Benefits of lean - ANSWER -Reduce the waste (non-value added)
-Consequently results in:
-Reduced cycle times
-Greater throughput
-Better productivity
-Improved quality
-Reduced costs
(All of these improve customer satisfaction and the company's competitive
advantage)
Lean thinking fundamentals - ANSWER -Specify value (value is defined by
customers in terms of specific products and services)
-Create value stream
(map all steps that bring a product or service to the customers to identify and
eliminate wastes)
-Establish flow (the continuous movement of products, services and information
down the value stream)
-Implement pull (nothing is done by the upstream process until the downstream
customer signals the need)
-Work for perfection (pursue continuous improvement again and again)
Understand "value" - ANSWER -The inherent worth of a product as judged by
the customer and reflected in its selling price and market demand
-What the customers are willing to pay for
Value added process - ANSWER -A process or step that transforms or shapes
a product or service which is eventually sold to a customer
Non-value added process - ANSWER -Process steps that take time, resources,
or space, but do not add value to the product or service
Muda - ANSWER -Japanese word for waste
,-Any activity that absorbs resources, and hence adds costs and time, but adds no
value to customers (customers only pay for value added activities)
-Waste is a symptom (minimize necessary wastes, eliminate pure wastes)
-Typically 1-10% of the activities are value added
The 8 wastes (TIMWOOD-T) - ANSWER -Transportation
-Inventory
-Motion
-Waiting
-Over production
-Over processing
-Defects
-Talent (skill)
Transportation - ANSWER -Unnecessary movement of material or product
-Ex: Transport a WIP to the next process location which is not adjacent to the
current one, A big container travels with small items, or too many items to be
transported using a small container
-Waste because:
--Consumes resources and hence adds to the costs
--Adds to the product cycle time
--Adds to the risks of being damaged, lost and delayed
Inventory - ANSWER -Material or product that is used to cover for
inefficiencies
-Causes:
--Inaccurate demand and forecasting
--Poor inventory tracking and planning
--Unbalanced production processes
--Push instead of pull
-Waste because:
--Adds to the storage and moving costs
--Ties up capital but has not yet produced an income
--May be difficult to retrieve and adds risks of being damaged
--Reduces customer responsiveness
Motion - ANSWER -Unnecessary movement of people; multiple hand-offs
, -Ex: Looking for tools, parts, etc. (poor workplace organization), Running to
another portion of the building to get a printed doc, Searching for a long time in
the computer, Moving around pretends to be working
-Waste because:
--Simply costs labor while adding no value
--Small time wasted on each motion can add up
--Interrupts production flow
Waiting - ANSWER -Elapsed time between processes when no work is being
done
-Ex: Downstream worker is idle while an upstream worker cannot finish their
part, Ineffective production planning, Waiting for management
approval/feedback
-Waste because:
--Costs valuable resource, labor
--Adds to the cycle time and customer response time
--May lead to overtime
--Causes low morale and loss of motivation
Over-production - ANSWER -Making/manufacturing in excess of customer
requirements; providing a service that is not really needed
-Ex: Producing more "just in case", Producing more than demand (e.g. large
batch sizes), Producing faster than desired, Producing products that are not a
priority
-Waste because:
--Adds to the inventory costs
--Consumes resources that are not (immediately) needed
--Takes the focus away from what the customers really want
-Taiichi Ohno described this as the root of all manufacturing evils
Over-processing - ANSWER -Adding unnecessary steps to a process;
redundancies between processes
-Causes:
--Lack of customer requirements
--Redundant inspections or approvals
--Poor design or configuration
--Altitude
-Waste because:
-Consequently results in:
-Reduced cycle times
-Greater throughput
-Better productivity
-Improved quality
-Reduced costs
(All of these improve customer satisfaction and the company's competitive
advantage)
Lean thinking fundamentals - ANSWER -Specify value (value is defined by
customers in terms of specific products and services)
-Create value stream
(map all steps that bring a product or service to the customers to identify and
eliminate wastes)
-Establish flow (the continuous movement of products, services and information
down the value stream)
-Implement pull (nothing is done by the upstream process until the downstream
customer signals the need)
-Work for perfection (pursue continuous improvement again and again)
Understand "value" - ANSWER -The inherent worth of a product as judged by
the customer and reflected in its selling price and market demand
-What the customers are willing to pay for
Value added process - ANSWER -A process or step that transforms or shapes
a product or service which is eventually sold to a customer
Non-value added process - ANSWER -Process steps that take time, resources,
or space, but do not add value to the product or service
Muda - ANSWER -Japanese word for waste
,-Any activity that absorbs resources, and hence adds costs and time, but adds no
value to customers (customers only pay for value added activities)
-Waste is a symptom (minimize necessary wastes, eliminate pure wastes)
-Typically 1-10% of the activities are value added
The 8 wastes (TIMWOOD-T) - ANSWER -Transportation
-Inventory
-Motion
-Waiting
-Over production
-Over processing
-Defects
-Talent (skill)
Transportation - ANSWER -Unnecessary movement of material or product
-Ex: Transport a WIP to the next process location which is not adjacent to the
current one, A big container travels with small items, or too many items to be
transported using a small container
-Waste because:
--Consumes resources and hence adds to the costs
--Adds to the product cycle time
--Adds to the risks of being damaged, lost and delayed
Inventory - ANSWER -Material or product that is used to cover for
inefficiencies
-Causes:
--Inaccurate demand and forecasting
--Poor inventory tracking and planning
--Unbalanced production processes
--Push instead of pull
-Waste because:
--Adds to the storage and moving costs
--Ties up capital but has not yet produced an income
--May be difficult to retrieve and adds risks of being damaged
--Reduces customer responsiveness
Motion - ANSWER -Unnecessary movement of people; multiple hand-offs
, -Ex: Looking for tools, parts, etc. (poor workplace organization), Running to
another portion of the building to get a printed doc, Searching for a long time in
the computer, Moving around pretends to be working
-Waste because:
--Simply costs labor while adding no value
--Small time wasted on each motion can add up
--Interrupts production flow
Waiting - ANSWER -Elapsed time between processes when no work is being
done
-Ex: Downstream worker is idle while an upstream worker cannot finish their
part, Ineffective production planning, Waiting for management
approval/feedback
-Waste because:
--Costs valuable resource, labor
--Adds to the cycle time and customer response time
--May lead to overtime
--Causes low morale and loss of motivation
Over-production - ANSWER -Making/manufacturing in excess of customer
requirements; providing a service that is not really needed
-Ex: Producing more "just in case", Producing more than demand (e.g. large
batch sizes), Producing faster than desired, Producing products that are not a
priority
-Waste because:
--Adds to the inventory costs
--Consumes resources that are not (immediately) needed
--Takes the focus away from what the customers really want
-Taiichi Ohno described this as the root of all manufacturing evils
Over-processing - ANSWER -Adding unnecessary steps to a process;
redundancies between processes
-Causes:
--Lack of customer requirements
--Redundant inspections or approvals
--Poor design or configuration
--Altitude
-Waste because:
