Lean Management Course
Lean Management Course
2022 – 2023
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1. LEAN MANAGEMENT :
INTRODUCTION
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• LEAN
PROCESS IMPROVEMENT METHODOLOGY TARGETING THE ELIMINATION OF WASTE –
ANY HUMAN ACTIVITY THAT ABSORBS RESOURCES BUT CREATES NO VALUE.
• LEAN THINKING
THE METHOD USED TO COMBAT WASTE
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THE HISTORY OF LEAN
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BETWEEN TRADITION AND LEAN
Traditional culture Lean culture
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Customer focus
GROUND RULES
Respect
Results
Accountability
Excellence
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2. LEAN METHODOLOGY
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TERMINOLOGY
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LEAN METHODOLOGY
Both a philosophy and a discipline which, at its core, increases access to information to ensure
responsible decision making in the service of creating customer value.
Continuous Respect
improvement people
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CONTINOUS IMPROVEMENT
A method for identifying opportunities for streamlining work and reducing
waste to improve the speed and quality of value delivery.
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֎ Continuous improvement hinges on continued learning. Focusing
on it:
1.Fosters a collaborative culture across teams before, during, and after work is done to deliver value to
customers
1.Creates a culture that encourages information sharing at the beginning, during, and especially at the end
of a process cycle
1.Encourages idea sharing at all levels of an organization, especially as teams spend extended periods of
time working together
1.Empowers teams to identify opportunities to improve, plan for ways current processes can be improved,
execute and implement those changes, and review the effect those changes have on overall work output
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CONTINOUS IMPROVEMENT PROCESS
Standardize
Solution
1.Study Results
1.Act
1.Analyse
1.Identify
2.Improvement
3.Opportunity
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RESPECT FOR PEOPLE!
Lean teaches organizations that respecting people is a key strategy for eliminating
waste.
``RESPECT``
ENGAGE AND EMPOWER THE PEOPLE CLOSEST TO THE WORK
SO THAT THEY CAN: LEAN AND PEOPLE RESPECT
Respect in teams
Standardize what's working
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MODERN LEAN METHODOLOGY
Quality
management
• Quality management: The lean management approach is essentially a quality management
system. It is a continuous process which oversees all aspects of an organization's
Just-in-time
operation, identifying inefficiencies and unnecessary waste. The key is being able to
visualize the value stream.
• Just in time: A concept based on removing waste from business processes to achieve a
Six sigma streamlined, highly efficient system that provides low-cost and high-quality products to
support customer needs.
• SIX SIGMA: A method that relies on a collaborative team effort to improve performance by
Theory of systematically removing waste and reducing variation.
constraints
• Theory of constraints: System based philosophy which states that the constraint determines
the performance of the systems. It is a methodology for identifying the most important
limiting factor that stands in the way of achieving a goal. It focuses on identifying and
removing constraints that limit throughput.
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LEAN APPROACH
An activity is value added if, and only if, these three conditions are met:
The customer would be willing to pay for the service or product
The form, fit, or function of the service or product changes overtime to keep it relevant and valuable
The service or product is quality
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WASTES
• Inventory
• Over-production 1. Excess stocks
1. Producing more product 2. Devices
than necessary. 3. Office supplies
2. Creates excessive lead 4. Problems become overlooked
Defects
times. since there is excess
3. Increases storage cost. 5. Excessive raw material
Underutilized people Over-production
4. Difficulty of finding defects. • Excess motion
• Waiting 1. Misplaced tools.
Transportation Over-processing 1. Idle products or employees. 2. Searching for materials
2. Concentrate on bottlenecks will 3. Recurrent Printing
alleviate the waiting waste. 4. Multi-tasking
Excess motion Waiting • Transportation • Defects
1. Inefficient factory layout. 1. None controlled products
Inventory 2. Products replacements 2. Misbehaved interaction
3. Defects collection 3. None-maintained machines
• Over-processing 4. Order errors
1. Cheap tools • Underutilized people
2. Less technology 1. Limited employee authority and
3. Several machines rather than responsibility for basic tasks
one 2. Inadequate business tools
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Value analysis methods
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Defining value
LEAN PRINCIPLES
Mapping the value
stream
Creating flow
Pursuing perfection
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PRINCIPLE 1: DEFINE VALUE
Design and deliver products and services to meet the needs and preferences of the customer.
