSIONS EIJ AVERAGE W (1, 1, 1) − W FPII SCORE
Poka Yoke concepts (3.667, 5.5, 7.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.367, 1.1, 2.2) 1.161
Andon devices (4.333, 6, 7.667) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.433, 1.2, 2.3) 1.256
DFMA concepts (3.333, 5, 6.667) (0.3, 0.5, 0.7) (0.3, 0.5, 0.7) (1, 2.5, 4.667) 2.611
Lean principles for product (3.667, 5.5, 7.333) (0.3, 0.5, 0.7) (0.3, 0.5, 0.7) (1.1, 2.75, 5.133) 2.872
design
Component standardization (5, 6.5, 8) (0.3, 0.5, 0.7) (0.3, 0.5, 0.7) (1.5, 3.25, 5.6) 3.350
Adoption of SOPs, SIs (4.333, 6, 7.667) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5) (0.867,
2.1,3.833) 2.183
Organized layout (5.667, 7, 8.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.567, 1.4, 2.5) 1.444
Flexible layout (3.667, 5.5, 7.333) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5) (0.733,
1.925, 2.017
3.667)
Takt time computation (3.667, 5.5, 7.333) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5) (0.733,
1.925, 2.017
3.67)
Scheduled activities (5, 6.5, 8) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.5, 1.3, 2.4) 1.350
Resource monitoring (5, 6.5, 8) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.5, 1.3, 2.4) 1.350
Resource allocation (4.333, 6, 7.667) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.433, 1.2, 2.3) 1.256
Usage of appropriate quality (4.333, 6, 7.667) (0.85, 0.95, 1) (0, 0.05, 0.15) (0, 0.3, 1.15) 0.392
tools/techniques

Zero defects (5, 6.5, 8) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.5, 1.3, 2.4) 1.350
OEE monitoring and analysis (3.667, 5.5, 7.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.367, 1.1, 2.2) 1.161
Preventive maintenance adoption (5, 6.5, 8) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.5, 1.3, 2.4) 1.350
8 • Lean Performance Measurement
Incorporation of new (3.667, 5.5, 7.333) (0.5, 0.65, 0.8) (0.2, 0.35, 0.5)
(0.733, 1.925, 2.017
technologies 3.667)
85
Technology-driven improvements (3.667, 5.5, 7.333) (0.7, 0.8, 0.9) (0.1, 0.2, 0.3) (0.367, 1.1, 2.2) 1.161
FIGURE 8.1 Window Enabling Entry of Expert Inputs
FIGURE 8.2 Window Enabling the Computation of FLI
This is followed by conversion of linguistic variables into fuzzy num-

bers. Triangular Fuzzy Numbers (TFNs) are used in the system. Appropriate
computations have been done using the methodology mentioned. This is fol-
lowed by computation of FLI, which is a TFN. FLI should be validated using
Euclidean Distance (ED) computation. It indicates the lean performance level
of the firm. The window enabling FLI computation is shown in Figure 8.2.
This is followed by FPII calculation. Using the equations mentioned, FPII
scores have been computed and the ranking score is derived. Ranking scores
have to be sorted followed by fixing management threshold and analyzing further
FIGURE 8.3 Window Enabling Sorted Lean Dimensions
weaker areas. Those attributes whose ranking score is less than the threshold are
found to be weaker. The window enabling the ranking of lean dimensions is shown
in Figure
8.3.
The developed Excel-based support helps in computing and analyzing
lean performance of the firms using fuzzy logic approach. The developed sup-
port system can be expanded further with interfacing of front end modules to
develop a comprehensive support system.
8.3.4 Lean Performance Assessment

Using ANFIS
ANFIS is applied for leanness assessment. It includes advantages such as combi-
nation of fuzzy logic and a neural network. Expert responses were fed as input data
in the ANFIS editor available in MATLAB software. The ANFIS editor is easily
customizable with modification of algorithms, rules, and source codes. The model
formulation window in ANFIS is shown in Figure 8.4. Input variables “pull manu-
facturing”, “waste and activity analysis”, “employee”, “manufacturing setups”, and
“visual controls” were formulated. Three membership functions, namely, poor,
fair, and good, were fed as input data. The input range was 0–10 and three mem-
bership functions were defined. Then the membership function plots were defined
as shown in Figure 8.5. Input variables were defined in the range 0–10. Input data
(triangular type) were loaded on to the ANFIS editor. The rule editor in the ANFIS
toolbox included a set of predetermined rules based on developed Fuzzy Inference
FIGURE 8.4 Model Formulation
FIGURE 8.5 Membership Function Definition for Inputs

FIGURE 8.6 Rules Generation and Output
System (FIS) properties and membership functions. The study included five inputs
and each input had triangular membership functions. A total of 243 rules were
obtained using the ANFIS rule generator (Figure 8.6).
After obtaining rules, output and surface were generated by varying the
inputs using a rule editor. Using the rule viewer, indices for inputs were obtained
and by varying the input indices, the output leanness index was obtained. The
current score is indicated by the center line position. The rule viewer with input
indices for the given input data set is shown in Figure 8.6. Then the leanness
index is found. The center line is further moved toward the extremes to deter-
mine the effect of output variation with respect to each factor. The generated
surface includes a generalized neuron model with three axes x, y, and z, as shown
in Figure 8.7. The generated surface is a 3D curve that indicates the dependency
between the two input values and the output. The benefit of ANFIS is that the
effect of variation in input factors and the related change with output value can
be found using the ANFIS rule viewer.
8.4 SUMMARY
This chapter presents details of lean performance measures. Details of assess-
ment approaches Multi Grade Fuzzy (MGF) and Fuzzy Logic (FL) have been
FIGURE 8.7 Generated Surface Viewer
presented. Case studies on leanness assessment using MGF and FL approaches

have been discussed. Details of lean index and analysis of weaker areas were
illustrated. Excel-based support for leanness assessment was presented. This
was followed by leanness assessment using ANFIS.
REFERENCES
Vinodh, S., and Chintha, S.K. (2011), ‘Leanness assessment using multi-grade fuzzy
approach’, International Journal of Production Research, 49:2, 431–445.
Vinodh, S., and Vimal, K.E.K. (2012), ‘Thirty criteria based leanness assessment using
fuzzy logic approach’, The International Journal of Advanced Manufacturing
Technology, 60, 1185–1195, DOI 10.1007/s00170-011-3658-y
Lean
Integration
with Other
9
Strategies
9.1 LEAN SIX SIGMA

