Lean Management

Frank Bertagnolli
Lean Management
Introduction and In-Depth Study
of Japanese Management Philosophy
Lean Management
Frank Bertagnolli
Lean Management
Introduction and In-Depth Study of
Japanese Management Philosophy
Frank Bertagnolli
Hochschule Pforzheim
Pforzheim, Germany
ISBN 978-3-658-36086-3 ISBN 978-3-658-36087-0 (eBook)

https://doi.org/10.1007/978-3-658-36087-0
This book is a translation of the original German edition „Lean Management" by Bertagnolli, Frank, published by
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Preface
“Is lean still relevant?” I have been asked more often and the answer is: “Of course!” In a
time of acceleration, digitalization, and continued increasing competitiveness, it is always
about economic processes with perfection. These are precisely the themes of lean thinking.
The fact that lean brings many advantages in practice and success for companies as well as
for individuals can be seen in many successful examples.
Why this book? There are already several books on this topic. However, I have not been
able to find a practical textbook that provides the combination of subject knowledge, an
accompanying company story, and practical examples. In addition to theoretical content for
use in teaching, this book also deals with practical issues. It is a book out of practice and
therefore for practice. In my eyes, the subject area of lean cannot be treated theoretically.
Lean is a mindset and lean is practice. The book lives through the interested reader and can
be viewed and used from different angles: as a textbook, as a workbook for practice. and as
a reference book.
Inspired by business novels, the story of a fictional company was woven into this book.
The company and the characters are fictitious; the situational contents have all happened in
reality at different places. This is to show and illustrate to the reader the step-by-step
approach of a lean implementation. For me, the didactics are part of better understanding
the practice and anchoring the topics for teaching.
Lean is a discipline based on knowledge. Therefore, this book works with many
different questions. When I learned lean, I had different insights and, in the end, a personal
overall picture of the subject. I wish the readers the same insights and hope that this book
helps in developing a personal coherent lean understanding. To this end, questions have
been developed for each topic area with which to question the processes. These can be used
for self-reflection as well as the benchmarking process.
Without the following people, this book project would not have been possible. My
thanks go to my colleague Prof. Dr. Mario Schmidt for the idea, the recommendation, and
contacting Springer Gabler as well as to the publisher for the trust to include the idea in its
program and to support it editorially. Further thanks go to Janis Mall, who supported me
greatly in the preparation. Whether graphics, summaries, or questions, he took the reader's
perspective and completed this book.
v
vi Preface
The chance of finding errors in this book increases with each reader. I am grateful for
feedback on errors and comments. Praise or constructive criticism in the sense of a learning
culture is also welcome. I am happy about their support, feedback, or even discussions;
after all they are used for further improvement and “kaizen”. I can be contacted by e-mail:
mailto:frank.bertagnolli@hs-pforzheim.de.
The German editions of the book Lean Management reached a large readership and a
very positive response. Many students contacted me from Germany and abroad with
questions that encouraged me to rethink. There were also suggestions for improvements.
Thank you very much. Consultants and experts came forward and put the expert questions
on evaluation forms into practice in their consulting or business context. A success and a
motivation to continue working on this mixture of textbook and practical book.
In Japanese, when names are mentioned, the family name is given first and then the first
name. In this book, the first name is always given first and then the family name, as has
become common in Western publications. This is not meant to be discourteous.
Enjoy the breadth and depth of lean.
Pforzheim, Germany Frank Bertagnolli

Contents
Part I Basics of Lean Production

1 Introduction Lean Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1 Lean Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.2 Is Lean up to Date? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.3 Lean at Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.4 The Lean Production Roadmap . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.5 The Expert Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.6 Introduction of Knalsch GmbH . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.1 Trends and Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2 Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.3 Business Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.4 Customer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.5 Expert Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3 Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.1 Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3.2 Value Creation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3.3 Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.4 The Seven Types of Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.5 The Eighth Type of Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
3.6 Classification of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.7 Process Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3.8 Optimization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
3.10 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
vii
viii Contents
4 Stabilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.1 Loss Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
4.2 The 3 Mu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.3 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.4 Lead Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
4.5 Levelling and Balancing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
4.6 Flexibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
5 Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
5.1 Batch Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
5.2 Layout . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.3 Production in Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
5.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
6 Tact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
6.1 Bottleneck . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
6.2 Customer Tact Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
6.3 Line Balancing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
6.4 Visualization of the Line . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
6.5 Special Features and Cycle Time Calculations . . . . . . . . . . . . . . . . . 74
6.6 Dealing with Job Cuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
6.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
7 Pull . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
7.1 Just-in-Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
7.2 Kanban . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
7.3 Kanban Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
7.4 One-Piece Flow in Customer Sequence . . . . . . . . . . . . . . . . . . . . . . 91
7.5 Pacemaker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
7.6 Configurations of Flow Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
7.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Contents ix
8 Value Stream . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

8.1 Value Stream Mapping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
8.2 Value Stream Symbols and Representation . . . . . . . . . . . . . . . . . . . 103
8.3 Value Stream Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
8.4 Key Figures in the Value Stream . . . . . . . . . . . . . . . . . . . . . . . . . . 111
8.5 Design Principles for the Future State Value Stream . . . . . . . . . . . . . 113
8.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
9 Perfection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
9.1 Understanding of Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118
9.2 The Jidoka Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
9.3 Poka Yoke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
9.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
10 Standardization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
10.1 Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
10.2 The 5S or 6S Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
10.3 Visualization and Standard Description . . . . . . . . . . . . . . . . . . . . . . 139
10.4 Examples of Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
10.5 Role of Leadership in Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
10.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
11 Continuous Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
11.1 Kaizen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
11.2 Kaikaku . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
11.3 PDCA Cycle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
11.4 Improvement Kata . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
11.5 Sustainable Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
11.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
12 Production Area Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
12.1 Manual Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
12.2 Ergonomics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
12.3 Flexible Manpower System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
12.4 Flexible Employee Deployment . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
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12.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
13 Production Area Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
13.1 Automation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
13.2 Overall Equipment Effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . 178
13.3 Total Productive Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
13.4 Quick Changeover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
13.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
14 Lean and Production Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
14.1 Mass Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
14.2 History of the Toyota Production System . . . . . . . . . . . . . . . . . . . . 197
14.3 Lean and Production Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
14.4 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
14.5 Vision and Key Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
14.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Part II Deepening: Lean Management

15 Introduction Lean Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
15.1 Lean Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
15.2 The Lean Management Network Plan . . . . . . . . . . . . . . . . . . . . . . . 214
16 Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
16.1 Indirect Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
16.2 Waste in the Indirect Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
16.3 Methods of Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222
16.4 Process Visualization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
16.5 Lean in the Indirect Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
16.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232
17 Product Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
17.1 Optimization of Value-Added Time . . . . . . . . . . . . . . . . . . . . . . . . 234
17.2 Design for Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
17.3 Design for X . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
17.4 Measurement of Product Design . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Contents xi

17.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
18 Product Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
18.1 Situation of Product Development . . . . . . . . . . . . . . . . . . . . . . . . . . 250
18.2 Lean Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251
18.3 Lean Methods in Product Development . . . . . . . . . . . . . . . . . . . . . . 254
18.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
19 Production Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
19.1 Lean Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
19.2 Planning Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
19.3 Cardboard Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
19.4 Factory Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
19.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
20 Low-Cost Automation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
20.1 Karakuri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
20.2 Low-Cost Intelligent Automation . . . . . . . . . . . . . . . . . . . . . . . . . . 273
20.3 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
20.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
21 Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
21.1 Line Back . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
21.2 Grip-Optimized Material Placement . . . . . . . . . . . . . . . . . . . . . . . . 281
21.3 Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
21.4 Minomi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
21.5 Order Picking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
21.6 Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
21.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
22 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
22.1 Lean and Green . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
22.2 Resource Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
22.3 Energy Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
xii Contents
22.4 Disassembly and Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302

22.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
23 Key Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
23.1 Key Figure Logic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
23.2 Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 312
23.3 Learning to See . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
23.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 316
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
24 Policy Deployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319
24.1 Hoshin Kanri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320
24.2 North Star and Blue Sky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
24.3 Target Break-down Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 322
24.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
25 Shop Floor Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327
25.1 Management at the Shop Floor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 328
25.2 Visual Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
25.3 Communication Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334
25.4 Problem-solving Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 335
25.5 Standard-based Process Observation . . . . . . . . . . . . . . . . . . . . . . . . 344
25.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348
26 Leadership and Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349
26.1 Lean Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350
26.2 Failure Culture: Learning Culture . . . . . . . . . . . . . . . . . . . . . . . . . . 352
26.3 Learning Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 354
26.4 Lean Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 355
26.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 362
27 People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 365
27.1 Lean and People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 366
27.2 People at the Centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
27.3 Human Resources Development . . . . . . . . . . . . . . . . . . . . . . . . . . . 369
Contents xiii
27.4 Sustainable Value Creation Through Appreciation . . . . . . . . . . . . . . 370

27.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 372
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373
28 Digitization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375
28.1 Digital Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376
28.2 Industry 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377
28.3 Digital Shop Floor Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
28.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381
29 Support Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383
29.1 Lower Management Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 384
29.2 Kaizen Team and Lean Experts . . . . . . . . . . . . . . . . . . . . . . . . . . . 385
29.3 Kaizen Workshop . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 386
29.4 Lean Organization and Training Center . . . . . . . . . . . . . . . . . . . . . . 387
29.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 388
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
30 Consulting and Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 391
30.1 Project and Request . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 392
30.2 Project Objective and Management . . . . . . . . . . . . . . . . . . . . . . . . . 393
30.3 Project Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 398
30.4 Lean Understanding and Awareness . . . . . . . . . . . . . . . . . . . . . . . . 400
30.5 Communication and Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . 401
30.6 Potentials and Economic Efficiency Calculation . . . . . . . . . . . . . . . . 402
30.8 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 404
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405
31 Change Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407
31.1 Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408
31.2 Levels of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409
31.3 Intrinsic Change Curve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 410
31.4 Resistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 413
31.5 Enabling and Motivating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 414
31.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417
xiv Contents
Part III Annex

32 Glossary of Japanese Lean Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 421
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430
33 Solutions to the Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
33.1 Chapter 6: Tact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
33.2 Chapter 7: Pull . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
33.3 Chapter 8: Value Stream . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 434
33.4 Chapter 9: Perfection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 436
33.5 Chapter 13: Production Area Manufacturing . . . . . . . . . . . . . . . . . . 437
33.6 Chapter 30: Consulting and Projects . . . . . . . . . . . . . . . . . . . . . . . . 438
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 441
List of Abbreviations
3 Mu Muda, muri, mura

3D Three-dimensional
3R Reuse, reduce, recycle
4K Kozo kaikaku (structural plan, construction drawings)
5M Manpower, machine, material, method, milieu
5R The right product, at the right time, in the right quantity, in the right quality, at
the right place.
5S Seiri, seiton, seiso, seiketsu, shitsuke
5W Five times why?
6R The right product, at the right time, in the right quantity, in the right quality, at
the right place, at the right price
6S Seiri, seiton, seiso, seiketsu, shitsuke, shukan
8D Eight disciplines (process steps in the problem-solving document)
8M Manpower, machine, material, method, milieu, measurement, management,
money
A3 Paper size DIN A3; vehicle model of the Audi brand
ABB Asea Brown Boveri
ABS Anti-lock braking system
AG German incorporated
AGV Automated guided vehicle
BMW Bavarian Motor Works
BPS Bosch Production System
C180 Mercedes-Benz vehicle model and type
CAD Computer-aided design
CC Carbon copy
CIM Computer-integrated manufacturing
CIP Continuous improvement process
CO2 Carbon dioxide
DCPS DaimlerChrysler Production System
DfM Design for manufacturing
DfX Design for X
DIN German Institute for Standardization
xv
xvi List of Abbreviations
DIY Do it yourself
DLZ Lead time
DMAIC Define, measure, analyze, improve, control
DNA Deoxyribonucleic acid (carrier of genetic information)
ECRS Eliminate, combine, rearrange, simplify
eHPV Engineered hours per vehicle
EOM End of mail
EPED Every part every day
EPEI Every part every interval
ESP Electronic stability program
EVA Economic value added
FIFO First-in-first-out
FMS Flexible manpower system
FPY First pass yield
FSM Future state map
FTR First time right
FTT First time through
FTY First time yield
GM General Motors
GmbH German limited liability company
h Hour(s)
HPU Hours per unit
HPV Hours per vehicle
IBM International Business Machines
IG German industrial union
IoT Internet of things
IT Information technology
JIS Just-in-sequence
JIT Just-in-time
KPI Key performance indicator
KYT Kiken yochi training
LCA Low-cost automation
LCIA Low-cost intelligent automation
LH Vehicle model of the brand Chrysler
LIFO Last-in-first-out
LPA Layered process audit
MECE Mutually exclusive, collectively exhaustive
min Minute(s)
MIT Massachusetts Institute of Technology
MPS Mercedes-Benz Production System
MTBF Mean time between failures
List of Abbreviations xvii
MTM Methods-time measurement

MTTR Mean time to repair
NLK Neues Logistikkonzept (new logistics concept)
NOPAT Net operating profit after taxes
NPW Nissan Production Way
NUMMI New United Motor Manufacturing Incorporated
OEE Overall equipment effectiveness
OEM Original equipment manufacturer
OMCD Operations Management Consulting Division
PCS Problem, cause, solution
PDC Plan, do, check
PDCA Plan, do, check, act
ppm Parts per million
PSA Peugeot Société Anonyme
QR Quick response
ROI Return on investment
RONA Return on net assets
ROS Return on sales
s Second(s)
SCM Supply chain management
SFM Shop floor management
SFTPP Stabilize, flow, tact, pull, perfection
SIM Subscriber identity module
SMART Specific, measurable, achievable, reasonable, time-bound
SMED Single-minute exchange of die
SMS Short message system
SOP Start of production
SQDCM Safety, quality, delivery, cost, morale
SUV Sport utility vehicle
TCO Total cost of ownership
TIP Tactical implementation plan
TPM Total productive maintenance
TPS Toyota Production System
TSSC Toyota Supplier Support Center
TTT Touch, turn, talk
US United States
USA United States of America
USB Universal serial bus
VDA German Association of the Automotive Industry
xviii List of Abbreviations
VDI Association of German Engineers

VSM Value stream map
VW Volkswagen
VW120 Series designation for a vehicle of the make Volkswagen: Type “VW up!”
Part I
Basics of Lean Production
Dissatisfaction is the mother of improvement.

Shigeo Shingo
To give students a good introduction to internships and careers, the introduction to Lean
Production is intended for Bachelor students as well as Master students or in further
education. The overall understanding of all topics and contexts is recommended and will
be worthwhile.
The first part of the book contains the basic chapters on the subject area of lean
production. The focus here is deliberately on the subject areas of production. Here, the
origin of process thinking according to the lean idea was laid. This part provides a
comprehensive overview, especially for newcomers to the topic. It primarily serves to
familiarize students with the basics and its contents are particularly suitable for students in
bachelor’s degree programs.
Introduction Lean Production
1
The most important thing is not to stop asking.

Albert Einstein
Overview
Lean production is about waste-free processes and a few more aspects. The term is
still current and elementary for good process design. Expert questions and a company
example are introduced in this chapter as an accompanying basis for practical
relevance.
Right Questions
As a young lean consultant, I received feedback and assessment from my supervisor.
He gave me a recommendation for the position as a lean trainer for the training of
managers and lean consultants. In doing so, he said I was “asking the right
questions.” What did he mean by that? What are “right questions?” The popular
saying goes, “There are no stupid questions, only stupid answers.” How then can
questions not be “right” and therefore “wrong”?
Today I know what “right questions” are. As a systemic consultant and coach, I
ask questions professionally to provide food for thought. In doing so, hypotheses are
(continued)
# Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 3

F. Bertagnolli, Lean Management,
https://doi.org/10.1007/978-3-658-36087-0_1
4 1 Introduction Lean Production
formed, the testing of which is left to the other person. Models, contexts and
experiences form the hypotheses.
In the subject area of Lean, we speak of principles and cause-effect relationships,
i.e., of a system. When a process is viewed from a lean perspective, hypotheses are
formulated, and corresponding thought-provoking impulses are triggered in the
manager, owner or operator of the process by asking (the right) questions. Solutions
are not given.
1.1 Lean Production
Where the term lean comes from is described at the end of the first part of this book
(▶ Sect. 14.3). To understand what lean is, it makes sense to start where it originated—in
production.
" Lean Production Waste-free processes in production and the organization of processes
according to the principles of stabilization, flow, tact, pull and perfection. The goals are
good quality, short delivery times and low costs. The focus is on the customer. The origin
of lean production can be found in Japan in the Toyota company.
When talking about waste-free, the term resource efficiency should also be mentioned.
This refers to the economical or targeted use of resources, such as material, time and space.
The efficient use of resources should be the goal of every company.
The term lean is derived from lean production. It is used universally.
" Lean Combines methods to optimize or improve processes. Lean principles summarize
suitable methods for this purpose. However, Lean is more than just a collection of methods
and principles. Lean has mainly to do with the strategy and culture of a company.
Without a strategy, the principles are not applied in a targeted manner and without an
adequate culture, there is no improvement. In this context, the learning and leadership
culture play a decisive role. The lean principles, such as stabilization, flow, tact, pull and
perfection, are described with the associated methods in the first part of this book. Further
methods can be found in the second part.
Due to its origin, Lean is influenced by Japanese culture. Many things in this field can be
better understood if the Japanese original meaning of the method is clear. Thus, Japanese
terms and partly also characters can be found here. A dictionary with the most important
1.3 Lean at Work 5
Japanese lean terms and the German explanations as well as the meaning in the lean context
can be found in the third part of the book.
The book “This is Lean” (Modig and Ahlström 2014) gives a simple definition of lean
with an orientation and explanation based on lead time.
1.2 Is Lean up to Date?
Is lean still up to date or already “out”? Today, production and administration are all about
agility, Industry 4.0, innovations, etc. The answer must be yes, lean is current and even
more current than ever. After all, the new methods, such as agile programming with Scrum,
were developed from the lean methods and the question arises how something should be
digitized that does not yet run optimally “analog”? As a philosophy, lean is indispensable
today. Those who use lean have clear competitive advantages. Perhaps the sentence should
be turned around and stated: Those who do not use lean principles are at a competitive
disadvantage. Lean is the basic work to design workflows, procedures and processes in an
ideal and waste-free way.
Since its definition in 1990, lean has grown out of its infancy and arrived in many
companies. In addition to the use of lean methods in the administrative sector, there is the
kanban principle and one-piece-flow in fast food restaurants, shop floor management in
banks, “obeya” in the goods trade, fast set-up on construction sites, value stream analyses
in zoos, cardboard engineering in hospitals and the like. At this point it can already be
stated: Lean is about the right application of solutions to existing problems in the appro-
priate context. It is about understanding and not about blindly copying solutions, to
represent with conviction, the view that one is “Lean” (Rumpelt 2005).
Lean continues its triumphant march in other new subject areas and companies. In
software programming, product development, even on the construction site or in the law
office. Lean is up to date. Lean is “in”.
1.3 Lean at Work
In the meantime, the topic of lean has become ubiquitous, whether in production or
administration. Likewise, lean management elements are increasingly used in many
areas, even in banks and on construction sites. Anyone who programs agilely according
to Scrum today works according to the Lean methodology.
Thus, it is no longer only the professions of production that need the lean idea. Lean has
long since arrived in all levels and areas of a company. Affected by lean are managers,
planners, developers, plant engineers and internal or external consultants. One thing unites
all of them: In order to be able to apply lean, a certain amount of professional experience is
required. If you want to apply lean yourself or use it as a consultant, you cannot avoid
carrying out the processes yourself in practice and learning from them.
Anyone who wants to deal more intensively with lean in the professional field therefore
needs an orderly run-up in process understanding. Ideally, this should already be started
during studies. A well-founded basic training with theory, practice and final thesis is
recommended and offers itself. Also outside the universities there are many different
training and further education courses on various lean topics. Participating in projects
and learning from practice is essential, as new experiences can be gained through the
practical application of methods and one’s own experience of the effects on processes,
cultures and people. These lessons are essential to lean. Ultimately, like Toyota, it is an
ongoing and continuous learning process.
One more note on consultants: When lean is implemented properly, the goal is not to
need consultants, but to live lean through your own leaders.
1.4 The Lean Production Roadmap
The overall timetable for the first part of this book is iterative and proceeds systematic
(◉ Fig. 1.1). The scheme thus follows that of a single line with a start and end station. Each
station is approached. Lean should be introduced and implemented in the same way. Here
the main scheme is followed according to “SFTPP”. The letters stand for the terms:
Stabilize, Flow, Tact, Pull and Perfection. In addition to these steps, Lean is deepened at
some points by means of intermediate stops and introduced with its methods, principles as
well as its culture.
1.5 The Expert Questions
The coaching approach is based on asking intensive questions. This triggers thought
processes and actions. Implementation takes place based on one’s own conviction and
not because someone has revealed the solution. Everyone can work out the solution himself
or herself.
The book is not intended to provide direct answers. Rather, it is intended to pose
questions, which the reader can answer, because the coaching approach should be
content-free. The questions imply an answer. They are meant to trigger reactions and
make the reader think. Through this, one’s own coaching approach can take place, which
leads to a right course of action. Instead of consulting a consultant, the reader can use the
questions at hand to motivate himself to think. Since it is an inner dialogue, this approach is
also the most honest and will help the user to move forward. Coaching changes behavioral
patterns and starts with understanding and awareness, the so-called “mindset”. This book is
intended to stimulate the inner dialogue of the reader and thus act like a mentor.
The expert questions in each chapter can be used and applied to different areas of
application. They serve self-coaching to move forward in the pursuit of improvement and
the consultant as a reference for appropriate questions in the application. Managers are
1.6 Introduction of Knalsch GmbH 7
Fig. 1.1 The roadmap through lean production
supported in their daily work. By using the questions, they leave their employees in charge.
Further possible applications are audits and benchmarking (▶ Sect. 23.2), to be able to
assess and evaluate one’s own areas and companies.
The expert questions take up the respective topic in the chapters in the form of questions.
In the case of closed questions, a “yes” answer means a good solution. Accordingly, a
negative answer indicates a need for action.
1.6 Introduction of Knalsch GmbH
To illustrate lean in practice, a company example will serve as a scenario (analogous to

Goldratt and Cox 2004; Ballé and Ballé 2005). The company and the people involved are
fictitious. Name similarities with real persons are coincidental. The problems are realistic
and have occurred in this form in different companies.
The examples of Knalsch GmbH accompanied the reader through this book and show
possible problems of a manufacturing company. Step-by-step it is shown what happens and
how the lean principles and methods intervene in the company processes.
Knalsch GmbH is an owner-managed family business in the Swabian Alb. The medium-
sized company works in the metal industry and is a supplier for several system
manufacturers. The company has a workforce of 62 employees and recorded annual sales
of 80 million Euro in the previous year.
The managing director of Knalsch GmbH is Dr. Karl-Norbert Alsch. The company
name Knalsch is derived from the first letters of his two first names and his last name.
Dr. Karl-Norbert
Alsch
Management
Claudia
Beck
Assistance
Karsten
Horch
Controlling
Kai Claus Susanne Joerg Christina

Lupfer Maas Moos Escher Maier
Production Logistics Engineering Development Administration
Fig. 1.2 Organization chart of Knalsch GmbH
Dr. Alsch studied and received his doctorate in the field of chemistry. The organizational
chart can be seen in ◉ Fig. 1.2.
The main products are the large product “Knalsch 3000” and the “Knalschi 100”. These
are mechanical components, which are used by customers as semi-finished products in their
production. The products vary in complexity and are available in different variants. In
addition, spare parts are also manufactured for the products.
References
Ballé F, Ballé M (2005) The Goldmine – a novel of lean turnaround. Lean Enterprise Institute,
Brookline
Goldratt EM, Cox J (2004) The goal: a process of ongoing improvement, 3rd edn. North River Press,
Great Barrington
Modig N, Ahlström P (2014) This is lean: resolving the efficiency Paradox. Rheologica, Stockholm
Rumpelt T (2005) Nicht kopieren, Kapieren! Automobil-Prod 7:18–22
Challenges
2
Nothing is impossible.
Toyota advertising slogan
Overview
The chapter deals with the economic trends and challenges for companies. It clarifies
the similarities and differences when looking at lean in comparison to business
administration. The terms effectiveness and efficiency are clarified. It also explains
that crises are part of optimization and are always an opportunity for further devel-
opment. At the beginning of the lean approach, the customer is in focus. It is
necessary to orientate oneself towards him.
Knalsch GmbH: New Challenge

A group of students visits the company Knalsch GmbH as part of a study excursion.
They learn that the company wants to expand. A large new order is pending.
Vacancies for internships, theses and job entries are advertised. New student
employees are to be hired. Mr. Alsch is very interested in the study contents of the
visiting students, as he is very fascinated by the subjects of business administration,
(continued)

https://doi.org/10.1007/978-3-658-36087-0_2
10 2 Challenges
resource efficiency management and lean production. These interesting subjects did
not exist during his studies.
After saying goodbye to the group of visitors, Karl-Norbert Alsch goes back to his
office and lets his leather office chair catch him, sighing. Sitting behind a large desk
on which many documents lie, he looks at the monitor of his computer. An e-mail has
arrived from the bank. The loan he applied for is not approved by the bank. Sales and
cash flow are too low to grant further financing of the required magnitude. In
addition, a large new order is too uncertain for the bank.
“Typical banker,” Alsch thinks. “No idea about the practice!” How is expansion
supposed to succeed? Instead of hiring employees, he is supposed to cut back and lay
off. That cannot be true.
“Now I guess we’re in an existential crisis!” he says as he retrieves the cognac
bottle from the closet along with a glass and opens it.
2.1 Trends and Challenges
For manufacturing companies, but also for the service industry, current challenges arise
from the various megatrends. Globalization is a challenge and offers various opportunities
and possibilities. Through worldwide networking and cheaper transport costs, new markets
can be opened, and materials can be sourced from all over the world. This opportunity also
exists for competitors, who are increasingly placing their products in foreign markets. A
coin with two sides. Global comparability, also in terms of prices, increases the cost
pressure on manufacturing companies. Opportunities arise in this context by setting up
production facilities in low-wage countries to deliver from there to the whole world. As
these opportunities are available to all, competitiveness is at stake.
The terms “effectiveness” and “efficiency” play a major role here.
" Effectiveness The ability of management to lead the right discussion, to decide the right
thing and to ensure implementation accordingly. According to Drucker (1963): “Doing the
right things”. The focus is on resource utilization in the sense of scarcity management.
What is meant is the optimization of a firmly defined production function (as a technical
concept of efficiency) as a relation between input and output variables.
In addition to the achievement of the goal, effectiveness, the concept of efficiency is

about the path to the goal.
" Efficiency The ability of management to implement goals as effectively as possible.

This corresponds to the economic principle. According to Drucker (1963): “Doing the
2.1 Trends and Challenges 11
Efficiency
Target Target
Start Start
Target Target
Start Start
Effectiveness
Fig. 2.1 Graphical representation of the combinations of efficiency and effectiveness
things right”. The focus is on the use of resources in the sense of managing scarcity. What is
meant is the optimization of a firmly defined production function (as a technical concept of
efficiency) as a relation between input and output variables.
Business processes are about combining effectiveness and efficiency (◉ Fig. 2.1). The
difference is important. Because companies can be highly efficient ineffective or achieve
their goal with great inefficiency. Lean means being efficient and effective at the same time.
With regard to products, it is a major challenge that the degree of individualization on
the part of customers has increased. The invention of the automobile began with a single
version. Henry Ford offered his customers any car color as long as it was black. Today, it is
not only the automotive sector that has an innumerable number of variants. They have
multiplied (◉ Fig. 2.2). In the automotive sector, for example, many different types and
models are added to the variations in color and equipment.
The resulting complexity and product variance is a challenge for the value chain. Each
doubling of the number of variants can be expected to result in a cost increase of 20–35%
within production and rising inventories (Wildemann 2011, p. 33). This can only be solved
with a high degree of flexibility. How this flexibility can be ideally solved is to be clarified
12 2 Challenges
Digital cameras Computer Automobile

new products Number of models Models and derivatives
2.4 149 18 3 200 109 109
63
180 1
2000 2005 1990 1998 1903 2005
Fig. 2.2 Examples of increasing product variance
in the following. Counteracting the problem with higher inventories and more storage
levels cannot be the right solution.
In addition to the variants, there are innovations that bring complexity to the products
and thus place high demands on the manufacturing processes.
In addition, there is an acceleration. Product life cycles and useful lives are becoming
shorter. This means that production areas change more quickly, and in addition, more
changes are also incorporated during ongoing production. The goal of achieving stable and
error-free processes has become more demanding.
2.2 Crisis
The demand to change something usually arises from a need. If a company is in trouble or
an economic crisis arises, then it is a matter of survival. The need for action arises.
A closer look at the Japanese characters for the word “crisis”, i.e., “kiki”, reveals two
different characters despite the same sound (◉ Fig. 2.3). A translation of the two characters
independently of each other yields the words “catastrophe” and “opportunity”. A crisis
therefore has two meanings in the Japanese sense.
Max Frisch is credited with the following statement (Bickhoff and Eilenberger 2004):
“Crisis can be a productive state. You just have to take away the taint of catastrophe from
it.” This saying fits the Japanese characters. A certain amount of suffering is often
necessary for companies to seize the opportunity to change.
At Toyota, the drive for efficiency resulted from the post-World War II commodity
crisis. A crisis is usually followed by changes and improvements. From this came the basis
for the Toyota Production System (TPS). Taiichi Ohno (1912–1990) says of the Toyota
Production System that it was born out of necessity (Ohno 1988, p. 13). In the 1973 oil
crisis, Toyota Motor Company was shown to have fewer losses than other ventures. The
Toyota Production System helped out of the crisis and successfully cushioned heavier
losses (Ohno 1988, p. 2).
2.2 Crisis 13
Fig. 2.3 Japanese characters for

the word “kiki” (crisis)
Disaster Opportunity
Example
In 1992, the Porsche company needed a crisis to jump-start a production system.
Wendelin Wiedeking, then head of the company, brought a Japanese consultant to
Porsche. He sent his managers on a learning trip to Japan. Warehouse shelves were
staged to be cut in half to reduce inventory. Wendelin Wiedeking attended every
workshop (Freitag 2004). His approach proved to be very successful and brought
Porsche into profit in a relatively short time. This made Wiedeking one of the most
successful company leaders during this time. ◄
As a result, crises are important in the context of change and improvement:
• A crisis creates pressure to act. Pressure to change arises. Without pressure to change,
there is no change.
• A crisis creates the image of a “burning platform”. Thus, everyone is forced to join in, in
the sense of: “We are all in the same boat”.
• A crisis is necessary to get into an unstable state. Unstable states enable and lead to a
change and thus also to the solution of problems.
• A crisis is an opportunity for change. This enables further development.
When asking what has been learned from even a small crisis, such as a personality crisis,
career crisis, financial crisis, etc., it becomes apparent that everyone learns from these
situations. The result is the realization that the topic should be approached differently the
next time. From this point of view, the crisis is a productive state with which further
development can take place. Existential crises require fundamental change.
Darwin raised the question of the survival of the species. He argued that it is not the
strongest species that survives, nor the most intelligent. Rather, it is the one that can best
adapt to the changes in its environment (Megginson 1963, p. 4; Forschelen 2017, p. 30).
It is important not only to survive in bad times, as in crises, but also to survive in good
times. Even when everything is going well, the aim is always to achieve an even better
state. Toyota deliberately generates crises and depletes resources. Companies that rest in
good times and do not continue to improve are regressing.
Example
An example of this is Taiichi Ohno’s ambiguous “Oh-No method” (Ballé and Ballé
2005, p. 55). Thus, the name of the method has comparability not only with Ohno’s last
14 2 Challenges
name, but also with the employees’ exclamation, “Oh No!” when he initiated a shortage
despite processes running well. It took 10% of the resources out of the line. This
shortage triggered an artificial crisis that required further optimization. The company
learned from this and improved. ◄
A crisis with underemployment can be ideally used for optimizations and

improvements. During this time, the unused capacity can be used for employee
qualifications and the implementation of optimizations to the processes. This would not
be possible with ideal capacity utilization. A heart operation would also not be performed
while jogging.
2.3 Business Administration
Lean means to do business successfully and well. Thus, it is a part of business administra-
tion). The topics of lean and business administration are not in competition with each other.
However, Lean looks at some topics of business administration from a different
perspective.
In classical business economics, the focus is on pricing. Thus, the price is composed of
the given costs and the profit (Eq. 2.1). The revenue then results from the quantity sold
(Eq. 2.2).
Price ¼ Cost þ Profit ð2:1Þ
Revenue ¼ Price Quantity ð2:2Þ
While business administration maximizes profits by increasing prices and sales volumes
or by reducing direct cost factors such as personnel costs, lean uses a different approach.
Lean approaches the calculation from the other side (backward calculation), namely by
determining the costs at a given price. This is because price and quantity are fixed by the
competitive situation and customer sensitivity. The market regulates supply and demand.
Lean is oriented to the result variable profit and uses the influencing factor costs. The
formula is reversed. Profit is determined by the fixed price minus the target costs that can be
influenced (Eq. 2.3).
Profit ¼ Price Cost ð2:3Þ
If one observes the price development of products, it appears as if prices are rising. If
one looks at the product value, a different picture emerges (◉ Fig. 2.4). Prices remain stable
when adjusted for inflation.
2.3 Business Administration 15
Euro
70 000
60 000
BMW 740
50 000
40 000
30 000
Mercedes-Benz
C180
20 000
VW Golf
10 000
1992 1994 1996 1998 2000 2002 2004
Fig. 2.4 Vehicle price development (based on Becker 2007, p. 82)
Example
It is shown that passenger cars, such as a BMW 740, a Mercedes-Benz C180 and a VW
Golf, show only minimal price changes between the years 1990 and 2004 (Becker 2007,
p. 31). Moreover, with the simultaneous integration of new innovative standard equip-
ment. For example, former optional equipment has in the meantime been incorporated
into standard products: Power steering, radio, air conditioning, electric windows, anti-
lock braking system (ABS) and electronic stability program (ESP). ◄
Over time, additional equipment was added, which provides added value for the
customer at the same price. For manufacturers, the costs for standard equipment increase
at the same price. Although the costs here are reduced by the elimination of complexity in
production and logistics due to the elimination of variance between standard equipment
and special requests, higher revenues do not cover the additional costs for the technical
implementation. Customers were and are not willing to pay more for a product. Since the
competition offers equally high prices on the market, the price remains stable.
Profit maximization is achieved by sustainably reducing the cost side. Putting the focus
on costs means nothing new. With increasing pressure to innovate comes pressure on labor
productivity. Above all, cost reduction programs are the order of the day. However, the
lean perspective is not about the what, but the how. To remain competitive at the same time,
the Lean perspective takes a different approach to looking at the expenses in processes. It is
not about simply reducing costs by cutting staff, closing locations, eliminating business
16 2 Challenges
travel, etc. Lean focuses on the elimination of non-value-adding process components

(▶ Chap. 3) and thus reduces costs in a sustainable and competitive manner.
Another business aspect is the increase in profits due to the increase in quantity. More
sales generate higher revenues (Eq. 2.2). However, be careful, sales means “selling more”
and not just “producing more”. In theory, the formula may work, but in practice, producing
more without selling would be wasteful in the form of overproduction. The products must
be stored, age, eventually become technically obsolete and then not infrequently have to be
scrapped at great expense. Instead of generating revenue, costs increase.
What sounds so banal obvious occurs in every plant planning. When planning and
procuring equipment, the issue is always the amount of the acquisition costs and ultimately
the conversion to a parts price (Eq. 2.4).
Aquisition costs
Part price ¼ þ Variable costs ð2:4Þ
Planned number of parts
This calculation also drives the cost side if the number of units is not demanded by the
customer as planned. And it is not these key figures that are the focus of decisions regarding
the profitability of an acquisition. Back-calculations, in which it is a question of how many
parts must be produced so that the acquisition is economical, without including the
customer demand, will not be discussed further here. It is certain that faulty business
planning already begins here.
Another field of business administration is the formation of batch sizes (▶ Sect. 5.1).
The more of the same part is produced, the more favorable are the manufacturing costs,
because the changeover time can then be allocated to more parts. Here there is a risk of
thinking errors when focusing unilaterally on quantity. The fact that there is great potential
in the area of lean production in changeover times and storage costs will be shown in more
detail below (▶ Sect. 13.4).
Another example shows: Acquisition investments are depreciated over their lifetime.
The quotient of the investment to the term is formed. If, for example, a plant or machine is
depreciated, longer running times can generate revenues. Some companies purchase a new
production plant to be able to carry out the depreciation and tax savings again. New startup
also includes startup costs and startup problems. In the lean environment, there are
companies that deliberately generate very good revenues with old, well-maintained plants
and machines, because revenues are produced with the depreciated plants.
To summarize: Lean is not only about purely business management perspectives, but
also about questioning the business management approach by looking at it from a different
angle and focusing on the different contexts.
2.4 Customer 17
2.4 Customer
Mahatma Gandhi said on the subject of the customer: “A customer is the most important
visitor on our premises. He is not dependent on us. We are dependent on him. He is not an
interruption of our work. He is the purpose of it. He is not an outsider of our business. He is
part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us
the opportunity to do so” (Forschelen 2017, p. 242).
Kenneth B. Elliott took five important principles regarding customers (Erbes 1941,
p. 83):
1. The customer is not dependent upon us—we are dependent upon him.
2. The customer is not an interruption of our work—he is the purpose of it.
3. The customer is not a rank outsider to our business—he is a part of it.
4. The customer is not a statistic—he is a flesh-and-blood human being completely
equipped with biases, prejudices, emotions, pulse, blood chemistry and possibly a
deficiency of certain vitamins.
5. The customer is not someone to argue with or match wits against—he is a person who
brings us his wants. If we have sufficient imagination, we will endeavor to handle them
profitably to him and to ourselves.
" Customer The client and recipient for a product or service. Customers must be given
the opportunity to evaluate a service, pay the bill and be able to say “no”. If all three factors
are possible and coincide, it is a real customer.
The customer is the reason why products and services are generated. Without a
customer, any production is unnecessary and a waste of manpower, material, energy and
other resources. With every customer, the important question is what the customer really
wants as a product or service and what he is willing to pay for it.
The value of a product must always be defined from the customer’s perspective
(Womack et al. 1996, p. 40 ff.). A phrase often cited in the field of marketing, following
Theodore Levit (2004), is “People don’t buy products. They buy benefits.” Derived from
this, the following equation (Eq. 2.5) can be established.
Quality Service Benefits

Cutomer Value ¼ ¼ ð2:5Þ
Cost Time Total cost of ownership
The quality factor includes functionality, performance and technical specifications. The
service factor stands for availability and the service and support offered. The cost factor
also includes the price and the life cycle costs. The time factor corresponds to the time
needed to respond to the customer request.
18 2 Challenges
Table 2.1 Customer requirements and related requirements for companies

Customer requirements Requirements for companies
Immediate availability at the customer location Short delivery times, short production time
Fresh goods Fast turnaround time, first-in-first-out
New and special products Rapid product development and availability
Affordable products Cost reduction
High quality Zero defects, good materials
Customized product Large product variety, flexible production
Environmentally friendly product Sustainable production and resource efficiency
From an entrepreneurial point of view, the customer is at the end, after the last process.
From a lean point of view, however, the customer is to be seen in the center of a company
and thus the customer and his or her wishes are to be the starting point. This customer
desire refers not only to the product and its function or a service, but also to the quality as
well as the time to delivery and the price for the product.
Customer requirements represent demands on the company (◉ Table 2.1).
Customers demand individual products. This has an influence on the product variance.
In addition, good quality, fast availability (supply, delivery readiness and adherence to
delivery dates) and the lowest possible costs are the relevant aspects. For some years now,
the sustainability aspect has also been increasingly customer-driven and demanded. The
focus here is on service life, energy consumption and recyclability (▶ Chap. 22). Before
making a purchase, the customer has a high demand for information.
Customers must be satisfied. This means that the minimum requirements for a product
or service must be met. The Kano model (Kano 1984) by the Japanese Noriaki Kano shows
the possibilities between quality characteristics and customer satisfaction (◉ Fig. 2.5).
Thus, following a cartoon (Baeuchle 2005), there still seem to be differences between
what the customer described, what the salesperson promised, what the manufacturer
understood, what the development developed, what the production produced and what
the customer really needed.
When talking about customers, a company should always orient itself towards the end
customer. This orientation applies to every single area. The legitimacy of everyone in the
company serves the customer. This sounds banal in theory, but in practice it is far from
it. Just to understand the next station as a so-called “internal customer” is still a big step for
many nowadays.
The conclusion is easily recognized, but sometimes difficult to implement: Produce only
what is needed. No more and no less. The customer is to be satisfied, because he pays for
the product and thus for the company and its future.
So typical goals of lean are not cost-cutting programs or laying off employees but
achieving 100% customer satisfaction at low cost.
2.5 Expert Questions 19
Satisfaction
Performance requirement
Enthusiasm requirement
Fulfillment of
customer requirement
Failure to meet
customer requirement
Basic requirement
Dissatisfaction
Fig. 2.5 Kano model of customer satisfaction (based on Kano 1984)
2.5 Expert Questions
The Following Questions are Relevant in the Crisis Field
• What is the entrepreneurial response to crises?

• What is done differently in crises than usual?
• What has been learned from previous crises and adapted for the future?
Questions About Business Administration
• What is the cost of providing the service?

• How old is the oldest plant or machine?
• How are lot sizes determined?
• Does the company focus on the sustainable optimization of costs?
20 2 Challenges
The Following Questions are Relevant with a Focus on the Customer
• Is it known who the end customers are?

• Is it known for whom the activity is carried out (internal and external customer)?
• Who are the customers?
• What do customers need?
• Is exactly what was ordered delivered to the customers?
• What does the customer pay for?
• Do customers get what they expect?
• Is there feedback from customers (e.g., on quality)?
• How is feedback from customers used?
• How do you motivate and inspire customers?
2.6 Summary
Summary on the Subject of Challenges

• Effectiveness means doing the right things. The focus is on achieving the goal.
• Efficiency means doing things right. The focus is on scarcity management and
resource utilization.
• Crises are opportunities to learn from to develop further.
• It is not only in crises that changes are to be driven forward. Even when everything is
going well, a better state should be strived for. Toyota deliberately generates crises
and shortages resources to develop further.
• Lean means doing business successfully and well. Lean and business administration
are not in competition.
• Business economics generates profit maximization through higher sales volumes or
higher prices.
• Lean pursues profit maximization by reducing costs.
• Lean focuses on the elimination of non-value adding process parts and thus reduces
costs in a sustainable and competitive manner.
• The customer is the focus. Only with customer orientation is a company successful in
the long term.
• The goal of lean is to achieve 100% customer satisfaction at the lowest
possible cost. ◄
Questions
• At what points does lean thinking take a different view than classical business
administration?
• What effects do change customer preferences towards an ever-greater range of
variants have on production?
References 21
• Why are crises also positive?

• What are the components of the quality factor?
References
Baeuchle C (2005) Kreativität effizient nutzen. Automob Ind 5:24–28

Ballé F, Ballé M (2005) The goldmine – a novel of lean turnaround. Lean Enterprise Institute,
Brookline
Becker H (2007) Auf Crashkurs – Automobilindustrie im globalen Verdrängungswettbewerb, 2nd
edn. Springer, Berlin
Bickhoff N, Eilenberger G (2004) Einleitung. In: Bickhoff N, Blatz M, Eilenberger G, Haghani S,
Kraus KJ (eds) Die Unternehmenskrise als Chance – Innovative Ansätze zur Sanierung und
Restrukturierung. Springer, Berlin, pp 3–12
Drucker PF (1963) Managing for business effectiveness. Harvard Bus Rev 3:53–60
Erbes (1941) Complaints as an asset. J Advert 195:17–83
Forschelen B (2017) Kompendium der Zitate für Unternehmer und Führungskräfte. Springer Gabler,
Wiesbaden
Freitag M (2004) Formel Toyota. Manager Magazin 12:72–83
Kano N (1984) Attractive quality and must-be quality. J Jpn Soc Qual Control 14(2):39–48.
(Hinshitsu)
Levit T (2004) Marketing myopia. Harv Bus Rev 7:138–149
Megginson LC (1963) Lessons from Europe for American business. Southwest Soc Sci Q 44(1):3–13
Ohno T (1988) Toyota production system: beyond large-scale production. CRC, Boka Raton
Wildemann H (2011) Variantenmanagement – Leitfaden zur Komplexitätsreduzierung,
beherrschung und -vermeidung in Produkt und Prozess, 19th edn. TCW, Munich
Womack JP, Jones DT, Roos D (1996) Auf dem Weg zum perfekten Unternehmen – Lean Thinking,
3rd edn. Heyne, Munich
Waste
3
Eliminate what bugs you!

Paul Akers
Overview
The definitions of the types of waste and their differentiation from value-added work
are a central topic of an optimization. The goal is to be able to see, recognize and
classify the types of waste.
Knalsch GmbH: Inefficiency

Mr. Alsch is sure that when he looks at Knalsch GmbH from his point of view, there
are enough employees on board and yet the desired output cannot always be achieved
in production. In his opinion, things are simply not running smoothly. Moreover,
every now and then additional Saturday shifts have to be scheduled so that the
necessary quantities can be delivered at all.
This also gave him the idea to expand and hire new employees. However, the
required number of parts should be able to be produced with the existing employees.
This is what the planning showed. But why doesn’t that work?
During a walk through production, the manager sees several workers standing at
the production machines for the components. They are waiting for missing material
for their production and cannot continue working.

https://doi.org/10.1007/978-3-658-36087-0_3
24 3 Waste
3.1 Processes
In the lean philosophy, the focus on processes is elementary.
" Process A process that consists of several parts (sub-processes, activities) and produces
a result (output). Typically, a process is standardized and repeatable. Process boundaries
occur in production where the material is waiting without any change being made to
it. Processes have a defined input from suppliers and an output for customers.
The difference to the business management way of thinking should be shown briefly and
simply. Since the business view of a company is driven by controlling, the focus is on the
result. The goal is to achieve this result by means of the given processes. A simple
calculation would be Eq. 3.1 with the focus on the result:
xþy¼9 ð3:1Þ
How is this task to be solved? Despite the given result, it allows for an infinite number of
possibilities in the combination of the factors, e.g., if one also thinks of non-integer
combination possibilities, fractions and negative numbers. The individual processes are
as varied as this. There are many influences on the result.
Lean starts with the processes and focuses on them. If the individual factors of the
processes are known, the result is also fixed. The following simple Eq. 3.2 exemplifies the
process focus:
3þ6¼z ð3:2Þ
Furthermore, the focus is on the processes and their influencing variables, with the aim
of achieving a good result. Thus, lean has a stronger forward-looking focus, while
controlling has more of an eye on the figures of the past.
3.2 Value Creation
In value creation, the product is viewed from the customer’s point of view. Which
processes and work steps form an added value for the customer? The concept of added
value arises when the output of a process is greater than the input. This is also how the term
value added tax came into being, as it is a difference between purchase and sale, although
this is the so-called sales tax.
" Added Value The difference between the value of the output produced by the company
and the value of the output purchased by the company. A transformation takes place
3.3 Safety 25
between the process input and the process output. The process steps in which a benefit is
generated for the customer are described as value-adding. The customer is willing to pay
something for this value. In financial terms, the value added is defined as the sales minus
the input.
From the customer’s point of view, value creation is performance. The increase in value
added is achieved by improving processes by eliminating non-value-adding activities and
replacing them with value-adding ones.
This approach is very well mastered by the Japanese at Toyota. The Israeli satirist
Ephraim Kishon said on this subject (Forschelen 2017, p. 648), “What the Japanese are
doing is unfair competition. They actually work during working hours.”
3.3 Safety
Before taking a closer look at and analyzing processes, the following applies: “Safety first”.
Because safety comes before speed. Human health is the most valuable asset. Sick and
absent employees are one of the most expensive expenses. If employees remain healthy, a
major expense factor is already greatly reduced.
Hazards are also relevant to the topic of safety. Every near-accident and every hazard
that is identified and eliminated helps to prevent occupational accidents. The hazard
analysis shows that the more hazards, the higher the probability of accidents (◉ Fig. 3.1).
At Toyota, the issue of safety is firmly anchored in the company’s ethics and policy
deployment (strategy development of the company). Safety is the most important issue and
comes before all other issues. This is certainly because a lack of safety has a direct impact
1
fatal
accident
100 accidents
with injury/work loss documented
undocumented
1.000 accidents without injury
10.000 near accidents
100.000 risky situations, actions, conditions
Fig. 3.1 Hazard analysis according to “Heinrich’s Law” (based on Heinrich 1931)
26 3 Waste
on all other lean metrics. Quality cannot be guaranteed if there are deficiencies in safety or
ergonomics. Delivery reliability cannot be met if employees are down due to accidents and
capacity suffers. Sickness costs and absences drive up costs unnecessarily.
Example
Toyota’s “Kiken Yochi Training” (KYT), which takes place regularly at all plants, is a
group activity in production to reduce risks and hazards. As it supports the company’s
strategy, it is used regularly, as are the optimization activities (▶ Sect. 11.1). ◄
Both the reduction of risks and hazards in processes and process optimization are
interrelated. Safety includes ergonomics (▶ Sect. 12.2). Safety, ergonomics and lean are
not contradictory, but can be equated. Safe activities are always associated with fewer
movements and thus with less waste.
3.4 The Seven Types of Waste
Saving is a Swabian virtue. Avoiding waste is a Japanese analogy for optimized and value-
adding processes. The Japanese call this muda.
" Muda The Japanese term stands for “to toil” or “pointless effort”. Muda was translated
as “waste”. Muda or waste refers to all activities that do not directly serve to create value,
i.e., any activity that consumes resources (causes costs) but does not generate any added
value. Muda must be avoided.
The actual meaning from Japanese, “to toil” and “pointless effort”, sums up the useless
activities better than the well-known term “waste”. If processes are analyzed in terms of
waste from a business perspective and approached with the true Japanese meaning, more
will certainly become apparent. In the following, the common term “waste” will be used.
However, the idea of pointless effort and human toil shall be included.
Taiichi Ohno probably defined the seven types of muda together with the Japanese
Shigeo Shingo (1909–1990). Various sources name one of the two as the inventor (Ohno
1988, p. 19 f.). Shingo was a companion of Ohno and was considered a quality guru
(Zollondz 2013, p. 172). The seven types of waste (muda) are:
• Overproduction
• Superfluous Movement
• Waiting time
• Transport
• Overprocessing
• Inventory, stock
• Defects, rejects and rework
3.4 The Seven Types of Waste 27
We deliberately start with the worst type of waste, overproduction, which leads to all
other types of waste. There is a difference between business administration and lean. In
business administration, for example, with its fixed cost degression, the calculation applies
that the costs per unit fall with high unit output. In principle, this is correct. However, this is
only realistic if there is a buyer for the quantity produced. Often, for cost reasons,
production is initially for the warehouse according to the push principle (▶ Sect. 5.1)
and not for the customer. The same problem arises when purchasing materials. If more is
purchased, the unit price at the time of purchase decreases. But for this quantity there must
also be a demand for use. This results in transports and inventories, i.e., further types of
waste. In the most unfortunate case, the goods must finally be scrapped, and the scrap value
of the material or the costs for disposal remain.
Reordering the classic seven terms, the name “Tim Wood” can be generated as a
mnemonic:
• Transport
• Inventory
• Movement/Motion (superfluous movement)
• Waiting (waiting time)
• Overproduction
• Overprocessing (process over-fulfilment)
• Defects (rejects and rework)
In some companies, the number and definitions of types of waste vary. In addition to the
usual seven or eight (▶ Sect. 3.5), further definitions are added with the aim of making
employees aware of important issues, such as ergonomics. On closer inspection, these can
all be broadly categorized as the original seven types of waste. Examples include energy
(overproduction/process over-fulfillment), ergonomics (unnecessary movement), space
(inventory) or searching (waiting time/failures).
Schmidt et al. (2019, p. 46) define a ninth type of waste for resources: “waste, offcuts
and residues” (cf. ▶ Sect. 22.2).
It can be seen from the different activities of companies that the types of waste also have
to be considered with a different focus: Waste of materials, waste of resources (machines,
raw materials, time and energy), waste of information (in the administrative area, ▶ Sect.
16.2), waste of human labor or waste of land and buildings.
What follows is a detailing of the seven types of waste.
Overproduction
Waste due to overproduction results from the production of products for which no order
exists. This is visible in the production of larger quantities than necessary, or in production
for stock. Products are produced earlier, faster and in larger quantities than they are
ordered. Pre-production and over-supply take place.
28 3 Waste
Causes are production control according to the push principle, lot sizing, lack of
customer focus, poor employee utilization and operational hectic due to hidden
underutilization.
In extreme cases, the result is the scrapping of goods. Overproduction generates
unnecessary transport, unnecessary handling and inventories that require space and energy.
Overproduction prevents production from flowing, incurs costs, distracts from the
customer, builds inventory, consumes resources without demand, and occupies land.
Example
An example from everyday life would be if much more pasta were cooked than
consumed. There is a rest left over. ◄
Superfluous Movement
Waste due to unnecessary movement occurs when people move more than is necessary to
perform the work process. Movements result from long walking distances and detours.
Unnecessary movements and poor ergonomics lead to poor movement sequences, such as
bending, stretching or twisting. In equipment, this type of waste can be found in the form of
unnecessary machine movements, such as protracted robot movements or a long path of the
tool to the workpiece.
Causes include lack of standards, poor workflow planning, poor station design and
layouts, and lack of training.
The consequences are unnecessary additional costs, non-ergonomic movements and
additional strain on employees.
Unnecessary movements interrupt the production flow and increase production time. In
addition, injuries can be caused.
Example
An example from everyday life would be when the kitchen utensils needed for cooking
are not stored in the right place and always have to be fetched over a long distance. ◄
Waiting Time
Waiting is a waste. Whether waiting for a process, for material or for a colleague, it is not
value creation. This includes set-up times, downtimes and malfunctions of machines, a low
degree of utilization, obstructions, unsynchronized processes and searching for material or
information.
Causes include poor synchronization (▶ Sect. 6.3), bottlenecks and machine failures,
and late deliveries. Other triggers can be faulty production planning and control as well as
deficiencies in product quality and product development. A lack of flexibility is another
reason for waiting times.
Waiting times hinder the production flow because it comes to a standstill. Continuous
production is no longer possible. This results in long throughput times and delivery dates
cannot be met. Personnel costs are incurred, although no added value is created during
this time.
Example
In everyday life, the example arises when there is a wait at a checkout. People also must
wait for processes. Examples are waiting for the pizza in front of the oven or for the
finished laundry in front of the running washing machine. Searching for tools or
cleaning utensils causes delays. ◄
An exception to this is when safety functions are performed. The waiting of the fire
brigade for an operation is not to be considered a waste, but its main task, which is to be
classified as necessary. It becomes interesting when the waiting time is used in a value-
adding way, i.e., for training, cleaning or repair activities.
Transport
The movement of goods describes a change of location, but there is no increase in value.
Transports therefore count as waste. Transports result from separate processes. Transport to
and from a warehouse does not add value, nor do empty runs without material or empties.
Causes are complicated layouts and poor arrangements of the material flow without
observing the flow concept. Unnecessary material transports and poorly linked processes
also cause transports. Another reason can arise from the use of one machine or tool by
several process flows. All flows must be transported to and from this equipment. Jigs and
tools must be brought to the production and transported back.
The consequences are an unnecessary occupation of means of transport, wasted space
and the risk of damaging products in transit. Transport increases the throughput time in
production and consumes resources.
Example
In everyday life one recognizes the transport e.g., when fetching beverages from the
cellar into the dwelling. ◄
Process Over-Fulfilment
Doing more in a process than is necessary to meet customer specifications is called process
over-fulfilment. Examples include drilling deeper than required, multiple packaging,
applying more paint than necessary, multiple handling, or unnecessary additional con-
sumption of materials, labor, and energy. Unnecessarily scheduled work steps, such as
testing procedures or reworking, also fall into this category. In part, the affected operations
have their origin in the complexity of the product design or in the specifications of the
process planning. The consequences are adjustment activities or costly material provision.
30 3 Waste
The causes lie in incorrect or outdated work standards or the attitude that this has always
been done this way. A lack of process understanding, missing standards or poor imple-
mentation of improvements and innovations are also among the causes of process over-
fulfillment.
Over-fulfillment in the process consumes time and resources without receiving any
value in return from the customer. In unfavorable cases, “too much” can also have a
negative impact on quality and shorten the life cycle of the product.
Example
In everyday life, process over-fulfilment takes place, for example, when cleaning and
vacuuming. If the same place is cleaned several times, the cleanliness result is not
improved. A package that is wrapped with more tape than necessary falls into this type
of waste. In addition, continuing to heat boiling water creates evaporation rather than
“hotter” water. If you stir your coffee or tea for a long time, you will eventually stop
changing the mixing ratio of milk and sugar. ◄
Inventory
Materials that are held and stored before, between, or after processes are called inventories.
Inventories are raw materials, semi-finished products, work in process, finished goods and
auxiliary materials. These are materials that have been purchased but not sold, and on
which no value-added work is performed. Inventories are located between processes and in
warehouses. They occupy space and require energy in buildings (heating, ventilation and
lighting).
The causes can be found in exaggerated safety thoughts and hidden problems.
Inventories are caused by not adjusting production to customer demand, using inaccurate
forecasts, or having long downtimes and long setup times. Large lot sizes inevitably lead to
inventory before and after processes. Unreliable suppliers trigger higher inventory levels
through their behavior.
Inventories trigger further waste, such as transports, storage, additional space occu-
pancy, energy consumption, quality problems due to storage and transport, and possibly
scrap due to aging. Warehouses and inventories must be managed. All this causes addi-
tional costs and ties up capital.
Example
In everyday life, stocks are found where offer prices or economy packs are used. For
example, there is a stock of different shampoo bottles in the bathroom. Equally high
stocks are sometimes found in kitchen drawers (◉ Fig. 3.2). ◄
For further explanations on this important topic related to stocks, see ▶ Sect. 4.3.
Fig. 3.2 Example: Inventory of containers in a kitchen drawer
Defects, Rejects and Rework

