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Leanideasarethesinglemostpowerfultoolavailableforcreatingvalueandeliminatingwasteinanyorganization。

PartI:

LeanPrinciples

TaiichiOhno（1912–1990），aToyotaexecutive,identifiedseventypesofwastefoundinanyprocess:

•Transportation.Unnecessarytransportofpartsunderproduction。

•Inventory.Stacksofpartswaitingtobecompletedorfinishedproductswaitingtobeshipped.

•Motion。

Unnecessarymovementofpeopleworkingonproducts.

•Waiting。

Unnecessarywaitingbypeopletobeginthenextstep。

•Over—Processingtheproductwithextrasteps.

•Over-Productionofproductsnotneeded。

•Defectsintheproduct。

Wehaveaddedaneighthwaste：

goodsandservicesthatdonotmeetthecustomer’sneeds。

Otherauthorshaveadded：

underutilizationofpeople

LeanThinkingistheantidotetowaste。

Thereare（5）LeanPrinciples:

•SpecifyValue。

Valuecanbedefinedonlybytheultimatecustomer。

Valueisdistortedbypre-existingorganizations，especiallyengineersandexperts.Theyaddcomplexityofnointeresttothecustomer.

•IdentifytheValueStream.TheValueStreamisalltheactionsneededtobringaproducttothecustomer.Ifthemelter，forger，machiner,andassemblernevertalk,duplicatestepswillexist。

•Flow.Makethevalue—creatingstepsflow。

Eliminatedepartmentsthatexecuteasingle—taskprocessonlargebatches.

•Pull。

Letthecustomerpulltheproductfromyou.Sell,one。

Makeone。

•PursuePerfection。

Thereisnoendtotheprocessofreducingtime,space，costandmistakes.

Leanisdoingmorewithless.Usetheleastamountofeffort,energy,equipment，time，facilityspace,materials，andcapital–whilegivingcustomersexactlywhattheywant.

ThePrizeWeCanGraspNow.Convertingabatch-and-queuesystemtocontinuousflow，withpull，will:

•Doublelaborproductivity

•Cutthroughputtimeby90%

•Reduceinventoryby90%

•Cuterrorsby50％

•Cutinjuries

1:

Value

AHouseoraHassle—FreeExperience？

DoyleWilsonHomebuilderfoundthatcustomers“valued”ahassle—freedesignprocessandon-timedelivery.Allhisprocesseswerethenre-alignedtomeetthisgoal.

DefineValueinTermsoftheWholeProduct。

Astheproductflows，eachfirmdefinesvaluedifferently.Thinkofairtravel.Eachfirm–agent,airline，taxi，currencyexchange，customs，immigration–definestheirownpriorities,duplicatesefforts，andworksindisharmonywiththewholeprocess。

Thecustomerisnotsatisfied.

2：

TheValueStream

TheViewfromtheAisle。

Avaluestream“map”identifieseveryactiontodesign,order,andmakeaspecificproduct。

Eachstepisthensortedintothreecategories:

（1）thosethataddvalue，

（2）thosethataddnovaluebutarecurrentlynecessary,and（3）thosethataddnovalueandcanbeeliminated。

Afterthethirdcategoryhasbeeneliminated,thesecondcategoryshouldbeaddressedthroughflow，pull，andperfectiontechniques。

TheValueStreamforaCartonofCola。

TheBritishgrocerychainTescoretailsproductswiththousandsofvaluestreams。

Inthecannedcolavaluestream,threehoursofvalue-addedactivitytake319daystoperform。

3：

Flow

TheWorldofBatch—and—Queue.Five—sixthsofhome-buildingiswaitingforthenextsetofspecialistsorrework.Flowprinciplestypicallycuthalftheeffortandthetimerequired.

TheTechniquesofFlow。

The1ststepistomaintainfocusontheproduct.The2ndstepistoignorejobboundariesanddepartmentsIOTremoveimpedimentstocontinuousflowofthespecificproduct.The3rdstepistorethinkworkpracticestoeliminatebackflow，scrap,andstoppagesIOTmaketheproductcontinuously.

•Takttimesynchronizestherateofproductiontotherateofsales.（48）bikesperdaysolddividedby（8）hoursofproduction=（6）bikesandhour，or

（1）bikeeverytenminutes。

•Flowrequiresallworkersandmachinestobecapableatalltimes.Thisrequirescross—training.

•Flowrequiresworkerstoknowthestatusofproductionatalltimes.Thisrequiresvisualcontrols。

•Allactivitiescanflow。

Concentrateonthevaluestreamforaspecificproduct，eliminateorganizationalbarriers，andrelocateandright-sizetools.

4：

Pull

Pullmeansthatnooneupstreamshouldproduceanythinguntilthecustomerdownstreamasksforit.“Don’tmakeanythinguntilitisneeded，thenmakeitveryquickly。

”“Sellone,buyone。

”“Shipone，makeone。

”

TheBadOldDaysofProduction.TheToyotabumperreplacementsystemsufferedlongleadtimes。

Theabilitytogetpartsquicklyfromthenextupstreamproducerenabledre-ordersinsmallamounts。

Thisisthesecrettoreducinginventory。

Cutleadtimesandinventories。

Demandshouldinstantlygeneratenewsupply.

