2. History of Lean
1910
Mass Production/Ford’s Model T
1940’s-1970’s
Toyota Production System
1980’s
Just-In-Time & TQM
1990’s
Six Sigma
2000’s
Lean Manufacturing
3. What Is Lean?
Respect for
People
Remove
Start Now
Waste
Continuously
Flow
Improve
4. Respect For
People
The most
important factor
Hardest part of
the process
Real respect for
all employees
Listen and be a
servant leader
5. Respect For Be an Employer of Choice
People
Employees want*:
Empowerment to
Make Decisions
Opportunities for
Growth &
Development
Variety
Mutual Support and
Respect
Sense of Purpose
Desirable Future
*BusinessWeek, 2008
6. Respect For Employees Are Essential
People
Only 21% of
employees are willing
to go the extra
distance to help
company succeed*
Firms with most
engaged employees
increase operating
income 19% and
earnings per share
28% year to year*
*2007 Towers Perrin survey, 18 countries, 40 companies,
90,000 employees
7. Respect For Change your Culture –
Change your Future
People
82% say Adopting “First we build
Significant Culture people, then we build
Change is their #1 cars.”
Challenge* —Fujio Cho, Former
Chairman, Toyota
*2006, The Lean Benchmark Report, AberdeenGroup
8. Respect For Turn the Company Pyramid Upside-Down
People
42% say Top
Management
Employees
Commitment is #1
Challenge*
Middle
“Grow Leaders and Management/Line
Teams who thoroughly Managers
understand the
Work, Live the Upper
Philosophy, and Teach it Management
to others.”*
*2006, The Lean Benchmark Report, AberdeenGroup
9. Respect For Your Culture is your Cornerstone
People
Only 10% of
employees say senior
management treats
them as most
important part of
organization*
*2007 Towers Perrin survey, 18 countries, 40 companies,
90,000 employees
10. (615) 852-LEAN [5326]
www.TheLeanWayConsulting.com
The Seven Wastes
Transportation Inventory Motion Wait time Over Processing Over Production Defects
Movement between Buffers Poor work Materials Excessive testing Material Shortages Internal
buildings/sites design Shortages
Excess WIP & Install Un-level Demand Rework
Premium RIP Ergonomic Un-level Demand
freight Design Reconfiguration Build to stock Supplier
Supplier Startup
Distribution inventories for Travel time Double handling Economic Lot Sizes Final Test
Network long lead time Vendor
Tool & Predictability Material Batching Inspection
Plant Layout Stock Material variability/over
access Scheduling design
Conflicts
Operations, Overhead, Materials, Suppliers
11. Flow
Go from silos to
customer based
groups
Move from one
process to
another
smoothly
Single piece flow
13. Continuously
Improve
Muda = Waste
Mura = Flow
Muri = Respect
for People
Continue to
tackle all of
these areas to
keep your Lean
System going
PDCA
14. (615) 852-LEAN [5326]
www.TheLeanWayConsulting.com
Traditional Lean enterprise
Emphasis on production Emphasis on customer service
Make product to forecast Makes to actual customer demand
‘Push’ production system ‘Pull’ production system
Machine utilization Employee utilization
Reduce cost and increase efficiency Reduce waste and add value
Leadership by executive command Leadership by vision and broad participation
Specialized employees Multi-functional employees
Penalize mistakes Educate
Blame people Identify and solve process failure
Reactive Proactive
Inspect in Quality Built in Quality
Complexity Simplicity
Functional Management Structure Manage by Value Stream
How does your company rate as a Lean Rating Scale: 1 2 3 4 5
Enterprise?
15. Think Like a
Lean Culture
1) Leadership
2) Visual Controls
3) Feedback
4) Do What You Say
– Say What You
Do
5) Stick To The
Process
6) Root Cause
Problem Solving
7) Continuous
Improvement
17. Visual
Controls
Visuals to help
prevent errors
Data about
process is easy
to see
A 3rd grade level
18. Feedback
Instantaneous
feedback
Corrective action
close to
instantaneous
Project
management
done in a visual
way
19. Do What You
Say – Say What
You Do
All processes are
up-to-date in the
paper work
Ask anyone and
they will give
you the same
response
Supposed to =
Actual
20. Stick To The
Process
Review
production
process
adherence
Gemba walks
Assign owners to
process misses
Top 3 issues
Pareto chart
21. Root Cause
Problem Solving
No more band
aids and
firefighting
Use tools like 5
Y’s, FEMA, fishbon
e diagrams, and
Gemba to solve
root cause
Processes reveals
problems easily
22. Continuously
Improve
Line leaders
responsibility is to
improve the line
Improvement lead
by line leads and
front line
Employee
suggestions are
used in
experiments
All leaders
participate in
Kaizens