| LEAN | | | | produced which can't be used or sold straight away |
| Lean as the name suggest is the production of | | | | go into inventory tying up money, space and causing |
| products or services using the least of everything - | | | | multiple management issueso Motion -people or |
| human effort, investment in inventory, machines, | | | | equipment moving or walking more than is required |
| space, tools, time, development, transport / | | | | to perform the processingo Over Processing - making |
| movement. The term is called Lean, Lean | | | | more than is needed or doing more work than is |
| Manufacturing and Lean Enterprise all meaning the | | | | needed because you can't guarantee what the |
| same thing and deriving from the Toyota Production | | | | outcome will be ie I need 20 but I will make 25 just in |
| system and some other sources. It is however very | | | | case something goes wrongo Defects / Rework - |
| simply the reduction of waste from your processes it | | | | the effort involved in inspecting for and fixing |
| has enabled Toyota to become one of the biggest | | | | defects, reworking items or having to scrap them |
| and most reliable car companies in the world. | | | | There has now been identified an 8th Wasteo |
| Lean is therefore the identification and steady | | | | Human talent - the waste of peoples talent - training, |
| elimination of waste through the implementation of | | | | enthusiasms and brain power. |
| perfect first time quality approaches to work, | | | | By identifying waste and non value added activities in |
| standardisation of processes, smoothing of flow, | | | | our processes we can then start to use the lean |
| flexibility of work, long term relationships with | | | | tools to eliminate them. Typical Lean tools include - |
| customers and supplies and reduction in time leading | | | | 5S, visual management, TPM, SMED, Pokie Yokie, |
| to cost reduction and business improvement. To | | | | Standardised work, pull systems, takt time, single |
| achieve this a number of tools have been developed | | | | piece flow, Kanban, cellular manufacturing, design for |
| which facilitate the removal of waste from processes | | | | manufacture, kaizen etc. |
| and a number of methodologies to implement the | | | | Lean thinking and the tools associated with it have |
| principles. | | | | been used for decades all over the world by every |
| In organisations where the principles of Lean are fully | | | | type of business. There is a standard approach to |
| understood the people use the tools and techniques | | | | implementation of lean thinking.o Step 1: Specify |
| with out thought as eliminating waste and improving | | | | Value |
| flow become the norm. Lean in its many guises has | | | | Define value from the perspective of the final |
| been around since the 1940's and has developed and | | | | customer. What does your customer actually want, |
| adapted over the years to become one of the key | | | | what will they pay for and when do they want it.o |
| business improvement methodologies used in many | | | | Step 2: Map |
| of the worlds leading companies. At its heart lean is | | | | Identify the value stream, all the actions required to |
| effectively simple and easy to understand. Lean | | | | bring a specific product through the physical flow of |
| implementation is therefore focused on getting the | | | | the company. This includes all the information flow |
| right things, to the right place, at the right time, in | | | | and management flow steps to make things happen. |
| the right quantity to achieve perfect work flow while | | | | Create a map of how it is today and how you want |
| minimizing waste and inventor while being flexible and | | | | it to look like. Identify and categorize waste in the |
| able to change if the customer requirements change. | | | | Current State, and eliminate it!o Step 3: Flow |
| However, no matter how simple, at the heart of any | | | | Make the remaining steps in the value stream flow. |
| lean implementation is the cultural and managerial | | | | Eliminate functional barriers and develop a |
| aspects of Lean which are just as, and possibly | | | | product-focussed organization that dramatically |
| more, important than the actual tools or | | | | improves lead-time.o Step 4: Pull |
| methodologies of lean itself. There are many | | | | Let the customer pull products as needed, eliminating |
| examples of Lean tool implementation without | | | | the need for a sales forecast.o Step 5: Perfection |
| sustained benefit and these are often blamed on | | | | There is no end to the process of reducing effort, |
| weak understanding of Lean in the organisation. | | | | time, space, cost, and mistakes. Return to the first |
| The first concept which must be understood is that | | | | step and begin the next lean transformation, offering |
| waste is bad. This has been the ethos for successful | | | | a product which is ever more nearly what the |
| companies from Henry Ford onwards. So what is | | | | customer wants. |
| waste? | | | | If you have a top management team who |
| Waste or non value added work is anything which | | | | understand the concepts and a workforce who |
| doesn't add value to your product or service. When | | | | embrace the culture then Lean will transform your |
| you examine your processes in real detail you | | | | business. |
| discover that the vast majority of what we do is | | | | So what is Lean Six Sigma? |
| non value added. To illustrate this Shigeo Shingo (a | | | | As stated above Lean and Six Sigma when used |
| deep lean thinker) observed 'that it's only the last | | | | together will provide a business improvement |
| turn of a bolt that tightens it - the rest is just | | | | methodology which combines tools from both Lean |
| movement'. If we review everything we do to this | | | | Enterprise (Manufacturing) and Six Sigma. Lean |
| extent we see that most of our activities are waste. | | | | eliminates the waste in your processes, while Six |
| To eliminate waste we must examine three aspects | | | | Sigma ensures quality through the elimination of |
| - the design and planning of our activities, the | | | | variation in your processes and also provides a |
| fluctuation at our operations such as quality and | | | | structured data driven structure to solve problems |
| volume and thirdly the waste in our processes | | | | and implement sustainable change into your business. |
| themselves in the movement of people and materials | | | | Why is there even a debate about which one you |
| and the machines they use. | | | | should use? |
| When you examine your processes in this way you | | | | For some reason two camps have emerged one |
| can be said to be 'learning to see' and can start to | | | | supporting Lean and the other Six Sigma. Lots of it is |
| eliminate the waste and improve the processes. To | | | | childish my way is better than yours and some of is |
| make things easier there are 7 ways to think about | | | | lack of knowledge. Either way what you find is that |
| waste. | | | | both approaches use each others tools any way. So |
| The original seven wastes are:o Overproduction | | | | the whole thing is stupid. As with any business |
| (production ahead of demand) - making things ahead | | | | improvement you should use the best tool for the |
| of when the customer actually wants them. We do | | | | job no matter what it is or where it has come from. |
| this because our processes are not reliable, or we like | | | | You should be constantly seeking out new tools, |
| to manufacture or do task in big batches (traditionally | | | | methods, applications and methodologies to satisfy |
| accountants tell us this is the most efficient way)o | | | | your customer and business needs by eliminating |
| Transportation - moving parts, materials or work in | | | | waste and improving quality. That is why we always |
| progress around a factory or paper around an | | | | train, consult and coach in Lean Six Sigma but bring in |
| officeo Waiting - for parts or information so you can | | | | anything else we know. That is why we don't mind |
| perform at tasko Inventory (all materials, | | | | you calling your improvement initiate what ever you |
| work-in-progress and finished product) - Items | | | | like and that is why we get results. |