LEAN MANAGEMENT

BY: JOHN KRAFCIK- 1988

WHAT IS LEAN????
“ Eliminate Waste and provide Value”
 Lean- Set of “Tools”
Assists in identification and steady elimination
of waste.

Waste Quality
Production Time
Production Costs

Tools: Poka Yoke, TPM, SMED, 5S , TQM

etc.
 Lean- By Toyota- Flow

Smoothness of work steadily eliminating MURA

(Unevenness) and not upon waste reduction.

But it requires more persistence, so less popular

Ultimate goal is to have continuous

improvement with reduction in cost by
eliminating waste.
8 types of waste usually associated with Lean
Management.
1) Over-production
2) Inventory
3) Defects
4) Transportation
5) Motion
6) Waiting
7) Over processing
8) Incorrect use of staff
and their abilities
 Traditional Method Lean Thinking
Price
Price Price Price

Profit Profit

Cost Cost Cost Cost

Cost+ Profit= Price Price- Cost= Profit

 Cost Reduction Principle:

Customer focused

Customer demands Price reduction

So Elimination of Waste
 WANTS TO GET STARTED?
It is almost impossible to eliminate all waste, but by
setting a target of zero waste you can cut it to a minimum.
 The first step is to look at the entire business process.
You should involve your staff and draw on their
expertise.
Jot Down the value stream maps
Create your future steps.
Eliminate waste from value streams.
Implement lean tools and techniques.
 You might find it helpful to start with departmental
meetings, but it is essential to avoid a process of allocating
blame.
The objective is to identify the causes of problems and
solve them.
Finally improve productivity , work flow and train your
workforce.
 TEAMWORK
OBSERVE
ANALSYE THE CURRENT
SITUATION
ANALYZE THE CURRENT
SITUATION
COMMUNICATION
MAKE SURE EVERYONE KNOWS
THE GOALS, THE CHANGES
BEING MADE, THE SUCCESSES,
AND THE FAILURES.
IDEAS
Idea to Eliminate Waste
CULTURE
CREATE A CONTINOUS
IMPROVEMENT CULTURE.
ALWAYS CONSIDER NEW
IDEAS
 Why Lean Management???
In the light of economics slowdown, It has become very
important for organization to improve productivity ,response time
and to cut cost so that organization can stay competitive.

Challenges in lean Management

Lean management is not a rocket science it is totally depends on-

Change in Mindset of people,

culture issue,
top management clear vision.
Reluctance of empower people at the lower level and tunnel
vision at the top.
Fundamental issue challenging lean management in any
organization is the inertia to change.
 Lean six sigma

+ 6s = 6s

LEAN SIX SIGMA LEAN SIX SIGMA

Reduces waste by Reduces defects LEAN accelerates SIX
Streamlining process by SIGMA.
Effectively solving Solving problems &
Problems. improving processes is
faster & more efficient.
THANK YOU !!