Lean Management Overview

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 Lean Definition
•Identify, Reduce &
where possible
eliminate waste
continually across
value chain.
What is Lean Management ?

Fat Person Lean Person

• Runs slow • Runs Fast

• Eats More • Eats Less

• More Risk • Less Risk

• Less Flexibility / • More flexibility /

reaction time reaction time

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 Lean Organization

Fat Organization Lean Organization

• Eats more • Eats Less
– Resources – Resources
• Money, Machinery, Time, Space etc. • Money, Machinery, Time, Space etc.
– Waste – Waste
• Produces • Produces
– Less – More
• Products, work • Products, work
• High Risk • Less Risk

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Lean Timeline
Consumers Report on Age and Make of
Cars
Lean is not
traditional
productivity
(Time and
Motion
Study).
Lean Does not mean Mindless Cost Cutting.
Lean Does not mean Less Employees Are Needed.
 Lean Today
• Beyond manufacturing,
• Logistics and distribution,
• Services,
• Retail,
• Healthcare,
• Construction,
• IT
• Maintenance, and even
• Government.
Any Activity Can Be Divided Into
Two Categories

Value Added activity (VA)

Non-Value Added activity

(NVA)

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Three conditions for VA Activity

Customer is willing to pay

Change, transformation, conversion is taking place

First time right as per customer requirement

Anything other than VA is WASTE.

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8 Wastes that kills your organization
Waiting Transportation
Overproduction Inventory
Reject / Rework Motion
Motion of employees Waiting
Processing Unnecessary Over Production
Inventories Over Processing
Transportation Defects
Underutilized human Skills
potential - skills, talents,
and ideas
 Lean Tools
• Five S – Visual Management
• VSM – Value Stream Mapping
• Kaizen / Kaizen Blitz
• Flow – Spaghetti Diagram
• Cell Manufacturing
• Kanban – Inventory Control
• TPM – Total Productive Maintenance
• QCO – Quick Change Over
• Poka Yoke – Mistake Proofing
• Hijeunka – Level Scheduling
• Standard Work