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Lean Thinking

This document provides an overview of Lean Thinking and Lean Production. It discusses the origins of Lean which started with modifications to Toyota's manufacturing system by Shigeo Shingo and Taiichi Ohno after World War 2. Lean aims to eliminate waste and reduce lead times through continuous flow and pulling from customer demand rather than pushing supply. The five steps of Lean Thinking are defined as identifying value from the customer perspective, mapping the value stream, reducing lead times, producing only to customer pull, and synchronizing processes.

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Prashanth Abhi
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407 views14 pages

Lean Thinking

This document provides an overview of Lean Thinking and Lean Production. It discusses the origins of Lean which started with modifications to Toyota's manufacturing system by Shigeo Shingo and Taiichi Ohno after World War 2. Lean aims to eliminate waste and reduce lead times through continuous flow and pulling from customer demand rather than pushing supply. The five steps of Lean Thinking are defined as identifying value from the customer perspective, mapping the value stream, reducing lead times, producing only to customer pull, and synchronizing processes.

Uploaded by

Prashanth Abhi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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LEAN THINKING

AN OVERVIEW

KANZEN INSTITUTE
ASIA PACIFIC
Lean Production - Brief History

History of Lean Production

After World War II, Shigeo Shingo & Taiichi Ohno


started modifying Toyota’s manufacturing processes
to form the Toyota Production System (TPS)

Hiroyuki Hirano called this as Just-In-Time (JIT)


Production

The term “Lean Production” was coined in 1990 by


Prof. James P. Womack in his book “The Machine
that changed the world” – this book benchmarked
industrial performance data across the world
KANZEN INSTITUTE
ASIA PACIFIC
Lean Thinking

“The only sure thing about forecasts is that they are wrong”
- Preface to Lean Thinking, 2003 edition

How do we make an existing mass production based industry


actually Lean?

What are the guiding principles?

What happens after we become Lean? What next?

KANZEN INSTITUTE
ASIA PACIFIC
What is Lean?

• Lean is a paradigm …a way of thinking


• It is an all encompassing culture, a behavior or mindset that focuses
on the Customer.
• Lean Management is about understanding is important to the
customer and focusing the resources on doing only that - Anything
that the Customer does not perceive as adding Value is considered
Waste.
• Lean seeks a Continuous Flow for all value-add process steps
through the system by Elimination of Waste, thereby reducing the
Time to Customer.

• Lean is not Mean


KANZEN INSTITUTE
ASIA PACIFIC
What is Lean?

Lean is ‘More and More with Less and Less’


Central theme of Lean is ‘Waste Elimination’

• Less effort – More output


• Less rejection – More yield
• Less inventory – More flow
• Less thruput time – More orders
• Less delays – More customer satisfaction
• Less investment – More returns
• Less cost – More profits
• Less variations – More reliability

KANZEN INSTITUTE
ASIA PACIFIC
WHAT IS LEAN

“All we are doing is looking at the timeline from the moment


the customer gives us an order to the point when we collect
the cash. And we are reducing that timeline by reducing the
non-value-added wastes”

Taiichi Ohno
Father of TPS

Lean = Elimination of Waste

KANZEN INSTITUTE
ASIA PACIFIC
Lean - Bring Supplier and Customer
Closer

KANZEN INSTITUTE
ASIA PACIFIC
Lean vs. Traditional Companies

Lean Companies Traditional Companies

Let the customer pull – Make products to forecast


this triggers production (push system)
Can fill a customer order Have long lead times
very quickly
Strive for zero inventories See inventory as a necessary
buffer for uncertain demand
Change quickly to the next model Allow few changes to standard
and grow easily in prod. life cycle products and follow-ups
(simple non-permanent equipment) (fixed lines – content & equipment)

Adjust capacity by assigning Have fixed, dedicated lines


resources based on daily demand
Ship direct to customers Ship to distributors
Choose strategic suppliers that help Keep suppliers in the dark regarding
them grow in capacity, quality, growth, technology, product
technology, flexibility, etc. introductions, etc.

KANZEN INSTITUTE
ASIA PACIFIC
The Five Steps of Lean Thinking

1. Define or specify value from the point of view of


Customer
2. Identify the Value stream – “concept to launch /
order to delivery/ supplier to end customer”
3. Make Value Flow and Reduce Lead time
4. Produce only to satisfy the Pull
5. Synchronize all processes (Perfection)

KANZEN INSTITUTE
ASIA PACIFIC
Specify Value

• Who specifies the value


– The producer or the customer?
• How is value defined
– What can be made using existing assets and
technologies
– or what the customer really wants ?
• Providing the wrong good or service is clearly
a WASTE!

KANZEN INSTITUTE
ASIA PACIFIC
Core statement

We need to do things not only correctly,

but also do the correct things!!


KANZEN INSTITUTE
ASIA PACIFIC
Key to defining value

• Firstly recognise who your customer is!


• Start by challenging traditional definitions of
“Value” – Dialogue with the customer
• Define value in terms of the whole product /
service including service components
• Critical need to accept redefined value
• Target cost is a part of Value definition –
what is the Muda free cost
KANZEN INSTITUTE
ASIA PACIFIC
How We Change

Paradigms,
Perceptions

Way
Thoughts,
of
Under-
Being/
standing
Culture

Habits Behavior
Systems Work

KANZEN INSTITUTE
ASIA PACIFIC
The Lean Enterprise

Lean Journey in all aspects of Business

Lean Operations
Lean Supply and Delivery Chain
Lean Accounting

COMMENCE THE LEAN JOURNEY

KANZEN INSTITUTE
ASIA PACIFIC

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