Errors in processes generate poor product quality. Faulty products generate dissatisfied
customers and are neither accepted nor paid for. Customers are lost due to poor quality.
Incorrect developments or faulty productions require additional tests and rework as well
they generate rejects.
Errors occur in the event of deviations or due to variable and non-standardized pro-
cesses. In machines, deviations due to poor tools are usually a major cause of errors. In
manual processes, faulty or missing standards are the problem. And lack of the right skills
and lack of training among employees are often the triggers for process deviations. Causes
can also be rooted in poor product design or inadequate product development.
This results in follow-up costs or, in the case of rejects, the loss of the material and the
resources and manpower contributed. In the case of reworking, the new processing
interrupts the regular production flow and costs another processing cycle. In the case of
rework, additional resources are consumed, and the administrative effort increases analo-
gously. The processing time is also extended. Customer confidence in the product, the
brand and the company decrease.
The solution is error prevention within the process. The key to success is always error-
free production (first time right).
Example
In everyday life, we encounter mistakes, for example, in the kitchen, when you have not
followed the intended recipe and the taste does not meet the expectation. Mistaking salt
for sugar leads to inedibility of food. A dull knife when slicing tomatoes certainly
produces more waste in the form of misshapen or squished tomato slices. ◄
32 3 Waste
3.5 The Eighth Type of Waste
To the seven types of waste presented (▶ Sect. 3.4), an eighth has been added. This is
unused employee knowledge. If employees’ ideas are not used or not requested, this
knowledge potential is lost. This can have a demotivating effect. A lack of information
exchange also belongs to this type of waste.
This eighth type of waste is based on the loss of ideas, unused but existing skills,
experience and knowledge of employees. This is associated with unused improvement
potential for the company. This type of waste occurs, for example, when participants are
not involved in processes or managers do not ask questions and are not willing to listen.
Ideas get lost and are not used. If there is a lack of leadership and coaching of employees,
this also counts as this type of waste.
The unused employee knowledge is a big waste from the company’s point of view as the
people in the company are the biggest asset. The best should be made of them and they are
to be encouraged. Critically, the eighth type of waste is perhaps the most important,
because the people in the company should not be neglected.
Example
At home, such a waste would be when no one reveals where the cleaning bucket is and
you are constantly looking for it. ◄
The mnemonic “Tim Wood” is supplemented by an “s” to “Tim Woods”. The “s” stands
for the term “skills”. Thus, the mnemonic is also valid for eight types of waste.
Another English mnemonic including the eighth type of waste is “downtime”. The
letters in this case stand for the following words:
• Defects (rejects and rework)

• Overproduction
• Waiting (waiting time)
• Neglect of Human Talent (unused employee knowledge)
• Transport
• Inventory
• Movement/Motion (superfluous movement)
• Excess/Extra Processing (process over-fulfillment)
As with other mnemonic words, the order does not represent a valence over the
importance of each type of waste.
3.6 Classification of Activities 33
Table 3.1 Classification of activities into three categories and their definition
Performance Color Explanation
Useful Green Value-added activities: e.g., joining, machining, assembly in a
performance gripping environment of about 80 cm, service
Apparent Yellow Supporting activities, which are indispensable for the creation of
performance value, e.g., placing workpiece in jig, taking material, taking tool,
machine set-up, quality inspection, collecting data, providing
material, testing.
Blind Red Waste (no customer needs): e.g., searching for parts, waiting,
performance duplication, sorting, repacking, reworking
Value-added (green)
Changes the function or form of a
product, or is perceived by the
Waste (red) customer as a service
Not necessary for the
performance of the work
Not adding value, but
necessary (yellow)
Does not add value, but
must be done under the
circumstances
Fig. 3.3 Circle segment representation of an activity division
3.6 Classification of Activities
All activities are divided into three categories (◉ Table 3.1). It is about the value-adding
activities, which correspond to the useful performance and are usually given a green colour
in a visualization. The wastes are a blind performance and visualized in red. With the
yellow area, another type of activity exists between value added and waste: the apparent
performance. These activities are described as necessary but have no value adding
character.
A breakdown into the three different activity types can be seen in ◉ Fig. 3.3. The
distribution shown in the figure corresponds to a usual division of a non-optimized process.
Example
A simple example can be used to illustrate how a division can be made. The connection
of two parts with one screw:
34 3 Waste
• Fetching the screw: Reactive power—waste,

• Putting the screw on: Apparent performance—necessary but not adding value,
• Screwing process: Apparent power—necessary but not adding value,
• Tightening with the last turn of the screw: Useful power—value-adding activity,
• Putting the screwdriver away: Reactive power—waste. ◄
This example, which seems simple, shows how difficult it can be to make a detailed
classification or to argue for improvements in discussions. Production engineers or
developers usually do not want to acknowledge this reality of high waste. Therefore, a
proper comparison is possible, and solutions are found to reduce waste: Carry screws in
belt pouches, use search tips on screws for easier insertion, use clips instead of screws with
many turns. It can be seen here that product design already has a considerable influence on
the added value of the manufacturing process. Further explanations on the product suitable
for production follow in a later section (▶ Sect. 17.2).
The value-adding useful power can be further condensed in optimizations. Apparent
power should be minimized as much as possible and avoided in the long term. Waste in the
sense of reactive power is to be eliminated immediately.
In this context, Takeda (2006, p. 148) considers another type of waste, namely that of
oversizing (e.g., of machine capacities).
3.7 Process Analysis
According to Wilhelm Busch’s motto “He who watches sees more than he who plays”, the
best tool for seeing waste is the eye. Analysis methods start with the observation of
processes. This is how terms such as “waste walk” or “muda safari” come about. Here,
processes at the point of value creation are observed regularly and over several cycles in
order to identify waste and process deviations. On-site observation cannot be replaced by
questioning or brainstorming at the desk.
The classic method for identifying waste is the “chalk circle”. Process optimizers and
managers were and are placed in a circle drawn with chalk on the floor (often just as an
imaginary virtual circle). From this, they are supposed to stop moving for an extended
period and closely observe a process over several cycles (OJT Solutions 2019, p. 34 f.).
After these observation cycles, waste is identified accordingly, analyzed, and can be
eliminated.
Supporting elements are checklists, which are tailored to topics such as assembly,
logistics and plants. Appropriate questions and categorizations are suggested as support.
Further insights can be gained, for example, through the questions in ◉ Table 3.2.
A special form is a prepared sheet with the layout of the station or area. When observing
the process, a pen is used to trace the path of the active employee on the layout. This is done
over several cycles of the process and shows the non-value-added walk. According to the
3.7 Process Analysis 35
Table 3.2 Questions for process observation

Focus Questions
Ergonomics • Are working heights suitable?
• Is the working area within 80 cm?
• Is it a monotonous activity?
• Are there any strenuous or tiring activities in the process?
• Are work equipment, aids, materials and operating elements easily accessible?
• Do loads need to be lifted?
Machine • Is the machine working at the scheduled pace?
• Are there machine-related waiting times for operators?
• Are there waiting times of the machines due to upstream or downstream processes
or activities?
• Are additional process times necessary due to the layout?
Process • Are there any process-related waiting times?
flow • Are there other jobs to be done in the area?
• Are there any unplanned activities?
Tool
Pallet Load carrier
Load carrier
Press
Fig. 3.4 Example of a spaghetti diagram
result on the sheet, this method of analysis is called “spaghetti diagram” (◉ Fig. 3.4). This
makes it possible to identify and eliminate the wasteful nature of the unnecessary paths.
Another method for identifying waste is the snapshot, in which observations of activities
are divided into categories in fixed, short-cycle time intervals (matching the process, e.g.,
ten seconds or one minute). This is noted in the respective category with a tally mark. This
analysis is used for many activities, e.g., a logistics process with a forklift. The distribution
of full truckloads, empty truckloads, empty truckloads, handling, administration, breaks
and others can be identified. This results in optimization approaches.
36 3 Waste
These analysis methods are not only applicable in direct production processes, but
analogously also in indirect and administrative activities with equal success.
For those in the lean environment who fail to take advantage of these simple analytics,
consider the saying of French philosopher and writer Jean-Paul Sartre (1905–1980)
(Kostka 2016, p. 32): “If you do not use your eyes to see, you will need them to weep.”
3.8 Optimization
The identification and elimination of waste leads to rapid process optimization and an
increase in value creation. In this way, unnecessary processes are repeatedly identified and
saved in production. A Swabian sports car manufacturer, for example, went on an intensive
search for unnecessary routes and converted several kilometers of travel by an employee
into value-adding activities (Krogh 2015).
It is about replacing waste with value-creating activities. But not only that, the conden-
sation of value creation is also wanted. Whether with the screwdriver by hand or the
cordless screwdriver at multiple speeds, both create value, but at different speeds. On closer
examination, the influence of product design is also not insignificant (Chap. 17).
It is important that waste is replaced, or activities are improved, and not new, additional
activities are packed on top of the already existing ones. This would lead to overload
through performance compression. Increasing value creation must be done much more by
improving processes, eliminating non-value adding activities and replacing them with
value adding ones (◉ Fig. 3.5).
Activity compression: Additional value addition
Improvement: Exchange of waste with value addition
V V V
W W V W
V = Value addition
W = Waste
Fig. 3.5 Difference between performance compression and improvement

3.8 Optimization 37
Waste must be eliminated before other methods of optimization are used. A common
mistake is to reschedule or automate a process and to plan or automate the existing waste
again. As long as processes are running with waste, there is no point in digitizing them or
setting up a kanban system. The waste remains and is institutionalized or integrated into the
automation.
The avoidance and elimination of waste in the processes has a positive effect on the
throughput time. In addition, inventories, including the space required for this, are reduced.
The methods in ◉ Table 3.3, which will be explained in more detail in the following
chapters, can support the avoidance of waste and provide a remedy.
The goal of eliminating waste is solved when the use of resources does not exceed
customer needs. The focus on a high value-added share and a short lead time enables
this goal.
Table 3.3 Selection of lean methods that support the avoidance of the types of waste
Type of waste Methodology for avoidance
Overproduction • Leveling, heijunka
• Pull principle, kanban
• Pacemaker
• Fast set up
Transport • Value stream mapping
• Layout in flow
• Bottleneck identification
• Line-back approach
Superfluous movement • Process observation, chalk circle
• 5S
• Material supply
• Batch size reduction
Inventory, stock • Flow principle
• Line-balancing
• Pull principle, kanban, just-in-time
• Fast set up
Overprocessing • Poka yoke, jidoka
• Standardization
• Kaizen
• Design for manufacturing
Defects, rejects, rework • Poka yoke, jidoka
• Standardization
• Problem-solving process
• TPM on machines
Waiting time • Standardization
• Flow principle
• Line-balancing
• Bottleneck identification
38 3 Waste
The Following Questions are Relevant in the Field of Security
• Does safety take precedence over output, quality and costs?

• How many accidents at work were there last year?
• What is the trend in the accident’s indicator?
• Is there a target for the number of accidents at work? If so, which one?
• How are accidents documented and visualized?
• Are measures derived in the event of accidents? Which measures are initiated?
• Are measures also initiated in the event of hazards and near-accidents?
The Following Questions Relate to the Topic Area of Wastage
• Are customer expectations achieved with reasonable effort?

• Do employees wait on machines?
• What time is wasted due to unnecessary waiting, queries, searching, plausibility checks,
corrections, etc.?
• Are the processes as free of waste as possible?
• How can the working time of the employees be used better?
• Why is the activity carried out in this way? Why is this process step carried out in
this way?
• What is the cause of this activity and who is the customer for it?
• Is the activity in the respective process carried out in such a way that the work in the
downstream process is simplified (component alignment, preparations, sorting)?
• When improvements are made, are employees consulted and their ideas used?
• How can employees be better involved in change processes?
3.10 Summary
Summary on the Subject of Waste

• It is important to focus on the value-adding processes. Value added is sales minus
intermediate inputs.
• Muda (waste) describes all activities that do not directly serve to create value.
• To work efficiently, waste must be avoided.
• There are different categories of activities: Value-adding (useful output, condense as
much as possible), non-value-adding (reactive outputs, eliminate immediately) and
non-value-adding but necessary activities (apparent outputs, minimize as much as
possible and avoid in the long run).
• Lean offers analysis options for identifying activities that do not add value. These are
eliminated or replaced by value-adding activities.
References 39
• Safety, ergonomics and lean are not contradictory. Safe activities are always
associated with fewer movements and thus with little waste.
• The synonym “Tim Wood(s)” can be used to infer the seven or eight types of waste.
• Waste and inefficiencies are identified by observing processes (e.g., chalk circle,
muda safari, waste walk). No brainstorming or questioning achieves similar results.
• The goal of eliminating waste is solved when the use of resources does not exceed
customer needs. The focus must be on a high value-added share and a short lead time.
• Before processes are digitized or a kanban system is introduced, waste in processes
must be eliminated. ◄
Questions
• What is the most important topic in the area of Lean?
• What types of waste are there? What are typical examples?
• What is the worst type of waste and why?
• Why is the “eighth type of waste” important?
• How can waste be identified?
References
Forschelen B (2017) Kompendium der Zitate für Unternehmer und Führungskräfte. Springer Gabler,
Wiesbaden
Heinrich HW (1931) Industrial accident prevention: a scientific approach. McGraw-Hill, New York
Kostka C (2016) Change Management – Das Praxisbuch für Führungskräfte. Hanser, Munich
Krogh H (2015) Porsche stockt Personal stark auf. Automobilwoche 19:6
Solutions OJT, Inc. (eds) (2019) Toyotas Geheimrezepte für die Problemlösung. Deutscher Manage-
ment Verlag, Herrieden
Schmidt M, Spieth H, Haubach C, Preiß M, Bauer J (2019) 100 Betriebe für Ressourceneffizienz.
Praxisbeispiele und Erfahrungen, vol 2. Springer Spektrum, Berlin, Heidelberg
Takeda H (2006) The Synchronized production system – going beyond just-in-time through Kaizen.
Kogan Page, London
Zollondz HD (2013) Grundlagen Lean Management – Einführung in Geschichte, Begriffe, Systeme,
Techniken sowie Gestaltungs- und Implementierungsansätze eines modernen
Managementparadigmas. Oldenbourg, Munich
Stabilization
4
The stability of a river results from the uninterrupted flow of

water.
Taiichi Ohno
Overview
Stable processes are an important prerequisite for good processes. Loss factors
inhibit stability and should therefore be avoided. There is a direct correlation between
high inventories and a long lead time through a process chain. Clearing inventories
has a positive effect on the balance sheet, lead time, delivery time and customer
satisfaction.
Knalsch GmbH: Waiting Customers

Knalsch GmbH’s customers often complain about long delivery times. This is not
comprehensible for Mr. Alsch. The warehouse is filled, and large quantities of
material have been purchased from the suppliers. There are sufficient goods in the
warehouse.
It is shortly before Christmas. Managing director Alsch is taking a tour of the
production facility with his former fellow student Nick Peters, who works for a
(continued)

https://doi.org/10.1007/978-3-658-36087-0_4
42 4 Stabilization
logistics company in northern Germany. Alsch proudly shows the automated pro-
duction line of the Knalsch 3000. As they pass many bins with large screws, Peters
takes two screws from one of the crates and presses them into Alsch’s hand. As he
does so, he says with a smile, “Here, your Christmas present and all the others are
probably for your staff, right?”
Alsch is irritated and asks, “What are you trying to say?”
Nick Peters answers, “You have a very large stock of screws here that has long
since been paid for by the supplier. It will take you a long time to install it in your
production, deliver it to the customer and have him pay you for it. That is capital tied
up in the long term. In this case in the form of these countless screws. This has a
negative effect on your cash flow. You could have distributed the interest on the
amount of money lying here to your employees as a Christmas bonus. Then it would
have been more sensible and better invested.”
This criticism makes Karl-Norbert Alsch very thoughtful.
4.1 Loss Factors
Waste (▶ Chap. 3) is one of the three loss factors in processes. In addition, there are two
further factors of inflexibility and variability. The three loss factors mentioned are so-called
performance constraints.
Inflexibility is manifested by a lack of responsiveness to change, such as a changed or
unexpected customer order. Inflexibility prevents rapid adaptability in the delivery of
products. It is characterized in manufacturing plants by static linkage and by large,
inflexible machines or complex technology. Inflexibility is made visible by complexity
in the factory and by up to 100% space occupation with impenetrable material movements
and material flows. ◉ Table 4.1 shows factors influencing inflexibility from different areas.
To be able to reduce inflexibility, the ability to react to changing customer requirements
is needed. This concerns the areas of layout and materials handling technology, the
machines and systems, the equipment and systems, as well as the organization and
personnel.
Variability arises in processes through deviations from the standard and inconsistencies
in the workflows. Different process flows, such as changing processing times in manual or
automated activities, lead to fluctuations and thus to waste due to overload or waiting times.
Non-cyclical activities hinder the workflow. Even minor changes lead to variability.
4.1 Loss Factors 43
Table 4.1 Factors influencing inflexibility

Man • Local binding, organizational
• Qualification
• Personal interests
Method • Field of application
• Specification limits
• Process capability
Material • Properties
• Operational requirements
• Workability
Machine • Large plants (cycle times, set-up, maintenance)
• Layout
• Conveyor technology
Table 4.2 Factors influencing variability

Man • Performance level
• Qualification
• Personal attitude
Method • Workflows
• Process capability
• Specifications
Material • Quality/condition
• Dimensions
• Environmental effects
Machine • Availability
• Performance level
• Capability
Example
The replacement of an empty load carrier is a disruptive interruption of the regular work
process. A variability also results from a load carrier that empties more and more. The
fill level drops and it takes a little longer with each cycle to remove a part from the load
carrier. ◄
Variability is shown by non-existent or not followed standards as well as different

process sequences, searches, acyclic peaks, arbitrary variant scheduling and different
degrees of utilization in stations, for example, by variants. ◉ Table 4.2 shows influencing
factors from different areas.
When reducing variability, any deviations from standard conditions must be avoided.
These are primarily the variability of incoming materials and uneven throughput times.
This is achieved by increasing factory, plant and system availability and improving process
capability. The definition of standards and their area-wide introduction and further devel-
opment is also necessary.
44 4 Stabilization
4.2 The 3 Mu
The “3 Mu” stands for three words that begin with “mu”.
" 3 Mu Collective term for the three Japanese words “muda” (waste), “muri” (overload)
and “mura” (imbalance, fluctuations). Wherever at least one of the three “mu” appears,
there is a need for improvement.
The first “mu” stands for “muda”, that is waste and pointless work. The seven or eight
types of waste were explained in ▶ Sects. 3.4 and 3.5.
The second term “muri” focuses on the overloading of processes, people, machines or
organizations.
" Muri Overload or a non-ergonomic activity. Prolonged overload is punishing and leads
to failure or burnout. This can affect people, equipment, organizations or the supply chain.
The third “mu” stands for the term “mura”, which is translated as “imbalance”.
" Mura Fluctuations in the process, imbalance. Other descriptions would be imbalance,
instability or variability. Non-cyclic activities can be secondary activities that interrupt the
work cycle, such as replacing an empty container with a full container. Repeated accelera-
tion and deceleration also fall under the term mura. Fluctuating processes introduce unrest
into the system.
◉ Figure 4.1 shows a summary of the 3 mu.

Muda, muri and mura influence each other. For example, more work than people and
machines can handle (muri) leads to underutilization of people and machines at another
point, if necessary. This is muda. Insofar as this fluctuates alternately, mura would be added
for the misutilization of processes. Mura shows up in the interplay between the two phases
of overload and waste.
With the perspective of the “3 mu”, according to Imai (1997, p. 85), various issues
should be examined: Employees, technique, method, time, possibility, devices and tools,
material, production volume, circulation, space and the way of thinking.
4.3 Inventory 45
Muda: Waste
1t 1t 1t 1t 1t 1t
Muri: Overload
1t 1t 1t
1t 1t 1t
Mura: Fluctuations, imbalance
1t
1t 1t 1t 1t 1t
No Muda, Muri and Mura
1t 1t 1t 1t 1t 1t
Fig. 4.1 Pictorial representation of the 3 mu
4.3 Inventory
Before anything can be produced from raw material, it must be procured. Purchasing
quantities are negotiated and the basic business rule applies: the price falls when the
quantity increases. This can also be seen in the movie “Pappa ante Portas” by Loriot,
when Loriot buys vast quantities of office supplies and later mustard to save money per
item. If you buy more, you get a lower unit price. And so, it is apparently true that set-up
costs per part fall when production is in larger batch sizes (▶ Sect. 5.1). But these business
myths do not apply when the entire value chain is considered. Every inventory of raw
material and unfinished products between the process steps is associated with a capital
commitment.
Inventory is one of the types of waste (▶ Sect. 3.4). Why do many companies stockpile
goods before and between processes? One reason is the increasing individualization. The
increase in variants also results in more variants of vendor parts. After all, every product
should always be available in sufficient quantities so that customers can be supplied
quickly (high delivery reliability). A production standstill due to a lack of material is the
expensive nightmare of every producer. A high material stock fulfils the function of a
“sleeping pillow” because stocks compensate for other problems.
46 4 Stabilization
Example
If the inventory is scrutinized, many statements are made: Ensuring the ability to deliver
to the customer, compensating for delivery bottlenecks from the supplier, intercepting
traffic disruptions such as traffic jams, accidents or bad weather, outlasting plant
failures, poor availability of production and transport equipment, defective parts and
poor quality, possible strike situations or even employee absences due to illness. The
forementioned risks are to be absorbed and minimized by inventories. ◄
Suppliers also build up corresponding stocks to be able to react quickly in the event of
problems. The fear of being taken to court for a production standstill at the customer
justifies the decision. Especially in the automotive industry, a stopped assembly line at the
OEM can very quickly become very expensive for the supplier who is at fault.
Example
In many companies, the realization seems to have arrived that inventory is not a good
thing. To justify this and carry on as before, inventories are given cover names. In
practice, hidden inventories are given the following terms in factories, layouts and
documents, for example overstock, buffer, intermediate stock, or increase utility
module. ◄
Not categorized as waste is a safety stock. Correctly calculated, this is the only stock,
apart from the standard stock in circulation, that does not represent waste. Although this
term is also misused as a cover name.
Inventories are very problematic. For example, as a rule, the sequence of parts cannot be
observed. Overtaking processes take place. In a warehouse where stock is always put away
and retrieved from the same side, the part put away first is always the oldest (last-in-first-
out, LIFO). In the case of perishable goods, such as foodstuffs or chemical products, such
as adhesives and paints, the quality can fluctuate greatly. Such variation in material
properties is a variability in the process and may introduce new problems and deviations
in the process.
Stocks become partially contaminated during longer storage periods and must be
cleaned. In total, the quality of stored goods decreases due to storage and retrieval as
well as transport. Another problem arises when material values fluctuate, as is the case with
raw materials. If, for example, the value of the material decreases, the value of the stock
decreases and the company suffers a loss. Of course, the reverse is also true. With many
raw materials, it pays to buy them cheaply and store them temporarily due to rising material
prices. This is the popular opinion. However, if one also considers the warehousing costs
for the space, the building, the equipment, the floor conveyors, the warehouse personnel,
the administration, the warehouse systems and the software, the insurance and the energy
required for the storage, the calculation shows a different picture.
4.3 Inventory 47
Example
Some materials, such as glue, need to be stored in a warm environment, while other
products, such as chocolate, require energy to cool in summer and heat in winter. ◄
High inventories in a process chain are critical when quality problems occur. If a
supplier’s product defect only becomes apparent when it is installed at the customer’s
site, high inventories affect far more parts in the production and supply chain. With lower
or no inventories, detected defects can be reported back and corrected more quickly.
Otherwise, this results in a large amount of rework and, in the worst case, costly scrap.
Example
In the case of inventories with electronic components and a software version, the
products must also be kept up to date. With every software change, the parts in all
buffers and warehouses must be updated to the new status. In the case of unsorted
inventories, old parts with old version and design statuses are still found after a
long time. ◄
“Inventory is evil.” They cover problems, cause new waste, and cost time and money. In
the book of the same name, the formulaic proof is given in a not entirely serious way
(Hartmann 2008, p. 119). It is derived that inventories cost time and money (Eq. 4.1) and
time is money (Eq. 4.2). The last formula is inserted into the first and results in Eq. 4.3.
Inventory ¼ Time Money ð4:1Þ
Time ¼ Money ð4:2Þ
Inventory ¼ Money2 ð4:3Þ
Further follows the statement that “money is the root of all evil” (Eq. 4.4). And so
Eq. 4.4 is substituted into Eq. 4.3. Equation 4.5 is obtained. The proof is given inventory is
evil.
pffiffiffiffiffiffiffiffi
Money ¼ Evil ð4:4Þ
pffiffiffiffiffiffiffiffi2
Inventory ¼ Evil ¼ Evil ð4:5Þ
Statement: Where there is inventory, there are problems, because stocks hide problems.
The analogy with sea level and a ship can be used here (◉ Fig. 4.2): the ship as ongoing
production and the water level as an indicator of the amount of inventory. If the water is
released (inventory is reduced), the ship encounters subsurface peaks. These are the
48 4 Stabilization
Inventories and
excess capacity
Poor quality Machine breakdowns

Delivery delays Inaccurate forecast
Traditional approach Lean
Fig. 4.2 Analogy for production with high and low inventory: Ship with different sea depth
unsolved problems. If one solves the hidden problems in a sustainable way, then nothing
stands in the way of free sailing with a lower water level (less inventory or safety distance).
Wherever additional stocks appear, there are problems that must be solved. For exam-
ple, breakdowns should be avoided. In the case of equipment, this can be done through
maintenance and servicing (▶ Sect. 13.3), and in the case of people, through hazard
avoidance and health programs. Early warning systems for error detection or error preven-
tion (▶ Chap. 9) also support problem reduction. For each problem, a sustainable problem-
solving process (▶ Sect. 25.4) must be followed. Stocks remain small and production
improves step by step.
Example
Should you buy more yogurt in the future just because a yogurt was once not ok? The
answer is no! It is better to identify the cause of the problem and solve it (▶ Sect. 25.4).
For example, checking the best-before date in the future before buying, or repairing the
defect fridge. ◄
For a final uncertainty, a safety stock or minimum stock reduced to a minimum remains.
One thing must be clear about inventory reduction: It will not be easier for production,
but more challenging. The processes must run very reliably and extremely robustly with
small inventories. It is all about stable processes and solving and eliminating problems in a
sustainable manner.
4.4 Lead Time
Lead time is one of the most important metrics for optimizing process chains and value
streams in the context of lean implementation (▶ Sects. 8.4 and 23.1). It is applied in the
direct area and works equally well in administrative processes as in management.
4.4 Lead Time 49
" Lead Time The time required by an object (product or information) to run through a
complete process chain or value stream. It is therefore an indicator of the responsiveness of
processes. It is measured from order entry to delivery to the end customer (end-to-end or
dock-to-dock). The lead time is calculated from the sum of the process cycle times plus the
times that result from the inventories before, between and after the processes. The lead time
can be used as a key figure for every company process (e.g., production, development,
quotation preparation, recruitment).
Lead time includes not only process time, but also all delays, administrative processes,
equipment malfunctions and ways. Whether you as a customer go through a service process
or the customer’s product goes through production - ultimately, a customer is waiting for
the service, and it should be as fast as possible.
Example
In the book “This is Lean” everything revolves around lead time using the example of a
patient and her journey through the hospital (Modig and Ahlström 2014, p. 1 ff.). From
your own experiences, you know how it feels when you go through process chains and
the turnaround times vary. Be it the waiting room at the doctor’s or the queue at the
snack bar, at the office or at the supermarket checkout. ◄
High delivery reliability with short lead times increases customer satisfaction. If
customers are used to long delivery times, this can also create new problems, as the
following example shows.
Example
A company had such a long lead time that end customers randomly pre-ordered their
products long before delivery so that they would be included in production planning in
advance so that they would not have to wait too long for the product later. Before
delivery, the variants were changed by the customers and finally adapted. An impulse
that massively disrupted the orders at the producer and additionally increased the lead
time due to sorting and variant inventories. When the company switched to lean
production with faster lead times, the customers were irritated, because they neither
expected such a fast delivery nor the product, which was not yet specified more
precisely and was actually only ordered as a “placeholder”. In this case, customer habits
changed. ◄
With a fast lead time close to the process time, precisely specified delivery periods can
be given to the customers. The customer can thus plan better and is ultimately more
satisfied. He is given the specified delivery date when he places the order. A fast lead
time is the measure of customer orientation that is compared in online shops today. This
50 4 Stabilization
key figure is constantly being optimized because it is important and relevant for the
competition.
In process flows, the lead time can be calculated and measured. This takes a long time
and leads to very different results. From the data of a value stream, the lead time is
calculated as follows (Eq. 4.6) (▶ Sect. 8.4):
X
n X
m
Lead time ¼ Cycle timei þ Tact time Inventory j ð4:6Þ
i¼1 j¼1
The calculation of the tact time follows in the chapter “Customer tact time” (▶ Sect. 6.2,
Eq. 6.1). The smaller the inventories, the more the lead time approaches the sum of the
process cycle times. The ideal situation is when the lead time equals the total process time,
and this no longer contains any waste.
Example
If the organization and process in a doctor’s office are very good, for example, then the
practice does not need a waiting room. Patients are informed in time via text message to
their mobile phone that it will soon be their turn. There are no waiting times and no
inventory of waiting patients. ◄
Lead time is a competitive factor (▶ Sect. 23.1).
Example
An example from the fashion industry is the company Inditex with its fashion chain
Zara. The time that passes until a new product is launched on the market (time-to-
market) is only 3–6 weeks. After that, this company can supply its stores in Europe from
Spain overnight (Ferdows et al. 2004). This makes it faster than its competitors and
quicker to reach its customers. It is true that there are higher costs due to high-volume
airfreight because the clothes are not folded but transported hanging on hangers.
However, it is precisely these preparations, such as ready labelling and crease-free
goods, which avoid additional time being wasted when the goods are put away in the
store. At the same time, space is saved for preparation and storage in the shop. The
principle is reminiscent of the minomi principle (▶ Sect. 21.4), the goods are hung up
and pushed along on poles. ◄
Lead times can be shortened by optimizing the process time. One example is the
parallelization of customer flows by having one checkout serve two customer lines
alternately. Waste caused by waiting until the customer has left with his goods and the
next customer has proceeded can thus be compensated if in the meantime cash is collected
at the other customer line (◉ Fig. 4.3).
4.4 Lead Time 51
One cash register One cash register

with one queue with two queues
Cash Cash
register register
Quantity
Quantity
Time Time
Fig. 4.3 Comparison of different queuing concepts at a cash register
Example
A fast food restaurant uses the identical procedure of parallelization at its drive-in, in
which the vehicles order at two intercom stations operated in parallel. The employee at
the order desk can thus alternately take a new order between the two intercom stations
while the vehicles continue to drive, the next one comes to the order column and the
employee thus does not have to wait (◉ Fig. 4.4). ◄
Both cases increase the throughput of customers and reduce their waiting time. This
improves the lead time and the productivity of the respective employees at the checkout
and at the order acceptance. It would be even better if customers generally no longer had
to stop.
The connection between waste avoidance, process optimization and lead time can be
seen in a comparison of supermarket checkouts. Discounters are faster in the average
duration of the checkout process and thus better in customer throughput than other
supermarkets (◉ Fig. 4.5).
52 4 Stabilization
New: Second track

Order here!
Order here!
Get through even faster.
The two-lane drive-in

for doubly fast service.
Fig. 4.4 Drive-in lanes
Average duration of a checkout process

Seconds
57 60
51
42
Discounter A Discounter B Supermarket C Supermarket D
Fig. 4.5 Comparison of key figures of different supermarket checkouts (based on Schlautmann
2009)
Example
The secret of fast checkout procedures can be seen at many points in the process and
avoids unnecessary process times. For example, there are long conveyer belts in front of
the checkout so that customers can place their products in a prepared manner. After the
checkout, there is only a short area to ensure that the goods are cleared quickly.
4.4 Lead Time 53
1 Touchscreen (hanging)
2 7 8 2 Barcode scanner from front
6
3 Scale (integrated barcode
3
scanner from below)
Conveyor belt
4 Weight display for
5 customer
5 Cash drawer
Goods 6 Printer for receipt
Chair 7 Customer display
8 Card reader
Fig. 4.6 Work area of a supermarket checkout at a discount store
Barcodes are placed around the products so that they can be scanned quickly and
without errors. While scanning, the printer immediately prints the items on the receipt.
A scale is integrated in the checkout area. With this constellation, no customer forgets to
weigh the goods or labels them incorrectly, thus holding up the process at the checkout
unnecessarily. During the scanning process, the customer is asked for the payment
method (cash or credit card). The cashier puts the last item into the shopping cart so the
customer can concentrate on paying. The payment process is accelerated by having the
appropriate change ready in advance when paying in cash. Asking for the payment
method in advance and fast online payment processes speed up the process. The device
for credit card payment is located at the customer’s premises; the card does not have to
be scanned by the cashier. The shopping carts have no storage space underneath the
basket, so the cashier does not have to stand up to check whether all the goods have been
placed on the conveyer belt.
Other supermarkets have unnecessary administrative processes within the payment
process, such as scanning loyalty cards, scanning coupons and issuing collection
stickers, which are marked handwritten on the receipt. Other processes are crossing
out of receipts after deposit redemption, the recording of the shopping cart number with
simultaneous visual inspection of the compartment under the shopping cart or asking of
the zip code for statistical purposes. Multiple printouts for receipt and separate receipt
for credit card payment as well as additional coupons are associated with waiting times
for printing and administration. The seating position at discounters is more ergonomic
and rotated 90 degrees to the customer (◉ Fig. 4.6). ◄
Example
One example of lead time is the issue of “Monday cars”. No new car customer wants a
so-called “Monday car”. This term refers to a vehicle that was produced on a Monday.
This is equated with a product that is not satisfactory in terms of quality, as it is assumed
that employees first have to get back into their routine on Monday in order to be able to
produce the expected quality. Although car manufacturers ensure quality through
standards every day and every time of the week, this comparison is usually flawed
54 4 Stabilization
because the lead time of a vehicle through the entire production process is still a week or
more. This means that every vehicle is a “Monday car”, as some work processes are
always carried out on a Monday if the lead time is one week. ◄
4.5 Levelling and Balancing
Customer demand must be leveled before it is passed on to production. A production

should not be burdened with high fluctuations in the number of units. Market sales
fluctuations, such as seasonal changes, orders due to promotions or bulk orders, change
the incoming customer demand. Thus, different order quantities arrive at the disposition. It
is also necessary to react to increasing or decreasing demand. This occurs when a product is
launched or discontinued.
The aim is to level or balance these fluctuations so that continuous and leveled
production is possible (◉ Fig. 4.7). A floating average is used and balanced by different
shift assignments or flexible working time models.
One way of levelling different order backlogs is by means of the so-called heijunka
board.
" Heijunka Pitch board on which demand for production is leveled. Comparable to a
pegboard, where capacities and orders are assigned to each other. If there are sufficient
Pieces/day
300
200
100
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Demand Time in days
Leveled production
Fig. 4.7 Fluctuating demand and leveled production

4.5 Levelling and Balancing 55
Production orders
Time
Fig. 4.8 Animal analogy for responding to fluctuations in demand
orders for a product, this variant is scheduled. There cannot be more compartments on the
board than there is available capacity.
Experts use heijunka for their own time management: when to do what and how many
jobs can be accepted if there are already other tasks.
When looking at production, the continuous processing of orders needs to be leveled.
Unstable processes or variability lead internally to an uneven production flow. It is all about
trouble freeness from disruptions and an adjusted material supply.
" Example Taiichi Ohno (1988, p. 63) describes the topic of levelling with an animal
analogy. While poorer productions behave like hares, namely jumping, sprinting fast and
waiting again, a good production behaves more like a tortoise (◉ Fig. 4.8). It moves slowly,
deliberately, and steadily. Thus, according to Ohno, it reaches the goal in total faster and
more relaxed than the hare.
For a balanced production, the variance of the products must also be taken into account
when levelling the production, insofar as this has an influence on the line balancing (▶
Sect. 6.3). The characteristics for scheduling products in a uniform sequence should be
considered: Products with maximum specifications, products with minimum specifications
and, if applicable, restrictions of suppliers and logistics.
56 4 Stabilization
4.6 Flexibility
To meet customer requirements, adaptability is necessary. This is called flexibility and

concerns the workforce, the plants, the processes and the organization, which have to
adapt according to the influences. The overall system should be scalable without
sacrificing productivity. A possible flexible assembly system is described in a later chapter
(▶ Sect. 12.3).
Switching on and off production areas or cells is a solution, as well as the material
supply, depending on demand. However, this flexibility is only possible if the systems and
the areas have not been designed for too high quantities and thus only profitable at full
capacity.
The term “convertible” is decoupled from the term “flexibility” at this point. Convertible
is much more than just sufficient flexibility. The complexity of change is greater in the case
of conversion. We are talking here about product changes or the change of entire markets.
The topic can be compared to a leap in innovation (▶ Sect. 11.2).
Example
After its crisis, the company Festool has become one of the showcase productions when
it comes to flexibility (Regber and Zimmermann 2007, p. 331). Flexible working time
models with flexible working time accounts and simple assembly cells, which are only
operated when there is a customer demand, control the output according to customer
needs and without loss of productivity. ◄
The Following Questions are of Interest in the Field of Losses
• Are the load and load factor even for variants?

• Isn’t there some complex technology that involves inflexibility?
The Following Questions are Relevant in the Topic Area of Inventories

and Lead Time
• Are lead times close to process time?

• Are inventories reduced to a necessary minimum (standard stock)?
• Is there a defined range of coverage for the material stock?
4.8 Summary 57
The Following Questions Concern the Topic of Flexibility
• Are the processes flexible about changes in the number of units, product changes and
changes in the proportion of variants?
• What tools are used to achieve good flexibility?
• Are the processes flexible enough to react to unpredictable events without losses?
• Are physical processes and information processes (IT) flexible to quickly change
processes (optimizations, rescheduling)?
4.8 Summary
Summary on the Subject of Stabilization

• Loss factors and barriers to performance are waste, inflexibility (lack of
responsiveness to change) and variability (deviations from the standard).
• The 3 Mu stand for muda (types of waste), muri (overload of processes, people,
machines or organizations) and mura (imbalance, fluctuations, variability).
• Inventories are very problematic:
– Sequences cannot be kept (overtaking)
– LIFO for perishable or chemical goods, storage and retrieval, contamination by
lying (quality losses)
– Fluctuating material values (risk)
– Storage costs are underestimated (space, equipment, subsidies, personnel, admin-
istration, systems, insurance and energy).
• Processes must be designed to be reliable and robust with small inventories. This
increases the demand on production.
• The lead time corresponds to the sum of the process cycle times plus the times that
result from the inventories before, between and after the processes. Included are not
only process time, but also delays, administrative processes, equipment malfunctions
and travel times.
• High delivery reliability with short lead time increases customer satisfaction. The
customer is waiting for the service, so it should be fast.
• The smaller the inventories, the more the lead time approaches the sum of the process
cycle times. The ideal is that the cycle time equals the total process time.
• The lead time can be shortened by optimizing the process time. This reduces the
waiting time for customers.
• Fluctuations must be avoided to enable continuous and leveled production. It is all
about trouble freeness from disruptions and an adjusted material supply.
• Flexibility means adaptability, e.g., of employees, facilities, processes and the
organization. ◄
58 4 Stabilization
Questions
• What are the influencing factors for inflexibility and how for variability?
• How do the 3 Mu influence each other?
• How does muri affect the work process of employees?
• Which type of inventory is not waste in a lean context?
• How is the lead time determined?
• How are inventories related to lead time?
• How are order backlogs leveled? What are the possibilities for levelling order
backlogs?
References
Ferdows K, Lewis MA, Machuca JAD (2004) Rapid-Fire Fulfillment. Harv Bus Rev 82(11):104–110
Hartmann T (2008) Bestände sind böse: Produktion als strategische Waffe – Ein Arbeitsbuch für
Unternehmer, 2nd edn. Unternehmer Medien, Bonn
Imai M (1997) Gemba kaizen: a commonsense low-cost approach to management. McGraw-Hill,
New York
Modig N, Ahlström P (2014) This is lean: resolving the efficiency paradox. Rheologica, Stockholm
Regber H, Zimmermann K (2007) Change Management in der Produktion – Prozesse effizient
verbessern im Team, 2nd edn. mi, Landsberg
Schlautmann C (2009) Aldi hält Wettbewerber deutlich auf Abstand. Handelsblatt, 20th Apr, p 12
Flow
5
Keep everything moving. Bring the work to the employee, not the
employee to the work.
Henry Ford
Overview
The topic of flow deals with the process layout and the batch size. Latter is a problem
for lean production, because flow can only be designed with a small batch size. The
deep understanding of the differences between a production according to lot size and
a production according to the principle of one-piece flow is the basis for an improve-
ment of quality, time and costs.
Knalsch GmbH: Lack of Clarity

Since the stocks have been reduced, things are already going a little better. But there
are still too many and too long transport routes. Dr. Alsch and his assistant Claudia
Beck try to trace the routes. However, the factory is very confusing, and the routes
are long. The material of the Knalschi 100 is driven to the opposite end of the hall for
the washing process and then back again. This is only worthwhile if the box is filled
with at least six pieces, says forklift driver Isabell.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_5
60 5 Flow
“That can’t be value-adding,” says Alsch. “And certainly not transparent,” adds
Claudia Beck. She notes that the forklift transport seems to her like the company’s
last ski trip, “There was the cable car with the big cabin, and we had to wait a long
time. Then at the top of the ski area there was the chairlift that continuously took
people away with less waiting time.” Isabell with the forklift and the big boxes seems
to her like the big cable car.
Alsch thinks aloud, “Who actually understands this factory and how did it get to
be the way it is today?”
5.1 Batch Size
Several parts which are transported and processed in bundles are referred to as a batch.
" Batch Size Several components of the same variant are manufactured together one after
the other and only then passed on to the next process step. Classically, batch sizes are found
in the production and forming of parts in presses. Several identical parts are produced
before a tool change takes place and a new, different variant is produced. The respective
production quantity corresponds to the batch size.
When products are traditionally produced according to batch sizes, this is done
according to the so-called push principle. In batch size production, products are not
produced according to customer requirements, but according to a fixed schedule. The
produced quantities are stored until a customer orders and calls them off from the
warehouse.
" Push Principle A traditional or classical production, which is based on central produc-
tion planning and control. The material is received more or less punctually based on
production orders from an upstream process and transported on to a downstream process
after processing. This happens regardless of whether the downstream process needs this
material immediately or not. This principle leads to high inventories upstream of the
processes and the associated long lead times. The inverse is the pull principle (▶ Sect. 7.1).
Production planning according to the push principle controls production in batch sizes.
This also includes production of what the customer has not ordered. Thus, the type of waste
of overproduction arises directly, with the consequence of inventories that require storage
space. The production is confusing; areas are occupied with material that has been
purchased and on which value has already been added (semi-finished products). These
products have not yet been sold and have therefore not generated any sales. In addition, a
5.1 Batch Size 61
greater effort is needed for finding and moving materials. This form of production is called
order-related production or job shop production.
An additional problem of batch size production is quality delay. In the case of errors in
the current process, these usually occur on the entire batch size. Due to large quantities, it
can happen that the production errors are only detected at a later point in a subsequent
process or at the end of the process. In this case, all production parts must be reworked in
the warehouse or in a process. If good parts are mixed with bad parts in production or in the
material warehouse and traceability is no longer possible, additional sorting effort is
required. In extreme cases, the parts must be disposed of as rejects.
Traditionally, batch size production does not work according to real customer demand
but based on a forecast. Due to long lead times, production is not able to incorporate real
customer demand into the current process and finished goods are sold from stock. The
products have been pre-produced and stored in many variants. Goods with an expiration
date are problematic because if they are not sold at the designated time, they are worthless.
Promotions to sell such “stock goods” have little profit margins, especially when taking
into account the full cost rate including warehouse space as well as other factors. This raises
again the question from the beginning of this book: how are manufacturing costs reduced?
(▶ Sect. 2.3).
Business economics teaches that unit costs fall when unit numbers rise. Expensive
machines are only worthwhile when correspondingly high quantities are produced. From
this follows the business logic: “Only when the plant is running, and many parts are
produced, it is profitable.” However, money is only earned when the customer has paid
for the product.
The batch size can be calculated using Andler’s formula (Eq. 5.1) (based on Andler
1929).
rffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
2 Anual orders Ordering costsfix
Order quantityoptimal ¼ ð5:1Þ
Storage cost rate
The lean approach starts with the ordering costs and reduces them through shorter set-up
times. This improves the result for the lot size calculation (see ▶ Sect. 13.4). From an
economic point of view, a lot size is only worthwhile if the customer quantity produced
corresponds to the machine capacity. The question arises: When does this type of calcula-
tion correspond in reality?
Many examples and experiments show that in production, administration or household
it is not worthwhile to carry out work steps in batches.
Example
It is about the completion of mailable letters, starting with the folding of stationery,
enveloping, gluing, addressing and finally stamping. The processing takes place step-
by-step for batch size ten. The constant gripping and filing results in waste. If letter after
62 5 Flow
letter is processed over the entire process, the process flow is faster. Each individual
letter is completed sooner. This example shows how batch size is related to waste, lead
time, and faster customer delivery. Errors also have a greater impact with batch size
production. With individual processing, the first folding errors are noticed during the
first insertion. When processing by batch size, the error is only noticeable when all ten
letters have been folded incorrectly and do not fit into the envelopes. The necessary
reworking occurs ten times with the batch size. ◄
When looking at services and especially when people are involved in a process, the
difference between processing according to batch sizes can be seen.
Example
It’s about a visit to the doctor. How would the waiting patients react if they all had to go
to the registration desk at the same time? After that, everyone waits for his or her blood
to be given, the samples are evaluated and finally everyone waits again at the same time
for their appointment with the doctor. Follow-up appointments are then made for all
patients. The doctor has summarized his meetings and waits the rest of the day. Patients
were in the doctor’s office all day but had a high percentage of waiting time. ◄
The impact on turnaround time is clear to see. How the stocks of patients feel in such a
system is comprehensible.
Example
A good comparison is the situation in winter sports resorts: big cable car cabins with
batches and long waiting times compared to chairlifts with a continuous flow. ◄
The decisive factor is the optimization of the product flow and not of the individual
process. A comparison of both approaches in production is shown in ◉ Fig. 5.1.
In the optimum, we speak of “batch size one”. Takeda (2006, p. 59 ff.) calls this “one-
piece flow” (▶ Sect. 7.4). Necessary and basic prerequisite for this are stable processes, as
presented in the previous chapter (▶ Chap. 4). It can be seen that batch sizes lead to
inventories and hide unstable processes and problems. The consequences are high effort,
waste and costs.
Small batch sizes are not always worthwhile. In a press shop, it would certainly make no
sense to change and reset the press tools after every single part. This would result in only a
Spread batch production Flow production
1 2 3 1 2 3
Fig. 5.1 Comparison of distributed batch production and flow production

5.3 Production in Flow 63
few parts coming out of the machine. A stationary plant that does not produce would be a
waste. It is all about the economic measure, short downtimes and the smallest possi-
ble batch sizes. Set-up in cycles would be ideal. The topic of set-up is discussed in ▶
Sect. 13.4.
5.2 Layout
When the topic of flow is discussed, it is not only about the deficit of batch size that creates
inventory, but also about the layout of a process. The layout plays a crucial role in the
arrangement of processes. It is not only about better process transparency and clarity, but
also about shorter distances and less waste due to transports.
A factory that has grown over the years often does not have a clearly identifiable
material flow. The arrangement of a production in line during a planning and construction
avoids unnecessary handling as well as unnecessary transports between the individual
processes.
The arrangement of a production in the flow does not have to be “straight”. Circular
arrangements or a layout in the shape of a “U” are also practicable. Modern factories show
here diverse solutions for suitable layouts in the flow. Examples are the factory of the Smart
in Hambach in the form of a plus or the BMW factory in Leipzig, which is designed for
change.
5.3 Production in Flow
In an optimal layout, in which the products flow individually, there are advantages in
material supply. It is clearly recognizable to which station the material must be brought.
Processes in which everyone has to access every material no longer exist. On the assembly
line, which was brought into automobile production by Henry Ford, the material is
assigned to the station. Ford brought all the processes into one flow with the River
Rouge plant. From raw materials to the final product, the materials flow through the factory
and come together to form a vehicle.
Example
Inspired by automotive engineering, the Trumpf company moves its machine tools
through production on air cushions. The material and the information flow through the
assembly and thus reduce all types of waste of the previous job shop production.
Specialists take over the corresponding assembly scope with their tools and the material
at the respective station. This is also done in the case of time spreads due to different
variants.
64 5 Flow
Table 5.1 Comparison of the advantages and disadvantages of job shop production and the flow
production
Comparison Job shop production Flow production
Advantages • No downtime in case of machine • High transparency of material and
failures information flow
• Components only need to be
brought to a specific station
• High-capacity utilization of
employees
Disadvantages • High set-up times • Conveyer belt stoppages in the
• Low-capacity utilization of employees event of machine failures
• All components must be brought to the
individual workstations
The aircraft manufacturer Airbus pushes the aircraft ordered by customers one station
further every day. Airbus has recognized and deployed the advantages of flow
production. ◄
The advantages and disadvantages of the two different production methods are shown in
◉ Table 5.1.
With flow assembly, the lead time is shortened. There are no overhauls and customers
receive their ordered product on the agreed delivery date. Each customer gets his product
faster and does not have to wait for the processing of a whole batch together with other
customers.
Example
Two woodcutters have split firewood logs and want to collect and pile them
up. Collecting the logs one by one and placing them neatly runs haphazardly. Logs
fall down and sometimes there are waiting times because one is piling up and the other
has to wait behind. They switch their work to the one-piece flow principle. One picks up
a log at a time and throws it to the other to pile up. The flow is in time and without waste
from paths or other impediments. The process is faster, easier, smooth and ergonomic.
The principle is analogous to a bucket brigade for transporting water or moving
sandbags for dam protection. ◄
Another example that often causes disagreement is the so-called block wise processing
for traffic at tunnels. This is another issue that can be described with flow and batch size.
Example
First, the entire tunnel section is used from one direction. Afterwards, the total capacity
is used from the other direction. This seems to make sense if different quantities come
from the different directions and the capacities are to be adapted to the inflow.
Batch production One-piece flow
1 min 1 min 1 min 1 min 1 min 1 min

100 pieces 100 pieces 100 pieces 1 pieces 1 pieces 1 pieces
100 min 100 min 100 min 1 min 1 min 1 min
Cycle time of stations: 1 min Cycle time of stations: 1 min
Process time: 3 min Process time: 3 min
Batch size: 100 pieces Batch size: 1 pieces
Lead time: 303 min Lead time: 6 min
Fig. 5.2 Lead time calculation in comparison: batch production and one-piece flow
Translated to a batch size production in production and considering the criteria of

one-piece flow, it is recognized that most of the time is lost by waiting until the tunnel
is empty from one direction to let the other side through. ◄
From a lean perspective, block wise processing is neither correct in production nor in
road traffic. The ideal would be if the product could flow continuously, without stopping.
This would be the principle, like a continuous flow car wash, where vehicles are pulled
analogous to a conveyor belt and are washed and cleaned simultaneously, as they pass
by. Paint lines in automotive production operate in a similar manner. This represents the
one-piece flow in perfection and has been implemented in automobile assembly: There are
vehicle bodies on a conveyor belt, which are worked on as they pass by.
Production according to the flow principle is characterized by minimum throughput
times, low inventories, small transfer quantities, short waiting times and a transparent
material flow (◉ Fig. 5.2).
In flow manufacturing, the focus is on the overall process rather than the individual
process. Besides the product, the employees and the information should flow (Rother and
Harris 2001, p. 9).
The Following Questions are Relevant in the Topic Area of Flow
• Are the processes in a flow?

• Does the product flow continuously?
• Is the layout of production oriented to the product process?
• Is the right information flowing to the right places at the right time?
66 5 Flow
Questions on the Subject of Batch Size
• Are batch sizes necessary?

• Are necessary batch sizes defined as small as possible?
• Is there any effort involved in searching and sorting?
• Have there been no actions due to defective parts across the process chain?
5.5 Summary
Summary on the Subject Flow

• A batch is several identical components that are transported and processed in
bundles. The production quantity corresponds to the batch size.
• The classical batch-size calculation is carried out using Andler’s formula.
• Batches are manufactured according to the push principle. Production takes place in
the warehouse based on a preview. This results in increasing stocks and lead times.
• Quality delay means that when defects occur, the entire batch is usually affected.
• The optimal batch size in the lean context is one. This results in the one-piece flow.
This is not always practical, e.g., in a press shop with complex tool changes.
• The layout plays a decisive role in the arrangement of processes. A layout “in flow”
results in process transparency, clarity, shorter distances and fewer transports.
• Production according to the flow principle has minimal throughput times, low
inventories, small transfer quantities, low waiting times and a transparent material flow.
• The focus of flow manufacturing is on the overall process and not on individual
processes. The products, information and employees should “flow”. ◄
Questions
• What problems can arise with production according to the push principle?
• What is the basic requirement for a production in a one-piece flow?
• What are the advantages of production in flow?
• What are the advantages and disadvantages of job shop production and flow
production?
References
Andler K (1929) Rationalisierung der Fabrikation und optimale Losgröße. Oldenbourg, Munich
Rother M, Harris R (2001) Creating continuous flow – an action guide for managers, engineers and
production associates, version 1.0. The Lean Enterprise Institute, Brookline
Takeda H (2006) The synchronized production system – going beyond just-in-time through kaizen.
Kogan Page, London
Tact
6
Heartbeat is the tact.

