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LEAN SIX SIGMA

& LEAN
SECOND EDITION

The Simplified Beginner’s Guides

to Lean Six Sigma & Lean

Benjamin Sweeney
in partnership with
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LEAN SIX
SIGMA
SECOND EDITION

The Simplified Beginner’s

Guide To Lean Six Sigma

Benjamin Sweeney
in partnership with

3
contents
LEAN SIX SIGMA 5
| 1 | An Introduction to Six Sigma 6
Figures 1 - 3 6
Figures 4 - 5 7
Figure 6 8
| 2 | Six Sigma : Key Tools & Processes 8
Figure 7 8
Figures 8 - 11 9
Figures 12 - 14 10
Figures 15 - 17 11
Figures 18 - 20 12
Figures 21 - 24 13
Figures 25 - 27 14
| 3 | An Introduction to Lean Production 15
Figure 28 15
Figure 29 16
Figure 30 17
| 4 | Lean : Key Tools & Processes 17
Figure 31 17
Figures 32 - 33 18
Figures 34 - 36 19
Figures 37 - 40 20
| 5 | The Hybrid Approach : Lean Six Sigma 21
Figures 41 - 42 21
Figures 43 - 44 22
Figures 45 - 46 23
Figures 47 - 49 24
Figures 50 - 51 25
| 6 | Lean Six Sigma Implementation 25

4
 Figure 52 25
Appendix A: Value Stream Mapping Sample 26
Figure 53 26
Figures 54 - 55 27
Figure 56 28
Figure 57 29
Appendix B 29
Figure 58 29
Figures 59 - 60 30
Key Questions & Answers 31
Chapters 1 & 2 Key Questions 31
Chapters 3 & 4 Key Questions 32
Chapter 5 Key Questions 33
Glossary 34
LEAN 38

5
 |1|
An Introduction to Six Sigma
fig. 1

fig. 2
Where
x = each value within the data set
x = the mean or arithmetical average
n = the number of values in the data set

fig. 3

Note : Even though the curve

never touches the x-axis, the
area under it still represents
100 percent, a fact that can be
proved mathematically using
calculus. An exploration of
this proof is well beyond
and in an entirely different
direction from the scope of
this book.

6
fig. 4

fig. 5

7
fig. 6

|2|
Six Sigma : Key Tools & Processes
fig. 7

8
fig. 8

fig. 9

fig. 10

fig. 11

9
fig. 12

fig. 13

fig. 14

10
fig. 15

fig. 16

fig. 17

11
fig. 18

fig. 19
Box Plot of 30 Performance
Scores Sample Data
60

50

40

30

20

10

fig. 20

Becomes:

12
fig. 21

fig. 22

fig. 23

fig. 24

13
fig. 25

fig. 26

fig. 27

Note: The pictured scatter

plot has a high correlation;
the spread is confined to
between approximately 70
and 90 units on the y-axis.

14
 |3|
An Introduction to Lean Production

fig. 28

15
fig. 29

16
fig. 30

|4|
Lean : Key Tools & Processes

fig. 31

17
fig. 32

fig. 33

18
fig. 34

fig. 35

fig. 36

19
fig. 37

fig. 38

fig. 39

Where
k = the process step (the specific activity within the process)
i = the number of things worked on in k

fig. 40

The value of OEE is the result of a number of preceding calculations. To help illuminate the progression of the
OEE formula, each element is assigned a letter, and the component calculations of OEE are represented by
formulas that employ these assigned letters for the sake of simplicity.

20
 |5|
The Hybrid Approach : Lean Six Sigma

fig. 41

fig. 42

21
fig. 43

fig. 44

fig. 44: A sample Kano analysis. This matrix is used to identify

satisfiers and dissatisfiers based on customer responses.

22
fig. 45

fig. 46

23
fig. 47
Where:
V = total value-added time
X = percent of products/services with quality defects
P = processing time per unit
D = demand for products/services
N = the number of tasks performed per activity
A = the number of activities/steps in the process
S = the longest setup time in the process

fig. 48

fig. 49

24
fig. 50

fig. 51

|6|
Lean Six Sigma Implementation
fig. 52

25
 | appendix a |
Value Stream Mapping Sample

fig. 53

26
fig. 54

fig. 55

27
fig. 56

28
fig. 57

| appendix b |

fig. 58

29
fig. 59

fig. 60

Complete Data from Chapter 2 – Six Sigma: Key

Tools & Processes, Statistical Analysis, Variation

30
 | key questions & answers |
Chapter 1 Key Questions

1. Which of the following best describes the DMAIC
process?
a) a terminating series of steps, performed just once
b) a feedback-based improvement process that is
performed continuously
c) a supply chain theory management system
d) DMAIC is not a process
2. The name “Six Sigma” comes from the Greek letter sigma
which represents the arithmetical average of a data set (the
mean).
a) true b) false
3. The Six Sigma hierarchy uses a system of which of the
following to denote rank and responsibility? ?

a) colored cards b) alphanumeric call signs

c) a progressive series of shapes d) colored belts
Answers
1b, 2b, 3d

Chapter 2 Key Questions

1. Discrete data is data that can be measured on a continuum 4. Which of the following best describes a data collection
scale and can be infinitely divided. plan?

a) true b) false a) it is not important because data is always available

2. Binary data is best described as which of the following? b) it is very important to ensure consistent & accurate results

a) pass/fail b) true/false c) it is not important because collection measures are at the

c) yes/no d) all of the above discretion of production staff

3. Which of the following best describes the Six Sigma d) it is important because planning leads to goal
interpretation of a business process? accomplishment

a) x factors such as output generate y factors such as input 5. Which of the following are considered statistically sound
and processes sampling methods?

b) x factors such as input and processes generate the y a) judgment & convenience b) pace & precision
factor output c) random & convenient d) random & systematic

c) the y factor output generates the x factors input and 6. Standard deviation (σ) is helpful for which of the
processes following reasons?