• Assess the needs and preferences of the customer by : Surveys, focus groups, observation, interviews…
Cost
Right price and
right resources
The value stream is the sequence of processes from raw material to the customer that create value.
Operational Development
value stream value stream
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HOW TO DRAW A VALUE STREAM MAP
Determine the scope of your value stream map
Create a timeline
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PRINCIPLE 3: CREATE FLOW
Ensure smooth delivery from the second you receive an order to the moment when you deliver it to the
customer
A major obstacle to creating a smooth flow are the bottlenecks in your process
Keep an especially close eye on where tasks get stuck so you can look to understand why that happens.
Limit the amount of work that a team can have in progress simultaneously.
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PRINCIPLE 4: ESTABLISH PULL SYSTEM
As a lean organization, the ultimate goal is to deliver value to your customers in the most efficient manner. A suitable way
to ensure that is focusing on two key metrics of each task:
• Cycle time
• Throughput
ESTABLISHING A PULL SYSTEM
1 • Visualize the workflow.
2 • Eliminate interruptions
3 • Manage flow
6 • Improve collaboratively
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ESTABLISHING A PULL
SYSTEM
1 • Visualize the workflow.
2 • Eliminate interruptions
3 • Manage flow
• Make process policies
4
explicit
• Maintain open feedback
5
loops
6 • Improve collaboratively
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PRINCIPLE 5: PURSUE PERFECTION
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HOW DOES LEAN WORK SO?
Inputs
Transportation, Outputs
Core business training, financial
process assistance, legal Thriving economy,
Budget, agreements, … Strong and stable
Staff, community,
equipment, Educated and
skilled workforce,
systems,
Clean and healthy
structures, environment,
Data, Safe and
Qualified and
information, sustainable
Administrative productive Employees,
… management,
systems,
support process Efficient workflow,
planning, reporting, …
research...
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4. LEAN SIX SIGMA:
LEAN MANAGEMENT COURSE
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A SIGMA!
A sigma value, or sigma level, proves how often mistakes in a process are likely to occur. More specifically, it represents the
number of errors per million possibilities. The higher the sigma, the lesser errors. Six sigma is the highest level on the sigma
scale.
SIX SIGMA
Six sigma is a data-driven approach to reduce defects in a process. Six sigma is a methodology used to improve business processes by utilizing
statistical analysis rather than guesswork.
"Six Sigma" comes from the bell curve used in statistics, where one Sigma symbolizes a single standard deviation
from the mean. If the process has six Sigmas, three above and three below the mean, the defect rate is classified as
"extremely low.“
A bell curve: is a type of graph that is used to visualize the distribution of a set of chosen values across a specified group
that tend to have a central, normal values, as peak with low and high extremes tapering off relatively symmetrically on
either side.
•PURPOSE •GOAL
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Six sigma objectives
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Lean Vs Six sigma
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Six sigma roles
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SIX SIGMA PRINCIPLES
Finding problems
and focusing on it Communicating
early and training
teams
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SIX SIGMA METHODOLOGY
DMAIC DMADV
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SIX SIGMA TECHNIQUES
Root cause analysis/the 5 whys : the question "why" is asked, again and again,
finally leading up to the core issue.
Voice of customer : it captures the customer feedback by either internal or
external means. It captures the changing needs of the customer through direct and
indirect methods.
The 5S system : aimed at removing waste and eliminating bottlenecks from
inefficient tools, equipment, or resources in the workplace. The five steps used
are sort, set in order, shine, standardize, and sustain.
Kaizen : it is the practice continuously monitoring, identifying, and executing
improvements.
Poka-yoke : avoid errors, and entails preventing the chance of mistakes from
occurring.
Value stream mapping : charts the current flow of materials and information to
design a future project. The objective is to remove waste and inefficiencies in the
value stream and create leaner operations.
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SIX SIGMA TOOLS
1.Flow Chart
• A picture of the separate steps of a process in sequential order.
1.Pareto Chart
• Identify areas to focus on first in process improvement. The charts are based on the “80/20” rule.
1.Histogram
• A bar graph that shows the frequency data occur within a certain interval.
1.Scatter Plot
• To show how the variables relate to each other. This is called correlation.
1.Control Chart
• To focus on detecting and monitoring the process variation over time.
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LEAN SIX SIGMA
Lean six sigma is a fact-based and data-driven philosophy of improvements that focuses on defect prevention over defect
detection. It drives customer satisfaction by reducing wastes and cycle time while promoting the use of work standardization
and flow, thereby creating a competitive advantage.
