The Lean Toolbox, Sixth edition

John Bicheno and Matthias Holweg

PICSIE Books, Buckingham, 2023

1 HOW TO USE THIS BOOK............................1
PHILOSOPHY, MINDSET & SCIENCE OF LEAN....2
2 THE LEAN PHILOSOPHY..............................2
2.1 WHAT IS LEAN?...................................2
2.2 WHERE DOES LEAN COME FROM?...........2
2.3 WHY DO WE CALL IT ‘LEAN’?.................4
2.4 BEWARE OF A ‘TOOL MINDSET’...............6
2.5 WHERE TO START YOUR LEAN TRANSFORMATION 7
3 THE LEAN MINDSET..................................10
3.1 THE ‘IDEAL WAY’, ‘TRUE NORTH’, AND PURPOSE 10
3.2 THE FIVE LEAN PRINCIPLES..................10
3.3 SYNOPSIS: THE 25 PRINCIPLES OF LEAN. 12
3.4 VALUE AND WASTE............................15
3.5 THE ORIGINAL SEVEN WASTES.............16
3.6 THE NEW WASTES.............................19
3.7 LEAN SERVICE....................................21
3.8 THE 3MS: MUDA, MURA AND MURI....23
3.9 LEARNING: THE PDCA OR PDSA CYCLE.23
3.10 THE TOYOTA WAY.............................24
3.11 THE DNA OF TPS..............................25
3.12 LEAN AND ENVIRONMENTAL SUSTAINABILITY 27
3.13 LEAN AND DIGITAL TECHNOLOGIES........29
4 THE SCIENCE OF LEAN..............................31
4.1 KEY DEFINITIONS................................31
4.2 THE KINGMAN EQUATION AND SCHEDULING DYNAMICS 32
4.3 LITTLE’S LAW....................................36
4.4 PARETO AND THE 80/20 RULE.............37
4.5 BUFFERS...........................................40
4.6 INVENTORY TRADE-OFF CURVES...........41
4.7 SCIENTIFIC METHOD AND EXPERIMENTATION 43
4.8 BIAS AND SYSTEM1/SYSTEM2 THINKING 44
4.9 VOLATILITY, VUCA AND CYNEFIN®.......45
ORGANISING FOR FLOW................................50
5 RESPECT AND HUMILITY...........................50
5.1 RESPECT...........................................50
5.2 HUMILITY.........................................50
6 GEMBA....................................................52
6.1 GEMBA AND GENCHI GENBUTSU...........52
6.2 GEMBA WALKS..................................52
6.3 RESPECT AND HUMILITY AT TOYOTA SA: A MINI CASE 54
7 QUESTIONING AND LISTENING.................55
8 PSYCHOLOGICAL SAFETY..........................57
8.1 MISTAKES AND IMPROVEMENT.............57
 8.2 IMPROVING PSYCHOLOGICAL SAFETY......57
9 LEADING AND MENTORING......................59
9.1 LEADER STANDARD WORK...................59
9.2 LEAN COACHING AND MENTORING.......59
9.3 A NOTE ON INTERVENTION THEORY AND CHANGE 61
10 SOCIO TECHNICAL SYSTEMS.....................62
10.1 THE SYSTEMS CONCEPT.......................62
10.2 LEAN ORGANISATION AND SYSTEMS THINKING 63
11 THE JOB CHARACTERISTICS MODEL..........66
11.1 CORE JOB CHARACTERISTICS.................66
11.2 CRITICISMS AND EXTENSIONS OF JCM. . .68
12 MANAGING THE CHANGE PROCESS..........70
12.1 LEWIN’S CHANGE MODELS..................70
12.2 THE CHANGE ICEBERG.........................71
12.3 VALUE STREAM MAPPING AS CHANGE CATALYST 71
12.4 COMMON PROBLEMS WITH CHANGE PROGRAMMES 72
13 ENGAGEMENT.........................................74
13.1 THE CATHEDRAL MODEL OF ENGAGEMENT75
13.2 THE ADOPTION CURVE AND KEY PEOPLE 76
PREPARING FOR FLOW..................................78
14 5S............................................................78