d) x factors do not impact the business process, only y a) it is a measure of central tendency
factors do b) it is a measure of variation
c) it is expressed in real units
d) it is expressed in the form “units2”

Answers
1b, 2d, 3b, 4b, 5d, 6c

31
Chapter 3 Key Questions
1. The Lean production system identifies three overarching
sources of waste designated muda, muri, and mura. What
do these three concepts represent?
a) motion, transportation, and defective production
b) waste, cost, and futility
c) waste, unevenness, and overburden
d) training, correction, and utilization
Answers
1c, 2d, 3b
Chapter 4 Key Questions
1. The pull production system method of manufacture seeks
to alleviate which of the following challenges normally
associated with traditional push methods?
a) long line downtimes due to line changeovers
b) buffer inventory and surplus stock to correct for demand
fluctuations
c) large, inflexible batch sizes
d) all of the above
2. Process mapping should be done as a business activity and
offers no additional value.
a) true b) false
3. SIPOC is which of the following?
a) service, infrastructure, process, overtime, customers
b) suppliers, inputs, process, outputs, customers
c) suppliers, infrastructure, process, outputs, customers
d) SIPOC is none of the above
4. Which of the following best describes the process of value
stream mapping?
a) a complex mapping process that displays all inputs for
a process
b) a low-cost method of understanding customer needs
c) an independent audit of a production facility
d) a mapping process for administrative functions
Answers
1d, 2b, 3b, 4a, 5c, 6d, 7a, 8d
32
2. Which of the following is a D.O.W.N.T.I.M.E. source of
waste?
a) motion b) transport
c) overprocessing d) all of the above
3. Kaizen is a core principle of the Lean production system.
How does kaizen impact an organization?
a) kaizen is a system of manufacturing best practices
b) kaizen is a system of continuous improvement
c) kaizen is a line change solution
d) kaizen is a method of tool selection
5. Which of the following is not an element of the 5S
method?
a) sort b) segregate
c) select d) standardize
6. When calculating the time-based metric PCE (process
cycle efficiency), which of the following best describes
process lead time?
a) a scheduled period of production
b) the amount of time in a process that is committed
to adding value
c) a calculated value derived from a process map
d) a calculated value reached using Little’s Law
7. Total productive maintenance (TPM) is a structured and
comprehensive program designed to accomplish which of
the following?
a) reduce unscheduled downtime due to equipment failure
b) increase scheduled downtime so that it can be better
planned for
c) increase production staff competency in process
functions
d) better match product offerings with customer needs
8. Rapid setup methods are beneficial to the production
process in which of the following ways?
a) an increase in production flexibility
b) shorter line changeover times
c) a decrease in batch sizes resulting in less inventory
d) all of the above
Chapter 5 Key Questions

1. Which of the following VOC data collection methods can 4. The PCED equation is best suited to determine which
be used to gather quantifiable data instead of qualitative? characteristic of a process?

a) focus groups b) surveys a) adherence to customer specs

c) point-of-use-observations d) interviews
2. Surveys should be used alone when gathering VOC data.
a) true b) false
5. Why is a pairwise comparison a necessary follow-up to an
3. Which of the following best describes critical-to-quality
requirements?
a) the total value-added time within a process
b) the standard deviation of a process from its intended
result
c) the determining criteria in judging process inputs
d) the parameters of a process that indicate which
production outputs meet customer specs and which do not
b) the role that a subprocess has in contributing to PCE
c) identifying areas where staff may be better implemented
to reduce waste
d) identifying the Voice of the Customer
ANOVA analysis?
a) because ANOVA analyses don’t account for variation
b) because ANOVA analyses are inconclusive
c) because ANOVA analyses don’t identify specific data
points of variation
d) pairwise comparisons aren’t necessary when performing
ANOVA analyses

