Commercial Production / 10.2 /
Lean Production
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Lean production aims to eliminate waste and maximize the value of a product based on the perspective of the consumer. Lean production considers product and process design as an ongoing activity and not a one-off task, and should be viewed as a long-term strategy.
10.2.1 | Characteristics and Principles of Lean Production
10.2.1 | Characteristics and Principles of Lean Production
Lean production, also known as the Toyota Production System (TPS), is a methodology focused on eliminating waste and maximizing value in manufacturing and other processes. It emphasizes continuous improvement and creating a culture of problem-solving throughout the entire organization.
Lean production can be characterized by a focus on:
Value: Identifies and focuses on what truly adds value to the customer, eliminating any unnecessary steps or activities that don't contribute to the final product or service.
Value Stream: Maps the entire process from raw materials to finished product, identifying potential areas for waste elimination and streamlining.
Flow: Creates a smooth and continuous flow of materials and information throughout the entire process, reducing waiting times and bottlenecks.
Pull: Produces only what is needed, when it is needed, based on actual customer demand (pull principle - JiT) rather than pushing out finished goods based on forecasts (push principle).
Perfection: Strives for zero defects and continuously seeks ways to improve quality and efficiency through continuous improvement ('Kaizen': see below).
The principles of lean production are to:
Eliminate waste: Identify and eliminate seven types of waste ('Muda': see below).
Minimize inventory: Reduce inventory holding costs and potential waste.
Empower workers: Encourage employee participation and problem-solving.
Build quality in: Integrate quality checks throughout the process.
Reduce setup times: Minimize time switching between production runs.
Standardized work: Establish standard procedures for tasks.
Maintain long-term supplier relationships: Collaborate for communication, lead times, and quality.
Taiichi Ohno, a Japanese industrial engineer and businessman who invented the “Ten Precepts” of lean manufacturing, a cornerstone of the Toyota Production System
The Toyota Production System, and later on the concept of Lean, was developed around eliminating the three types of deviations that shows inefficient allocation of resources. The three types are Muda (無駄, waste), Mura (斑, unevenness), and Muri (無理, overburden).
Advantages
Advantages
Reduced costs: Eliminates waste, leading to lower inventory, production, and labour costs.
Improved quality: Continuous improvement and quality control lead to higher product quality and customer satisfaction.
Increased efficiency: Streamlined processes minimize waste and contribute to faster production times and increased output.
Enhanced flexibility: Allows for adaptation to changing demands and market conditions.
Improved employee engagement: Encourages employee participation and fosters a sense of ownership.
Industries likely to benefit more from lean production:
Manufacturing: This is the original home of lean production, and it can be extremely effective in streamlining production processes, reducing waste, and improving efficiency. This applies to a wide range of manufacturing sectors, including:
Automotive: Assembly lines and component production benefit greatly from lean principles like standardized work and reduced setup times.
Electronics: Manufacturing complex electronic devices requires efficient material flow and minimal waste, making lean production highly beneficial.
Food and beverage: Optimizing production processes and minimizing waste can lead to increased efficiency and cost savings in these industries.
Construction: While implementation can be more challenging, some aspects of lean production can be applied in construction to reduce waste and optimize project timelines. This might involve standardized construction methods and just-in-time delivery of materials.
Healthcare: Streamlining processes in hospitals and clinics can improve patient flow, reduce waiting times, and potentially save costs while maintaining quality of care.
Disadvantages
Disadvantages
Implementation challenges: Requires cultural shift and commitment to continuous improvement.
Potential for increased workload: Pressure to achieve efficiency and eliminate waste can lead to increased workload for employees.
Risk of oversimplification: Focusing solely on efficiency may neglect other important aspects like innovation or employee well-being.
Limited applicability: May not be suitable for all industries or product types, particularly those requiring high levels of customization.
Industries that might benefit less from lean production:
High-complexity, low-volume industries: Lean production generally excels at standardizing processes and minimizing waste. However, industries with highly customized products or low-volume production runs might find it less applicable due to the dynamic nature of their work. This could include:
Custom manufacturing: Producing unique products with varying specifications might not fit well with standardized lean procedures.
Aerospace: These complex projects often require long lead times and intricate specifications, making some lean principles less adaptable.
Research and Development: The exploration of new ideas and innovation might not be easily streamlined with lean principles focused on efficiency and standardization.
Service industries: While some aspects of lean production can be adapted to service industries, the core principles are often more directly applicable to manufacturing processes. However, elements like standardized work procedures and waste reduction can be implemented in certain areas:
Retail: Streamlining logistics and inventory management could benefit from some lean principles.
Financial services: Standardizing procedures and focusing on minimizing errors can be relevant aspects of lean in this sector.