Six Sigma is a defect reduction strategy aiming at zero defects (3.4 ppm).
It aims at higher quality and a defect-free business process. It employs a proj-
ect approach. Six Sigma is a 3D approach encompassed within the organiza-
tional structure and methodology (Define Measure Analyze Improve Control
(DMAIC)) tools (regression, process maps). Six Sigma is based on the DMAIC
approach. Lean is waste elimination strategy. Lean Six Sigma (LSS) aims at
business process excellence through waste elimination and defect reduction.
LSS includes the deployment of lean tools in the Six Sigma DMAIC process.
LSS is focused on process excellence through systematic training of people
on LSS methods. LSS projects are aimed at process improvement using the
DMAIC approach. Product development can also be focused on using the
Define Measure Analyze Design Validate (DMADV) approach. LSS needs
management commitment and workforce involvement for executing projects.
Project selection for LSS should be done meticulously from the viewpoint
of waste elimination and defect reduction. LSS integrates waste elimination
and defect reduction approaches and facilitates business process excellence
through the implementation of integrated methodologies. LSS in the context
of Industry 4.0 has to be deployed in line with technology integration. Industry
4.0 technologies have to be deployed in line with enhancing business perfor-
mance. Lean techniques have to be integrated with Six Sigma concepts. LSS
DOI: 10.1201/9781003190332-9 91
is a business process excellence approach. LSS implementation has to be done

based on project approach and potential projects have to be selected based on
waste elimination and defect reduction criteria.
LSS includes amalgamation of the process improvement approach (Six
Sigma) and the waste elimination approach (lean manufacturing). LSS has
combined potential in terms of facilitating organizations to deal with com-
petitiveness in terms of defect-free and uninterrupted production. Based on
research studies, an important aspect is that lean tools/techniques have to be
applied across all phases of Six Sigma for obtaining focused benefits. Various
lean and Six Sigma tools are 5S practices, Just In Time (JIT), Poka Yoke, Total
Productive Maintenance (TPM), Quick Change Over (QCO), Value Stream
Mapping (VSM), Kaizen, workcell, Statistical Process Control (SPC), Failure
Mode and Effect Analysis (FMEA), Quality Function Deployment (QFD),
Design of Experiments (DoE), regression analysis, 5 Why analysis, control
charts, scatter diagram, cause and effect analysis, Fault Tree Analysis (FTA),
Pareto charts, histogram, etc.
9.2 LEAN AND AGILE

MANUFACTURING
• The lean system aims at waste minimization, streamlined pro-
cesses, and value addition; an agile system aims at the manufacture
of products in line with customer preferences (Vinodh et al., 2008).
• Lean requires process flexibility whereas agile requires product
flexibility.
• Lean focuses on waste minimization whereas agile focuses on cus-
tomer enrichment.
• Lean is based on flexible production lines whereas agile aims at
organizing to master change.
• Lean is an enhanced form of mass production whereas agile aims at
customized manufacturing.
• The scope of lean is improving factory operations whereas agile has
an enterprise-wide focus.
• Lean is a prerequisite for agile manufacturing. Effective deployment of
lean facilitates implementation of agile practices in an effective manner.
Agile manufacturing enables the development of product variants within a

short period of time. An agile system includes both lean system and flexible
system concepts to deal with market competitiveness. A lean system brings
9 • Lean Integration with Other Strategies 93
about the manufacturing management component and an agile system facili-

tates the manufacturing technology perspective. This fact implies that lean
is a prerequisite for an agile system. Workforce attributes for an agile and
advanced manufacturing system include able decision making, problem solv-
ing, intrepreneuring skill, team leading, and so on.
Concepts of agile manufacturing include customized production, produc-
tivity improvement. Enabling mechanisms/technologies include ecommerce,
rapid prototyping, product/process information system, quick partnership.
Lean is a process improvement methodology whereas agile is a
product-focused improvement methodology. Both lean and agile systems have
customer-centric goals. Lean enhances value from the customer perspective
whereas an agile system facilitates customized production in line with cus-
tomer requirements.
All sectors are incorporated with agility, but the extent of agility varies
from one sector to another. The consumer electronics sector has higher agility,
for example.
9.3 LEAN SUSTAINABILITY

Lean aims at minimization and elimination of wastes, thereby enhancing
value addition. Environmental waste is considered as the ninth waste. Lean
tools have the potential to deal with environmental waste (Vinodh et al., 2011).
In this context, as lean techniques facilitate waste elimination and production
as per customer demand, they contribute to the resource utilization aspect of
sustainability.
Lean techniques such as VSM facilitate analysis of processes in an effec-
tive manner. VSM from the sustainability viewpoint (sustainable VSM) cap-
tures material utilization, energy consumption beyond time, and inventory
data to analyze processes in an effective manner. Sustainability tools Life
Cycle Assessment (LCA) can be considered with lean tools VSM for monitor-
ing processes in order to make them more effective.
Lean tool 5S also considers sustainability aspects in terms of dealing with
environmental initiatives and can be extended to 7S in dealing with sustain-
able aspects. Lean sustainability would facilitate organizations to deal with
challenges in moving ahead with the development of a smart factory.
Sustainability is the critical intersection among triple bottom line dimen-
sions (profitability, people, and planet) pertaining to economic, societal, and
environmental dimensions. Any initiative in one perspective will have com-
plementary benefits in the other two perspectives. Sustainability involves
initiatives in material, product, and process perspectives. Lean tools have the
good potential to deal with sustainability. Lean facilitates production to cus-
tomer demand in the sense that it enables optimal resource utilization, which
further minimizes environmental impacts. Lean is also a prerequisite for sus-
tainability implementation. Lean facilitates a stable environment by reducing
the causes of instability.
Traditional process models involve two dimensions (input-output); but
the process model in the context of sustainability includes three dimensions
(input-output-impact). After creating such process models, analysis of envi-
ronmental impacts can be done based on LCA. Major environmental impacts
include CO2-based, NO2-based, SO4-based, and energy impacts. Such process
models should be analyzed from a lean perspective for optimal resource con-
sumption and value addition.
9.4 SUMMARY
This chapter presents the details of lean integration with other manufacturing
strategies. Insights on lean Six Sigma, lean and agile manufacturing, and lean
sustainability are discussed.
REFERENCES
Vinodh, S., Arvind, K.R., and Somanaathan, M. (2011), ‘Tools and techniques for
enabling sustainability through lean initiatives’, Clean Technologies and
Environmental Policy, 13:3, 469–479.
Vinodh, S., Sundararaj, G., and Devadasan, S.R. (2008), ‘Total agile design system in
contemporary organisational scenario’, Industrial Management & Data Systems,
108:8, 1111–1130.
Lean
Integration with
Industry 4.0
10
10.1 NEED AND SCOPE OF INTEGRATION
10.1.1 Need
Lean and Industry 4.0 need to be integrated to handle volatile market condi-
tions, the global market scenario, the increasing intensity of competition, higher
levels of mass customization, arbitrary lot size, cost, quality-related challenges.
10.1.2 Scope
• To deal with future manufacturing challenges
• To digitize the entire value chain of the enterprise
• To focus on developing a smart manufacturing platform with indus-
trial networked information applications
• To enable organizations in attaining sustainable goals
• To facilitate better integration of customers and suppliers into the
value addition process
Recent amalgamation between lean practices and Industry 4.0 technologies

