Reference: 7 wastes, muda, mura, muri, waste
Benefits: Understanding the nature of waste is the first step in being able to recognize it, and thereby work to eliminate it. All of 'lean' is centered around the identification & elimination of waste, in all it's various forms.

[Back to Top]

'3 GEN' refers to the first syllable of each word. (In Japanese, the 'n' & 'm' sounds are sometimes mixed. Therefore, 'genba' and 'gemba' refer to the same thing, as do 'kanban' and 'kamban'.)

Reference: gemba

[Back to Top]

3P seeks to meet customer requirements by starting with a clean product development slate to rapidly create and test potential product and process designs that require the least time, material, and capital resources. This method typically involves a diverse group of individuals in a multi-day creative process to identify several alternative ways to meet the customer's needs using different product or process designs. 3P typically results in products that are less complex, easier to manufacture (often referred to as "design for manufacturability"), and easier to use and maintain.

3P can also design production processes that eliminate multiple process steps and that utilize homemade, right-sized equipment that better meet production needs. 3P offers the potential to make "quantum leap" design improvements that can improve performance and eliminate waste to a level beyond that which can be achieved through the continual improvement of existing processes.

Benefits: Eliminating waste in the planning phase of a production process has long-term implications on profitability. Not only can production problems be 'designed out' prior to production, but quality and efficiency can be 'designed in'.

[Back to Top]

• STANDARDIZATION: During this phase, processes are defined (and re-defined), procedures written (re-written), and new layouts are considered to maximize the use of assigned resources.
• MECHANIZATION: During this phase, equipment purchases and replacements are considered, and various fixtures may be designed/built to support the production process.
• AUTOMATION: During this phase, process & information collection equipment is purchased to perform tasks more efficiently than humans.

As a prescription for continuous improvement, the '3 phases' are a basic guide to get the most out of improvements at minimum cost. For example, before MECHANIZATION or AUTOMATION is considered, it is important to ensure that processes are well-defined, procedures clearly drive results, and that workspaces are properly designed (i.e., STANDARDIZATION). Early adoption of mechanized or automated systems can have the effect of 'designing in' certain types of waste, which may make it difficult or expensive to remove.

Each of the '3 phases' should be iterated several times before moving to a subsequent phase, and should constantly be revisited as part of a comprehensive continuous improvement plan.

[Back to Top]

[Back to Top]

Japanese term	Description	English translations
seiri	Eliminate all items not immediately required in the work area	Sort, sift, separate
seiton	Efficient placement & arrangement of equipment and materials	Set, Set in order, Set in place
seiso	Maintain a clean & tidy workplace	Sanitize, Sweep
seiketsu	Develop & maintain standards for housekeeping	Standardize
shitsuke	Establish the discipline & leadership for area maintenance and improvement	Sustain

Benefits: A clean & organized work area is naturally a more efficient work area. Areas that are well maintained show the pride and dedication of those who work in the area. Excess suppliers & equipment that is identified may be of use in other areas of the company. Eliminating 'storage' within the work area frees valuable real estate. Eliminating excess supplies & tooling, along with visual standards for storage and cleaning reduces the amount of time spent searching for out of place items.

[Back to Top]

NOTE: There is nothing 'magic' about the number 5. Continue to ask 'why' until you find a sufficiently broad, and sufficiently simple, root cause of a problem. If it appears that 'people' or 'training' is the root cause, it is likely the wrong 'why' questions are being asked.

Reference: Zero Quality Control, poka-yoke
Benefits: Root causes often affect more problems than the one being researched. By asking 'why' 5 times, often simpler root causes are identified. Simpler root causes can be addressed more quickly, often at less cost.

[Back to Top]

[Back to Top]

Habit 1 - Be Proactive: Principles of Personal Vision
Habit 2 - Begin with the End in Mind: Principles of Personal Leadership
Habit 3 - Put First Things First: Principles of Personal Management
Habit 4 - Think Win/Win: Principles of Interpersonal Leadership
Habit 5 - Seek First to Understand, Then to be Understood
Habit 6 - Synergize Principles of Creative Communication
Habit 7 - Sharpen the Saw: Principles of Balanced Self-Renewal
Habit 8 - Find Your Voice, and Inspire Others to Find Theirs

The '8th habit' is from Covey's book, The 8th Habit (2004).

Reference: http://www.stephencovey.com/

[Back to Top]

• Over-production - Producing more units than customers are demanding (or producing them earlier than the customer orders them).
• Waiting - People waiting for machines or processes; Product waiting for people, machines, or processes.
• Transportation - Moving product from one place to another.
• Inventory - Raw materials, work-in-process (WIP), and finished goods in excess of direct customer requirements.
• Motion - Any movement my people or machines that does not actually transform product from one state to another.
• Over-processing - Performing operations that are unnecessary.
• Defects - Creating or passing along products which contain errors in material or processing.

