just-in-time (JIT) production: a philosophy of manufacturing based on planned elimination of all
waste / continuous improvement of productivity; in a broad way, it applies to all forms of
manufacturing and to many service industry as well
lean: a philosophy of production that emphasizes the minimization of the amount of all the
resources (including time) used in the various activities of an enterprise
1 3 . 1 T h e L e a n P e r s p e c t i v e o n Wa s t e
- waste: any activity that does not add value to the good / service in the eyes of the consumer
- muda 1: a japanese term meaning waste
- eight commonly recognized sources of waste:
i) overproduction,
ii) waiting,
iii) unnecessary transportation,
iv) inappropriate process,
v) unnecessary inventory,
vi) unnecessary / excess motion,
vii) defects, and
viii) underutilization of employees
13.2 The Lean Perspective on Inventory
- strong emphasis placed on reducing raw material, work-in-process, and finished goods inventories
throughout the system
- inventory in the s.c. is often compared to water in a river: if the "water" is high enough, it will cover all
the "rocks" (quality problems, absenteeism,...) and everything will appear to be running smoothly; the
lean approach gradually removes the "water" until the first "rock" is exposed, resolving that problem,
removing more water, resolving the next problem, removing even more water... and so on
13.3 Recent Developments in Lean Thinking
- lean six sigma: combines the organizational elements / tools of Six Sigma with Lean's focus on waste
reduction
- lean s.c. management: an extension of the Lean philosophy to s.c. efforts beyond production; seeks to
minimize the level of resources required to carry out all s.c. activities
1 That is of very high importance, I guess!!
- 95 - Jannis Mertens
waste / continuous improvement of productivity; in a broad way, it applies to all forms of
manufacturing and to many service industry as well
lean: a philosophy of production that emphasizes the minimization of the amount of all the
resources (including time) used in the various activities of an enterprise
1 3 . 1 T h e L e a n P e r s p e c t i v e o n Wa s t e
- waste: any activity that does not add value to the good / service in the eyes of the consumer
- muda 1: a japanese term meaning waste
- eight commonly recognized sources of waste:
i) overproduction,
ii) waiting,
iii) unnecessary transportation,
iv) inappropriate process,
v) unnecessary inventory,
vi) unnecessary / excess motion,
vii) defects, and
viii) underutilization of employees
13.2 The Lean Perspective on Inventory
- strong emphasis placed on reducing raw material, work-in-process, and finished goods inventories
throughout the system
- inventory in the s.c. is often compared to water in a river: if the "water" is high enough, it will cover all
the "rocks" (quality problems, absenteeism,...) and everything will appear to be running smoothly; the
lean approach gradually removes the "water" until the first "rock" is exposed, resolving that problem,
removing more water, resolving the next problem, removing even more water... and so on
13.3 Recent Developments in Lean Thinking
- lean six sigma: combines the organizational elements / tools of Six Sigma with Lean's focus on waste
reduction
- lean s.c. management: an extension of the Lean philosophy to s.c. efforts beyond production; seeks to
minimize the level of resources required to carry out all s.c. activities
1 That is of very high importance, I guess!!
- 95 - Jannis Mertens