are termed lean automation to contribute more changeability and minimal
information flows to comply with future market trends.
Lean Industry 4.0 enables decentralized and simpler architectures with
the objective of easily integrating modules with lesser complexity levels
(Tortorella and Fettermann, 2017).
DOI: 10.1201/9781003190332-10 95
Industry 4.0 aims at enhancing product and system interconnectivity. It

enables a shift from centralized production to flexible manufacturing. Industry
4.0 is supported by a Cyber-Physical System (CPS) which includes two vital
elements (integrated software and network of software systems).
Lean automation can enable and expand Lean Production (LP) approaches
and concepts.
The employee is a smart production operator (Leyh et al., 2017).
Amalgamation of lean and Industry 4.0 is vital. The TPS ( Toyota
Production System) core pillars include Just In Time (JIT) and autonomation.
Autonomation refers to the automation of manual processes for inspection
based on a signal mechanism. Automation in production played a key role
in the origin of lean and Industry 4.0 is an emerging trend (Sanders et al.,
2016).
Industry 4.0 technologies enable a new level of automation to enhance the
efficiency of lean firms.
Industry 4.0 needs process alignment with a defined supplier, customer,
processes, activities.
A lean system aims at deployment of effective processes without waste
with defined standards and customer focus. The deployment of horizontal and
vertical networking facilitates better customer and supplier integration.
Industry 4.0 increases lean efficiency (Dombrowski et al., 2017).
10.2 INSIGHTS ON LEAN AND

INDUSTRY 4.0 INTEGRATION
Lean implementation is initiated with one or two tools and deployed through-
out the organization. The selection of relevant LP approaches and recognizing
their deployability in an operational environment stipulates an extra challenge
(Tortorella and Fetterman, 2017).
Amalgamation among LP approaches and Industry 4.0 technologies is
termed lean automation with the scope for higher interchangeability and short
information flows to comply with future market needs. Both lean and Industry
4.0 necessitate decentralized and simple architectures over complex systems
with the objective of small and amalgamated modules with ease with lesser
complexity levels (Tortorella and Fetterman, 2017). Initiatives and experimen-
tation should be done with comprehensive dimensions.
Lean automation can be deployed to enable and detail lean tools and con-
cepts. It is likely to enable organization-wide depiction of the actual scenario
supported with simulation-based optimization measures. Workers act as smart
10 • Lean Integration with Industry 4.0 97
operators of production. The smart operator is alerted by SMS or email so as

to fix the issues (Leyh et al., 2017).
The CPS interfaces the physical and virtual world through embedded
computer-controlled feedback loops. Industry 4.0 implementation implies
amalgamation of new technologies into the present LP system and busi-
ness process modification. Industry 4.0 facilitates scope to enhance trans-
parency and stability of lean principle adopting processes ( Wagner et al.,
2017).
Lean and Industry 4.0 integration (Tools/ Techniques perspective)
• Spider chart/radar chart should be supported with IT-based tools to

facilitate data updation, which helps in performance improvement
• Poka yoke should be supported with an IoT (Internet of Things)-
based sensor mechanism, which facilitates mistake proofing in
jigs/fixtures

• Kanban should be enabled through IoT, which facilitates the auto-
mated movement of trolleys/containers supported with sensor-based
information
• Maintenance parameters monitoring should be facilitated through AR
(Augmented Reality) technology wherein digital history cards can be
maintained and updated; spare parts planning can also be enabled
• OEE (Overall Equipment Effectiveness) data can be monitored and
analyzed through IoT supported with cloud systems. Through IoT,
sensors can capture OEE parameters and further they can be stored
in cloud systems; and remote monitoring of OEE parameters for dif-
ferent machine tools in different manufacturing shops can be done
by shop managers
10.3 ANALYSIS OF WORKFORCE

ATTRIBUTES FOR LEAN
AND INDUSTRY 4.0
Workforce aspects in the context of lean and Industry 4.0 have to be analyzed.
In this context, the following attributes are identified from literature review
and expert opinion.
• Highly skilled workforce

• Good problem-solving ability
• Dedication and loyalty

• Achievement-oriented and positive attitude
• Alignment with organization goals
• Willingness to take up new opportunities
• Intrepreneuring skills
• Learning aptitude
• Coordination and networking ability
• Competitive spirit to deal with challenges
• Ability to work in multifunctional teams
• Flexibility and adaptability to changing trends
Criteria used for analysis include management commitment, continuous