Answers
1b, 2b, 3d, 4b, 5c

33

5 Whys
A cause and effect investigative tool that
consists of a progressive iteration of the
question “why?”.
5M
The 5 M’s of manufacturing. The 5 M’s
represent the primary categories of
causal effects that should be considered
when brainstorming potential causes
for inclusion in a fishbone diagram. The
5 M’s are as follows: machine, method,
material, manpower, and measurement.
5S Method
A process-oriented program of
workplace organization. The 5S
method standardizes best practices for
the efficient execution of day-to-day
activities. The 5 S’s are as follows: sort,
segregate, shine, standardize, and self-
discipline.
ANOVA
Analysis of Variables. A software-based
statistical comparison of two sets of
data to identify significant variation.
ANOVA analyses identify variation
between two sets, but do not identify
which elements vary from one another.
A Tukey’s Pairwise Comparison is often
also required to identify specific areas of
variation.
Attribute Nominal Data
Discrete datum points that are labels
without a relevant order or measurable
magnitude. Labels are important aspects
of information gathering, but attempting
to derive insights from attribute nominal
data is useless—they do not represent
concrete data within the real world.
Example: Dept. A, Dept. B, Dept. C…
Attribute Ordinal Data
Discrete datum points that are labels
with relevant order that conforms to an
ordinal scale. Attribute ordinal data does
not provide a scale or magnitude in the
sense that the difference between each
of the values is not measurable and the
impact of each value is poorly defined.
Example: Poor, Satisfactory, Good,
Outstanding.
| glossary |
Binary Data
Discrete data that can only be expressed
as one of two possible outcomes.
Example: Yes/No, Pails/Fail.
Box Plots
Visual representations of data that can
be used to quickly compare two data sets
and identify outliers. Box plots represent
50% of the data that falls inside the IQR
(interquartile range) as a shaded box,
then the remaining 50% is displayed
outside the box. 1.5x the IQR in either
direction is represented by terminating
lines known as whiskers. Any outliers are
plotted as individual points outside these
whiskers.
Checksheets
Organized data collection forms that
are designed to simplify and standardize
the data collection process. Checksheets
should be created specifically for the
data collection use at hand to ensure that
critical observations are recorded on a
consistent basis.
Colored Belt System
The organizational hierarchy prescribed
by the Six Sigma program whereby
different groups of staff members are
identified with colored belts or ranks
similar to martial arts programs. These
rank assignments reflect that group’s
involvement in the Six Sigma process.
Continuous Data
Data that can be measured on a
continuum scale and can be divided
infinitely. Example: call duration,
temperature, lead time.
Convenience (Sampling)
Sampling through convenience is
considered a poor method of data
collection and should be avoided. Simply
only gathering sampling data that can be
accessed with convenience does not paint
an accurate picture and will not represent
the population at large.
Count Data
Discrete data that represents physical
counts. Example: counted number of
defects, counted number of calls.
34
Critical-to-Quality Requirements
Actionable parameters and specifications
that are generated from collected VOC
(Voice of the Customer Data). CTQ
requirements are the practical application
of often vague or poorly defined
customer needs.
Customer Segmentation
The process of classifying and organizing
different groups of customers based
on their value to the organization and
other relevant characteristics. Different
segments may have different needs, and
therefore may generate different CTQ
requirements. Example: B2B customers,
B2C customers.
D.O.W.N.T.I.M.E.
An acronym that represents the eight
sources of waste that make up muda,
or physical waste within the Lean
system. They are defective production,
over-processing, waiting, non-used
(or underutilized) employee talent,
transportation, inventory, motion, and
excessive production.
Defect
Any aspect of a product or service that
fails to meet a customer’s needs or does
not match specifications. This could be
defective production or less tangible
defects such as failure to deliver within
budget, or late delivery.
Descriptive Statistics
Statistical analysis of an entire
population, as opposed to inferring
attributes of that population via a
representative sample (inferential
statistics).
Discrete Data
Any data that is not continuous is
considered discrete data. Discrete data
cannot be measured on a continuum
scale, and it cannot be divided infinitely.
Discrete data can be broken into four
subcategories: count data, binary data,
attribute nominal data, and attribute
ordinal data.
DMADV
Also known as Design for Six Sigma,
DMADV is a structured approach to
the design and introduction of new
processes and product lines. DMADV
is an acronym meaning design, measure,
analyze, design, and verify.
DMAIC
A core theme to the Six Sigma and
Lean Six Sigma programs, DMAIC
is a structured improvement program
that aims to improve processes through
the use of data collection and analysis
methods. DMAIC is an acronym that
stands for design, measure, analyze,
improve, and control.
DPMO
“Defects per million opportunities” or an
expression of a processes’ overall defect
rate.
Economies of Repetition
The concept that the more frequently a
standardized process is completed the
higher the degree of accuracy and process
adherence is achieved by the staff that
performs these activities.
Economies of Scale
The concept that producing larger
quantities of goods spreads fixed costs
out over a larger number of units
therefore decreasing overall cost. This
is a common feature of traditional push
production systems.
Fishbone Diagram
Also known as an Ishikawa diagram or a
herringbone diagram, fishbone diagrams
are effective cause and effect tools that
can be used to investigate the root causes
of unwanted effects.
Inferential Statistics
Statistical analysis of a representative
sample instead of an entire population.
Inferential methods save data collectors
time and increase the speed of the
decision making process. The opposite
of inferential methods is the practice of
descriptive statistics, or the statistical
analysis of an entire population at once.
Inputs
Anything that, once processed (run
through a process) produces outputs.
Inputs can be materials, supplies,
effort, administrative duties, or even
transportation.
Interquartile Range (IQR)
The IQR is the difference between the
upper and lower quartiles. This value
is used to identify the upper and lower
bounds of a box plot, and the area
of 3IQR determines the length of a
box plot’s whiskers (1.5IQR in each
direction). Any values that fall outside of
the whiskers are considered outliers.
Ishikawa Diagrams
See Fishbone Diagrams
Judgment (Sampling)
Sampling through judgment—even best
judgment—is considered a poor method
of data collection and should be avoided.
Simply only gathering the data that a
collector feels is appropriate will result in
biased and inaccurate data.
Just-In-Time
An inventory and production
management system that emphasizes
speed and flexibility. Just-in-Time
methods rely on tight scheduling
to ensure that instead of carrying
inventories, the materials for production
are delivered in time for production and
that finished goods are similarly moved
downstream within the supply chain—
delivered as needed and not kept in
inventory.
Kano Analysis
A refining process that aid decision
makers in understanding the relationship
between customer requirements and
deliverables.
Little’s Law
A formula used to calculate process lead
time which is a component of the PCE
(process cycle efficiency) calculation.
Machine (5M)
A causal category for the construction of
fishbone diagrams. The machine category
encompasses any equipment related
to the process at hand. This includes
computer systems and production tools
primarily, but also extends to all tools
that may be a part of the production
process.
Manpower (5M)
A causal category for the construction
of fishbone diagrams. The manpower
category encompasses any people who
might have a causal impact on the
process at hand.
35
Material (5M)
A causal category for the construction of
fishbone diagrams. The material category
encompasses any and all materials that
are involved in the production cycle and
that may have a causal impact on the
process at hand.
Mean