Music title of the group Münchener Freiheit
Overview
Who sets the pace of a process chain and how are the individual processes coordi-
nated with each other? These questions are addressed by the topic of tacting with the
definition of the customer tact and the tact time out of different processes.
Visualizations and calculations support the balancing of different processes. The
core problem of a process chain is the bottleneck.
Knalsch GmbH: Bottleneck Station

There is a new topic. Because now suddenly problems become visible, which were
not noticed so far. The gear assembly station does not manage to process the planned
quantity of products, especially with the Knalsch 3000. In the morning, everything
was still fine. There had been problems in the upstream production with the plant
(next problem).
(continued)

https://doi.org/10.1007/978-3-658-36087-0_6
68 6 Tact
Now the parts are piling up in front of the assembly station. At the other stations
there is apparently boredom due to missing parts. This is noticeable by the loud
chattering of the employees with each other.
If it were not for the fact that the best employee, Alfons Hauberle, was already on
duty at the overloaded station, one might think that the problem lay in staff
qualification.
6.1 Bottleneck
The bottleneck is located where process chains come to a standstill and parts accumulate.
" Bottleneck The slowest process in a process chain. It determines the output and
productivity.
In his novel “The Goal”, Goldratt describes how the bottleneck was optimized on a Boy
Scout hike (Goldratt and Cox 2004, p. 102 ff.). Herbie, the slowest boy, was freed from the
ballast of the backpack and placed first at the head of the hiking group. He set the pace and
the group stopped pulling apart. This drifting apart can be observed in systems that are not
coordinated.
Fluctuating piece count outputs generate inventories. Bottleneck situations occur both at
machines and at employee stations. While bottlenecks on assembly lines become visible at
an early stage through drifting or stopping of the production line, the problems are hidden
and not easily recognizable in autonomous individual systems. Causes for the bottlenecks
can be caused by a cycle time that is too long or by unstable machines and process
fluctuations. The fluctuations can have their cause in cycle times of the machine, in quality
problems or malfunctions and machine failures.
Example
A bottleneck can be compared to a reservoir in a river. The water is dammed until it can
flow away in a regulated manner. If the outflow is closed, the lake continues to fill. After
reopening with limited outflow of water, the inflow can no longer be compensated. The
reservoir has a higher water level. Regulation of the water level to the original, lower
level, only takes place when the inflow is reduced. The stocks between the processes in a
production behave in a comparable way. They increase when the machine fails after the
stock and decrease when the machine fails before the stock. ◄
The aim is to optimize or relieve the bottleneck. Other improvements to other produc-
tion processes are not effective as long as the bottleneck remains. Identifying and
6.2 Customer Tact Time 69
eliminating the bottleneck is the challenge of an analysis and, subsequently, of

optimization.
6.2 Customer Tact Time
Who sets the pace for a production? The answer must be the customer.
" Customer Tact Time Cyclical time per product after which it leaves production. It is
calculated from the quotient of the available production time by the sales order quantity.
The customer cycle sets the rhythm of production, like a heartbeat or a metronome. The
available production time is divided by the leveled sales order quantity to give the customer
cycle (Eq. 6.1). Dividing the production time by the demand gives the time per part.
Production time
Customer tact time ¼ ð6:1Þ
Sales order quantity
Example
In the production time (networking time) of 400 min, 300 parts are to be produced
(Eq. 6.2).
400 min 24, 000 s s

Customer tact time ¼ ¼ ¼ 80 ð6:2Þ
300 parts 300 parts part
The customer cycle is the maximum time that each process may take. If the time is above
this, it is a bottleneck. If the time is less, a waiting time is created. If this waiting time is
used for a further production of parts, an overproduction results since the required demand
is not met. In practice, some allowances are made for possible breakdowns, failures and
other problems. The production cycle is accelerated somewhat as a so-called forerun.
The challenges of production at the customer’s pace are to respond quickly to problems,
eliminate the causes of unplanned downtime, and achieve low changeover times.
Example
In the waiting room of a doctor or in the queue at a cash register, some people intuitively
use the customer tact time. They estimate how long it will take until it is their turn via the
average time after which a patient is called or the process at the checkout is completed
70 6 Tact
(customer tact time). They multiply this by the number of people waiting before. The
result is a waiting time until it is their turn. ◄
The reciprocal of the customer tact time as the number of parts per unit time is the
production rate (Eq. 6.3):
Munufactured parts
Production rate ¼ ð6:3Þ
Observation period
The production rate is less frequently considered than the customer rate.
6.3 Line Balancing
To run individual, interrelated processes synchronously in the same tact time, a line
balancing is necessary. All processes should be aligned with customer requirements and
thus with the customer tact time. The goal is for all processes to be as close as possible to
the customer’s tact time, but never above it, and, if possible, flexible enough to be adjusted
to other customer tact times.
When considering process times, the cycle time is always measured. In other words, the
time for a complete process. The time is measured from a starting point until the same point of
the subsequent process (starting point) is reached again. A common mistake is to record the
time from start to finish, but not to consider the return movement of tools or even the human
movement back to the starting point. The cycle time is therefore always a complete run.
Both machines and people work in cycles. Whereas with machines times can usually be
measured without any problems, with people the consent of the person being observed is
required, as well as the involvement of employee representatives and union. Normally,
appropriate agreements have already been made in advance. Time measurement for
optimization is not a measurement for wage determination (piecework wage). To avoid
different working times for different employees, procedures have been introduced for the
analysis of work processes, which specify times for different movements and actions.
These are made available in corresponding timetables. Known are the predetermined times
according to “Methods-Time Measurement” (MTM). Methods-Time Measurement is a
process-time analysis.
When processes are systematized and balanced, wastes must be eliminated from the
process beforehand, otherwise the unnecessary and non-value adding processes will be
systematized and scheduled as well.
Eliminating unnecessary waste is the first step. Then, starting with the first process step,
the processes are filled with activities until the customer tact time is reached (Takeda 2006,
p. 112). The priority graph of the product must be observed, i.e., no activity step may be
pulled in front of another that conditions the previous one. The priority graph of a product
can be determined when the product is disassembled, i.e., assembled in reverse order (VDA
2015, p. 10 ff.).
6.3 Line Balancing 71
1. Elimination 2. Execution 3. The result

of wastes of line balancing of line balancing
Fig. 6.1 Process steps of the line balancing
Example
First, a circuit board must be fixed in the housing before the housing is closed by
screwing. Assembly is not possible the other way round. ◄
Afterwards, the line balancing is continued with the next process step. This is repeated
until all activities have been completed. The process steps of the line balancing can be seen
in ◉ Fig. 6.1.
The procedure is the same for a change of the customer tact time, i.e., for adjustments
due to a change in sales. The number of processes changes. This minimum number of
employees, processes or process stations can be calculated from the customer tact time and
the total process time (Eq. 6.4). The upper Gaussian bracket in the formula represents an
integer rounding up.

Total process time
Number of processes ¼ ð6:4Þ
Customer tact time
Example
An assembly process that requires a total process time of 25.5 min is used as a
calculation example. The customer tact time is 80 s, as in the previous example. The
calculation follows (Eq. 6.5):

25:5 min 1530 s
Number of processes ¼ ¼ ¼ d19:125e ¼ 20 ð6:5Þ
80 s 80 s
Consequently, at least 20 process stations or cycles are required to manufacture the

product. ◄
72 6 Tact
Fig. 6.2 Cycle time diagrams: line not balanced and correct line balancing
The result can deviate further upwards, as it cannot be assumed that the individual
processes are always completed exactly at the customer tact time. Further times are shifted
to the subsequent processes.
In the case of line balancing, the last process is often no longer completely filled up to
the customer tact time. This results in an unused waiting time until the end of the process
cycle. This is acceptable at this last process station. As further optimizations are found,
activities are further reduced at this point until this process is no longer needed. Processes
are replenished as close as possible to the customer tact time so that there is no waiting time
or process pauses (◉ Fig. 6.2).
Work content is therefore not evenly distributed, as otherwise waste exists at all stations
in the form of waiting time. The danger of overproduction is inevitable in this case. The last
station can possibly take on additional tasks in the environment, so that the waiting time is
further reduced until a solution is found. If manual stations are involved, a very flexible
employee is often positioned here. In Japan, this is called “shojinka” (cf. Oeltjenbruns
2000, p. 51). The waste is summarized with this employee. Improvement activities are
focused on the activities at this station. The flexible employee can be used in other places if
the station is eliminated.
As already mentioned in the chapter about flow (▶ Sect. 5.1), the issue of setup in cycle
time is essential for lean production. The importance of this feature can be seen in line
balancing. This makes it possible to produce any variant in any tact time without extending
the tact or interrupting production for changeover.
From a superficial point of view, working in cycles seems to be exhausting and stressful
for employees. This is not the case with good line balancing (without condensation of
activities) and with waste-free processes. It is much more stressful when old and new
problems repeatedly arise, when nothing of value can be added, or when batch sizes pile up
in front of the process and the worker himself feels like a bottleneck.
It is understandable, for example, that it is more pleasant to accept and process mails
directly after receiving them than to collect a large amount, must work through it and, due
to missing information, open it again at a later time in order to answer it finally. This is
associated with stress. So, a good balancing has nothing to do with a so-called hamster
wheel, but with a smooth, good and ergonomic workflow. What can certainly increase is
the demand on the ability to concentrate.
6.4 Visualization of the Line 73
New or weaker employees are placed in the middle stations during a process chain. This
allows the experienced process neighbors to assist before and after the station, like assisting
a weakened or injured person.
To make waste visible for the next optimization and to identify the bottleneck, Taiichi
Ohno used the methodology that all employees who finished their work cycle raised their
hands until the next cycle started. Thus, the waste became transparent, and it could be
optimized again.
6.4 Visualization of the Line
Ideally, the line balancing should be displayed graphically. A colored stacking diagram is
suitable. The colors should be chosen analogously to the type of activity: Value added
(v) in green, the necessary but not value adding activities (n) in yellow and waste (w) in red.
The display type is called line balancing chart because it transparently visualizes the times
for all stations in production (◉ Fig. 6.3). In Japanese, the overview is called “yamazumi”.
This word contains the word “yama” for mountain. “zumi” means to pile up.
All manual activities are entered on the line balancing chart in a stack with the time.
When the stack diagram is created, the current status, i.e., the provisional best process, is
described. This visualization sets the optimization process in motion. The determination of
the times can be measured for existing or known processes by means of time recordings or
analyzed with the Methods-Time-Measurement procedure. In the case of new processes or
new planning, it is advisable to use a time analysis method. The customer cycle is displayed
with a horizontal line at the corresponding time.
To make further optimizations and to be able to work actively on the blackboard,
colored magnetic tapes are suitable, for example. They are cut in the appropriate length
100 n
v v v v v v v w w v n v
n n v
n v v n
w v
v v
v w
v n n v n
50 v w w
v w v
w n w v
w n
n
n v
v v
v
w w n n n
w w v w v w v w
0
v = value-adding, n = necessary, w = waste
Fig. 6.3 Yamazumi board—line balancing chart

74 6 Tact
analogous to the time and labeled with the activity. In this way, they can be quickly moved
and adjusted.
In the figure of a line balancing chart (◉ Fig. 6.3), further variants of the line balancing
are shown. At the third and fourth stations, product variants can be seen where either one or
the other option is produced. At the last station it can be seen when an option only occurs in
some variants. In this case, the variant even exceeds the possible customer cycle. Only by a
good alternation with other variants, which remain below the cycle time, a production in
the average customer cycle is possible. The employee in such an assembly station then
drifts out of the cycle and catches up later. This results in variability in the process, which
should be avoided if possible. In the case of batch sizes or the same variants above the tact
time, a bottleneck would arise at this point and production would come to a standstill.
Digital solutions are possible for the line balancing chart. In spreadsheet programs, the
height of the row can be set analogous to the duration. For a workshop, these can be printed
out as paper strips and arranged above and next to each other in the line balancing chart.
6.5 Special Features and Cycle Time Calculations
A special feature arises when a work process cannot be completed in the customer tact time
because the activity cannot be further divided into smaller steps. In such a case, the term
“multiple tact” is used. The station is assigned a multiple of the tact and a multiple amount
of manpower is used.
Example
If, for example, a process requires twice the tact time, the process is scheduled as a
“two-tacts” process and assigned two people twice. The first employee only processes
every second product. The product in between is handled by the second employee. In
this way, a part from both processes is produced alternately after every second tact.
Thus, at the next station, which again works in the customer tact time, one part is
available for each cycle. ◄
If more than two cycles are required, the number of stations, manpower and standard
stock in circulation increase analogously. However, more than twice the tact time
(two-tacts) should not be used. Processes with multiple cycles are always inflexible and
inhibit optimization. The reasons for a multi-cycle should be investigated and solved as
soon as possible. In most cases, the problem lies in a complex product design (cf. ▶
Chap. 17).
As already shown in the topic line balancing chart with the help of variants, there are
further peculiarities in clearing (▶ Sect. 6.4). For example, the probability of occurrence
must also be considered for product variants that require different amounts of time.
The simplest possibility would be to perform a line balacing, which is oriented to the
variant with the longest total cycle time. The consequences are waiting times for other
6.5 Special Features and Cycle Time Calculations 75
variants. In the case of a high number of variants, there would be more waste in the process
due to the waiting times. With an increasing number of variants that can be added up, i.e.,
several options that can be ordered by the customer, the system becomes increasingly
unproductive.
An average solution must be found. This works if a station is line balanced to the
customer tact time on average and the waiting time for no option is compensated by the
working time when an option occurs. The employee drifts out of the customer tact time but
can compensate for this with the next job that does not require the option.
Variants are collected in production planing and divided in such a way that bundling of
several time-consuming orders in production does not occur if possible. The production
control of the orders in a leveled sequence is essential in order not to overload the system.
Empirical values from the past or calculations by sales form the basis for determining
the variant distributions. The proportions or the quotas must be as close as possible to the
real order distribution, because if the ratio is incorrect, there is a risk that the cycle times in
production will not be sufficient. This would lead to disruptions in production. The
assembly ratio of the occurrence of the option is considered in the cycle time calculation
(Eq. 6.6).
Process timeOption ¼ Production timeOption Assemby ratioOption ð6:6Þ
The average cycle time for the process is calculated from the process time for the
standard process and the process time for the option, considering the assembly rate
(Eq. 6.7).
Cycle timeAverage ¼ Process timeStandard þ Process timeOption ð6:7Þ
If the respective cycle time and the associated assembly rate are available for each
variant, the cycle time at a station can also be calculated using the weighted arithmetic
mean (cf. Eq. 8.1 in ▶ Sect. 8.3).
Example
The customer tact time is 80 s and the cycle time for an assembly operation on each
product is 60 s. An additional option with a production time of 45 s is added. The option
is installed in 40% of the orders. The assembly rate of the option is therefore 0.4. The
remaining 20 s can be used for this option at the station. It must be checked whether this
works on average. The 45 s production time must be multiplied by the probability of
occurrence of 40% (assembly rate ¼ 0.4) (Eq. 6.8).
Process timeOption ¼ 45 s 0:4 ¼ 18 s ð6:8Þ

76 6 Tact
The result for the process time to be scheduled is 18 s for this option. Since this is less
than the available 20 s, the work content can be integrated into the station. If the
assembly rate changes, the line balancing must be adjusted and it must be checked
that the system does not exceed the customer tact time.
In the present example, the average cycle time (Eq. 6.9) gives the following result:
Cycle timeAverage ¼ 60 s þ 18 s ¼ 78 s ð6:9Þ
Further formulas with different variables follow for the calculations: Calculating the
maximum possible production time for the option when the available process time in the
process flow and the assembly rate are known (Eq. 6.10) and finding the maximum possible
assembly rate if the process time and the production time are available (Eq. 6.11).
Process timeAvailable
Production timemax ¼ ð6:10Þ
Assembly rateOption
Process timeAvailable
Assembly ratemax ¼ ð6:11Þ
Productio timeOption
Example
The already known values are used for the calculations.
20 s
Production timemax ¼ ¼ 50 s ð6:12Þ
0:4
An option could be scheduled with a production time of up to 50 s (Eq. 6.12).
20 s
Assembly ratemax ¼ 0:444 ¼ 44:4% ð6:13Þ
45 s
The option may occur in a maximum of 44.4% of the cases (Eq. 6.13). ◄
Another principle of lean production is to introduce the variant as late as possible in the
process. This allows identical parts to be produced at the beginning and any process
variability does not occur until a later process step. This helps keep the flow stable.
Unfortunately, with the complexity of products today, it is almost impossible to create
the variant only at the end. This is possible to some extent by means of customization,
which simply involves installing different software or mounting the housing in an appro-
priate color at the end. Nevertheless, the principle of late variant creation should always be
6.6 Dealing with Job Cuts 77
followed. Even if a variance exists in an early production phase, it should be kept as small
as possible.
Example
In automotive production, attempts are made to keep the body variant as small as
possible. Through different variants, such as right-hand drive or left-hand drive and
three roof variants (without sunroof, with sunroof or panoramic roof), the number of
variants could be limited to six possibilities. In the paint shop, these six possibilities are
combined with the paint colors and multiplied. It is not until vehicle assembly that the
specific customer order is made and with it the customer-specific variance. ◄
Another topic of special line balancing is the scheduling of activities in the environment
of the workstation. For the sake of completeness, these should be addressed here. The
so-called environment activities are work steps that are scheduled proportionally in a
process cycle, but only occur once after several cycles.
Example
Five seconds more are scheduled for each of 20 cycles so that a longer process can be
carried out once every 20 cycles. This can be a load carrier exchange, the replenishment
of material or the disposal of waste. For 20 cycles with five additional seconds each, this
should take a maximum of 100 s. ◄
However, such processes should be avoided, if possible, because they introduce

variability into the process. This leads to further problems and deviations from the
standard.
6.6 Dealing with Job Cuts
What is to be done if fewer employees are needed after line balancing? It can be seen that
the planning of the production was already not optimal here. Regardless of this, the
continuous improvement process results in a further reduction of process steps.
It is important to communicate what will happen to the employees who become
redundant even before the optimization. The corporate culture of a value-oriented company
is anchored in a mindset in which no employee needs to be afraid of a job reduction and the
associated job loss. Because if there is a lack of clarity in this regard, those affected will not
contribute ideas to the optimization process and will not participate. An employee-
supported optimization process would be called into question, sustainably disrupted, and
ultimately no longer exist.
In the sense of the eighth type of waste, personnel reduction programs with layoffs or
severance payments are not sustainable. However, sustainable processes are the goal of a
lean implementation. In severance programs, the good employees who are offered a new
78 6 Tact
job on the labor market leave the company first. Most of the time, these are the people
whose knowledge and experience are sought and needed in other companies.
Of course, employees who have been made redundant should not “twiddle their
thumbs” in their own company either. Therefore, viable and sustainable solutions are
required. The following list shows the possibilities for deployment:
• With corresponding order situation: produce higher quantities

• Develop and produce new products, new technologies
• Insourcing of value-adding activities and improvement of the depth of added value
• Flexibility increase
• Shift time reduction
• Takeover of logistics contents, e.g., commissioning and provisioning
• Use in problem-solving processes to generate solutions
• Establish or serve as a hancho (team leader) at the lowest level of management (▶ Sect.
29.1)
• Lean team (support functions): TPM team, set-up team
• Improvers as defined in the improvement kata (▶ Sect. 11.4)
• Deployment as improvement manager, setting up a kaizen team for the improvement
process (▶ Sect. 29.2)
• Set-up or use in a Kaizen workshop (▶ Sect. 29.3) for LCIA solutions (▶ Sect. 20.2)
• Employment in decentralized functions in training, an internal consultancy or as a
visitor’s guide
The right approach using lean does not destroy jobs (▶ Sect. 27.2). Toyota has not laid
off anyone in the past (Köhler 2005). Nor does lean mean having to work faster. Lean
enables a company to grow and improve its profitability (▶ Sect. 23.1). It is about working
smoother and securing jobs. This way of thinking, which sees people as the central element
of a production system, is dealt with in a separate chapter in the second part of this book (▶
Chap. 27).
These Expert Questions Arise on the Subject of Tact
• Is the line balancing visualized?

• Does the customer place the order?
• Are the processes balanced evenly and synchronously?
• Is the bottleneck known?
• Where are the bottlenecks?
6.8 Summary 79
The Following Expert Questions Relate to the Topic of Jobs
• Is it anchored in the corporate culture that optimizations will not lead to job losses?
• Are there any plans for the use of available staff?
• Are measures for growth of the companies implemented (increase in number of units,
insourcing)?
6.8 Summary
Summary on the Subject of Tact

• The bottleneck is the slowest process in a process chain. It determines the output and
productivity of a process chain. Normally it is slower than the customer tact time.
• The goal is to optimize the bottleneck and thus relieve it.
• The customer tact time is the production time divided by the order quantity. The
customer tact time is specified in time per part.
• Line balancing means aligning the processes with the customer tact time. The goal is
to be as close as possible to the customer tact and never above it, otherwise a
bottleneck will occur.
• The consent of the persons affected, and the involvement of the employee
representatives are required for time recording for employees.
• Before line balancing, wastes must be eliminated. During the line balancing, the
processes are filled up one after the other until the customer tact time is reached. The
priority graph must be considered.
• Processes with multiple cycles are inflexible and hinder optimization. More than
twice the cycle time (two-tacts) should not be planned.
• When line balancing with variants, production time and assembly rate must be
considered.
• The variants should be planned as late as possible in the process chain.
• Before optimization, it must be communicated what will happen with employees
who become obsolete. Otherwise, the employees will not contribute.
• Layoffs are not a sustainable optimization measure.
• Lean is not a savings program. It is a growth program. ◄
Questions
• What are the causes of bottlenecks?
• What are the challenges of production at the customer’s tact time?
• Who sets the pace in a production and why?
• How is the customer tact time calculated?
• How will personnel affected by a line balancing be handled?
80 6 Tact
• What is the procedure for line balancing when product variants have different process
times?
• Calculation task: For each product variant of the Knalsch 3000, the customer tact
time has to be calculated.
– Product variant A: Requirement per day: 6 parts, working time per day: 6 h
– Product variant B: Requirement per day: 522 parts, shift time per day: 8 h incl.
45 min break
– Product variant C: Requirement per day: 25 parts of the variant “yellow” and
35 parts of the variant “blue”, working time per day: 7 h, minus changeover times
(2 times 30 min per day)
– Product variant D: Requirement per day: 1200 parts, working time per day: 14 h
– Product variant E: Demand per year: 48,000 parts, working time per year: 3000 h,
two shifts/day
The solutions to the calculation task can be found at the end of the book (▶ Sect. 33.1).
References
Goldratt EM, Cox J (2004) The goal: a process of ongoing improvement, 3rd edn. North River Press,
Great Barrington
Köhler A (2005) Wir entlassen niemanden. WirtschaftsWoche 15:98
Oeltjenbruns H (2000) Organisation der Produktion nach dem Vorbild Toyotas – Analyse, Vorteile
und detaillierte Voraussetzungen sowie die Vorgehensweise zur erfolgreichen Einführung am
Beispiel eines globalen Automobilkonzerns. In: Bracht U (ed) Innovationen der Fabrikplanung
und -organisation, vol 3. Shaker, Aachen
Kogan Page, London
VDA (2015) VDA 4812: Einheitliche eHPV-Bewertung in der Fahrzeugzerlegung. Verband der
Automobilindustrie (Ed), Berlin
Pull
7
If you’re late, the customer punishes you.

modification after Mikhail Gorbachev
Overview
After the production works in flow and an even workload is achieved by the customer
tact time, a closer look at the logistics and the control of the material flows between
the processes follows. The use of kanban is the key to production according to the
pull principle, which replaces push production. The linking of material flow and
information flow creates the basis for an optimized value stream.
Knalsch GmbH: Missing Material

Things are going so well that Isabell and her colleague can no longer deliver the
material in time with the forklift trucks. While there is too much material at some
stations, there is a shortage at others. Since production is running very well thanks to
synchronization and a better layout, the problem must obviously be the material
supply.
Claus Maas, the logistics manager, takes on the problem together with Alsch.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_7
82 7 Pull
“Claus, can’t you also deliver the material in flow, like the process steps do?
Preferably in such a way that the material is there at exactly the right moment when
you need it,” says Dr. Alsch.
“Yes,” replies Claus Maas, “but that’s easier said than done. We can’t be present
and deliver everywhere at the same time.”
7.1 Just-in-Time
A closer look at the Toyota Production System reveals that it consists of two main elements
or pillars: the jidoka principle (▶ Sect. 9.2) and the just-in-time principle. This section
deals with the just-in-time pillar of the production system, focusing on logistics and the link
between the flow of materials and the flow of information. The idea to follow the philoso-
phy of just-in-time came from Kiichiro Toyoda, the son of Sakichi Toyoda (Toyota 1995,
p. 179). The idea of just-in-time came to Kiichiro after he missed an on-time train by one
minute while traveling in London. He also used this story to introduce just-in-time to the
employees in the factory (Sato 2008, p. 66).
Various wastes are avoided by optimizing the logistics processes. Inventories are to be
reduced, with a simultaneous increase in variance. With more variants in a manufacturing
process, inventories also increase, including variants that are rarely called off. This leads to
the idea of producing or delivering only what has been ordered. The basic idea is to produce
or supply products only if they are needed, when they are needed, where they are needed,
and in the exact quantity needed.
" Just-In-Time (JIT) Principle that refers to the requirements of processes in which exact
time specifications must be met. In procurement logistics, the following applies: The
procured goods should be at the right place at the right time in the right quantity in the
right quality. JIT requests are determined by the customer, so this is the pull principle. The
idea is to be able to react quickly to market needs. In the Toyota Production System, Just-
in-time is one of the two main pillars of the system.
The definition of just-in-time results in the “5Rs”: the right product or the right service at
the right time, in the right quantity, in the right quality, at the right place. Sometimes we
also speak of “6R”, with the addition of “at the right price”. This means that the issue of
costs to be reduced is also considered.
The principle acts directly on and with the customer and according to his needs. Just-in-
time thus does not follow the business rule, which assumes that a plant should produce as
many products as possible to meet unit costs and other quantity degressions. This unnec-
essarily leads to the wasteful type of overproduction.
7.1 Just-in-Time 83
The principle behind Just-in-time is consumption impulse. Whenever something is

consumed, it is replenished. This is the idea of the pull principle. Taiichi Ohno brought
the idea to Toyota from the USA after looking at supermarkets there and finding everything
that was needed. At the same time, what was taken out was replenished in the same
quantity. The outgoing goods were the same as the incoming goods. The comparison to
a well-managed warehouse was not far away. This idea gave rise to the Kanban concept (▶
Sect. 7.2) based on the pull principle, also known as the “supermarket principle”.
" Pull Principle In contrast to production according to the push principle (▶ Sect. 5.1).
Products are only produced or transported if the customer accepts these products at the end
of the process chain. The rule is: only produce what the customer wants. The removal at the
end of the process chain triggers an impulse. By taking or “pulling” the product (from the
end), the information is passed on to the process chain (to the front). Only what has been
consumed is replenished. If there is no demand, the process chain stops. Overproduction
does not take place.
The pull principle can be demonstrated using a chain. Pushing does not work because
the chain links push together (like stocks). If, on the other hand, the chain is pulled, one
chain link after the other is pulled along the entire length of the chain (◉ Fig. 7.1).
Fig. 7.1 Chain according to the principles push (left) and pull (right)
84 7 Pull
7.2 Kanban
The Japanese term kanban stands for the flow of information in the pull principle. The term
is also sometimes used as “kamban”.
" Kanban Japanese word for card (◉ Fig. 7.2). It serves as an information element for
signaling and as a communication tool for coordinating production and parts transport
between processes. Information in the form of a card triggers an ordering process for
replenishment from a stock (supermarket). The circuit is used both internally within the
company and externally with suppliers. Information and material flow are connected by
small, self-controlling circuits.
Kanban is a visual tool and a standard:
• Each container has a kanban.

• The material quantity per container and therefore per kanban is fixed.
• Only the material quantity noted on the kanban is produced or withdrawn.
• The downstream process gets the parts from the upstream process.
• Only good parts are passed on.
• Multiple cards may not be accumulated in one process.
• The number of kanban in the system must be checked regularly.
In the Kanban method, other signaling options are used in addition to cards. Different
forms have been established for many processes:
• Sight kanban (clear area, flag, golf ball),

• Container kanban (load carrier),
• E-kanban (electronic, button),
• Logistics kanban,
KNALSCH GmbH KANBAN
Storage A17-2 Point of use:
Part Gear wheel 42 mm, 40 Z. Hall 1
Part number 2734 4 Anlage 2
Quantity 50 Rack 10
Container KLT A Card 2 of 4
Fig. 7.2 Example of a kanban (card)

7.2 Kanban 85
• Transport kanban,
• One-time kanban (printed),
• Supplier kanban.
Example
A tube of toothpaste is to be obtained in the household. If the tube of toothpaste has an
additional outer packaging made of cardboard, the cardboard tab of the packaging is torn
off when a new package is opened and added to the shopping list. The next time the
toothpaste is purchased, the used toothpaste is replenished using the cardboard tab and
stored at home as a supply. When the tube in use is empty, the process starts again. ◄
◉ Table 7.1 gives an overview of the advantages and disadvantages of kanban.
" Supermarket A stock with a regulated inventory. The maximum inventory is defined.
Another term is “store”. In a material flow, the supermarket in combination with kanban
serves the independent control and subsequent delivery according to the pull principle.
The order is triggered by customer demand against the direction of material flow. The
information moves to the goods in the supermarket and the goods are delivered. During the
manufacturing process, the supermarket also reorders its goods using the pull principle and
kanban, thus triggering subsequent production.
There are two types of kanban: Withdrawal kanban and production kanban (◉ Fig. 7.3).
Withdrawal kanban triggers a pull in the supermarket after consumption (1). The with-
drawn goods are delivered to the consumer (2). The production kanban triggers the
upstream process (3) to replenish the supermarket (4).
Table 7.1 Advantages and disadvantages of kanban

Advantages Disadvantages
• Transparency in the process • Disturbances in the upstream process affect the entire
• Shorten the material and downstream process chain
information lead time • Not applicable in case of strongly fluctuating demand or
• Harmonization of the material production time
flow • Requires great discipline
• Reduction of inventory and
storage space
• High readiness for delivery
• Reduction of the load carrier
quantity
• Shortening the reaction time
86 7 Pull
Production kanban Withdrawal kanban
3
Kanban
4 Supermarket 1
2
Supplier Transporter Factory
Material flow
Information flow
Fig. 7.3 Kanban cycles: withdrawal and production
Example
The process can be imagined as follows: The material of a container in the shelf of an
assembly station is consumed. The empty container is placed on the upper shelf, the
return for the empties. A new container with a card (withdrawal kanban) slides down the
shelf. The card is placed in a rail on the side of the shelf and slides down to the logistics
side. When logistics passes by on a delivery trip with a tugger route train, it takes the
empties and the card with it. At the supermarket, the empties are unloaded, and the
tugger route train is loaded with the material that was requested via the collected cards.
The goods, together with the card, are placed on the shelves at the workstation during
the next delivery tour with the tugger route train. On this tour, new empties are collected
again with the corresponding cards. The material missing in the supermarket is
reordered with cards (production kanban) from the supplier. The material is replenished
and delivered with the cards (production kanban) to the supermarket for
replenishment. ◄
If a minimum number of parts is required in the production process for new production
and production is batch size oriented, the cards are collected on a heijunka board (▶ Sect.
4.5) and placed on top of each other in color-coded areas (◉ Fig. 7.4). The green area is not
critical. If cards are inserted into the following yellow area, the reaction time must start to
prepare the production order (setup time). If a certain number of cards is present in the
yellow area (marking of the critical quantity), the production of the parts is started. If the
cards enter the red area, the supply chain is no longer properly supplied, and the safety
stock level is undercut. An immediate reaction with special measures is necessary.
7.2 Kanban 87
Fig. 7.4 Example of a Heijunka

board with plug-in cards and
color-coding for production
scheduling
Example
Delivery according to the supermarket principle is operated by most fast-food
restaurants. A shelf between the kitchen and the service area functions as a supermarket
(◉ Fig. 7.5). If burgers are taken from the shelf and sold, new burgers are reproduced in
the kitchen in suitable batch sizes and placed back in the shelf. On the shelf, the FIFO
principle is followed. Since hot food is involved, it is defined after which time the
products are no longer saleable. This is a disadvantage of the pull system. Although the
goods are immediately available, it is up to the calculation and system design whether
there will be a bottleneck or unsold goods must be thrown away in the end. Since the
products are ready and the focus is on delivery time to the customer, delivery is
immediate.
This inspired one provider to make bets with its customers that the order would be
completed within one and a half minutes. Only for special orders and goods that were
not in stock in the supermarket, customers could win a voucher for a drink.
In the meantime, fast food restaurants are also switching to the principle of one-piece
flow. The products are prepared in a short lead time according to the customer’s
88 7 Pull
Fig. 7.5 Flow rack as supermarket between kitchen and service area in a fast food restaurant
individual needs only when they have been ordered. The supermarket is disappearing
and with it the disadvantage of sometimes having to throw away products that have been
stored for too long. ◄
There are two main requirements for the kanban process. First: Delivery and post-
production must take place in short delivery times. Second: The number of variants should
be limited so that the storage area in the supermarket does not become too large.
For these processes, it is essential to know the replenishment lead time, otherwise the
kanban system cannot be calculated correctly.
Equation 7.1 is used to calculate the number of cards in a single kanban cycle (supply or
production).

Consumption Replacement time
Number of cards ¼ Safety factor ð7:1Þ
PartsLoad carrier
The number of cards corresponds to the rounded result (Gaussian bracket, see ▶ Sect.
6.3) for the required number of cards in circulation. Consumption is equal to the maximum
consumption per unit of time within the period considered or the average consumption plus
the standard deviation to allow for variations. The replenishment time is the total time
elapsed from the time the card is dispensed until it is resupplied and made available at the
point of consumption (supermarket or production site). The variable “parts” with the index
“load carrier” corresponds to the number of parts per Kanban container. The safety factor is
added to compensate for a possible supply gap due to process variability. It is determined
individually and varies depending on the process. The safety factor can be added as a factor
or percentage. It is also possible to specify an absolute quantity in parts (Eq. 7.2) or a
number of containers (Eq. 7.3). These are to be added up.

Consumption Replacement time Safety stock
Number of cards ¼ þ ð7:2Þ
PartsLoad carrier PartsLoad carrier
7.3 Kanban Environment 89

Consumption Replacement time
Number of cards ¼ þ Load carrier Safety ð7:3Þ
PartsLoad carrier
Since stocks can also be specified in a range of coverage as a time, the safety stock can
be specified as a time for the stock range of coverage. This is converted into a
corresponding number of containers via the consumption per time. The value is used in
Eq. 7.3.
Sample calculation tasks on the topic of kanban can be found in the summary at the end
of this chapter (▶ Sect. 7.8).
From the factors, the maximum stock in circulation can be calculated (Eqs. 7.4, 7.5, and
7.6):
Stockmax ¼ Consumption Replacement time Safety factor ð7:4Þ
Stockmax ¼ Consumption Replacement time þ Safety stock ð7:5Þ
Stockmax ¼ Consumption Replacement time þ Load carrierSafety PartsLoad Carrier ð7:6Þ
There are various procedures for determining the safety factor. They depend on the
processes, their stability and quality (Dickmann 2015, p. 212 ff.). Gienke and Kämpf
(2007, p. 1004), in addition to the original formula of the Toyota Production System, also
state that Toyota never fills a container with more than 10% of the daily requirement.
7.3 Kanban Environment
Introducing a kanban system requires a foundation. Kanban is a tool for a material flow
according to the pull principle. The pull principle is not the goal of a lean material flow, but
merely an intermediate stage on the way to a one-piece flow (▶ Sect. 7.4).
The main basis for the introduction of kanban are waste-free and stable processes.
Aligning a process according to the pull principle without a stable process according to the
criteria of stabilization, flow and tact does not lead to the goal.
The successful introduction of kanban depends on the following framework conditions,
which act as multipliers:
• Smoothed production with minimization of fluctuations in terms of quantities and

variants
• Shortening and standardization of the transport cycles and integration of the transport
into the material flow
• Consistent management of the load carrieres or the packaging form with the smallest
possible containers
90 7 Pull
• Definition and compliance with standards

• Continuous production and continuous flow
• Reduction of batch sizes and set-up times
• Clear location for delivery and storage
The number of cards for a part is fixed and the cards are numbered accordingly (card
number of total number of cards in circulation). Cycles are accurately calculated, and
inventories are low. A lost card usually has the effect of a material shortage or missing
material. Therefore, the cards in circulation are regularly checked for completeness. Lost
cards are reprinted and reintroduced into circulation.
Example
In an assembly plant, the cards were lost, especially in the wintertime, as they were used
to clear the windows of the industrial trucks from ice. Replacing them with cards in a
round shape solved this and another problem. While the square cards sometimes got
stuck in the sloping rails on the shelves, the round cards rolled down the kanban rails
without any problems. ◄
To ensure that no cards are lost, discipline is necessary in addition to a stable process.
The understanding among employees that each card has the same value as the material
noted on it is very important. The visualization of the real amount of money on the card
supports the careful handling of the card. Missing cards are only a problem in companies
where compliance and verification of standards is not practiced (▶ Sect. 25.5).
Sometimes a kanban system is copied because others do it too. But a kanban system is
not introduced because it looks good. Nor does it serve the consuming area, i.e., produc-
tion. After all, card handling for production is not a value creation, but an activity from the
category of waste. Kanban has its uses in supply chain and logistics. Thus, Ohno (1988,
p. 29 ff.) recommends the use of kanban only if it makes sense and is understood and under
certain rules.
Example
A kanban system is used in administrative areas for office supplies (Rumpelt 2005). If
the minimum stock level is fallen short of, a demand triggering takes place by means of
kanban. The users and consumers do not benefit from the small cards for reordering used
material (◉ Fig. 7.6), but the secretary’s office, which takes over reordering, does.
Orders are placed at regular intervals, spontaneous orders due to lack of material do
not occur. The minimum order value for an order with the office material supplier is
reached. The assortment is standardized and unnecessary material, for which there is no
need, does not occupy cabinet space. ◄
7.4 One-Piece Flow in Customer Sequence 91
Kanban
(Article photo)
Item name Description of the article

color, format (dimensions)
Item description Further description,

other information, e.g. price
Order number Related order number
Stock location Storage location of office

supplies, cabinet, room no.
Order quantity Minimum stock

X X
Minimum stock reached!

Please put kanban in mailbox
Fig. 7.6 Example: Kanban for office supplies
7.4 One-Piece Flow in Customer Sequence
The fine art of production is the so-called one-piece flow (Takeda 2006, p. 59 ff.). If the
individualization of the products is so high that the variance can no longer be represented in
a supermarket, the parts are very voluminous (e.g., aircraft) or expensive, the pull principle
is no longer practicable.
Example
The bumpers of an automobile consist of different shape and color options. In addition
to the colors, there are two options for the shape (normal or sport), the chrome
applications (with or without), the license plate size (oblong for Europe or square for
the US and Asia) and the holes for parking sensors (with or without). This results in
16 different shape variants, which must be multiplied by the number of colors. Assum-
ing eight possible paints, 128 different variants for bumpers are possible. With this
quantity and dimension of the component, a supermarket would be required to keep
several of each variant in stock. This would correspond to a very high stock on an area
larger than a football field. Sequencing therefore makes sense. ◄
92 7 Pull
The solution lies in customer-oriented order production. This is conveyed through

production in a sequence. There are no overtaking products in the process.
" First-In-First-Out (FIFO) An organizational principle for a warehouse. Processing takes

place in the order of receipt. Parts that are provided first are removed first. This corresponds
to the principle of a push-through rack, where the parts are retrieved in the order in which
they were put away. The opposite principle would be LIFO. It means reversed Last-in-first-
out and corresponds to the sequence of a stack.
Stable and perfectly balanced processes work neither according to the push nor the pull
principle. They control themselves with a high level of process responsibility. If a product
is delivered, the next product is ready for processing. The result is perfect production in a
“one-piece flow”.
" One-Piece Flow Describes production with “batch size one”. Each workpiece is
forwarded directly to the next process after it has been processed. There is also a maximum
of one workpiece between the processes (standard stock in curculation). If a process stops,
the processes before it must also stop. There is no overproduction.
The one-piece flow in customer sequence is the highest form of production, as it can
only work with a high level of perfection, clear, adhered standards and coordinated
processes. Added to this is a high level of personal responsibility in all process steps.
This applies to both material flow and quality. The processes are running smooth and there
is neither push nor pull, because all processes work hand in hand.
" Just-In-Sequence (JIS) A delivery strategy that combines the just-in-time (JIT)
approach with sequencing of variants in customer order. The manufacturing process is
informed of the delivery sequence at the same time as the order is placed. Components and
parts are delivered to the production line at the right time in the right sequence, just before
they are assembled.
With just-in-sequence, all parts are supplied together in the correct sequence to a specific
order (◉ Fig. 7.7). The entire logistics is aligned with the production of the customer orders.
The sequence is also called “pearl chain”. The adherence to or deviation from the sequence
is recorded with the key figure of the sequence quality of the pearl chain (Weyer 2002,
p. 173 ff.).
The one-piece flow is always used in a flexible manpower system (FMS) system (▶
Sect. 12.3) (Rother and Harris 2001, p. 101).
7.5 Pacemaker 93
Fig. 7.7 Schematic representation of a production in sequence, feeding of the parts in the form of
fish bones
7.5 Pacemaker
With the pull principle or the one-piece flow in sequence, production is controlled by
existing customer orders. The orders are placed in the customer tact time at the pacemaker
process. This does not happen with the push principle (▶ Sect. 5.1).
" Pacemaker Process The position in a process chain at which the customer orders are
placed into production by information (◉ Fig. 7.8). The pacemaker thus specifies the
sequence. The pacing takes place in the customer tact time. Processes before the pacemaker
process (upstream in the direction of the supplier) work according to the pull principle.
Processes after the pacemaker process (downstream in the direction of the customer) work
according to the FIFO principle in customer sequence.
A basic rule in the lean process chain is: The variance is to be formed as far as possible at
the end of the processes (▶ Sect. 17.3). The process chain before the variants are placed
can be standardized. Stocks are reduced at the same time. After the variants have been
placed, there is a time spread due to the variants. The process chain becomes more flexible.
Within a process, the standard is processed at the beginning before different work contents
are added depending on the variant (▶ Sect. 6.5).
With the pull principle, the customer order is forwarded as information against the
material flow. This is done by means of kanban. If the number of variants is low, especially
at the beginning of a process chain, the pull principle is used (◉ Fig. 7.9).
94 7 Pull
Customer order
OXOX
Process 1 Process 2 Process 3

Pull
FIFO Customer
Pacemaker
Fig. 7.8 Pacemaker process with placement of the customer sequence (value stream representation)
Customer order
OXOX
Process 1 Process 2 Process 3 Process 4

Pull Pull Pull
Customer
Flow
Fig. 7.9 Pacemaker process at the end of production, pull principle before that
Example
Chocolate bars have the pacemaker process at the end of the process due to the
manageable variance. ◄
Complex and variant products have the pacemaker process at the beginning of the
process chain (◉ Fig. 7.10).
7.6 Configurations of Flow Systems 95
Customer order
OXOX
Process 1 Process 2 Process 3 Process 4

Pull
FIFO FIFO Customer
Flow
Fig. 7.10 Pacemaker process at the beginning of production, then one-piece flow in customer
sequence (FIFO)
Example
In aircraft production, the parts for an order are finished and manufactured very early
according to the customer’s specific requirements. Here, the pacemaker process is at the
beginning of the process chain. ◄
7.6 Configurations of Flow Systems
The different flow principles can be compared (◉ Fig. 7.11). The representation follows the
symbolism of the value stream (▶ Sect. 8.2).
• The first stage corresponds to the push principle with production based on a forecast:
make-to-forecast.
• In the second stage, the kanban system is integrated with supermarkets. The pacemaker
controls from the last process by means of kanban according to the pull principle: make-
to-stock.
• In the third stage, the order is fed into the process chain at the beginning to produce a
necessary variance. Each customer receives the order after the lead time: make-to-order.
• In the last stage, the process chain is aligned according to the flow principle with a layout
in row and short-cycle material supply in sequence. The material flow is in sequence of
the customer in one-piece flow: one-piece flow in customer sequence.
Processes with different flow principles and pacemaker that influence the lead time can
be shown using the example of different types of restaurants. A comparison of a restaurant,
a pizzeria and a fast-food restaurant shows the connection between flow principle, variance,
pacemaker and lead time (◉ Table 7.2).
96 7 Pull
Push-system: make-to-forecast
Forecast Forecast Forecast Demand
Week
Supplier Production Assembly
Pull-system: make-to-stock (kanban)

Demand
Day
Make-to-order
Demand
Shift
FIFO Supplier Production FIFO Assembly
One-piece flow in customer sequence

Demand
2h
Fig. 7.11 Stages of different flow principles
Table 7.2 Lead times in different restaurants due to different flow principles
Restaurant type Waiting time of the guest Production control system
Restaurant Long, approx. 30 min Individual production
Pizzeria Medium, approx. 15 min Prefabrication of dough, topping by order
Fast-food Short, approx. 2 min Make-to-stock
Example
The restaurant takes the longest to serve customers. It controls the order at the beginning
of the process and prepares the food individually and freshly in a one-piece flow.
The pizzeria reduces the products to pasta and pizza. Pasta, sauces and pizza dough
are prepared and combined or topped according to customer requirements. The variance
takes place in the middle of the manufacturing process. The lead time is reduced to the
time for serving or the baking time in the oven.
The fast-food restaurant has the shortest lead time because it works with the pull
principle from a supermarket. The pacemaker is located at the end of the process,
namely at the service counter. ◄
7.8 Summary 97
The ideal idea of manufacturers, logisticians and restaurant operators is certainly

production and delivery before the customer places his order. Delivery occurs the moment
the customer thinks about placing an order. This clairvoyant methodology falls under the
category of “make-before-order”. In online shops, there are initial approaches to prepare
the order while the customer is composing his order in the shopping cart on the website.
The order is pre-picked while the customer is still informing himself and puts the goods
into the virtual shopping cart without having completed the order.
The Following Expert Questions Revolve Around the Topic of the Pull Principle
• Do customers receive their products when they expect them?

• Are stocks reduced to the necessary standard stock in circulation?
• Are the necessary variants formed as late as possible in the process flow?
• Are the real customer orders controlled at the pacemaker?
• Is the process chain controlled according to the pull principle before the pacemaker?
• Is the FIFO principle followed behind the pacemaker?
7.8 Summary
Summary on the Subject Pull

• In pull production, only what has been ordered by the customer is produced.
• Just-in-time (JIT) is one of two main pillars in Toyota’s production system. The aim
is to deliver the right goods to the right place at the right time, in the right quantity,
with the right quality (5R) and at the right price (6R).
• Just-in-sequence (JIS) is a delivery strategy that combines the Just-in-time approach
with sequencing variants in customer order.
• Kanban (jap. card) stands for the flow of information in the pull principle. Kanban
serves as an information element for the transport of parts between processes.
• There are two types of kanban: withdrawal kanban and production kanban.
• Kanban process requirements:
– Delivery and post-production must be realized in short delivery times.
– Number of variants should be limited so that the storage area for the supermarket
does not become too large.
– The consumption, replenishment lead time, the number of parts per kanban
container and a safety factor are included in the calculation of the kanban quantity.
– A lost card usually has the effect of a material shortage or missing material.
Therefore, a regular check of the cards for completeness is important.
98 7 Pull
• Sequencing is useful when too many different variants would result in very high
populations.
• Stable and perfectly balanced processes work neither according to the push nor the
pull principle, but according to the one-piece flow. This involves independent control
with a very high level of process responsibility.
• The one-piece flow in customer sequence requires clear, adhered standards and
coordinated processes.
• The pacemaker process is the position in a process chain at which information about
customer orders is placed into production.
• Processes before the pacemaker process (upstream in the direction of the supplier)
work according to the pull principle. Processes after the pacemaker process (down-
stream towards the customer), work according to the FIFO principle in customer
sequence. ◄
Questions
• What does the term kanban stand for?
• What is the goal of kanban?
• What are the advantages and disadvantages of the kanban method?
• On which general conditions does a successful kanban implementation depend?
• What forms of signaling are used for kanban?
• What are the disadvantages of a pull system?
• What is the pacemaker process?
• According to which flow principle is the material flow before the pacemaker process?
• According to which flow principle is the material flow after the pacemaker process?
• What are the two different types of kanban cycles?
• On which principle is the kanban system based: push, call, pull or stock?
• Which two terms go together in each case? Make-to-order, one-piece flow, make-to-
stock, supermarket, order control, make-to-forecast, utopia, workshop control, make-
before-order, flow in customer sequence
• Calculation task: For each supplier part of the Knalschi 100, the number of cards in
the kanban cycle has to be calculated.
– Part A: 40 parts/container, shift time: 480 min incl. 60 min break, consumption/
shift: 400 parts, replenishment time: 3.5 h, safety factor: 1.25
– Part B: 20 parts/container, 3-shift operation with 150 min break per day, con-
sumption/day: 1300 parts, replenishment time: 2 h, safety: 1 h
– Part C: 25 parts/container, consumption: 45 to max. 55 parts/h, replenishment time:
5 h, safety: 50%.
The solutions to the multiple-choice and arithmetic problems can be found at the end of
the book (▶ Sect. 33.2).
References 99
References
Dickmann P (ed) (2015) Schlanker Materialfluss mit lean production, Kanban und Innovationen, 3rd
edn. Springer Vieweg, Berlin
Gienke H, Kämpf R (2007) Handbuch Produktion – Innovatives Produktionsmanagement:
organisation, Konzepte, Controlling. Hanser, Munich
Rother M, Harris R (2001) Creating continuous flow – an action guide for managers, engineers and
Sato M (2008) The Toyota leaders: an executive guide, 1st edn. Vertical, New York
Kogan Page, London
Toyota (1995) Total guide to the Toyota commemorative Museum of Industry and Technology. The
Toyota Commemorative Museum of Industry and Technology, Toyota, Nagoya
Weyer M (2002) Das Produktionssteuerungskonzept Perlenkette und dessen Kennzahlensystem.
Helmes, Karlsruhe
Value Stream
8
Wherever there is a product for a customer, there is a value

stream. The challenge lies in seeing it.
Mike Rother
Overview
The value stream mapping is a visual method to represent processes graphically. The
actual analysis and the steps to the future value stream are the elements that lead to
improved process chains. Known key figures play an important role here. Based on
design principles, fundamental requirements for system, process and information
design can be derived.
Knalsch GmbH: Interrelationships

Karl-Norbert Alsch is satisfied, “All we have to do is put the steps we have taken in a
sensible order and get transparency about our processes. Is there also a method
for this? The ideal would be a visual representation of the processes, where we
could see our problems in total across the entire factory, without taking the area
boundaries into account. If we had this, we could use the current state as a starting
point for our improvement to the target state.”
“That exists! I’ve seen something like that before,” says Claudia Beck.

https://doi.org/10.1007/978-3-658-36087-0_8
102 8 Value Stream
8.1 Value Stream Mapping
The value stream mapping shows the actual state of a process chain with a symbolic
representation. The target state is created as a value stream design with the same symbol-
ism. Three important process key figures are integrated in the value stream: Customer tact
time, process time and lead time (▶ Sect. 8.4).
" Value Stream Analysis (VSA) An analysis method to holistically record the process
chain as a value stream map (VSM). The graphical representation provides a complete
overview of all process steps without division, building or cost center boundaries. The
system boundaries are from ramp to ramp: from the raw material of the suppliers to the
delivery to the customer. With its representation, the value stream shows the connections
between the material flow and the information flow.
A value stream contains all actions, value-adding and non-value-adding, which are
carried out to manufacture a product. The value stream representation begins with the
delivery of the raw material and ends with the transport of the goods to the customer. The
focus is on production. For administrative processes and services, a similar approach exists
with the so-called makigami (▶ Sect. 16.5).
While improvement activities usually bring isolated success, the value stream approach
is a systematic optimization of the overall process. Thinking in processes and transparency
across departmental boundaries are brought together. The value stream breaks through the
“silo thinking”, the cost center orientation and the departmental thinking, as it exists for
example between an assembly and a logistics. Instead of dividing up areas and achieving
local optima, the overall process is viewed without interfaces. This creates the opportunity
for a holistic and comprehensive optimization. This leads to an overall optimum. This
comprehensive view of the processes is important for further optimization. The value
stream not only identifies waste, but also its causes and sources. This shows that the
value stream analysis, as an ideal form of process recording, is a mandatory step in the
analysis phase of an optimization project.
By visualizing the overall process, the view of the flow of material and information
becomes transparent. The material flow shows the flow of raw materials, parts and
components as well as products. The absolute goal is the continuous one-piece flow (▶
Sect. 7.4). Information flow visualizes the flow of orders and inventory control information.
The goal here is to achieve a clear flow of information so that one process produces only
what the next process requests.
The view of the overall interrelationships makes it possible to optimize the system, as
envisaged in system kaizen (▶ Sect. 11.2). The value stream links the target derivation and
key figure level with the process level.
8.2 Value Stream Symbols and Representation 103
8.2 Value Stream Symbols and Representation
Symbols are used for the visual representation of a value stream. They serve as a uniform
language when it comes to processes, as these are familiar in the lean world. A distinction is
made between three symbol groups: Material flow, information flow and other symbols.
The most important symbols are presented below. Rother and Shook (1999) and Erlach
(2013) deal in detail with the topic of value stream map. Additional symbols for special
applications are shown there.
To represent a process in the material flow, the value stream symbol of a box or a box
with the process name is used. The process box of the manufacturing process stands for a
manufacturing section in which the material flows. Process boxes are labeled with the
process name as the heading. This box is also used for departments, such as production
planning. Processes are supplemented with a data field or data box in which the associated
process key figures are entered (◉ Fig. 8.1). Information about the manufacturing process,
department, customer, etc. is recorded in it.
External suppliers and customers are represented with a factory symbol. This is used for
customers, suppliers and external manufacturing processes. Transports are to be drawn in
with a symbol analogous to the mode of transport used. This is usually a truck or delivery
van. Likewise, graphics can be used for rail vehicles or aircraft. The data on delivery
frequency and frequency are documented in the symbol (◉ Fig. 8.2).
The external material flow with raw materials from the supplier and finished goods to
the customer is shown with a larger, unfilled arrow. An internal material flow according to
the push principle in lot sizes is marked with a black and white striped arrow (◉ Fig. 8.3). A
distance indication can be added. The symbol is used when the produced material is moved
on before the next process needs it. This happens when the process is controlled according
to a given production plan and not according to the needs of the following process.
Unregulated stocks are marked with a triangle and the letter “I” for “Inventory”. The
quantity or the time of the days’ supply are entered underneath. The direct linkage of two
Fig. 8.1 Value stream symbols ASSEMBLY Cycle time = 60 s

for a process and a data field
Setup time = 25 min
2 Shifts
3 % Scrap
Fig. 8.2 Value stream symbols

for external companies and a
transport Company 1x per week
Knalsch GmbH Thursday
104 8 Value Stream
Fig. 8.3 Value stream symbols for external transport and internal transport according to the push
principle
I
max. 15 pieces
FIFO
1 000 pieces
2 days
Fig. 8.4 Value stream symbols for unregulated stocks and a FIFO lane
Fig. 8.5 Value stream symbols

for a supermarket and for
withdrawal according to the pull
principle
Fig. 8.6 Value stream symbols for manual and electronic information flows
processes, e.g., with a conveyor belt or similar, is marked with the symbol of the FIFO lane
(◉ Fig. 8.4). It indicates the sequenced transfer of specified quantities of material between
two processes according to the flow and FIFO principle. A FIFO lane is characterized by a
maximum inventory limit. The maximum quantity is noted above the symbol.
A controlled inventory of parts, which an upstream process serves to control production,
is drawn in with the supermarket symbol between the processes. The symbol is reminiscent
of an upside-down “E”. The maximum quantity is entered below the symbol. The with-
drawal is explained with a circular arrow (◉ Fig. 8.5). It visualizes the pulling of material
according to the pull principle, e.g., from a supermarket.
There are other symbols for the information flows. Straight arrows are used for manual
information flows, such as a production plan or scheduling agreement. Lightning arrows
are used to represent electronic information flows, which can be data transfers (◉ Fig. 8.6).
8.2 Value Stream Symbols and Representation 105
Fig. 8.7 Value stream symbols for production kanban and withdrawal kanban
Fig. 8.8 Value stream symbols for a Kanban bundle and a product mix
Daily
schedule
Fig. 8.9 Value stream symbols for information and production control according to the “go and see”
principle
Information flows in the form of kanban processes are entered with symbols of cards and
a dashed arrow. A production kanban is represented by a white card. It triggers the
re-production of used parts. The withdrawal kanban is represented in the same way but
with a shaded card (◉ Fig. 8.7). The symbol represents a card or device that instructs and
allows the material supplier to pick and transfer parts, e.g., from a supermarket to a
consumption point.
A bundled Kanban stack is represented by the symbol of cards placed one behind the
other. The symbol with the label “OXOX” represents a leveled product mix (◉ Fig. 8.8).
The production volume or variants are leveled over a period of time. Scheduling is leveled,
for example, according to the heijunka principle.
Data fields are used to describe the information flows. They are positioned at the
relevant information flow and labelled with the information. The glasses represent produc-
tion control according to the “go and see” principle (◉ Fig. 8.9). Here, the process is
controlled autonomously. Production is adjusted autonomously on the basis of the stock
quantity, without coordinated planning. The symbol usually occurs with material flows
according to the push principle. The glasses stand for poor control and are different from
the idea of going on the spot and seeing (go to genba), as is the case with process analysis
(▶ Sect. 3.7) and shop floor management (▶ Sect. 25.1).
Finally, there is a presentation of three general value stream symbols:
• A buffer or safety stock in the form of a closed supermarket. Whether it is a buffer, or a

safety stock is to be noted on the symbol.
106 8 Value Stream
Fig. 8.10 General value stream symbols for a buffer/safety stock, an employee and the kaizen flash
• An employee is entered with the symbol “head and arms” from the top view. This way
the manual processes and the logisticians between the processes can be visualized.
• All ideas and findings in the form of waste and weak points are entered in a cloud-
shaped flash (◉ Fig. 8.10). By positioning it in the value stream, the corresponding point
is marked. This symbol is called a kaizen flash and its outline is usually drawn in red. In
the kaizen flash, specific anomalies are recorded as a text description or keyword. This is
used for later optimization, which is necessary to realize the target value stream. These
topics can also be scheduled for Kaizen workshops.
In addition to drawing the value stream on a sheet of paper, the use of sticky notes on
movable walls has proven effective for greater visualization. The Airbus company uses
entire walls in rooms to display its value streams close to production. For digital use, the
symbols can be found in common process visualization software.
8.3 Value Stream Design
Value stream mapping is a recording of the actual state in the form of a current value stream
map. The value stream is created during the as-is recording of the information on site in
production. Rother and Shook (1999) name this procedure “learning to see”. Through the
independent creation, the process understanding takes place, which is the basis for the
recognition of waste. Opportunities for improvement are identified. The value stream is the
extension of the process analysis method chalk circle (▶ Sect. 3.7) to the entire process.
The actual value stream provides the basis and the necessary information for the
subsequent future state map (FSM).
Before recording, the affected employees, the managers as well as the works council
have to be informed (Wagner and Lindner 2013, p. 15). Going on site independently,
seeing and understanding promote the view of waste, variability and inflexibility in the
process chain. All data is collected and recorded on site. Current information is collected.
Historical data from systems or planning is not taken. Only what is understood is collected
and recorded.
In addition to seeing, it is also about listening into a production. Where there is noise,
there are problems or employees are underutilized due to waiting times. In this case, one
8.3 Value Stream Design 107
speaks of a production that sounds like a bazaar, namely loud, uneven, spontaneous and
uncoordinated. The opposite is a noise level like in a buzzing beehive, continuous, busy
and even.
Indications from production that the situation would only be like this today should be
ignored. The value stream mapping is deliberately a flashlight. As a rule, it reflects the
current state of daily production conditions with all problems very well and reliably.
The creation takes place on a sheet of paper in landscape format. The use of a clipboard
is recommended. Writing is ideally done with a pencil so that changes can be made using
an eraser. The use of a stopwatch is appropriate to record cycle times. It should be noted
that this is not a problem with machines, but at manual stations the agreed arrangements,
including with the works council, for recording time should be followed. Standard times, as
planned by the engineering department, should not be relied upon. There are the most
frequent differences between planning and reality and thus potential for optimization.
The level of detail is to be chosen according to the observed process. The process can be
a production, a production hall, a plant or a supply chain. Depending on the scope, the
process view is scaled appropriately. Less detailed value streams with an overview
character (macro level) can be used to link detailed value streams (micro level). Extensions
of the process view in the direction of suppliers and customers are also possible (Jones and
Womack 2011).
The value stream is created in eight steps. It leads to a graphical representation of the
value stream (◉ Fig. 8.11).
Step 1: Determine the Part Family

Before the actual value stream mapping begins, the product to be observed must be
identified. This is usually clear, but in the case of very different variants that run through
Tact time: 0.5 min

Process time: 12 min
Lead time: 171.9 h
Weekly schedule Weekly schedule
Production planning
Supplier Customer
2 000 parts/day 2 000 parts/day
2 variants Actual demand SAP Actual demand 4 variants
Weekly schedule
Day Shift
Turning Milling Drilling Honing Grinding Cleaning Assembly

I FIFO I I I I I I
4 500 DATA 300 DATA 1 500 DATA 2 000 DATA 800 DATA 1 000 DATA 7 500 DATA 3 000
37.5 h 2.5 h 12.5 h 16.7 h 6.7 h 8.3 h 62.5 h 25 h

1.5 min 1 min 2 min 2.2 min 1 min 1.5 min 2.8 min
Fig. 8.11 Value stream map

108 8 Value Stream
Processes
1 2 3 4 5 6 7 8
A X X X X
B X X X X X X
Products
C X X X X X
D X X X X X X
E X X X X X
F X X X
G X X X
Fig. 8.12 Product-process matrix
different processes or skip processes, the main product or part family must be identified.
This identification is done with the product-process matrix (◉ Fig. 8.12). In this process, the
product variants are assigned to the processes. Part families are determined by forming
groups. Using a Pareto analysis, quantities are also considered, and the main product is
identified. After selecting the part family to be observed, the process flow and the path
through production to the value stream mapping are defined (Klevers 2007, p. 60 ff.).
Example
The classification of products into families can be explained using the example of
different types of chocolate. Chocolate bars can be divided into three different product
families. The first product family describes the bars which are massively made of
chocolate and go through the manufacturing process to chocolate icing. These varieties
are milk, dark and white chocolate. Another family of products results from mixing in
ingredients before the bar is poured. This results in varieties with different nuts, raisins
or cornflakes. The last product family consists of varieties that contain a filling mass
between the chocolate base and the lid. These varieties go through a separate process:
top creation, mass creation, mass insertion, base creation and base insertion. Varieties
which belong to this product family are marzipan, yogurt, peppermint or biscuit. ◄
Step 2: Production Planning, Supplier and Customer Requirements

In this step, the upper area of the value stream is drawn. The customer on the top right and
the main supplier or suppliers on the top left are each drawn with the factory symbol. The
company name, produced quantities and variants as well as all other known information are
entered in the factory symbols. Between the two factory symbols, the company’s internal
production planning is drawn as a box, supplemented with other relevant departments if
necessary. Existing information flows between the parties and systems are noted with
information flow symbols.
8.3 Value Stream Design 109
Fig. 8.13 Representation of

Welding
parallel processes in a value
stream
DATA
Drilling
Gluing DATA
DATA
You may already notice the first weak points. Problems can become apparent in an
order, on the basis of a preview or in missing or too many information flows. Also, if more
parts are delivered by the supplier than are delivered to the customer and these are not
found in an assembly, this should be noted in a Kaizen flash.
Step 3: Processes
In the third step, the processes are recorded. For this purpose, a quick overview of the
process chain from ramp to ramp, i.e., from raw material to end product, is started in
production. Then the analysis starts from goods issue or shipping backwards to goods
receipt. The material flows against the walk through.
The process steps are identified. A department or cost center is not included as a process.
A process is always characterized by the fact that before and after an activity the material is
stagnated or transported, even if only briefly, e.g., via a conveyor belt. The processes are
recorded as a process box in the lower area and are given a unique name for identification.
Parallel processes are sketched one above the other. If the parallel processes are
additionally the same, as occurs with identical machines, they can also be drawn one
behind the other in the form of a shadow in the existing number (◉ Fig. 8.13).
Step 4: Process Data

All data collected for a process must be noted in the process data field. The cycle time of the
machine or the manual workstation must always be noted (▶ Sect. 6.3). If the cycle time
depends on different variants, the different cycle times are noted.
Further key figures can be added depending on the process.
Possible key figures are:
• Shift duration
• Number of shifts
• Break times
• Set-up times
• Lot sizes
110 8 Value Stream
• Scrap rates
• Quality
• Downtime
• Mean time between failures (MTBF)
• Mean time to repair (MTTR).
In the data boxes, it should also be noted if processes are involved that are also used by
other material flows.
Step 5: Inventory
The stocks between the processes are noted. These can be unregulated inventories (inven-
tory triangles) or defined or controlled stocks (FIFO lane, supermarkets). Below the
respective symbol the quantities are recorded. For countable goods, the quantity is
recorded. For goods that cannot be counted, quantities in units of measurement (e.g., liters)
are used. The stock is converted into a stock period using the consumption per time unit. It
is always possible to enter the “range of material per time units”.
Step 6: External Material Flows

The connection between the upper part of the value stream and the processes in the lower
part, is made with an arrow for the external material flow. Both from the supplier (left) to
the first process and from the last process (right) to the customer.
Means of transport are drawn as symbols next to the arrows and existing data is noted in
them, such as delivery days and delivery frequency. The load carrier size can be added.
If the traffic from the supplier and the traffic to the customer are compared, revealing
findings may emerge. For example, are there also empty transports that could take goods
with them or are there differences between the frequency of delivery and collection?
Step 7: Internal Material Flows and Information Flows

The internal material and information flows are drawn in such a way that the processes are
connected with each other (push, pull, FIFO lane, forklift transports, etc.). In addition, there
are the internal information flows between production planning and the processes in the
respective form of representation (physical or electronic), supplemented by relevant data. If
processes control themselves, the “go-and-see glasses” must be used.
Step 8: Key Figures

Finally, the key figures of a value stream are determined and noted. For this purpose, the
cycle times of the processes and the inventory times are transferred in the lower area of the
value stream on a line that descends for processes and ascends for inventories. The stepped
line shape follows the contour of the symbolism above it. The cycle times of the processes
are transferred below the processes, the stock times are noted on the lines between the
processes.
8.4 Key Figures in the Value Stream 111
If there are different cycle times within a process or in the case of branched processes, as
is particularly the case with different variants (see ▶ Sect. 6.5), the cycle time is calculated
for use as a process time key figure. For this purpose, the associated assembly ratio is used
as the distribution of the probability of occurrence (relative or percentage) for the calcula-
tion. The cycle time for use as a process time is calculated as a weighted arithmetic mean
from all variants that occur (Eq. 8.1).
X
k
Cycle timei ¼ Cycle timev Assembly ratiov ð8:1Þ
v¼1
For processes working in parallel, the longest cycle time is transferred.