improvement, technology competence, process versatility, and value enhance-
ment. The fuzzy Technique for Order Preference by Similarity to Ideal Solution
(TOPSIS) approach is used for analysis. The methodological steps of fuzzy
TOPSIS can be referred to in Section 5.7.
Table 10.1 presents expert inputs depicting the relationship between
workforce aspects with reference to governing criterion. Table 10.2 presents
an excerpt of a fuzzy decision matrix. Then the fuzzy ratings are aggre-
gated and further a normalized fuzzy decision matrix is derived. Table 10.3
presents a weighted normalized matrix with Fuzzy Positive Ideal solution
( FPIS) and Fuzzy Negative Ideal Solution ( FNIS). Table 10.4 presents the
closeness coefficient and Table 10.5 presents the final ranking of workforce
attributes.
Based on the computations, the top prioritized workforce dimensions
include “flexibility and adaptability to changing trends”, “willingness to take
up new opportunities”, and “intrepreneuring skills”. The analysis enables orga-
nizations to prioritize and analyze workforce attributes.
10.4 SUMMARY
This chapter presents the need and scope for lean and Industry 4.0 integra-
tion. Insights for integration from theoretical and practical perspectives have
been discussed. The analysis of workforce attributes for integrated lean and
Industry 4.0 have been illustrated using an Multi Criteria Decision Making
(MCDM)
tool.
TABLE 10.1 Expert Input Showing the Relationship of Workforce Attributes with Respect to Criterion
MANAGEMENT CONTINUOUS TECHNOLOGY PROCESS VALUE
CRITERIA COMMITMENT IMPROVEMENT COMPETENCE VERSATILITY ENHANCEMENT
E1 E2 E3 E1 E2 E3 E1 E2 E3 E1 E2 E3 E1 E2 E3
Weight H VH H H H H H MH H MH H H H H H
Highly skilled workforce G MG MG G MG G G MG MG MG G MG G MG F
Good problem-solving
MG F MG MG G G G MG G G MG G MG G G
ability
Dedication and loyalty G MG G G MG G MG G F MG G G G MG G
Achievement-oriented
G G MG F MG MG G MG G G MG G G MG G
and positive attitude
Alignment with MG F MG G F MG MG G G MG G MG MG G G
organization goals
Willingness to take up MG MG G MG G MG G MG G G F MG G MG F
new opportunities
Intrepreneuring skills G MG G F MG G MG G MG MG G F F MG G
Learning aptitude MG G G G MG G G MG G G VG G G MG G
Coordination and G MG G MG G MG F MG MG MG G F F G MG
networking ability
Competitive spirit to deal MG G MG G MG G G VG G G MG G G MG G
with challenges
Ability to work in G MG G F G MG MG G G G MG G G F MG
multifunctional teams
10 • Lean Integration with Industry 4.0
Flexibility and adaptability G MG MG G MG G G MG G G MG F G VG G

to changing trends
99
100
TABLE 10.2 Excerpt of a Fuzzy Decision Matrix

CRITERIA MANAGEMENT COMMITMENT CONTINUOUS IMPROVEMENT
E1 E2 E3 E1 E2 E3
Weight (0.7, 0.9, 1) (0.9, 1, 1) (0.7, 0.9, 1) (0.7, 0.9, 1) (0.7, 0.9, 1) (0.7, 0.9, 1)
Lean Manufacturing
Highly skilled workforce (7, 9, 10) (5, 7, 9) (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10)
Good problem-solving ability (5, 7, 9) (3, 5, 7) (5, 7, 9) (5, 7, 9) (7, 9, 10) (7, 9, 10)
Dedication and loyalty (7, 9, 10) (5, 7, 9) (7, 9, 10) (7, 9, 10) (5, 7, 9) (7, 9, 10)
Achievement-oriented and positive attitude (7, 9, 10) (7, 9, 10) (5, 7, 9) (3, 5, 7) (5, 7, 9) (5, 7, 9)
Alignment with organization goals (5, 7, 9) (3, 5, 7) (5, 7, 9) (7, 9, 10) (3, 5, 7) (5, 7, 9)
Willingness to take up new opportunities (5, 7, 9) (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10) (5, 7, 9)
Intrepreneuring skills (7, 9, 10) (5, 7, 9) (7, 9, 10) (3, 5, 7) (5, 7, 9) (7, 9, 10)
Learning aptitude (5, 7, 9) (7, 9, 10) (7, 9, 10) (7, 9, 10) (5, 7, 9) (7, 9, 10)
Coordination and networking ability (7, 9, 10) (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10) (5, 7, 9)
Competitive spirit to deal with challenges (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10)
Ability to work in multifunctional teams (7, 9, 10) (5, 7, 9) (7, 9, 10) (3, 5, 7) (7, 9, 10) (5, 7, 9)
Flexibility and adaptability to changing (7, 9, 10) (5, 7, 9) (5, 7, 9) (7, 9, 10) (5, 7, 9) (7, 9, 10)
trends
TABLE 10.3 Weighted Normalized and FPIS and FNIS
MANAGEMENT CONTINUOUS TECHNOLOGY PROCESS VALUE
CRITERIA COMMITMENT IMPROVEMENT COMPETENCE VERSATILITY ENHANCEMENT
Highly skilled workforce (0.35, 0.72, 1) (0.35, 0.75, 1) (0.25, 0.64, 1) (0.5, 1.08, 2) (0.21, 0.63, 1)
Good problem-solving ability (0.21, 0.59, 0.9) (0.35, 0.75, 1) (0.25, 0.69, 1) (0.5, 1, 2) (0.35, 0.75, 1)
Dedication and loyalty (0.35, 0.77, 1) (0.35, 0.75, 1) (0.15, 0.58, 1) (0.5, 1, 2) (0.35, 0.75, 1)
Achievement-oriented and positive (0.35, 0.77, 1) (0.21, 0.57, 0.9) (0.25, 0.69, 1) (0.5, 1, 2) (0.35, 0.75, 1)
attitude
Alignment with organization goals (0.21, 0.59, 0.9) (0.21, 0.63, 1) (0.25, 0.69, 1) (0.5, 1.08, 2) (0.35, 0.75, 1)
Willingness to take up new (0.35, 0.72, 1) (0.35, 0.69, 1) (0.25, 0.69, 1) (0.5, 1.19, 3.33) (0.21, 0.63, 1)
opportunities
Intrepreneuring skills (0.35, 0.77, 1) (0.21, 0.63, 1) (0.25, 0.64, 1) (0.5, 1.19, 3.33) (0.21, 0.63, 1)
Learning aptitude (0.35, 0.77, 1) (0.35, 0.75, 1) (0.25, 0.69, 1) (0.5, 0.89, 1.43) (0.35, 0.75, 1)
Coordination and networking ability (0.35, 0.77, 1) (0.35, 0.69, 1) (0.15, 0.52, 0.9) (0.5, 1.19, 3.33) (0.21, 0.63, 1)
Competitive spirit to deal with (0.35, 0.72, 1) (0.35, 0.75, 1) (0.35, 0.77, 1) (0.5, 1, 2) (0.35, 0.75, 1)
challenges
Ability to work in multifunctional (0.35, 0.77, 1) (0.21, 0.63, 1) (0.25, 0.69, 1) (0.5, 1, 2) (0.21, 0.63, 1)
teams
Flexibility and adaptability to (0.35, 0.72, 1) (0.35, 0.75, 1) (0.25, 0.69, 1) (0.5, 1.19, 3.33) (0.49, 0.84, 1)
changing trends
FPIS (0.35, 0.77, 1) (0.35, 0.75, 1) (0.35, 0.77, 1) (0.5, 1.19, 3.33) (0.49, 0.84, 1)
10 • Lean Integration with Industry 4.0
FNIS (0.21, 0.59, 0.9) (0.21, 0.57, 0.9) (0.15, 0.52, 0.9) (0.5, 0.89, 1.43) (0.21, 0.63, 1)
101
TABLE 10.4 Distance from Each Alternative to the FPIS and to FNIS and
Closeness Coefficient
CRITERIA d+ d− CC
Highly skilled workforce 1.096 0.722 0.397
Good problem-solving ability 1.089 0.713 0.396
Dedication and loyalty 1.031 0.796 0.436
Achievement-oriented and positive attitude 1.089 0.713 0.396
Alignment with organization goals 1.191 0.648 0.352
Willingness to take up new opportunities 0.34 1.484 0.814
Intrepreneuring skills 0.403 1.429 0.78
Learning aptitude 1.281 0.522 0.29
Coordination and networking ability 0.43 1.375 0.762
Competitive spirit to deal with challenges 0.901 0.904 0.501
Ability to work in multifunctional teams 1.158 0.674 0.368
Flexibility and adaptability to changing trends 0.103 1.709 0.943
TABLE 10.5 Final Ranking of Workforce Dimensions

