LEAN System
Supporting goals
• A balanced system,
smooth, rapid flow of
materials and/or work
• Supporting goals:
– Eliminate disruption
– Make the system
flexible
– eliminate waste,
especially excess
inventory
WHY REDUCE WASTE?
Price = Cost + Profit.
Price – Cost = Profit
Decided by
Market
Very Much a
function of
Wasteful Cost
activities in
processes
Total Cost
Value Added / Non Value Added
• That customer is
willing to pay
• That changes
products color,
function, shape, other
attributes so that the
product is getting
closer to the
customers
requirements
• That we do right at
first time
Lean thinking
Operation
Traditional improvement
Lean improvement
Non value-add process
Value-add process
Wastes
• Those processes which directly do not
create value for customers (muda, mura,
muri) :
– that are not necessary, and must be
eliminated
– That are necessary, because these are
supporting value-add processes, cannot be
eliminated (like transporting)
• Muda – 7 wastes of lean
• Mura – not leveled workflow
• Muri – overloading of workers and assets
MUDA, MURA, MURI
Relationship between Muda, Mura, Muri
Elimination of Waste
There are 7 wastes(MUDA) in
LEAN (TIMWOOD):
• Transportation
• Inventory
• Motion
• Waiting
• Over Production
• Over Processing
• Defects
Transportation
Inventory
Motion
Waiting
Over Production
Over Processing
Defects
Sea Of WIP
Inventory storage
• Inventory storage is a waste,
• a buffer which can cover up problems, partly
because inventory makes them seem less
serious.
Thank you for your attention!