Implementing Lean: Click To Proceed

Lean Manufacturing – eLearning Program
SYBEQ
Implementing Lean
Click to proceed
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Steps to implement Lean Manufacturing
1. Identify Value
2. Identify Value Stream
3. Flow
4. Pull
5. Perfection
Click to go back
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Step 1. Identify Value
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Identify Value
To identify value it is important to understand what

is waste.
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What is Waste?
Any activity that absorbs resources but creates no
value.
Examples of waste:
• Mistakes that need corrections
• Production of goods nobody wants
• Movement of personnel from one place to

another without any purpose
• Process steps that are not required

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Identify value
• Define value in an appropriate way
• Value is defined by the customer
• Keep redefining value as viewed by the customer
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How to identify value?
• Define value in terms of specific products with
specific capabilities offered at specific price
through interaction with specific customers.
• Ignore traditional boundaries.
• Rethink on a product-line basis.
• Use dedicated product teams.
• Have a clear understanding of what’s needed to

create value.
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Step 2. Identify Value Stream
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Identify value stream

• Value stream is a set of all activities that link a
process together.
• Can be constructed for each product or process.
• Involves the suppliers, the organization and the

customers.
• Once the stream is defined, find ways to eliminate
waste.
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There are 3 value streams in any organization.
1. Problem solving
2. Information management
3. Physical transformation
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1. Problem solving
• Concept through detailed design
• Prototype development
• Review plans
• Prepare for production launch
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2. Information Management
• Taking order from the customer
• Raw material from suppliers

• Scheduling
• Delivery to customer
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3. Physical Transformation
• Converting raw material to finished goods in

the hands of customer
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Value Stream Mapping
Purpose
To identify every action required to
design, order and make a specific
product.
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Value Stream Mapping
Actions are viewed under three categories:
• Those which actually create value as perceived
by the customer.
• Those which create no value but are currently

required by the process. So they can’t be
eliminated yet.
• Those which don’t create value as perceived by

the customer and can be eliminated.
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Steps to create Value Stream Maps
1. Product development
• Identify customer requirements
• Delivery Methods
• Quantities
2. Process design
• Perform process walk through recording each step
• Note machine times, cycle times, operators,
changeover times, WIP, scrap rate etc.
3. Planning
• Review the maps for continuous improvements.
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Value Stream Map – Sample
ABC Corp
Customer orders
Supplier Supplier orders
Internal Customer
Schedule
Delivery
schedule
Delivery
schedule
Process 1 Process 2 Shipping

Inventory
Staging
Wait
Material time
Ben Pushed Alice
to next
Process time Process time
operation
Wait time Wait time
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Step 3: Flow
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Flow
• All the activities of creation, ordering and

provision of goods or services can be made to
flow.
• Find ways to line up all essential steps needed

to get a job done into a steady, continuous flow
with no wasted motions, no interruptions, no
queues, no batches.
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Continuous flow Vs Batch process
Continuous Flow Batch Process
• Employee can see the • Employee views a small
status of the entire system. part of the task.
• Immediate feedback whether the • No feedback.

job has been done right or not.
• Task requires only a small

• Needs concentration. part of one’s concentration
and skills.
• No distractions and • Constant interruptions.
interruptions.
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Flow
Continuous flow layout – ideal situation

• Single piece flow.
• Minimize WIP.
• Production steps arranged in a sequence
(straight line, U-shaped).
• Each operator at each station in the cell
works with complete reliability.
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How to make value flow?
1. Once value and the value stream are defined,
focus on the actual object i.e. specific order,
specific product.
Ignore traditional boundaries.
2. Rethink specific work practices and tools to

eliminate backflows, scrap, stoppages.
This will enable design, order and production of
specific product to proceed continuously.
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Lean techniques to make value flow
1. Standardized work
2. Takt time
3. Visual control / 5S
4. JIT
5. Kanban
6. TPM
7. Poka yoke
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Flow is not enough
• If an organization uses lean techniques only to

make unwanted goods flow faster, nothing but
waste results.
• Organizations have to be sure that they are

providing the goods/services that customers
really want when they want them.
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Step 4. Pull
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Pull
• Produce products as the customer

requires it.
• Benefits of the “Pull” system

1. Reduction in cycle times – concept to launch,
sales to delivery, raw material to customer
2. Reduction in finished goods inventories
3. Reduction in WIP
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Pull V/s Push

Pull Push
• A customer order initiates • Each operation produces
production. as much as possible and
Each operation produces sends (pushes) it to the
parts as needed through a next operation.
signal from downstream.
• The goal is to maximize
• Minimal amount of WIP. machine efficiency.
• In process and finished

goods inventory increases.
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Lean techniques for making the “Pull”

system work
• Kanban
• Just in Time (JIT)
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Step 5. Perfection
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Perfection
• A journey to continuously remove waste.
• Two approaches to perfection

1. Incremental – progressive improvements
2. Radical – total value stream involving all firms
from start to finish.
• Both approaches necessary to pursue

perfection.
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Steps to achieve Perfection
• Product teams work with customers to find
better ways to specify value, enhance flow and
achieve pull.
• Use of technologies to eliminate waste.
• Use of the value stream partners (suppliers,

customers, employees) to uncover more value
and reduce waste.
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Lean Manufacturing – eLearning Program

2. Identify Value Stream

Step 1. Identify Value

To identify value it is important to understand what

• Production of goods nobody wants

• Movement of personnel from one place to

• Process steps that are not required

• Value is defined by the customer

• Keep redefining value as viewed by the customer

• Ignore traditional boundaries.

• Rethink on a product-line basis.

• Use dedicated product teams.

• Have a clear understanding of what’s needed to

Step 2. Identify Value Stream

Identify value stream

• Can be constructed for each product or process.

• Involves the suppliers, the organization and the

• Once the stream is defined, find ways to eliminate

There are 3 value streams in any organization.

• Concept through detailed design

• Prepare for production launch

• Taking order from the customer

• Raw material from suppliers

• Converting raw material to finished goods in

• Those which create no value but are currently

• Those which don’t create value as perceived by

Supplier Supplier orders

Process 1 Process 2 Shipping

• All the activities of creation, ordering and

• Find ways to line up all essential steps needed

• Immediate feedback whether the • No feedback.

• Task requires only a small

Continuous flow layout – ideal situation

2. Rethink specific work practices and tools to

Lean techniques to make value flow

Flow is not enough

• If an organization uses lean techniques only to

• Organizations have to be sure that they are

• Produce products as the customer

• Benefits of the “Pull” system

Pull V/s Push

• In process and finished

Lean techniques for making the “Pull”

• Just in Time (JIT)

• Two approaches to perfection

• Both approaches necessary to pursue

• Use of technologies to eliminate waste.

• Use of the value stream partners (suppliers,

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