Reference: 3 forms of waste, muda, mura, muri, waste
Benefits: Understanding the nature of waste is the first step in being able to recognize it, and thereby work to eliminate it. All of 'lean' is centered around the identification & elimination of waste, in all it's various forms.

[Back to Top]

1. Use Team Approach: Establish a small group of people with the knowledge, time, authority and skill to solve the problem and implement corrective actions. The group must select a team leader.
2. Describe the Problem: Describe the problem in measurable terms. Specify the internal or external customer problem by describing it in specific terms.
3. Implement and Verify Short-Term Corrective Actions: efine and implement those intermediate actions that will protect the customer from the problem until permanent corrective action is implemented. Verify with data the effectiveness of these actions.
4. Define end Verify Root Causes: Identify all potential causes which could explain why the problem occurred. Test each potential cause against the problem description and data. Identify alternative corrective actions to eliminate root cause.
5. Verify Corrective Actions: Confirm that the selected corrective actions will resolve the problem for the customer and will not cause undesirable side effects. Define other actions, if necessary, based on potential severity of problem.
6. Implement Permanent Corrective Actions: Define and implement the permanent corrective actions needed. Choose on-going controls to insure the root cause is eliminated. Once in production, monitor the long-term effects and implement additional controls as necessary.
7. Prevent Recurrence: Modify specifications, update training, review work flow, improve practices and procedures to prevent recurrence of this and all similar problems.
8. Congratulate Your Team: Recognize the collective efforts of your team. Publicize your achievement. Share your knowledge and learning.

[EXAMPLE] - - [Back to Top]

1. Create constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.
2. Adopt the new philosophy. We are in a new economic age. Western management must awaken to the challenge, must learn their responsibilities, and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place.
4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of loyalty and trust.
5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
6. Institute training on the job.
7. Institute leadership. The aim of supervision should be to help people and machines and gadgets to do a better job. Supervision of management is in need of overhaul, as well as supervision of production workers.
8. Drive out fear, so that everyone may work effectively for the company.
9. Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service.
10. Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force.
    • Eliminate work standards (quotas) on the factory floor. Substitute leadership.
    • Eliminate management by objective. Eliminate management by numbers, numerical goals. Substitute leadership.
11. Remove barriers that rob the hourly worker of his right to pride of workmanship. The responsibility of supervisors must be changed from sheer numbers to quality.
12. Remove barriers that rob people in management and in engineering of their right to pride of workmanship. This means, inter alia, abolishment of the annual or merit rating and of management by objective.
13. Institute a vigorous program of education and self-improvement.
14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Reference: W. Edwards Deming, The W. Edwards Deming Institute

[Back to Top]

[Back to Top]

Reference: improvement workshop, jishuken, kaizen blitz, kaizen event, RIW

[Back to Top]

• Green - no problems
• Yellow - situation requires attention, production flow at risk
• Red - PRODUCTION STOPPAGE: IMMEDIATE ASSISTANCE REQUIRED

Contemporary use of the andon concept has been expanded to include many useful devices, such as flags, audible signals (buzzers, alarms), and visual display/production boards.

Reference: visual management
Benefits: Constant feedback on the status of our machinery & systems reduces operation & maintenance costs (by catching problems before they become major issues), and increases equipment availability (by keeping downtime issues more visible).

[EXAMPLES] - - [Back to Top]

Autonomation is used where poka-yoke devices are impractical, or when a significantly higher level of technical knowledge about a machine or process is required for mistake-proofing purposes.

Reference: Zero Quality Control
Benefits: 'Intelligent' machines require less interaction (and less labor) from operators. Fewer mistakes will result in fewer defects. Fewer defects will result in less material, labor (rework, handling), and space costs. Higher levels of quality will result in better delivery, lower customer complaints & returns, and better market position.

[EXAMPLES] - - [Back to Top]

[Back to Top]

Reference: one-piece flow
Benefits: Smaller batches flow through production systems faster. They also provide greater flexibility (since we don't have to wait for large batches to complete before changing models), to provide better response to customers. Additionally, smaller batches make it easier to control production and quality.

[Back to Top]

Reference: improvement workshop, kaizen blitz, kaizen event

[Back to Top]

Reference: http://www.pcspress.com/

[Back to Top]

Reference: Theory of Constraints

[Back to Top]

Reference: 5S
Benefits: A clean & organized work area is naturally a more efficient work area. Areas that are well maintained show the pride and dedication of those who work in the area. Excess suppliers & equipment that is identified may be of use in other areas of the company. Eliminating 'storage' within the work area frees valuable real estate. Eliminating excess supplies & tooling, along with visual standards for storage and cleaning reduces the amount of time spent searching for out of place items.