WORKFORCE DIMENSIONS CC RANK
Flexibility and adaptability to changing trends 0.943 1
Willingness to take up new opportunities 0.814 2
Intrepreneuring skills 0.78 3
Coordination and networking ability 0.762 4
Competitive spirit to deal with challenges 0.501 5
Dedication and loyalty 0.436 6
Achievement-oriented and positive attitude 0.397 7
Good problem-solving ability 0.396 8
Highly skilled workforce 0.396 9
Ability to work in multifunctional teams 0.368 10
Alignment with organization goals 0.352 11
Learning aptitude 0.29 12
REFERENCES
Dombrowski, U., Richter, T., and Krenkel, P. (2017), ‘Interdependencies of Industrie
4.0 & lean production systems – a use cases analysis’, 27th International
Conference on Flexible Automation and Intelligent Manufacturing, FAIM2017,
27–30 June 2017, Modena, Italy, Procedia Manufacturing 11, 1061–1068.
10 • Lean Integration with Industry 4.0 103
Leyh, C., Martin, S., and Schäffer, T. (2017), ‘Industry 4.0 and lean production – a
matching relationship? An analysis of selected Industry 4.0 models’, Proceedings
of the Federated Conference on Computer Science and Information Systems, 11,
989–993, DOI: 10.15439/2017F365
Sanders, A., Elangeswaran, C., and Wulfsberg, J. (2016), ‘Industry 4.0 implies lean
manufacturing: research activities in industry 4.0 function as enablers for lean
manufacturing’, Journal of Industrial Engineering and Management JIEM, 9:3,
811–833, DOI: 10.3926/jiem.1940
Tortorella, G.L., and Fettermann, D. (2017), ‘Implementation of industry 4.0 and lean
production in Brazilian manufacturing companies’, International Journal of
Production Research, 56:8, 2975–2987, DOI: 10.1080/00207543.2017.1391420
Wagner, T., Hermann, C., and Thiede, S. (2017), ‘Industry 4.0 impacts on lean produc-
tion systems’, Proceedings of the 50th Conference on Manufacturing Systems,
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Research
Issues in Lean
Manufacturing
11
11.1 APPLICATION DOMAINS
IN LEAN MANUFACTURING
Lean manufacturing has diverse industrial applications as presented in Table 11.1.
With reference to Table 11.1, the majority of lean applications are in flow
line type industries. Studies on non-flow-type industries are found to be limited.
11.2 RESEARCH AVENUES IN

LEAN MANUFACTURING
Research avenues are presented based on the following perspectives:
11.2.1 Lean Tools
Lean tools can be developed based on industrial trends and developments.
Advanced variants of basic tools (5S, Total Productive Maintenance (TPM),
Value Stream Mapping (VSM), workcell) can also be developed. Hybrid lean
tools (combination of primary and secondary tools) can be experimented with.
Most real industrial problems require the application of hybrid tools. Lean
tools can be test implemented in diverse organizations. They can be developed
from the viewpoint of Industry 4.0.
DOI: 10.1201/9781003190332-11 105

TABLE 11.1 Various Application Domains of Lean Manufacturing

REFERENCES DOMAIN
Singh and Singh (2013) Automobile manufacturing industry
Choomlucksana et al. (2015) Sheet metal manufacturing industry
Nallusamy (2015)
Manufacturing of gear shaft
Karim and Rahman (2012) Garments industry
Kishore Kumar et al. (2014) Manufacturing of hydraulic cylinders
Das et al. (2014) Air conditioning coil manufacturing
Rahani and al-Ashraf (2012) Automotive part manufacturing plant
Sivaraman et al. (2020) Automotive engine assembly
Banga et al. (2020) Sheet metal parts manufacturing
Unal and Bilget (2021) Apparel industry
Bhadu et al. (2021) Ceramic industries
Rifqi et al. (2021) Automotive industry
Aadithya et al. (2021) Heavy fabrication industry
Muiambo et al. (2022) Pharmaceutical industry
Mathiyazhagan et al. (2022) Electrical and electronics industry
Susanty et al. (2022) Wooden furniture industry
Ayinla et al. (2022) Construction industry
Jimenez-Montejo et al. (2022)
Small- and medium-sized musical product
businesses
11.2.2 Modeling for Lean System