To convert inventory quantities into a time, the quantities are multiplied by the customer
tact time (Eq. 8.2). It is assumed that for each part that waits between the processes, the
customer tact time must pass at least once. The reasoning is analogous to the description of
lead times in the tact time topic, using the queue analogy (▶ Sect. 6.2).
Inventory time ¼ Inventory quantity Customer tact time ð8:2Þ
In the case of parallel processes and parallel material flow streams, the lead time for the
strand with the longest time is calculated and used for the calculation of the lead time.
The three important key figures of a value stream, customer that time, process time and
lead time, are determined. These key figures make it possible to measure and compare the
overall process and to identify potentials in a further step. To calculate the lead time, the
customer tact time and the process time must be determined. The calculations follow in ▶
Sect. 8.4.
8.4 Key Figures in the Value Stream
The key figure that summarizes all the information in a value stream is the lead time (▶
Sects. 4.4 and 23.1). It shows options for optimizing the value stream in the area of delivery
reliability. Above all, inventories, wastes and set-up times are included. The customer tact
time and the process time are required for the calculation.
The first step is to determine the customer tact time. The calculation (Eq. 8.3) is known
from the chapter on the tact time (▶ Sect. 6.2).
Production time
112 8 Value Stream
Production time and customer order quantity are taken from the production data. Line
balacing problems, bottlenecks and cycle times that exceed the customer tact time can be
identified and result in kaizen flashes.
The process time is the sum of the cycle times of all processes (Eq. 8.4). These values
are listed on the bottom line below the processes.
X
n
Process time ¼ Cycle timei ð8:4Þ
i¼1
The lead time is the time a product takes from the beginning to the end of the process
chain. Equation 8.5 has already been shown in combined form in the chapter Lead time (▶
Sect. 4.4). The ratio is thus calculated from the sum of the process time and the inventory
times (sum of the values on the upper line between the processes) (Eq. 8.6).
X
m
Lead time ¼ Process time þ Customer tact time Inventory j ð8:5Þ
j¼1
X
m
Lead time ¼ Process time þ Inventroy time j ð8:6Þ
j¼1
The determined value must usually be converted into a higher unit, since for most value
streams the cycle time becomes very large in relation to the cycle times. If hours are no
longer practicable, they can be converted into days. Here, the basis for a day should not be
24 h, but the production time in hours per workday. Thus, the result is realistically
expressed in the unit “production days”.
In an ideal system according to the one-piece flow, the ideal lead time would be equal to
the process time, since inventories approach zero due to the flow principle. Thus, the idea
of finding the ratio of lead time to process time, or the quotient (Eq. 8.7), has gained
acceptance. The result is a percentage figure that quantifies the so called flow rate.
Process time
Flow rate ¼ ð8:7Þ
Lead time
If the standard stock in circulation, with at least one part between each process, is taken
into account. This results in a lead time twice as large as the process time and an optimal
flow rate of 0.5. Many lean consultants use this key figure to create concern. For common
push manufacturing, the result is usually several days of lead time, which is related to
process time (in terms of minutes or hours). The flow rate thus becomes a frighteningly
small number, often less than one percent.
8.5 Design Principles for the Future State Value Stream 113
The reciprocal value, the lead time divided by the process time, gives the flow factor
(Eq. 8.8). It cannot be less than one. A good flow factor is a value of two. The flow factor is
the multiple of the cycle time based on the process time.
Lead time
Flow factor ¼ ð8:8Þ
Process time
Example
Calculate the flow rates and flow factors from the two lines in ◉ Fig. 5.2 in ▶ Sect. 5.3.
Lot production has a lead time of 303 min (Eqs. 8.9 and 8.11), while flow production has
a lead time of 6 min (Eqs. 8.10 and 8.12). In both cases the process time is 3 min.
3 min
Flow rateBatch size production ¼ ¼ 0:99% ð8:9Þ
303 min
3 min
Flow rateFlow production ¼ ¼ 50% ð8:10Þ
6 min
303 min
Flow factorBatch size production ¼ ¼ 101 ð8:11Þ
3 min
6 min
Flow factorFlow production ¼ ¼2 ð8:12Þ
3 min
8.5 Design Principles for the Future State Value Stream
After recording the actual status in a current value stream mapping, the target status is
created in the form of a second value stream, the future state map (FSM). The current value
stream map provides a representation of the actual status. Through this and by means of the
included kaizen flashes, waste and its causes are revealed. The future value stream is the
representation of the future target image and thus the basis for how lean production will
look in the future. When both value streams (current and future) are available, action plans
can be derived. The implementation to the new target state can take place. In order to
improve continuously, a target picture is always necessary. It provides the necessary
orientation for implementation.
As a rule, the first ideas for the future value stream very often arise while the current
value stream is being recorded. The first draft should be available within a few days.
Further detailing takes place during implementation.
114 8 Value Stream
The creation of the future value stream is done by avoiding waste, variability and
inflexibility. The procedure to optimize the system is implemented with five steps, which
are known through the previous chapters:
• Stabilization: Levelling of production and production volume

• Flow: Create a continuous flow, lot size reduction, inventory reduction, adaptation of the
layout analogous to the process flow
• Tact: Production processes in customer tact time, line balancing, bottleneck
optimization
• Pull: Continuous flow as far as possible, kanban principle for production control, use of
supermarkets
• Pacemaker: Identification of the pacemaker process, creation of variants as late as
possible
The following key questions can be used to achieve the future state:
• What is the customer tact time?

• Are parts produced for shipping or for the convenience supermarket?
• Where can a continuous flow be realized?
• Where are supermarkets needed according to the pull principle?
• Where does production planning start with the customer order (pacing process)?
• How should the production mix be balanced at the pacemaker process?
• Which production units (batch sizes) are passed on by the pacemaker?
• Which process improvements are necessary to make the future design for the value
stream feasible?
An implementation plan with action steps is derived from the future value stream. By
writing down the new target state and comparing it with the current value stream (including
the key figures), optimization potentials become quantifiable. The data can be used as a
decision-making basis for management and for potential calculations.
The Expert Questions Focus on the Value Stream
• What is the soundscape like in production: more like a bazaar or more like a beehive?
• Is there a common orientation in terms of the value stream instead of divisional
thinking?
• Is the future value stream designed in such a way that all process steps work synchro-
nously in time?
• Does the cycle time correspond to the customer tact time?
• Is the customer’s order only entered in one, namely the right place?
• Are the variants introduced as late as possible in the process?
8.7 Summary 115
• Is the smallest possible batch size defined for each process step?
• Are the necessary process decouplings correctly positioned and dimensioned?
• Are all processes designed to be as simple as possible?
• Are high quality and availability of the processes guaranteed?
8.7 Summary
Summary on the Topic of Value Stream

• The value stream mapping is the extension of the process analysis method to the
entire process.
• The value stream is a process visualization and serves the common understanding.
• The current value stream is used for the process analysis. The future value stream is
the target image for the future process chain.
• The value stream mapping shows the current state of a process chain by means of
symbols.
• The symbols visualize the material flow, the information flow and further insights.
Kaizen flashes are used to identify waste and initial optimization ideas.
• The future state is created as a value stream design with the same symbolism.
• In addition to drawing the value stream on a piece of paper, the use of sticky notes on
boards has proven effective for greater visualization.
• The affected employees, managers and the works council must be informed prior to
recording.
• All data is collected and recorded on site (no historical system or planning data, also
no standard times). Thus, only what is understood is recorded.
• From the value stream mapping, the interrelationships between the material flow and
the information flow become apparent.
• The material flow shows the flow of raw materials, parts and components as well as
products. The goal is to achieve a continuous one-piece flow.
• Information flow visualizes the flow of orders and inventory control. The goal is to
achieve a clear flow of information so that one process only generates what the next
process requests.
• The value stream approach does not bring isolated successes but is a systematic
optimization of the overall process. The value stream not only identifies waste, but
also its causes and sources.
• The future value stream is the representation of the future target image and thus the
basis for how lean production will look in the future. The future value stream is
created by avoiding waste, variability and inflexibility. The procedure for creating it
is carried out in five steps: stabilization, flow, tact, pull and pacemaker.
• By writing down the future state and comparing it with the actual value stream,
including the key figures, optimization potentials become quantifiable. Action plans
are derived from the current and future value stream. ◄
116 8 Value Stream
Questions
• In which steps does the value stream creation take place?
• What is a product family in the sense of value stream thinking?
• What is the symbol for a supermarket and the corresponding symbol for the
interlinking of the processes before and after it in the value stream?
• What is a kaizen flash? What is it used for?
• Which important process key figures are integrated in a value stream?
• How is the customer tact time calculated?
• How is the process time in a value stream calculated?
• How is the lead time calculated in a value stream?
• Calculation task 1: At Knalsch GmbH, 20 products of the Knalschi 100 are produced
per hour.
The first machining process has a cycle time of 2 min; the second machining process
has a cycle time of 3 min. The third process requires 3.5 min per part and the last
process is an assembly process with three stations and a cycle time of 5 min per
station.
There are 2 h of inventory between the first and second process. There are 15 parts
between the second and third process. Before the fourth process, there is a conveyor
belt on which a maximum of 8 parts fit.
– The customer tact time has to be calculated.
– The process time has to be calculated.
– The lead time has to be calculated.
– The flow rate has to be calculated.
– The flow factor has to be calculated.
• Calculation task 2: How long is the cycle time at an assembly station for the Knalsch
3000 when the following three variants occur?
– Product variant A: Cycle time 60 s, assembly rate 50%.
– Product variant B: Cycle time 40 s, assembly rate 30%.
– Product variant C: Cycle time 90 s, assembly rate 20%.
The solutions to the calculation tasks can be found at the end of the book (▶ Sect. 33.3).
References
Erlach K (2013) Value stream design – the way towards a lean factory. Springer, Berlin
Jones D, Womack J (2011) Seeing the whole value stream, 2nd edn. Lean Enterprise Institute,
Cambridge
Klevers T (2007) Wertstrom-Mapping und Wertstrom-Design. mi, Redline & Finanzbuch, Munich
Rother M, Shook J (1999) Learning to see – value stream mapping to add value and eliminate Muda.
Version 1.2. Lean Enterprise Institute, Cambridge
Wagner KW, Lindner AM (2013) WPM – Wertstromorientiertes Prozessmanagement – Effizienz
steigern, Verschwendung reduzieren. Abläufe optimieren, Hanser, Munich
Perfection
9
If you make one mistake and don’t correct it, you make another!
Confucius
Overview
Production in perfection means not producing or passing on any defects. The zero-
defect goal without rework is not achieved by testing and improving, but by
producing without defects. The Jidoka principle enables the decoupling of man and
machine with a simultaneous system stop as soon as errors occur. It is thus a principle
that characterizes perfect production without errors.
Knalsch GmbH: Quality Problems

Production is finally in flow. However, in the rework area, many defective parts
suddenly accumulate and there are new customer complaints.
Alsch has his assistant Claudia Beck collate the figures. She explains to him that
she learned from her studies that even the “few” customer complaints would be a
problem compared to a top process. The error-feedback rate from customers is
greater than the baggage-loss rate at international airports, she says. “We’re supposed
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https://doi.org/10.1007/978-3-658-36087-0_9
118 9 Perfection
to be worse than the lost luggage rate at the airport?” escapes Mr. Alsch. “I don’t like
that at all!”
In production, he observes how new housing parts of the “Knalsch 3000” product
are placed on the dirty floor. There they stand, unprotected, in metal filings that have
fallen to the floor. This causes scratches on the outside of the housing, which is
relevant to the customer’s quality.
In the rework area, Alsch talks to the foreman Laura Schmidt. From her he learns
that it is always different errors that occur and with which products arrive in rework.
9.1 Understanding of Quality
Colloquially, it is a sign of quality when the customer returns and not the goods. Customers
are only satisfied if the quality of the products and the service quality meet their
requirements and the products do not have any defects.
" Quality All purchase-deciding criteria that cause the customer to pay money for a
service. The core for quality lies in the customer benefit. Quality is determined by the
market.
If failures occur, it becomes expensive very quickly. The rule of 10 applies: If the defect
is discovered during the production process, the costs amount to one Euro, according to a
rule of thumb. If the defect is detected in the production line, the defective product causes
follow-up costs of ten Euro. If the defect is eliminated in the rework area, the expenses add
up to 100 Euro. If the fault is first detected by the customer and he has to come to the
workshop, e.g., with his faulty vehicle, the costs, including a replacement vehicle, amount
to about 1000 Euro (◉ Fig. 9.1). This does not take into account any possible annoyance
and damage to the image.
To “check” the quality by a final inspection before delivery and to correct it in the
rework area is a wasteful and very expensive process. None of these activities can be
attributed to value creation. In the worst case, scrap is produced that has to be disposed of,
and resources are wasted unnecessarily.
Perfect processes are lean, stable, robust and fault-free. These processes are at such a
high-quality level that they have a value range of only a few failures (3.4 ppm, cf. Six
Sigma, ▶ Sect. 25.4). In the electronics industry, minimum failure rates are essential. The
combination of many components in a device potentially increases the failure frequency
due to only one defective component.
In order to achieve the zero-defect target, quality must not be “checked” but produced
within the value-creating process. To ensure this, the processes and the products must be
9.1 Understanding of Quality 119
1 000
Cost in Euro
700
600
500
400
300
200
100
100
0 1 10
No In In the In rework At the
error Process linie area customer
Fig. 9.1 Cost of defects when corrected at different points in the process
precisely coordinated. Defects must either not occur or, if they have nevertheless occurred,
not be passed on to the next process.
Methodologically, the following prerequisites are essential for quality-oriented
processes:
• Failure prevention before fault detection

• Fast and effective fault detection
• No passing on of defective parts
• Fast and structured reaction after fault detection
• Rapid and structured escalation where necessary.
Quality is measured with different metrics. In the lean environment these are: FTT (first
time through), FTR (first time right) and FPY/FTY (first pass yield/first time yield). All
metrics pursue the same claim of producing “right the first time” or “straight through”.
Each additional run of defective parts through production or moving to the rework area
increases costs and production time. Both worsen productivity. The ratios are calculated as
the ratio of defect-free parts to total production (Eq. 9.1). A result of 100% corresponds to a
defect-free production.
120 9 Perfection
Defect free parts

First time through ¼ ð9:1Þ
Produced parts
Part of a good understanding of process and quality is that quality is considered at three
process points: No defects are accepted from the previous process, the process does not
cause defects, and no defects are passed on to the subsequent process.
9.2 The Jidoka Principle
Sakichi Toyoda built a wooden hand loom in 1890 that could be operated very efficiently
with only one hand. In 1896 he developed the first power loom in Japan. He further
optimized this and in 1924, together with his son, produced a high-speed loom that could
weave fabric without interruption (Toyota 1995, p. 35). However, weaving defects in the
fabric resulted from the breaking of threads. The “Model G” loom had a special feature: if
one of the warp threads broke, a metal plate fell into the movement process and stopped the
loom. A fabric with weaving faults was not produced any further. The special feature of this
principle was that the loom did not have to be permanently supervised and stopped
automatically if a problem occurred. The system decoupled the human from the machine
and did not produce any errors. One employee could thus monitor and supervise 30 looms
at the same time.
The principle of stopping an automatic process when an anomaly occurred was called
“jidoka” by Sakichi Toyoda. It is translated with the artificial word “autonomation”. The
original Japanese character “do” in the middle of the word stands for “movement” and thus
the word “jidoka” stands for “automation”. By changing the character “do” for “move-
ment” with another “do”, the “human” was integrated into the word. The varied “do” stands
for “value creation”. Bringing the human spirit into automation reshaped the word
(◉ Fig. 9.2). Literally translated, it now means “automation with a human mind”.
" Jidoka Japanese word for “autonomation” and a principle that leads to the avoidance of
failures. No failures are passed on to the customer, as in case of problems an automatic
machine stop takes place and a message is issued. Thus, human and machine are separated
from each other, as the machine no longer needs to be monitored and acts autonomously. In
the Toyota Production System, jidoka is the first of the two main pillars of the production
system, along with Just-in-time (▶ Sect. 7.1).
Sakichi Toyoda has created a quality principle for production with jidoka. Machines
stop automatically when a deviation is detected or the end of the order has been reached.
Errors and scrap are avoided. The machine operator has the possibility to monitor many
machines simultaneously. The jidoka principle thus pursues two main goals, to ensure
9.2 The Jidoka Principle 121
Fig. 9.2 Japanese characters for

jidoka with variation of meaning
Automation
ji do ka
resp.
+ changed
hito (Human)
Autonomation
ji do ka
quality and to increase productivity. Quality is produced from the beginning and in every
process. The separation of human labor from the machine increases productivity.
The principles of jidoka can be applied to any process. This applies to processes with
machines and extends to completely manual processes. Systems report via sensors when
malfunctions and errors occur (e.g., breakage of a tool). In manual work processes, such as
an assembly, employees can stop the flow process by a quality alarm and quality stop.
Station markers let employees know if they are still working within the cycle time and
within their station, or if there is a problem with a delay.
Regardless of whether the process is automated or manual, notification that a problem
exists is signaled visually by lights or sounds. In Japanese, the term is “andon” (Toyota
1995, p. 180). Through this alert, a supporter is informed and requested.
" Andon Japanese for lantern or twinkle light. In the environment of jidoka, it is a
signaling element that indicates deviations. It signals at which process supporters and
leaders are needed for support.
Through this simple visual element, information is passed on and thus support is
requested at assembly stations or at machines. The arrangement of lamps is chosen in
such a way that they are clearly visible and can be recognized at a glance, e.g., on large
overview boards or along the production line, in the alignment of the installations.
" Andon Board The combination of several information lamps in one central location.
This serves the overview, the control and the transparency of a production in the sense of
122 9 Perfection
the shop floor management. Further key figures, such as the actual and target number of
pieces and the resulting difference, are currently displayed.
In the procedure of the jidoka principle, different process sequences intertwine.
Example
The following is a process flow when a problem occurs in an assembly (◉ Fig. 9.3):
A problem occurs in a process, such as quality defects, missing parts, tool or machine
failures (1). This is a deviation from the standard. In the following, an employee
recognizes this deviation and triggers the signal for the quality alarm or quality stop.
He pulls a so-called rip cord or presses an alarm button at the station (2). A system
would detect the problem through sensors and trigger it on its own. The process runs to
completion but stops at the latest after the cycle. Immediately after the alarm is triggered,
a visual display (andon) indicates which process has a problem (3). If necessary, this is
supported by an acoustic tone. The supporter assigned to the area can read from the
andon board at which station the problem is present and comes there for support in
solving the problem (4). After the cause has been eliminated, the next process can be
continued. ◄
The support function is performed by the line managers. In Japan, they are called
hancho (team leader) (▶ Sect. 29.1). They react immediately with immediate measures
and start the problem analysis and the problem-solving process (▶ Sect. 25.4). The
problem-solving process is carried out and validated in a similar way to optimization.
This ensures that the problem does not recur in the future.
If the quality alarm is not acknowledged after a specified time, the quality stop is
automatically triggered. The production line stops (Beutel and Baust 2002). If the line
stops for a longer period of time because it is a major problem, escalation occurs through
1 2 3
Soll 250 Ist 225 Delta -1

02 Bandgeschwindigkeit 3,3 m/min
Q 01 02 03 04 05 06 07 08 09
S 10 11 12 13 14 15 16 17 18
Fig. 9.3 Procedure of the jidoka principle using the example of an assembly station
9.3 Poka Yoke 123
the management levels. The longer the line stops, the more skilled managers come to solve
the problem. The decoupling of shifts results in a high degree of flexibility and there is
sufficient time to carry out problem-solving and achieve the daily target of the planned
number of parts. If necessary, fluctuations in demand can also be absorbed. Overtime is
compensated and in-house childcare and commuter buses are waiting until the end of work.
The follow-up shift usually does not start until 2 h later and an orderly handover is possible
(Bender-Minegishi 2018, p. 244 f.).
This example shows how several principles, and the organization are intertwined. The
support function must be in place. Simply copying a quality alarm with an andon board
without the necessary support function is not appropriate, but it does happen in some
companies. When the quality alarm is triggered, irritating situations arise.
In a jidoka system, a company’s strategy and goals are aligned with the zero defect goal.
Quality is a central goal. In companies with a different strategy, which focus on output with
the goal of a high number of parts and do not produce in a decoupled three-shift operation,
the principle does not work. If production is stopped due to a problem, the specified number
of parts is in danger and managers will do everything they can to ensure that no one stops
the line, even if the quality is poor. Companies that have copied the jidoka principle of
quality stop and andon board in order to be “lean”, have not introduced a support function,
and have not adjusted the target system, are operating lean only as an alibi (see ▶ Sect.
27.4). This is the cause of trouble when someone stops production in good faith to report a
mistake and instead of support, they feel the anger of the management because the unit
count target can no longer be met.
9.3 Poka Yoke
“Poka yoke” is a subordinate principle to the jidoka principle. The Japanese “poka” stands
for a careless or accidental mistake and “yoke” means “prevent” or “avoid”.
" Poka Yoke The principle is described as error avoidance or error prevention. The safety
feature is integrated in the process flow. The inventor is Shigeo Shingo. The principle was
called by him in the original version “baka yoke” (jap. idiot-proof). A co-worker
complained to Taiichi Ohno, that she found the term degrading, because she was not an
idiot (Zollondz 2013, p. 173). Thus, the term poka yoke (jap. error-proof) was born.
There is a distinction between the terms error prevention and error avoidance. Error
prevention is the soft intervention in a process, because the case of error occurrence has
already happened. It is not passed on to the next process. Error prevention is the hard
approach in which the error cannot occur in the first place.
124 9 Perfection
Fig. 9.4 Contact principle according to shape
It should be excluded that a process is executed incorrectly or incompletely. For this

purpose, forced sequences are designed. This allows errors in the process flow to be
detected and leads to a process stop. The faulty parts are not passed on.
Poka yoke is divided into three groups: the contact principle, the fixed value principle
and the process step principle.
The contact principle uses the shape and dimensions of parts. These are identified by
physical characteristics. This approach is used to sort shapes, such as in coin machines or
children’s toys (◉ Fig. 9.4). Faulty parts can be sorted out in this way if characteristics are
missing or if a workpiece has been inserted incorrectly into a fixture. It is not conveyed
further.
Example
Known are various plugs and sockets on the computer, such as USB, or the SIM card in
the mobile phone. These can only be plugged or inserted in a fixed orientation. Even at
the gas pump, the tank nozzle for diesel fuel does not fit into the tank filler neck of a
gasoline tank. Conversely, this system fails, refuelling a diesel vehicle with petrol is
possible. ◄
The fixed value principle monitors parameters and detects deviations from defined
values. These can be parameters, the weight or the counted quantity. In the picking of
parts, it is possible to check the weight and thus quantity deviations above or below the
required quantity can be detected.
The process step principle follows the sequence in a process flow or of program steps. A
subsequent process cannot take place before the preceding process. This is how deviations
from the process standard are detected. If the step sequence is not followed in an assembly
and a tool is not used, the workpiece is not transported on to the next station.
Example
In the case of automated tools, tool use can be registered by the actuation of the function
switch. With manual tools, a switch in a holder in which the tool is located can trigger an
impulse. A so-called pick-to-light system, in which picking processes take place based
on luminous indicators on compartments, is also detected by sensors. These check
whether the parts have been removed from the compartments. The next picking process
is not started until this has been done properly. ◄
These Expert Questions Relate to the Issue of Quality
• How is the expected quality of the products and services provided? What effort is
behind it?
• Are all processes stable and reliable?
• Is quality produced and not merely “tested?”
• Are the processes simple, stable and robust?
• Are the process and the product designed in such a way that the occurrence of defects is
prevented?
• Are detection and securing mechanisms integrated into the process (at the point of
origin) for known top faults?
• Are errors eliminated in the long term?
• Is the process capability of all critical characteristics ensured?
• Can mistakes due to confusion be avoided?
• Are errors that have arisen in upstream processes not accepted and further processing
prevented?
• Are processes stopped when errors occur?
• Are errors not passed on?
• Do errors occur at most once and are then solved sustainable?
• Are there andon boards and are supporters and leaders guided by them?
• Is there a support function when an andon lamp lights up?
126 9 Perfection
• Is the target system focused on the defined quality and not on the production of
quantities?
• Are working hours decoupled in such a way that breakdowns and problem-solving
processes can be worked through?
9.5 Summary
Summary on the Subject of Perfection

• The core for quality lies in the customer benefit.
• The later in the manufacturing process a defect is identified, the more expensive it
becomes to fix it.
• Quality is not to be “tested” at the end, but to be produced in the process. Only defect-
free parts should be passed on to the next process.
• The quality metrics in the lean environment claim to produce “right the first time”.
The key figure first time through is a ratio between defect-free and produced parts.
The goal is to generate 100% defect-free parts.
• The jidoka principle is automation with human mind (literally translated). The goal is
to avoid errors with an automatic machine stop when failures occur.
• Separating human labor from the machine increases productivity.
• Signaling that there is a problem is done visually by lamps and sounds. An example
of this is the andon board.
• The process flow when a fault occurs is fixed: (1) fault is detected, (2) quality alarm is
triggered (e.g., by ripcord), (3) fault location is displayed on the andon board
(acoustic support if necessary), (4) a supporter (usually a manager, jap. hancho)
comes for support and problem-solving.
• The problem-solving process is carried out and secured in a similar way to an
optimization. The problem should not occur again in future.
• Poka yoke (jap. prevent, avoid careless, accidental errors) prevents errors by securing
features. Examples from everyday life are USB plugs that only fit into the
corresponding ports or SIM cards that can only be inserted in one orientation. ◄
Questions
• Which metric is not a quality metric in the lean environment: first time through, first
time yield, first time left, first time right, first pass yield?
• On which machine did the jidoka principle originate?
• What are the two main objectives of the jidoka principle?
• How does the process work when an error occurs according to the jidoka principle?
What steps are taken?
• Why is the jidoka principle useful even though it is a disruption to the flow of
production?
References 127
• Is it possible to implement an andon board with immediate measures or a problem-

solving process in any company? Are there necessary requirements regarding work-
ing time, organization and target agreements?
• What are the three types of principles that poka yoke is divided into?
The solution to the multiple-choice question can be found at the end of the book (▶ Sect.
33.4).
References
Bender-Minegishi A (2018) Toyotas wahre Stärke: Erfolgreiche Arbeitskultur mit meisterhaften

Mitarbeitern. Campus, Frankfurt
Beutel T, Baust H (2002) „Stückzahl oder Qualität?“ – Zur Einführung des Qualitätsstopps in der
Montage der A-Klasse bei DaimlerChrysler Rastatt. In: Institut für angewandte
Arbeitswissenschaft e. V. (Eds) Ganzheitliche Produktionssysteme – Gestaltungsprinzipien und
deren Verknüpfung. Bachem, Cologne, p 54–64
Toyota (1995) Total guide to the Toyota commemorative Museum of Industry and Technology. The
Zollondz HD (2013) Grundlagen Lean Management – Einführung in Geschichte, Begriffe. Systeme
Managementparadigmas, Oldenbourg, Munich
Standardization
10
A tidy house, a tidy mind.

Vernacular
Overview
In order to run a stable production, order and cleanliness are central basic
requirements. The 5S approach introduces sustainable order. Standards ensure the
current best process and form the basis for qualification, quality, problem-solving
and process optimization.
Knalsch GmbH: What a Mess!

The introduction of the jidoka principle has made a difference in assembly. Produc-
tion continues to stabilize. Admittedly, the employees in their stations are more
challenged to pay attention to quality, and the line also stops again and again because
there are still failures. But production manager Kai Lupfer has now understood the
issue and supports the new process. Rework has been noticeably reduced. The
rework employees provide support directly in the production line for
troubleshooting.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_10
130 10 Standardization
Most of the identified quality problems result from messiness. In addition,

incorrect or defective tools were used. Dirty parts and filthy equipment are other
causes. Mixing unfinished and finished materials causes further problems. In addi-
tion, many jobs are performed quite differently. The instructions have been of no
avail. Constantly pointing out that work has to be done correctly has not helped.
“That’s human,” says Claudia Beck. She believes that mere announcements are
not enough.
“Should we draw consequences and issue a warning?” asks Karl-Norbert Alsch.
“No, we should clarify rather than order,” his assistant says.
Dr. Alsch becomes thoughtful, “Clarity? Is there anything not clear here? Well,
when I see the factory like this, it would be time to really clean it up again. But how
do we do that sustainably? And how do the employees work exactly according to the
rules?”
“We don’t need regulations. We need standards,” says Claudia Beck.
“I suppose you’re right, Mrs. Beck,” Dr. Alsch replies. “But shouldn’t we start
with ourselves? In the secretary’s office and on our desks, we can’t find anything
anymore because of the piles of paper.”
10.1 Standards
Standards originated in the slaughter industry. Since there were too few trained butchers,
unskilled, unqualified personnel were assigned the task of cutting up cattle. To ensure that
this was done correctly and without accidents at work, the procedures were standardized
and the employees trained. The standard description was based on the successful method
descriptions of the US military. Henry Ford first used standards for repetitive tasks in
automobile production. At Toyota, standards were introduced by Taiichi Ohno in the
1950s. Standardization is the basic foundation of Toyota’s production system.
In general, there are different definitions for standards:
• A widely accepted and applied standard or rule

• A request, instruction or order to carry out activities under defined conditions with a
specific objective
• A convention or agreement to which everyone generally agrees to abide
• A rule for social behaviour (behavioural norm), such as rules of conduct or traffic
regulations
• A maxim or guideline for one’s own behaviour
• A regular and uniform repetition of operations
10.1 Standards 131
" Standard In the lean understanding, the only, safest and most efficient way of carrying
out an activity at the present time. The goal is stable processes. In addition, the associated
tools and safety equipment are also defined. Standards are dynamic, which means that they
are constantly adapted through further improvements.
The continuous improvement of processes always leads to new standards. This clearly
distinguishes a standard from a norm. The norm defines topics for the longer term and for
the time being unchangeable. This is, in the sense of continuous improvement, not the
intention for lean processes. ◉ Table 10.1 shows what standards are and are not from a lean
perspective.
The objective of standardization is to make process results independent of people and
thus to achieve stable processes. This improves the cooperation with other processes or the
interfaces to other organizational units. Standards form a uniform understanding of process
deviations, errors and problems. They create the basis for systematic problem-solving and
for the continuous improvement process. Furthermore, standards support the idea of
reducing complexity.
Standards are adjusted after improvements and secure the status achieved by the
optimization. ◉ Figure 10.1 shows a familiar representation in which the standard is
shown as a wedge.
Standards result in different characteristics:
• Work procedures, work steps, sequences

• Stocks in circulation
• Materials
• Material supplies and material placement
• Operating resources, media
• Machine settings
• Shift handovers
• Qualifications
• Meetings
• Testing and cleaning.
Table 10.1 Standards from a lean perspective

Standards are Standards are not
• Recognizable and observable • Concealed
• Improvable • Static or set in stone
• Repeatable • Just a piece of paper
• Trainable • Interpretable
• Verifiable and measurable • Managerial default
• A basis for knowledge retention • Result of a planner
• A basis for error detection • Product of a foreman
• A hedge • Unnecessary
• A support for the levelling of the workload
Performance
Kaizen
Standards
Time
Fig. 10.1 Standards ensure success and continuous improvement (based on DaimlerChrysler 2000,
p. 7; Erlach 2013, p. 10)
Standards serve as a basis and result for the line balancing of workstations (▶ Sect. 6.3).
Cyclic activities are a prerequisite. Concerns arise, just as with the issue of waste avoidance
and tact time, that standards make work more stressful. This is the external view. In the
process, a standard leads to calmer and more ergonomic processes. It gives the employees
security.
Standards safe existing knowledge and form the basis for training and auditing. In
Japanese companies that work according to the lean idea, the staff is trained in detail on the
standardized work processes in training areas (jap. dojo). A routine procedure results from
practice and habituation.
Errors and problems arise when work is not done according to the standard. A classic
example is when a work cycle has not been finished. The processes are not completed. At
the next start of the process, a time-consuming check has to be made to see which process
steps have already been done (waste). Alternatively, work continues on the next part
without the activities on the previous product has been completed. This results in rework
and scrap. Such constellations occur after breaks or during shift changes at assembly
stations. A shift handover according to a clear sequence is a standard. Non-compliance
with standards always leads to new problems: If too little used oil is drained, the new oil
overflows, if load carriers are not processed properly one after the other; the supplier finds
his own products in the delivered empties (colloquially “full loads in empties”).
10.2 The 5S or 6S Methodology 133
Example
The Toyota company is standardized down to the last detail. For new factories, even the
water for painting is taken abroad from Japan to avoid deviations in the start-up.
The question why Toyota had recalls on a large scale is simple: If everything is
precisely standardized, possible quality problems also exist in a standardized way for all
models. For American and European manufacturers, the impression is that more
vehicles are being recalled than are affected - because work was not done according
to standard, and it has to be checked which models are actually affected. ◄
10.2 The 5S or 6S Methodology
The focus of “5S” is on the interrelated topics of safety, order and cleanliness. Thus,
5S-rounds take place to ensure safety and an orderly working environment. The 5S
methodology, which is applied in 5S workshops, is used to establish the status of an
orderly working environment.
" 5S Method A systematic approach that goes through five steps to create a sustainably
tidy and clean workplace. Workplaces should be guaranteed to work reliably and waste-
free according to standards and thus produce good quality. The five stages are described
with terms that each begin with an “S”.
Workplaces are designed to be employee-friendly, ergonomic and safe. This allows safe
work and makes it possible to eliminate waste among employees, machines and materials.
5S was developed at Toyota.
The 5S method pursues clear goals that are linked to standards, quality and waste
avoidance:
• Increased work efficiency through standards and process-oriented arrangement of all

items
• Immediate visibility of deviations by means of markers (minimum/maximum, target/
actual)
• Improved use of space through efficient arrangement of items and machinery and the
elimination of unnecessary items.
• Strengthening team spirit and morale by engaging employees as a team
• Better quality due to higher accuracy through regular cleaning
5S stands for five Japanese terms. These were translated into English with words that
also begin with an “S” (◉ Table 10.2). The five stages are passed through consecutively and
regularly.
Table 10.2 Terms for 5S in Level Japanese English

Japanese and English
1 Seiri Sort
2 Seiton Set in order
3 Seiso Shine/sweeping
4 Seiketsu Standardize
5 Shitsuke Sustain
Level 1: Seiri-Sort
At the beginning there is a tidy up. In order to document the workshop, do not forget to take
photos of the original state. This way, the before and after state can be compared later.
The important is separated from the unimportant. Sorting and selecting is a team activity
in larger areas. Conspicuous items and materials that are no longer needed are marked, e.g.,
with a sticky note or a red adhesive dot. This action is therefore also known as the “red tag
action”. Together, conspicuities are clarified, and unnecessary things are discarded. The
following things are disposed of unnecessary tools, old spare parts, other aids, scrap,
unnecessary copies, outdated documents, damaged and unnecessary office material.
As an alternative to the red tag action, green dots can also be used to mark what is still
needed. The advantage is that no things are marked red that are still needed by other people.
At the same time, the assignment to users becomes clearer when green dots accumulate on
an item.
If it is not immediately clear whether something is needed again or who is responsible, it
is collected in a special place. A kind of exchange market is also useful, where superfluous
tools or office supplies can be exchanged and used where they are needed. Material for
which there is no need is disposed.
Such an action should be carried out repeatedly once or twice a year, as new things are
always accumulating.
The first stage achieves the following results:
• Free space (storage space, cupboards, etc.)

• Reduction of the risk of accidents
• Reduction of inventories and thus costs
• Improvement of the visual appearance
• Improved customer impact
Level 2: Seiton-Set in Order

The second stage is about systematizing or arranging. Here, the necessary things are stored
or placed where they are needed. The arrangement should be according to the frequency of
use and the order of use. Items that are used together should also be placed together. Items
that are used frequently or by several people are placed centrally.
Fig. 10.2 Shadow board with screwdrivers
Example
For right-handers, for example, it makes sense to place the telephone on the left side of
the workstation so that they can operate the computer mouse or write while talking on
the phone. The opposite is true for left-handers. ◄
All tools are placed in marked and easily accessible locations. To identify completeness,
a so-called “shadow board” is used. These are shadow images under the tools or office
materials, so that missing items are easily identified (◉ Fig. 10.2). At the same time, things
are back in the right place when they are returned. Clear labels support this process and
avoid searching.
Example
Floor markings are used to identify storage locations for pallets and load carriers. Fill
levels can be visualized with minimum and maximum markings. The use of colours is
helpful. Information can be provided clearly and up to date on centrally positioned and
clearly visible boards. ◄
With the implementation of the second stage, the following results will be achieved:
• Creation of clarity
• Avoidance of handling and unnecessary transports
• Avoidance of delays due to searches
• Use of functional tools
• Error prevention
Level 3: Seiso-Shine/Sweeping
Stage 3 involves cleaning and tidying. For this purpose, appropriate cleaning utensils and
cleanser are to be provided at the workshop. Cleaning includes tools and machines. It has
several objectives: To ensure safety, to increase quality, to implement reliable processes
and to have a tidy appearance.
The following effects are achieved in the third stage by cleaning:
• Ensuring a safe and clean workplace

• Functioning of the facility (e.g., fire extinguishers, telephones, toilets, technical equip-
ment, ventilation, air conditioning)
• Waste disposal (waste bins, waste separation, document shredding, ashtrays)
• Increase product quality by reducing production defects and foreign bodies
• Professionalization of the appearance and atmosphere (e.g., no withered plants)
Level 4: Seiketsu-Standardize
Step 4 ensures the standardization of the results from the three previous steps. The achieved
states become the rule. The standardization through photos shows deviations. Responsible
persons take over the sponsorship for processes, topics and areas. Cleaning schedules and
intervals for implementation are established. Workplaces where different employees work
are tidied and cleaned after use, e.g., at a shift handover.
Level 4 leads to the following results:
• Systematization of order and cleanliness

• Availability of rules and experiences that can be communicated
• Minimization of effort and duplication of work by defining intervals and routines
• Development of a basic attitude among individual employees towards safety, order and
cleanliness as well as corresponding behaviour
• Detection of deviations at clean workplaces (e.g., leakage, loose screws, parts on the
floor, abrasion)
• Reduction of malfunctions on tools and machines
Level 5: Shitsuke-Sustain
In the last stage, self-discipline is practiced, in the sense of maintaining discipline. Since
this is a cultural aspect, it is usually the most difficult step. The initiative of and by the
managers is indispensable here. The importance of order and cleanliness is made clear and
communicated through a permanent assessment of the current state. All employees take on
the responsibility. By repeatedly checking the current state in comparison to the standard,
deviations quickly become visible. They are addressed and recorded and processed in
measures.
Results are visualized in the form of new standards, checklists, photos and key figures.
The sustainable improvement of the key figures “occupational accidents” and “quality”
follows.
Stage 5 results are:
• Fewer accidents at work

• Increased awareness of order and cleanliness
• Increased morale and motivation through praise and recognition for improved work
environment
The Sixth “S”: Shukan-Sustainable Discipline

Sometimes the method also appears as “6S”. Another “S” has been added to the 5S. In the
non-Japanese language area, this sixth “S” stands for “safety” and focuses on safety issues.
In Japanese, the sixth “S” stands for “shukan”. Shukan means “to get used to” and
describes the sustainable discipline of the 5S approach as an internalized need (Takeda
2006, p. 44 ff.). With sustained discipline, order and cleanliness become second nature.
Actions are no longer necessary because the routine is permanently followed.
Example
A Japanese company has placed small red bins in many places in their manufacturing
area. Anyone who finds a part that does not belong in their area, is lying on the floor or is
defective, places it in the red bins. The quality department collects the contents regularly
and takes care of recycling. The bins create transparency and a clear, lived process with
quality thinking and process understanding. The red bins are part of the corporate
culture and are a constant reminder of the 5S thinking. ◄
Audit
The implementation of 5S can be regularly reviewed and assessed within the framework of
a 5S audit. The assessment can be carried out by the company itself, by managers,
neighbouring departments or experts. The audit plan can include the topics as compiled
in ◉ Table 10.3.
Implementation 5S
The 5S methodology is often used as one of the first methods in a lean implementation. It is
implemented quickly, shows initial successes and attacks the points of waste and bad
quality. Visible successes generate a willingness to change among employees. Due to its
scalability, 5S can be applied to individual workplaces, entire departments and plants. 5S
can also be implemented by individuals. For example, ask yourself what your own desk
and drawers look like. Would another person be able to find his way around without any
problems? An example from an office shows the situation of a cabinet (◉ Fig. 10.3) before
and after a 5S workshop.
Even though the 5S method is sometimes ridiculed, it is a very meaningful method
which is often underestimated. It is important to go through all five or six stages and not just
Table 10.3 5S audit plan with categorization

Category Criteria
Sort • Workplace: Are only required things in the work area (tools, material,
documents)?
Set in order • Markings: Are lines and markings clearly visible and are they observed?
• Tools: Are standards defined for tool storage? Are these adhered to?
• Defective materials: Are there marked storage areas for scrap material?
• Labeling: Are shelves and racks marked and labeled in a standardized manner?
Shine/ • Cleanliness: Are the environment, the workplaces and the tools clean?
sweeping • Cleaning plans: Is there an actual and lived cleaning plan?
Standardize • Standard worksheets: Do standard worksheets exist and are they regularly
audited?
• Standards: Is there a visualization for process flows, materials and tools (shadow
board, cabinet labels)?
• Shop floor board: Are the documents on the shop floor board up-to-date and
properly organized?
Sustain • Rules: Can employees explain the 5S rules in their own words?
• Action list: Are identified 5S topics documented and processed in the action list?
• Communication: Do meetings on the list of measures take place regularly (within
the framework of shop floor management)?
• Regular check: Is the area regularly inspected to 5S?
the first two or three. Only in the further course of the remaining stages are the standards
sustainably adhered to.
And 5S is also a management tool because it means making decisions and taking
responsibility.
5S can be used in very different areas. It is classically about the workplace situation in
production and in the office. Data, suppliers, portfolios with products, markets and
customers or even employees can be considered with the methodology. The purpose is to
decide which products are still needed. In the case of employees, it is to decide who can be
deployed with which skills in a suitable position.
Example
A TV-known restaurant tester assists the restaurants in optimizing their operations. The
main methodology is 5S. Tidying up is done in the kitchen, in the pantry, in the guest
room and also on the menu. The goals are customer orientation, good service and
sustainability for the business. All this can only be achieved if the restaurant’s manager
plays his or her role accordingly and makes decisions. ◄
Using 5S as a method to start a lean implementation also carries risks. This is because
problem-solving and optimization steps should be run through first, otherwise 5S will
distract from the actual main problems (Bicheno and Holweg 2009, p. 78).
10.3 Visualization and Standard Description 139
Fig. 10.3 Cabinet before (left) and after (right) a 5S workshop
10.3 Visualization and Standard Description
Standards can be represented in different ways. This results in a hierarchy with five levels.
The higher the level, the more binding the standard. In ◉ Table 10.4, the types of standards
are assigned to a description of the levels of bindingness. The hierarchy is explained using
the analogy of a railroad crossing as an example.
Example
In road traffic, many standards and visualizations can be found in the form of coloured
cycle paths, arrows, traffic light colours, signs, lines, markings or defined distances. The
documentation of these standards can be found in the road traffic regulations. The
Table 10.4 Hierarchy of standard descriptions

Level and Example railroad
commitment Art Description crossing
1—Low Verbal Informally agreed but not Oral information
described
2 Explaining Described process Sign
documentation
3—Medium Visualized Color markings, symbols Traffic light
4 Clear Check against deviations Barrier
5—High Secured Do not allow deviations (Poka Underpass/bridge
yoke)
standards are learned in driving school. Failure to comply will result in accidents and
penalties. ◄
The shadow board in the form of markers mentioned in the previous chapter is also a
form of visualization of a standard (▶ Sect. 10.2). Checklists are part of standardization.
The writing of a standard for processes results in a standard description. In production,
forms for describing processes have proven their worth. In the standard worksheet and the
more detailed work step sheet, the execution of work is described in such detail that the
work safety, the required quality and the required efficiency are reproducible and thus
permanently guaranteed until the next improvement. For process checks, improvements
and problem-solving, the standard worksheet and the work step sheet are clearly displayed
at the workstations.
" Standard Worksheet Visual means to map workflows and identify potential problems.
The standard worksheet is a blueprint of the process including cycle times. It should
contain descriptions that are as accurate as possible to provide good reference points for
improvement.
The standard worksheet provides visual support for problem detection and enables the
identification of deviations in the process. It serves as a guide for employees and indicates
processes relevant to quality and safety. Like all standard descriptions, it is the basis for
further improvements.
" Work Step Sheet Shows the standard worksheet procedures required for the process in
detail and provides a consistent training method for employee qualification. It describes
individual work steps from the standard worksheet in detail with movement sequences,
partly also with photos.
10.4 Examples of Standards 141
The work step sheet shows in more detail how the standard work process is performed.
It captures key skills that are required to perform the standard work steps. The special
presentation identifies special hand movements as well as special quality and safety
aspects. Due to the higher level of detail, the work step sheet has the function of a training
document and leads to a collective understanding of the procedures within a work group.
Another document for special use in a flexible manpower system (FMS) (▶ Sect. 12.3)
shows the standard work combination sheet). Here, among other things, human activities in
combination with machines are considered and shown graphically.
An approach is the use of video systems with suitable time analysis software. The
workflows are recorded as standard and used for training. However, the effort for this is
very high. Every change due to improvements or rescheduling has to be recorded again. In
the same way, the process check cannot simply be carried out in the process station without
the video. Such a system can therefore only be an additional, supporting means (e.g., for
training).
10.4 Examples of Standards
There are many examples of standards and they can be found in many different places.
Standards are particularly in demand where accuracy and life and limb are at stake.
Examples
The aircraft industry is at the forefront of standards in both aircraft construction and
inspection. In operation, the pilot must adhere to many standards. Since the activities in
the cockpit are very complex, checklists are always used for standard procedures.
Hospitals are about people. But standards usually move in here only after mistakes
are made. The most common mistakes are mixing up patients and confusing the left and
right sides of the body. This is where visual solutions are used, such as patient
wristbands and markings on the body at the surgical site. ◄
The fast food company McDonalds is one of the companies with a very high level of
standardization. This is visible in many places, especially in the presentation of standard
procedures in the kitchen and cleaning.
Example
McDonalds’ supply chain is monitored using standards and even the buns are checked
for correct dimensions using a template with a red and green scale.
Even the sales standard is highly predefined. The salesperson at the checkout guides
the customer exactly through the ordering process that is stored in the cash register. For
example, a menu is always asked if it should come with fries and cola, since two-thirds
of customers usually order it that way. It also asks for ketchup or mayo. The standard
instruction explains why, because just as many customers choose ketchup as
mayonnaise with their fries. The order is thus similar to a flowchart, similar to a
computer program or the process step principle (▶ Sect. 9.3).
The salt sprinkling over the fries is explained in the standard statement with the
purpose and customer focus: “Because customers love well-salted fries from
McDonalds.” The standard for the saltshaker was explained with the visual, round
shape of the company logo “M”. Exactly this shape was used to guide the saltshaker
over the fries to sprinkle the right amount of salt worldwide. If you look into restaurants
these days, you won’t see this anymore. There has been an improvement to the old
saltshaker. The new one dispenses just the right amount and spreads it evenly in all
directions like an umbrella. ◄
Letters, lines, colours and symbols are ways in which standards can be well represented.
An inspection or assembly sequence in which several characteristics must be inspected, or
small parts must be assembled is simpler if these are fictitiously numbered and processed in
a defined form, such as a circle or a letter. If this clearly defined sequence does not exist,
different and no longer comprehensible paths are created, which entail the risk that a
characteristic or part is forgotten.
Example
While German car manufacturers work with three-digit numerical codes for the special
request options and reproduce them in a list where it must be checked whether the
number sought is included, Toyota uses symbols on the accompanying cards. The
number you are looking for is entered in a table in a fixed location. It is easier to find
and identify. In addition, the symbols have a connection to the topic, e.g., a snowman for
the air conditioning. The symbol can be found in the same way on the staging shelf. The
standard eliminates the waste of searching for it or picking it up incorrectly. Errors are
reduced. ◄
Many things can also be standardized in indirect areas.
Examples
A standardized roll container at each student office desk reduced the material consump-
tion for staplers and hole punches in a research center. While the consumption was
previously one stapler and one hole punch per new employee, the consumption now
dropped to zero and all resources were reused. The roll container was handed over full
on the first day and taken back full on the last day. Only the consumables were
replenished.
Another problem was with the dishwasher in the kitchen, which only washed cups.
Out of ignorance, the machine sometimes ran unnecessarily for two and a half hours in
the washing program for pots. No one could get to the coffee cups during this time.
Masking off the unnecessary program buttons and marking the correct short rinse
10.5 Role of Leadership in Standards 143
program button with a “1” and marking the start button with a “2” solved the problem
permanently.
A trash can, which was located near a fire door and prevented automatic closing in
the event of a fire if positioned incorrectly, was no longer incorrectly positioned after
being marked on the floor. ◄
But be careful, it can also be overdone. When drawing lines on the floor with the
marking of the location of the copier, the question must be asked who moves it or takes it
away, so that for the device the location must be found again. This would not be a standard,
but a waste.
In everyday life, standards can be found in parking garages by marking free parking
spaces and on the platform for boarding the Japanese express train Shinkansen.
Examples
More and more parking garages mark free parking spaces with a green light on the
ceiling, so that it is immediately recognizable where a free space is available. Sensors
detect the parked vehicle and switch to red. This is reminiscent of production lines and
andon lights, which are placed in alignment so that the entire production line can be
monitored at a glance.
The Shinkansen express train in Japan stops at each station so precisely that the doors
match the locations marked on the platform floor. Passengers can rely on the car to stop
at the marked location and thus quickly find their reserved seat. As a result, the train not
only has no delays, but also has very short stopping times. ◄
There are other examples of standards everywhere. For example, a Japanese Internet
video showing how to fold a T-shirt to standard in just three seconds.
10.5 Role of Leadership in Standards
Management plays a very important role in standard-based process observation. Standards

must be secured and checked for deviations. Deviations (◉ Fig. 10.4) arise from three
possibilities: The standard is not known or practiced, the standard is not performed with
discipline because leaders do not follow it, or there is a deviation because the new process
generates less effort and improvement leads to a new standard. In the former case,
awareness of the standard is necessary and appropriate training. In the latter case, the
deviation is positive because a new, improved standard can be generated. The case where
employees are not disciplined to meet the standards is a reflection of managerial discipline
and culture. If the basis of a production system (standardized work) is not lived, all other
principles will not work either.
Fig. 10.4 Deviation from standard: Containers are not at the visualized location
Example
An example of deviations from the standard are different plant settings depending on the
operator or shift. The best solution should be worked out jointly and across shifts. It is
disadvantageous if different groups work against each other and hide their own
standards from each other. Equipment settings are deliberately changed before the
shift change and advantages are not passed on. ◄
This is a leadership and culture issue. An integrated leadership approach implies a

management process when deviating from the standard.
Managers must be present and act at the point of value creation (cf. shop floor
management, Chap. 25). Only they are in a position to observe the process from an external
perspective (cf. chalk circle, ▶ Sect. 3.7). A regular review of standards can be carried out
in a “layered process audit” (LPA) by managers. Regular standard-based process observa-
tion is usually carried out with a five-cycle check (▶ Sect. 25.5).
Three questions leaders should ask themselves when deviating from a standard happen:
What should actually happen according to standard? What is actually happening? What is
the problem? Leadership means demanding standards and reacting to deviations. From a
Table 10.5 Use of standards from the perspective of management

Support Achievement of results Need
Stay on top of things Quality improvement Compliance
Have orientation Productivity increase Further development
Make decisions Process optimizations Update
leadership perspective, standards have different starting points for daily work and goal
achievement (◉ Table 10.5).
A pitfall is just briefing employees to do something better. It is the process or standard
that is wrong, not the employees. A universally popular measure, which is always on the
lists in companies, is: “Inform employees”. Employees are told to do this or that or stop
doing that. This is similar to the resolutions mentioned on New Year’s Eve. Skeptics know,
these last just as long as briefing employees. Everything remains “business as usual” and
leadership is surprised and annoyed that no one is doing what was ordered. The measure
“instruct, brief or inform employees” is not sustainable. It does not represent a change in
the process or an improvement in the standard. The cause of the problem was not found, not
dealt with and not solved. No effort has been made in reality. Employees are doing service
by the book. The solution is to scrutinize the processes for the cause of deviations,
determine the causes and remedy them with a new standard.
Compliance with standards should be rewarded by management in order to set an
example and encourage other employees to follow suit. Companies use e.g., challenge
cups here, such as a 5S award.
The Following Questions Serve to Question Standardized Work
• Do standards exist?
• Is the standard up to date?
• Is the standard the current best-known practice?
• Do the employees know the standard?
• Is work done according to standard?
• Are process flows described?
• Are standards trained?
• Are agreed standards adhered to?
• Are standards reviewed regularly?
• What happens in case of deviation from the standard?
• Are standards further developed and optimized?
• Where does an operation begin and end?
• Is the work process visualized and known to the participants and managers?
• What must come out at the end of the operation?

