Lean manufacturing

 The Lean approach is based on finding efficiencies and removing wasteful steps that don't
add value to the end product. There's no need to reduce quality with lean manufacturing –
the cuts are a result of finding better, more efficient ways of accomplishing the same tasks.
 To find the efficiencies, lean manufacturing adopts a customer-value focus, asking "What
is the customer willing to pay for?" Customers want value, and they'll pay only if you can
meet their needs. They shouldn't pay for defects, or for the extra cost of having large
inventories. In other words, they shouldn't pay for your waste.
Waste is anything that doesn't add value to the end product. There are eight categories of waste that
you should monitor:
1. Overproduction – Are you producing more than consumers demand?
2. Waiting – How much lag time is there between production steps?
3. Inventory (work in progress) – Are your supply levels and work in progress inventories too high?
4. Transportation – Do you move materials efficiently?
5. Over-processing – Do you work on the product too many times, or otherwise work inefficiently?
6. Motion – Do people and equipment move between tasks efficiently?
7. Defects – How much time do you spend finding and fixing production mistakes?
8. Workforce – Do you use workers efficiently?
Lean Manufacturing Process

The process has three key stages:

Stage 1 – Identify Waste
According to the Lean philosophy, waste always exists, and no matter how good your process
is right now, it can always be better. This commitment to continuous improvement is needed.
One of the key tools used to find this waste is a Value Stream Map (VSM). This shows how
materials and processes flow through your organization to bring your product or service to the
consumer. It looks at how actions and departments are connected, and it highlights the waste.
As you analyze the VSM, you'll see the processes that add value and those that don't. You can
then create a "future state" VSM that includes as few non-value-adding activities as possible.
Lean Manufacturing Process

Stage 2 – Analyze the Waste, and Find the Root Cause

For each waste you identified in the first stage, figure out what's causing it by using Root
Cause Analysis . If a machine is constantly breaking down, you might think the problem is
mechanical and decide to purchase a new machine. But Root Cause Analysis could show that
the real problem is poorly trained operators who don't use the machine properly. Other
effective tools for finding a root cause include Brainstorming and Cause and Effect Diagrams .
Stage 3 – Solve the Root Cause, and Repeat the Cycle
Using an appropriate problem-solving process, decide what you must do to fix the issue to
create more efficiency.
Just-in-time (JIT) manufacturing

Just-in-time (JIT) manufacturing is a production model in which items

are created to meet demand, not created in surplus or in advance of
need. The purpose of JIT production is to avoid the waste associated
with overproduction, waiting and excess inventory, three of the seven
waste categories defined in the Toyota Production System (known in
North America as the lean production model).
Just-in-time (JIT) manufacturing

The JIT concept was described by Henry Ford in his 1923 book, My Life and Work:
We have found in buying materials that it is not worthwhile to buy for other than immediate
needs. We buy only enough to fit into the plan of production, taking into consideration the
state of transportation at the time. If transportation were perfect and an even flow of materials
could be assured, it would not be necessary to carry any stock whatsoever. The carloads of raw
materials would arrive on schedule and in the planned order and amounts, and go from the
railway cars into production. That would save a great deal of money, for it would give a very
rapid turnover and thus decrease the amount of money tied up in materials.