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5 Principles of Lean Thinking

5 Principles of Lean Thinking

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5 Principles of Lean Thinking

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  1. 5 Principles of Lean Thinking NetworkingMFG.com July 15,2008 Othmar Furer Trox USA Inc. 770-569-1433

  2. The 5 Principles of Lean Thinking • Define value from the customer perspective • Identify the value stream • Make the process flow • Pull from the customer • Head toward perfection • Welding ex.

  3. The 5 Principles of Lean Thinking • Define value from the customer perspective • How do we define value? Must pass all three criteria; • Customer has to care (willing to pay for) • Must change the thing, • Done right the first time. • 95% Waste

  4. Seven Forms of WasteAdd Costs but Not Value! • Transportation • Inventory (Unnecessary) • Motion (Unnecessary) • Waiting • Overproduction • Overprocessing (Inappropriate) • Defects

  5. Transportation Excessive movement of people, information or materials. “I had to go across the street!" Courtesy of Vansco Electronics Ltd. • Spaghetti

  6. UnnecessaryInventory Excessive storage and delay of information or products. “We’re running out of room. We need to expand!" Courtesy of Vansco Electronics Ltd. • Dell Costs

  7. UnnecessaryMotion Any motion that does not add value to the product or process. “There’s got to be an easier way!" 5S- 90% Fail

  8. Waiting Long periods of inactivity for people, information, machinery or materials. “The parts were supposed to be here yesterday!" Courtesy of Vansco Electronics Ltd.

  9. Overproduction Producing more/sooner than the Internal or External customer needs. "What do you mean the design's been changed!" Courtesy of Vansco Electronics Ltd. • Dell-today

  10. Inappropriate Processing Using the wrong set of tools, procedures or systems. “Bigger is not necessarily better!" Courtesy of Vansco Electronics Ltd.

  11. Defects Frequent errors in paperwork, product quality problems etc. “Of course it’s taking a long time!" Courtesy of Vansco Electronics Ltd. • CAR

  12. The 5 Principles of Lean Thinking • Define value from the customer perspective • Identify the value stream

  13. The 5 Principles of Lean Thinking • Define value from the customer perspective • Identify the value stream • Make the process flow

  14. How long-PLT

  15. The 5 Principles of Lean Thinking • Define value from the customer perspective • Identify the value stream • Make the process flow • Pull from the customer

  16. The 5 Principles of Lean Thinking • Define value from the customer perspective • Identify the value stream • Make the process flow • Pull from the customer • Head toward perfection

  17. 1943: 17 B-17 Bombers built every day – 1/hour built by area farmers using Lean thinking Then • 1924: Iron ore turned into cash in 41 hrs - Henry Ford… time included 13 hr. non-value added time floating down the Rouge River in Michigan

  18. “Lean”… …Just Do It