[Back to Top]

Reference: continuous flow
Benefits: Properly designed production cells can act as autonomous business units, performing not only value-added activities, but many traditional support activities as well. Cell teams are the basis for all continuous improvement activities.

[Back to Top]

Reference: nagara
Benefits: Minimizing motion (one of the 7 classic wastes) reduces costs, and allows operators to be more flexible to the demands of daily production requirements.

[Back to Top]

[Back to Top]

Complexity - Design complexity out of work systems, products, and processes.

Labor - Continually reduce the amount of labor required to perform tasks.

Overproduction - Do not produce more than the customer demands.

Space - Continually reduce the amount of space required.

Energy - Look for ways to reduce power requirements.

Defects - Increase the quality of processes.

Materials - Reduce waste due to offcut, spoilage.

Idle Materials - Keep materials moving through the system.

Time - Increase throughput.

Transportation - Reduce the travel distance of materials from dock to dock.

Reference: 3 forms of waste, 7 wastes, muda, mura, muri, waste,
Benefits: Understanding the nature of waste is the first step in being able to recognize it, and thereby work to eliminate it. All of 'lean' is centered around the identification & elimination of waste, in all it's various forms.

[Back to Top]

Reference: Theory of Constraints
Benefits:

[Back to Top]

One of the core concepts of Lean Manufacturing (along with eliminating waste & implementing pull), establishing continuous flow forces work cells to continually evaluate inventories, batch sizes, and work methods & distribution, to better meet takt time & customer demand.

Reference: pull, takt, waste
Benefits: Deliberate, smooth flow balances resources with current requirements, which optimizes use of those resources.

[Back to Top]

The theory of the 'learning curve' states that the time it takes to perform any activity is a random variable. If we plot this variable over time (and the number of units produced), there is a tendency toward shorter & shorter activity times. This is due to minor, imperceptible changes we all make during repetitive activities (known as 'learning').

Production systems also show this kind of 'learning', within parameters (limitations) contained in 'job travelers', 'work instructions', or 'standard work'. Production system tasks tend to 'level off' around pre-determined, standard times. Beyond these levels, improvement isn't possible without redesiging the work method.

Reference: kaikaku, kaizen, standard work
Benefits: Continuous improvement (CI) costs less, and has more immediate impact, than more 'stepped' improvement models (especially when CI is practiced by everyone in an organization).

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[Back to Top]

Often, the distinction between internal customers (downstream processes), external customers (OEM's, which sell directly to end-users or distributors), and end-users (paying customers) is blurred. This can affect the definition of value, which in turn affects the identification of waste.

Reference: external customer, internal customer, value, waste
Benefits: Understanding who pays for goods or services is the first step in determining value for that customer.

[Back to Top]

Reference: operation, process, tact, takt, yamazumi
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[Back to Top]

[Back to Top]

Among his many accomplishments is the funding of the Deming Prize (established by the Union of Japanese Scientists and Engineers and named in his honor), to promote the continued development of quality control in Japan.

Reference: The W. Edwards Deming Institute, 14 points, PDCA/Deming cycle

[Back to Top]

Reference: 3P
Benefits:

[Back to Top]

Reference:
Benefits:

[Back to Top]

• Define
• Measure
• Analyze
• Improve
• Control

Reference: Six Sigma

[Back to Top]

Reference:
Benefits:

[Back to Top]

In a mass production environment, large batches are run to 'amortize' the cost of setups to each production unit. This minimizes the importance of setup time on the production flow. In a lean environment, production is leveled according to customer demand, requiring the constant reduction in setup times.

Mass production example: A plant makes 3 products - A, B, and C. The plant makes 100 of A, then 100 of B, then 100 of C, each taking about a day (single shift operation). EPE = 3 days. We will require one setup per day. Even though demand isn't equal for the 3 products, we produce them this way because their setup times are roughly equivalent, as are their production times. The result is that we'll build some inventory, but our standard unit costs will look good.

Lean production example: Based on demand, we know we sell 50 A's, 25 B's, and 25 C's each day. We set our 'leveled' production at A:A:B:C. EPE = 19.2 minutes. We will require 9 setups per hour. (480 minutes in an 8 hour shift, 100 items can be produced, 4.8 minutes per item, times 4 items in each interval).

While the above example excludes the actual affect of setup times, it is relatively easy to see that in the 'lean' example, many more setup will be required. This emphasizes the need to reduce setup times, not only to reduce setup costs, but to increase the available production time within the shift.

Reference: mixed-model production, setup time

[Back to Top]

Reference: MRP/MRPII

[Back to Top]

[Back to Top]

Reference: customer
Benefits: The ability to distinguish 'internal' from 'external' customers is critical to understand how various types of waste are imposed on systems. Since internal customers don't pay for goods or services, anything they request in addition to value-added tasks is waste.

