Lean Principle in Manufacturing

Timken Company

• Eliminates waste by:

- Using a boot camp approach that helps evaluate improvement opportunities and
present solutions to host plant management
- Here they’ve focused on removing no value-added steps from processes,
reducing process and equipment variation and eliminating wastes
• Increases speed and response by using flexible manufacturing systems
- Facilitates rapid, cost-effective changeover from one product to another,
combining the advantages of batch and mass production
Timken developed flexible manufacturing systems to facilitate rapid, cost
effective changeover from one product to another, combining the advantages of
batch and mass production.
• Improves quality by:
- Implementing the Breakthrough and Accelerated Continuous Improvement
programme and applying Six Sigma tools
• Reduces costs
To reduce costs Timken company used the Lean Six Sigma to reduce waste and variation
in production

Lean Principle in Service organizations

• Southwest Airlines
• Eliminates waste
In the airline industry, idle time is the largest form of waste
Keeping its airplanes in the air for a greater period that helps generate increased revenue
• Increases speed and response by:
- Using only one type of aircraft that helps minimize the airplane turnaround time
They’ve also introduced ticketless travel. Customers simply get a confirmation number and show up in
time
• Improves customers’ perception of quality and satisfaction by:
 Encouraging carry-on baggage
AND TO FURTHER Improves customers’ perception of quality and satisfaction they are Choosing
people-oriented employees
• Reduces costs by:
Having a short setup and turnaround time
And also Outsourcing airplane maintenance and repair to third parties
• Sometimes called Kanban systems
• Introduced at Toyota as an alternate to the traditional push system
• Push system: Produces finished-goods inventory in advance of customer demand, using
a forecast of sales
• Based on pull system
• Pull system: Employees at a given operation go to the source of the required parts and
withdraw units as they need them
• Pull parts from preceding workstations to synchronize the entire manufacturing process and the
final assembly schedule
• New parts that are just enough to replace those withdrawn are manufactured
• Steady rate of output is produced to meet the sales rate in small and consistent batch
sizes
• Results in manufacturing of new parts that are just enough to replace those
withdrawn
• Finished goods are made to coincide with the actual rate of demand, resulting in
minimal inventories and maximum responsiveness

Just in time systems

It is sometimes called Kanban systems and introduced at Toyota as an alternate to the traditional
push system.