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The Toyota production system, and later on the concept of lean, was
developed around eliminating the three types of deviations that shows
inefficient allocation of resources. The three types are waste, imbalance,
and overburden.
֎ Muda : muda means wastefulness. Work that does not add.
֎ Muri : meaning overburden or unreasonable. Muri can result from mura and in
some cases be caused by excessive removal of muda (waste) from the process.
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VALUE ANALYSIS
A standardized, multi-skilled team approach which aims at identifying the lowest cost way and ensuring the highest worth
to accomplish the functions of a product, process or service.
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LEAN TOOLS
Lean tools are designed to reduce Muda in organizations and improve quality control. In other
words, lean tools seek to eliminate processes that aren't valuable.
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JUST-IN-TIME
Just-in-time manufacturing is an on-demand system that allows manufacturers to go into production only after the customer
has requested a product. This means that companies do not have to stock up on unnecessary inventory, lowering the risk of
some components or products being overstocked or damaged while being stored.
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VALUE STREAM MAPPING
A technique developed to create a visual guide of all the components necessary to deliver a product or service with the goal
of analysing and optimizing the entire process.
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VSM ILLUSTRATED
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OVERALL EQUIPMENT EFFECTIVENESS
It measures how much planned productive time is actually productive. Overall equipment effectiveness can be calculated
by multiplying the following three factors:
• Availability
• Performance
• Quality
These three factors are defined as follows:
•Availability = Run Time Divided by Total Planned Production Time
•Performance = (Ideal Cycle Time Multiplied by Total Count) Divided By Run Time
•Quality = Good Count Divided by Total Count
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PLAN-DO-CHECK-ACT
Plan-do-check-act is a scientific method used to manage change, and is also known as the deming cycle. The PDCA cycle
involves four parts:
1. Plan – recognize an opportunity or process that needs improvement.
2. Do – create a small test.
3. Check – analyse the results of the test.
4. Act – move forward based on those results.
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ROOT CAUSE ANALYSIS
The process of discovering the root causes of problems in order to identify appropriate solutions. This process is
constituted of 5 steps:
• Realize the problem.
• Collect a sufficient amount of data.
• Identify the associated causal factors.
• Draw a conclusion.
• Implement any necessary changes.
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6. LEAN CONSTRUCTION :
LEAN MANAGEMENT IN ACTION
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IDENTIFYING THE CUSTOMERS
Finding out the fundamentals of
processes
! All organizations have a whole range of different customers – internal and external.
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GETTING A HIGH-LEVEL PICTURE
> A high-level process map provides a framework to help understand process and its customers and suppliers better, and to think
about what needs to be measured in the process to help understand performance and opportunities for improvement.
> The SIPOC model identifies your customers and the outputs they need, presents a high-level process map, usually comprising
four to eight steps, identifies your suppliers and confirms your input requirements from them.
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SIPOC MODEL EXPLAINED
Suppliers: the people, departments or organizations that provide the ‘inputs’ needed to operate the process.
Inputs: forms or information, equipment or raw materials, or even the people needed to carry out the work.
Process: the process steps at a relatively high level.
Outputs: a list of the things that the process provides to the internal and external customers in seeking to meet their ctqs.
Customers: the different internal and external customers who’ll receive your various process outputs.
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SIPOC MODEL CREATION
> SIPOC diagram can be created by gathering the team around a large
sheet of paper and follow these steps:
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SIPOC MODEL ILLUSTRATED
Figure 3-5: The SIPOC model.
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SEGMENTING CUSTOMERS
Consider the following segmentation categories in relation to your
customers:
Industry
Size
Spend
Geographical location
End use
Product characteristics
Buying characteristics
Price/cost sensitivity
Age
Gender
Socioeconomic factors
Frequency of purchase/use
Impact/opinion leader
Loyalty
Channel
Technology
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UNDERSTANDING CUSTOMERS`
NEEDS
Introducing Kano
Hearing the voice of the customer
Putting customers first
Gauging the performance
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THE KANO MODEL ILLUSTRATED
Developed by Professor Kano, the model looks at customer requirements and helps understand how customers will
perceive the service and products provided. The Kano model involves three main categories:
► Must-bes: These are sometimes referred to as the unspoken customer requirements. To the customer, they’re so
obviously required that she/he don’t expect to have to spell them out.