14.1 SORT...............................................79
14.2 SIMPLIFY (OR SET-IN-ORDER OR STRAIGHTEN) 79
14.3 SCAN (OR SWEEP OR SHINE OR SCRUB)..80
14.4 STANDARDISE (OR STABILIZE OR SECURE)80
14.5 SUSTAIN (OR SELF DISCIPLINE)..............80
14.6 SAFETY.............................................80
14.7 5S AS ROOT CAUSE............................80
14.8 5S AND SUSTAINING IMPROVEMENTS....81
14.9 EXTENDING THE 5S CONCEPT...............81
15 VISUAL MANAGEMENT............................82
15.1 CUMULATIVE FLOW DIAGRAMS............83
15.2 SINGLE POINT LESSONS.......................84
15.3 COMMUNICATIONS BOARD..................84
16 STANDARD WORK AND SOPS...................87
16.1 RACI CHARTS...................................90
16.2 WINDOW ANALYSIS AND STANDARDS....90
17 TRAINING WITHIN INDUSTRY...................92
17.1 JOB INSTRUCTION...............................92
17.2 JOB METHODS...................................93
17.3 JOB RELATIONS..................................93
17.4 JOB SAFETY.......................................93
18 TIME AND ACTIVITY.................................94
 18.1 TAKT TIME, PITCH TIME, PLANNED CYCLE TIME, AND CADENCE 94
18.2 ACTIVITY TIMING, ACTIVITY SAMPLING AND WORK ELEMENTS 95
19 CHANGEOVER REDUCTION (SMED)...........96
19.1 WHAT IS A CHANGEOVER?...................96
19.2 MAPPING THE CHANGEOVER PROCESS....96
20 QUALITY................................................100
20.1 UNDERSTANDING CUSTOMER NEEDS: THE KANO MODEL 100
20.2 A FRAMEWORK FOR LEAN QUALITY.....102
20.3 MISTAKES AND ERRORS.....................102
20.4 CHECKLISTS.....................................106
20.5 VARIATION AND SIX SIGMA................107
20.6 COMPLEXITY....................................111
21 TOTAL PRODUCTIVE MAINTENANCE.......114
21.1 OVERALL EQUIPMENT EFFECTIVENESS (OEE) 114
21.2 THE SIX BIG LOSSES..........................116
21.3 FOCUSING TPM ACTIVITIES...............116
21.4 WILLMOTT’S 11-STEP MODEL............117
21.5 SOME SPECIAL FEATURES OF TPM......118
22 LAYOUT, CELLS AND LINE BALANCE........120
22.1 GENERAL LAYOUT: GOOD AND NOT SO GOOD AT THE FACTORY LEVEL. 120
22.2 AREA LAYOUT..................................122
22.3 MATERIAL HANDING: GOOD AND NOT SO GOOD AT THE FACTORY LEVEL. 126
22.4 CELLS.............................................126
22.5 CELL OR LINE BALANCING..................128
22.6 CHAKU-CHAKU CELL OR LINE.............133
22.7 SERU CELLS.....................................133
22.8 VIRTUAL CELLS................................134
22.9 MOVING LINES AND PULSE LINES........135
22.10 ERGONOMICS..................................136
22.11 3P: PRODUCTION PREPARATION PROCESS137
CREATING FLOW.........................................140
23 MAPPING...............................................140
23.1 WHAT IS THE AIM OF MAPPING?........140
23.2 BEFORE YOU BEGIN MAPPING….........140
23.3 TYPES OF MAPS...............................141
23.4 ANALYSING MAPS: TOWARDS THE FUTURE STATE 154
23.5 SOME WARNINGS ABOUT MAPPING.....157
23.6 VALUE STREAM MAPPING IN A DIGITAL AGE 159
24 DEMAND ANALYSIS AND VARIATION......161
24.1 LEVEL AND CHASE DEMAND...............161
24.2 REDUCING UNNECESSARY DEMAND AND DEMAND VARIATION 162
