chap4_2010

chap4_2010 - Chapter 4 Lean Practices Key Lean Principles...

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Chapter 4 Lean Practices
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Key Lean Principles Ensure that the correct products reach the correct place at the appointed time in the requested quantity while minimizing waste and maintaining flexibility to adapt to change. Perfect first-time Waste minimization Continuous improvement Pull processing Flexibility Building
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Five Laws of Lean Sigma Law 0 Law of the market – customer CTQ defines quality and is the highest priority for improvement (ROIC, NPV) Law 1 Law of flexibility – the velocity of any process is proportional to the flexibility of the process Law 2 Law of focus – 20% of the activities in a process make up 80% of the delay (related to the Pareto principle) Law 3 Law of velocity – the velocity of any process is inversely proportional to the mount of WIP (also known as "Little's law“) Law 4 The 4 th law – the complexity of the service or product adds more non-value-added costs and WIP than either poor quality or slow speed
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Lean Building Blocks http://qualitysystemsservices.net/lean_enterprise.html
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Theory of Constraints (TOC) An overall management philosophy that aims for excellence and continued system improvement All processes (P) are composed of many activities or process steps. Each of these individual processes has its "own capacity" for transforming individual inputs into output The total process can produce only as fast as the slowest process step (bottleneck or constraint) To increase the output of the process, the slowest individual process step must be identified and fixed
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TOC Principles Increase throughput (total output of the process) Decrease expenses Decrease inventories
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LEAN CONCEPT Rapid process flow (RPF) Process waste is identified and removed
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This note was uploaded on 12/03/2011 for the course EIN 5226 taught by Professor Staff during the Fall '11 term at FIU.

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chap4_2010 - Chapter 4 Lean Practices Key Lean Principles...

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