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Understanding Lean Principles: Identifying and Eliminating Waste in Operations

Lean methodology emphasizes the importance of reducing waste to optimize processes. According to Shoichiro Toyoda, waste is defined as anything beyond the essential resources required to add value to a product. Typically, up to 95% of total lead time can be non-value adding. The eight types of waste identified include defects, overproduction, waiting, non-value-added processing, excess transportation, excess inventory, excess motion, and underutilized employees. A strategic focus on lean can lead to significant improvements in efficiency, cost reduction, and enhanced overall productivity.

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Understanding Lean Principles: Identifying and Eliminating Waste in Operations

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Presentation Transcript

  1. Lean Overview

  2. What Is Waste? Waste is “anything other than the minimumamount ofequipment, materials,parts, space,and worker’s time which are absolutely essential toadd valueto the product.” —Shoichiro Toyoda President, Toyota

  3. Lean = Eliminating the 8 Wastes Typically 95% of Total Lead Time is Non-Value Added!!! RUN TIME Order Processing, Transport, Storage, Waiting, Rework, Machine Setup, Inspection, Machine Breakdowns, etc... TOTAL LEAD TIME LEAN FOCUS: Reducing Total True Lead Time

  4. Lean = Eliminating the 8 Wastes • Defects • Overproduction • Waiting • Non Value-added Processing • Transportation of Part/Materials/Tooling • Inventory in Excess • Motion in Excess • Employees that are underutilized

  5. Defects

  6. Overproduction

  7. Waiting

  8. Non Value-added Processing

  9. Transportation of Part/Materials/Tooling

  10. Inventory in Excess

  11. Motion in Excess

  12. Employees that are underutilized

  13. Strategic Lean Focus: “Find Whole New Ways of Completing a Job with a Focus on Reducing Total True Lead Time (MCT)”

  14. Individual Efficiency vs. System Efficiency

  15. The Effect of Batch Sizes Large batch sizes increase the lead time of all the products behind it. Smaller Batch sizes: - Increase flexibility - Reduce overall lead times - Reduces waste and cost caused by extended lead times

  16. Lean Building Blocks Continuous Improvement Pull/Kanban Cellular/Flow TPM Quality at Source POUS Quick Changeover Standardized Work Batch Reduction Teams Value Stream Mapping 5S System Visual Plant Layout

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