• What is needed for the implementation of a standard (information, tools, devices)? Who
supplies these prerequisites and in what condition?
• What should be done if the conditions for fast and clean work are not fully available?
• What can be done if the conditions should ever be out of order? How can the conditions
be quickly restored? What needs to be discussed and clarified with whom in advance?
• What questions about the job or work instructions or tasks received are unclear?
10.7 Summary
Summary on the Subject of Standardization

• In the lean understanding, standards are the only, safest and most efficient way to
perform an activity at the present time. Standards are the basis for good processes and
consistent quality.
• Standards are dynamic and can be further optimized and adapted at any time. They
are nothing fixed and therefore not to be understood as a norm.
• The prerequisite is cyclical, repetitive activities.
• The objective of standardization is to make process results independent of people and
thus to achieve stable processes.
• Standards secure the existing knowledge and form the basis for training and auditing.
At the same time, standards are the basis for training, monitoring and error detection.
• The focus of 5S is on the topics of safety, order and cleanliness. 5S stand for the
Japanese terms seiri, seiton, seiso, seiketsu, shitsuke. In English, the 5S are also
referred as: Sort, set in order, shine/sweeping, standardize, sustain.
• Due to its scalability, 5S can be used for individual workstations or for entire areas
and plants.
• Extension by a sixth “S” for “shukan”, which complement the sustainable discipline.
• Standards are divided into levels or hierarchies. The higher the level, the more
binding it is.
• Example forms of visualizing standards include shadow boards, checklists, standard
descriptions, form sheets, standard worksheets, and work step sheets.
• Standards are found, for example, in the aircraft industry, in hospitals, in fast food
restaurants and in the automotive industry. Standards are essential when accuracy
and risk to life and limb are important.
• Leadership means demanding standards and responding to deviations. The following
questions need to be asked: What should actually happen according to standard?
What is actually happening? What is the problem? ◄
References 147
Questions
• Why are standards important?
• What are standards the basis for?
• How do the terms norm and standard differ?
• What is understood by the continuous improvement process? What symbolism does
a standard assume here?
• What are the characteristics of standards?
• What are the clear objectives linked to standards, quality and waste prevention of the
5S methodology?
• What to do in the first step of the 5S methodology “seri”?
• What results or effects are achieved in the implementation of the 5S methodology in
the respective stages?
• How do the standard worksheet and the work step sheet differ from each other?
References
Bicheno J, Holweg M (2009) The lean toolbox – the essential guide to lean transformation, 4th edn.
PICSIE, Buckingham
DaimlerChrysler (2000) Mercedes-Benz Produktionssystem (MPS) – Systembeschreibung, 2nd
ed. 17.01.2000, DaimlerChrysler AG, Stuttgart. https://docmaster.supplier.daimler.com/
DMPublic/en/doc/MPS_-_SYSTEMBESCHREIBUNG.2000-01-17.DE.pdf. Accessed
1 Oct 2020
Kogan Page, London
Continuous Improvement
11
The better is the enemy of the good.

Variation of He who has ceased to be better has ceased to be
good!
Philip Rosenthal
Overview
The continuous improvement process (CIP) is based on the Japanese philosophy
“kaizen”. Optimizations take place permanently in cycles. One continuous process is
the PDCA cycle (plan, do, check, act).
Knalsch GmbH: And Now?

Production manager Kai Lupfer and Claudia Beck come together in Mr. Alsch’s
office.
Alsch greets her with a question, “Everything’s going great now, isn’t it?”
“Well, yes,” says Kai Lupfer. “Everything is good. But somehow we remain
standing.”
“Even worse,” says Claudia Beck. “We are falling behind again, despite
standards”.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_11
150 11 Continuous Improvement
Alsch denies, “That can’t be. What’s the problem?”

Kai Lupfer explains it, “Since the standards have been introduced, production is
indeed stabilizing, but things aren’t really progressing that much after the initial
successes.” And when Kai Lupfer asks his foremen, he hears more and more often
“We are well employed. Things are going. We’re on it.”
Claudia Beck says that sounds like “we saw and saw, but don’t have time to
sharpen the saw.”
Alsch asks how she means that. But Lupfer answers instead, “Well, that’s true,
though. We’re so tied up that we don’t even know where we stand anymore, whether
the standards fit and whether we can’t do something better”.
And Claudia Beck adds, “What we lack is an improvement process, and a
structured one. That’s what the Japanese call ‘kaizen’.”
Kai Lupfer is iriitated, “The Japanese make ‘koi senn’?” (Swabian dialect for “no
sense”).
Claudia Beck explains it like this, “No, ‘kaizen’. That’s Japanese, not Swabian.
Even if the Swabians have internalized saving money just as much in their culture
like the Japanese it’s improving.”
Alsch turns to his assistant, “You’ll have to explain this ‘kaizen’ in more detail,
Ms. Beck.”
11.1 Kaizen
Kaizen is composed of the two Japanese terms “kai” for change and “zen” for “for the
good” or “for the better” (◉ Fig. 11.1).
" Kaizen In essence, it is about permanently improving processes, services and products
in small steps, anchored in the culture. This always takes place with the involvement of the
employees. Kaizen is a philosophy or way of thinking that is carried independently by the
employees on a daily basis.
Kaizen has found in the English language the terminology “continuous improvement
process” (CIP). It is about the systematic optimization of processes. Employees should not
Fig. 11.1 Japanese characters

for kaizen
Change Good
11.1 Kaizen 151
Table 11.1 Comparison of improvement proposals in Germany and Japan. (based on Simon 1993)
Relationship between Japan and
Key figure Germany Japan Germany
Proposals per employee and year 0.14 32.35 231
Average bonus per proposal 440 Euro 2 Euro 0.005
Total bonus per employee 62 Euro 66 Euro 1.06
Implementation rate 39% 87% 2.23
Implemented suggestions per 0.06 28.15 469
employee
Net savings per implemented 1939 107 0.06
proposal Euro Euro
Net savings per employee 107 Euro 3007 28
Euro
Productivity increase 0.2% 5.9% 30
only submit suggestions for improvement. Rather, it is about the self-evident, daily
improvements of personal work business as a philosophy. Japanese are said to spend
75 min per week in optimizing their social and personal life as well as profession.
Unfortunately, the philosophical approach has been transmitted in the world only as a
“process”, which does not fully convey the idea of Kaizen.
Suggestions for improvement must be assessed immediately, tried out on the spot and
implemented consistently. As soon as a process for a improvement suggestion system is
created, whether as a real or virtual mailbox, the idea percolates and may never be realized.
A synonym in some companies is “idea destroyer” and at the same time destroys the
motivation of the participant. Realizing as quickly as possible instead of generating paper is
the goal. Who could assess and implement an idea better than the people involved in the
process? When it comes to implementation, the motto is: “Just do it” - realize it immedi-
ately and do it yourself. A benchmark for optimization ideas in Germany is 70 ideas per
employee and year. In Japan, the number is a multiple of this. Simon (1993) shows a
comparison between the differences in improvement suggestions in Germany and Japan
(◉ Table 11.1).
What distinguishes the Japanese in many respects is the copying, the subsequent
simplification, the further development and that in the most diverse context. It is recogniz-
able that they take something good and constantly improve it. This is ingrained in their
culture. Eberhard C. Stotko wrote in the foreword of Taiichi Ohno’s book “The Toyota
Production System” that besides consistency, continuity and continuous improvement
(kaizen) are also important. This is helped by a ceremonial striving for perfection that is
pronounced in Japanese culture (Ohno 2013, p. 12).
There is an appropriate amount of time for kaizen. Many are familiar with the saying
that there is no time to sharpen the saw because there is too much to saw. Kaizen or CIP
requires time. Only through this can something become better. It is important that an
improvement does not lead to an additional expenditure of manpower, space or money.

This would not be an optimization in the sense of kaizen. A saving must be seen here in
comparison to the effort. People are also considered carefully (▶ Sect. 27.1). It is not a
correct optimization if employees have more stress after the optimization, if there is a
compression of performance or if an additional effort has arisen. Better processes relieve
employees and eliminate waste, which is compensated for with value-adding activities.
Improvements are always possible, but usually become smaller when the first big wastes
are eliminated. As a comparison, imagine an empty glas that is filled with stones and
appears to be full. But smaller stones still fit into the gaps. When these are also filled, sand
fits into the glas and then even water. Optimizations are never complete, just as the glass is
not yet full after each further step.
In the case of workstation optimization, we speak of so-called point kaizen, optimization
at a process station, with a focus on waste and resources. Here, the employees themselves
become active. Hence the name “employee-driven CIP”. This also included the improve-
ment suggestion system or idea management. The methods used can be 5S,
standardization, poka yoke, quick changeover and machine optimization.
If optimizations are carried out on the system, this is a system kaizen. In comparison to
point kaizen with the optimization of a specific process, the system context is pursued in the
sense of value stream optimization and the entire process chain is considered. The value
stream serves as the basis for the system interrelationships. The implementation is planned
and carried out by experts. Hence the name “expert-driven CIP”. System Kaizen results in
leaps and bounds improvements in the overall process by means of a systematic and
holistic improvement approach. The implementation takes place project-like in phases:
Analysis, implementation, stabilization. The methods correspond to those of value stream
design: flow, tact, pull, kanban, pacemaker, one-piece flow.
11.2 Kaikaku
Kaikaku is the radical change compared to Kaizen (▶ Sect. 11.1). Kaikaku also involves
eliminating waste and achieving an optimised state.
" Kaikaku Change in the sense of innovation. The procedure can be described as a radical
improvement or reform.
Kaizen (continuous improvement) is to be distinguished from kaikaku (innovations). In

kaikaku, the existing is not optimized, but fundamentally questioned. The result is newly
designed processes. The difference can be explained using the example of the high jump.
11.2 Kaikaku 153
Example
While in the past the “straddle” was the usual high jump variant and this was constantly
refined, i.e., optimized, by the top athletes, an innovation came with the Fosbury flop,
which made a great leap to a new methodology. This new and higher level was further
built upon and optimized. ◄
There is a difference between kaizen, which optimises processes (▶ Sect. 11.1), and
kaikaku, which fundamentally redesigns processes. Both types of change have different
approaches (◉ Table 11.2). Kaizen is the antithesis of the classical, engineering understand-
ing of innovation.
While kaizen progresses continuously with many small improvement steps, innovations
result in radical and larger leaps (◉ Fig. 11.2). However, there is no further development
Table 11.2 Comparison of kaizen and kaikaku (innovation)

Topic Kaizen Kaikaku (innovation)
Process Stabilize and optimize Fundamental redesign
Procedure Systematic, action-oriented Creative, innovative
Behavioral Stay on track Breaking new ground
routine
Duration Long-term and continuous approach with Long planning period,
rapid implementation changeover interruption
Speed Slowly, many small steps Quick, a big step
Investment and Low, error reversible High
risk
Responsibility/ All employees Isolated experts
participation
Knowledge Consideration of experience, enrichment Specialists, no empirical
through learning knowledge
Success factor Human Technology
Systematic Simple, low-cost Complex, high-tech
Kaizen Kaikaku
Improvement
Improvement
Time Time
Fig. 11.2 Process representation of Kaizen and Kaikaku (based on Imai 2001, p. 59 f)
Fig. 11.3 Combination of Kaizen + Kaikaku

Kaikaku and kaizen cycles
Improvement
(based on Imai 2001, p. 61)
Time
between the innovation leaps. In some cases, there is even a slow regression due to a
diminishing advantage.
Since no further development takes place with kaizen, the processes stand still or fall
behind. Success occurs when both kaikaku and kaizen are mutually advancing, alternating
leaps in innovation with steps in improvement (◉ Fig. 11.3).
11.3 PDCA Cycle
“PDCA” stands for the abbreviation of the terms plan, do, check and act.
" PDCA Cycle Describes the iterative four-step cycle for continuous improvement or the
permanent learning process. The inventor was William Edwards Deming (1900–1993).
The cycle is therefore also called Deming circle or Deming wheel.
Instead of uncoordinated “fire fighting”, the Deming circle or PDCA cycle starts with a
structured approach to optimization and problem-solving. By properly going through the
four steps, a sustainable improvement is achieved. At the same time, the circle also serves
as a visual element, in that the individual quarters are marked in a continuous manner to
indicate the process status (◉ Fig. 11.4). The PDCA cycle is only properly completed when
the process has a sustainable effect. This proof usually takes longer and only then can the
fourth step be completed.
There are many misunderstandings about visualization. For example, the cycle is often
interpreted as a process status in the sense of “planned, started, halfway, completed”.
Sometimes the fourth step, which is the most important one, is omitted altogether. In
practice, there are also circles with a three-part division. This arose from the idea of
modelling the representation on the trademark of an automobile manufacturer. The steps
were reduced to three: “Started”, “Middle of implementation” and “Topic completed”.
However, this does not result in sustainability in improvement. The method was not carried
out correctly and so it remains daily problem-solving and fire exhaust.
11.3 PDCA Cycle 155
Fig. 11.4 PDCA cycle
Correctly applied, the PDCA cycle supports process optimization, problem-solving and
action processing. Problem solutions are also process improvements and can be equated.
By means of the PDCA cycle, topics are implemented consistently and sustainably. It is
analyzed, documented, implementations are checked, and standards are generated. In
Japan, the PDCA cycle serves as the basic structure for all work.
The content and sequence of the four steps is described below.
Plan
In the first step, “plan”, a detailed analysis of the initial situation takes place. The goal to be
achieved is defined. A very detailed plan is carried out, even though it is highly likely that
this will have to be corrected during implementation. This plan serves as a good preparation
for the following experiment. The procedure can be called an experiment. A hypothesis is
made to improve the subject or solve the problem. In this step, the search, evaluation and
selection of suitable possible solutions take place. Thus, this process is similar to a
scientific methodology.
For existing processes with available standards, the first step can also be called “stan-
dardize” (Zollondz 2013, p. 47).
Do
The second process step, “do”, is about implementing the ideas from the previous plan or
executing the standard. Planned improvement measures are implemented. As in scientific
experimentation, experiments are conducted, or a new process is implemented. During the
implementation, key figures are recorded by measurements and the progress as well as
occurring deviations are documented.
In this step, short-term corrective countermeasures are implemented immediately in the
event of problems.
Check
In step three, the “check”, the measures implemented are reviewed for their effectiveness.
The effects of the measures are determined. The final result is checked with the evaluation
of the collected data. It is checked whether the result meets the planned objective. For this
purpose, the targets are compared with the actual results, as in a target/actual comparison.
In this step, the previous hypothesis is validated. If the hypothesis is wrong, a correction
takes place and the cycle starts again with the step “plan”. If the hypothesis is successfully
confirmed, the next step is “act”.
As already mentioned, at this point, even if the solution is successful, the cycle is
sometimes ended prematurely. The discipline, which is necessary for the PDCA, only leads
to sustainability in the last step. Without the following assurance, unsuccessful improvers
merely rotate in the smaller “PDC circle” without the expected success.
Act
The last step is the actual main step of the PDCA cycle, which is also called “action” or
“adjustment”. Without this fourth and final step, all previous activities are in vain and a
waste.
The previous procedure is supplemented by the new results and secured by means of
new standards and process instructions. If the representation of the standards in the form of
a wedge is recalled (see ◉ Fig. 10.1 in ▶ Sect. 10.1), this wedge is pushed under the
rotating PDCA cycle for assurance. In the “act” step, it is like an anchor, which pulls the
wedge behind from the “act”.
This triggers further action. Training needs must be identified and those affected must be
trained in the improved procedure. The exchange with other areas also takes place here. An
insightful solution, which also works at other points, is shared as a good example. For
example, in an American company, photos before and after are taken for all improvements.
Videos of the good solution are shown in the morning meeting and published publicly on
the Internet (Akers 2016, p. 55 ff.).
This step takes longer than expected because it takes some time to see the effect. Only
after several new runs of the process will it become clear whether the new standard is
working, and problems are not recurring. The point is to monitor the changes in a
sustainable way. Once sustainability has been proven, the cycle has been effectively and
successfully run through and completed.
Finally, the remaining potential for improvement is analyzed and a decision is made as
to whether it should be transferred to a new plan. With the identification of new improve-
ment potentials, the PDCA cycle starts anew.
11.4 Improvement Kata
Linking the PDCA cycle (▶ Sect. 11.3) with a routine and using this as a management tool
was taken up by Rother (2010) in the book “Toyota Kata”. In it, he describes the routine,
which is part of everyday management at Toyota and which runs through the PDCA cycle
on a recurring basis by consistently asking questions instead of prescribing solutions. The
routine is simple and very successful, but implementation requires discipline. Many other
publications address the topic of kata (Schwarz and Lindner 2016).
11.4 Improvement Kata 157
Unclear area
Actual state: Target state:
We are This is where
currently here we want to go
Fig. 11.5 The path from the actual state to the target state leads through unknown terrain (based on
Rother 2010, p. 8)
" Kata Term from the Japanese combat sports. Kata stands for a fixed procedure, a
routine. In the lean environment, the term is used for a fixed routine for process improve-
ment. The cyclical run through the PDCA cycle, based on questions and the idea of
experimentation, leads to improvements and new insights. This implements a management
routine and an improvement routine.
The improvement routine behind the kata is described by the roles of coach and coachee.
The coach does not provide any solution ideas, but merely questions the procedure in the
last process step of the optimization with defined questions. This encourages the process
owner to experiment and think further. According to Rother (2010, p. 8), the path from the
actual to the target is never straight and likewise cannot be seen through from the beginning
(◉ Fig. 11.5). Only step by step one approaches the target state and recognizes new paths as
well as the solutions to be discarded.
The kata essentially involves forming hypotheses, trying them out in a test or experi-
ment, and learning from the result. After the test, the questions from the question routine
are asked. This leads to the next optimization loop.
The question routine after each trial is made up of the following five set questions:
1. What is the target state of the process?

2. What is the current state of the process?
3. What obstacles are currently keeping us from reaching the target state? And which of
these obstacles will be tackled next?
4. Therefore, what is the next step and what is expected to learn from this?
5. Until when can the result and what has been learned be viewed or discussed?
This approach realizes thinking with a scientific and experimental approach and at the
same time allows “learning by doing”. The coach asking the question learns along with this
process. The last question creates a corresponding commitment for the next steps or the
next cycle.
This questioning routine encourages thought and reflection on the pattern and approach.
Other leadership styles focus only on the goal and decide to move forward without
knowing the solution, rather than moving down the path through experimentation. Through
kata, the focus shifts not only to the goal, but also to the approach and optimization toward
the goal. Kata also strengthens communication and collaboration at the level of leadership
culture.
The improvement kata focuses on learning and thus also on employee development.
This type of leadership and employee development alone already leads to an improvement
in day-to-day business.
The improvement kata method has found its way into many companies. Both BMW and
Daimler Truck in Wörth have used these approaches to successfully realize potential in
personnel development and process improvement.
11.5 Sustainable Improvement
Maintaining optimization steps sustainably is a central topic in practice. Frequently, areas

and solutions fall back into old conditions and habits.
The most important element is the standards. These are to be demanded by the managers
(▶ Sect. 10.5). Not carrying out all the steps of the PDCA cycle is a common problem (▶
Sect. 11.3). To make progress, point kaizen and system kaizen must be carried out in equal
measure (▶ Sect. 11.1).
Problems arise when employees do not participate in the improvement process. Consis-
tently pointing out the benefits is one solution. Concerns about increasing the number of
units and compressing performance must not be generated. Rather, it is about avoiding
waste. No one will participate if the innovations lead to more work, but very much so if the
job is easier to do in the future. Working time is paid for. It is about the proportion of value
added within that time. In implementation, it becomes problematic if lean is misused as an
alibi for increased performance (▶ Sect. 27.4). People are at the centre of optimization (▶
Sect. 27.2).
A further and widespread problem is to use “CIP” as a key figure. After kaizen has to be
used as a philosophy and this has been transformed into a process via CIP, a CIP key figure
exacerbates the problem. Target values, such as an annual CIP of e.g., 5%, leverage the
optimization. The same applies to a target for the amount of improvement ideas per
employee. What happens if more could or will be achieved than was specified by a target
value? Then the potential is saved for the following year so that it is possible to achieve the
target again without any problems. What if a showcase plant has already implemented a lot
of improvements? Such a plant is penalized because it has no chance to achieve the target
compared to other plants even though it is benchmark. CIP or Kaizen must be implemented
where it is needed. Improvements interfere with the key performance indicators of a
company. Costs fall as a result of the measures and success is achieved (▶ Sect. 23.1).
This has an effect on competition.
Sustainable improvement is about the joint optimization of processes. Carrying out
improvement processes and problem-solving are like fitness training. Employees must be
allowed to practice so that they can master these processes. Processes require stringent
methods, such as the PDCA cycle, and extreme discipline. To stay ahead of the competi-
tion, the application and implementation of improvements must be continuous, whether in
the factory or in sports.
11.7 Summary 159
The Following Expert Questions Address Continuous Improvement
• Which activities are actually value-adding and target-oriented from the customer’s point
of view in order to fulfil the tasks?
• Which process is the cause of regular trouble because it could work or run more easily?
• How can the work or certain work contents be facilitated and the possibility of errors be
reduced?
• Are processes regularly checked for inherent waste?
• Is work being done to reduce the types of waste in the processes?
• Is the PDCA approach implemented in the daily processes?
• Is knowledge shared in the PDCA in the “act” step?
• In the PDCA, is the learning success documented and communicated in the “act” step?
• Does the PDCA measure sustainable process assurance in the “act” step? Does the
problem no longer occur?
• Does process optimization take place continuously and self-driven?
• Are good ideas shared openly?
• Are good ideas appreciated?
• Are good ideas adopted from other areas?
• Is there a striving for perfection (striving for the better)?
• Are there challenging, solvable goals?
• Is experimentation or hypothesis-driven problem-solving encouraged?
• Do they optimize instead of criticizing?
• How is the continuous improvement process (CIP) lived?
• Does the improvement kata come into play?
• Is the improvement kata used for staff development?
• Is the improvement kata run routinely and regularly?
11.7 Summary
Summary on the Subject of Continuous Improvement

• Kaizen stands for permanent change for the better. This is known as the continuous
improvement process. This means a systematic optimization of processes and not just
a improvement suggestion system.
• It is about the self-evident, daily improvement of the personal work business as a
philosophy. The goal is to realize improvement ideas as quickly as possible.
• Improvements shall not result in any additional expenditure of manpower, space or
money.
• There are always improvements. But they usually become smaller when the first big
wastes are eliminated.
• Kaikaku stands for innovation and compared to kaizen, is radical change. Here, the
existing is not optimized, but fundamentally questioned.
• Kaizen is the antithesis of the classical, engineering understanding of innovation.
• Point kaizen focuses on small optimizations. System kaizen optimizes holistically.
This is done step by step.
• PDCA stands for the abbreviation of the terms plan, do, check and act. It is a standard
approach to process optimization and should not be underestimated or taken too easy.
• The PDCA cycle is only properly completed when the new process has a lasting
effect. This involves analysis, documentation, checking the implementations and
creating a standard.
• Kata stands for a defined process. In the lean environment, kata stands for a fixed
routine for process improvement. The sequence of the kata follows the steps “form
hypotheses”, “try out” and “learn”. The subsequent question routine results in the
next optimization loop. The questions stimulate thinking and reflection on the pattern
and approach. The focus is on learning and employee development.
• Methods to implement solution approaches sustainably are standards, PDCA and
kaizen. ◄
Questions
• How many ideas per employee and year are considered the benchmark in Germany?
• What types of kaizen must be distinguished?
• How can kaizen and kaikaku be differentiated in terms of process, procedure,
duration, success factor and system?
• In which cases does the Deming circle provide support?
• What are the content and sequence of the four steps of the PDCA cycle?
• What are the roles in the improvement kata and what are their tasks?
• What are the five set questions of the question routine in the improvement kata?
• How can optimization steps be implemented sustainably, or the condition be
improved sustainably?
References
Akers PA (2016) 2 second lean: how to grow people and build a fun lean culture at home & at work,
3rd edn. FastCap Press, Ferndale
Imai M (2001) Kaizen: Der Schlüssel zum Erfolg im Wettbewerb, 1st edn. Econ Ullstein, Munich
Ohno T (2013) Das Toyota-Produktionssystem, 3rd edn. Campus, Frankfurt
Rother M (2010) Toyota Kata: managing people for improvement, adaptiveness and superior results.
McGraw-Hill Professional, New York
Schwarz T, Lindner AM (2016) Kata – Verbesserung zur Routine machen. In: Kamiske GF
(ed) Hanser. Munich
References 161
Simon H (1993) Stein der Weisen – Lean Management: Vergleich Japan Deutschland. Manager
Magazin 2:134
Production Area Assembly
12
Be hard to process and soft to people.

Saying at Toyota
Overview
When optimizing manual assembly processes under the aspects of lean production,
the topic of ergonomics must be put first. What is ergonomic is also optimal. Flexible
manpower systems enable a flexible response to different market fluctuations. The
productivity of the employees is kept at the same high level.
Knalsch GmbH: Inflexibility at the Assembly Stations

“Perfect, it runs!” Alsch leans back in his desk chair, satisfied. “Went pretty easy,
actually. Just optimize the processes and we won’t have any more problems.”
But: The rigid, inflexible assembly lines cause Knalsch GmbH a lot of problems
with short-term fluctuations in the number of pieces. The lines are too inflexible for
the fast response times demanded by customers and are therefore not profitable. The
investments for the planning and the conveyor technology were very high in the past.
The system seems too old and is too inflexible with regard to the increasing market
fluctuations.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_12
164 12 Production Area Assembly
“How can we create a more flexible system that is also more cost-effective? We
should also be able to control staffing requirements. Since we are careful to avoid
overproduction, there is often waiting time for employees. This time should be able
to be used more sensibly somehow,” are his expressed thoughts.
12.1 Manual Activities
Manual activities are to be planned without waste. At the same time, small ideas can have a
big impact on increasing added value.
At Toyota, the approach is called “one-touch assembly”. The principle has its roots in
product design (▶ Chap. 17). Products and processes are designed in such a way that the
product can be assembled with just one touch. Doing something repeatedly on the same
part should not happen. The parts are designed in such a way that subsequent adjustment,
setting or testing is no longer necessary.
Parallel working with both hands is often not taken into account. If two assembly
activities have to be carried out in parallel, this can be done simultaneously. Value-added
times are parallelized. Value adding takes place twice in the same time. Many methods and
analyses do not take this into account and plan the activities serially one after the other.
Example
Examples of parallel activities are the insertion of two light bulbs into the interior
lighting of a vehicle or the insertion of several clips, two of which are always inserted
simultaneously with one hand each. ◄
Another important principle is the “assembly triangle” when assembling parts on an

assembly line. The picking of material at a shelf and the walking to the product are not
value-adding, but necessary. To minimize the time spent on the non-value-adding ways, the
path is planned analogously to a triangle. The apex of the triangle is the position of the shelf
at which the material is picked, the two sides correspond to the paths to and from the shelf.
The long side of the triangle is the value-adding activity on the product (◉ Fig. 12.1). The
direction the worker moves is “front to back” at the product so that the product is facing the
assembler. This direction of movement reduces unnecessary walking, compared to walking
in the same direction as the product is flowing.
Example
To reduce travel times, tools and small parts are taken along by the worker. Open
toolboxes with compartments for material and tools have proven themselves for this
purpose. These can be equipped with the required material.
12.2 Ergonomics 165
1. Get material 2. Assembly 3. Return

from the shelf of parts to the shelf
Shelf Shelf Shelf
Fig. 12.1 Assembly triangle
The optimization is aimed at the use of belt pouches, which hold the tool like a
revolver and the small parts in small pockets. The advantage is obvious. The hands are
free for other parts and for value-added assembly, instead of for the necessary but not
value-added carrying around of toolboxes. ◄
There are many small solutions for optimization in assembly. Ultimately, the worksta-
tion must always be considered situationally. Optimization ideas have to be adapted or
developed appropriately. The analysis methods of process observation, such as the chalk
circle method (▶ Sect. 3.7), are suitable for this purpose.
12.2 Ergonomics
Ergonomic working is closely linked to the issue of safety and the avoidance of waste
(▶ Sect. 3.3). Due to demographic developments, ergonomics is playing an increasingly
important role in the area of manual production.
" Ergonomics From the Greek: ergon (work) and nomos (rule or law). The focus is on
reducing stress and overload caused by repetitive process steps in manual activities.
Increased, but not exclusive, attention is paid to older employees.
Manual activities must always be designed ergonomically. If an ergonomic solution

generates high costs or waste in the process, something has not gone properly, because
ergonomic solutions must not be expensive. What is ergonomic is also lean. What is lean is
also ergonomic. If workplaces are ergonomically designed correctly, they are inevitably
also waste-free and Lean. Any unnecessary movement is not only a waste, but also not
ergonomic.
In companies working according to lean principles, standardised work is the basis for
ergonomic workplaces. The safety of the employees is the top priority. An evaluation of
ergonomics takes place in detail. The topic of ergonomics is always also part of the
improvement process with the involvement of the employees concerned.
Example
At Toyota, this can be seen in the wrinkles that a shirt throws. The muscles under the
shirt behave identically to the fabric above. If it stretches or becomes wrinkled, the
posture is not ergonomic. In the most extreme case, eye movements and focusing on
writing are identified as non-ergonomic—always with the goal of achieving an improve-
ment that is more ergonomic, waste-free and lean. Due to the high level of
standardization, Toyota even goes so far as to evaluate every movement with a
corresponding point system in order to identify critical workstations. The target values
are constantly increased, as in the case of a crisis, to constantly improve. ◄
Movement is healthy and good. However, reducing walking distances by 50% (from
e.g., four kilometres per shift to two kilometres per shift) reduces a considerable burden and
waste. So, this is not an argument, even though it is often used.
Workplaces with poor ergonomics should always be analysed and improved. If the
implementation of an improvement measure proves to be difficult, the possibility of a
rotation over several workplaces is offered in order to create an appropriate compenzation.
Primarily, a long-term ergonomic solution should always be sought for such processes.
Example
Getting into a vehicle for assembly and working on the inside of the roof are usually
ergonomically difficult operations. Toyota employees have developed their own solu-
tion as part of kaizen. The result is a swing seat that allows the assembler to swing into
the vehicle. Simply leaning back with the ergonomic relief of the back is possible in the
vehicle, so that work for sunroof installation can be carried out more easily, quickly and
ergonomically. The necessary material is located to the right and left of the seat. The seat
is called “raku raku” and looks very simple (◉ Fig. 12.2). “Raku” is a Japanese word
meaning cozy, comfortable or relief. It was not until other companies replicated this seat
for their production that the ingenuity and sophistication that went into this assembly
seat was realized. ◄
Example
Audi optimized the assembly of the Audi A3 in Ingolstadt between 2007 and 2009. As
part of an optimization process, walking distances were reduced by a total of 22,000 km
across all assembly employees. Ergonomic solutions were used, such as a specially
developed ergonomic assembly seat (raku raku) for assembling the head airbag in the
vehicle interior. Audi received the Automotive Lean Production Award 2009 for this
(Rumpelt 2009a, b). ◄
12.3 Flexible Manpower System 167
Fig. 12.2 Illustration of a raku raku seat in a factory model of Toyota
12.3 Flexible Manpower System
The problem of inflexibility with balanced assembly lines is fluctuating customer demand.
When designed for maximum demand, the installed capacity is rarely used. It is uncertain
whether the expected demand will actually occur. One solution to this is capacity expan-
sion through flexible capacity adjustment. This is done through flexible working hours,
overtime or extra shifts. Other possibilities are insourcing and temporary employment or
outsourcing as an extended capacity.
The lean solution is the flexible manpower system (FMS). This enables reactions to
different levels of demand and avoids expensive investments for an installation. A reduced
investment risk results from low costs for machinery and equipment as well as for free
space and lower inventories. Adaptation to fluctuating unit numbers results in an invest-
ment proportional to the number of units. The cell concept and the lower investment allow
capacity leaps by building more cells.
" Flexible Manpower System (FMS) A production cell, which is constructed in the form
of a U-cell. In an FMS, productivity is always the same, regardless of how many employees
are working within it. This results in flexibility in terms of output. A flexible manpower
system can be adapted to different levels of demand in order to be able to produce with
optimum employee productivity in any demand situation. The term in Japanese is “chaku
chaku” (jap. for “load, load”).
Table 12.1 Advantages and effects of a flexible manpower system

Advantages Effects
Avoidance of overproduction Less stock in circulation, less surface area, less handling
Smoothed production Better capacity utilization
Smoothed material flow Defined lead time
Standard procedure Basis for improvement
Flexible use Reacting to fluctuating customer demand
Pieces/day 1 Employee 2 Employees 4 Employees
6.000
5 040
5.000
3 840
4.000
3 360
3.000
2 520
1 680 1 920 1 680 1 920
2.000
1 260
840 960 840 960
1.000 480
420
0
One shift One shift Two shifts Two shifts Three shifts
and one hour and one hour
Fig. 12.3 Options for controlling the capacity
The flexible manpower ystem is suitable for parts with a size and weight that can usually
still be handled by the employees themselves or can be pushed on via a device. Due to the
material flow in the form of a “U”, the beginning and the end of the process chain are at the
same point. When a part is finished, a new part is fed in. Within the line, the parts change
workstations in cycles. The standard stock in circulation of parts remains the same in the
cell and a one-piece flow takes place without push or pull (◉ Table 12.1).
The scalability of such a cell results from various possibilities (◉ Fig. 12.3). As with any
production, flexibility can be generated by other working time models. The flexible
manpower system can also be easily multiplied, as the simple U-cells can be implemented
with relatively little investment in space. The most interesting scalability occurs with a
flexible manpower system through the number of employees used. For example, it can be
operated by a single employee who works through the entire process with one product. Or
12.3 Flexible Manpower System 169
1 1 2 1 2 3 1 2 3 4
Tact time: Tact time: Tact time: Tact time:

60 seconds, 30 seconds, 20 seconds, 15 seconds,
one employee two employees three employees four employees
60 pieces per 60 pieces per 60 pieces per 60 pieces per

employee/hour employee/hour employee/hour employee/hour
Fig. 12.4 Flexibility through different employee deployment at the same productivity level
every station is manned up to the maximum output in order to achieve the maximum
output.
The system is aligned with employee productivity. This always remains the same.
Because whether one employee produces one product or four employees produce four
pieces in the same time, the productivity does not change (◉ Fig. 12.4). A difference arises
in the scope of the activity. A single employee handles the entire assembly scope indepen-
dently. In the case of several employees, the work steps are divided up and assigned. In full
occupancy, one person works at each station.
The process can follow the so-called “hare hunting”, in which all employees in the cell
run after each other and each produces its own product. But since walking is a waste, the
activity is divided among several employees. There are handover points, like in a relay
race. With this principle of operation, there is less walking, and the product quality is
ensured according to the multiple-eye principle. The process is usually counterclockwise,
so that right-handed people can push the product on with their right hand.
The flexible manpower system approach is also used for working on equipment. Instead
of using individual inserters on distributed machines or conveyor belts between plants, the
employee loads and transports the parts in the U-cell. Hence the Japanese term “chaku
chaku” for “load, load”. After loading, the employee starts the machine and takes the
finished part to the next machine. He loads it there. Then the machining process is started.
These steps continue repetitively. The special feature lies in the rethinking of employee
deployment. While conventional machines should run with as little downtime as possible
and the employee waits in front of it (waste), this principle is reversed, because in the
flexible manpower system the machine with the completed process waits for the human.
Operation time
No. Operation man. auto. way 10 20 30 40 50 60 70 80 90 100
1 Operation 1 6 4
2 Operation 2 8 60 2
4 Operation 4 8 2
6 Operation 6 7 3
7 Operation 7 5 5
Fig. 12.5 Example of a standard work combination sheet
The line balancing of a flexible manpower system with different numbers of employees
and the consideration of the separation of human and machine can be planned in the
standard work combination sheet (Takeda 2006, p. 140 ff.). The standard work combina-
tion sheet puts the stations and timing into a tabular form (◉ Fig. 12.5). Way times are
included when moving from station to station (row to row). Machine times can be seen if
the cycle time of the machine is drawn further on after leaving the station. In this way, it can
also be checked in engineering whether the machine has completed the work step before
the employee returns to the station.
Other manual activities, such as visual inspections or the joining of parts, can also be
integrated and are partly possible on the way to the next station. The path and transport,
which are considered wasteful, thus become value-adding time.
A logistician takes over the material supply. It is named after the Japanese wobbling
beetle “Mizusumashi”. The wobbling beetle represents the characteristics of the logistician,
because the beetle runs on the surface of the water, moving rapidly in circles with a high
degree of efficiency. This means that the material flow is from the outside, around the cell,
to the inside. This separates product flow and material supply. The supply functions
according to the pull principle and via a supermarket located nearby (◉ Fig. 12.6)
(Hartmann 2008, p. 56 ff.).
For planning a flexible manpower system, there are other planning and design principles
in addition to the standard work combination sheet. These are:
• Standardized stock in circulation

• Narrow and deep installations
• Focus on ergonomics
• Material supply from outside
• Machine waits for human
12.4 Flexible Employee Deployment 171
Tugger route
Material supply from

Supermarket
the outside
Milk-run Kanban
Fig. 12.6 Layout of a flexible manpower system with logistics supply (based on Hartmann 2008,
p. 58)
• Front sides of the machines in alignment

• Self-built and low investment.
A more detailed description of these design principles in engineering follows in a later

chapter in the context of lean engineering (▶ Sect. 19.1). For a lean engineering approach,
the cardboard engineering methodology is suitable for a flexible manpower system (▶
Sect. 19.3).
12.4 Flexible Employee Deployment
The flexible manpower system and any other flexible assembly depend on the respective
working time model. The use of different shift models, time accounts for overtime and
reduced working hours as well as suitable wage systems are the prerequisites for flexible
employee deployment.
A suitable working time model is only a basis. With the introduction of FMS, the
requirements on employees increase. The training and skills of the employees are important
for this. They must be able to work in different cells, i.e., for different products. In the case
of low-capacity utilization, the entire scope of work for a product must be mastered from
the single station to the complete product scope in tact time. In an optimized factory, ideally
every employee masters every product at every station.
The demands on the employees are high. Appropriate qualification with qualification
planning and the documentation of skills are necessary for this. Companies need flexible
options for personnel management. This also requires the availability of employees on call,
as practiced for example by the power tools manufacturer Festool (Regber and
Zimmermann 2007, p. 331).
The Following Questions are Relevant in the Topic of Manual Activities

and Ergonomics
• Have measures been implemented to increase ergonomics in a waste-neutral manner?

• Are workplaces and processes usable for all employees?
• Are there workstations that can be used for different operational restrictions?
• Are all processes free of burdens for employees and the environment?
• Are working heights suitable?
• Are activities designed so that they are not monotonous, repetitive or tiring?
• Are tools, switches, handles, etc. easily accessible?
• Are main working steps outside a reach of 60 or 90 cm?
• Are there only light loads to be lifted?
The Following Questions must be Answered in the Topic of Flexible Manpower

Systems
• Are the assembly workstations flexible to deal with fluctuations?

• Can assembly cells be quickly duplicated?
• Are rigid linkages, such as conveyor belts that bring the goods to workstations, avoided?
12.6 Summary
Summary on the Topic of Production Area Assembly

• Manual activities should be planned in a waste-free and ergonomic manner.
Workplaces should be designed in such a way that parts can be assembled with a
flick of the wrist.
• Assembly tasks can be performed in parallel with both hands. Value creation thus
takes place twice in the same time. The use of belt pouches, which hold tools and
small parts, allows free hands for value-added assembly.
• Ergonomics focuses on reducing stress and overload caused by repetitive, manual
tasks. Safeguarding is achieved through standardization. This creates safety.
• Toyota evaluates movements with a point system to identify critical workplaces. If
workplaces with poor ergonomics cannot be avoided, rotation is an option.
• With the flexible employee assembly system, productivity is always the same,
regardless of how many employees work in the production cell. Scalability results
from working time models and the number of employees deployed. Flexible man-
power systems support the lean concept and can react flexibly to fluctuations. The
basic principle is the U-cell.
References 173
• When using a flexible manpower cell with one worker, this worker walks through the
complete process chain in the cell with all activities. When used with several
employees, the transfer points are defined. This saves distances and thus waste.
• The standard work combination sheet puts the stations and timing into a tabular
format.
• The task of logistics is to feed material from outside the cell to the inside.
• Planning and design principles for a flexible manpower system include the standard
work combination sheet, standardized stock in circulation, narrow and deep equip-
ment, focus on ergonomics, material supply from the outside, waiting machines for
human, aligning the fronts of the machines in a line, and self-builds with low
investment.
• With the introduction of flexible manpower systems, the demands on the employees
increase. They must be able to work in different cells with different products and
master the entire scope of work, from the individual station to the complete product
scope, in tact time. ◄
Questions
• How does the One-Touch-Assembly principle work?
• What is meant by the assembly triangle?
• Can ergonomics and lean be equated?
• What solutions can be used to enable flexible capacity adjustments?
• What are the advantages of a flexible manpower system and its effect?
• How can the flexible manpower system approach be applied to plant utilization?
• What is the requirement for flexible employee deployment?
References
Hartmann T (2008) Bestände sind böse: Produktion als strategische Waffe–Ein Arbeitsbuch für
Regber H, Zimmermann K (2007) Change Management in der Produktion–Prozesse effizient
verbessern im Team, 2nd mi, Landsberg
Rumpelt T (2009a) Gewappnet für ungewisse Zeiten. Automobil-Prod 10:26–28
Rumpelt T (2009b) “Lean” besser durch die Krise? Automobil-Prod 12:20–21
Takeda H (2006) The Synchronized Production System–Going Beyond Just-in-Time Through
Kaizen. Kogan Page, London
Production Area Manufacturing
13
Cleaning is checking.
Hitoshi Takeda
Overview
In automated production areas, overall equipment effectiveness (OEE) plays a central
role in identifying losses and waste. Quick changeover is a lever for reducing batch
sizes or increasing unit output.
Knalsch GmbH: Machines

“That’s all well and good with the batch size reduction,” says Mr. Alsch. “But our
foreman at the press lines, Hubert Erhard, says that’s not possible because then we’d
have to changeover the machines much more frequently and that takes too long. Then
ultimately no more parts come out of the press area.”
Susanne Moos, the head of egineering, says, “And what’s more, the production
facilities don’t produce the output that we defined with the manufacturer of the
machine. The machine manufacturer declares that everything is in order, that he is
not to blame. The dimensioning was in line with the requirements.”

https://doi.org/10.1007/978-3-658-36087-0_13
176 13 Production Area Manufacturing
13.1 Automation
The automation of process sequences is used for monotonous and difficult work. Even
when accuracy is required, machines and systems support people. Automation of activities
lends itself to low product variance and low quantity fluctuations. A high variance in the
product leads to variability and many set-up processes on the machines and systems. In the
case of larger fluctuations in the number of pieces by the customer, machines are not fully
utilized, or the maximum possible output is exceeded.
Different organizations and departments pursue different interests when purchasing a
machine (◉ Table 13.1). The larger the organization, the more diffuse the necessary clarity
for the actual production task.
Machines are inflexible and expensive, even if they can save personnel costs. In
addition, there is the problem of reduced availability in the event of malfunctions for
maintenance and servicing. Specially trained experts are needed for changeover and set-up.
The problem lies essentially in the complexity that machines bring with them in order to
process simple tasks. Humans are flexible and a better solution for challenging, difficult
and complex tasks.
◉ Table 13.2 shows a stage model based on Takeda’s way of thinking for converting
manual activities to automated processes (Takeda 2006a). The so-called “great divide” lies
between stages three and four (Rother and Harris 2001, p. 38 ff.). The system changes from
a manual to a more expensive automated work system.
In machines and systems, waste, variability and inflexibility are to be avoided. Before a
process is automated, waste must be eliminated. Otherwise, the waste will be automated
as well.
A bottleneck (▶ Sect. 6.1) is a problem in automation. Bottlenecks in machines can only
be eliminated with a very high effort. Production in flow must be specified very precisely in
the engineering phase.
A lost tact cannot be recovered. A process cycle for a single part that is lost before or due
to a bottleneck cannot be made up. Even if other machines produce more parts before the
process, the time lost after the bottleneck cannot be catched up. The same is true for
products that have to go through the process a second time. The parts have to go through
the process again and another part has to wait for it. The processes after the bottleneck also
have to wait for this part. As a result, customer orders are completed later with the same
delay time as the time taken at the bottleneck for the lost process cycles. The output
problem of the bottleneck corresponds to that of the entire line.
Example
The following bottleneck phenomenon shows the complexity of plant systems as well as
ignorance in machine synchronization and the lack of flow thinking in plant planning. It
is a trap that is stepped into again and again.
13.1 Automation 177
Table 13.1 Different interests in the purchase of machinery

Organizations or departments Interests
Equipment manufacturer Sell many components, make profit
Finance Minimal costs for acquisition and operation
Controlling Budget compliance (no overrun, no underrun)
Purchasing Favourite supplier, discount
Engineering Technology, complexity
Production Reliability (availability, quality)
Maintenance Easy to repair and maintain
Table 13.2 Stages of conversion from manual activity to automation (based on Rother and Harris
2001, p. 38)
Stage Loading Operate Unloading Workpiece transfer
1 Manual Manual Manual Manual
2 Manual Automated Manual Manual
3 Manual Automated Automated Manual
4 Automated Automated Automated Manual
5 Automated Automated Automated Automated
A machine that delivers the parts in customer tact time describes the constellation.
The machine following the process works according to the transfer principle by con-
veying several parts over several stations. The special feature of such a system is that the
cycle always starts at a fixed time and not when a part is ready and waiting on the supply
line. Both machines are connected with a conveyor belt, but this does not necessarily
play a role.
If, in this situation, it is added that the second machine runs faster than the line cycle,
it becomes a bottleneck despite the higher speed. The widespread opinion is that a faster
machine in the process can process parts more quickly in the event of malfunctions or
pass parts through more quickly. This results in planning and optimization, because a
faster cycle is advantageous, according to the popular opinion.
Regardless of the machine pushing the parts to the next process, the problem with
material pickup is in the machine process. Because the machine is running slightly faster
than the parts arriving at it, and the cycle has already started before the part has arrived at
the machine, a cycle without a part (idle cycle) goes through the entire machine. The part
arrives too late to be processed in time because of the higher speed. It waits for the next
cycle. The small jam is caught up again by the accelerated machine after a while and
processed until the area is free again. Then the problem arises again when a new part
arrives at the machine too late compared to the fast cycle. Again, the next cycle is lost.
Slowing down the machine to the line frequency, although this may sound paradoxi-
cal, can solve the problem. If a bus driver leaves before the departure time, the passenger
who is on time is no longer taken. His seat remains vacant, and he takes the seat of
another on the next bus that another passenger cannot take. The whole thing keeps
shifting until there is another punctual bus. ◄
These constellations can only be identified and taken into account through long process
analyses or simulations. Problem-free process chains are those that are planned and
operated according to the approach of the flow principle and line balancing.
In the case of materials handling between machines, attention must be paid to automa-
tion. Material transport, as is well known, is a waste. The use of conveyor belts or robots is
an expensive and static installation of unnecessary transport work. After implementing the
flow principle and a layout with short ways (▶ Sect. 5.2), a process adaptation makes
sense. Instead of implementation with automation technology, low-cost solutions should be
considered (▶ Chap 20). Chutes based on the gravity principle are less expensive to
purchase and require neither energy nor maintenance compared to conveyor belts.
Example
Automation solutions result in the support of humans during order picking. To avoid
errors in quantity or product, systems based on the pick-to-light principle are used. This
means that the quantity is displayed on the shelf and the pick is acknowledged
automatically or manually. Faulty picking is ruled out by this poka yoke solution.
However, such systems are expensive. ◄
13.2 Overall Equipment Effectiveness
The many factors influencing a plant’s productivity are summarized under the umbrella
term of overall equipment effectiveness.
" Productivity Ratio based measure on the economic principle and the measurement of
time. The productivity of work is considered. Productivity is the ratio between efficiency
and effectiveness; this means an output without losses and waste.
The known wastes (▶ Sect. 3.4) and losses inhabit the productivity at plants. The
category of losses includes reduced plant utilization and reduced plant effectiveness. To
increase productivity, the levers must be identified and improved.
The key figure OEE is used to measure the overall equipment effectiveness. Theoreti-
cally, OEE can also be used as a key figure for assembly lines.
" Overall Equipment Effectiveness (OEE) Key figure that describes the overall equipment
effectiveness (OEE). With the OEE, machines and plants can be measured and analyzed for
their productivity.
13.2 Overall Equipment Effectiveness 179
24 h
Utilization
Operating time
losses
Availability
Production time
losses
Used production time / Performance

produced parts losses
Quality
Good quantity
losses
Fig. 13.1 Illustration of the loss of effectiveness
In the case of OEE, only the number of good parts (▶ Sect. 9.1) is considered in relation
to the possible capacity in the planned working time. All losses in effectiveness become
transparent and offer starting points for improvements. Four types of effectiveness losses
are distinguished, three of which are included in the key figure OEE: Utilization losses,
availability losses, performance losses and quality losses (◉ Fig. 13.1).
Utilization losses is not included in the OEE. A loss of utilization time is the planned
downtime of a plant during which no production is scheduled. This is the case when the
plant is not occupied, as well as during breaks, plant meetings or strikes. Planned mainte-
nance and repairs are also included. Utilization losses are calculated using the utilization
factor, the ratio of the possible operating time to the maximum time of 24 hours per day
(Eq. 13.1). The calculation is also possible with the quantity of parts during the
corresponding time instead of the time.
Operating time
Utilization factor ¼ ð13:1Þ
24 h
The availability of a plant depends on downtimes. The availability factor identifies

topics in which the plant is not available for technical reasons. These can be, for example,
times for adjustment work, tool change and set-up, as well as for failures and malfunctions
(Bicheno and Holweg 2009, p. 90). The calculation is made by the ratio of the production
time to the possible operating time (Eq. 13.2).
Producton time
Availability factor ¼ ð13:2Þ
Operating time
Performance losses result from the non-use of an available plant. These can result from
short downtimes, idle times, ramp-up, run-down or production at reduced speed. The
output in the form of the achieved production quantity during the production time (pro-
duced parts) is compared to the quantity possible during the production time (target output)
and results in the perfromance factor (Eq. 13.3).
Produced parts
Performance factor ¼
Target output in procudtion time
Used production time
¼ ð13:3Þ
Production time
The third factor is the quality losses, which are calculated using the ratio of the number
of good (defect-free) parts to the total (actual) output. The defectively produced parts that
are rejects or go to rework are taken into account. This is calculated as the quality factor
(Eq. 13.4).
Good parts
Quality factor ¼ ð13:4Þ
Produced parts
Overall equipment effectiveness (OEE) is calculated by multiplying the factors for

availability, performance, and quality (Eq. 13.5).
OEE ¼ Availability factor Performance factor Quality factor ð13:5Þ
Alternatively, a calculation using the quotient of the number of good parts and the
number of parts possible in the operating time leads to the result (Eq. 13.6).
Good parts
OEE ¼ ð13:6Þ
Operating time
Cycle time
Example
By multiplying the three factors, the OEE falls to a low effectiveness value. For
example, an availability factor of 90%, a performance factor of 95% and a quality factor
of 97% result in an OEE of less than 83% (Eq. 13.7).
OEE ¼ 0:9 0:95 0:97 0:829 ¼ 82:9% ð13:7Þ

13.3 Total Productive Maintenance 181
Very good values for the OEE are 85% and above. The average value for the OEE for
non-optimized machines is 60%.
A detailed calculation of OEE can be found in the summary of this chapter (▶
Sect. 13.6). ◄
To achieve the required quantities, longer operating times are used or further inefficient
capacities are used in the form of additional machines provided. However, this does not
change anything in terms of OEE.
The OEE can be increased through optimization measures. All three factors are possible
levers with different measures. Availability losses can be improved by good maintenance
and machine support (▶ Sect. 13.3), as fewer unplanned malfunctions occur. Quick
changeover (▶ Sect. 13.4) also has a very positive effect. The improvement of the
performance factor can be achieved by organizational measures, such as material supply
or quick reaction to deviations. In the case of quality losses, measures from the subject area
jidoka (▶ Sect. 9.2) and poka yoke (▶ Sect. 9.3) can be effective. And also total productive
maintanance (▶ Sect. 13.3) leads to better OEE.
Example
A possible measure for increasing the number of units away from OEE is the idea of not
shutting down machines during breaks, but instead letting it run through. Does an
operator need to be around if the machine would stop anyway during a malfunction?
It’s a matter of habit and organization. Just like the consideration of whether all machine
operators have to go on break at the same time or whether there is always someone
on site. ◄
13.3 Total Productive Maintenance
Many problems and malfunctions on machines and plants can be solved by preventive
maintenance and servicing according to standard. As with a vehicle, it is a matter of
necessary maintenance cycles and inspections to keep it in good working order. And
between inspections, minor cleaning and maintenance activities are also necessary. If all
measures are neglected, there will be malfunctions and failures.
" Total Productive Maintenance (TPM) The holistic approach to preventing waste and
loss on assets. It has developed from preventive maintenance as a basis. Different levels of
implementation can be achieved.
The goals of total productive maintenance pursue high quality and productivity in plants
and are listed below:
• Employee motivation through identification and assigned responsibilities