► One-dimensionals: The requirements might relate to product features or elements of service delivery, or both.
► Delighters: Here, the customer is surprised and delighted by something done, a wow factor, and the satisfaction
increases, even if some other elements haven’t been delivered as well as they might.
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OBTAINING THE VOICE OF
CUSTOMER
> VOC is about determining customer requirements, not determining solutions
to meet those requirements.
> Find out what customers want by talking with, listening to and observing
them. The customer’s voice can be sourced in lots of places, such as
market research results, focus group discussions, survey results and
customer complaints.
> The trick is to translate what the customer says into a measurable
requirement – the critical to quality (CTQ) customer requirement.
> Gather input from customers in order to understand their needs, identify the
key issues and translate them into terms that mean something to
organization and that can be measured.
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RESEARCHING THE REQUIREMENTS
Researching customers follows a natural progression. You start with potentially no information about customers, and end up with a
collection of quantified, prioritized customer needs and expectations:
Analyze the current situation (What information is available)
Determine the gaps in the customer information.
Develop a customer research plan (To move you from the current state to where you to a future state).
Survey
Face-to-face
Qualitative, prioritized Quantified prioritized customer wants and needs
Written mail
customer wants and needs Competitor comparative information
Telephone
Electronic
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CONSIDERING CTQ REQUIREMENTS
> After the collection of the VOC, the CTQs needs to be developed.
> CTQs are the key measurable characteristics of a product or process whose performance standards or specification limits must
be met in order to satisfy the customer. These outputs represent the product or service characteristics defined by the customer
(internal or external).
> CTQs provides the basis for process measurement set. This set will enable to put the right measures in place to assess
performance.
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CTQ REQUIREMENTS EXAMPLE
CTQ
grouping Examples Measures
Bills paid on time (in and out) Elapsed times and deviation
from target
Deliveries made on time
Speed Turn-around times
Time to answer calls
Call answer rate
Turn-around time on IT
project delivery Call abandon rate
Number of defects in orders,
deliveries, products or
Orders containing the correct software
Accuracy information Number of calls to helpdesk
Computer system that works Number of bugs reported by
users testing a new computer
system or a program change
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DETERMINING THE CHAIN OF EVENTS
Using process stapling to follow a chain of events from start to finish
Drawing a spaghetti diagram to see how the work gets done
Creating a map of the process
Process stapling offers one way to really understand the process and the chain of events. Process stapling means taking a
customer order and literally walking it through the entire process step by step as though you were the order.
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LEAN IMPLEMENTATION PLAN
The implementation plan created for a lean project, often during a rapid improvement event, provides a roadmap to lead the project through completion.
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LEAN KEY IMPLEMENTATION FRAMEWORK
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LEAN IMPLEMENTATION COMPONENTS
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LEAN IMPLEMENTATION COMPONENTS
Lean projects events include three main components:
1. Planning and preparing for the event, including scoping the event, developing the charter, assembling the team, arranging
logistics, and conducting background research.
2. Holding the team-based event, including mapping the current process, designing a new process, implementing changes to
improve the process, and developing an implementation plan for remaining improvements.
3. Following up from the event to implement the new process and implementation plan, verify and evaluate results including at
30-, 60-, and 90-day report-out meetings, and sustain and share project successes.
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LEAN IMPLEMENTATION FOLLOW-UP
Three reasons why follow-up is critical to the success of lean projects include:
❝ A lean effort may result only in plans for improvement, not actual results. An
implementation plan or new process design does not mean much if it is not acted upon.
❝ Any process changes made during and following an event or project meetings will be at
risk of backsliding. The tendency will be for things to go back to the way they always have
been.
❝ Opportunities miss for additional improvements to the target process or other processes.
Lean follow-up communications can help raise awareness about lean and encourage
greater success.
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LEAN MANAGMENET
IMPLEMENTATION STEPS
Develop an
Standardize and socialize
implementation plan
process changes
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DEVELOP AN IMPLEMENTATION
PLAN
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COMPLETE AND TRACK ACTIONS
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MEASURE AND EVALUATE
RESULTS
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STANDARDIZE AND SOCIALIZE PROCESS
CHANGES
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0
1
KEY IMPLEMENTATION ACTIONS
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SCOPING AND PLANNING IMPROVEMENT
EFFORTS
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DURING IMPROVEMENT EVENTS OR PROJECT
MEETINGS
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AFTER DEVELOPING AN IMPLEMENTATION
PLAN
HOLD WEEKLY MEETINGS TO MAKE PROGRESS ON
IMPLEMENTATION, AND MONTHLY MEETINGS TO REPORT TO
MANAGEMENT
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LEAN
PROJECTS
PITFALLS
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Lean projects pitfalls
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8. LEAN PRODUCTION:
LEAN IN ACTION
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LEAN PRODUCTION
Lean production is an approach to management that focuses on cutting out waste, whilst ensuring quality.
