The Lean Management - Chapter One "Part 1"

What is Lean Management?

Definition of?lean:

The lean originally focused on maximizing the value while minimizing the waste.

Intransitive verb:?to incline, deviate, or bend from a vertical position

// Lean?on me as we walk.

- To rely on support or inspiration.

// Preferred not to?lean?on his father in building a career

-?To incline in opinion, taste, or desire

// Leaning?toward a career in chemistry.

"The lean core idea is to maximize the value?while minimizing the waste. Simply, lean means creating more value for customers with fewer resources"

Lean management understands customer value and focuses its key processes on continuously enhance and improve, the goal is to provide perfect value to the customer through a process that has zero waste.

To achieve this, lean changes the focus of management from optimizing separate technologies, assets, and departments to optimizing the flow of products, processes, and services through value streaming that flows across the technologies, assets, and departments to serve the customers.

Eliminating the wastes along with the entire value streams, instead of at isolated points that creates processes in less time to make products, services at far fewer costs and with much fewer defects, than the traditional business systems, companies can respond to change the customer desires with a high variety, high quality, low cost, and fast throughput time also, information management becomes much simpler and more accurate.

Lean start in 1940 with "Toyota Production System - TPS" by Taiichi Ohno as they call him the Father of "TPS" and Shigeo Shingo was the leading expert in manufacturing and production in Toyota at that time.

The term Lean was made up by John Krafcik (currently CEO of Google’s self-driving car project Waymo) in his 1988 article “Triumph of the Lean Production System”.

The Lean Principles

01. Identify, Define Value:

The added value will be identified by your customers, to add it and offer, it in your product or services which customer will pay for it as per their needs, the value lies in the problem you are trying to solve it's all about the customer and doesn't consider into your solution, something that will be a waste or doesn't bring value to the customer.

02. Map the Value Stream:

Map the workflow of your company to include all actions and people involved in the process until delivering the product to the customer by identifying which parts of the process bring no value, detect the steps that don't bring value, and eliminate them.

03. Create Flow:

Create continuous workflow through the team may create a bottleneck and interruptions that will appear at any time, so by having a cross-functional team and following with breaking up the work into smaller pieces to visualize easily flow to detect and remove process roadblocks.

04. Establish Pull System:

Having a stable workflow will assure that the team can deliver faster with less effort, in such a system the work is pulled only if there is a demand for it to optimize the capacity of the resources and deliver products and services as per the actual needs.

05. Pursuit or Seek Perfection (Continues Improvement):

The most important step within the system is not to isolate any static problems that may occur at any of the previous steps, to make sure that the employees at all levels are involved to promote continuous improvement.

Benefits of Lean Management

Eliminate the Waste is the core of Lean "MUDA - 無駄"

Muda means wastefulness, uselessness, and futility, which is contradicting value-addition. Value-added work is a process that adds value to the product or service that the customer is willing to pay for.

1. Defects:

Defects are mistakes, rework, damage that impact time, money, resources, and customer satisfaction.

Work-required corrections that may include components that need to repair, rebuilt, rework, scrap, poor design, and design documentation changes.

Some causes of "Defects" wastes:

• Lack of proper documentation, or undocumented requirements.
• Lack of process standards and quality control.
• Don't understand your customer needs and requirement properly.

2. Overproduction:

Overproduction typically an output item received and not ready or not needed at the time been.

Bottlenecks should be removed and to improve the transparency of the entire production process. Overproduction ties up a considerable amount of working capital and must not be accepted.

Some causes of "Overproduction" wastes:

• Just-in-case production.
• Weak planning.
• Create more products that no one will use it.
• Long-setup and changeover times.

3. Waiting:

Waiting time that interrupting the work.

Interruption like missing materials, waiting for approval to proceed with work, or because of machine downtimes. Waiting times occur until a bottleneck is removed.

Some causes of "Waiting":

• Unplanned downtime or Long set-up for changeover times.
• Inadequate staff or Absence of staff.
• Poor planning and process documentation.
• Lack of communication tools.

4. Non-Utilized Talents:

Not-utilized talents insufficiently, abilities, and knowledge of people that impact motivation and engagement.

Not utilizing talents directly impacts employee motivation and engagement with a direct impact on productivity Solutions for empowering the employees by avoiding the micro-management, improve the training, implement processes, and tools for direct employee feedback.

Some causes of "Not-Utilized Talents" wastes:

• Assign employees to wrong tasks or by Poor management.
• Tedious administrative work.
• Lack of communication and communication tools.
• Inadequate training.
• Missing teamwork.

5.?Transportation:

Transportation increases costs need time and may result in product damage by moving things from X to Y.

Transportation wastes can easily be reduced by reorganizing the physical layouts and process simplification, the goal should be less frequent handling of products, with the shortest possible distances between process steps.

Some causes of "Transportation" wastes:

• Poor factory layout or Poor frequently movement handling for products.
• Wrongly aligned process flow.
• Insufficient communication tools.

6. Inventory:

Inventory excess waste happens when the supply exceeds the real customer demand

Waste of inventory involves storing products or materials that are in no demand at this moment, sustain a steady flow of work can lead to problems like product defects, damaged material, greater lead time in the production process, and producing inventory more products than the customer demand.

Some causes of "Inventory" wastes:

• Overproduction that exceeds the need.
• Lack of proper monitoring systems.
• Production speed not aligned to demand.
• Suppliers are not reliable.
• Long set-up times.

7. Motion:

Motion waste results from the movement that does not add value to the goods produced.

The rearrangement and reduction of the distances have a huge impact on the reduction of motion waste, in addition to proper procedures for sharing of the tools and machines, should be implemented, the usage of mobile devices for data collection and tasks fulfillment also decreases motion wastes.

Some causes of "Motion" wastes:

• Sharing of machines and tools.
• Processes are not aligned and result in motion overhead.
• Working standards are not properly in place.

8. Extra Processing:

Extra processing happens when work processes are poorly designed or not documented properly.

Extra processing wastes such as multiple versions of the same task, like several signatures, polishing components that do not require it, entering duplicated data, or processing more goods than required, to overcome overprocessing, standardizing processes is the key this should include the reduction of unneeded process steps such as, unnecessary documentation, approvals, and meetings.

Some causes of "Extra Processing" wastes:

• Poorly designed processes.
• Lack of standards.
• Lack of communication and proper communication tools.
• Human error.

TO BE CONTINUED........

Wait for the lean management part 2, which will explain more about lean principles and practices

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