24.3 DEMAND ANALYSIS..........................163
24.4 COMBINING VOLUME ANALYSIS WITH DEMAND PATTERNS 165
24.5 SCHEDULING WITH CATEGORIZATION AND PLATEAUS 166
 24.6 INVENTORY CONTROL OF PARTS ABC AND RRS 167
24.7 PART LEVELLING..............................168
25 SCHEDULING: GENERAL POINTS.............170
25.1 IDENTIFYING STABLE AND UNSTABLE ZONES170
25.2 DIFFERENT PROCESSES REQUIRE DIFFERENT APPROACHES TO SCHEDULING 172
25.3 BASICS OF LEAN SCHEDULING.............173
25.4 ON MRP AND ERP..........................174
25.5 MASTER SCHEDULING AND FINAL ASSEMBLY SCHEDULING 175
25.6 SALES AND OPERATIONS PLANNING (S&OP) 175
25.7 CONSTRAINTS AND THEORY OF CONSTRAINTS 176
25.8 THE BUILDING BLOCKS......................183
26 PULL SYSTEMS........................................187
26.1 KANBAN.........................................188
26.2 CONWIP.......................................195
26.3 DRUM BUFFER ROPE (DBR)..............196
26.4 POLCA..........................................197
26.5 DEMAND DRIVEN MRP (DDMRP).....198
26.6 COMPARING KANBAN, DBR, CONWIP, POLCA AND DDMR 199
27 SCHEDULING LINE PROCESSES................201
27.1 THE LEVEL SCHEDULE........................201
27.2 THE TEN VALUE STREAM SCHEDULING CONCEPTS 201
27.3 APPLYING REPETITIVE SCHEDULING......210
28 SCHEDULING BATCH PROCESSES............213
28.1 BATCH SIZING.................................213
28.2 TWO APPROACHES TO BATCH SIZING...214
28.3 THE EVERY PRODUCT EVERY (EPE) CONCEPT 216
28.4 SPECIAL BATCH SIZE CONSIDERATIONS. 218
29 CREATING THE LEAN SUPPLY CHAIN.......220
29.1 WHAT IS SUPPLY CHAIN MANAGEMENT?220
29.2 UNCERTAINTY AND THE BULLWHIP EFFECT223
29.3 MANAGING SUPPLY CHAIN RISK.........226
29.4 MANAGING SUPPLIER RELATIONS........227
29.5 SUPPLY CHAIN COLLABORATION..........232
29.6 LEAN LOGISTICS...............................233
IMPROVING FLOW......................................235
30 IMPROVEMENT......................................235
30.1 HOW TO GET STARTED......................235
30.2 LEAN, THE S-CURVE AND INNOVATION. 236
30.3 ORGANIZING FOR IMPROVEMENT........236
30.4 THE HIERARCHY OF IMPROVEMENT.....237
31 KAIZEN...................................................240
31.1 THE PHILOSOPHY OF KAIZEN..............240
31.2 THE KAIZEN FLAG.............................240
31.3 KAIZEN EVENTS................................241
 31.4 THE KAIZEN EVENT PROCESS..............241
31.5 RECORDING THE LESSONS..................243
32 PROBLEM SOLVING................................244
32.1 IMPROVEMENT TYPES.......................244
32.2 PASSIVE INCREMENTAL......................244
32.3 PASSIVE BREAKTHROUGH...................247
32.4 ENFORCED INCREMENTAL..................247
32.5 ENFORCED BREAKTHROUGH...............248
32.6 IMPROVEMENT CYCLES......................248
32.7 ROOT CAUSE PROBLEM SOLVING........250
32.8 5 WHYS AND FISHBONE....................251
32.9 A3 PROBLEM SOLVING.....................253
32.10 OODA LOOP..................................255
33 KATA......................................................257
33.1 TYPES OF KATA................................257
33.2 KATA AND HOSHIN...........................258
33.3 WIDER AREAS OF APPLICATION..........258