The arithmetical average of a set of data.
Measurement (5M)
A causal category for the construction
of fishbone diagrams. The measurement
category encompasses any and all
measurements and data collection that
may occur in regard to the process
at hand. This includes the accuracy
of observations, thoroughness of
investigations, and the calibration of
data-gathering equipment.
Measurement Selection Matrix
A visual tool that is used to determine
which x and y factors relate to which
customer requirements. This tool can
be helpful when decision makers are
attempting to understand which metrics
to measure about a process.
Measures of Central Tendency
The tendency of data to cluster around
a central point or value. The three most
common measures of central tendency
are mean, median, and mode.
Measures of Spread
Calculations that identify the variation
within a data set. This includes the range,
variance, and standard deviation.
Median
A measure of central tendency, the
median is the middle number in an
ordered data set.
Method (5M)
A causal category for the construction of
fishbone diagrams. The method category
encompasses the total sum of protocols,
process design, and methodology
employed for the execution of the process
at hand.
Mode
A measure of central tendency. The mode
is the most commonly occurring number
in a data set.
Muda
One of the three wastes outlined by
the Lean production system. Muda
translates from Japanese as “futility,” and
it represents physical waste.
Mura
One of the three wastes outlined by the
Lean production system. Mura represents
waste in the form of unevenness.
Muri
One of the three wastes outlined by the
Lean production system. Muri represents
waste in the form of overburden.
Population Sampling
A component of inferential statistics
whereby a representative sample of a
population is collected. Insights produced
from the analysis of this sample can be
inferred to represent the population at
large. Sampling and other inferential
statistical methods save time during the
data collection process and increase the
speed of date-informed decisions.
Predictor Measures
Predictor measures are lead measures that
can serve as indicators to the outcome
of a process. The “inputs” and “process”
segments of a business process (x factors)
are predictor measures.
Process Cycle Efficiency (PCE)
PCE is a concise measurement of a
process’ efficiency and performance. It is
a measure of “value-add time” compared
against the lead time for that same
process.
Process Mapping
The visual documentation of a process
from start to finish. Process mapping
is a flowchart-style representation
of a process that has a multitude of
uses from internal communication, to
external communication, cause and
effect investigation, and training. Process
mapping is a less involved and less
detailed visual aid than the much more
complex value stream map.
Process Sampling
Samples taken from a changing or
continuous flow. Process sampling can be
described as the sampling of every nth
unit, or taking a sample at a regular time
or cycle intervals.
Product Family Grid
A visual tool that organizes products or
services into “families” based on similar
components such as shared sub processes
or common materials.
Pull Production System
An essential component of the Lean
production system, the pull production
system is a responsive and flexible
manufacturing method that relies on
customer demand to “pull” materials
through production. Instead of the
traditional push production methods
of leveraging the economies of scale
through large batch sizes and relying
on artificial forecasted demand, the pull
production system emphasizes meeting
the customer’s needs through small batch
sizes and low-inventory methods such as
Just-in-Time.
Push Production
The push production system is a more
traditional approach to manufacturing.
Utilizing large batch sizes to leverage
the economies of scale, push production
manufacturers rely on artificial forecasted
demand.
Range
A measure of spread, the range of a set of
data is the lowest value (min) subtracted
from the highest value (max).
Result Measures
Result measures are lag measures that are
dependent on predictor measures (lead
measures, x factors). Result measures
are represented by y factors, and are the
outputs of a process.
Segregate (5S)
A component of the 5S system, segregate
is the organization of sorted items, tools,
and materials into their most useful and
efficient layout or configuration so that
the necessary tools are always at hand.
Self-Discipline (5S)
A component of the 5S system, the
self-disciple element ties all of the 5S
activities together by generating the
standard for regular application and
protocol.
Shine (5S)
A component of the 5S system, the shine
element strives to produce a clean and
tidy production environment. Clutter
creates waste and inefficiency as well as
safety hazards. Shine also encompasses
the idea of inspection through cleaning,
or the regular maintenance of equipment
through normal cleaning activities.
36
SIPOC Diagram
A SIPOC diagram is a snapshot of
a process’ suppliers, inputs, processes,
outputs, and customers presented in the
order in which they interact with one
another.
Sort (5S)
A component of the 5S system, is
an everything-has-a-place approach
to a clean, efficient, and clutter free
workstation. As an activity, sort strives
to identify and reduce the number of
items that are unnecessary from specific
workstations.
Spaghetti Plots
Also known as workflow diagrams,
spaghetti plots are visual diagrams
of physical work flow. They present a
complete visual picture of how “things”
move throughout a process or a space—
these “things” could be people, materials,
finished goods, or even information and
financials.
Standard Deviation
Standard deviation is the average
distribution of variation within a data
set, or the average distance that each data
point is away from the mean. Standard
deviation is represented by the Greek
letter lower case sigma (σ).
Standardization (5S)
A component of the 5S system,
standardization is the process by which
the other 5S elements are maintained
and regularly applied for best impact.
Stratification Factors
The contributive factors (known as strata)
that can segregate groups of data into
subgroups. This method of classification
can reduce the complexity of difficult-
to-handle problems and allow decision
makers to investigate root causes in a
more effective and comprehensive way.
Total Productive Maintenance (TPM)
An in depth and comprehensive program
that strives to reduce downtime due
to equipment failure or malfunction.
Focusing on preventative and predictive
maintenance, TPM is a standardized
approach to equipment maintenance and
care with a wide range of applications.
Total Quality Management (TQM)
A parallel quality improvement program
to Six Sigma that focuses on quality
improvement and a customer-centric
specification set.
Tukey’s Pairwise Comparison
A follow-up computation of the results
of an ANOVA analysis. A pairwise
comparison compares every data point
within the analyzed sets to identify the
exact locations of statistical differences;
while ANOVA analyses identify
statistical differences, they fail to identify
the exact location(s) within the compared
data sets.
Value Stream Mapping
A complex and costly examination
of a process that provides invaluable
insight for decision makers. Produced
as a series of steps that overlay one
another, a complete value stream map
includes the total picture of all of the
aspects of a process. While the critical
value of a value stream map to decision
makers cannot be overstated, the process
should be reserved for similarly critical
and high volume processes due to the
labor intensive nature of this visual aid’s
construction.
Variance
Within the field of statistics, variance
is defined as how far away data points
are from the mean of the set. Practically
speaking, this is the number of units in
production that are outside of tolerances.
Voice of the Customer (VOC)
A unifying concept between the Lean
and Six Sigma programs, VOC data
represents the needs of the customer.
Once distilled into actionable goals,
this raw data becomes the CTQ
requirements that drive the definition
and identification if defects, as well as the
specifications for production. Voice of
the Customer data can be collected in a
number of ways, such as interviews, focus
groups, point-of-use observations, and
surveys. Best when used in conjunction
with one another, these methods should
be tailored to the customer segment.
Workflow Diagrams
See Spaghetti Plots
37
LEAN
SECOND EDITION

