Episode06Reading - Lean Principles Lean Principles by Jerry...

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Lean Principles © 2003 Utah Manufacturing Extension Partnership Page 1 of 5 Lean Principles by Jerry Kilpatrick Introduction “Lean” operating principles began in manufacturing environments and are known by a variety of synonyms; Lean Manufacturing, Lean Production, Toyota Production System, etc. It is commonly believed that Lean started in Japan (Toyota, specifically), but Henry Ford had been using parts of Lean as early as the 1920’s, as evidenced by the following quote: “One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.” Henry Ford 1926 In order to set the groundwork for this paper, let’s begin with the definition of Lean, as developed by the National Institute of Standards and Technology Manufacturing Extension Partnership’s Lean Network: “A systematic approach to identifying and eliminating waste through continuous improvement, flowing the product at the pull of the customer in pursuit of perfection.” Keep in mind that Lean applies to the entire organization. Although individual components or building blocks of Lean may be tactical and narrowly focused, we can only achieve maximum effectiveness by using them together and applying them cross-functionally through the system. Overview of the Toyota Production System The wastes noted above are commonly referred to as non-valued-added activities, and are known to Lean practitioners as the Eight Wastes. Taiichi Ohno (co-developer of the Toyota Production System) suggests that these account for up to 95% of all costs in non-Lean manufacturing environments. These wastes are: Overproduction – Producing more than the customer demands. The corresponding Lean principle is to manufacture based upon a pull system, or producing products just as customers order them. Anything produced beyond this (buffer or safety stocks, work-in-process inventories, etc.) ties up valuable labor and material resources that might otherwise be used to respond to customer demand. Waiting – This includes waiting for material, information, equipment, tools, etc. Lean demands that all resources are provided on a just-in-time (JIT) basis – not too soon, not too late. Transportation – Material should be delivered to its point of use. Instead of raw materials being shipped from the vendor to a receiving location, processed, moved into a warehouse, and then transported to the assembly line, Lean demands that the material be shipped directly from the vendor to the location in the assembly line where it will be used. The Lean term for this technique is called point-of-use-storage (POUS).
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This note was uploaded on 05/19/2011 for the course BUSINESS M 350 taught by Professor Johnston during the Spring '11 term at Missouri State University-Springfield.

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Episode06Reading - Lean Principles Lean Principles by Jerry...

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