[Back to Top]

Reference: internal setup, setup time, SMED/Changeover Reduction
Benefits: Separating external tasks can reduce setup times significantly, increasing both efficiencies and responsiveness.

[Back to Top]

Reference: LIFO
Benefits: For inventory which ages, FIFO systems assist in managing inventory to minimize spoilage/expiration. In production areas, FIFO reduces the need to access inventory from the 'production side', reducing the required size of the production area (since inventory can generally be loaded from the rear or aisle-side areas).

[Back to Top]

Reference: Zero Quality Control
Benefits:

[EXAMPLE] - - [Back to Top]

[Back to Top]

Reference:
Benefits:

[Back to Top]

[Back to Top]

Craft production is characterized by highly skilled workers and simple but flexible tools to make exactly what the consumer asks for, one item at a time. The result is that consumers get exactly what they want but at a relatively high cost. Mass production is characterized by narrowly skilled professionals to design products made by unskilled or semiskilled workers tending large, single-purpose machines. The machines produce standardized products in very high volume.

In contrast, lean production is characterized by multiskilled workers at all levels of the organization, and uses highly flexible, increasingly automated machines to produce large volumes of products in enormous variety.

[Back to Top]

Reference: 3G
Benefits: Effective solutions cannot be made in an office, meeting room, or classroom. The only way to truly know is to 'go to GEMBA'.

[Back to Top]

Dr. Goldratt is the author of "THE GOAL" (and many other TOC books), an underground best seller that utilizes a non-traditional approach to convey important business information--it is a business textbook written in novel form, disguised as a love story. The ideas illustrated in "THE GOAL" underscore Dr. Goldratt's Theory of Constraints, an overall framework for helping businesses determine:

• What to change - what is the leverage point
• What to change to - what are the simple, practical solutions
• How to cause the change - overcoming the inherent resistance to change.

Reference: Theory of Constraints

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: hoshin planning
Benefits: Achieving a plan must be predecated by not only having a plan, but sharing it and obtaining support. Hoshin Kanri allows these plans or visions to be supported by the organization as a whole, and allows everyone to understand their impact on these visions.

[Back to Top]

Benefits: Linking local action plans to the overall goals of the organization provides a means for everyone to become involved in realizing the organizational vision. Managing this process year to year ensures that the organization continues to grow and evolve with its customers.

[Back to Top]

Over time, many other 'houses' have been developed, mostly complicating (and sometimes completely obfuscating) lean implementations. See 'OTHER EXAMPLES'.

Reference: Toyota Production System
Benefits: A simple graphic model can help people understand our goal and methods, making it easier for them to contribute in the journey.

[OTHER EXAMPLES] - - [Back to Top]

Reference: SMED
Benefits:

[Back to Top]

1. A technique to re-establish continuous improvement in an area when improvements appear to have 'stalled'.
2. A technique used to focus improvement in a specific area (over a short time period).

Improvement workshops are generally planned over a 6 to 10 week period (to identify objectives, coordinate resources), and are implemented over a period of 5 days. This implementation generally includes training of key personnel in a target area, actual measurement of of waste/flow, implementation of new work procedures & layouts, and reporting of results to senior management. Success of a workshop can be validated over time by monitoring & auditing as part of normal project follow-up.

Historically, improvement workshops have been projects developed by autonomous supplier study groups (jishuken), in order to solve problems in the supply chain. Contemporary (U.S.) improvement workshops are almost exclusively used to change factory layouts & work procedures, but workshops focusing on more 'systems' issues are coming into practice.

Reference: AIW, jishu kanri, jishuken, kaizen blitz, kaizen event, RIW
Benefits: Improvement workshops can bring focus on continuous improvement, as well as a better understanding of specific continuous improvement techniques. Proper follow-up ensures that projected gains are realized and maintained.

[Back to Top]

Reference: 5S, CANDO
Benefits: Much time is lost (in factories, offices) looking for tools & equipment, and generally preparing the workspace to perform tasks. A clean & organized work area is naturally a more efficient work area. Areas that are well maintained show the pride and dedication of those who work in the area. Excess suppliers & equipment that is identified may be of use in other areas of the company. Eliminating 'storage' within the work area frees valuable real estate. Eliminating excess supplies & tooling, along with visual standards for storage and cleaning reduces the amount of time spent searching for out of place items.

[Back to Top]

Reference: lagging metrics, leading metrics

Contributed by: Robert Tristani

[Back to Top]

Reference: customer, external customer, value-added, waste
Benefits: The ability to distinguish 'internal' from 'external' customers is critical to understand how various types of waste are imposed on systems. Since internal customers don't pay for goods or services, anything they request in addition to value-added tasks is waste.

