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Friday April 25th 2014

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Lean – 5 Lean Principles

1. Define Value from the Customer’s perspective

1.1.    Customer view.

1.2.    Talk to customers!

1.3.    Talk to anyone downstream of you!

1.4.    Target costs based on MUDA-free cost of the product.

2. Identify the steps which create and deliver that value to the customer (Value Stream)

2.1.    For each product or product family.

2.2.    All the actions to bring a product or service through the 3 critical tasks of any business.

  • Problem solving – From concept to launch.
  • Information management – From order to delivery.
  • Physical transformation – From raw materials to finished product.

2.3.    Value Stream Mapping – Beyond company boundaries.

3. Make those steps that create value Flow by eliminating Waste

3.1.    Get away from department to department thinking – Causes batch & queue.

3.2.    Concentrate on the object.

3.3.    Ignore traditional boundaries.

3.4.    Rethink all operations to make it flow smoothly.

3.5.    Eliminate re-work & backflows – “Touch it once”.

3.6.    Transparency & visual controls.

3.7.    Right sizing processes.

3.8.    Put the office in the plant.

  • Subject to noise levels.
  • So they see first-hand.
  • Constantly improve things with workers.
  • Error-proof the process.

4. Only make what is Pulled by the customer

4.1.    Nothing upstream produced until pulled.

4.2.    Not push “stuff” downstream or into the market.

4.3.    Re-order goods & raw material based on what you just sold.

4.4.    Any stock at any position can just satisfy the rate of demand.

4.5.    Re-stock arrives just in time (JIT).

4.6.    The whole process is governed by a single heartbeat called takt-time. Takt time = (Available production time)/(Rate of costumer demand).

5.  Strive for Perfection

5.1.    Doing the first 4 lean principles properly highlights more areas to improve.

5.2.    Don’t just benchmark competition.

  • Too limiting.
  • You’ll relax too soon!

5.3.    Create transparency.

  • So suppliers/customers/employees all know what is happening.
  • Employee suggestions.
  • Customer feedback.

5.4.    No limits!


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