The Simplified Beginner’s

Guide To Lean Six Sigma

Benjamin Sweeney
in partnership with

38
contents
LEAN 38
Introduction 40
Figure 1 40
| 1 | Six Components of Lean Philosophy 40
Figure 2 40
Figures 3 - 5 41
Figures 6 - 7 42
Figure 8 43
Figure 9 44
| 2 | Lean Production 45
Figures 10 - 12 45
Figures 13 - 16 46
Figures 17 - 18 47
Figures 19 - 20 48
Figures 21 - 23 49
Figures 24 - 25 50
Figures 26 - 28 51
Figures 29 - 30 52
| 3 | The Lean Toolkit 53
Figures 31 - 32 53
Figures 33 - 34 54
| 4 | Implementation Considerations 55
Figures 35 - 36 55
Appendix: Value Stream Mapping Sample 56
Figures 37 - 38 56
Figures 39 - 40 57
Figure 41 58
Key Questions & Answers 58
Chapter 1 Key Questions 58
Chapter 2 Key Questions 59
Chapter 3 & 4 Key Questions 60
Glossary 61
39
 | introduction |

fig. 1

|1|
Six Components of Lean Philosophy
fig. 2

40
fig. 3

fig. 4

fig. 5

41
fig. 6

fig. 7

fig. 7 : A sample A3 master sheet. Note that the terminology within

each of the steps can vary, though the intent remains the same.
42
fig. 8

fig. 8 : The A3 problem-solving method framed as an extension

of the PDCA cycle. Note how each of the A3 steps can be
classified as corresponding to a portion of the PDCA method.

43
fig. 9

44
 |2|
Lean Production
fig. 10

fig. 11

fig. 12

45
fig. 13 fig. 14

fig. 15

fig. 16

46
fig. 17

fig. 18

fig. 18 : A physical structure map based on cost. Here, the 1st tier of distribution and
the 3rd tier of production have the largest impact on costs and therefore are the primary
candidates for waste reduction activities. 1st tier production and 3rd tier distribution are
lower cost centers. This is representative of production that has intensive finishing work (3rd
tier production) and uses outsourced distribution—the diminishing cost of distribution.

47
fig. 19

fig. 20

fig. 20 : A model of a heijunka box. Each of the cards represents a product

traveling through production. The repeating patterns demonstrate at a glance
that production is even and flowing. This time interval is set to days of the
week, but a box could be as micro as thirty-minute intervals if need be.

48
fig. 21

Where :
T = Takt time
Ta = Work time per period (net
available work expressed as time)
D = Customer demand or simply demand
(expressed as production units)

fig. 22

fig. 23

49
fig. 24

fig. 25

fig. 25 : Fixed product

layouts are most
applicable to the
production of goods
that cannot be feasibly
moved through a
production line (such
as aircraft or large
structures). This facility
layout focuses instead
on moving workstations
as needed around a
static product until
production is complete.

50
fig. 26

fig. 27

fig. 27 : Each product enters the production cycle based on which workstations are
required to produce finished goods. Not all workstations will be needed for each product.

fig. 28

51
fig. 29

fig. 30

fig. 30 : Cyclic demand shown over time. The shaded area represents the fulfillment of overall
demand, through excess production and insufficient production throughout that period.
The black line at the 800-unit level indicates the leveled average volume of production.

52
 |3|
The Lean Toolkit
fig. 31

fig. 32

53
fig. 33

fig. 34

54
 |4|
Implementation Considerations

fig. 35

fig. 36

55
 | appendix |
Value Stream Mapping Sample

fig. 37

fig. 38

56
fig. 39

fig. 40

57
fig. 41

| key questions & answers |

Chapter 1 Key Questions

1. The Lean philosophy of manufacturing and 3. Which of the following is not one of the core
production seeks to differentiate value-added components of Lean philosophy?
activities from those that do not add value. Non-
value-added activities are also known as what? a) visibility b) accountability
c) a broad view d) flexibility
a) effort b) production
c) quality d) waste 4. An organization that employs the Lean methodology
understands that innovation comes exclusively from
2. The concept of kaizen permeates the entire Lean management and research and development endeavors.
model. Kaizen is a focus on what business activity?
a) true b) false
a) financial accountability
b) continuous improvement 5. The PDCA process is which one of the following types
c) customer relations of tools?
d) maximum productive effort
a) process improvement too b) staff development tool
c) manufacturing tool d) PDCA is not a tool
Answers
1d, 2b, 3b, 4b, 5a
58
Chapter 2 Key Questions

1. The pull production system differs from traditional
push production in what way?
a) pull production requires much higher cycle speeds
b) pull production requires less labor
c) pull production paces production with demand
d) there is no difference
2. Which of the following statements best describes value
stream mapping?
a) value stream mapping is a method of trickling value
across the organization
b) value stream mapping is a tool used to analyze the
current state of processes and to identify waste
c) value stream mapping is a tool used to calculate the
production time per unit based on total available time
d) value stream mapping is a management tool used to
assist decision makers in efficient employee deployment
3. Kanban is a culture of continuous improvement.
a) true b) false
product flow using Just-in-Time methods
5. Which of the following is an advantage of small lot
production?
a) smaller lot sizes increase the flexibility of production
b) smaller lot sizes reduce waste through the
elimination of safety stock
c) smaller lot sizes are very responsive to changes in
demand
d) all of the above
6. What is the purpose of executing a SMED (Single
Minute Exchange of Die) program?
a) to increase the capacity of all transfer and stamping
machines
b) to reduce the duration of downtime due to line
changeovers
c) to reduce materials inventory throughout the supply
chain