• Reduction of lost time
• Preventive measures instead of incident elimination
• Increase in supplier quality
• Increase in running times
• Increasing quality
• Increase in productivity
The implementation of total productive maintenance follows a step-by-step model

(TPM steps) that runs through the necessary steps (◉ Fig. 13.2). It starts with structured
cleaning according to the 5S methodology (▶ Sect. 10.2) and then progresses through the
improvement process to organizational and cultural measures. The honest and sustainable
achievement of the respective levels is associated with a greater investment of time and
corresponding discipline.
Example
Machinery and equipments in Toyota’s manufacturing are interestingly not new. Many
machines are over 30 years old, but in extremely well-maintained condition. They are
easy to maintain and due to little electronics, repairs can be carried out by the company
itself. Simple spare parts are manufactured in-house. This significantly reduces com-
plexity and increases availability (Ohno 1988, p. 64 f.). ◄
To achieve the TPM levels, five key elements have emerged, which can be observed at
Toyota, but also at other companies: Autonomous machine inspection, planned mainte-
nance, qualification and training, design for maintenance and OEE Optimization.
Autonomous Machine Inspection

Autonomous machine inspection enables and empowers production employees to look
after machines and plants. As machine supervisors, they independently carry out inspection
activities and maintenance on the machines. By linking operation and inspection, the
interface of responsibility between production and maintenance is eliminated. Minor
problems can be solved immediately without waiting for maintenance. The responsibility
of the employee at the plant increases. This is similar to a vehicle, when cleaning and minor
repair and refilling work is done by the driver himself. A time-consuming trip to the car
repair shop is no longer necessary.
Cleanings are not done just for the appearance of the machine, as purely cosmetic
cleanings have little added value. Cleaning must be done primarily in critical areas because
the priorities for cleaning are: (1) safety, (2) quality, (3) reliability, and (4) appearance.
Cleaning the system creates an understanding of its function. In the event of
malfunctions, the causes can be quickly identified and named. Cleaning is similar to the
inspection and the associated testing of the system. This takes place with all the senses,
such as seeing, hearing, smelling and touching. Cleaning must be professionally learned
13.3 Total Productive Maintenance 183
Stage
Autonomous planning of the maintenance program
7
Stage Autonomous recording of time-consuming and
6 special maintenance tasks
Stage Autonomous inspection and maintenance
5 by employees
Stage Training of employees for independent inspection
4 and maintenance
Stage Maintenance, lubrication and inspection schedules,
3 initial inspection, standardization of lubricants
Stage Prevent contamination,
2 improve access for cleaning and maintenance
Stage Basic cleaning, cleaning plans,
1b elimination of defects
Stage
5S: Safety = Order + Cleanliness
1a
Fig. 13.2 Implementation steps in the implementation of TPM
and follows a clearly defined and described standard, in which the cleaning materials are
also specified. In this way, wear and tear, leaks or defects can often be detected before a
failure and rectified in time.
Standards help to define, schedule and maintain the time required for inspection. A
strategy in which testing and inspection flow through the line like a product is possible if
smaller buffers are available between the machines. While the last machines are still
running, inspection starts on the first machine. The inspection flows through the process
chain as a single machine shutdown over several cycles. During the inspection of the last
section, parts are already being produced again on the machines that have been completely
inspected. The time of the number of cycles that the respective machine does not produce is
lost over the total line and not the sum of the times (total time) if all machines were
switched off at once. Such a total shutdown would only make sense if the inspection is
carried out on every machine at the same time.
Planned Maintenance
A maintenance strategy provides for the scheduling of regular maintenance intervals for all
maintenance activities. Maintenance is performed in fixed cycles. Identified problems and
marked parts from autonomous machine inspection are recorded and solved. Necessary
orders for spare parts can be planned in time and carried out early.
This results in a balanced workload for the maintenance areas, as it is possible to switch
from reactive problem-solving in the event of a failure to preventive maintenance. This
procedure acts as protection against a possible total breakdown.
Qualification and Training

Total Productive Maintenance includes qualification for maintenance and machine
operators. Topics on which training courses are held and training is carried out at the
machines are machine inspection, OEE optimization, planned maintenance and informa-
tion on new machines.
The trainings are important for maintaining standards and taking responsibility.
Design for Maintenance

Maintenance during operation and planned maintenance are not sufficient. Already during
the planning of new plants, attention must be paid to justifiable and relatively simple
maintenance and servicing. A plant must be planned and manufactured in such a way that it
is easy to maintain (design for maintenance). A machine must also be easy to repair. Easy-
to-reach points, quickly removable housing parts and transparent parts, through which the
technical condition can be seen at important points, are corresponding specifications.
Optimization of the Overall Equipment Effectiveness (OEE)

The optimization of the overall equipment effectiveness focuses on the OEE and its levers.
Calculating and transparently visualizing the overall equipment effectiveness for the plant
is the basis for optimization. Through the actual analysis of the wastes and losses, these are
optimized analogously to the methods of the continuous improvement process (▶
Chap. 11).
In order to find the limits of the possibilities of a machine, plant or production line,
performance tests are carried out. On one day (challenge day), production is carried out as
perfectly as possible. Malfunctions are immediately eliminated by maintenance teams.
Set-up takes place quickly and in an organized manner. Teams are deployed to stand by at
the equipment. The findings are used to determine the maximum possible production and
the maximum quality under realistic conditions in one day. The thesis is that once achieved,
it is repeatable. The findings of the day go into the planning of the continuous improvement
process.
Once a bottleneck process is identified, a focus board is used. This board can be a flip
chart and is located at the affected machine. All problems and malfunctions are precisely
documented with time and number of pieces as well as the cause. Subsequently, a
malfunction analysis can be carried out and problem-solving takes place. The measures
are processed. Once the problems have been solved, the focus board moves to a new
location where new problems or a bottleneck exist.
13.4 Quick Changeover 185
13.4 Quick Changeover
In ▶ Sect. 5.1, Andler’s formula for batch size calculation was mentioned. It was described
that under lean aspects the optimal batch size should be as small as possible. Only in this
way can the products flow and waste in the form of inventories be reduced.
The duration until each variant has been produced once is often so long because the
batch sizes are large. This is due to the goal of keeping the orders on the machine for as long
as possible because long downtimes occur between orders due to lengthy changeovers.
This downtime is referred to as setup time.
" Set-up Time Time, from the last part of a batch to the first good part of the next batch at
the specified production speed on a machine (◉ Fig. 13.3).
The most important factor influencing the reduction of batch sizes for machines based
on the batch production principle (e.g., presses) is quick changeover. The faster the
changeover process is completed, the shorter the set-up time. By reducing the parameters
set-up time and set-up costs, the total costs are optimized and the batch size decreases
further. The curve (◉ Fig. 13.4) is shifted (Rommel et al. 1993, p. 170).
In contrast to other diagrams, the curve of Rommel et al. (1993, p. 170) shows inventory
costs instead of the usual storage costs. While stock costs have a linear progression through
the zero point of the diagram, this is not the case with inventory costs. Inventory is created
due to changeover between different variants in order to be prepared for delivery. Once
batch sizes exist due to changeover, inventory of each variant is held in the warehouse. The
minimum is the standard stock in circulation with one part for each variant. This results in
basic costs for the required space, handling, a storage rack, and other system costs (labels,
labeling, data handling). Thus, the inventory costs in a setup process in the diagram no
longer go through zero. The non-linearity expresses the increasing transport costs. The
more variants are produced, the longer the transport distances for the inventories become.
There are further cost drivers due to sorting, searching, transport damage and rejects of
goods that can no longer be used. A quantity degression therefore has no effect on
inventory costs. On the contrary, if the capacity limit of a shelf or warehouse is reached,
new investments become necessary.
The target is to produce every part every day (EPED) for many variants (◉ Fig. 13.5).
This reduces inventories and lead times.
The key figure “every part every interval” (EPEI) indicates the time required until the
complete product range with all variants and the setup sequence has been manufactured
once. The key figure EPEI is calculated from the sum of the processing time for all product
variants in the respective specified batch sizes plus the necessary setup times as well as
planned and unplanned downtimes (Eq. 13.8) (Erlach 2013, p. 59 ff.).
Setup time
Machine speed
Time
Fig. 13.3 Set-up time in an output diagram
Cost
Optimum
New
optimum
Determined optimal batch size
Reduced setup costs:

- New optimal batch size
- Lower total costs
New Batch size

Optimum
optimum
Fig. 13.4 Further optimization of costs through quick changeover and optimization of set-up times
(based on Rommel et al. 1993, p. 171)
Not leveled production Leveled production

Units per day Units per day
____________________ ____________________
Mo Tu We Th Fr Mo Mo Tu We Th Fr Mo
Fig. 13.5 Comparison of non-levelled and levelled production according to the principle “every part
every day” (EPED)
X
N X
N X
EPEI ¼ Processing timei þ Setup timei þ Downtime ð13:8Þ
i¼1 i¼1
It happens that in a whole shift only the setup on one machine is carried out. No parts are
produced during this time. Changeover world champions from Japan have been setup a
large 1000-ton press in a press shop for automobile body parts in less than five minutes
since the 1990s (Rommel et al. 1993, p. 170 f.). This is a benchmark and is called SMED.
" Single Minute Exchange of Die (SMED) The changeover of a machine with a time
duration in the single-digit minute range. The time from the last good part of the old batch
to the first good part of the new batch in the specified cycle time is measured.
The difference for setup times of different lengths lies in the processes. With short setup
times, everything is prepared perfectly and standardized as far as possible, because the
downtime is to be kept as short as possible. Adjustment work does not have to be carried
out and the previous press tools are replaced via sliding tables by pushing in the subsequent
tools. The reduction of the setup time has positive effects on flexibility, productivity, batch
size and stocks (◉ Table 13.3).
Example
The process of a quick changeover is reminiscent of the differences between changing a
tyre on your own car from summer to winter tyres and the process in motorsport. In
Formula 1, times of less than three and a half seconds were achieved for the pure tire
change of all four wheels. ◄
More people are involved in changing tyres in Formula 1 than on an own car, but still,
the process has optimized features. The special features are that everyone is aware of the
Table 13.3 Results of the set-up time reduction

Reduction of the batch
Increasing flexibility Increase in productivity size
Fast reaction to order changes Reduction of planned shutdowns Reduced stocks
Reduced delivery time Increased capacity or reduced Reduced lead time
production time
Quality improvement Improvement of the plant Reduced space and
availability storage costs
Increased safety through Reduced setup costs Reduced capital
standardization commitment
roles of the players. There is a simultaneous lifting of the race car. Work is done simulta-
neously on all four wheels at the same time. Tools and materials are prepared and assigned
in the right place. In addition, there is perfect mastery of the process through constant
training and practice, accurate documentation and transparent timekeeping. Except in
Japan, time displays that measure the standstill of the plant during changeover are hardly
common.
Example
Fast refueling also takes place in the air, instead of refueling on the ground. The flight is
not interrupted and there are no wastes such as searching for a landing place, the
approach, the landing, waiting for refueling, waiting during refueling, take-off, depar-
ture and climb. ◄
All examples have in common that the attempt is made to stop the respective machine
only as briefly as necessary. Stopping a machine and only then looking for the tool would
be a great waste. A distinction is therefore made between external and internal setup. In
external setup, all preparations are made before the machine is stopped. This also includes
cleaning up the operating equipment after the machine is running again. Internal setup
refers to all activities that can only be carried out when the machine is at a standstill. In the
Formula 1 example, all preparations before and after the pitstop are external setups since
the race driver is still driving on the racetrack during this time.
" External Setup Activities that can be performed while the machine is in operation.
The opposite of external setup is internal setup. The standstill of the race car in the pits is
internal setup. The aim is to keep this as low as possible.
" Internal Setup Includes all operations that can only be performed when the machine is
at a standstill.
There are various ways to proceed when implementing quick changeover (e.g., Takeda
2006b, p. 81 ff.). The following procedure of setup time reduction is done in seven steps:
1. Analysis and detailed documentation of the current total setup time

2. Differentiation between internal and external setup and definition of the assignment of
the operations to the two categories
3. Shifting of work contents and conversion of internal operations into external ones as
well as outsourcing of external operations from the setup process, if possible
4. Acceleration of internal operations
5. Improvement of external operations
6. Implement an implementation plan and measures, validation of the new process
7. Development of a new changeover standard
The ECRS method is used in steps three to five. The letters stand for the first letters of
possible measures for optimizing a changeover process: eliminate, combine (e.g., parallel
work), rearrange or redistribute and simplify. This method is primarily used for optimizing
setup times, but it is also suitable for improving other processes.
Example
Optimizations are also available in everyday life: Shoes with laces or with velcro, or
changing the wheel on the bike, where a screw or alternatively a quick release is used (◉
Fig. 13.6). In the case of a quick release, the tool is integrated and an additional one is
therefore not required. In this way, systems with clamps and integrated tools can also be
optimized. ◄
Quick changeover optimizes the original process sequence (◉ Fig. 13.7). The potential
of quick changeover is a saved time potential. The time saved can be used in two ways. On
a bottleneck machine or in the case of increases in the number of pieces, the freed-up setup
time can be used to produce workpieces and thus for an increase in output (◉ Fig. 13.8). If
the output remains the same, the time is used for more frequent changeover (cf. every part
Fig. 13.6 Comparison of screw and quick-release lever on a bicycle

Before optimization
Setup time so far = 1.0 h
1.0 h
A B C A B C
3.0 h 6 times per 24 hours
Setup time per day: 6h

Available production time: 18 h
Fig. 13.7 Process flow before setup time optimization with large batch sizes and long
changeover time
After optimization: use as production time

New setup time = 0.5 h
0.5 h
A B C A B C

Fig. 13.8 Increasing capacity by using time for production
every interval, EPEI). In the example, halving the setup time has the effect of halving the
batch size and doubling the changeover frequency (◉ Fig. 13.9). This reduces the
inventories, the storage area and the lead time.
The goal is a production without setup time, which produces the variants that are desired
by the customer. This requires a “changeover in customer tact time”. In addition to the term
“set-up in cycles”, there is also the term “batch size one”.
13.6 Summary 191
After optimization: Use for smaller batch sizes and more flexibility
New setup time = 0.5 h
0.5 h
A B C A B C A B C A B C

Fig. 13.9 Increasing flexibility (EPEI) through more frequent changeovers
The Following Questions have to be Answered in the Field of Automation, OEE

and TPM
• Do the machines work at a constant and appropriate speed (not too fast and not too
slow)?
• Are there waiting times in the upstream and downstream process?
• Are there any process-related waiting times?
• Is the OEE visualized?
• Is the OEE in the benchmark range?
• Is TPM carried out in all steps?
• Is the process technology mastered?
• What are the main causes of availability losses at the plants?
• What is being done to increase machine availability?
The Following Questions are Relevant in the Topic of Quick Changeover
• Are changeover processes the focus of optimization?

• Are setup times in the single-digit minute range?
• Are setup times visualized?
13.6 Summary
Summary on the Topic of Production area Manufacturing

• Process automation is used for monotonous and difficult work. Humans are flexible
and the better solution for demanding difficult and complex tasks.
• Bottlenecks can only be eliminated with a great deal of effort. A reduced output at the
bottleneck results in a problem for the entire process chain.
• Machines should be braked to the line tact time if they are too fast. The procedure is
the same as for the flow principle and line balacing.
• The use of conveyor belts or robots is an expensive and static installation of
unnecessary transport work because transports are wastes. Instead of an implemen-
tation with automation technology, low-cost solutions are preferable.
• Productivity is the ratio between efficiency and effectiveness and thus the output
without losses and waste.
• The overall equipment effectiveness OEE only considers the number of good parts in
relation to the possible capacity in the operating time.
• The availability factor is the production time divided by the operating time. It
quantifies the period in which the plant is not available for technical reasons and
can be improved by good maintenance and machine support as well as quick
changeover.
• The power factor is the production time used divided by the production time.
Performance losses result from the non-use of an available plant. The performance
factor can be improved by organizational measures, such as material supply or quick
reaction to deviations.
• The quality factor is the number of good parts in relation to the number of parts
produced. Defective parts, which are rejects or go into rework, are taken into account.
The quality factor can be improved by total productive maintanance and by the
principles of jidoka and poka yoke.
• The OEE is calculated from the product of the availability factor, the performance
factor and the quality factor. Good values are above 85%, the average value is 60%.
• Many problems and malfunctions on machines and plants can be solved by preven-
tive maintenance and servicing maintaining to standard. Total productive mainte-
nance (TPM) is the holistic approach to avoiding waste and loss on equipment.
• Five key elements have emerged to achieve the TPM levels, which exist at Toyota
and other companies: autonomous machine inspection, planned maintenance, train-
ing, design for maintenance, and OEE optimization.
• The setup time is the time from the last part of a batch to the first good part of the next
batch at the specified production speed.
• The most important factor influencing the reduction of batch sizes for machines
based on the batch production principle (e.g., presses) is quick changeover. By
reducing the parameters setup time and setup costs, the total costs are optimized,
and the batch size is reduced. The goal is to produce each variant every day if there
are many variants (every part every day, EPED). This reduces inventories and
throughput time.
13.6 Summary 193
• The benchmark for fast changeover is SMED (single minute exchange of die),
changeover in the single-digit minute range. This is achieved through perfectly
coordinated and standardized processes. Everything is prepared so that downtime
is minimal. Adjustment work has already been completed. The previous pressing
tools are exchanged via sliding tables by pushing in the subsequent tools.
• Prime examples of quick changeover are the pit stop in racing or the refuelling of
aircraft in the air. The machine is stopped or held up for as short a time as necessary.
• The ECRS method provides options for optimizing setup processes. ECRS stands for
eliminate, combine, rearrange and simplify. ◄
Questions
• What characteristics should a process have for automation to make sense from a lean
perspective?
• What does TPM stand for?
• Which availability losses are included in the availability factor?
• What power losses are included in the performance factor?
• Which quality losses are included in the quality factor?
• Calculation task: At Knalsch GmbH, one machine is designed for 100 hours per
week. Production takes place in a 5-day week.
In a working week, 12 hours are scheduled for tool changes and set-up processes.
Malfunctions occur on average 7 hours per week.
Unfortunately, there are always bottlenecks due to a lack of material, so that the
machine has no material available for production for an hour. The machine achieves
on average 95% of the set speed.
Despite optimal processes, the machine produces 1% scrap that must be reworked.
– What is the availability factor?
– What is the performance factor?
– What is the quality factor?
– What is the OEE of the machine?
• How can the required quantities be achieved despite a poor OEE?
• What are the goals of TPM?
• What does the key figure EPEI (every part every interval) mean and how is it
calculated?
• How can a setup process be analyzed?
• What is the procedure for a quick changeover?
• What terms does “ECRS” stand for?
• What is the impact of setup time reduction results in increasing flexibility, increasing
productivity, and reducing batch size?
• How do internal and external setups differ?
References
Bicheno J, Holweg M (2009) The lean toolbox–the essential guide to lean transformation, 4th edn.
PICSIE, Buckingham
Ohno T (1988) Toyota Production System: Beyond Large-Scale Production. CRC, Boka Raton
Rommel G, Brück F, Diederichs R, Kempis RD, Kluge J (1993) Einfach Überlegen: das
Unternehmenskonzept, das die Schlanken schlank und die Schnellen schnell macht. Schäffer-
Poeschel, Stuttgart
Rother M, Harris R (2001) Creating Continuous Flow–An Action Guide for Managers, Engineers and
Production Associates, Version 1.0. The Lean Enterprise Institute, Brookline
Takeda H (2006a) LCIA–Low Cost Intelligent Automation: Produktivitätsvorteile durch
Einfachautomatisierung, 2nd edn. mi, Landsberg
Takeda H (2006b) The Synchronized Production System–Going Beyond Just-in-Time Through
Kaizen. Kogan Page, London
Lean and Production Systems
14
A pile of stones is not a house. . .

Carl Gustav Jochmann
Overview
The flow principle emerged during mass production. Mass production is not able to
realize high customer variance without high inventories. Lean enables customer
individualization with low inventories. The term lean comes from an American
study that analyzed Japanese automobile production in more detail. The methods
of lean production are combined in the Toyota Production System. The Toyota
Production System was born out of necessity and combines the idea of quality
production (jidoka) with that of ideal delivery (just-in-time). Production systems
are present in many companies today with different symbolism and follow a clear
vision.
Knalsch GmbH: Top Finances!

The champagne corks pop. Dr. Alsch airs the new company logo. He has written the
company name backwards (almost, anyway) and added it to the existing name:
Knalsch GmbH, we are the SCHLANK GmbH. If you look at our processes from
(continued)

https://doi.org/10.1007/978-3-658-36087-0_14
196 14 Lean and Production Systems
the back, i.e., from the customer’s point of view, you also have to look at our
company name from the back. Knalsch thus becomes “SCHLANK” (german for
lean), explains the satisfied boss to his equally satisfied staff.
Today, Dr. Alsch canceled the appointment with the bank. He has repaid some
loans through the inventory reductions and is now financing the company’s growth
himself. The key figures are right and with the freed-up employees, he can manage
the big new order quite easily. Later, Alsch wants to look at the figures in last year’s
balance sheet with his controller Karsten Horch.
What has been achieved is to be incorporated into the corporate culture. To this
end, all topics, methods and steps are summarized. “We want to be a production with
a system,” says Dr. Alsch.
One assignment is still open. The lean methods and principles should be
summarized and presented for good internal and external communication. That
would be a topic for the students of the excursion at that time.
“Ms. Beck, please invite the students from the excursion again. We will show
them what we have achieved and offer them internships, student jobs or even theses.
On lean topics, of course,” Mr. Alsch decides.
“You got it, boss,” Claudia Beck answers immediately.
“We’ll keep at it, because those who rest will be overtaken,” appeals Managing
Director Alsch.
The Toyota Production System is the representation of the mindset of lean. Why is the
origin of lean at Toyota not discussed until the last chapter of this first part of the book?
Lean must be seen as a path to be followed. It is not useful to adopt a system and impose it
on a factory. It is important to have the understanding behind the issues and the methods.
Thus, it is time to summarize what has been described up to this point into a system.
The history of lean is explained and how it came to be the production system that is the
basis for lean.
14.1 Mass Production
Elements of lean history can be found not only in Japan, but also at the time of industriali-
zation in the United States of America. In 1903, the Ford Motor Company was founded,
and several manufacturers were already producing vehicles. The difference: Henry Ford
(1863–1947) used the conveyor belt to flow parts through the factory, as used in textile
companies and can manufacturers. He brought the work to the people. Activities were
broken down into small repeatable, efficient steps. Time recordings of the activities
were made.
In 1913, Henry Ford began mass production. He created an overall system that continu-
ously flowed from raw material to finished product in large quantities with little variance. In
14.2 History of the Toyota Production System 197
1918, Ford’s River Rouge plant was built in Dearborn, Michigan. The factory produced all
the parts for a car itself, as well as steel, coal for the smelting process, glass, and tires.
Manufacturing was organized in a perfect flow. All the conveyor belts added up to be over
48 km long. The lead time to produce a car was only 28 hours and the process time was six
hours. Production was based on the push principle.
The cars had a low variance. Famously, Henry Ford is said to have quoted, “A customer
can get any color car as long as it’s black.” The system only worked because the production
volume was large enough, consisted of equal parts, and could be produced over many
years. This developed into a division of labor with the goal of automating repetitive
activities, ending in the performance principle. With the “Model T” Ford realized his
goal to produce the cheapest car. The cars became cheaper and cheaper. In 1914, 267,000
cars were built. In 1916, the price of a vehicle was US$ 360, and Henry Ford said, “A day a
dollar, a year a car.” In 1926, the price was US$ 290 per vehicle.
The result was the sub-optimization of sub-areas, which largely ignored the efficiency of
the overall process chain and thus led to high control effort, too high inventories and too
long lead times.
14.2 History of the Toyota Production System
In 1902, Sakichi Toyoda (1867–1930) developed an automated loom based on the “jidoka”
(autonomation) principle (▶ Sect. 9.2). Together with his son Kiichiro Toyoda
(1894–1952), the production of looms was organized in a mass production according to
the flow principle.
Through Kiichiro Toyoda’s travels in 1929 through Europe and North America and
enthusiasm for automobiles, he began to develop engines and vehicles. Father Sakichi and
son Kiichiro Toyoda established a new company and switched from automatic looms to
vehicles in 1933. In 1935 the first car, the “Model A1”, was completed (Toyota 1995,
p. 57). The first vehicle for the mass market followed a short time later. Kiichiro Toyoda
optimized his production and introduced the ideas of the just-in-time principle (▶ Sect.
7.1).
Deviating from the family name Toyoda (with a “d”), the company and its products
were named “Toyota” with a “t” by Sakichi Toyoda. The Japanese spelling (katakana) of
the company name requires only eight strokes for the word compared to the family name,
instead of ten (◉ Fig. 14.1). The eight stands for luck in Japan and is an association for
further growth.
The Toyota company was confronted with the small and very diverse Japanese vehicle
market in 1945 after the second world war. There were few manufacturing resources and
little capital. A crisis arose. It was more important than ever to produce vehicles efficiently.
Kiichiro Toyoda retired in 1947 and turned the company over to his trusted cousin Eiji
Toyoda (1913–2013), with the goal of catching up with the American auto industry in
Fig. 14.1 Japanese characters

for the words “Toyoda” and
“Toyota”
Toyoda Toyota
terms of units produced within 3 years. This was even though the American companies had
a better productivity by a factor of eight.
Eiji Toyoda brought in Taiichi Ohno (1912–1990), who ensured more efficient produc-
tion. Value creation was consistently increased, and the principles of jidoka, avoidance of
waste and just-in-time were consistently applied. Ohno systematized the JIT principle
through kanban (▶ Sect. 7.2). However, the production staff rejected the new system
and simply continued to work as usual. Ohno took the initiative and went directly to the
people on the shop floor and showed them how to use the system himself. Eiji supported
him on site from the management side.
In 1950, Taiichi Ohno developed the Toyota Production System (TPS), combining just-
in-time, jidoka (autonomation), pull and kaizen, continuous improvement, into one system.
Ohno is thus considered the architect of the Toyota Production System (Ohno 1988). There
was no representation of the system in the form of graphs for a long time. Through the
production system, Toyota Motor Company achieved mass production performance with
low volume and high variety. In the 1960s, Toyota’s suppliers were also involved and
developed in partnership according to the system.
When a global economic crisis hit in 1973 due to the oil crisis, the production volume
reduced. After the crisis, Toyota managed to recover faster than any other car manufacturer.
The production system supported the resilience of the company. This did not go unnoticed
by the automotive world. In 1984, Toyota followed up with a joint venture with General
Motors (GM) to produce small vehicles in North America (Sato 2008, p. 249). The New
United Motor Manufacturing Incorporated (NUMMI) in California used the just-in-time
principle for the first time in the United States. The production system was very well
accepted by the employees and successfully produced very good quality. The factory was
named the best factory in the United States.
Today, the car manufacturer Toyota operates factories and participates in suppliers in
many different countries, including Europe (UK and France). The idea of “transplants” is
based on the Japanese mother plant and duplicates the success in many countries. Toyota
also owns a design center in France and a development center in Belgium (Köhler 2006;
Becker 2006, p. 424).
Toyota is successful not only with automobiles, but also with various other products
(e.g., prefabricated houses, forklifts). This is not only because of the products, but also
because of the good processes. The Toyota Group’s expertise is in designing
manufacturing and assembly processes. From this, capabilities such as logistics concepts
and high process quality are developed, which make assembly resources more efficient.
Efficiency manifests itself in above-average productivity. This gives Toyota cost
14.2 History of the Toyota Production System 199
Key Performance
Indicators (KPI)
- Customer orientation / - Process orientation
- Safety, quality, delivery, cost, morale
Logistics: Thinking Quality:
Main pillars
Just-in-Time People in focus Jidoka
Standards Stability Kaizen

- 5S - Leveling Heijunka - Go & See
- Visual - Long term strategy - PDCA
Management - Waste
Foundation
Responsibility Urgency Leadership

- Daily checks - Escalation system - Responsibility
- Involve everyone - Speed of response - Teams
Fig. 14.2 Representation of the Toyota Production System (TPS) in the form of a house
advantages over its competitors and makes it one of the most profitable companies and a
successful car manufacturer.
The Toyota Production System is also referred to as a JIT production system. The
special feature is that the human being plays a central role in this system (human being at
the centre of the system) (▶ Chap. 27). It originated in manufacturing, but it is used
independently in other areas as well. A house or temple with the two main pillars of jidoka
and just-in-time is usually chosen as the form of representation for the system named
“TPS” in Japan (◉ Fig. 14.2). Standards form the basis of the system as a foundation.
The TPS is used as a management system and is more than just an attempt to represent
the methods in a graphic. It is a philosophy, which is lived daily by all employees. This
includes the managers and thus becomes a way of thinking and acting routine.
In this philosophy of the Toyota way, there are five core values: Genchi gembutsu (“go
to the place of value creation”) (▶ Sect. 25.1), Kaizen, Challenge, Teamwork and Respect.
Themes which are reflected in the second part of this book. Other Toyota management
principles have been presented by Jeffrey K. Liker in his books “The Toyota Way” (Liker
2021) and the accompanying Fieldbook book (Liker and Meier 2006).
14.3 Lean and Production Systems
The TPS principles are known throughout the world as “Lean”. Through the NUMMI joint
venture with Toyota in the USA (▶ Sect. 14.2), American researchers at the MIT
(Massachusetts Institute of Technology) became aware of the methods and wrote a study
on the specifics. In 1990 and 1991, the study was published as a book entitled “The
Machine That Changed the World: The Story of Lean Production—Toyota’s Secret
Weapon in the Global Car Wars That is Revolutionizing World Industry” by James
P. Womack, Daniel T. Jones and Daniel Roos (Womack et al. 1990). The book became
a bestseller. The main finding of this MIT study was that Toyota is by far the leading
benchmark in terms of efficient production (◉ Fig. 14.3). For example, compared to
western car plants, with half the number of employees, Toyota achieved three times higher
productivity with four times shorter delivery times (Zollondz 2013, p. 6).
MIT researchers use the term lean production and lean manufacturing to describe the
Toyota Production System, initiating the adoption of lean worldwide. Lean is a systematic
approach that identifies and eliminates waste through continuous improvement. The goal is
to produce goods according to customer demand in a process flow.
Lean usually consists of different methods:
• Customer and demand-oriented production

• Point-of-consumption storage
• Qucik changeover
• One-piece flow and batch size reduction
• Line balancing
• Standardized work
• Workplace organization
• Visual control and transparency
• Effective layouts
• Quality right from the start
• Organization of work
The methodology alone does not make a company lean. Lean is more. Table 14.1
provides a simple definition of what lean is and what it is not. Akers (2016, p. 25) says,
“Lean means eliminating everything that bothers you. This is how waste is eliminated. Or
very briefly: “Lean is everything that is good, and everything good is lean” (Modig and
Ahlström 2014, p. 107).
Starting from its Japanese origins, the application of the system in the USA and the
published study, the production system first came to Europe in 1990. After the German
reunification, it was successfully used at the Opel plant in Eisenach. From 1995 onwards,
other car manufacturers and their suppliers also tested production systems. Daimler-Benz,
Chrysler, Ford, Skoda and Audi began their first attempts at lean production. Around 1999
and 2000, some 50 years after the drafting of the TPS and 10 years after the MIT study,
automotive OEMs began using holistic production systems modeled on Toyota’s
14.3 Lean and Production Systems 201
Production
Productivity Stock
HPV
days
36.2 2.9
25.1 2.0
21.2 1.6
16.8
0.2
1 2 3 4 1 2 3 4
Quality Size of rework area

per 100 vehicles
production area
Percentage of
Defects
97 14.4
82 12.9
60 65
4.1 4.9
1 2 3 4 1 2 3 4
Employees
Training of
Organization in teams
new employees
Percent
h per employee
69.3 71.3 380 370
173
17.3
46
0.6
1 2 3 4 1 2 3 4
Improvement ideas Absence

and year
Per employee
Percent
61.6 11.7 12.1
1.4
5.0 4.8
0.4 0.4
1 2 3 4 1 2 3 4
Average values for assembly plants per region:
1 Japanese plants 3 American plants
in Japan in the USA
2 Japanese plants 4 European plants
in the USA in Europe
Fig. 14.3 Comparison of the 1989 factory figures of large-scale manufacturers in different regions
(based on Womack et al. 1990, p. 92)
Table 14.1 Simple definition of lean

Lean is not Lean is
• New • An integrated system of principles that pursues the
• Japanese pursuit of perfect customer value creation
• Academic theory • Continuous efforts are made to improve quality and
• Only a thing with relevance for efficiency
production in the production hall • 100 years old and proven
• Limited to repetitive production • Born out of necessity
processes • Necessary for economic efficiency
• A cost-cutting programm • Global
• Merely a collection of methods and
tools
(Oeltjenbruns 2000). Holistic means continuous and comprehensive so that all aspects are
considered. This includes the customer perspective and also the cultural change towards a
continuous improvement mentality (VDI 2012, p. 2).
There has been cooperation between OEMs and suppliers in the creation of production
systems. Similarities between a DaimlerChrysler Production System (DCPS) and the
Bosch Production System (BPS) are no coincidence. Production systems gradually
emerged from OEMs to suppliers as well, as can be seen from the emergence of selected
production systems on the timeline in ◉ Fig. 14.4. An explanation of various production
systems can be found in the publication of the Institute for Applied Work Science (Institut
für angewandte Arbeitswissenschaft 2000, p. 40 ff.).
The production systems are visually represented with different symbols and shapes (◉
Fig. 14.5). Not only the representation as a house, as in the Toyota Production System, was
used. In the overview of all production systems, the two elements jidoka and just-in-time
are always present and at the centre of the representations.
The Mercedes-Benz Production System (MPS) derived from the DaimlerChrysler
Production System has both topics, “quality and robust processes and products” and
“just-in-time”, centrally represented (DaimlerChrysler 2000). A detailed description of
the MPS in its first version valid from 2000 onwards can be found in Clarke (2005,
p. 127 ff.). Spath (2003, p. 122 ff.) provides an overview of the Mercedes-Benz Production
System and an explanation of other production systems of different companies.
A production system is designed with a paradigm as a thought pattern with criteria and
logic, a philosophy and a corporate culture with principles, methods and tools. It is built
like a house of stones. But a collection of the above elements is not yet a production system,
just as a pile of stones is not a house. From a mere collection of methods, the production
system in many places is increasingly becoming a system of principles that applies the
methods in a purposeful way (◉ Fig. 14.6). The fact that lean is not just methods, but a
system idea, was taken into account by MIT professors Womack and Jones with the
publication of the book “Lean Thinking” (Womack and Jones 2003).
14.3 Lean and Production Systems 203
TRW
Faurecia
ZF Heidelberg
Bosch B/S/H
Magna Steyr Meteor
…
Leoni Schmitz Cargobull
Siemens Knorr-Bremse Bahlsen
Johnson Controls Airbus Fehrer
FAG Kugelfischer Bosch Rexroth
Suspa Hella Behr Brose Sennheiser
Festool Trumpf Hans Grohe Pfleiderer Oeka Metall
SEW Eurodrive Hilti Mann und Hummel Saargummi
BMW Eaton MAN Voith Miele Zeiss
Chrysler Ford LUK GM VDO Festo GF
Valeo Nissan Audi Renault Claas Volvo Continental
Toyota Opel Porsche DaimlerChrysler VW Harting
1950 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Fig. 14.4 Temporal introduction of selected production systems (adapted from Winnes 2002; Keßler
and Droste 2009, p. 47; Dombrowski and Mielke 2015, p. 22)
Fig. 14.5 Visual representation forms of production systems (schematic)
The lean journey continues. Many companies are revamping their production systems.
Seen on the timeline, production systems have reached puberty. The holistic management
system is usually missing. What is missing is a holistic management system. However, this
can only work if the people and the culture in the company are reflected in the
Fig. 14.6 Stages in a

production system
Overall
system
Principles
and interactions
Methods and elements

of the production system
implementation vision and strategy as well as in the management system and are taken
seriously. Change management (▶ Chap. 31) plays a central and decisive role on the shop
floor.
Example
The holistic approach in terms of process optimization, change management and people
is illustrated by the example of the fischerwerke company from the fixing systems sector
(Möller et al. 2016). The system is called “fischer ProcessSystem” and thus
demonstrates the possibility of application not only for production. At the same time,
people are named as the most important element in the company’s mission statement (▶
Sect. 27.2) and change management methods are consistently applied in process
optimization. ◄
The idea behind production systems is Toyota’s idea. It has not the pure reference to a
production, but the company-wide reference as a operating system.
14.4 Implementation
Lean production according to lean principles is preferable to traditional production. A

summary overview with a comparison of different topics is shown in ◉ Table 14.2.
Changes in this form take time and occur in small steps. Not everything should be
implemented at the same time, as this leads to instability instead of stability, as well as
overburdening employees. Many companies started with a single method, such as 5S (▶
Sect. 10.2), and then worked their way up. Companies that tried to implement all methods
completely and everywhere failed by using unnecessary methods for non-existent
problems. This is also waste. The interdependencies of design principles as a holistic
14.4 Implementation 205
Table 14.2 Comparison of traditional with lean production

Feature Traditional production Lean production
Scheduling Preview, Push Customer order, pull
Production Into the warehouse According to customer order
Batch size Large, lots and stocks Small, continuous flow
Lead time Long Briefly
Quality control Sample, by quality area 100%, in process, by workers
Layout Functional In product flow
Stock turnover Little High
Flexibility Low High
Production costs High and rising Low and falling
Self-responsibility Low High
system must be understood when implementing a production system (Institut für

angewandte Arbeitswissenschaft 2002).
For a holistic introduction and implementation of lean, the “SFTPP” procedure should
be followed. The abbreviation stands for the step-by-step procedure of the principles
stabilization, flow, tact, pull and perfection and their initial letters. In this way, no step is
forgotten during step-by-step implementation (◉ Table 14.3). The sequence can also be
seen in the chapter structure of the first part of this book.
For the individual improvement steps, an analysis should first be carried out. This is
followed by an implementation phase. The implementation is completed after a stabiliza-
tion phase and the anchoring of the optimization in everyday life through a standard (▶
Sect. 10.1).
The question arises: What is the difference between industrialized nations and low-wage
countries? Even though lean originated in a high-wage country like Japan, it can be applied
in all countries. Even in low-wage countries, care must be taken to avoid waste. An
improvement over a competitor does not result from a relocation to a low-wage country.
Because the competition could do the same. Lean principles must be implemented at every
location. If automation is low, lean must be implemented. Because of the high volume of
manual work, the issue of ergonomics is particularly important (▶ Sect. 12.2). By applying
lean principles, it is possible to produce competitively in a high-wage country and not have
to relocate. This is also the view of employee representatives, who regard lean as an
important method for remaining competitive and securing jobs.
The cultural aspect of a lean implementation should also be considered. This topic is
dealt with separately in a later section (▶ Sect. 26.4).
Table 14.3 SFTPP approach

Abbreviation Principle Methods and principles
S Stabilization Levelling, standards
F Flow Batch size reduction, coupling of processes, layout
T Tact Customer tact time, harmonization, same speed
P Pull Pull principle, just-in-time, just-in-sequence
P Perfection Standardization, quality alarm/quality stop, CIP, problem-solving,
shop floor management
14.5 Vision and Key Figures
If the entire company is viewed from a lean perspective and the aim is to make a company
waste-free in its entirety, the term “lean enterprise” is often used (▶ Sect. 26.4). The
approaches of being waste-free and supporting the main processes for product creation or
for services run through the entire company. Everything is geared to the customer. This
includes looking at the culture of the company. Companies have an overarching vision. The
so-called “north star” (true north) with the following lean goals is used (according to Rother
2010, p. 44f):
• Quality: Zero defects

• Costs: 100% value added (zero waste)
• Time: One-piece flow, in sequence, on demand (short lead time)
• Employees: Security for people
The target is absolute customer satisfaction.

A vision is important to move in the right direction. What has been achieved in the end
(cf. process focus, ▶ Sect. 3.1) leads to the consideration of key performance indicators. At
Toyota, the key performance indicator logic “SQDCM” has proven its worth (▶ Sect.
23.1). The letters stand for key performance indicators relating to safety, quality, delivery,
cost and morale. In the field of resource efficiency, the letter “E” for environment is
sometimes used as an extension (▶ Sect. 22.1).
Controlling and the accounting department have to rethink in a lean company (▶ Sect.
23.1). If everything is done correctly, the result is a good company result. Many companies
have proven this. On the company balance sheet, reduced inventory translates into less
capital tied up. Less inventory and a good layout in the flow requires less floor space. This
reduces rental costs, allows space to be rented or no additional space needs to be rented or
purchased. This saves money or leads to revenue. Faster turnaround times reduce the
amount of liabilities between purchase and sale due to the faster inflow of money from
customers. A further acceleration in the process results from process-efficient administra-
tion (▶ Chap. 16). The faster the invoices are issued by the accounting department via a
standardized process with short lead time, the faster the money for the goods sold flows
14.7 Summary 207
back into the company. Instead of new and expensive as well as complex equipment, there
are low-cost solutions and simple, depreciated machines which are maintained by the
company itself (▶ Chap. 20). This saves acquisition costs and operating costs. A flexible
manpower system (▶ Sect. 12.3) is also a low-cost alternative to expensive inflexible
production lines. Many of these measures increase cash flow and thus allow the company to
reduce liabilities to lenders. The avoided interest expenses are a direct profit.
The Following Questions are to be Answered in the Subject Area of Lean

and Production Systems
• Do the management and controlling know the effect of lean on the company’s key
figures?
• Is the focus of optimizations on quality and time instead of costs?
• Is a holistic production system in place, visualized, communicated?
• Is the production system lived?
• Are people taken into account in the production system?
• Does a lean vision exist?
• Is the vision long-term?
• Is there a production system?
• Is or was the production system developed independently and appropriately, instead of
being copied?
14.7 Summary
Summary on the Topic of Lean and Production Systems

• Lean originated in the automotive industry and is based on the Toyota Production
System. The system represents the mindset of Lean.
• For Toyota, it was very important to produce vehicles efficiently in the crisis in 1945,
when there were few manufacturing resources and scarce capital. In 1950, Taiichi
Ohno developed the Toyota Production System (TPS) by combining just-in-time
(pull, kanban), jidoka (autonomation) and kaizen (continuous improvement) into one
system.
• Toyota recovers fastest from the 1973 oil crisis compared to other car manufacturers.
A joint venture arose with General Motors in the USA. This brought the production
system to the attention of researchers at MIT.
• The Toyota Group’s expertise is in the design of manufacturing and assembly
processes.
• As a form of representation for the TPS, a house with two main pillars (jidoka and
just-in-time) is often found. Standards form the basis of the system. The human being
is at the centre.
• The Toyota Production System is a philosophy that is lived and shared daily by all
employees. This includes the managers. This makes it the company’s way of thinking
and acting.
• MIT researchers use the terms “lean production” and “lean manufacturing” to
describe the Toyota Production System, initiating the adoption of “lean” worldwide.
Lean is a systematic approach that identifies and eliminates waste through continuous
improvement. The goal is to produce goods according to customer demand in a
process flow.
• Around the turn of the millennium, other automobile manufacturers also started their
first attempts at lean. Many companies are revising their production systems because
the holistic management system is usually missing. However, this can only work if
the people and the culture in the company are reflected in the implementation vision
and strategy as well as in the management system. The system must be taken
seriously and lived. The central factor here is change management on the shop floor.
• For a holistic introduction and implementation of lean, the “SFTPP” approach
(stabilization, flow, tact, pull, perfection) must be followed. The introduction and
implementation take place gradually and not simultaneously.
• Lean enterprise stands for organizing a company in a holistic, waste-free way. The
vision is zero errors, 100% value creation, one-piece flow, safety for people and
absolute customer satisfaction.
• Lean impacts the performance of the business through increased productivity,
reduced inventory, reduced scrap and better capital utilization. At the same time, it
creates a flexible operation that can respond to market conditions. The focus on
quality and time has an impact on the bottom line through low costs. ◄
Questions
• How can the lean methods and lean principles of Knalsch GmbH be summarized in a
production system?
• Which graphical form of representation can be given to the production system of
Knalsch GmbH?
• What suitable name can be given to the Knalsch GmbH production system?
• What is understood by a (holistic) production system?
• What are the five core values of Toyota’s philosophy?
• What principles does lean consist of?
References 209
• How do traditional production and lean production differ in terms of the

characteristics: scheduling, batch size, lead time, quality control, flexibility, and
self-responsibility?
• What methods and principles does SFTPP stand for?
• What does the key figure logic SQDCM stand for? ◄
References
Becker H (2006) Phänomen Toyota–Erfolgsfaktor Ethik. Springer, Berlin
Clarke C (2005) Automotive production systems and standardisation–from Ford to the case of
Mercedes-Benz. Physika, Heidelberg
DaimlerChrysler (2000) Mercedes-Benz Produktionssystem (MPS)–Systembeschreibung. 2nd
ed. 17.01.2000, DaimlerChrysler AG, Stuttgart. https://docmaster.supplier.daimler.com/
DMPublic/en/doc/MPS_-_SYSTEMBESCHREIBUNG.2000-01-17.DE.pdf. Accessed: 1st
Oct. 2020
Dombrowski U, Mielke T (2015) Ganzheitliche Produktionssysteme: Aktueller Stand und zukünftige
Entwicklungen. Springer, Berlin
Institut für angewandte Arbeitswissenschaft (ed) (2000) Arbeitsorganisation in der
Automobilindustrie–Stand und Ausblick. Wirtschaftsverlag, Cologne
Institut für angewandte Arbeitswissenschaft (ed) (2002) Ganzheitliche Produktionssysteme–
Gestaltungsprinzipien und deren Verknüpfung. Wirtschaftsverlag, Cologne
Keßler S, Droste M (2009) Ganzheitliche Produktionssysteme für Logistikdienstleister–Entwicklung
eines Managementinstrumentariums für Logistikdienstleister zur Leistungsoptimierung auf Basis
der Prinzipien ganzheitlicher Produktionssysteme. Dortmund. https://eldorado.tu-dortmund.de/
bitstream/2003/26441/1/Schlussbericht%20-%20GPS%20f%c3%bcr%20LDL%20%28Eldorado
%29.pdf. Accessed: 1st Sep. 2017
Köhler A (2006) Fliegende Autos. WirtschaftsWoche 1-2:36–42
Liker JK (2021) The Toyota Way: 14 Management Principles from the World's Greatest Manufac-
turer, 2nd edn. McGraw-Hill Education, New York
Liker JK, Meier D (2006) The Toyota Way Fieldbook, 1st edn. McGraw-Hill, New York
Modig N, Ahlström P (2014) This is Lean: Resolving the Efficiency Paradox. Rheologica, Stockholm
Möller K, Gabel J, Bertagnolli F (2016) Fischer fixing systems: moving forward with the workforce–
hange communication at the global distribution center. J Inf Technol Educ: Discuss Cases 5:1–24
Oeltjenbruns H (2000) Organisation der Produktion nach dem Vorbild Toyotas–Analyse, Vorteile
und detaillierte Voraussetzungen sowie die Vorgehensweise zur erfolgreichen Einführung am
Beispiel eines globalen Automobilkonzerns. In: Bracht U (ed) Innovationen der Fabrikplanung
und -organisation, vol 3. Shaker, Aachen
Ohno T (1988) Toyota Production System: Beyond Large-Scale Production. CRC, Boka Raton
Rother M (2010) Toyota Kata: Managing People for Improvement. Adaptiveness and Superior
Results, McGraw-Hill Professional, New York
Sato M (2008) The Toyota Leaders: An Executive Guide, 1st edn. Vertical, New York
Spath D (ed) (2003) Ganzheitlich produzieren–Innovative Organisation und Führung. LOG_X,
Stuttgart
Toyota (1995) Total Guide to the Toyota Commemorative Museum of Industry and Technology. The
VDI (2012) In: Verein Deutscher Ingenieure (ed) VDI-Richtlinie 2870 Blatt 1, Ganzheitliche
Produktionssysteme–Grundlagen, Einführung und Bewertung. Beuth, Berlin
Winnes R (ed) (2002) Die Einführung industrieller Produktionssysteme als Herausforderung für
Organisation und Führung. Seminar, Technische Hochschule Karlsruhe, Karlsruhe
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New York
Zollondz HD (2013) Grundlagen Lean Management–Einführung in Geschichte, Begriffe, Systeme,
Part II
Deepening: Lean Management
The shop floor is a reflection of management.

Mike Rother and Rick Harris
The second part of this book deals with the subject “Lean Management”. Special topics
from the lean environment are treated in detail and deepened.
This supports practical users and employees in companies as well as experts and
consultants from the field and is particularly suitable for master students. Newer lean topics
are presented and backed up with examples. This should serve as inspiration and accom-
pany improvement processes, with the appropriate questions for each topic.
Introduction Lean Management
15
The eye of the farmer makes the cow fat.

Book title by Herbert Henzler
Overview
Lean management is the holistic approach of lean methods, the strategic implemen-
tation and the consideration and integration of the cultural level. The topic of
leadership is to be combined with Lean to achieve optimizations not only on the
methodological level, but to implement Lean as a corporate philosophy. Lean is
applied outside of production in administration, development and planning. Lean is
also used in other industries, such as service processes.
15.1 Lean Management
The term lean management is defined and used very differently in literature and practice.
For orientation purposes, the following definition describes the topic in such a way that
there is room for further development. The conceptuality is described more clearly at the
core, instead of making a delimitation at the periphery.

https://doi.org/10.1007/978-3-658-36087-0_15
214 15 Introduction Lean Management
" Lean Management Includes all topics of Lean in a holistic approach in different
application areas. In addition, the human being, the leadership aspect as well as thinking
and acting are included. Instead of methods, the focus is on ways of thinking (lean
thinking).
In a figurative description, lean production was compared to rowing on a calm river.

Due to the stability of the calm river, the team succeeds in achieving perfection on the river
with tact and pull. When the team is no longer on the river but on land, the methods must be
adjusted. When the water of the river becomes wilder, people and leadership become more
important. In whitewater, only reactive rafting will help. Managing then moves into lean
leadership (▶ Sect. 26.1).
Lean management develops out of necessity, not as an end in itself. It is usually
triggered by a crisis (▶ Sect. 2.2) or the need or strategy for optimization. The vision
and the goal are defined and communicated. Internal complexity is to be reduced and the
speed of change is to be increased. The necessary continuous improvement process is
achieved through the targeted use of methods. Team management is carried out indepen-
dently based on the derived goals. In other areas and topics, too, the goal remains to
recognize the value of the process from the customer’s point of view while avoiding waste.
Lean management is a journey that seems to resemble a scavenger hunt. Whatever the
path looks like, it must be found and walked by yourself. Every company takes a different
path and not all of them follow it to the end, some give up prematurely. There is no lean
recipe, so there is no roadmap. As a philosophy, lean is a compass that points the way. How
the path goes and what to expect will be seen once the journey has begun.
15.2 The Lean Management Network Plan
The plan through the following second part of the book with the topic lean management is
not linear and iterative. The scheme does not follow that of a single line with a start and end
station. The topic interrelationships are shown and linked in the following network diagram
(◉ Fig. 15.1).
Compared to the sequence in the first part of the book, it is possible to start at any point.
The journey through the following topics is determined by the reader himself. The starting
and ending points as well as the paths through the topics thus become individual. Ideally,
the learning journey through the topic of lean generates the reader’s own understanding and
personal network plan. This is achieved by linking the topics and recognizing the
connections.
The examples of Knalsch GmbH accompany the individual chapters and are placed in
front. To make it possible to jump to the following chapters, the associated short stories,
unlike the previous chapters, do not follow a sequential order.
15.2 The Lean Management Network Plan 215
Digitization
Low-Cost Automation Sustainability
Fig. 15.1 The network plan for the topics on lean management
Administration
16
In production, we look for the cents when optimizing, but in

administration, the Euros are lying around.
Bodo Wiegand and Katja Nutz in reference to a German manager
Overview
Aligning oneself with the customer and thinking in processes is elementary in
administrative areas. The types of waste from the direct area are derived and adapted
for the indirect area. Instead of material, the focus is on information. The counterpart
to value stream mapping for information flows is makigami. Further analysis
methods, especially for the administrative areas, complement the waste recognition
as a basis for the optimization of processes.
Knalsch GmbH: Chaos in the Administration

A call comes through from the secretary’s office. The managing director of a
medium-sized customer is on the phone. He complains to Mr. Alsch in an agitated
manner. An order had not been delivered and had not been processed when a query
was made. Alsch apologizes and promises to take care of it immediately.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_16
218 16 Administration
When he arrives at the order management department, he asks the responsible

manager, Christina Maier. She searches through Excel lists, folders and the
overcrowded inbox directory of the mail program—in vain—and vows to do better.
Angry, Alsch thinks back to the topic of 5S: Doesn’t that also work in the
indirect area? But where to start? Maybe we should examine the processes with a
value stream? Is that even possible in the indirect area? It would be urgently
necessary.
Claudia Beck answers her cell phone, “Boss, the meeting is starting, where are
you and Ms. Maier? And another thing: The beamer in the meeting room is not
working again.”
16.1 Indirect Areas
Away from production, there are administrative divisions and service organizations with
administrative business processes. These areas are usually: administration, development,
planning and order processing. They are referred to as indirect areas, analogous to
production as a direct area.
" Indirect Area Term for all areas of a company that provide supporting services for the
direct area (production). They do not actively participate directly in the manufacture of a
product. These are, for example, development, planning, purchasing, sales, personnel, IT or
controlling.
Indirect areas justify their existence in the preparation, support and assistance for the
direct areas and are linked to the customer benefit if used correctly. Companies that provide
only traditional services fall under the heading of administrative activities. These includes
health insurance companies, continuing education, hotels, hospitals or insurance
companies. A good division of activities is when 80% of the activities in a company are
used for direct production or services for the customer. A maximum of 12% should be
spent on issues and communication at interfaces (e.g., purchasing, order taking, sales). The
remaining maximum of 8% should be used for administrative activities (e.g., planning,
administration, human resources). This rule of numbers can be applied for individual
workplaces until the employees are scheduled within the organization.
What the products are in the production area, the information as well as services are in
the indirect area. The four most important competitive factors are availability (access at any
time), quality (freedom from errors), individualization (modularization, flexibilization) and
costs (low effort). Processes with several different activities and longer processing cycles
form a further difference to production. A comparison between direct and indirect areas can
be seen in ◉ Table 16.1.
16.1 Indirect Areas 219
Table 16.1 Comparison of processes in direct and indirect areas

Aspect Direct area/production Indirect area/administration
Workplace Production/manufacturing Office
Processes Production process Business processes/business transactions
Media Materials and products Intangible information/performance (difficult to
(visible/traceable) see/track)
Pathways Transport routes Media and interfaces
Work Standardized Fluctuations (volume and quality)
content
Tact Timed sequence Variation
Inventory Material stocks (financially Administrative stocks (difficult to value financially)
measurable)
Flow Pull principle No pull, as information is not available
Employees Executive role Independent work and freedom to make decisions
Operation Ensuring production, Acting flexibly, finding creative solutions to
processing orders problems, making decisions
Kaizen Lived for a long time Unfamiliar (Mindset)
Problem Results orientation Organizational orientation
From the summary of a study (Schneider et al. 2011) and further assessments, findings
for activities in administrative areas emerge:
• 70% of the causes of customer complaints arise in administrative processes.

