Lean Management Overview and History

Lean Management of Production

• Lean concept introduces a short presentation about lean system and methods
• Lean method aims to eliminate production waste in various forms
• Henry Ford, Kiichiro Toyoda, Taiichi Ohno, Womack, Jones, and others have contributed to lean methodologies

Historical Development of Lean Production

• Eli Whitney (1798) and other pioneers contributed to quality management and production improvement (refer to Figure 1)
• Henry Ford (1863-1947) pioneered flow production in 1913 which revolutionized factory production
• Ford introduced principles of standardization, operational efficiency, effective production flow and economies of scale
• Ford's innovations focused on special purpose machinery, Go No Go gauges, and precise products, making assembly easier

Definition of Lean Production

• Lean Production is a systematic approach meant to eliminate sources of waste and delays, maximizing the value added by a company's activities.
• Lean thinking encompasses the broader scope of lean production, incorporating distribution and other functions beyond the factory
• Lean production aims for efficiency of workers and work cells
• Toyota Production System (TPS) is a collection of efficiency improvements by Toyota Motors to remain competitive and survive after World War II.

Principles of Lean Production

• Identify Value: The organization must realize customer-determined value of the good or service produced, constantly striving to meet their expectations
• Map the Value Stream: Understanding all processes from raw materials to customer delivery is required. Eliminate processes that don't add value
• Create Flow: Smooth production flow without bottlenecks, delays, or interruptions to ensure nothing is produced ahead of customer orders is required
• Establish Pull: Production is based on actual customer orders (just-in-time), avoiding excess inventory and ensuring the right quantities are produced at the right time
• Seek Perfection: Continuous improvement (Kaizen) is key to eliminating waste to achieve perfect quality by eliminating defects

Eight Deadly Wastes (Muda)

• Defects: Poor quality, needing rework or replacement
• Overproduction: Producing more than needed, causing unnecessary inventory
• Waiting: Delays in the production process
• Not Utilizing Employees: Underutilizing employee skills or knowledge
• Transportation: Unnecessary movement of materials, supplies or personnel
• Inventory: Excess stock of raw materials, work-in-progress, or finished goods leading to storage issues
• Motion: Unnecessary movement of people or equipment
• Excess Processing: More processing or steps than needed by the customer