34 HOLDING THE GAINS..............................260
34.1 BACKSLIDING...................................260
34.2 THE FAILURE MODES OF LEAN IMPLEMENTATIONS 261
34.3 SUSTAINING IMPROVEMENTS..............265
34.4 KEEPING THE MOMENTUM................266
DESIGNING FOR FLOW.................................270
35 LEAN PRODUCT DEVELOPMENT..............270
35.1 FOUR OBJECTIVES AND SIX TRADE-OFFS271
35.2 WASTES IN NEW PRODUCT DEVELOPMENT272
35.3 TOYOTA’S APPROACH TO PRODUCT DEVELOPMENT 273
36 TOOLS FOR LEAN NPD............................277
36.1 DESIGN THINKING............................277
36.2 PHASE GATES..................................280
36.3 OBEYA...........................................280
36.4 QUALITY FUNCTION DEVELOPMENT.....281
36.5 VALUE ENGINEERING AND VALUE METHODOLOGY 282
36.6 DESIGN FOR MANUFACTURE (DFM) AND DESIGN FOR ASSEMBLY (DFA) 284
36.7 MODULARITY AND PLATFORMS...........286
36.8 TRIZ.............................................287
37 AGILE DEVELOPMENT.............................289
37.1 THE IDEA OF AGILE DEVELOPMENT......289
37.2 THE AGILE MANIFESTO.....................289
37.3 SCRUM AND SPRINTS......................290
37.4 KANBAN IN SOFTWARE DEVELOPMENT, SERVICE AND NPD 290
37.5 LEAN SOFTWARE AND DEVOPS...........291
38 LEAN START-UP......................................292
MOTIVATING AND MEASURING FOR FLOW. 294
39 LEADING A LEAN ORGANISATION...........294
39.1 PEOPLE AND CHANGE IN LEAN............294
39.2 THE PEOPLE TRILOGY........................295
39.3 CREATING THE LEAN CULTURE............302
40 HOSHIN KANRI OR POLICY DEPLOYMENT304
40.1 THE HOSHIN PROCESS AND CATCHBALL 305
40.2 THE HOSHIN MATRIX........................305
41 MEASURING PERFORMANCE..................308
41.1 A GOOD MEASUREMENT SYSTEM.......308
41.2 OKRS............................................310
41.3 DEMING’S AND SHEWHART’S COUNSEL 310
41.4 THE BASIC LEAN MEASURES...............311
41.5 SHORT INTERVAL TRACKING AND CONTROL312
42 LEAN ACCOUNTING................................313
42.1 WARNINGS AND DILEMMAS...............313
42.2 THE BOX SCORE...............................316
42.3 TARGET COSTING, KAIZEN COSTING AND COST DOWN 316
42.4 SETTING UP A LEAN ACCOUNTING SYSTEM319
DIGITAL TOOLS FOR FLOW...........................321
43 MAKING SENSE OF THE DIGITAL TRANSFORMATION 321
43.1 AMARA’S LAW................................321
43.2 DIGITISATION OR DIGITALISATION?......322
44 THE DIGITAL TOOLBOX...........................324
44.1 INDUSTRY 4.0.................................324
44.2 AI AND MACHINE LEARNING..............324
44.3 PROCESS MINING.............................325
44.4 3D PRINTING OR ADDITIVE MANUFACTURING 326
44.5 INTERNET OF THINGS, RFID AND RLTS326
44.6 AUTONOMOUS VEHICLES...................327
44.7 AUGMENTED, MIXED AND VIRTUAL REALITY327
44.8 DIGITAL TWINS................................327
44.9 THE METAVERSE..............................327
44.10 CLOUD COMPUTING.........................327
44.11 QUANTUM COMPUTING....................327
45 WHAT’S NEXT?.......................................328
A LEAN CHRONOLOGY.................................329
ABBREVIATIONS..........................................333
INDEX..........................................................336