• One-third of office work time is spent filing and searching.
• For 95% of the employees, the information overload has increased due to mail
communication.
• Only every third e-mail is relevant to their own work.
• On average, 72 min per day are needed to process e-mails.
• 30% of working time is spent in meetings where few are satisfied with the efficiency.
• Few employees can describe the overall process to which they are contributing.
• High error rates of often over 25% are caused by a lack of standards and coordination
between departments.
• Despite increased IT support, productivity in administration has remained unchanged in
recent years.
There are differences depending on the activity because the daily routine differs
depending on the task.
Many different problems in the indirect areas originate from ambiguities and
non-standardized work. The following issues originate from non-standardized work and
are the causes of inefficiency:
• Lack of overview
• No transparency
• Search information
• Lack of information
• Unclearities
• Unclear contact persons
• Unclear responsibilities
• Unclear interfaces
• Coordination problems
• Difficult or no order tracking
• Delays
• Lack of flexibility
• Uneven workload
• Error detection too late
In addition, there is a complexity in the administrative tools compared to the tools in

production. The tools of the administration are software programs, which are operated with
different experience and different procedures.
16.2 Waste in the Indirect Sector
In the process flows of administration and in offices there are various problems as well as
stocks and thus waste, just as in production. In the direct area, one person usually has one
task. In the indirect area it often happens that one person has more than one task at the same
time. Due to the usually not so short-cycle processes, wastes are not easy to see. In the
indirect area, wastes must be identified in the same way by “learning to see”. The main
question is: What is value creation in the indirect area and what is not?
The known eight types of waste are transferred to the new environment with the focus
on information (◉ Table 16.2). These become visible through bureaucracy.
The wastes lead to intransparency, queries and an increase of the lead time. As with the
value stream (▶ Chap. 8), a short lead time is also the decisive factor for a good process
flow in the indirect area.
With a regulated flow of information, there are interfaces which can be inefficient.
Media breaks, where something has to be typed, printed, sent by fax or re-entered, are not
value-adding work and are also prone to transmission errors.
An additional fact about information flows is that, unlike a workpiece, information can
be in completely different places at the same time. For example, multiple storage as a
printout in a folder and as a file on a server, the latter possibly multiple and in different
states. If information is not shared, the eighth type of waste also exists here in the form of
unknown or unused knowledge.
Höfer (2016) defines specific waste parameters for the administrative sector (◉
Table 16.3).
16.2 Waste in the Indirect Sector 221
Table 16.2 The eight types of waste in the indirect area with examples
Types of waste Examples
Overinformation and overproduction • Services without customers
• More information than requested
• Nonsensical tasks, duplication of work, reporting
system
• Multiple storage, archive
Inventory, backlogs • Orders not processed
• Inbox (tray and mail)
• Storage space, filing areas, folders
• Batch processing
Movement • Long distances in the office, e.g., to office
equipment, files
• Poor office layout, spatial separation
• Routes to meetings/secretariat
• Travel times
Information transfer • Complicated ways
• Interfaces and media discontinuities
• Long meetings
• High mail traffic
Waiting time and searching • Waiting for orders, releases or information
• Search for documents and information
• Computer and program start, device availability
• Unpunctuality
Failures and rework • Missing, incomplete, incorrect information
• Outdated and different information
• Ambiguities, queries
• Bows
Complicated workflows • Double commissioning, redundancies
• Check, bad votes
• Different priorities
• Complex IT/software
Unused employee potential and unused • Unsuitable use of staff, under /overstraining
information • Unconsidered information
• No knowledge exchange, internal competition
• Lack of familiarization
Analogous to a production area, there are various levers in administrative processes for
avoiding waste and increasing effectiveness and efficiency:
• Reduction of interfaces
• Minimization of the need for clarification and coordination
• Optimization of the information flow
• Avoidance of rework
• Reduction of the order throughput time
Table 16.3 Process-internal waste parameters (Höfer 2016)

Process-internal
measurand Explanation
Number of process All persons including external customers who are confronted with the
participants process flow
Number of interfaces The number of information flows between people
Number of media Any change of communication medium, e.g., from e-mail to paper, from
breaks spreadsheet to database, data from a database to a text document.
Number of queries A query of missing data and facts or the verification of information
Number of loops A repetition of already completed process steps, e.g., by subsequent
changes to the customer’s request
Number of iterations A repetitive activity, such as multiple matching of customer requirements
and production requirements.
Waiting and transfer Duration between the sending of information by the supplying process
time participant and the processing of the information by the receiving process
participant.
Processing time The actual time required to perform a specific task
Process lead time The end-to-end duration of the process
• Increasing flexibility
• Optimization of the workplace, office layout and routes
• Reduction of search times through structured data storage
• Elimination of work steps that are no longer required or of duplicated work
16.3 Methods of Analysis
There are various methods to identify and eliminate waste in individual processes and to
improve workplaces.
The job structure analysis is a similar methodology to the snapshot in production
(▶ Sect. 3.7). It provides good results without additional effort compared to other methods.
A self-recording is carried out over a period of at least 2 weeks. Here, the types of activity
(e.g., meeting, order processing, telephone call, processing mails, coordinating
appointments, etc.) are noted and assigned in fixed cycles (e.g., every 5 min). The focal
points of the work are identified, which indicate waste. The aim is to use the activity
structure to record the activity shares of an organizational unit, to identify waste and
inefficiencies and to obtain transparency about the value creation structure. The evaluation
is the basis for assessing potential for increasing efficiency and for deriving improvements.
The benefit of the methodology lies in the subsequent increase in value creation through
concentration on core activities. Allocation of tasks and responsibilities can be clarified.
The spaghetti diagram is also used in the office environment (▶ Sect. 3.7). The route
diagram shows routes to printers, office machines and files, as well as to contacts and
16.3 Methods of Analysis 223
meetings. Consideration can be given to the location of desks or office machines.

Frequencies of use and quantities of equipment are to be taken into account. Unnecessary
routes are identified and avoided after optimization.
Further analysis possibilities result from the calendars of the employees. Are there any
unscheduled times in the daily routine that can be used for value-adding activities? Which
appointments are unnecessary, duplicated or too long? A visualization of the appointments
over the entire area shows possible accumulations and problems.
In addition, the meeting analysis can be used. Disruptive factors of a meeting are
recorded in relation to the frequency during a meeting. A checklist is used to analyze the
efficiency of meetings. The following topics are included and noted:
• Absences
• Delays of the participants
• Delay of the moderator
• Delays
• No agenda or timetable
• Agenda or schedule not adhered to
• Different levels of knowledge
• Disputes
• Side conversations
• Off-topic discussions
• Technical problems
• Missing material
• Interference by third parties
• Unscheduled interruptions or breaks
• Disturbances due to calls or messages
• Overshoot time
By evaluating the various time blocks (◉ Fig. 16.1), it is possible to identify the greatest
disruptive factors. Possible solutions can be developed from this.
Other methods of analysis exist for different criteria, such as maturity level analysis or
the “sounding board”. Both look at the cultural aspects of cooperation. The maturity level
analysis asks employees about the topics:
• Health: Safety at work

• Quality: Holistic customer orientation
• Delivery: Customer-oriented pull process
• Morality: Cultural change, communication and values
The presented methods are sufficient for the introduction into the topic and the first
optimization approaches.
25
Percentage
75 2 3 7
13
14
6
30
Side conversations
Content discussion
Delays
Different level
Total
No agenda,
no schedule
of knowledge
Schedule overrun
Technical problems
Unplanned interruptions
Fig. 16.1 Example of an evaluation from a meeting analysis
16.4 Process Visualization
Processes are often difficult to observe in administrative areas, as it is mainly information

that is created and communicated. Since several specialists are often involved in the
creation of information and services in a process, only part of the overall process is often
perceived by many of those involved.
In addition to methods to optimize individual processes, interfaces and interactions are
possible with a cross-process view and analysis. The overall system is achieved with a
cross-departmental analysis of the processes. Through the common visualization of the
overall process in a simple way, a uniform understanding of the process can be created
among all process partners.
The value stream mapping for the direct area (▶ Sect. 8.1) is not suitable for the indirect
areas. A better tool for visualizing and describing these processes has proven itself. A long
paper roll, Japanese “makigami” (Wagner and Lindner 2013, p. 59 f.), is used, which is
divided horizontally into different lines (swim lanes). Different names have been found to
be used in parallel for the same tool. Another name is “process map”. In the following, the
Japanese term makigami is used.
16.4 Process Visualization 225
" Makigami An analysis method for visualizing information flows and business pro-
cesses in indirect areas. The individual functions and roles are represented as paths. The
method is the process visualization for the indirect area, analogous to the value stream
mapping.
The Makigami analysis method is used for business processes with potential for
improving information flows. The logical representation gives a good overview and
connects the structural and process organization. Thereby wastes and problems regarding
quality, interfaces as well as the used media are revealed. Different workloads and
problems that lead to longer processing times become apparent and can be eliminated.
The benefits of this method of analysis for administrative processes are:
• Transparency about the current process flow

• Understanding of the overall process as well as upstream and downstream processes
• Awareness of potential process problems: Duplication of work, loops, media
discontinuities
• Generation of improvement ideas to avoid waste
The creation of a Makigami follows a structured procedure (see also Chiarini 2013,
p. 148 ff.). The creation is carried out jointly with the employees involved in the process
within the framework of a workshop. It is crucial for the success of the workshop that the
goal and purpose of the workshop and the process boundaries to be considered are defined
in advance with the client.
To create it, a long roll of paper or hang several large posters next to each other are used.
The same procedure can be done with fields of a spreadsheet software. However, the
common character of a workshop is lost. The paper is divided into several rows of equal
height. The further number of rows corresponds to the process participants or the
departments. At the bottom of the paper, space should be reserved for additional participants.
The workflows are presented as time-based sequential relationships with assignment to
the relevant organizational units. Sticky notes can be used as a simple aid for the colored
visualization of the processes. From left to right, the overall process is displayed using
sticky notes in the respective line of the processing area. The activity and duration are noted
on the sticky notes, as well as the medium and the information that is required. If there are
consultations with other areas, these are connected informatively with a line. If the process
changes the area, the process handling (sticky note) changes to another line. Decisions
(a different colored note rotated 45 degrees) and loops (reconnections) are also entered. The
process times can be used to calculate the shortest lead time for the best case and the longest
lead time for the worst case. Waste, media breaks and loops are marked with a kaizen flash
similar to the value stream (▶ Sect. 8.2). The transparency of the process in the presence of
the participants results in insights and the first ideas for improvement. The disadvantage of
the method is that the complexity and space requirements increase with the number of
process elements and functional areas.
Supervisor
Accounting
Finances
Controlling
Fig. 16.2 Schematic example of a Makigami (detail)
From the visualized actual process (◉ Fig. 16.2), a new target process with less waste is
created, as in the value stream design (▶ Sect. 8.5). Obvious waste is eliminated, hidden
waste is reduced. An information flow that is as straightforward as possible with few
interfaces is mapped. Simultaneous work, the elimination of unnecessary process steps, the
combination of activities and the acceleration of processes shorten the lead time. The goal
of the target process is to make the process under consideration more efficient. The goal is
to create exactly what the customer needs with as few resources as necessary.
In order to get from the current to the target state, a list of measures is created. On this
basis, the process is optimized. A new standard for the process flow is created in which all
agreements are laid down.
Optimizations can be achieved by various measures in the process flow. The usual
process optimizations are:
• Eliminate, dismiss
• Accelerate
• Combining, merging, integrating
• Outsourcing, relocation
• Synchronize, parallelize
• Reordering
• Harmonize
• Add (process depth)
• Automate
16.5 Lean in the Indirect Area
Lean in the indirect area is a broad subject area and has meanwhile become an own lean. It
is called “lean administration” or “lean office” and stands for lean in administrative areas
and offices. The terms are a variation of “lean production”, which stands for lean in direct
areas. The basic approach is the same as in production. The difference with production is
that many processes are not obvious at first and the repetition cycles of an activity are
16.5 Lean in the Indirect Area 227
longer. In some cases, processes in indirect areas are not repeated. There are greater
opportunities for optimization in recurring activities.
Some aspects are considered below. The approach and methodology are similar to the
approach as in the implementation in lean production. Comprehensive knowledge about
lean administration is available as stand-alone literature, e.g., with a two-part workbook by
Wiegand and Franck (2011) and Wiegand and Nutz (2007). Tautrim (2014) also links Lean
to the indirect sector.
For office workplaces and indirect areas, the classic 5S methodology is applied as in the
direct area (▶ Sect. 10.2). In the indirect area, there is also unnecessary material, such as
parts for old computers and discarded office machines, unnecessary office material and old
files and documents. These are items that have been kept because they might be needed
1 day. Standardized shared work areas (meeting rooms, areas for printers/copiers or coffee
kitchens) and workstations allow for more efficient work and better substitution
arrangements in case of absences. The desk as a workstation is set up in the same way as
a workstation in production: ergonomically, without unnecessary material and the impor-
tant tools within direct reach. For example, the positioning of material on the desk, such as
the telephone, should be checked. Material stocks such as office supplies or orders are
reduced (◉ Fig. 16.3).
Clear instructions on the functions of devices such as copiers, printers or scanners
support the operating process and help in the event of faults. Instructions, which are
attached directly to the devices, avoid operating errors and thus errors, failures and queries
with colleagues.
Another big issue is e-mails. Agreeing rules and using templates will reduce the burden
within departments. Rules for handling should be agreed upon.
Example
Regulations for the use of e-mails can be, for example, indicators in the subject line to
recognize and sort information “(i)”, questions “(?)” and appointment requests “(A)”.
Short messages that are only in the subject line and end with “(eom)” for “end of mail”
also speed up communication. Working with links instead of attachments and redefining
distribution lists are helpful practices to avoid waste. Likewise, agree on how to handle
the address field “CC”. ◄
Meetings are a “special” topic in administrative areas. Especially in the development

and engineering departments. Meetings should last either 25 or 50 minutes and always start
at the full hour. The pre-set times synchronize calendars and give enough time to attend
subsequent meetings on time. An agenda must be available, and invitees must be told their
task for the meeting, with the necessary information on what documents to prepare and
bring. This ensures that each participant is aware of why they are attending the meeting and
what their task will be. A schedule, agenda, and additional rules for the meeting will reduce
waste for all participants. Consistency is when attendance at meetings may be declined
because there is no agenda or justification for attendance.
Fig. 16.3 Desk before (top) and after (bottom) a 5S workshop
Visual standards on physical and virtual folders simplify working with and retrieving
information. Numbering of file folders on shared drives allows working with numbers in
front of the folder names (◉ Fig. 16.4).
Example
A three—or four-digit numbering is supplemented by the next digit, depending on the
depth of the folder structure of a file store. The first digit represents the first directory
level, digit two the second, and digit three the third. At the top level are the folders
000, 100, 200, 300, and so on. Folder 100 contains folders numbered 110, 120,
130 through 190, and below that is the third level. For example, in folder 130 with
folder numbers 131 to 139. Four-digit numbers with one level more are also possible in
the same way. This results in a limitation in the directory depth from three to four levels
and a directory width to a maximum of nine folders. Due to the structure and coding,
16.5 Lean in the Indirect Area 229
Fig. 16.4 Exemplary + 000 General information

representation of a structured – 100 Management
and numbered folder structure + 110 Human resources
+ 120 Finances
– 130 Secretariat
+ 131 Letter templates
+ 132 Report templates
+ 133 Business trips
+ 134 How to find us
– 135 Forms
+ 136 Office supplies
+ 137 Rooms
+ 138 IT
+ 139 Instructions-standards
+ 140 Health-Safety
+ 150 Presentations
+ 160 Events-Training
+ 170 Goals-Annual reports
+ 180 Projects
+ 190 Checklists
+ 200 Administration
+ 300 Development
+ 400 Planning
+ 500 Production
+ 600 Logistics
files are found more quickly, and duplicate files are reduced. The communication can be
done very easily by the numerical codes, e.g., the forms are in the folder with the
number 135.
Physical folders are given the same numbering logic as the directories on the drive
and are thus linked. Sorting is maintained by a diagonal-colored stripe across all folder
spines. The visual standard helps to detect mix-ups and missing folders immediately. ◄
Labelling lockers and attaching information about the contents from the outside
eliminates the need to search and open lockers unnecessarily several times. If items are
removed or borrowed, the employee leaves a name card or business card.
Lean administration also focuses on the customer, and with him, the customer tact time.
Example
The company Trumpf introduced an acoustic signal in sales during the crisis in 2009.
Since the orders suddenly stopped coming in and the sales employees were to be
motivated on the one hand and on the other hand the customer demand was to be
made recognizable for everyone, a ship’s bell was hung up. Anyone who received a
customer order would go to the bell and ring it. This has become so ingrained in the
culture of the company that the bell continues to endure and is still used today. ◄
Many simple measures and tools can facilitate and improve work and cooperation in the
indirect area.
The Following Questions are to be Answered in the Topic Area of Lean

Administration
• Do the employees in the indirect areas know their customers?

• Is it guaranteed that all employees have up-to-date information?
• Are processes worked on in a process-oriented manner and are boundaries drawn in an
area-oriented manner?
• Are all activities for the fulfilment of the tasks from the customer’s point of view value-
adding and goal-oriented?
• Have wasted process times such as unnecessary waiting, queries, searches, plausibility
checks, corrections, etc. been eliminated?
• Are less than 20% of the workforce engaged in interface and administrative activities?
• Is quality an important feature in the processes?
• Is the quality reported back and does a problem-solving process take place in case of
errors?
Questions in the form of a 5S Checklist for the Office Area
• Are cabinets and common storage areas (e.g., inbox) labelled in a uniform, consistent
and logical manner (e.g., clear numbering system)?
• Are standards visualized?
• Are “best before” dates for the duration of validity and retention of necessarily
available?
• Are folders labeled consistently, consistently and logically (e.g., by project, date, team)?
• Are the responsibilities and contact persons for IT, copier, fax, office machines, rooms
(printer/copier room, kitchen, meeting room), office material cupboard visualized?
• Are responsibilities assigned for the data on the drive, project drive and bulletin board
(or info/team board)?
• Are decisions visualized?
• Is there a substitution policy?
• Is there clear and up-to-date signage for areas, offices, corridors?
• Is there a seating plan, door signs, information boards to inform staff and visitors?
• Are the workstations labeled with names?
• Is the availability of operating manuals for printers, fax machines, telephones, scanners,
beamers, shredders, laminators and other office and kitchen equipment guaranteed?
• Checking whether a wardrobe is available and whether it is visualized
16.7 Summary 231
Questions for Reflection on the Processes
• What was the annoyance about because it could work or run more simply?
• How can the work or certain work contents be facilitated?
• How can the opportunities for error be reduced?
• What questions about my work or tasks received are unresolved?
• How many documentations are kept multiple times?
• How often do you wait for information?
• How many operations pass processes multiple times in loops?
16.7 Summary
Summary on the Subject of Administration

• The term “indirect areas” stands for all departments of a company that provide
supporting services for the direct area, i.e., production. The product of the indirect
area is information and information flows.
• The four most important competitive factors are availability, quality, customization
and cost.
• Many problems in the indirect areas are caused by lack of clarity and standards.
• In the direct area, one person usually has one task, in the indirect area often several
tasks in parallel.
• The eight types of waste in the indirect area are over-information and over-
production, inventories, backlogs, unnecessary movement, information transfer,
waiting and searching, errors and rework, complicated work processes, and unused
employee potential and unused information.
• The worst waste in the indirect sector is over—and under-information.
• Waste leads to intransparency, demands and an increase in lead time. Analogous to
the direct area, a short lead time is the decisive factor for a good process flow.
• In order to identify and eliminate waste in individual processes and to improve
workplaces, there are various methods: job structure analysis, spaghetti diagram,
calendar analysis and meeting analysis. Further analysis methods exist for different
criteria, e.g., maturity analysis or the sounding board.
• The value stream analysis is not suitable for the indirect area. The appropriate
analysis tool is the makigami. This is also called process map or swim lanes. The
makigami is an analysis method for the visualization of information flows and
business processes in indirect areas. It reveals waste and problems with regard to
quality, interfaces and the media used.
• Indirect areas are more difficult to optimize because information flows are not easy to
see. Information can run in parallel, and processes do not repeat themselves in a
short-cycle manner.
• The creation of the makigami is carried out within the framework of a workshop
together with the employees involved in the process. The target process is
characterized by an information flow that is as straightforward as possible with few
interfaces. To get from the current state to the target, a list of measures is kept.
• Lean in the indirect area is called lean administration and lean office.
• The desk is set up as a workstation in the same way as a workstation in
production. The arrangements should be ergonomic, and the important tools
are arranged in direct access. Unnecessary material is eliminated. ◄
Questions
• How should the percentage division of a company into direct and indirect activities
be implemented?
• How does the direct area differ from the indirect area in terms of workplace, routes,
work content, flow, pace, employees, working methods and kaizen?
• How can the content of a study (Schneider et al. 2011) be summarised with regard to
the findings for activities in the administrative sector?
• What are the examples of the eight types of waste in the indirect sector?
• How is the benefit of the makigami analysis method defined?
• What are typical process optimizations in the indirect area?
• What ideas for optimizing the indirect area can be implemented regarding e-mails,
meetings and visual standards?
References
Chiarini A (2013) Lean organization: from the tools of the toyota production system to lean office.
Springer, Mailand
Höfer S (2016) Lean Sales: Steigerung des Wertschöpfungsanteils in Vertriebsprozessen. In: Künzel
H (ed) Erfolgsfaktor Lean Management 2.0–Wettbewerbsfähige Verschlankung auf nachhaltige
und kundenorientierte Weise. Springer Gabler, Berlin, Heidelberg, pp 189–208
Schneider R, Schöllhammer O, Meizer F, Lingitz L (2011) Lean Office 2010–Wie schlank sind
Unternehmen in der Administration wirklich? In: Westkämper E, Sihn W (eds) Fraunhofer-
Institut für Produktionstechnik und Automatisierung IPA. Fraunhofer, Stuttgart
Tautrim J (2014) Lean Administration Taschenbuch/Beraterleitfaden–Wesentliche Konzepte für
mehr Effizienz in der Verwaltung. Epubli, Berlin
Wagner KW, Lindner AM (2013) Wertstromorientiertes Prozessmanagement–Effizienz steigern,
Verschwendung reduzieren. Abläufe optimieren, Hanser, Munich
Wiegand B, Franck P (2011) Lean Administration I–So werden Geschäftsprozesse transparent:
Schritt 1: Die Analyse. In: Workbook, 4th edn. Lean Management Institut, Aachen
Wiegand B, Nutz K (2007) Lean Administration II–So managen Sie Geschäftsprozesse richtig:
Schritt 2: Die Optimierung. Workbook, Lean Management Institut, Aachen
Product Design
17
We are working on better and better products through daily

improvement.
Kiichiro Toyoda
Overview
Product development has a major influence on the value-adding processes in pro-
duction. The design of the product directly influences the activities in production.
Measures in product design support the following optimal production. Through key
figures and sensors, fields of action for the product design are identified and
improved. The consideration of the product design is not only for a good production,
but also has an influence on the entire product life cycle.
Knalsch GmbH: New Product Design for the Knalschi 300

Joerg Escher is the head of product development at Knalsch GmbH. He and his
developers are in the process of developing the new Knalschi 300 product.
In the meeting with the management, the discussion escalates, and things get loud
between Escher and the planning manager Susanne Moos. She is currently reducing
waste in the planning of the new production for the Knalschi 300, and Escher is
(continued)

https://doi.org/10.1007/978-3-658-36087-0_17
234 17 Product Design
trying to condense and reduce the amount of value-adding work on the product for
which he is responsible so that the product can be assembled in the shortest possible
process time.
“Guys, guys,” Alsch conciliates. “Let’s think about our customers and reducing
waste! You’re right, but somehow your ratios don’t match. Susanne measures in time
and you, Joerg, the percentage? Let’s rather calculate in absolute time. As little waste
as possible and as little value-adding time as possible. Then it works!”
“OK, agreed, of course we can do that,” says Escher. “Then we adjust our metrics
from proportions to absolute values. But I still need good ideas to make our products
assemble well.”
“And also repair well, if necessary,” Alsch adds. “That’s just as important to me
for our customers.”
Escher has an idea, “All right. And we’ll buy the difficult parts from a supplier,
then let him deal with it and we’ll have the problem off the table.”
Dr. Alsch, however, disagrees, “The hell he does! He charges us for all that. A
good design does not stop within our company. It’s developed in such a way that the
supplier could also produce it without any problems. But I think we can manage that
ourselves.”
17.1 Optimization of Value-Added Time
In the MIT study of 1990 (Womack et al. 1990, p. 97), the ease of production of vehicles in
assembly plants was rated by each other’s manufacturers. The result showed clear
differences (◉ Fig. 17.1).
Current production and production engineering can only eliminate waste to a certain
extent. The areas reach their limits when the product design, which is responsible for
development, dictates the activity. If parts do not fit together perfectly, time spent aligning
them is unnecessary and influenced solely by the design. If multiple parts are to be joined,
multiple gripping times and times for joining multiple parts are required. If the parts are
packed with a protective cover to prevent scratching, the removal of the protective cover
and the time for this is determined by the design. If a part must be assembled with four
screws, it requires three times more time than if it were assembled with one screw. These
and many other examples show that the design determines the process flow and the time
required in production.
The development department is thus responsible for a significant part of the value-added
and non-value-added activities in production. The value-added time portion can be
accelerated or compressed by development. This means that the value-adding time is
further compressed.
One problem is the purchase prices of the parts. If there is a cost optimization for small
parts, people prefer to buy cheap parts instead of more specialized solutions that would be
17.1 Optimization of Value-Added Time 235
Percentage
100
90
80
70
60
50
40
30
20
10
0
Fig. 17.1 Classification of average production friendliness in vehicle assembly in percent with
spread of value range. (Data source: Womack et al. 1990, p. 97)
better for the process. Often the parts are a bit more expensive. In a total cost consideration,
where the production time is included, the calculation changes, because the production time
multiplied by the number of parts justifies a production-optimized solution.
Example
An example is the use of fewer screw connections or the use of clips instead of screws.
With the same effect of the connection, the methodical differences save assembly time.
Screws with a search point are more expensive but can be screwed much easier if
they do not tilt. On the other hand, there are screws that are cheaper but take longer to
install because they have three or four more threads than necessary. Or slightly more
expensive cable mounts, which do not require the cable binder residue to be cut off and
disposed of after installation. ◄
Product development not only has an influence on the manufacturing time, but also on
the quality. Depending on the well-thought-out manufacturing process, there is a difference
in the design and thus the quality result. By considering poka yoke with appropriate fits in
the design, the expenses for setting, for testing and for reworking are reduced. The
production costs are determined by the specified tools and investments for production
equipment.
The development has a great influence on the production with the product design. The
manufacturing processes are determined, as are the materials, the manufacturing time, the
quality and the manufacturing costs. The lean ideas of lean production should already be
taken into account during product development. This supports the idea of “one-touch
assembly”, assembling with only one hand movement and producing quality without
rechecking, setting or adjusting.
Example
An example to illustrate this is the transport fastening of a cable harness. Traditionally,
bundling is done with a cable binder. This must be cut and disposed of. The problem
here is the danger of damaging the cable harness when cutting it. After shoring, the cut
cable ties have to be disposed of, which causes mess when falling down, additional ways
for disposal and waste. The safety aspect with possible risk of injury during cutting is
added as an additional hazard.
Solutions could be re-openable cable binders, velcro strips or rubber bands. In
vehicle assembly, transport bags with a zipper are used for larger cable harnesses,
which at the same time serve for better sorting and feed through holes. This solution
creates a cycle for returning the bags to the supplier. How does the benchmark solve the
problem? Toyota uses white plastic adhesive tapes on black cables with predetermined
breaking points. The adhesive tapes are torn apart with a hand movement when the
cables are placed into the vehicle. The tape residue sticks to the cable. This is not
disturbing, because the cables with the adhesive tape residue are no longer visible under
the carpets after installation. The result: no danger, no waste, no return packaging and no
waste in the process. ◄
17.2 Design for Manufacturing
The difference to mass production is an unstoppable trend of customers to individualize

products. The number of variants is increasing. At BMW, for example, a single vehicle
model now has more than ten to the 17th power combination options in terms of
equipment.
Individual products increase the variance in production time. Each doubling of variants
increases production costs by 20 to 35% (Wildemann 2011, p. 33). The variants become a
cost driver, because the advantages of mass production can no longer be used. In addition,
there are negative effects on inventory levels. In the logistics chain and the control of the
unfolding, the complexity increases. Individual variants, such as colors, country variants,
applications, etc., result in a high number of different parts for each product. Especially
where a customer comes into direct contact with the product, as in the case of a door handle
or steering wheel, he should also recognize the individuality. If the same scope is built into
each product, this can be solved by sequencing (cf. just-in-time, ▶ Sect. 7.4). It becomes
more difficult with options that trigger a more time-intensive ordering and manufacturing
process, such as the seats in a passenger aircraft compared to a cargo aircraft.
17.2 Design for Manufacturing 237
Many product issues that determine later production can only be influenced during the
design and development phase. 70 to 90% of the later production costs are determined by
the product design and can no longer be optimized at a later point in time. “Design for
Manufacturing” starts in the product development phase in order to consider topics of the
later production in the product design.
" Design for Manufacturing (DfM) The optimization of product design, which considers
the efficient production of a product. This is product design with the target of simple, fast
and error-free production or assembly.
Design for manufacturing pursues the following goals of subsequent production:
• Reduction of variants in production

• Reduction of process times
• Increase in process quality
• Confusion prevention
• Standardized components
• Improvement of occupational safety and ergonomics
The objectives work towards efficient production with low costs. This can be achieved
by optimizing the production time and also by safeguarding against possible errors in
production.
The focus is on the total cost. An additional expenditure for the use of materials, such as
special screws with a “search tip” so that they do not tilt during insertion, can be
compensated in production with better quality and less time overrun. In production, this
results in less waste later: no damaged parts and no longer process time if the screw is
turned in crooked. The total costs are reduced, despite the higher part costs from the
development point of view.
Requirements for the product are derived from the specified goals (Chang et al. 1997,
p. 596 ff.; Anderson 2004, p. 257 ff.). These requirements are implemented as
specifications and rules in the form of standards by development during product design.
Various generally applicable design rules have been defined, which have a positive effect
on the parameters of a production (VDA 2015, p. 25 ff.). A selection of the rules reads:
• Consideration of safety, no possibility of injury

• Number of parts as low as possible, integrated design
• Linear joining direction, mesh-parallel surfaces, joining vertically from above
• Large jointing clearances, accessibility from all sides, no hidden areas or undercuts
• Good gripping possibilities
• Joining aids, insertion aids, latching, pre-fixing, positioning aids
• One-touch assembly, self-finding connections (e.g., magnetic connector)
• No separate connecting elements (e.g., with snap connections, clips instead of screws)
• No flexible parts, such as hoses or cables

• Ordering options
• Pre-assembled assemblies, modules
• Confusion protection, poka yoke, audible or perceptible fastenings (latching)
• Process-safe, no adjustment, no setting, no testing
• Tolerances are only planned as accurately as necessary and not more
• Common parts, standard small parts
• Activities within one tact cycle and executable by one person
• Parts easy to transport, not too heavy and suitable for load carriers
• Insensitive surfaces against soiling and scratching, no additional packing
• Uniform workpiece mounting and clamping as well as fixing points
• Design takes into account the current production technologies
• Use of standardized tools with standardized systems, no special tools
The last point regarding standardized tools makes sense for the entire product so that no
tool change must take place in production. This is just as relevant for repairs across several
series and over a longer period, as otherwise the service area would need different tools
again for maintenance and repairs.
The standardization of small parts has potential. Often there are parts with identical
functions, but with different colors. This makes no sense for seals, for example.
Standardization is a good idea. The same applies to screws with different screw heads.
Example
When comparing the number of different types of screws on a Mercedes-Benz C-Class
to a Toyota Camry, it was found that the Camry needed only about half the varieties,
with 62. The C-Class had 126 different types of screws. ◄
A production-oriented product design does not stop at the own production. If a devel-
opment makes it easy for itself and the product is produced by a supplier, the issues are
usually not realized. Some companies deliberately change their strategy to outsource parts
to save costs. The ideas for an optimal production are no longer considered, instead only
the part price is paid attention to. This is set as low as possible in negotiations with
suppliers. The supplier must see how he can produce the part at the agreed price. It
would not be justifiable not to consider a product design suitable for production in this
case. The consequence would be that the production costs would also increase for the
supplier if the product is no longer easy to produce or has complex structures. These costs
will certainly be passed on by the supplier to the purchaser. At the latest, repairs and various
screwings on the components will additionally increase the cost expenses unnecessarily.
Therefore, a production-oriented product design does not end in the own company. It
concerns the entire process chain.
17.3 Design for X 239
17.3 Design for X
“Design for X” stands for a holistic product development approach that takes into account
all phases of the product life cycle.
" Design for X (DfX) Optimization of the product design, which should consider all
phases of product creation, use and utilization of a product. The “X” stands for different
areas that address their requirements for the product.
In addition to manufacturing, the “X” in DfX stands as a variable for various other areas
that need to be considered in the product design and have different requirements for the
product. The “X” can be replaced with the following topics:
• Manufacturing/assembly
• Testability
• Logistics
• Service/repair
• Environment
Several DfX aspects affect the entire process chain from production to use and
recycling.
Variant Reduction
A higher number of variants causes higher costs in the process chain and must be
considered in comparison to the possible sales revenue.
For example, the number of available colours can be reduced. Alternatively, small parts
such as screws, other connecting elements or seals etc. can be compared and reduced in
terms of their function.
Example
The company Procter & Gamble reduced its shampoo “Head & Shoulders” from 22 to
15 varieties in 1998. Since then, the number of varieties has increased only slightly
(as of 2017: 17 varieties). ◄
If variants cannot be dispensed with, one possible solution is to bundle the options in
packages (e.g., powerful computer with more hard disk capacity or interior equipment
package for a car). Options can also be included as standard equipment, e.g., radio and air
conditioning are always included. Another solution is to standardize the product.
Example
The country variants due to different power voltage of devices were saved by the fact
that the power supply can be operated with 110 Volt as well as with 230 Volt. At the
same time, there is an advantage for the customer who can also use his device in other
countries. He has an additional added value. In the production and repair of the devices,
there is a reduction in parts and a simplification in the process. ◄
Late Creation of Variants

Adapting a standard product to the customer variant as far back in the production process as
possible reduces complexity and storage stages (Ehrlenspiel et al. 2014, p. 311). The
pacing process (▶ Sect. 7.5) can be controlled later and the lead time is reduced. The
control in the one-piece flow after variant creation is facilitated and the parts can be
delivered in sequence.
Potentials become possible through changes in the product and in the process.
Examples
An example is the procedure of Benetton (◉ Fig. 17.2). Classically, yarns are dyed and
then the fabric is knitted from the dyed yarn. Benetton reverses the process. The fabric is
first knitted and then dyed. It results in only a single variation in white color between the
two processes.
The late formation of variants in the manufacturing process can avoid an increase in
costs if the number of variants increases significantly from 150 to 250. Using the
example of household appliances, variable manufacturing costs are reduced by about
5% (Rommel et al. 1993, p. 37 f.). ◄
Example
A late variant, which does not create a temporal difference in production, but is very
noticeable in customer perception, is the radiator grille of the Mercedes-Benz C-Class
from the year 2007 to 2015 (model series 204). In this model series, an additional sporty
variant with a centrally placed Mercedes star was introduced for the first time in addition
to the regular radiator grille. The installation of the sportier radiator grille for the sports
variant gave the vehicle a different appearance. At the same time, the “Avantgarde”
sports variant was offered with a price premium. Customers were very interested in the
spare part, not only because of possible accidents at the front, but because the exchange
from the regular radiator grille to the sporty radiator grille was very easy. And just as
easy as in production. Rodatz (2007) explained in an article the exchange in only nine
steps including the necessary parts with part numbers.
17.3 Design for X 241
Classic process Postponement of variants
Dyeing Knitting Knitting Dyeing
Fig. 17.2 Comparison of variant formation using the example “dyeing yarn and knitting fabric
There are rumors that the sporty grille would have been planned very late in the
product development process) at the request of the board of management. This was done
so late that the body was already fixed. If the decision had been made earlier, there might
have been one more variant for the surrounding body panels or bumpers. In the
following series, the radiator grille can no longer simply be replaced. ◄
Common Parts and Reuse

An economically sensible solution is when the same parts are used for different products.
What occurs many times in food production (same product with different outer packaging)
is also ideal for other products. Identical engines and components for different vehicle
models and brands. High volumes of identical parts improve logistics, the process chain
and service in many respects. In the field of vehicle manufacturing, identical platforms are
concealed among many models and vehicle series. A different body is superimposed on
each of these. This increases flexibility in the event of changes in customer requirements.
Example
Well-known examples are Santa Clauses and Easter bunnies made of chocolate. The
packaging is individual, the chocolate body inside is identical (Ehrlenspiel et al. 2014,
p. 311).
One example from the passenger car segment was the “Chrylser LH” and the “Dodge
Intrepid”. Both vehicles were sold under different brand names with slightly different
body designs on the same platform. However, the bodywork, the interior and the
powertrain shared between 60 and 100% of the same parts. Only the cockpit with the
instrument panel and the attached brand names differs and are individual. ◄
Platform and module strategies are not always easy to plan ahead. However, they are an
important topic for current and future products so that the advantages can be used and
adopted. Partners with whom cooperation can take place also play a role here.
Reusing components from a previous product series is usually worthwhile. For example,
a very well-developed seat at Toyota is carried over into the next series. The experience is
available. Improvements can be made on the existing basis. The parts and the suppliers are
known. Toyota is at 60 to 70% common part rate between comparable models (e.g., Toyota
Camry and Lexus ES in 2003). Comparable manufacturers are at 30 to 40%.
Logistics Optimization
Supplier parts must be transported to production. To keep transport costs low, the transport
volume is decisive. A logistics-compatible product design must therefore consider the
dimensions and shapes of the parts. Parts must not be bulky and should be easy to stack. In
the case of transport in a load carrier, the part must fit into a standard load carrier, which
should have the smallest possible dimensions. The parts must be easy to transport.
Additional packaging around the parts, which requires unpacking, should be avoided.
Surfaces should not be sensitive, otherwise they must be protected.
The weight of the parts should be such that they meet the legal requirements and are easy
to transport. The need for a forklift truck due to the weight should be avoided. The parts
should be transportable in load carriers, which can be transported with tugger route trains or
moved by means of transport rollers. Individual parts should be so light that they can be
easily carried by hand in an assembly and easily moved on in a production.
The finished product should be packaged in such a way that it can be transported away
without difficulty. A suitable outer packaging must be designed. This means that it should
correspond to a fraction of the larger packaging or loading unit size (e.g., a pallet) in order
to achieve optimum packing density. This can be seen, for example, in the packaging of
self-assembly furniture. This also applies to the arrangement of the parts within the
packaging cartons.
Testing, Maintainability and Reparability

It must be possible to test modules in the station and not only at the end of production. For
this purpose, plugging in electronic components under voltage is necessary so that it is
immediately recognizable whether the component is functioning. The ability to test the
product at any time during production and later in operation helps with smooth production
as well as in the later life cycle of the product.
Products must be easy to maintain and repair. For this purpose, wear parts must be able
to be replaced without any problems to keep repair and downtimes as low as possible. The
17.4 Measurement of Product Design 243
parts to be repaired must be easily accessible. Smaller repairs can be sensibly carried out by
the user himself.
Negative Example
A sports car had been designed in such a way that the entire engine had to be removed to
change the spark plugs. ◄
What can be produced well should also be repaired well. Good accessibility, identical
spare parts and the same tools for different repairs are a requirement for development.
Take-back and Recycling

Old and used products can be taken back and refurbished, recycled or disposed of properly.
Simple assembly usually results in simple disassembly. The components are marked to
separate them according to materials. This makes it possible to recycle and reuse raw
materials. Materials are thus returned to the cycle as secondary raw materials.
The product packaging specified by the development can be made of environmentally
friendly materials and can be taken back later (e.g., cardboard instead of styrofoam or
plastic film). Through digitalization, instructions and information can be made available
online in all languages instead of having to be printed out on paper.
17.4 Measurement of Product Design
Planners and operators of a production should track the topics of product creation that
affect them via corresponding key figures. The implementation of DfM measures should be
presented as a key figure.
The key figure “engineered hours per vehicle” (eHPV) is used in vehicle development to
record the time share of a design in production. The design-related work content in vehicle
assembly is recorded. Work content is composed of the activities for the assembly of all
components of the vehicle (VDA 2015, p. 8). By measuring and optimizing the product
design, the influence on the subsequent process time is determined and made transparent.
Example
The Siemens company has introduced a metric that captures the two relevant process
issues in the production of control electronics. The two variables are the number of
process steps and the complexity of the individual production steps. The more process
steps (30 points deducted in each case) and the more complex the production (points
deducted according to process complexity: safety, quality, lead time, risk), the smaller
and worse the initial score of 1000 points. Developments are measured over the
development phases. The new assemblies are compared to the previous models. This
focus makes the production processes less complex and safer. ◄
The quality of the product design can be measured by various characteristic values and
properties. These are called DfX sensors. The following DfX sensors provide feedback on a
suitable product design and initiate new implementation ideas for an improved product
design:
• Findings from the series production of the predecessor product

• Analysis of the product
• CAD data, digital assembly (digital mock-up)
• Prototype parts
• Product disassembly and assembly (own and third-party products)
• Comparison with comparable own products of comparable variants
• Comparison with comparable competitor products, benchmark
• Quality feedback from production on defects, rework and rejects
• Results from the problem-solving processes
• Quality feedback from customers or other external institutions
• Process monitoring, waste analysis, chalk circle (▶ Sect. 3.7)
• Value stream mapping (▶ Chap. 8)
• Evaluations of occupational safety, injuries, ergonomics
The Following Questions are to be Answered in the Subject Area of Product Design
• Is the maturity of the product sufficient for a waste-free and stable process?
• Doesn’t product design require additional process time?
• Is the product designed for production?
• Are there guidelines for a production-compatible product design? Are these applied?
• Is the development aware of the effects of design features in later production?
• Is the added value already considered in the development phase and condensed as far as
possible?
• Does the product have suitable clamping and fixing points for later production?
• Are the rules for good manufacturing and production considered during product
development?
• Are products designed in such a way that they can be manufactured without defects?
• Can the product be tested for quality problems within the quality control loops even
during production without being completed (e.g., intermediate tests of electronic
assemblies)?
• Are tolerances defined as precisely as necessary?
17.6 Summary 245
• Are the premises of production and logistics considered during development?

• Are there any further optimizations to the product design after the start of production?
• In addition to in-house production, have the requirements of the supply chain and
suppliers also been considered in the product design?
• Is maintenance easy to carry out? Is the product easy to repair?
• Are product benchmarks (internal and external) performed on a regular basis?
17.6 Summary
Summary on the Subject of Product Design

• The difference to mass production is an unstoppable trend of customers to individu-
alize products.
• Product design has a decisive influence on production. It is therefore a central lever
for lean production planning, reliable production as well as repair and recycling.
• The development division is responsible for some of the value-added and non-value-
added activities in production.
• By incorporating poka yoke and fits into the design, the expense of adjustment,
testing and rework is reduced or eliminated.
• The lean ideas of lean production already pay off during product creation. 70 to 90%
of the later production costs are determined by the product design and can no longer
be optimized later.
• Design for Manufacturing means the optimization of the product design, which takes
into account the efficient manufacturing of a product. Here, the focus is on the total
costs and not the part costs.
• Product requirements are implemented as specifications and rules in the form of
standards by the development department during product design.
• A product design that is suitable for production does not stop at the supplier’s own
production, because production costs increase for the supplier if the product is not
easy to produce or has complexities.
• Design for X (DfX) optimizes product design so that all phases of a product’s
creation, use, and recovery are considered. The “X” stands as a variable for the
following topics: Manufacturing, Assembly, Testability, Logistics, Service, Repair
and Environment.
• Higher numbers of variants cause higher costs in the process chain and must be
considered in comparison to the planned sales revenue. The reduction of variants is a
cost reduction measure. Especially if the reduction is not caused by the customer.
• Late variant creation optimizes the process chain. The later adaptation of a standard
product to the customer variant in the production process reduces the complexity and
storage stages in a process chain. The pacemaker process is closer to the customer in
the process chain and only introduces the variants there.
• Standardized parts through the use of common parts and reuse in different products
reduce the variety of parts.
• To keep the transport costs low, the transport volume is decisive; a logistics-oriented
product design should therefore take into account the dimensions and shape of the
parts.
• Testing of modules should already be possible in the station and not only at the end of
production. Products must be easy to maintain and repair.
• In product design, take-back and recycling must be considered. Good assembly
usually results in good disassembly. Old products can be taken back, refurbished,
recycled or disposed of properly.
• The quality of the product design can be measured by various characteristic values
and properties, these are called DfX sensors. ◄
Questions
• How can the development area accelerate or condense the value-added time share in
production?
• What are the goals of subsequent production in Design for Manufacturing?
• Various generally applicable design rules have been found which have a positive
effect on the parameters of a production. What are these rules?
• What are examples of DfX aspects regarding variant reduction, later variant creation,
common parts and reuse, logistics optimization, testing, maintainability and repair-
ability, and take-back and recycling?
• What does the key figure eHPV show?
• Which characteristic values and properties provide feedback on a suitable product
design?
References
Anderson DM (2004) Design for manufacturability & concurrent engineering: how to design for low
cost, design in high quality, design for lean manufacture, and design quickly for fast production.
CMI Press, Cambria
Chang TC, Wysk RA, Wang HP (1997) Computer-aided manufacturing, 2nd edn. Prentice-Hall,
Upper Saddle River
Ehrlenspiel K, Kiewert A, Lindemann U, Mörtl M (2014) Kostengünstig Entwickeln und
Konstruieren: Kostenmanagement bei der integrierten Produktentwicklung, 7th edn. Springer
Vieweg, Berlin
Rodatz D (2007) Kaufberatung Mercedes C-Klasse–Welcher Stern strahlt am hellsten? Auto Bild 25:
32–39
Rommel G, Brück F, Diederichs R, Kempis RD, Kluge J (1993) Einfach Überlegen: das
Unternehmenskonzept, das die Schlanken schlank und die Schnellen schnell macht. Schäffer-
Poeschel, Stuttgart
References 247
VDA (2015) VDA 4812: Einheitliche eHPV-Bewertung in der Fahrzeugzerlegung. Verband der
Automobilindustrie, Berlin
Wildemann H (2011) Variantenmanagement–Leitfaden zur Komplexitätsreduzierung
beherrschung und -vermeidung in Produkt und Prozess, 19th edn. TCW, Munich
Womack JP, Jones DT, Roos D (1990) The machine that changed the world. Rawson Associates,
New York
Product Development Process
18
Production is God!
Nick Bowley
Overview
Lean principles improve the path to a product during development. Through the use
of various lean principles, product development is optimized and accelerated in its
lead time. The result is a shortened development time with the goal of having the
product on the market faster. This methodology is called lean development.
Knalsch GmbH: The Development Is at the Beginning

Joerg Escher, the head of development at Knalsch GmbH, would also like to keep his
department lean in its processes. He is particularly annoyed when they are working
on the new product generation, the Knalschi 300, and production planning still has
queries and change requests for the Knalschi 200, which has just started in
production.
“It’s finished and I’m no longer interested! That only keeps us from the important
new development for our customers,” Escher defends himself.
Shouldn’t lean processes lead to a reduction in workload and not more workload?

https://doi.org/10.1007/978-3-658-36087-0_18
250 18 Product Development Process
Table 18.1 Market situation using the example of the premium car sector
Criteria 1980 2017
Market Low competition Tough competition
Product Few models, less optional extras Many model variants, large selection
complexity of optional extras
Product High product maturity and quality due to Strategic goals are “zero defects” and
quality long development time customer satisfaction
Technologies High degree of innovation Further increase in the degree of
innovation
Time-to- 7 years and more 4 years and less
market
Work Manageable with few participants Network matrix structure with many
organization participants
Costs Low stress level in costs High stress level in costs
18.1 Situation of Product Development
Just as production has changed from mass production to production in a one-piece flow for
individual products, product development has changed. Changes in the market, shorter
product life cycles and customer demands for individual products have resulted in new
requirements for the development process (◉ Table 18.1).
Faster product development cycles, higher complexity due to more innovative products
and a high stress level in the development costs are derived from the situation. All this
shapes today’s product development environment.
If the requirements for a product are compared from the perspective of development
with the perspective of engineering and production, very different product requirements
must be implemented and considered (◉ Table 18.2). The topics should be seen as
complementary because there are no contradictions. There are many different requirements
that must be implemented. It is important to have transparency about all requirements.
In classical process thinking, a product develops from the customer’s sales requirement
through design to development and engineering and finally to production, which
manufactures the product. This linear chain means that the requirements of engineering
and development (cf. ◉ Table 18.2) are hardly considered in the early phase of design and
development. The iterative process makes changes almost impossible. The time and
capacity of the development are again occupied by the engineering, although no more
resources are available in the preliminary processes of the development. Development is
usually already working on a new project, the follow-on product.
In the development process, as few changes as possible should occur between the time
the product is finalized (design freeze) and the start of production (SOP). Nevertheless,
these changes occur regularly, sometimes even after the start of production. The changes
18.2 Lean Development 251
Table 18.2 Requirements for products from different stakeholders

Product requirements of the development Product requirements of engineering and production
• Product price • Investments
• Customer benefit, comfort • Space requirements, layout
• Design • Stable processes, quality
• Innovation • Low number of variants
• Safety • Standards for tools and machines
• Quality • Standards for load carriers and transport
• Customer satisfaction • Production time
• Lifetime • Number of parts
• Weight • Degree of automation and flexibility
• Energy efficient • Quality
• Documentation • Ergonomics and safety
should be reduced and be at a minimum level or at zero when the production start is reached
(cf. ◉ Fig. 18.1). In a large part of the projects, the development goals are not achieved in
the planned time.
Example
Womack and Jones (1994) state that in the 1990s Mercedes-Benz had to spend three
times the number of hours on a vehicle in the luxury segment as Toyota had to spend on
a comparable vehicle. The difference was due to the German cross-functional structures
and the lack of communication between the divisions. There were too many develop-
ment loops and no coordination with production engineering. ◄
18.2 Lean Development
Lean development uses lean methods in product development to organize it in the same
way as production according to the principles of flow, tact and pull. The goal is to reduce
the development time of a product and eliminate loops due to problems. Romberg (2010)
deals intensively with lean product development.
" Lean Development Approach to optimizing product development processes according

to lean principles. The development process is understood as a process chain and waste is
avoided.
The implementation between the engineering and development is comparable to the

situation of production with logistics. In production, problems arise when logistics does not
function as expected. In production engineering, problems arise that were not solved or
were solved too late in the development phase.
Change effort
Time
Fig. 18.1 Change effort in a development project (based on Romberg 2010, p. 107)
Lean development is understood as a cross-process approach that pursues collaboration

between all areas involved, from design to development and engineering to production. In
doing so, the work is parallelized, and an early cooperation is forced. Comparable to the
value stream, it is about the process flow and not about departments. Locher (2008)
provides an approach for a value stream for development processes.
As with the consideration of production rules in product design (cf. ▶ Chap. 17),
interdisciplinary cooperation is necessary during the development phase. The
manufacturing concept must be defined in parallel with development in order to be able
to react to the product design. Requirements for the product must be set and communicated.
This results in a DfX realization matrix (◉ Fig. 18.2) for the procedures between develop-
ment and engineering. If topics are difficult to implement and have low potential, they are
not pursued further and thus not implemented. The opposite pole consists of high potentials
that are easy to implement. These are certainly, once known, quickly implemented if not
already done. The focus of the matrix is on the other two fields: high potential and difficult
to implement and easy to implement with low potential. The latter should be communicated
to development and then implemented. High potential that is difficult to implement is
essentially about active communication between the areas and addressing the issue.
One function that is equipped with the corresponding expert knowledge in the sense of
clear responsibility is the so-called chief engineer (jap. shusa). He or she combines
entrepreneurial leadership and technical expertise and plays a decisive role and function
in the development process (cf. Sakai 2018). The chief engineer has at least 20 years of
development experience in various fields. As a lean engineer, he is responsible for an
extended range of tasks and negotiates resources and schedules with the managers
concerned. He is in direct contact with the designers and development engineers. Parallel
18.2 Lean Development 253
Potential in
engineering
High potential
Active communication Immediate implementation
Focus
Low potential
No implementation Realize
Focus Implementation
in
Difficult to implement Easy to implement development
Fig. 18.2 DfX realization matrix
to marketing, he carries out market analyses and is thus in direct contact with the customer.
At the same time, he is the link to production and sales.
The development team is staffed with employees who work as a stable team over the
longer term. A development engineer goes through several product cycles and thus builds
up his expert knowledge. The functional level managers have broad technical expertise and
act as coaches for the employees. In the development process, documentation is done via
best practices and design guidelines.
All roles, communications and methods focus on clear topics. After product develop-
ment, a concept for production must be available. The start-up of the product must be
accompanied and monitored. If necessary, support must be provided. The total costs, which
include the investments of the planning and the running costs of the production, must be
considered. Finally, production must be enabled, in terms of safety, quality, delivery and
costs, to manufacture the product smoothly from the start of production. Common goals are
to reduce product development time and costs. The result must be a quality product with
advantages over the competition.
18.3 Lean Methods in Product Development
To be able to carry out product development without waste, it is necessary to use various
methods. Some of these are lean methods that have been adapted to development. They can
be summarized under the term of a lean development method set. The following are various
methods, each with a brief explanation.
Transparency
The transparency of processes, statuses, decisions and key figures supports the work
processes in development, just as it does in production. Analogous to the indirect areas,
the main focus here is on the flow of information and exchange through communication.
The obeya (jap. for “big room” or “project room”, engl. war room) serves as a central
point for the visualization of key figures and project progress. At the same time, project
discussions on the components to be developed take place there. The elements of shop floor
management are also applied in this room (▶ Chap. 25). For example, change orders are
made transparent and the necessary capacities are planned and prioritized.
Understanding the entire process supports traceability and making the right decisions in
terms of development and the following process chain with engineering and production.
Through clear responsibilities and roles, contact persons are clearly defined, decisions are
made faster, and issues are escalated if necessary.
In complex development project structures, such as in automotive development, the
“design structure matrix” is part of the transparency. It shows links and relationships
between areas and components. Mutual influences become transparent and can be clarified.
Learning Organization
Development must act as a learning organization. The knowledge from the development of
predecessor products and the resulting experiences are valuable for subsequent products
and projects. They serve as a basis for the next level, analogous to a standard that is further
improved. This ensures that errors are not repeated.
The findings of the product projects are to be recorded in “experience books”. This
requires a high degree of discipline and time. The experience potential increases and
personalized knowledge is available to the company. A corresponding knowledge man-
agement is established.
Frontloading
“Frontloading” is intended to clarify critical issues at an early stage before they lead to
problems later. Often, products are only handed over to external areas or production
engineering in their finished state. It is then too late to resolve any difficulties that arise
and any necessary changes to the product. If clarifications with future suppliers and
production engineering take place before the prototype phase, e.g., on a virtual model,
issues can be discussed and clarified. One solution is to use a form of the jidoka principle
(▶ Sect. 9.2) for the development process. While still in the development process, a quality
18.3 Lean Methods in Product Development 255
alarm is triggered in the event of deviations. Changes can then be initiated in time. This
means that a finished product does not have to be “reworked” in development. If expensive
product tests have already been carried out (e.g., crash test), changes are associated with
high costs and a considerable loss of time. Frontloading is worthwhile, but it is a different
way of working for everyone involved (cf. ▶ Sect. 19.1).
Simultaneous Development
Clear project plans for product development enable parallel development of components
instead of a sequential approach through regular coordination. These are brought together
at clearly defined interfaces at fixed points in time. Parallelization requires approximately
the same development capacity, while at the same time shortening the development
lead time.
With set-based concurrent engineering, different versions and solutions of a product are
developed in parallel. Different ideas are pursued, and alternatives are developed. Various
alternatives and substitute solutions are available.
Standards
Standardized products can be developed more easily. The use of the same modules for
different product variants or types simplifies development and implementation in produc-
tion. Well thought-out module and platform strategies enable the use of units that have been
developed once (e.g., control units or chassis) for different customer-relevant variants. In
addition to the development effort, the use of identical parts also leads to potential savings
in purchasing, production and the after-sales area.
Standardized technology components can be taken from a technology supermarket. In
addition to the identical parts advantage, the technology is always up to date.
A standardized parts catalog for frequently used parts and small parts reduces the
number of variants and focuses on a common standard. The design and need for special
parts is largely eliminated.
Project Management
A development process includes optimal planning of processes and handover points. A
project management with appropriate checkpoints and quality gates is set up. Project plans
with release points, knowledge of the critical path and agreed coordination facilitate the
implementation of development projects and provide the necessary transparency about
progress. In the event of problems, timely support is provided with appropriate measures. It
requires a learning and transparent organization. As a result, quality gates are passed
through honestly and problem-solving processes are carried out in the event of deviations.
The Following Questions are to be Answered in the Topic Area of Product Develop-
ment Process
• Is there an exchange on problem solutions between production, engineering and devel-

opment areas?
• Is there a common process for product, production and process design?
• Are foreseeable product and process changes introduced early in the current series
instead of at the start of production of a new product or successor product?
• Are product developments controlled via key figures?
• Is there a clear and realistic project plan for product development? Is the critical path
known?
• Are quality gates only passed through when objectives are achieved? Are deviations
made transparent, discussed and supported by means of measures or are problem-
solving processes triggered?
• Does a project room (obeya) exist with key figure visualization for the discussion of
product statuses?
• Are regular communications between all areas, including production engineering, in
place?
18.5 Summary
Summary on the Topic of the Product Development Process

• The challenges for product development lie in faster product development cycles,
higher complexity due to more innovative products and a high degree of tension in
development costs.
• In classic process thinking, a product goes through development in sequence. The
process starts with the customer’s sales request for the design. This is followed by
development and production engineering. At the end is production, which
manufactures the product. Requirements of planning and production are thus hardly
taken into account in the early phase of design and development.
• As far as possible, no more changes should occur in the development process
between the time the product is finalized (design freeze) and the start of production.
• Lean development uses lean methods in product development. The goal is to reduce
the development time of a product and eliminate loops due to problems.
• In production planning, problems arise that were not solved properly or too late in the
development phase. The solution is a cross-process approach with all areas involved.
Work is parallelized and early collaboration is forced.
References 257
• Lean development uses a set of methods. Transparency focuses on the flow of

information and exchange through communication. Other methods are acting as a
learning organization and frontloading to clarify critical issues at an early stage.
Simultaneous development and standardization support the idea of simpler develop-
ment. Standardization supports product development by reusing units once devel-
oped for use in different variants. Structured project management enables optimal
planning of processes and handover points by means of quality gates. ◄
Questions
• How have development process requirements changed over the years from 1980 to
2017?
• How can the product requirements of development and those of engineering and
production be delimited?
• What is understood by a chief engineer and what are his tasks?
• How can the set of methods of lean development be described?
• What does the “design structure matrix” reveal?
References
Locher DA (2008) Value stream mapping for lean development: a how-to guide for streamlining time
to market. Productivity Press, New York
Romberg A (2010) Schnell entwickeln, schnell am Markt–Wettbewerbsvorteile durch Lean Devel-
opment. LOG_X, Stuttgart
Sakai T (2018) The secret behind the success of Toyota–how the original chief engineer system
works to generate most of the product value and profit. Toyo Keizai, Japan
Womack JP, Jones DT (1994) From lean production to the lean enterprise. Harvard Bus Rev 2:93–
103
Production Engineering
19
Design instead of re-design!