5：

Perfection

TheIncrementalPath。

Freudenberg-NOK,agasketmanufacturer,improvedasingleprocesssixtimesinthreeyears.“Whydidn’ttheygetisrightthefirsttime?

"

Becauseperfectioniscontinuous。

ContinuousRadicalandIncrementalImprovement.Ifyouarespendingcapital,youaredoingitwrong.Onceleadersunderstandthefirstfourleanprinciples–valuespecification，valuestreamidentification,flow,andpull–theirperfectionstepstartswithpolicy:

avisionoftheidealprocess,andthestep-wisegoalsandprojectstogetthere。

Transparencyiseverything。

Everyonemustknowwhatyouareattemptingtoachieveandwhatareaisthefirstpriority。

Theforcebehindthisistheleaderknownasthechangeagent.

PartII：

FromThinkingtoAction：

TheLeanLeap

6：

TheSimpleCase

Lantechmanufacturersstretchwrapmachines.“ProcessVillages”–Sawingdepartment，Machiningdepartment,Weldingdepartment,Paintingdepartment,andSub-assemblydepartment–allgeneratedlongleadtimes.Batchesoftenweremanufacturedtoshipone.Inventoryoverwhelmedthefactory.Orderchangescreatedhavocintheplant。

“Themoreinventoryyouhave,thelesslikelyyouwillhavethepartyouneed.”

•TheLeanRevolution.RonHicksleanedLantech.Hecreatedfourcells,oneforeachproduct。

Hedefinedstandardwork:

ontime,onspec，everytime.Takttimewasintroduced：

numberofproductsneededperdaydividedbynumberofhours（8/8=1hour）.Heright—sizedmachinestofitinsideworkcells。

Heimplementedquickchangeovertomakemultipledifferentpartswithlittlemachinedowntime。

•Result.Lantechcut30％excessspace，doubledproductoutput，cutdefectsfrom8perproductto0.8perproduct，andcutleadtimefromsixteenweekstofourteenhours。

On-timeshippingrosefrom20to90%。

7：

AHarderCase

TheChangeAgent.ArtByrnewashiredasCEOofWiremoldin1991.“CEOsaretimidtochangetheshopfloor。

”Byrneledleantrainingusingamanualhewrotehimself。

Heledtoursoftheplanttoobservewastethathismanagerswerenowabletosee.

•ImprovementsMustbeFast。

ThreedayswasByrne’sstandard。

•PostaScorecardforEachProductTeam.Wiremoldtracked：

Productivity–salesperemployee，Service–percentdeliveredon—time,Inventory–turns,andQuality–mistakes.

•TeachPeopleHowtoSee。

Createaleantrainingfunction.Teachallemployeesthefiveprinciplesoflean:

Value,ValueStream，Flow，Pull，andPerfection。

Teachallemployeesleantechniques:

standardwork，takttime,visualcontrol,pullscheduling,andsingle-pieceflow。

•Results.Wiremoldfreed50％factoryfloorspace，eliminatedawarehouse，andconverted＄11Mofinventoryinto$24Minsales.Leadtimefellfromfourweekstotwodays。

8：

TheAcidTest

Pratt&

Whitney（P＆W）。

In1991，CEOKarlKrapekandcost—cutterMarkCoranleanedP&

W.

•JetEngines.Foundedin1860,P&

Wledtheaircraftenginebusinessby1929.Whentheyabandonedpistonenginestogambleonjetsin1946,businesssoared.Productioninefficiencieswereoverlooked.

•Overcapacity。

Facedwithcompetitioninthe1980s，P&

Wrationalizedplantlayoutandaddresseddevelopmentcosts。

Theyneededlowerproductioncostsandflexibilitytoreacttocustomerneeds.WhydidP＆Wneedsomuchspace，tools,inventoryandpeopletogetsolittledone?

DailyoutputofenginesandsparepartscouldfitinsideCEO'

soffice。

Failuretomanageassets.P&

Wcutpeople，cutmanagers，andoverhauledtheirentireproductioncultureandprocesses。

•TheMonumentofallMonuments。

A“monument”isamachineorprocesstoobigtobemovedandwhosescalerequiresoperatinginbatchmode.Monumentsareevil,generatinghugeamountsofwaste。

P&

Whadan$80Mgrindingsystem，representingobsoletethinking.Althoughspeedingupgrindingfrom75minutesto3minutesandeliminatingmultiplemanualgrindingjobs，inactualitygrindingjobstooklonger（duetoeight—hourchangeoversandbatchscheduling）,andrequiredmorepeople（22computertechnicians）.P＆Wretiredthe＄80Mmonument,returnedto75-minuteproduction。

9:

LeanThinkingversusGermanTechnik

Porche.ChairmanWendelinWiedekingintroducedleanthinkingtoPorche.In1994,thefirst—everPorscherolledoffthelinewithnothingwrongwithit.

•Engineers.Porcheisledbyengineers，intriguedwithuniquesolutionsthataredifficulttomanufacture。

Workersarecraftsmen。

Unfortunately，muchcraftsmanshipiswaste。

Tinkeringwiththeproduct–repairingandpolishingrawmaterials，troubleshooting,re-assemblingelements，repaintingandr