4. When employing Just-in-Time inventory and supply d) to level production by focusing on the demand
chain protocols, which of the following statements is component
true?
7. Six Sigma is a Lean planning tool that is used to
a) goods and materials are scheduled in such a manner measure visibility.
that only the amounts that are needed are moved
throughout the supply chain, which reduces waste and a) true b) false
carried inventory
8. The construction of a high-capacity passenger aircraft
b) goods and materials are scheduled in such a manner would probably be best carried out under which of the
that only the amounts that are needed are moved following facility layouts?
throughout the supply chain, which increases waste
and carried inventory a) product layout b) cellular layout
c) fixed position layout d) process layout
c) Just-in-Time drivers and warehouse workers are
mandated to work twice as fast to keep up with
tightened scheduling techniques

d) visual scheduling techniques enable a more level

Answers
1c, 2b, 3b, 4a, 5d, 6b, 7b, 8c
59
Chapter 3 Key Questions
1. Ishikawa diagrams, also known as fishbone diagrams,
are used for what purpose?
a) fishbone diagrams are a productivity mapping tool
b) fishbone diagrams are a cost evaluation tool
c) fishbone diagrams are a scheduling tool
d) fishbone diagrams are a cause-and-effect tool
2. A spaghetti plot can be used to map which of the
following?
a) the path that materials take across the factory floor
b) the path that employees take during production
activities
c) the path that employees take within an office setting
d) all of the above
Answers
1d, 2d, 3b, 4a, 5c
Chapter 4 Key Questions
1. Although an organization-wide respect for people is a
positive goal, it is not an asset of kaizen culture.
a) true b) false
2. The 5S method includes which of the following process
activities?
a) sample b) substitute
c) standardize d) support production
3. The 5S method is a process-oriented method of
workplace organization.
a) true b) false
Answers
1b, 2c, 3a, 4b, 5d
60
3. Poka-yoke measures are designed to reduce which of
the following within the production process?
a) costly employee overtime
b) defects caused by human error
c) machine deterioration due to poor maintenance
d) waste events linked to transportation
4. The decision to outsource is complex and focuses on
the relationship between impact and criticality.
a) true b) false
5. The Theory of Constraints is a set of process
improvement tools founded on which of the following?
a) the assumption that demand changes in a predictable
manner
b) the assumption that production can be scaled to fit
fluctuating demand
c) the premise that there is always at least one
constraint that is limiting a system
d) the premise that a system starts out with no
constraints, but that constraints are the product of
human error
4. When implementing Lean across an entire
organization, management can expect to see
immediate return on their investment.
a) true b) false
5. Which of the following is a concern when
implementing Lean across an organization?
a) the cost of retraining staff
b) a disconnect between the Lean philosophy and its
practical tools
c) the impact and cost that disruption due to change
can bring
d) all of the above

