Lean Logic
Course Notes

Definitions:
Concurrent Improvement
Wasteful Activity Removal
Organised improvement projects to create efficient processes and quality
products
Reorganisation of workforce effort to support improvements

"The pursuit of concurent improvement in all measures of manufacturing
performance by the elimination of waste through projects that change the
physical organisation on the shop floor, logistics and production control
throughout the supply chain, and the way human effort is applied to both
production and support tasks"
- Michel Baudin

Lean manufacturing is: Lean manufacturing is not:
a journey more than a destination a quick fix
a pattern of simultaneous improvement in many areas of the organisation an approach of
isolated improvement to a single process or product
a holistic approach a reductionistic approach
an active and measurable endeavour a passive and vague endeavour

Doing more with less

Waste:
overproduction and excess inventory
waiting
transportation
processing and unneccessary motion
defective products

Less Detrimental Waste - Wasteful activities that create no value for the
customer that can be immediately removed.
More Detrimental Waste - Wasteful activities that create no value, but are
currently necessary because of associated systems or processes
Less Detrimental Waste More Detrimental Waste
unneccessary motion caused by poor equipment management unnessessary motion caused by
ordering processes or software
waiting or unneccessary motion caused by sloppy housekeeping practices waiting or
processing caused by workers' reluctance to do their jobs
defective products caused by poor equipment maintenance schedules defective products
caused by union restrictions on what workers can do
overproduction caused by one cog in the manufacturing process overproduction
caused by many cogs in the manufacturing process

Lean Philosophy
Tenacity: a willingness to put forth the effort and take the time to go
lean. Looking at difficulties as challenges, following through with
solutions even if they will take tremendous stamina to put in place.
Transparency: a commitment to openly share information, financials, and
lessons learned with every member of the organisation with the belief that
doing so can strengthen the lean transformation
Transition: an understanding of the proper pacing of lean improvement
projects. It requires a prioritisation of efforts with an appreciation for
practical day-to-day matters.
Totality: having a holistic and complete perspective of the organisation
and all its contributors.

Lean Principles
Value: How can you create product and service value not merely by looking
through the eyes of the customer but by putting yourself inside the value
stream? How will you observe as the product progresses from the design
phase to the physical product?
Flow: How can you create efficient physical flow from one machine to the
next and psychological flow - optimum performance - by employees?
Pull: How can you get the product to the customer when it's demanded,
without excuses about long lead times or transportation delays?
Perfection: How can you refute the belief that doing things right the
first time is the best approach and think about doing things "more right"
each successive time?

Applying the lean principles to your organisation's lean transformation
will allow you to:
meet the growing demands of the customer
create a more satisfying work environment
maximise current physical and intellectual resources
implement long-lasting cost-saving techniques
achieve better quality control

Value
How does an organisation determine product value? Internal employees
determine value? Go to the source instead of making assumptions.
Has a value stream analysis been conducted properly? Looking at every
action needed to create a product.
What steps in the value stream that add no value can be removed? Challenge
each step in the value stream.

Flow

Batch-and-queue methodology
departments and functions
tasks grouped in batches
high-speed equipment
equipment dictates production
heirarchical organisational structures
high-volume production

Lean methodology
cells and teams
one-at-a-time production
right-sized equipment
product dictates production
flat organisational structures
low-volume production

Continuous production flow = single-piece flow
right-sizing equipment
changing over tools quickly
creating production cells
using a preventative equipment maintenance schedule
alternating between low-, mid-, and high-volume part production
standardising work practices

Pull
Product Push: a sporting goods store holds monthly close-out sales to move
excess inventory from the store shelves
Product Pull: a popular office supply retailer delivers orders placed in
the morning to the buyer in the afternoon of the same day

Pull is accomplished when a request upstream triggers downstream production

To achieve pull, organisations need to:
balance flow and pull
set production schedules based on customer demand
be flexible enough to create more than one type of product at a time
provide incentives for customers to purchase smaller orders more frequently

Difficulties with pull
attempts to forecast customer demand instead of responding to actual demand
warehouse practices
fears of high shipping and transportation costs
fears of letting go of "control"
fears of re-evaluating every aspect of the business

To apply the lean perfection principle, organisations must be willing to:
take as many steps as necessary to strive for leaner practices
compete against higher standards
keep goals in clear view
establish appropriate timelines for continuous improvements
prioritise projects