10.2.2 | The 7 wastes
10.2.2 | The 7 wastes
Muda is a Japanese word that translates to "wastefulness" or "futility" in the context of lean production. Within lean principles, Muda refers to any activity that does not add value to the customer. These activities consume resources (time, money, materials) without contributing to the final product or service. Lean production focuses on identifying and eliminating these seven types of Muda:
Overproduction: Producing more than what is needed or demanded.
Overprocessing: Performing more work than is necessary to fulfill customer requirements.
Transportation and Unnecessary/excess motion: Unnecessary movement or transportation of materials or people.
Waiting: Idle time between production activities due to delays or inefficiencies.
Inventory: Holding excess inventory that does not contribute to immediate production needs.
Defects: Producing products with flaws that require rework or scrap.
Non-utilized talents: Failing to utilize the full potential and skills of employees.
By actively identifying and eliminating these forms of waste, organizations can improve their efficiency, lower costs, and ultimately deliver more value to their customers.
10.2.3 | Kaizen and The 5 Ss
10.2.3 | Kaizen and The 5 Ss
Kaizen is Japanese for "improvement" or "change for the best". It refers to a philosophy or practice that focuses on the continuous improvement of processes in manufacturing, engineering, business management or any process. Central to Kaizen are the 5 S’s - a method for organizing the workspace with the goal of improving the efficiency of production:
Seiri (Sort): Separate essential items from unnecessary ones, discarding or relocating unneeded items. Reduce time looking for items, and reduce distractions. Increase safety and simplify inspection.
Seiton (Straighten/stabilize): Organize remaining items in a designated (fixed location - labelled) and accessible manner, promoting order and efficiency.
Seiso (Shine): Clean and maintain the workplace, promoting safety, hygiene, and a positive work environment.
Seiketsu (Standardize): Establish consistent procedures and practices for sorting, organizing, cleaning, and maintaining the workplace. Ensure workers know their responsibilities
Shitsuke (Sustain): Discipline and continuous improvement: Foster a culture of adhering to established standards and continuously seeking ways to improve the process.
10.2.4 | Tools for process improvement
10.2.4 | Tools for process improvement
Both Value Stream Mapping (VSM) and Workflow Analysis are tools used to understand, improve, and optimize processes within an organization. While they share some similarities, they have distinct purposes and approaches. Both aim to identify and eliminate inefficiencies, both use visual representations to analyze processes, and both facilitate communication and collaboration for process improvement. Both often aim to decrease lead time: the time between the customer placing an order and the item being delivered to the customer.
Value Stream Mapping (VSM)
Value Stream Mapping (VSM)
VSM often creates a visual map of the process, typically with standardized symbols, highlighting key stages like production, transportation, inventory, and waiting times.
VSM is suitable when aiming to understand the overall flow of materials and information and identify waste across the entire value chain,
VSM helps to:
Identifies bottlenecks and areas for improvement.
Provides a clear understanding of lead times and cycle times.
Helps visualize the flow of information and materials.
Supports collaboration and communication across different departments.
Workflow Analysis
Workflow Analysis
Work flow Analysis assesses the individual steps, resources used, decision points, and potential rework loops within a specific workflow.
Workflow analysis is suitable when focusing on specific processes or tasks within an organization and optimizing their efficiency and effectiveness.
Workflow Analysis helps to:
Identify redundant or unnecessary steps.
Streamline task organization and handoffs.
Improve communication and clarity around workflow expectations.
Standardize work and identify opportunities for automation.
10.2.5 | Role of the Workforce
10.2.5 | Role of the Workforce
Central to the success of Lean Production is the emphasis on the workforce as the most valuable component of the manufacturing system. This is founded on the belief that no system is perfect, and thus the users of a system (the workers) are best situated to suggest improvements.
Training a highly skilled workforce develops an intimate understanding of the production process and empowers workers to identify areas for improvement. Because such an approach depends on empowering each employee, across all levels of the company, such systems are typically more horizontal rather than hierarchical. This characteristic of lean production systems can make it difficult to introduce to existing non-lean production systems.
Some companies ask their employees to contribute at least one Kaizen (good change) per year. Contributions might be suggestions for jigs or fixtures, but might also be more systemic (e.g. reordering steps).
Highly specialized assembly tools like this screwdriver with automatic screw feeder are best designed and developed with user input.
At Toyota, every worker has the power and authority to halt the entire production line. They not only can but are expected to do so if an item arrives at their station which is sub-standard. The source and reason for the sub-standard item are traced back and production will only resume once the problem has been fixed.
10.2.6 | Product family
10.2.6 | Product family
The development of product families is a common strategy for lean production in many larger companies.
A product family is a group of products that share common parts, manufacturing processes and architecture. This has several advantages for manufacturers:
Reduced manufacturing costs because products use similar parts, techniques, and suppliers.
Reduced R&D costs as changes are typically incremental and made to the architecture of the design; There is no need to design a new product from the ground up.
Attract a range of customers as each product in a product family can be targeted to different needs.
Waste is reduced as waste from one product can be used to manufacture parts for another.
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