► It can be applied to all aspects of a business from design, through production to distribution.
► It sets out to cut out or minimise activities that do not add value to the production process, such as holding of stock,
WASTE HIERARCHY
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LEAN PRODUCTION PRINCIPLES
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LEAN PRODUCTION KEY ASPECTS
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1. TIME BASED MANAGEMENT
It is a general approach that recognises the importance of time and seeks to reduce the level of wasted time in the production processes of a
business.
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2. SIMULTANEOUS ENGINEERING
Also known Concurrent engineering, is a method of designing and developing products, in which the different stages run
simultaneously, rather than consecutively. It decreases product development time and also the time to market, leading to
improved productivity and reduced costs.
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3. JUST-IN-TIME PRODUCTION
A production model in which items are created to meet demand, not created in surplus or in advance of need. Organizations adopt
the JIT approach to increase efficiency, reduce costs and speed up product delivery.
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4. CELL PRODUCTION
A form of team working and helps ensure worker commitment, as each cell is responsible for a complete unit of work
The goal of cellular manufacturing is to move as quickly as possible, make a wide variety of similar products, while making as
little waste as possible.
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5. KAIZEN
A concept referring to business activities that continuously improve all functions and involve all employees from the CEO to the
assembly line workers.
♦ Teamwork.
♦ Personal discipline.
♦ Improved morale.
♦ Quality circles.
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9. LEAN MANUFACTURING :
LEAN PHILOSOPHY IN DEPTH
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LEAN MANUFACTURING VS. LEAN PRODUCTION
Lean manufacturing focusses on the machines. The lean production approach rather refers to an overall scope as for instance value stream
mapping and design does.
Lean manufacturing
Series of methods, philosophies and tools to minimize waste in manufacturing operation and maximize production.
The is to:
• Reducing costs in business processes, offering products with competitive price in market, increase profit and ROI.
• Reducing product cost and increasing business profits starting from reducing cost from bottom line at operation level which impact all in
product or service cost (price).
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TIMWOODS
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LEAN MANUFACTURING
FRAMEWORK
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KAIZEN
The idea behind kaizen is continuous improvement.
It makes teams work together proactively and take responsibility for their areas within the company.
Together, employees make incremental improvements in the manufacturing process. With kaizen, there is always
room for improvement, and workers should constantly look to improve the workplace.
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GEMBA
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KANBAN
Project management method that helps visualize tasks.
Visual information system established to maintain the discipline of a JIT system on the shop floor
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HEIJUNKA
The Japanese word for “levelling.” Level scheduling is a type of production that purposely manufactures products in smaller batches by
sequencing varying products in the same process.
Implementing heijunka requires you to set the pace of your manufacturing according to what’s known as takt time.
TAKT TIME
☀ The rate at which you need to complete a product
in order to meet customer demand (the average
time that passes between the beginnings of two
successive product units being manufactured).
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TAKT TIME
Just in time helps improve inventory costs, reduce space, reduce lead time and increase productivity.
USE KANBAN
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SMED
Single-minute exchange of dies (SMED) is a process used to greatly reduce the time it takes to complete equipment changeovers.
The smed process involves a series of steps or "elements", which are categorized in two types: internal and external. Internal elements need
to be completed while the equipment is stopped, while external elements can be completed while the equipment is running.
The goals of smed is to have as many external elements as possible while streamlining and simplifying all other elements.
CHANGE-OVER
☀ The process of converting a line
or machine from running one
product to another.
SMED BENEFITS
Decrease in manufacturing costs
Lower inventory levels
Improve machine start-ups
Improve schedule flexibility & responsiveness to customer
demand
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POKA-YOKE
Japanese term translated to "mistake proofing“. It is a technique used to make sure the lean process produces quality products.
It's purpose is to minimize or eliminate defects by preventing, correcting, or bringing to light any human errors that are occurring.
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