[Back to Top]

Reference: external setup, setup time, SMED/Changeover Reduction
Benefits: Separating internal tasks from external tasks can reduce setup times significantly, increasing both efficiencies and responsiveness.

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: Zero Quality Control
Benefits: 'Intelligent' machines require less interaction (and less labor) from operators. Fewer mistakes will result in fewer defects. Fewer defects will result in less material, labor (rework, handling), and space costs. Higher levels of quality will result in better delivery, lower customer complaints & returns, and better market position.

[EXAMPLE] - - [Back to Top]

Reference: improvement workshop, jishuken
Benefits: People working in specific areas are much closer to problems in those areas. They will often have solutions to these problems, usually at a lower technical level and cost than solutions developed by outside entities. If these workers are involved in developing and implementing these solutions, they are much more likely to support the new solutions, to ensure they are successful.

[Back to Top]

Traditional 'jishuken' groups are teams made up of various continuous improvement people from a companies supply base. Meeting at various locations throughout the course of a year, the group works on projects to reduce waste & improve flow. Jishuken groups is where the concept of improvement workshops originated, a technique used to plan & implement specific system improvements.

Reference: improvement workshop, jishu kanri
Benefits: Members of supplier groups bring a wide variety of skills, along with different perspectives, on problems which affect large portions of the value stream.

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Kaikaku is generally implemented through managers & engineers, due to the resources required for these type of improvement projects. Examples of kaikaku projects include new system/equipment purchases, revising area layouts, and procedural changes implemented within improvement workshops.

Reference: improvement workshop, kaizen
Benefits: Large-scale improvements are generally not implemented by workers on the shop floor, as they don't have access to required resources. Improvements such as major layout revisions or system/equipment purchases may make it possible for higher levels of improvement for the future.

[Back to Top]

In a lean context, kaizen means everyone applying small (low impact & low cost) improvements each and every day. Applied in this manner, kaizen can have the same affect as large, costly, infrequent changes (kaikaku). This philosophy can be demonstrated with the Theory of the Learning Curve (see example).

The term 'kaizens', is often misused as a reference to 'improvement workshops' (e.g., 'kaizen blitz' or 'kaizen event').

Reference: kaikaku
Benefits: By involving everyone in continuous improvement (as opposed to only Industrial Engineers, Manufacturing Engineers, managers, or other improvement professionals), the results of the 'learning curve' can truly be achieved. Lower costs, faster throughput, and higher quality will result. Additionally, when people are actually involved in change, they are more accepting of it, especially when it comes in smaller increments.

[EXAMPLE] - - [Back to Top]

Reference: AIW, improvement workshop, kaizen event, RIW

[Back to Top]

Reference: AIW, improvement workshop, kaizen blitz, RIW

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: in-process metrics, leading indicators
Benefits: The benefits of using lagging metrics is that they can be made very accurate, and several metrics can be overlaid on the same graph to show interactions.

Contributed by: Robert Tristani

[Back to Top]

Reference: in-process metrics, lagging indicators
Benefits: The benefits of using leading metrics are that adjustments can be made to shop floor conditions (manning, material, tools, etc.) before a problem arises. The downside of using leading metrics is that they are never guaranteed to be 100% accurate.

Contributed by: Robert Tristani

[Back to Top]

This definition is deceptively simple, which is proven every day by companies which misinterpret and mis-apply lean tools and techniques, in a vain attempt to 'save' their way to greater profitability. For example, many organizations 'cherry pick' and implement specific lean tools, without understanding the effects of culture or the true nature of system problems.

Reference: 33 lean tools
Benefits: Organizations which adopt lean principles are more responsive to their markets, and become significantly more competitive and profitable.

[Back to Top]

Reference:
Benefits:

[Back to Top]

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference: FIFO
Benefits:

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: vendor managed inventory, water spider
Benefits:

[Back to Top]

Reference: Zero Quality Control
Benefits: Fewer mistakes will result in fewer defects. Fewer defects will result in less material, labor (rework, handling), and space costs. Higher levels of quality will result in better delivery, lower customer complaints & returns, and better market position.

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

[Back to Top]

MRPII (Manufacturing Resource Planning) evolved from MRP, by combining 'capacity planning' models with MRP models. These 'capacity planning' models use quality & lead time data to plan order releases to the shop floor.

ERP (Enterprise Resource Planning) has extended MRPII to all business functions, and also encompasses supply chain management principles.

It is often said that MRP/MRPII/ERP are 'push' systems, and are therefore incompatible with lean production principles. The truth is that MRP/MRPII/ERP systems are wonderful 'information' systems, and can be quite compatible with lean systems, as long as they aren't used to drive production through 'push' methods.

