Lean Concepts

Lean Concepts or Lean Manufacturing is a systematic methodology that identifies and eliminates all types of waste or non-value-added activities; not only in production or manufacturing operations, but in the service industry as well. Whether you are manufacturing a product or providing a service, there are components that are considered "waste". Lean concepts are purely about creating more value for customers by eliminating activities that are considered waste. Any activity or process that consumes resources, adds cost or time without creating value becomes the target for elimination.

Lean focuses on the "big picture" or improvements in the entire business process as opposed to incremental improvements. It is the business process system that can significantly improve a company's profitability.

Lean concepts improve operating performance by focusing on the continuous flow of products, materials or services through the value stream. To achieve this, the various forms of waste must be identified and eliminated. Waste can include any activity, step or process that does not add value for the customer.

Lean Manufacturing, sometimes also referred to as the Toyota Production System, is about the systematic elimination of waste.

The Toyota Production system identifies seven major forms of waste. They are:

Waste from Overproduction - producing more than is required by the customer or marketplace which generates unnecessary inventory.

Waste from Transportation - multiple handling or movement of products does not add any value to the product.

Waste of Motion - of the workers, machines, and handling. Searching for tools or parts due to the inappropriate location of these items is considered waste of motion.

Waiting - a worker waiting for a machine to finish a cycle, waiting for a supervisor to answer a question, or waiting for information or materials reflects an interruption to flow and need to be eliminated.

Processing - unnecessary processing steps should be eliminated. Combine steps where possible.

Inventory - or Work In Process (WIP) is material between operations as a result of large lot production or processes with long cycle times. This reflects system problems.

Defects - producing defective products is pure waste. Prevent the occurrence of defects instead of scrapping or repairing.

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