5M-
the 5 M’s of manufacturing. The 5 M’s
represent the primary categories of
causal effects that should be considered
when brainstorming potential causes
for inclusion in a fishbone diagram. The
5 M’s are as follows: machine, method,
material, manpower, and measurement.
5S Method-
a process-oriented program of
workplace organization. The 5S
method standardizes best practices for
the efficient execution of day-to-day
activities. The 5 S’s are as follows: sort,
segregate, shine, standardize, and self-
discipline.
5W1H-
a structured investigative method used to
determine the root cause of an issue. The
process uses a successive series of “why”
questions to bring hidden causal effects
to the surface.
A3 Problem Solving Method-
a practical application of the PDCA
process improvement and problem
solving method. Using a single piece of
ISO A3-sized paper (11”x17”), the focus
of problems is narrowed, and a structured
investigative approach can be applied.
Buffer Inventory-
see Safety Stock.
Bullwhip Effect-
the concept that miscommunication
amplifies disruption and variation
throughout the supply chain and
throughout an organization. When one
department gets a garbled message,
they are likely to distort it to the next
department and so on until it reaches
the final recipient, where the message is
completely distorted.
Cellular Facility Layout-
a facility layout that aims for maximum
flexibility and efficiency by combining
aspects of the product-oriented facility
layout and the process-oriented facility
layout. Clusters of workstations are
organized into “product families” and
then designed to fit the process layout.
| glossary |
Core Competency-
a set of business operations at which
a particular organization excels. A
core competency is the foundational
component of competitive edge.
D.O.W.N.T.I.M.E.-
an acronym used to help remember the
eight sources of physical waste (muda):
defective production, overprocessing,
waiting, non-used employee talent,
inventory, motion, and excessive
production.
Decision Point Analysis-
a tool primarily used by organizations
utilizing a “T” configuration production
scheme. This mapping tool identifies
the point at which pull demand (actual
customer demand) gives way to demand
that has been forecasted (artificial
demand).
Outsource Decision Matrix-
a tool used to identify processes,
activities, and tasks that are candidates
for outsourcing through the comparison
of criticality and impact.
Demand Amplification Mapping-
also known as Forrester Effect Mapping,
demand amplification mapping is a visual
tool used to identify the distortion that
occurs between different supply chain
entities within the value stream.
Economies of Repetition-
the concept that the repetition of
specific activities and processes increases
efficiency over time.
Economies of Scale-
the microeconomic concept that as the
size and output of a manufacturing
operation increases, costs can be spread
out over more units, thereby reducing the
cost to produce each unit. Economies
of scale is a large cost reduction driver
of push production and large batch
manufacturing.
61
E-Kanban-
the electronic integration of a kanban
system into an organization’s ERP
(enterprise resource planning) software.
E-kanban systems generally cost more
to implement, but have unprecedented
levels of visibility and do not suffer
from the disruptions of lost, illegible, or
damaged kanban cards.
External Setup Operations-
line changeover setup operations that
can be performed while the production
machine is still running. This is much
more desirable than changeovers that
require machine shutdown (internal
setup operations) because the production
line can continue to move while
adjustments are taking place.
Fixed Position Facility Layout-
a facility layout method best employed
when the product in question is so large
or heavy that workstations move around
the product rather than the product
moving around the workstation.
Forrester Effect Mapping-
see Demand Amplification Mapping.
Heijunka Box-
a visual scheduling tool that uses a grid-
like construction to organize various
kanban control cards by their various
stages within the production process.
An essential tool to promote even
production flow, heijunka boxes are a
critical scheduling component of kanban
implementation.
Internal Setup Operations-
line changeover operations that require
that the production machine be shut
down, thus causing stoppage on the
production line. The Single Minute
Exchange of Die method seeks to reduce
this disruption by converting internal
setup operations into external ones.
Inventory-
the total on-hand store of goods,
materials, and supplies. For production
operations, production inventory is
broken into three stages: raw materials,
work in progress, and finished goods.
Ishikawa Diagrams-
cause-and-effect diagrams that are used
to investigate and determine the root
causes of a specific effect impacting a
process at hand. Also known as fishbone
diagrams.
IVAT Analysis-
see Production Variety Funnel.
Just-in-Time-
a method of cost reduction through
the elimination of carrying inventory.
Just-in-Time protocols ensure that only
the amount of materials needed for
production are transported, and that
they arrive exactly when needed. On the
finished goods side of production, JIT
methods produce small batches that are
a close match for customer demand, and
are scheduled and produced in such a
way that the manufacturer never has to
carry inventory.
Kaizen-
the implementation of a culture of
constant improvement, and a central
theme of the Lean philosophy and
business model. Kaizen is built on the
premise that continual, incremental
change causes the least amount of
disruption, and that change can build
upon other, previous changes to create
innovation and competitive edge. Kaizen
values the input of employees at all levels
of the organization, recognizing that
the spark of innovation can come from
anywhere.
Kanban-
a flow-oriented method of material and
goods coordination and replenishment.
Based on the shelf-stocking methods
of supermarkets, kanban operations
simultaneously move products through
the value stream while replenishing the
materials that were consumed through
production.
Lag Measures-
metrics and insights that can be gathered
after the fact. Lag measures represent the
feedback portion of a closed-loop system.
Lean Six Sigma-
a hybrid business management system
that includes components from both
Lean Manufacturing and Six Sigma
Quality. Lean Six Sigma offers a total
package of production optimization,
quality control, waste reduction, and
competitive edge.
Machine (5M)-
a causal category for the construction of
fishbone diagrams. The machine category
encompasses any equipment related
to the process at hand. This includes
computer systems and production tools
primarily, but also extends to all tools
that may be a part of the production
process.
Manpower (5M)-
a causal category for the construction
of fishbone diagrams. The manpower
category encompasses any people who
might have a causal impact on the
process at hand.
Material (5M)-
a causal category for the construction of
fishbone diagrams. The material category
encompasses any and all materials that
are involved in the production cycle and
that may have a causal impact on the
process at hand.
Measurement (5M)-
a causal category for the construction
of fishbone diagrams. The measurement
category encompasses any and all
measurements and data collection that
may occur in regard to the process
at hand. This includes the accuracy
of observations, thoroughness of
investigations, and the calibration of
data-gathering equipment.
Method (5M)-
a causal category for the construction of
fishbone diagrams. The method category
encompasses the total sum of protocols,
process design, and methodology
employed for the execution of the process
at hand.
Muda-
one of the three overall sources of waste,
muda represents physical waste events.
All physical waste events can be traced
back to the D.O.W.N.T.I.M.E. eight
sources of waste.
Mura-
one of the three overall sources of waste,
mura represents waste in the form of
unevenness of production, or unequal
production loading.
62
Muri-
one of the three overall sources of waste,
muri represents waste in the form of
overburden or a failure to understand
production capacity.
Net Available Time to Work-
a component of takt time calculation.
The total amount of time that is available
for production activities, less breaks and
other nonproduction time set aside for
business activities.
Non-Value-Added-
activities that do not produce value
that can be passed along to the
customer. Non-value-added events
are considered waste, and the Lean
philosophy relentlessly works to not only
differentiate value-added from non-
value-added activities, but to reduce the
impact that non-value-added activities
(waste events) have on business processes.
Outsourcing-
the process of assigning business
activities to a third party vendor or
business with the intent of leveraging the
economies of core competency or cost
reduction.
PDCA-
a problem-solving and process-
improvement process that focuses on