Reference: pull, push

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[Back to Top]

Type I muda: Non-value-added tasks which are essential (see NVAE) under current conditions. Changing these business conditions is required to eliminate this type of waste.

Type II muda: Non-value-added tasks which can be eliminated immediately.

Reference: 3 forms of waste, 7 wastes, mura, muri, NVA, NVAE, waste
Benefits: Understanding the nature of waste is the first step in being able to recognize it, and thereby work to eliminate it. All of 'lean' is centered around the identification & elimination of waste, in all it's various forms.

[EXAMPLES] - - [Back to Top]

Reference: 3 forms of waste, 7 wastes, muda, muri, standard work, waste
Benefits: Tasks which are performed inconsistently are very difficult to improve. In fact, it is difficult to actually prove that any change has happened at all. From a statistical standpoint, it is recommended to reduce process variation first, and then eliminate 'muda' and 'muri' forms of waste. By working in this manner, improvements will be much more visible and tangible, inspiring more support and participation in continuous improvement efforts.

[Back to Top]

Reference: 3 forms of waste, 7 wastes, muda, mura, waste
Benefits: Designing tasks for a wider range of workers adds significant flexibility in not only scheduling production, but in staffing specific areas, lines, and work cells. It also allows for moving workers from job to job, increasing their process knowledge and value to the entire organization. Huge benefits can also be seen in safety (lower injury rates, fewer stress related injuries), in processing times, and in product defect rates.

[Back to Top]

Reference: Line balancing, chaku-chaku
Benefits: Minimizing motion (one of the 7 classic wastes) reduces costs, and allows operators to be more flexible to the demands of daily production requirements.

[Back to Top]

Reference: customer, value, value-added, NVAE, Type II muda, waste
Benefits: Understanding the true meaning of value is the first step to being able to objectively identify waste.

[Back to Top]

• Current processes or systems require the tasks to be performed
• Processes or systems require re-design before the tasks can be eliminated
• There is a specific regulatory requirement
• There is a specific customer requirement (such as a required inspection)

Reference: customer, value, value-added, NVA, Type I muda, waste
Benefits: Understanding the true meaning of value is the first step to being able to objectively identify waste.

[Back to Top]

Reference: SMED

[Back to Top]

Reference:
Benefits:

[OEE EQUATIONS] - - [Back to Top]

[Back to Top]

Ohno became an Executive Vice President at Toyota in 1975, and evnetually became the President of Toyota Gosei (a Toyota subsidiary). In developing the Toyota Production System, Ohno often credited both Henry Ford and American supermarkets, for his accomplishments with production flow and Just-In-Time techniques, respectively.

Reference: Toyota Production System: Beyond Large Scale Production

[Back to Top]

Reference: Batch flow
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: process

[EXAMPLE] - - [Back to Top]

Reference: SMED
Benefits: Shorter setups are less costly, and allow for ever decreasing batch sizes & production runs. Smaller production runs flow more quickly through the factory (better customer response), and are less likely to produce defects.

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

• PLAN: Set targets/goals, plan how to get there
• DO: Train, learn, implement solutions
• CHECK: Check the effects of what you’ve done
• ACT: Take action on what you’ve found
  (then do it all over again…!)

Reference: W. Edwards Deming
Benefits: Continuous improvement is an interative process. By continually reviewing earlier solutions, new 'low-hanging fruit' can be identified, and low-cost, longer-term solutions are possible.

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference: Zero Quality Control
Benefits: Fewer mistakes results in fewer defects. Fewer defects results in less material waste, labor (rework, handling), and space costs. Higher levels of quality results in better delivery, lower customer complaints & returns, and better market position.

[Back to Top]

Reference: Six Sigma

[Back to Top]

Reference: operation

[EXAMPLE] - - [Back to Top]

[Back to Top]

In a 'pull' system (as opposed to traditional 'push' systems), production is restricted to actual downstream requirements.

Reference: batch, kanban, push production
Benefits: Pull production keeps WIP inventory to a minimum, which not only reduces space requirements, but labor requirements as well. Additionally, quality issues are much easier to detect in pull systems, which can have a significant effect on defect rates.

[EXAMPLE] - - [Back to Top]

In a 'push' system, each work center produces to its capacity, regardless of downstream requirements.

Reference: batch, kanban, pull production
Benefits: Push production both builds inventory and starves downstream work centers, due to line imbalance. Even if lines are balanced, inventory, labor, & maintenance problems will throw the system out of balance, with the same results. Also, quality problems are difficult to find in large quantities of WIP, magnifying the costs related to producing defects.

[EXAMPLE] - - [Back to Top]

Reference: Six Sigma
Benefits: In Six Sigma, QFD prioritizes actions, to improve the process/product to better meet customer expectations.

