LEAN MANUFACTURING

Lean manufacturing is a methodology that focuses on minimizing waste within manufacturing systems
while simultaneously maximizing productivity. Also known as lean production, or just lean, the
integrated socio- technical approach is based on the Toyota Production System and is still used by that
company, as well as myriad others, including Caterpillar Inc. and Nike. Lean manufacturing or lean
production, often simply "lean", is a systematic method for waste minimization ("Muda") within a
manufacturing system without sacrificing productivity, which can cause problems. Lean also takes into
account waste created through overburden ("Muri") and waste created through unevenness in
workloads ("Mura"). Working from the perspective of the client who consumes a product or service,
"value" is any action or process that a customer would be willing to pay for. Lean manufacturing makes
obvious what adds value, by reducing everything else (which is not adding value). This management
philosophy is derived mostly from the Toyota Production System (TPS) and identified as "lean" only in
the 1990s. TPS is renowned for its focus on reduction of the original Toyota seven wastes to improve
overall customer value, but there are varying perspectives on how this is best achieved. The steady
growth of Toyota, from a small company to the world's largest automaker, has focused attention on how
it has achieved this success.

A widely referenced book, Lean Thinking: Banish Waste and Create Wealth in Your Corporation, which
was published in 1996, laid out five principles of lean, which many in the field reference as core
principles. They are value, the value stream, flow, pull and perfection. These are now used as the basis
for lean implementation.

1. Identify value from the customer's perspective. Value is created by the producer, but it is defined
by the customer. In other words, companies need to understand the value the customer places on their
products and services, which, in turn, can help them determine how much money the customer is willing
to pay. The company must strive to eliminate waste and cost from its business processes so that the
customer's optimal price can be achieved at the highest profit to the company.

2. Map the value stream. This principle involves recording and analyzing the flow of information or
materials required to produce a specific product or service with the intent of identifying waste and
methods of improvement. The value stream encompasses the product's entire lifecycle, from raw
materials through to disposal. Companies must examine each stage of the cycle for waste -- or muda in
Japanese. Anything that does not add value must be eliminated. Lean thinking recommends supply
chain alignment as part of this effort.

3. Create flow. Eliminate functional barriers and identify ways to improve lead time to ensure the
processes are smooth from the time an order is received through to delivery. Flow is critical to the
elimination of waste. Lean manufacturing relies on preventing interruptions in the production process
and enabling a harmonized and integrated set of processes in which activities move in a constant
stream.

4. Establish a pull system. This means you only start new work when there is demand for it. Lean
manufacturing uses a pull system instead of a push system. With a push system, used by
manufacturing resource planning (MRP) systems, inventory needs are determined in advance and the
product is manufactured to meet that forecast. However, forecasts are typically inaccurate, which can
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result in swings between too much inventory and not enough, as well as subsequent disrupted
schedules and poor customer service. In contrast to MRP, lean manufacturing is based on a pull system
in which nothing is bought or made until there is demand. Pull relies on flexibility and communication.

5. Pursue perfection with continual process improvement or kaizen. Lean manufacturing rests on
the concept of continually striving for perfection, which entails targeting the root causes of quality issues
and ferreting out and eliminating waste across the value stream.

The Toyota Production System laid out seven wastes, or processes and resources, that don't add value

- -processing or putting more time into a product than

Lean manufacturing requires a relentless pursuit of reducing waste. Waste is anything that customers
do not believe adds value and for which they are not willing to pay. This requires continuous
improvement, which lies at the heart of lean manufacturing. Other important concepts and processes
lean relies on include

production leveling or smoothing that seeks to produce a continuous flow of production,

a signal -- either physical, such as tag or empty bin, or electronically sent through a system
-- used to streamline processes and create just-in-time delivery. Kanban relies on visual signals to
control inventory. A kanban card can be placed in a visible area to signal when inventory needs to be
replenished. With this process,products are assembled only when there is demand from the consumer,
which allows companies to reduce inventory and waste. The kanban method is highly responsive to
customers because products can be manufactured by responding to customer needs instead of trying
to predict their future needs

: A method of providing machines and humans with the ability to detect an abnormality and

a problem.

-yoke: A mechanism that safeguards against human error, such as an indicator light that turns
on if a necessary step was missed, a sign given when a bolt was tightened the correct number of times
or a system that blocks a next step until all the previous steps are completed

: A set of practices for organizing workspaces to create efficient, effective and safe areas for
workers and which prevent wasted effort and time. 5S emphasizes organization and cleanliness. The
5S system is an organizational method that stems from five Japanese words: seiri, seiton, seiso,
seiketsu and shitsuke. These words translate to sort, set in order, shine, standardize and sustain. They
represent a five-step process to reduce waste and increase productivity and efficiency. The first step,
sort, involves eliminating clutter and unnecessary items from the workspace. Next, workers must set in
order by ensuring that there is a place for everything and everything is in its place. The shine step
entails cleaning the workspace and regularly maintaining this state. Standardizing should be done to
make all work processes consistent so any worker can step in and perform a job if necessary. The final
step, sustain, involves maintaining and reinforcing the previous four steps.

How long it takes to produce a part or complete a process.

Kaizen

Kaizen is a business practice that focuses on making continuous improvements. With kaizen, there is
always room for improvement, and workers should constantly look to improve the workplace. This
philosophy also emphasizes that each individual's ideas are important and that all employees should be
involved in the process to better the company. An organization that practices kaizen welcomes and
never criticizes suggestions for improvement at all levels. This helps to create an environment of mutual
respect and open communication.

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