Barriers/factors/challenges analysis can be done based on structural modeling
approaches (Interpretive Structural Modelling (ISM)). Such structural models
facilitate the identification of significant factors.
Statistical modeling linked with performance can be developed based on
the Structural Equation Modeling (SEM) approach. Such linkage models would
enable the study of interlinks among factors and performance dimensions.
System dynamics models can be developed for lean systems in terms of
developing causal relationships among variables.
11.2.3 Lean Six Sigma

Lean integration with Six Sigma can be done by developing LSS frameworks.
The LSS framework can be developed from the viewpoint of integrating lean
tools with Industry 4.0 technologies such as Internet of Things (IoT) and
11 • Research Issues in Lean Manufacturing 107
11.2.4 Performance Measurement
Performance measures should be identified for advanced lean systems from
several perspectives. Appropriate solution methods should be adopted for deal-
ing with vagueness and uncertainty associated with data. Grey/fuzzy methods
should be applied. Decision support/software support can be developed for
performance measurement.
11.2.5 Project Selection
Project selection in the context of a lean system involves selecting the best
alternative. The best project has to be selected based on the analysis of critical
parameters. In general, project selection is formulated as a decision-making
problem and solutions are derived. The project selected must be critical from
the viewpoint of lean implementation.
11.2.6 Lean Sustainability
Lean tools should be extended in the context of sustainability as the ninth lean
waste is environmental wastes, which implies lean has scope for dealing with
sustainability aspects.
11.2.7 Lean in the Context of Digital

and Smart Manufacturing
As lean has scope for integration with digital and smart manufacturing, lean
concepts need to be integrated with Industry 4.0 technologies such as IoT,
CPS, Augmented Reality (AR), and so on.
11.2.8 Statistical Modeling
Statistical validation of lean manufacturing implementation can be corre-
lated with performance measures and the developed model can be validated
using SEM. Appropriate SEM approaches (Partial Least Square (PLS) or

covariance)can be applied.
11.3 SUMMARY
This chapter presents application domains of lean manufacturing. Research
avenues of lean manufacturing from different perspectives such as tools/
techniques, modeling, performance measurement have been discussed.
REFERENCES
Aadithya, B.G., Asokan, P., and Vinodh, S. (2021), ‘Application of interpretive structural
modelling for analysis of lean adoption barriers in heavy industry’, International
Journal of Lean Six Sigma, 12:2, 450–475, DOI: 10.1108/IJLSS-07-2019-0083
Ayinla, K., Cheung, F., and Skitmore, M. (2022), ‘Process waste analysis for offsite pro-
duction methods for house construction: a case study of factory wall panel produc-
tion’, Journal of Construction Engineering and Management, 148:1, 05021011.
Banga, H.K., Kumar, R., Kumar, P., Purohit, A., Kumar, H., and Singh, K. (2020),
‘Productivity improvement in manufacturing industry by lean tool’, Materials
Today: Proceedings, 28:3, 1788–1794.
Bhadu, J., Singh, D., and Bhamu, J. (2021), ‘Analysis of lean implementation barri-
ers in Indian ceramic industries: modeling through an interpretive ranking pro-
cess’, International Journal of Productivity and Performance Management, DOI:
10.1108/IJPPM-10-2020-0540
Choomlucksana, J., Ongsaranakorn, M., and Suksabai, P. (2015), ‘Improving the pro-
ductivity of sheet metal stamping subassembly area using the application of lean
manufacturing principles’, Procedia Manufacturing, 2, 102–107.
Das, B., Venkatadri, U., and Pandey, P. (2014), ‘Applying lean manufacturing system to
improving productivity of airconditioning coil manufacturing’, The International
Journal of Advanced Manufacturing Technology, 71, 307–323.
Jimenez-Montejo, J., Llachua-Cereceda, D., Elias-Giordano, C., and Raymundo, C.
(2022), ‘Lean manufacturing model for production management under design
thinking approach to increase productivity of musical instrument SMEs’, in T.
Ahram, R. Taiar (eds.), Human Interaction, Emerging Technologies and Future
Systems V. IHIET 2021. Lecture Notes in Networks and Systems, vol. 319.
Springer, Cham, DOI: 10.1007/978-3-030-85540-6_83
Karim, R., and Rahman, C.M.L. (2012), ‘Application of lean manufacturing tools
for performance analysis: a case study’, Proceedings of the 2012 International
Conference on Industrial Engineering and Operations Management Istanbul,
Turkey, July 3–6, 2012, DOI: 10.13140/2.1.3717.8560.
11 • Research Issues in Lean Manufacturing 109
Kishore Kumar, M., John Rajan, A., Navas, R.K.B., and Rubinson, S.S. (2014),
‘Application of lean manufacturing in mass production system: a case study
in Indian manufacturing unit’, Proceedings of the 2014 IEEE International
Conference on Industrial Engineering and Engineering Management, DOI:
10.1109/IEEM.2014.7058729
Mathiyazhagan, K., Gnanavelbabu, A., Naveen Kumar, N., and Agarwal, V. (2022), ‘A
framework for implementing sustainable lean manufacturing in the electrical and
electronics component manufacturing industry: an emerging economies country
perspective’. Journal of Cleaner Production, 334, 130169.
Muiambo, C.C.E., Joao, I.M., and Navas, H.V.G. (2022), ‘Lean waste assess-
ment in a laboratory for training chemical analysts for the pharmaceuti-
cal industry’, International Journal of Lean Six Sigma, 13:1, 178–202, DOI:
10.1108/IJLSS-11-2020-0184
Nallusamy, S. (2015), ‘Lean manufacturing implementation in a gear shaft manufactur-
ing company using value stream mapping’, International Journal of Engineering
Research in Africa, 21, 231–237.
Singh, H., and Singh, A. (2013), ‘Application of lean manufacturing using value
stream mapping in an auto-parts manufacturing unit’, Journal of Advances in
Management Research, 10:1, 72–84.
Sivaraman, P., Nithyanandhan, T., Lakshminarasimhan, S., Manikandan, S., and
Mohamad, S. (2020), ‘Productivity enhancement in engine assembly using lean
tools and techniques’, Materials Today: Proceedings, 33:1, 201–207.
Rahani, A.R., and al-Ashraf, M. (2012), ‘Production flow analysis through value stream
mapping: a lean manufacturing process case study’, Procedia Engineering, 41,
1727–1734.
Rifqi, H., Zamma, A., Souda, S.B., and Hansali, M. (2021), ‘Lean manufacturing imple-
mentation through DMAIC approach: a case study in the automotive industry’.
Quality Innovation Prosperity, 25:2, 54–77.
Susanty, A., Sumiyati, L.S., Syaiful, S., and Nihlah, Z. (2022), ‘The impact of lean
manufacturing practices on operational and business performances at SMES in
the wooden furniture industry’, International Journal of Lean Six Sigma, 13:1,
203–231, DOI: 10.1108/IJLSS-08-2020-0124
Ünal, C., and Bilget, S. (2021), ‘Examination of lean manufacturing systems by simu-
lation technique in apparel industry’, The Journal of the Textile Institute, 112:3,
377–387.
Index
adaptability 98–102 customer demand 1, 2, 3, 7, 14–15, 36–37, 43,
agile manufacturing 92–94 53, 56, 68, 93–94
agile system 1, 2, 92 ,93 customer preferences 92
agility 93 customer requirements 7, 14, 15, 34, 37, 93
amalgamation 92, 95–97 customer value 3, 13, 14
ANFIS 87, 89–90 customer value added 14
assembly lines 1, 4 customer viewpoint 2, 7
assessment 72, 73, 75–80, 82, 83, 87, customized manufacturing 92
89–90, 93 Cyber Physical Systems 107
auditing 23 cycle time 35–38, 42, 43, 54, 71
augmented reality 30, 97, 107
automatic 53 defect reduction 91–92
automotive 45, 106 defects 8–9, 10–11, 24–26, 28, 52, 72, 77, 79,
autonomous maintenance 25, 26, 27 81, 85, 91
availability 25, 27–30 delivery 4, 7, 10
available time 28, 35–36 detailed process map 34
dimensions 10, 71, 74, 75, 83, 87, 93, 94, 96,
basic tools 19, 20, 43, 105 98, 106
bottlenecks 14, 16, 17, 37, 53, 55 discipline 19, 22, 54
business value added 14 DMADV 91
DMAIC 91
DoE 92
centroid 83 downtime 14, 25, 27–28
CFT 21, 43
changeover time 35, 36, 38–39, 54, 71
check points 21 ecommerce 93
cleanliness 20, 25, 39 economical manufacture 3
closeness coefficient 44, 45, 64, 67, 98 economies of scale 1, 3, 4
communication boards 22 education and training 26–27
competitive performance 3 effectiveness 16, 24–25, 28–29, 39, 72, 97
consistency 16, 22, 68 efficiency 4, 16, 24, 25, 28, 29, 40, 54, 96
construction 37, 106 environmental impact 9, 26, 30, 40, 94
continuous flow 2, 37 environmental management 26, 30
continuous improvement 2, 3, 10, 13, 22, 54, environmental waste 9, 93
59, 98 Ergo VSM 40
control charts 92 ERP 56
cost 1, 3, 4, 5, 10, 13, 14, 29, 33, 44, 52, 54, euclidean distance 44, 74, 82, 86
67, 68, 95 eVSM 40, 41, 45
cost savings 67–68 expert driven improvement 5
craft system 1, 2 expert opinion 45, 61, 97
creative skills 8
culture 4, 10, 20 fabrication 106
current state map 37, 38 FGI 15, 35, 38
111
112 Index
flexibility 1, 4, 54, 92, 98 multi Grade Fuzzy 73, 75, 89