[Back to Top]

Reference: Center for Quick Response Manufacturing, Quick Response Manufacturing: A Companywide Approach to Reducing Lead Times (Suri, 1998)
Benefits: Reduction in lead times for product concept, design, and production.

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: AIW, improvement workshop, kaizen blitz, kaizen event

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: 5S

[Back to Top]

Reference: 5S

[Back to Top]

Reference: 5S

[Back to Top]

Reference: 5S

[Back to Top]

As part of a SMED/Changeover Reduction project, setup time is further divided into 'internal' and 'external' components.

Reference: external setup, internal setup, SMED/Changeover Reduction

[Back to Top]

The Shingo Prize for Excellence in Manufacturing was established in 1988 by Utah State University, to promote awareness of Lean manufacturing concepts and recognize companies in the United States, Canada, and Mexico that achieve world-class manufacturing status. Also in 1988, Utah State University awarded Shingo an honorary Doctorate in Business, recognizing his contributions in the areas of Lean and World-class Manufacturing.

Reference: SMED, Zero Quality Control, A Study of the Toyota Production System, The SMED System, The Shingo Production Management System, Non-Stock Production, Key Strategies for Plant Improvement, Source Inspection & the Poke-Yoke System, The Shingo Prize for Excellence in Manufacturing

[Back to Top]

Reference: 5S

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

[Back to Top]

[Back to Top]

In statistics, the Greek letter 'sigma' is used to define a measure of variability (dispersion), one 'standard deviation' from a process 'mean'. If a process is 'six sigma' capable, it means that the process should have 3.4PPM outside the specified engineering limits. This chart compares standard deviation, PPM, and process capability (upper tail probablilities):

	Included %	PPM (Raw)	Cp	PPM (Shifted**)	Cpk
1 sigma	84.1	158,655	---	691,462	0.33
2 sigma	97.7	22,750	0.17	308,538	0.67
3 sigma	99.87	1350	0.50	66,807	1.00
4 sigma	99.9968	31.7	0.83	6210	1.33
4.5 sigma	99.99966	3.4	1.00	1350	1.50
5 sigma	99.999971	287PPB	1.17	233	1.67
6 sigma	99.999999901	1PPB	1.50	3.4	2.00

Cp is the 'capability index', which indicates the 'natural tolerance' of a process compared to the engineering specification.

'Cpk' is a similar index, which assumes that normal 'process drift' will occur over large production volumes.

**A six sigma 'rule of thumb' is that a process will drift 1.5 standard deviations over the long run (this number was 'observed' at Motorola, and may vary depending on the process being measured). This '1.5 sigma' shift is why 6 sigma capability is reported at 3.4PPM, instead of 1PPB.

Reference: Design for Six Sigma, DMAIC, PPM, QFD

[EXAMPLE] - - [Back to Top]

Shigeo Shingo asserted that any setup could be reduced to less than 10 minutes. While this may be true, conventional wisdom is that an 'economical' setup time should be on the order of 10-15% of the production run time, and that production batch sizes should be continually reduced. The following steps are used to reduce setup times:

• Define the 'setup process' - A 'setup' is defined from the time the last production piece is finished, until the first good piece is produced.
• Identify the internal elements, the external elements, and any obvious waste.
• Separate the internal elements from the external elements.
• Convert internal elements to external, wherever possible.
• Streamline all aspects of the setup, reducing batch sizes as setups move in to the '10-15% run time' range.

NOTE: An 'obvious' way to reduce setup times is through the liberal use of automation. Automation, however, can codify and institutionalize various wastes, all of which should be eliminated to the highest degree possible. Additionally, automation usually comes at a relatively high cost, making it difficult to change or remove. Before considering automation, a review of the '3 Phases of Improvement' are recommended.

Reference: batch, external setup, internal setup, setup time, Shigeo Shingo
Benefits: Shorter setups are less costly, and allow for ever decreasing batch sizes & production runs. Smaller production runs flow more quickly through the factory (better customer response), and are less likely to produce defects.

[Back to Top]

Reference: Zero Quality Control
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

The formula for tact (direct labor hours per piece, put forth by Shingo) is:

Total working time
Production quantity

where
'Total working time' = the amount of labor hours to produce a batch, and
'Production quantity' = the size of the batch.

The forumla put forth by Ohno (see below) has become the accepted formula for takt time.

Shingo's formula differs from the formula for takt, even if the 'required production quantity' is used. 'Total working time' is calculated in man-hours, while takt's 'available operating time', is how many hours the process runs per day.

Reference: cycle time, operation, process, takt

[EXAMPLE] - - [Back to Top]

Available operating time
Production requirement

where
'Available operating time' = the amount of time the production line actually runs, and
'Production requirement' = the amount of a particular product actually demanded by the customer.

Takt time is then the 'desired' cycle time of a process, as opposed to the actual cycle time.