creating actionable feedback. Plan, Do,
Check, Adjust (or Act), also known as
the Deming Cycle, has a wide variety
of applications not only across the Lean
business model but across a variety of
industries.
Physical Structure Mapping-
an overview of an entire supply chain
that is generated based on its physical
structure. The physical structure map
can be constructed either by visualizing
cost centers or through volume-based
mapping.
Poka-Yoke-
intentional constraints that are
introduced into operations to reduce
defective production due to human
error. These “foolproofing” measures
turn normal operations activities into
processes, improving teachability and
leveraging the economies of repetition.
Process Activity Mapping-
a narrower look at the components of a
value stream. This tool dissects and maps
individual processes as opposed to the
entire value stream.
Process Facility Layout-
a facility layout that favors products
with low volumes and high levels of
differentiation. Under this facility layout
protocol, workstations and resources are
grouped based on the various paths that
produce the product variants.
Product Facility Layout-
a facility layout that is ideal for mass
production—high volumes of products
with little or no differentiation. This
facility layout is most closely associated
with traditional manufacturing, the push
production system, and the economies of
scale.
Production Leveling-
the process of reducing the creation
of waste events due to unevenness of
production flow. Production leveling can
be performed on the production side of
the equation as well as the demand side
to introduce evenness into production.
Production Variety Funnel-
also known as an IVAT analysis, the
production variety funnel analysis
identifies which set of manufacturing
models the production of a particular
product conforms to. Once the mode of
production has been identified, specific
and known traits and protocols can be
applied to the production of goods.
Pull Production System-
the opposite of the push production
system, the pull production system
focuses on customer demand. As demand
is generated, materials and goods are
“pulled” into the production cycle, and
in this way production matches demand
as demand changes. The pull production
system, when working in tandem with
many of Lean’s flexible manufacturing
methods, creates a responsive production
process that matches demand and does
not carry excess inventory or generate
waste through the production of large
batches.
Push Production System-
the traditional approach to
manufacturing whereby artificial demand
is “pushed” through the production
cycle. Large batches of goods are stored
in anticipation of forecasted sales.
Leveraging the economies of scale, costs
are spread out over a high number of
units, bringing the unit cost down and
picking up the slack of this high-waste
system.
Quality Filter Mapping-
a visual tool that identifies areas where
quality issues exist within a value stream.
With the deployment of this method,
three sources of insufficient quality can
be identified: product defects, service
defects, and internal scrap.
Raw Materials-
the basic materials from which finished
goods are made. This unfinished material
is generally assumed to be homogeneous
and comprises the raw materials portion
of production inventory (raw materials,
work in progress, finished goods).
Safety Stock-
a buffer to insulate inventory levels from
fluctuations in demand. Safety stock is
a characteristic of the push production
system, where artificial demand is
“pushed” through the production process.
Conversely, the pull production system’s
flexibility and focus on actual demand
eliminates the need for, and cost of
carrying, safety stock.
Segregate (5S)-
a component of the 5S method,
segregation is the next logical step after
sorting. Once materials and tools have
been examined and determined to be
relevant to the process at hand, they are
organized (or segregated) to ensure that
they are available in an efficient manner.
Self-Discipline (5S)-
a component of the 5S method, self-
discipline (also known as “sustain”) is
the structured and conscious effort to
maintain the rigors of the 5S method
and sustain the gains afforded by its
implementation.
Shine (5S)-
a component of the 5S method, shine
reflects all of the positive aspects
of maintaining a clean and orderly
workplace. From employee confidence
and respect to reduced safety hazards, a
clean workplace is an efficient one.
63
Single Minute Exchange of Die
(SMED)-
a flexibility and cost-cutting program
that strives to reduce the line changeover
time to a single digit number of minutes.
This radically increases the flexibility and
responsiveness of production and reduces
levels of waste. Mastering SMED within
an organization is a critical component
of a highly developed and flexible pull
production system.
Six Sigma Quality-
a process-improvement and quality-
focused business management method
that uses statistical tools to improve
productivity and quality throughout.
Many of the tools available within
the Six Sigma system can be used in
tandem with the Lean philosophy and
toolkit, producing the hybrid business
improvement method Lean Six Sigma.
Small Lot Production-
a feature of the pull production system
that focuses on waste reduction and
flexibility through the production of
batches that meet demand instead of
large batches that are based on artificial
demand and are “pushed” through
production.
Sort (5S)-
a part of the 5S framework, the concept
of a sorted workspace determines the
most expedient and useful places for
objects, tools, materials, and goods.
Spaghetti Plot-
a visual map of data that can be expressed
as flows. Also known as workflow
charts, spaghetti plots are used to track
the movements of people and goods to
determine more efficient layouts.
Standardization (5S)-
a part of the 5S framework,
standardization seeks to transform
activities into processes so that they can
benefit from the economies of repetition.
Supply Chain Responsiveness Matrix-
a visual tool that analyzes an
organization’s lead time and inventory
levels. The resulting graph highlights
areas where slow-moving stock is
concentrated.
Takt Time-
a measure of unit production time
relevant to the rate of customer demand.
While the product of a takt time is
expressed as a certain number of parts
per period, this is a measure of flow and
may not reflect the actual duration of
production for each unit.
Theory of Constraints (TOC)-
a systems improvement model that is
built on the basic assumption that every
system is subject to at least one constraint
that creates a bottleneck. Once this
constraint has been broken, the system
will become more efficient, but is now
subject to another, new limiting factor.
This system is helpful for determining
areas of inefficiency within operations,
and assessing the best methods to effect
change.
Total Quality Management (TQM)-
a unifying principle that underscores the
interdependent relationship between
the voice of the customer, the tools and
processes used to manufacture goods,
and the manner in which demand “pulls”
goods through production.
Toyota Production System-
the set of principles, methods, and tools
established by the Japanese vehicle
manufacturer Toyota. The strides made
by the Toyota company revolutionized
and supercharged the Japanese economy,
and the effective methods employed by
Toyota have evolved into the versatile
Lean Manufacturing system that we
know today.
Tunnel Vision-
a singular focus on one goal at the
expense of visibility of others or the
whole picture.
Value Stream-
the total sum of effort, operations,
processes, and production that
contributes to the creation of value for a
customer. Value stream doesn’t begin and
end with the manufacturing organization.
It begins with the customer and works
backward through the supply chain, all
the way upstream to the point of origin.
Value Stream Mapping-
a Lean toolkit that is used to assess the
current state of all activities and processes
associated with production operations.
The application of value stream
mapping is designed to highlight areas
where improvement is possible, and to
differentiate value-added activities from
waste, all while establishing a benchmark
against which all improvement activities
can be measured.
Value-Added-
activity that incurs costs that can be
passed on to the customer (creates value).
The Lean method’s focus on the Voice of
the Customer is a core driver of the need
to differentiate value-added and non-
value-added activities. Through various
improvement methods, operations are
trimmed of non-value-added activities
(waste) and streamlined to only the
necessary value-added processes.
Waste-
non-value-added activity. Waste incurs
cost but does not produce value, so
these costs cannot be passed on to the
customer. Waste is represented within
the Lean manufacturing system as falling
under the categories of physical waste,
unevenness of production, or overburden
of production. In all aspects of Lean, the
elimination of waste is a focal point of
improvement activities.

64
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