fluctuations 3, 8, 16 mura 8, 11, 55
FMEA 92 muri 8, 11, 55
FPII 74, 83, 86
framework 106 non value added activities 56OEE 25, 27, 28,
FTA 92 29, 30, 39, 97
future state map 38
fuzzy logic 74, 78, 87, 89
office TPM 26, 27
Optimized Production Technology 55
government regulations 15 orderliness 21
organized workplace 11, 19, 20
Heijunka 55, 56 over processing 8–9
high level process map 33 overproduction 8–9
histogram 92
PDCA 10, 11
implementation plan 23, 29–30, 40, 45 performance measures 71, 89, 107
Industrial IoT 30 performance rate 27
Industry 4.0 30, 95–98 pilot area 23, 24, 29
innovative culture 4 Poka Yoke 11, 51, 52, 56, 92, 97
instruction card 52 predictive maintenance 25
intrepreneuring skills 98 primary tools 19, 51
inventory reduction 2, 17, 43 prioritization 40, 60
IoT 30, 53, 97, 106, 107 process attributes 34, 35, 38
ISM 106 process boundaries 33
process flexibility 4, 54, 92
process mapping 33
Just In Case 4
process quality management 26–27
Just In Time 2, 15, 51, 92, 96
process speed 2
process steps 16, 33, 34
Kaizen 2, 3, 10, 11, 68, 72, 92 procurement VSM 39
Kanban 51–53, 56, 97 product family 34
product flexibility 92
layout 10, 14, 42 production control 43
lead time 35, 36, 38, 39, 54, 55, 71 Production Flow Analysis 42
lean automation 95–96 production Kanban 53
lean capability 74 production volume 8
leanness 71–76, 78, 79, 82–83, 87, 89–90 productivity 14, 24, 29, 43, 54, 93
Lean Six Sigma 91, 94, 106–107 product lines 1, 34, 61
lean sustainability 93, 107 product value 2, 7, 13
lean system 1–4, 5, 7, 13, 16, 17, 19, 53, 54, profitability 11, 55, 93
92, 96, 106, 107 project charter 67
line balancing 37, 42 project selection 59, 60, 61, 68, 91, 107
pull system 1, 3, 7, 14, 15, 37, 55, 56, 68
manufacturing system 3, 5, 52, 93

mass customization 1, 95 Quality Function Deployment 92
mass system 2, 4, 5 quick partnership 93
MCDM 43, 59–60, 68, 98
membership function 83, 87 radar chart 22, 23, 97
motion 8, 9 rapid prototyping 93
muda 8, 11 red tag 21, 23
Index 113
regression analysis 92 statistical validation 107