Reference: cycle time, operation, process, tact, yamazumi
Benefits: Understanding the rate at which customers demand specific products allows us to better determine how that demand is met, and how many resources are required to meet it.

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

The TOC process for alleviating bottlenecks is:

• Identify the Constraint - Measure the throughput of each workstation.
• Exploit the Constraint - Ensure the constraint is working at full capacity, & eliminate all waste from the constraint.
• Subordinate the Constraint - Provide support to the constraint.
• Elevate the Constraint - Add resources to increase the capacity of the constraint.
• Identify the New Constraint - Once a constraint has been alleviated, another will surface (either inside, or outside the process).

Reference: constraints, Eli Goldratt
Benefits: A lean system cannot provide more output than the bottleneck operation. Increasing bottleneck capacity will significantly improve process output.

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: customer, non-value-added (NVA), NVAE
Benefits: Understanding the true meaning of value is the first step to being able to objectively identify waste.

[Back to Top]

For example, due to system errors (material condition, machine condition, process/procedure errors, human error), it is common to have several inspections to ensure product quality. However, while the customer wants to pay for a defect free product, the customer doesn't care how many inspections are performed (and in fact, would rather pay for none of them). Even if an inspection is 'required' (as in many supply chains), it should still be considered waste, and the responsibility of the supplier to 'design out' the need for the inspection, then convince the customer to change the inspection requirement.

Reference: 7 classic wastes, customer, value-added, waste
Benefits: Understanding the true meaning of value is the first step to being able to objectively identify waste.

[Back to Top]

Reference:
Benefits:

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: 3 forms of waste, 7 wastes, muda, mura, muri, NVA, NVAE, value, value-added
Benefits: Understanding the nature of waste is the first step in being able to recognize it, and thereby work to eliminate it. All of 'lean' is centered around the identification & elimination of waste, in all it's various forms.

[EXAMPLES: Types of Muda] - - [EXAMPLES: Categories of Waste] - - [Back to Top]

Unlike a 'floater', a water spider is assigned specific tasks, such as replenishing raw material inventories (via milk run), common area clean-up, etc... Water spider duties should not include tasks which take them away from the production area, or detract from their specific, assigned duties (the water spider is not the 'paperwork' or '5S' person). A water spider should be considered the 'NASCAR pit crew' for the production team, without which it would be impossible to 'win the race'.

Management may tend to view the water spider position as 'excess', or expendable. There is also a tendency to assign an inexperienced person to this position, with the thought that it is a good position to 'train' in. However, the exact opposite is the case. In an efficiently designed cell, the water spider is not only an absolutely critical member of the production team, but the position should be staffed with the best, most experienced personnel. This forces each workstation to be designed for an 'average' team member, and allows the water spider to assist or step in to any production position (temporarily, not to interfere with milk runs & other production support) when necessary.

The water spider position really should be viewed as the only indispensible position, to be manned regardless of how many production personnel are available. If this position isn't manned, the production cell cannot run, due to material shortages.

Reference: milk run, mizusumashi, value-added (VA)
Benefits: In a properly designed production cell, a water spider can raise the efficiency of the cell by as much as 90%, by allowing the rest of the production personnel to focus exclusively on value-added work. A good water spider can also be an essential part of any continuous improvement effort, constantly reducing inventories, managing kanbans, and assuring good communication among team members.

[Back to Top]

[Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference:
Benefits:

[EXAMPLE] - - [Back to Top]

Reference: cycle time, operation, process, takt time
Benefits: Unbalanced processes will not meet customer demand. Balanced processes allow production to occur at the required rate. The Yamazumi board provides a mechanism to quickly rebalance a process when takt changes, and allows a visual indication of which operations are overloaded (beyond takt), and which are underutilized.

[EXAMPLE] - - [Back to Top]

Contributed by: Tom Stogsdill, CI Manager, Dana Automotive Systems Groups

[Back to Top]

Reference: Zero Quality Control
Benefits:

[Back to Top]

• Source inspection - Ensuring incoming materials & WIP are free from defects before being processed
• Zero defects - Ensuring no defective materials are passed along to the next work area
• Pokeyokes - Simple fixtures which either prevent mistakes, or signal that a mistake has been made
• Autonomation/jidoka - Higher level sensing devices which perform automated inspections

Reference: autonomation, jidoka, poka-yoke, source inspection, zero defects
Benefits: Fewer errors in processes translate directly to fewer defects in products. Fewer defects means less time wasted on rework, and fewer labor resource requirements to manage defective parts. Less scrap means lower material costs, reduced inventory requirements, reduced space requirements, and less costs due to inventory management. Fewer defective products mean less defects will make it to market, fewer customer complaints, and reduced opportunities for customers to sample a competitors product.

[Back to Top]