Lean Manufacturing is a manufacturing term used to describe a manufacturing, industrial or service operation which operates with little or no type of muda (waste), thus making the operation very efficient and only consisting of value adding steps from start to finish, as can be seen in a value stream map. The term lean centers around the idea that the customer purchasing a good or service is only willing to pay for the value added "steps" in making or delivering such a service. Therefore the non value adding "steps" and its associated costs are bared by the manufacturing company, thus reducing margins for the manufacturer. In addition to eliminating waste, lean manufacturing seeks to provide optimum quality by building in a method whereby each part is examined immediately after manufacture, and if there is a defect, the production line stops so that the problem can be detected at the earliest possible time. The lean manufacturing method has much in common with the Total Quality Management (TQM) strategy. Both strategies empower workers on the assembly line, in the belief that those closest to production have the greatest knowledge of how the production system should work. Many of the concepts are derived from the Toyota Production system, who are considered to be the pioneers in several lean manufacturing concepts and principles.
Manufacturing went through a revolution at the start of the 20th century with the creation of the assembly line to mass produce the Ford model T by Henry Ford. Even then when the lean manufacturing concept was years away, Ford had a focus on reducing time and material waste, increasing quality, and lowering cycle times, in order to achieve a lower cost vehicle which was reflected in the price reduction of the model T year on year. This focus allowed him to reduce costs, even though he payed his workers well, and provide a great value product to the customer.
Toyota later developed the Just in time model (JIT) as we know it today. The model aims at continuous flow of materials through a process with minimal inventory or work in progress (WIP) through the different value adding work stations or stages. JIT is pull system which adapts to consumer demand, and is usually implemented with a kanban system.
Toyota later developed the Just in time model (JIT) as we know it today. The model aims at continuous flow of materials through a process with minimal inventory or work in progress (WIP) through the different value adding work stations or stages. JIT is pull system which adapts to consumer demand, and is usually implemented with a kanban system.
In today's world more and more organizations are realizing how important quality and customer satisfaction is in order to sustain a competitive business. There is also a pressure to reduce manufacturing, operating and inventory costs and increase efficiencies not only in manufacturing but in different types of industries, such as banking, business and community services. The challenge today is adapting these concepts and technologies to this wide range of industries successfully. The key to success in implementing lean manufacturing principles in any organization is to foster a culture of continuous improvement within its company culture, quality focus, lean thinking, and customer satisfaction as the organization's ultimate goal. This shift in culture, if not already present, must come from top management and be embraced by all layers of the organization.
The ten rules of lean production can be summarized:
1. Eliminate waste
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement (Kaizen)
2. Minimize inventory
3. Maximize flow
4. Pull production from customer demand
5. Meet customer requirements
6. Do it right the first time
7. Empower workers
8. Design for rapid changeover
9. Partner with suppliers
10. Create a culture of continuous improvement (Kaizen)