reliability 26 streamlined processes 1, 3, 43, 92
RMI 15, 35, 38 supporting tools 51, 56
rule viewer 89 sustain 19–20, 22–23, 71
sustainable system 1, 2
safety 10, 19, 22, 24, 26, 27, 30 sustainable VSM 40, 93
scheduled maintenance 29 synchronization 8
SDCA 10
secondary tools 51, 56, 105 takt time 36, 37, 43
Seiketsu 19–21, 23–24 timeline 34, 35, 38, 67
Seiri 19–21, 23–24 top management 28, 29
Seiso 19–21, 23–24 TOPSIS 44, 61, 64, 98
Seiton 19–21, 23–24 Toyota Production System 2, 96
SEM 106, 108 TQM 24
set in order 19–21, 23 training schedule 67
setup time 8, 25, 28, 42, 54 transportation 8, 9, 23, 53
shadow board 21–22 triple bottom line 1, 93
shift time 27, 28, 36
shine 19–21, 23 uptime 35–36
Shitsuke 19–21, 23–24
signals 53
single piece flow 16, 37 value added activities 14, 56
SIPOC cycle 34, 35, 38 value chain 95
Six Sigma 91–92, 94, 106, 107 value creation 13–14
smart factory 1, 93 value flow 3, 13, 14, 17, 34
smart manufacturing 95, 107 Value Stream Mapping 19, 33, 51,
smart operator 97 92, 105
smart system 1, 2 variations 3, 16, 26, 42
SME 24, 30 visual communication 16, 51, 53, 56
SMED 39, 51, 54, 56 visual control 16, 20
smooth 3, 8, 14 visual inspection 42
sort 19–20, 23 visual management 16, 17, 53
SPC 92 volume 1, 5, 8
speedy 3
spider chart 23, 97 waiting 8, 9, 37, 68
stability 16, 17, 97 waste elimination 1, 3, 4, 11, 91–93
Standard Instructions 16, 68 workcell 19, 33, 42, 43, 45, 92, 105
standardization 3, 10, 16, 29, 43, 68 worker driven improvement 5
standardize 10, 19–20, 22, 23 workforce attributes 93, 98
standardized work 8, 16, 17, 56 workforce skillset 1
Standard Operating Procedures 16, 23, 68 workplace organization 19

S. Vinodh - Lean Manufacturing - Fundamentals, Tools, Approaches, and Industry 4.0 Integration-CRC - Focal Press (2022)

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S. Vinodh - Lean Manufacturing - Fundamentals, Tools, Approaches, and Industry 4.0 Integration-CRC - Focal Press (2022)

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Lean Manufacturing

Lean Manufacturing concepts are being applied to a variety of industries.

First edition published 2023

and by CRC Press

CRC Press is an imprint of Taylor & Francis Group, LLC

© 2023 Taylor & Francis Group, LLC

Trademark notice: Product or corporate names may be trademarks or registered trademarks

ISBN: ­978-­1- ­032- ­0 4045-5 (­hbk)

2 Lean Principles and Waste Categories 7

3 Elements of Lean Manufacturing 13

4 Basic Lean Tools (5S and TPM) 19

5 Basic Lean Tools ( VSM and Workcell) 33

6 Supporting Lean Tools and Concepts 51

7 Project Selection and Training for Lean Implementation 59

8 Lean Performance Measurement 71

9 Lean Integration with Other Strategies 91

10 Lean Integration with Industry 4.0 95

11 Research Issues in Lean Manufacturing 105

The book aims at addressing theoretical concepts of Lean Manufacturing with

• Comprehensive coverage of topics in Lean Manufacturing

• Case studies on Lean Manufacturing (value stream mapping, proj-

The book provides a description of concepts, supporting illustrations, exam-

Dr. S. Vinodh is an Associate Professor in the Department of Production

Mass System Agile System

Craft System Lean System Sustainable System

­FIGURE 1.1 Transition of Manufacturing rSystems

1.2 ORIGIN OF LEAN MANUFACTURING

1.3 DEFINITION AND CONCEPTS

1.3.1 Definitions of Lean Manufacturing

1.3.2 Concepts of Lean Manufacturing

enable pull production. A lean system aims at worker-driven CI in terms of

1.4 COMPARISON OF MASS AND

1.4.1 On Time Delivery

1.4.7 Production Method

• Customer perspective – Understanding customer requirements

• Streamlining of inventory – Inventory has to be reduced and stream-

2.2 MUDA, MURI, AND MURA

2.3 WASTE AND WASTE CATEGORIES

Overproduction – Producing more than what the customer has asked

­FIGURE 2.1 Waste Types

Underutilization of workforce creativity or the untapped creativity

­TABLE 2.1 Waste Analysis

Multiple handling Transportation 10

2.4 WASTE ANALYSIS

• 5 Why technique – To identify the root cause of problem

Kaizen enables the organization-wide process of focused and sustained incre-

3.2 DISCUSSION ON ELEMENTS

­FIGURE 3.1 Elements of Lean Manufacturing

ensured in a value stream. In contrast, in a process stream, which happens in

I. Customer ­Value-Added (CVA)

The objective is to maximize value-added activities. A product manufactured

3.3 ACTIVITY CATEGORIZATION

1 CVA – These activities are done for fulfilling customer require-

3.4 PUSH AND PULL

3.5 STABILITY, STANDARDIZED WORK,

3.6 VISUAL MANAGEMENT AND

uncover hidden issues and promote system transparency. Visual management

4.1 5S LEAN TOOL

VSM Work Cell

­FIGURE 4.1 Basic Lean Tools

Set in order – It enables orderly positioning of items for ease of convenient

4.1.2 Description of the 5S Lean Tool

­FIGURE 4.2 Scheme of 5S

ISBN: 978-1- 032- 0 4045-5 (hbk)

FIGURE 1.1 Transition of Manufacturing rSystems

FIGURE 2.1 Waste Types

TABLE 2.1 Waste Analysis

FIGURE 3.1 Elements of Lean Manufacturing

I. Customer Value-Added (CVA)

FIGURE 4.1 Basic Lean Tools

FIGURE 4.2 Scheme of 5S

FIGURE 4.3 Shadow Board Sketch

FIGURE 4.4 Eight Pillars of TPM

FIGURE 5.1 Format of VSM

FIGURE 5.2 Current State Map

FIGURE 5.3 Future State of VSM

Step#4: Constructing a weighted normalized matrix (W)

TABLE 7.1 Project Selection Criteria