Wisdom in the lean environment
Overview
Production engineering achieves lean production by observing defined planning
principles. Taking waste avoidance into account in engineering results in optimized
production. The control lever is greater in the engineering phase than in a later
optimization during operation. In the context of implementation, simple methods,
such as cardboard engineering, provide support as a cost-effective and goal-oriented
engineering approach with a realistic result.
Knalsch GmbH: Lean Engineering at the Swabian Lunch

Karl-Norbert Alsch meets Susanne Moos, the “head of engineering” at Knalsch
GmbH, for lunch in the company canteen.
“I wanted to discuss your request for the new virtual planning software. I don’t
really want to invest any money in it,” Alsch says to Susanne Moos. “I think it’s time
to make the engineering ‘lean’ as well,” he teases, as they both stand in line at the
food counter.
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https://doi.org/10.1007/978-3-658-36087-0_19
260 19 Production Engineering
“What do you mean by that, Karl? A lean engineering process or a lean engineer-
ing result?”, Susanne counters briskly.
Alsch has arrived at the food counter. Still engrossed in conversation, he doesn’t
catch the cook’s question about his meal request, “Lentils with spaetzle and sausages
or would you rather have the Swabian Maultaschen, Dr. Alsch?”
Alsch returns to Susanne Moos at that moment, “I’ll very happily take both!”
“Really?”, Susanne Moos and the cook answer back at the same time and
everyone has to laugh.
After the Swabian lunch, Alsch gets to the point again, “Susanne, I think very
Swabian and believe that a lean process can bring a lean result. And I saw something
on a company tour that could help us. We need space and some cardboard boxes from
the shipping department.”
19.1 Lean Engineering
The improvement of the current production is a so-called “re-design” in the case of

optimizations. This is usually very costly since existing equipment and machines must
be changed by the improvement. Conversion expenses are the result. It is better not to plan
for the waste from the beginning. The ideal is to ensure a good design of production from
the beginning and, if necessary, to consider the flexibility for further improvements. In lean
planning, the lean principles of stabilization, flow, tact, pull and perfection are considered
in the planned target value stream (▶ Sect. 8.5).
" Lean Engineering Approach to lean production planning of production processes using
lean principles.
Lean engineering starts with the product to be produced. The product design determines
the possibilities of engineering and the form of the production. In order to identify
problems with the product at an early stage from an engineering perspective, it is necessary
to contact development in the concept phase. This usually does not take place, because
engineering is busy with current problems in the start-up and does not spend time to bring
about clarifications. In most cases, it is still unclear at this stage what responsibilities will
arise in the engineering department for the upcoming product. Thus, no one takes care of
the issue and free capacities are not available due to the start-up problem. The solution lies
in a low effort and early coordination of the problems as well as topics in an exchange with
the development department. This approach, which is perceived as additional effort, pays
off several times over in a much simpler start-up phase and with fewer problems (◉
Fig. 19.1).
19.2 Planning Principles 261
Planning effort
Without coordination
With coordination
Time
Product concept Engineering Procurement Start of production
Fig. 19.1 Engineering effort without and with coordination with development
Careful preparation of the production start-up is important. For this purpose, an inter-
disciplinary team must be deployed, and the current status must be visualized. Production
engineering coordinates with all areas involved, such as development, production, quality,
logistics, lean experts, factory planning, suppliers and other important partners. Through
regular communication and action tracking, any difficulties that arise can be solved quickly
and at an early stage with all those involved.
A prototype assists in the de-balancing process. The product disassembly (▶ Sect. 6.3)
mentioned in the line balancing process is one way of creating or verifying a line balancing
in the planning phase. By grouping the parts disassembled from the product, logistics
planning including shelf allocation with the load carriers can be created immediately.
19.2 Planning Principles
Engineering has a major influence on the optimal design of workplaces in production.

Several design principles must be considered. Rother and Harris (2001, p. 43 ff.) describe
many guidelines for a good assembly cell layout.
The following are some principles for the optimal design of a flexible manpower system
(▶ Sect. 12.3) for asselmby. The individual elements can be applied analogously to any
form of workstation. Yagyu (2007, p. 81 ff.) describes further explanations of the imple-
mentation sequence.
Workplace Design
Non-ergonomic postures and changing working heights must be avoided. This results in
planning with a constant and ergonomic working height for continuous and fluid working.
The horizontal material transport takes place fluently. All equipment and elements are
arranged in such a way that they can be operated optimally. The work steps are to be
planned in such a way that the employees can work with both hands at the same time.
Parts are to be provided as close as possible to the assembly station, i.e., in the
immediate vicinity of the employee. The correct positioning can be checked by workplace
simulations (cf. cardboard engineering, ▶ Sect. 19.3) and, if necessary, adjusted. The work
area in which everything should be arranged (best point area) is within a gripping radius of
about 80 cm. This allows quick removal and placement (pick and place) with little waste.
The material supply is to be designed in a pick-up-optimized way, which means that
the parts are always available at the same place, in the same positioning and orientation
(cf. ▶ Sect. 21.1). This can be done by providing the parts in magazines or as a line-up. As
far as possible, the material is supplied from the front towards the employee. This avoids
non-ergonomic turning movements or steps, which are a waste. The material supply is
separated from the assembly and delivers the parts from the outside into the line.
The same requirement applies to the arrangement of tools. These should not be in the
field of vision and are usually provided from above via spring balancers. In this way, they
are automatically returned to the top. Media can be supplied from above without interfer-
ence. Tools and machines should be designed without set-up times (or, if necessary, with
optimum set-up times). Tools can be stored and changed quickly using equipment based on
the paternoster principle.
Machine Design
To keep walking distances short, narrow and deep machines are to be used instead of wide
ones. The front sides are arranged in alignment (◉ Fig. 19.2). This significantly reduces the
space required and thus also the distances for each work cycle. This leads to a better ratio of
value-added working time compared to non-value-added walking time. Narrower machines
result in more design options when optimizations are made.
Machine 1
Machine 2
Machine 3
Machine 2
Machine 1 Machine 3
Fig. 19.2 Comparison of machine arrangement: long paths (left) and narrow, deep machines (right)
19.3 Cardboard Engineering 263
One-Piece Flow
The layout of a cell or line must always be planned in a flow. The layout results in shorter
lead times and transport routes. Stocks between the stations are eliminated. Flexibility
increases because employees are not tied to machines and the principle of a flexible
manpower system can be followed (▶ Sect. 12.3).
Instead of a self-sufficient, independent mode of production, workers in a flow layout
are not tied to one machine and can supply and operate multiple machines with parts in the
flow. A minimum standard stock in circulation exists between the processes.
Parts and safety light barriers must not be an obstacle on the route for the employee and
the product. Creative solutions must be sought, e.g., rotating the light barriers by 90 degrees
so that the light curtain works from above and below and does not get in the way of the
material flow.
Human and Machine

Instead of placing a human at each machine according to the traditional approach, one
employee should operate several machines. The employee does not wait for the machine,
but the machine waits for the human. The human is decoupled from the machine. The waste
is no longer in the human activity. Machine downtime is accepted unless it is a bottleneck
(▶ Sect. 6.1).
The separation of human and machine is planned with a standard work combination
sheet (▶ Sect. 12.3). In this way, the cycle times and the walking distances of the worker
are considered and can be coordinated.
A standard stock in circulation is scheduled between the stations and machines. This
simultaneously supports the standardized process flow. The sequence of operations is
rhythmic and smooth. It starts and ends at the same transfer point.
Material Provision
As mentioned in the workplace design, the material is to be provided optimally. The supply
and provisioning takes place from outside the work area so that there are no disruptions to
the work sequence in the station. The parts are brought into the process via chutes, rails,
roller conveyors or hoppers. Empty containers are transported outside to the logistics side.
Material is delivered at least once an hour.
The parts are provided by a logistics provider using the kanban principle. This supplies
the production cells from a supermarket. The stock at the process stations should be
sufficient for about 2 hours. The containers should be as small as possible.
19.3 Cardboard Engineering
A quick and inexpensive planning method is to try out and build a future production on a 1:
1 scale from cardboard boxes. The approach is called cardboard engineering and is more
realistic and cost-effective than computer simulation (cf. Gorecki and Pautsch 2013, p. 164
ff.).
" Cardboard Engineering Planning method for the model-like construction of a planning
stand in original scale from cardboard boxes and other aids. The construction is as accurate
as necessary. Other terms for cardboard engineering are “mock-up” or “cardboard
simulation”.
Through a realistic representation of the planned production from cardboard boxes,

work trials can be carried out in real size. Work processes, ergonomics, space consumption,
logistics, provision of media, machine and workplace design are examined. Findings and
possible problem solutions are taken into the planning. Dimensions can be determined and
fixed. Processes can be tested, and changes implemented in the planning. Alternatives can
also be presented.
In addition to many cardboard boxes, tools are necessary for the construction: Cutter
knife, hot glue gun, adhesive tapes, jigsaw, pencils and measuring tapes (◉ Fig. 19.3).
In the first step, the layout in paper form should be planned two-dimensionally in a
reduced scale. Then the layout is built up on a real scale. The workplaces are reproduced at
the appropriate working height with the necessary area and the work contents and tools.
The provision of materials with the number and type of load carriers is also represented.
Fig. 19.3 Tools and material for cardboard engineering

19.4 Factory Planning 265
Fig. 19.4 Example of an assembly cell (FMS) in the planning state
Scholz (2016, p. 36) shows the use of cardboard engineering for the planning of the central
reception desk in a hospital. Another result for an assembly process in the form of a U-cell
is shown in ◉ Fig. 19.4.
Work trials can be performed with real parts, prototype parts or cardboard models. The
focus is not only on production time and line balancing, but also on standard stock in
circulation, lead time and space. Productivity can be improved directly. By simulating
equipment, the necessary investment is checked and optimized.
Grasping movements can be represented with threads. Walking paths are drawn on the
floor. This is like visualizing dance steps on the floor. The sequences are balanced and
documented e.g., using a standard worksheet (▶ Sect. 10.3) or a standard work combina-
tion sheet (▶ Sect. 12.3).
19.4 Factory Planning
Not only processes, but also the layout of a factory must be optimally designed. As in
interlinked processes, the flow and layout must be optimally aligned at the level of an
overall factory. Proper factory planning plans the buildings according to the process flow
and not vice versa. A process flow in the form of a “T” with the docking of a supplier
opposite resulted together in the layout of the factory of Smart in Hambach, France, in the
form of a plus.
The most common mistake is to reverse this rule, i.e., to build the hall first and then to
try to map the process within the hall. Although square halls are cheaper to build, the lack
of process orientation creates waste that is difficult to eliminate afterwards. A small press
shop in which the equipment is positioned against a wall does not allow the tools to be
exchanged over both sides of the plant by pulling them out from one side and pushing them
in from the other side at the same time. They have to be exchanged at great expense via
one side.
The flexibility in the expansion of the areas, which can still grow subsequently, arises
from measures such as the possibility of shortening or expanding lines. This was
implemented at Volkswagen in Bratislava. These possibilities are also planned for the
flexible BMW factory in Leipzig.
Factories are aligned with the directional flow of material. The parts flow towards a main
line, as in a fishbone (▶ Sect. 7.4), and are then assembled. Schonberger (1982, p. 103 ff.)
describes the configurations of factories.
The topics and ideas listed are based on a “green field” planning. As soon as an existing
factory exists as a “brown field”, restrictions and compromises arise. But these always
exist. Even in a green field development, there are constraints. These can be marshy ground
at sea level (Thailand), terrain that is not leveled (Brazil), or finding ancient burial grounds
(Hungary). When it comes to factory design, nothing is impossible. The first constraint is
usually the site layout. For this, equally simple planning methods are suitable, where the
factory units are planned to scale on paper in the equally scaled plot and moved.
The Following Questions are to be Answered in the Topic Area of Production

Engineering
• Is the creation of variants on the product carried out as late as possible?

• Is the planning process made as simple as possible?
• Are simulations performed using simple, low-cost means, such as cardboard
engineering?
• Are cardboard engineering setups only designed as accurately as necessary?
• Are important details such as switches or buttons designed true to the original in the
cardboard engineering?
• Does a target value stream based on lean criteria exist for planning?
• Is complexity in processes reduced as much as possible?
• Is production engineering already involved in the concept phase of a product develop-
ment and does it bring in the necessary requirements?
• Are the cost drivers and expenses in later production known for product variants?
• Are modular elements (processes, products, etc.) reused (re-use)?
• Are complex elements designed as modules?
• Are there as many solutions as necessary and as few as possible for complex problems?
References 267
19.6 Summary
Summary on the Topic of Production Engineering

• Lean engineering is the approach to production process planning using lean
principles.
• The improvement of production during operation is called re-design. This is usually
costly in terms of implementation. The ideal is to avoid waste from the beginning and
to ensure a good design of the production.
• The solution of a lean engineering lies in an early coordination of the problems and
topics in an exchange with the product development.
• Engineering has a great influence on the optimal design of workplaces in production.
• Several design principles must be observed. Workplaces must be designed in such a
way that non-ergonomic postures and changing working heights are avoided. The
machine layout must be arranged in such a way that walking distances are kept short.
This is possible by using narrow machines. The layout of a cell must be planned in a
flow. Multiple machine operation is recommended. Material is supplied to the line
from outside in.
• Not only processes, but also the layout of an entire factory must be optimally
designed. This means that buildings are planned according to the process flow and
factories are aligned with the directed material flow. ◄
Questions
• Why is good preparation of the production process important and how is this
ensured?
• What specifications must be considered when designing a workplace?
• What is meant by the term “cardboard engineering”?
• Why is this method used or what are the advantages of cardboard engineering
compared to digital planning?
• What is the focus of cardboard engineering?
• What is the most common mistake made in factory design?
References
Gorecki P, Pautsch P (2013) Praxisbuch Lean Management–Der Weg zur operativen Excellence.
Hanser, Munich
Rother M, Harris R (2001) Creating continuous flow–an action guide for managers, engineers and
Scholz A (2016) Die Lean-Methode im Krankenhaus–Die eigenen Reserven erkennen und heben,
2nd edn. Springer Gabler, Wiesbaden
Schonberger RJ (1982) Japanese manufacturing techniques: nine hidden lessons in simplicity. Free
Press, New York
Yagyu S (2007) Das synchrone Managementsystem–Wegweiser zur Neugestaltung der Produktion
auf Grundlage des synchronen Produktionssystems. mi, Landsberg
Low-Cost Automation
20
Perfection comes not when you can add nothing more, but when
you can take nothing more away.
Antoine de Saint-Exupéry
Overview
The Japanese word karakuri stands for simple automation. Instead of complex
systems, simple mechanizations are used to design process flows. Low-cost intelli-
gent automation is the use of the karakuri method to implement intelligent solutions
with simple means. By reducing complexity, the availability of processes increases.
Repair and further development in the sense of optimization are possible by the
company itself.
Knalsch GmbH: Expensive Robot

Susanne Moos, the head of engineering, and Kai Lupfer, the head of production, are
in agreement at the planning meeting. That doesn’t always happen.
“When we have more variance and go digital, we need an industrial robot between
the production line and the assembly cell of the new Knalschi 200,” says Lupfer. And
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https://doi.org/10.1007/978-3-658-36087-0_20
270 20 Low-Cost Automation
Moos adds, “It can do the sorting and transport of the parts. Plus, it doesn’t get sick,
and maintenance is handled by the manufacturer. Zero waste, that’s perfect”.
Claudia Beck, who is currently recording the current meeting on her laptop, raises
her eyebrows and looks at her boss, Dr. Alsch. He promptly responds, “I suppose you
think just because the human is no longer doing the wasting, but the robot is, we’ve
accomplished something? I see a waste, and it’s a waste of money.”
“But the robot manufacturer has made us a very good offer. We have to decide,
otherwise it will expire,” says the head of administration, Christina Maier.
“We’re doing it differently this time,” says Alsch and continues, “I’d like you to
take a look at how other companies are doing it without such a robot. I want to have a
solution that would cost a maximum of 25% of buying this robot, can do the same
thing, and is not as complex as a robot. But I don’t want a human to do it either.”
“Sure,” says controller Karsten Horch. “After all, it would be even more
expensive.”
“Exactly!” says Alsch. With the words “One week, then I’d like to see the
solution,” he ends the meeting and leaves the meeting room, where Susanne Moos
and Kai Lupfer are left baffled.
Claudia Beck grins. She closes the laptop and follows her boss out of the room. As
she passes Moos and Lupfer, she says, “If I were you, I would check out Japanese
companies.”
20.1 Karakuri
The low-cost automation approach has its origins in Japanese karakuri dolls from the
eighteenth century. The idea is to create simple automation solutions using basic mechani-
cal principles.
" Karakuri Japanese term for low-cost automation (LCA) or “mechanization with wis-
dom”. The term itself means “mechanism”, “trick” or “deception” (Wißnet 2007, p. 19).
The Japanese way of “tinkering” has its traditional origin in the self-moving mechanical
dolls (jap. ningyo), which imitate human-like movements. Karakuri solutions are inexpen-
sive and homemade. They have a sophisticated movement mechanism.
Karakuri describes simple drive types and their use. It is part of the basic principles of
low-cost intelligent automation (LCIA, ▶ Sect. 20.2). Karakuri mainly uses existing
energy or force and converts it into motion in a simple way. The combination of energies
and forces, as well as transfer and translation, results in a wide range of solutions.
20.1 Karakuri 271
The following physical forces are examples that karakuri utilizes:
• Gravity
• Magnetism
• Spring force
• Pneumatics
• Existing movements
• Vacuum
In addition, there are levers, gear ratios, shafts, joints, gears and combinations of these
forces. A wealth of ideas opens a wide range of possibilities for solving process operations.
Example
Magnetism helps to separate screws. Small magnets on flexible wires are dipped into the
small charge carriers with screws in an assembly every cycle. After lifting again, the
correct number of screws can be picked off as they pass the magnets. This solution is
also used on carriages in vehicle assembly (◉ Fig. 20.1).
Other examples of how magnetism can be used are magnets on tools, cordless
screwdrivers, bracelets or gloves. Magnetic parts are attached here, such as screws. This
leaves both hands free for attaching a screw and using the tool. Magnets also help when
docking to the conveyor system. A trolley is thus pulled along at workpiece height and can
be uncoupled after completion of the activities and taken to the next workpiece. This also
makes use of existing movements, in this case those of the conveyor belt. The separation
of screws and similar small parts takes place via a magnet behind a rotating disc with
drivers. The screws are conveyed, counted by sensors and made available for removal. ◄
Gravity allows individual parts to slide from one process to another without the need for
electrical conveyor technology. Even manual sorting devices can be integrated into the
path. Sophisticated solutions sort out the defective parts by tactile recognition of features
(cf. poka yoke, ▶ Sect. 9.3).
Example
The combination of gravitation with rotation allows small bars up to metal pins to be
separated and provided. A perforation on a rotating roller always takes exactly one
component with it when it is turned out and releases it separately on the other side of the
roller. ◄
Before new actuators are used, it is always necessary to check which existing
movements already exist and can be used. In addition to using the movement of a conveyor
belt to attach or push along materials, machine vibrations together with gravity are also a
possibility for conveying parts on slides.
The Japanese “deer scare” (shishi odoshi) works with waterpower and gravity. The main
component is a bamboo tube mounted around a rotating axis. The tube slowly fills with
water and falls over as soon as it is full, and the center of gravity is above the axis of
Fig. 20.1 Magnets separate screws from load carriers by dipping into them (model)
rotation. The water empties and the tube swings back into the starting position for refilling.
As it does so, the pipe rattles back to the stop and makes a clacking sound. The pipe acts
like a cyclically triggered lever.
For karakuri, the function of the deer scare with the cyclic accumulation of a defined
amount of material or parts is interesting. This function can be used in production for parts
separation or counting.
Example
A vacuum is useful for separating stacks of paper or plastic bags by suction. ◄
For the translation of movements and the transfer into different kinds of movements, the
methods of technical mechanics are suitable. In it, different possibilities are shown. Thus, a
matrix can be created which can convert each of the following types of movement into a
different one. Possible kinds of movements and their combinations are: Rotating, linear,
pendulum and oscillating movements. These are the basis for the use of motion types for a
wide range of applications.
Karakuri is another element of the Nissan Lean System under the name “Nissan
Production Way” (NPW). Nissan calls its lean approach and philosophy “douki seisan”.
20.2 Low-Cost Intelligent Automation 273
20.2 Low-Cost Intelligent Automation
Low-cost intelligent automation reduces plant costs and simplifies processes with less
effort and waste. Intelligent, sophisticated solutions are used (see Takeda 2006). Lean
companies pride themselves on their own intelligent solutions. Other companies self-
confidently present the high-tech and most modern equipment, which is associated with
high costs in acquisition and operation.
" Low-Cost Intelligent Automation (LCIA) An intelligent automation with low costs. The
basis for LCIA is karakuri. The motto is: Use creativity instead of money. LCIA solutions
cannot be bought. They are developed in-house, self-built and individually.
The target of low-cost intelligent automation is to reduce investment. At the same time,
waste in the process is reduced and productivity is increased. The motto is “keep it simple.”
While manual processes sometimes still contain hidden waste, low-cost intelligent auto-
mation takes over process flows without major human involvement.
The more complex machines become, the more expensive they are not only to purchase
but also to operate. In addition to the obvious costs for energy, materials and maintenance,
there are hidden cost drivers that are not immediately apparent, such as susceptibility to
faults and maintenance costs. The higher the degree of automation, the more complex and
expensive the overall system becomes (◉ Fig. 20.2).
Low-cost intelligent automation is associated with significantly lower investment costs
than the purchase of machines with the same functions. In the case of forms of automation
that require a high level of investment, savings of 80 to 90% can be achieved on the
investment. This is because the investment costs of LCIA solutions designed and built in
companies are only ten to 20% of those of similarly efficient automation systems
(Dickmann 2015, p. 47).
The ability to develop and implement LCIA solutions themselves is a serious competi-
tive advantage for manufacturing companies. The developed technology belongs to the
core competencies and key know-how of a company. Machines available on the market can
also be acquired from the competitors, but the developed special know-how and experience
cannot. Thus, LCIA contributes to securing competitiveness with the pursuit of originality
and creativity.
A cost-effective in-house production of solutions should be at a payback period of
1 year. The approach allows the realization of normally not profitable implementations,
such as for small series.
If the need for a high-tech machine or system is unavoidable, the reason for this must be
investigated and clarified and the product design reviewed (cf. ▶ Sect. 17.2).
Cost
Hidden High Costs for

waste complexity highly automated
solutions (high cost)
Costs for
low cost intelligent
automation (LCIA)
Personnel costs
Degree of automation
Manual Partially automated Fully automated
Fig. 20.2 Schematic representation of the capital expenditure with and without the use of low-cost
intelligent automation
20.3 Implementation
Intelligent low-cost automation solutions for logistics, manufacturing processes and assem-
bly cannot be bought. They can only be produced in-house. The installation of a kaizen
workshop (▶ Sect. 29.3) with facilities, materials and internal specialists is a good idea.
The realization of LCIA solutions follows several basic principles in planning and
implementation:
• At the beginning there is a collection of ideas and the involvement of the employees.
• Before automation, waste must be eliminated.
• The implementation must be fit for the purpose and quickly realisable.
• Health and safety requirements must be complied with, and ergonomics must be taken
into account.
• Quality criteria and error prevention must be considered. Poka yoke and jidoka form the
basis for a process-safe setup.
• Use of simple, inexpensive and commercially available materials and the reuse of
existing materials.
• The implementation takes place with simple types of actuators according to the karakuri
principle and simple technology.
• The basic ideas of fast set-up are incorporated into retooling, maintenance and repair.
• No tools should be necessary for maintenance and servicing.
• The solution must be flexible so that it can be easily modified, adapted, further improved
and converted.
The implementation of an idea should be simple and fast. It is advisable to start with a
prototype and then carry out working trials. For use in Europe, the machinery directive and
the certification of corresponding facilities as well as the performance of the risk analysis
must be observed. This can be done very expensively by an external auditor or more cost
effectively by acquiring the knowledge within the company. If the company brings
products to market, the expertise for certification is usually already in-house and analyses
can be carried out analogously on the LCIA solutions developed in-house.
The use of LCIA equipment generates experience and a special knowledge for the
company. This enables the unique production of machining, assembly and logistics
devices. The fixtures are adapted according to the special requirements of the products
(according to Dickmann 2015, p. 50).
Example
Automated Guided Vehicles (AGV) are a common example of low-cost intelligent
automation. These are driverless transport systems that transport materials in routes
from supermarkets to points of consumption. They often work with simple methods,
such as following a colored line or a magnetic strip.
Creative employees have stretched a mop in front of the vehicle so that possible
disturbances caused by dirt or possible objects on the way are removed. Automatic
coupling and uncoupling of trailers or the exchange of load carriers on racks in passing
without having to stop are also well thought out. The low-cost vehicle usually travels in
a circuit.
In an implementation, Liker and Trachilis (2016, p. 215) cite the cost between an
acquisition and a DIY with programming. While the purchase cost 25,000 US$ per
vehicle, the costs for the self-build were only 4000 US$. ◄
The Following Questions are to Be Answered in the Subject Area of Low-Cost

Automation
• Is a workshop available for the construction of LCIA solutions?

• Are employees assigned to build and maintain facility in terms of low-cost intelligent
automation?
• Are processes checked for low-cost solutions before purchasing machinery and
equipment?
• Is the product design checked for good manufacturability before complex machines are
purchased?
• Is waste eliminated before automation?
• Are driverless transport vehicles designed and manufactured in-house?
• Is the competence for carrying out hazard analyses available in the company?
• Is the product design checked for good manufacturability before complex machines are
purchased?
20.5 Summary
Summary on the Subject of Low-Cost Automation

• “Keep it simple!”
• Low-cost automation (karakuri) pursues the idea of creating simple automation
solutions with the aid of basic mechanical principles.
• Karakuri especially uses already existing energy or forces and transforms them into
movements in a simple way.
• Physical forces that karakuri harnesses are gravity, magnetism, spring force,
pneumatics, vacuum and existing movements. Levers, ratios and combinations of
these forces are used.
• Low-cost intelligent automation (LCIA) reduces plant costs and simplifies processes
with less effort and waste.
• LCIA solutions for logistics, manufacturing processes and assembly cannot be
bought. They have to be produced within the company. Self-developed technologies
belong to the core competencies and key know-how of a company. Competitors can
acquire machines available on the market, but not the specialist knowledge and
experience that have been built up. Lean companies are proud of their self-developed
intelligent solutions.
• Well-known examples are driverless transport vehicles (AGV) and driverless trans-
port systems. In this example, the in-house construction is lower by a factor of six
compared to an external acquisition. ◄
Questions
• What are examples of the application of physical forces that karakuri uses?
• Which types of motion from technical mechanics are to be taken into account when
translating movements?
• What are the advantages of a low-cost intelligent automation solution compared to a
modern system?
References 277
• After what time should the investment in cost-effective in-house production pay for
itself?
• What are the basic principles for planning and implementing LCIA solutions?
References
Dickmann P (ed) (2015) Schlanker Materialfluss mit lean production, Kanban und Innovationen, 3rd
edn. Springer Vieweg, Berlin
Liker JK, Trachilis G (2016) Lean Leader auf allen Management-Ebenen entwickeln–Ein praktischer
Leitfaden, 1st edn. Lean Leadership Institute, Winnipeg
Takeda H (2006) LCIA–Low Cost Intelligent Automation: Produktivitätsvorteile durch
Einfachautomatisierung, 2nd mi, Landsberg
Wißnet A (2007) Roboter in Japan–Ursachen und Hintergründe eines Phänomens. Iudicium, Munich
Supply Chain
21
Always enough without having anything left over.

Based on Dick Hunter
Overview
Lean has a direct impact on logistics and the supply chain. Waste is successively
“pushed” outwards from the place of value creation. In this way, they are ultimately
eliminated. Logistics needs smart solutions to provide production with the ideal
material and at the same time to operate as few storage levels as possible between
suppliers and production.
Knalsch GmbH: Assembly and Logistics: Separate or Joint?

Claus Maas shows up with Kai Lupfer in the manager’s office without knocking on
the door.
Maas is angry, “How is logistics supposed to improve when Lupfer optimizes
more and more activities and shifts them to logistics? Instead of getting better,
logistics is getting worse and worse, and is thus gets all the waste. I thought that
we in logistics would also get better if production took over logistics scopes, but they
refer to reducing waste.”
(continued)

https://doi.org/10.1007/978-3-658-36087-0_21
280 21 Supply Chain
Alsch conciliates, “The problem must be solvable, we’re not the only ones with
this interface.”
21.1 Line Back
Optimization begins at the point of value creation. Material must be prepared and made
available in such a way that everything can be picked up optimally and without waste
during production and, above all, assembly. Then the point of materialsupply is optimized.
Waste is shifted from the place of value creation to the outside in the direction of the supply
source.
" Line Back Describes the principle for optimizing the supply chain, starting at the point
of value creation, i.e., production, to the supplier on the outside (◉ Fig. 21.1). This hollistic
approach solves the optimization problem between assembly and logistics. Waste is shifted
from production via logistics to the outside and eliminated.
To provide materials ideally, four areas are to be defined: Carrier, placement, supply,
request.
Clarifying the carrier involves determining the load carrier itself and whether it is
needed. Once a load carrier is needed, the ideal one must be determined. The size of a
load carrier depends on the ideal range, the size of the parts and the total weight of the
container, which must not be too heavy for ergonomic reasons. Common values here are
between ten and fifteen kilograms. If the container is too heavy, the filling level is not
optimal. If necessary, a smaller container is suitable in this case. If possible, a small load
carrier) is always preferable to a large load carrier. Small load carriers are easier to handle
and are delivered in short cycles via a route. If the parts have a large volume, there is
usually no alternative to a large load carrier). In special cases, special load carriers must be
constructed so that parts can be transported easily and without damage. Special load
carriers) are very expensive because they do not correspond to a standard. For this reason,
attention must be paid to a suitable and logistically appropriate product shape as early as the
product development phase (▶ Sect. 17.3).
The placement clarifies the positioning type at the consuming location. The exact area
for placment as well as the orientation and sequence of the load carriers or parts are defined
in such a way that production can work without wastage. This also includes the racks and
their placement. Flow racks with slightly inclined levels from the logistics side to the
assembly side, where the pick-up for assembly takes place, are ideal. Empty containers are
returned to the logistics side on the upper shelf level. As empty carrieres are lighter, lifting
the load carrier upwards is easier than loading the upper shelf level by logistics (◉
Fig. 21.2). Fast moving parts are located in the middle of the rack at the best point to be
picked up, where the worker can comfortably reach without stretching or bending.
21.2 Grip-Optimized Material Placement 281
Supplier
External logistics
Factory site logistics
Supermarket
Line supply
Supply
Assembly
Fig. 21.1 Line back principle
Logistics Shelf Assembly
Return empties
Delivery row 1
Delivery Pick up
Delivery row 2
Delivery row 3
Fig. 21.2 Shelf with different levels
The supply defines the type of supply. This can be done manually, with vehicles or
automatically. Supply with vehicles usually involves the use of forklifts and tugger route
trains. The procedure for delivery is defined.
The request notification clarifies how the demand for parts is communicated to logistics.
Possibilities are the notification via a defined consumption, via electronic signaling or via a
pull principle using kanban or boxes.
21.2 Grip-Optimized Material Placement
In an assembly, every gripping movement is optimized. The material is provided at the best
point within the optimum gripping space of the worker, at a maximum distance of 80 cm.
The “best point” designates the ideal place of supply for the assembly by the logistics.
282 21 Supply Chain
" Logistics The control of material and information flows between a receiving point and a
delivery point. Logistics includes the activities of information processing, transportation,
storage, material handling, packaging and security.
An ideal material supply always takes place at the same point without the need for a
time-consuming exchange of load carriers. The inventory at a production process should
not exceed two hours. The two-container principle means that there are always two
containers at each placement point to switch to the second container when the first is
empty. Within one hour, the empty container is exchanged for a full one.
It is possible to deliver a combination of several different parts that are assigned to a final
product. This option is called a “set” for small parts and a “shopping cart” for larger parts.
Set and shopping cart are suitable for high part variance and provide parts specifically for
an end product. In automotive engineering, the shopping carts are filled up in a supermar-
ket, brought to the assembly location with an automated guided vehicle (AGV) and made
available there at the optimum pick-up point (best point).
Example
The difference between a simple mass-produced product and a multi-variant customised
product, as well as the logistical solutions, can be seen at the Volkswagen plant in
Bratislava.
The smallest car “VW up! (VW120 series) is post-produced in a few variants after it
has been sold off. The vehicle is ordered, and the production line is supplied according
to consumption in the pull principle. The line supply is carried out by an external
logistics service provider next to the production line from a supermarket.
In the neighboring area, the variant-rich SUV “VW Touareg” is assembled. Due to a
high combination possibility of the possible equipment options, the customers order
individually, and the orders are scheduled in a production sequence. The parts for the
interior installation are pre-commissioned as a shopping cart from a supermarket,
transported to the assembly line by an AGV and provided parallel to the vehicle. The
shopping cart staging trolleys are positioned with the parts between the vehicles. This
saves wasteful walking distances during assembly operations. Instead of many load
carriers, there is a small number of load carriers with standard parts in the staging zone
next to the production line. ◄
21.3 Delivery
Many procedures and methods exist for picking and delivering parts. Those that are
structured in the sense of lean thinking are united by the goal of short-cycle supply in
small quantities and via as few warehouses and handling points as possible. This makes
logistics waste-free and keeps the goods flowing.
21.3 Delivery 283
If the exchange of load carriers is assumed by replacing empty containers with full ones,
there are various possibilities for delivery. In lean logistics, the vision of the “forklift-free
factory” applies. After unloading transport carriers, such as trucks or trains, the goods are to
be delivered to production from the goods receiving area without forklifts. Sometimes this
fails because the parts are too heavy, or the load carriers are too large. Large load carriers
should be able to roll independently and thus be transported with a tugger route train. Small
load carriers are transported on a tugger carriage. A different approach applies to forklift
trucks, which is fraught with waste. There is a greater risk of accidents. Forklifts repeatedly
obstruct routes by manoeuvring and oncoming traffic. If others have to wait, waste occurs.
Potential waste is hidden in the process. This concerns forklift trucks in particular. In the
following, a material delivery via three routes is compared with one via two routes. Three
routes result when empty load carriers are driven from production to the supermarket (first
route), exchanged there and the full load carrier is brought back to the place of the empty
load carrier (second route). This is followed by searching for and driving to the next empty
load carrier location (third route). The last route involves a search and driving without a
load carrier, neither full nor empty. This is a waste. It makes more sense to use two routes:
pick up full containers from the supermarket and swap them with the empty container in
production (first route) and return the empty load carrier to the supermarket (second route).
After that, the process of moving the next provided container starts all over again. The
complexity lies only in the exchange of the full load container with the empty one, which
may require manoeuvring. This is not in any relation to the time spent for a third route, as in
the previous example.
The procedure also works for tugger route trains with several load carriers in that the
empties are always replaced by full loads. The technical term for this is “milk run” (Gorecki
and Pautsch 2013, p. 236 ff.). The principle has been adopted from the English milkman,
who replaces the empty milk bottles at the front doors with full ones every day. He does this
in one tour. He starts with a cart full of full milk bottles and ends with a cart full of empty
milk bottles. The tour corresponds to his route along the customer houses. This is a
distribution transport. The same is possible as a collection transport where an empty tanker
truck goes to the farmers and collects their milk. Arrived at the milk factory the tanker truck
is full of milk. The transport carrier is always highly utilized, and the transport costs
are low.
The milk run works in a factory as a tugger route train and also outside a factory in the
supply chain. Here, parts are collected from different suppliers and brought to a production
factory or warehouse. A multi-stage route is possible, where, for example, empties from
different supermarkets are collected at a factory.
If tugger route trains are compared with forklift trucks, this can be done using the
analogy “taxi and bus” (◉ Table 21.1).
In addition to small load carriers, tugger route trains can also transport rollable large
load carriers. A mixed route with wagons for small load carriers and attached large load
carriers is possible up to a specified, permissible and controllable train length. Where
284 21 Supply Chain
Table 21.1 Comparison between forklift truck and tugger route train
Forklift (Taxi) Tugger route train (bus)
• Fixed quantities • Variable quantities
• Variable dates • Tacted fixed dates
• On demand • According to timetable
• Not standardized • Standardized with time and stop
• Empty runs unavoidable • Consistent workload
• Increase in capacity utilization leads to • Optimization of routes and capacity utilization does
customer dissatisfaction not lead to customer dissatisfaction
• Disabilities • Clear traffic direction, no obstructions
• Risk of accident • Higher security
• Cost per trip • Cost allocation of the route to several load carriers
forklifts are unavoidable, the formation of a forklift pool with a demand-triggered call-
system is a solution for avoiding waste.
The supermarkets, from which the tugger route trains serve themselves, are organized
mirror-inverted to the line with regard to the provision of materials. When they arrive at the
supermarket, the collected empty load carriers are unloaded first. Then the materials that
are to be unloaded last later during delivery are placed on the trolley first. This means that
the materials are in the correct order when they are delivered. There is no need to search or
sort and there are no obstructions due to material that is needed at a later time.
Another delivery variant is the “top-up”. With manageable variance of medium to large
parts, the variants are stored directly at the consumption process. There, the sequence is
created according to the existing product orders. To replenish used parts, a regularly
delivering tugger route train drives to the parts to be replenished in large load carriers
and replenishes used parts at the point of consumption. Only the consumption is
replenished. Once the parts to be supplied have been replenished, unnecessary quantities
are taken back to the supermarket in the containers on the tugger route train and temporarily
stored there again.
Example
Parcel delivery services in the USA have successfully implemented the principle of only
turning right with the delivery truck at intersections. The navigation system plans the
route in such a way that turning left is avoided as far as possible. This saves the time
spent waiting to turn, which is inevitable for left turners. The principle saves fuel, energy
and reduces the risk of accidents. ◄
This example should be considered when planning routes through production. One-way
streets can be set up accordingly and traffic at turns or intersections can be better planned.
This leads to faster and safer delivery. Mutual obstructions and waste are avoided.
21.4 Minomi 285
21.4 Minomi
The most interesting type of delivery and placement from a lean perspective avoids load
carriers and packaging. The Japanese name is “Minomi” and means “part without packag-
ing”, i.e., “containerless” (Convis 2006; Liker and Meier 2006, p. 320 f.; Liker and
Trachilis 2016, p. 209).
" Minomi Japanese word for “contents only”. Stands for “part without packaging” as a
delivery principle which uses gravity (cf. karakuri, ▶ Sect. 20.1). The parts slide from one
storage level to the next via an inclined plane. This is done on rollers, using suspensions or
rails (◉ Fig. 21.3).
Whether sequenced or sorted, whether small or large parts, minomi can be used in many
ways. The sensible use always requires an examination and is usually based on the
presence of a space problem or a problem due to non-continuous delivery options, which
creates a bottleneck in the supply and results in missing parts. With increasing variance,
large parts and little staging space at the point of assembly in production, minomi is
worthwhile with sequenced staging. Load carriers can also be transported very easily in
this form, although the principle does not normally provide for containers.
Fig. 21.3 Example minomi car with piping (Toyota supplier)

286 21 Supply Chain
Goods receipt Minomi trolley Assembly

Return
Return 99 9 9
999 9
99 9 9 99 9 9 9
Feed 9 9 9
Feed
Shelf Shelf
(stocking) (supply)
Fig. 21.4 Minomi system
Parts are picked and placed on a shelf. A tugger route trolley docks with the rack, returns
any empty hooks or attachments for the parts, and slides new parts onto the trolley in the
appropriate quantity and sequence. The cart transports the parts to the point of use. There,
the cart again docks with an on-site shelf. Again, the parts exchange takes place. At the
point of consumption, the material is made available for a perfect pick-up (◉ Fig. 21.4). An
exchange of the load carriers is not necessary. The demand notification takes place via the
consumption in the one-piece flow.
Minomi systems are solutions based on the LCIA approach and are individually
developed and manufactured in-house (▶ Sect. 20.2). The throughput principle requires
an exact approach to the transfer stations and a precise positioning of the minomi trolley in
relation to the racks. Docking to racks and positioning can be done by an entry rail on the
rack or by a drive-in rail on the floor for the centre wheel of the tugger. The stopping point
is precisely defined by rails and troughs. Loading and unloading can be triggered remotely
so that the tugger driver does not have to dismount. With a defined circuit, the use of a
automated guided vehicle (AGV) would be another solution for transport. If a tugger route
train cannot directly approach and dock with the rack, the rack is alternatively pulled to the
tugger route train on rollers and docked as an intermediate solution.
In ◉ Fig. 21.5, the difference between placement in load carriers and the minomi
principle is compared. In this case study, three variants are provided. Classically, the
variants are provided in load carriers in the two-container principle by a forklift truck
(left figure). The routes of the plant lead across the width of the load carriers with the three
variants. The two-bin principle also requires a load carrier exchange by the worker when
one of the bins is empty. In addition, the forklift has to be maneuvered to replace the empty
load carrier with a full one during supply logistics. The variant based on the minomi
principle requires sequencing of the material at the supermarket or at the supplier (right
figure). The material can then be transferred directly to the Minomi shelf by gravity via a
tugger route train. There is no need to exchange load carriers or to carry empty load
21.4 Minomi 287
Supply by carriers Supply by minomi principle

Three variants, two-container principle Sequenced variants, minomi shelf
Walkways Walkway
Exchange
1 2 3
Minomi Free area
1 2 3 shelf
Logistics supply by forklift truck Logistics supply with tugger route train
shunting during exchange docking and parts transfer
Fig. 21.5 Placement of material (three variants) in comparison: Six load carriers vs. minomi
principle
Table 21.2 Advantages of a minomi system for assembly and logistics

Advantages for the assembly Advantages for logistics
• Optimized material tapping always at the same • Need-based inventory reduced to the
point (best point) necessary minimum
• Space reduction in production • Continuous consumption and retrieval
• No container exchange necessary • Material supply by tugger route train
• Reduced risk of confusion of parts • Can be integrated into existing routes
• Higher proportion of value added • Several variants possible
• Reduction of walking distances • Fast and ergonomic delivery
• Increasing load factor per route with better
arrangement of parts
• Ensuring compliance with first-in-first-out
carriers. Likewise, the exchange of containers by the worker is no longer necessary. The
material is picked up in an optimized manner (best point) with short walking distances. The
system requires less space in production.
Overall, the introduction of minomi brings many advantages for the assembly and
logistics processes involved (◉ Table 21.2).
One disadvantage of minomi is the larger space required for the parts to be transported.
The packing density during transport is usually not always optimally utilized. This is offset
by the advantages in handling in the supply chain. Due to the predominant advantages, the
overall process is economical.
288 21 Supply Chain
Liker and Trachilis (2016, p. 209 ff.) describe examples and an introduction and
implementation of a minomi system. Above all, forklifts could be saved after the minomi
solutions were implemented by automated guided vehicles (AGV).
21.5 Order Picking
In order for the material to be optimally ready for tapping, it must be prepared and picked
accordingly.
" Order Picking The repacking, assembling, loading and separating of goods. The
sequencing of different parts is also part of order picking. The aim is the order-related
assembly of several parts for the further production processes.
Placement forms can be single-variety or in a sequence. In a sequence, the parts are to be

sorted according to the order sequence and placed in the correct order.
" Sequencing Parts are sorted and put in order. After that they are passed on.
In the ideal case, the parts are delivered by the suppliers as they are needed at the point
of consumption. Delivery and staging take place in small quantities without load carriers or
in suitable load carriers and, in the case of high product variance, in a corresponding
sequence. Sequencing makes sense when products have a high variance and there is little
space available at the point of consumption for storing variants. Suppliers should be able to
produce and deliver their products in sequence at customer intervals.
Picking is done at the supplier’s facility and waste is not present in the assembly or
supply chain. Qualified suppliers produce the parts in sequence or separate them when they
are taken out of their production. It therefore makes no sense to store and transport them in
a bulk carrier in order to separate them again in the supermarket or during assembly.
Optimizations may require intermediate steps such as unpacking, sorting, repacking,
labeling and picking between the supplier and the point of consumption. This should be
further optimized and ultimately eliminated in cooperation with the supplier. Instead of
putting cost pressure on suppliers, cooperation should be sought in order to jointly
implement cross-process optimizations. An OEM asking his supplier how much additional
costs will be incurred if the previous load carrier is changed to a smaller one is the wrong
approach. An already ideally positioned supplier, who previously transferred the small load
carrier to a large load carrier, is certainly very pleased when he is asked by the OEM if there
are additional costs to be paid when a process (the transfer to a large load carrier) is omitted.
The goal of lean logistics is to jointly optimize the processes and jointly exploit the benefits
of the potentials.
21.6 Supply Chain Management 289
Preparing sets and shopping carts (see ▶ Sect. 21.1) and repacking load carriers is part
of picking. Due to the optimization of processes, it is sometimes necessary to repack
containers, e.g., for use as minomi or for the use of smaller load carriers. Repacking of parts
should be discussed and agreed with quality assurance so that no unexpected quality
problems arise. Repackaging should only be used temporarily as an interim solution. It is
more economical to have the goods delivered in the appropriate containers or systems right
from the start.
There are different systems for picking processes. A distinction is made between
“picker-to-goods” and “goods-to-picker” (cf. Möller et al. 2016). Depending on the
environment, the area of application must be selected. Different systems support the correct
“picking” of parts from the compartments. For example, a lamp on the compartment signals
the pick and, if necessary, also the quantity to be removed. This method is called “pick-by-
light”. The pick is monitored by sensors, such as levers, and is acknowledged at the time of
removal. Thus, the method follows the poka-yoke principle of error avoidance and error
prevention (▶ Sect. 9.3).
21.6 Supply Chain Management
The subject area of supply chain management is very comprehensive. Here, a few excerpts
are presented in the context of lean management.
As with the consideration of an entire process chain, the entire supply chain is also
considered across all transport and storage stages.
" Supply Chain Management (SCM) Supply chain management describes the manage-
ment of the supply chain. In this context, all processes are considered, starting with
purchasing and extending to service provision and customer benefits. The supply chain
approach corresponds to that of the value chain.
Supply chain management has the following objectives (Dillerup and Stoi 2016, p. 330):
• Reduction of lead and delivery times as well as increase of adherence to delivery dates
• Cost savings, e.g., through reduction of inventories, lowering of transaction costs or
better capacity utilization
• Increasing the adaptability of the value chain to changing market conditions and
accelerating innovations
• Increased forecasting and planning accuracy and reduction of market risks
• Avoidance of production delays, inter-company idle times, rework and complaints
Supply flows are smoothed using the pull principle or one-piece flow. Problems and
effects (e.g., whip effect due to forecasts) are eliminated. Supply chain management resorts
to different strategies depending on the type of product and the delivery method. Product
290 21 Supply Chain
characteristics (expirable products, temperature-sensitive products, product size, etc.) must

be considered. Accordingly, it is decided whether, for example, a warehouse is set up on
site at the customer. In sum, supply chain management considers the total costs over the
entire supply chain and thus finds the optimum between handling, storage and transport
costs.
From this, we can see why there are several key elements at Toyota that promote a lean
supply chain:
• Toyota has a stake in most of the suppliers.

• Suppliers have their plants in the immediate vicinity of the factory and thus short
distances (Toyota City).
• Toyota gives the supplier a demanding purchase price after reviewing the operation, but
at the same time supports the supplier in implementing lean and thus achieving the
target.
• Agreements do not exist in written form. The cooperation is based on trust.
Example
The sports car manufacturer Porsche introduced various measures across the entire
supply chain of assembly parts for its plant in Leipzig. In 2009, the Volkswagen
Group introduced the NLK methodology (New Logistics Concept) and docked it onto
the production system. This methodology brings together lean supply chain methods
and defines logistics standards. They focus on internal and external logistics with the
aim of reducing overall costs.
One criterion for success is the consolidation of incoming material from suppliers via
a two-stage hub. The incoming parts are prepared in sequence without booking,
inventory management or labeling and delivered to the plant at fixed times by truck,
as a combined load of different supplier parts, just-in-time (◉ Fig. 21.6). The parts go
directly to the assembly line by tugger route train.
By eliminating waste and integrating the flow principle, it was possible to exploit
considerable potential within the Group. At Porsche, this concept for the Leipzig plant
Direct delivery Indirect supply

Consolidation
OEM Hub OEM

7
14
21
Fig. 21.6 Direct supply compared to indirect supply with consolidation via hub
21.6 Supply Chain Management 291
Fig. 21.7 Two folded box pallets, stacked on top of each other
eliminated three of the seven handling steps, eliminated the two internal storage stages,
reduced the inventory range by 25% from 1.6 to 1.2 days, and thus saved 19% of the
logistics costs per vehicle. ◄
Folding load carriers, such as box pallets (◉ Fig. 21.7), are a phenomenon. In these large
load carriers, the side sections can be folded up and placed on the base plate. The load
carrier is reduced to a narrow and flatter volume. The aim here is to save volume—and
particularly in the case of overseas freight and when carrying other goods, this design offers
the possibility of transporting empties with a small volume and saving freight costs.
However, in most cases, the use of a foldable box pallet is a major waste. The
occurrence of waste in foldable load carriers is illustrated by the following example.
Example
When unfolded load carriers with contents are delivered, they require the full volume. In
one example, a truck delivers six of these load carriers three times per day. This is a total
of 18 load carriers. The empties are folded by a logistics employee. The 18 folded load
carriers fit on a truck, which takes the load carriers back to the vendor on one trip. On the
other two trips, the truck returns empty (◉ Fig. 21.8). ◄
If the empty runs are made directly or indirectly back to the supplier, this is already the
first unused waste. The following considerations lead to this practice: It is not important
that all three trucks make the return journey with empties or that only one of the trucks
does. Upon closer examination, the detail lies in the process of folding the load carriers.
This process is unnecessary and over the entire supply chain there is again an employee at
292 21 Supply Chain
Fig. 21.8 Process and truck load for foldable load carriers
the supplier who has to unfold the boxes. This represents an unnecessary waste. The
process is more economical if the empties are exchanged with the full goods in the case
of direct delivery. This avoids empty runs, load carrier handling, fluctuations in the number
of load carriers required and working time for folding up the load carriers at the recipient
and setting them up again at the supplier.
The Following Questions must be Answered in the Supply Chain Topic
• Is material ideally provided (best point)?

• Are small load carriers predominantly used for the placement of material?
• Is a maximum of two hours of inventory in production?
• Are there no repacking processes?
• Is the factory floor free of forklifts?
• Are full loads exchanged for empties without any intermediate routes being carried out?
• Is waste consistently pushed outwards from the point of value creation towards suppliers
(line-back)?
• Are sets and shopping cart systems used where variance requires them?
• Are minomi solutions used sensibly with appropriate potential (e.g., in the case of
variants and space problems)?
• Are delivered parts suitably consolidated?
• Are deliveries of goods to the plant timed and just-in-time?
21.8 Summary 293
• Are foldable load carriers not folded unnecessarily after emptying?

• Do carriers who have delivered full loads in reusable load carriers not leave the plant
without empty load carriers?
21.8 Summary
Summary on the Supply Chain

• Line-back describes the principle for optimizing the logistics chain, starting from the
place of value creation, i.e., production, outwards to the supplier. Waste is shifted
from the place of value creation to the outside.
• A logistics process is described with: Carrier, placement, supply, request.
• An ideal material supply always takes place at the same point without the need for a
time-consuming exchange of load carriers. This is supported by the two-container
principle or a set or shopping cart.
• Delivery in the sense of lean thinking is short-cycle supply in small quantities and via
as few warehouses and handling points as possible.
• The complexity lies in the exchange of the full load with the empty load. The
procedure for tugger route trains is to exchange empties for full load carriers. The
tugger route train works according to the milk run principle.
• The forklift can be compared with the characteristics of a taxi and the tugger route
train with the characteristics of a bus.
• Supermarkets, from which the tugger route trains serve themselves, are built up
mirror-inverted from the material supply to the line. Thus, the materials are placed on
the trolley first, which are unloaded last.
• Minomi stands for “part without packaging”. It is a delivery principle that makes use
of gravity. An inclined plane causes the parts to slide from one storage level to
another. Minomi systems are solutions based on the LCIA approach.
• From a lean point of view, minomi is the most interesting type of delivery, as load
carriers and packaging are completely avoided. The sensible use of minomi must be
checked and is usually based on a space problem or a problem caused by a
non-continuous delivery option.
• To ensure that the material is optimally ready for the pick-off, it must be prepared and
picked accordingly. This includes repacking, assembling, loading and separating the
goods.
• As with the consideration of an entire process chain, the entire supply chain is also
considered across all transport and storage stages. Supply chain management (SCM)
describes the management of the supply and delivery chain. Ultimately, supply chain
management considers the total costs over the entire supply chain and thus finds the
optimum between handling, storage and transport costs. ◄
294 21 Supply Chain
Questions
• What is the line-back principle? How does the line-back principle work?
• What does the size of a load carrier depend on?
• What does the term best point stand for in relation to material placement optimized
for tapping?
• How does the “shopping cart” logistics concept work? What are the advantages of a
shopping cart?
• What is meant by a forklift-free factory? Where does this vision reach its limits?
• Can the milk run only be used within a factory?
• How can the forklift truck and the tugger route train be distinguished based on their
areas of application?
• Why do package delivery services in the U.S. usually only turn right?
• What force principle does a minomi system use?
• Which advantages and disadvantages can be identified using minomi systems in
assembly and logistics?
• How does single-variety versus sequential deployment differ?
• What are the objectives of supply chain management?
References
Convis G (2006) Toyota’s globalization takes shape through the camry. Speech, The Auto Channel.
https://www.theautochannel.com/news/2006/08/10/018019.html. Accessed: 1st Sep. 2017
Dillerup R, Stoi R (2016) Unternehmensführung–Management & Leadership: Strategien–
Werkezeuge–Praxis, 5th edn. Vahlen, Munich
Gorecki P, Pautsch P (2013) Praxisbuch Lean Management–Der Weg zur operativen Excellence.
Hanser, Munich
Liker JK, Meier D (2006) The Toyota way Fieldbook, 1st edn. McGraw-Hill, New York
Liker JK, Trachilis G (2016) Lean Leader auf allen Management-Ebenen entwickeln–Ein praktischer
Leitfaden, 1st edn. Lean Leadership Institute, Winnipeg
Möller K, Gabel J, Bertagnolli F (2016) Fischer fixing systems: moving forward with the workforce–
change communication at the global distribution center. J Inf Technol Educ: Discuss Cases 5:1–24
Sustainability
22
More with less

Basic philosophy of efficiency
Overview
Sustainability and resource efficiency are closely linked to lean. All topics have the
avoidance of waste in focus. Energy efficiency can reduce production costs in the
industrial environment.
Knalsch GmbH: Hidden Costs

Karsten Horch, the controller, discusses with Joerg Escher, the development man-
ager, the product costs for the new Knalschi 300, which is to be launched on the
market next year.
The solution with the new aluminum housing has many advantages, but according
to Horch, the cost per part increases significantly compared to the previous product.
“Yes, I know aluminum is more expensive, but we did take that into account,”
Escher replies.
Horch shows the chart, “But add to that the energy costs per part, which should
not be underestimated.”
(continued)

https://doi.org/10.1007/978-3-658-36087-0_22
296 22 Sustainability
Escher waves it off, “Energy costs per part? That doesn’t really matter, and it can’t
be that much.”
“Yes, it does,” Horch said. “We have to convert all energy costs to the product to
be able to quantify the costs accurately. The electricity may come out of the socket,
but we still must pay for it. So does compressed air. That is one of the highest items in
our energy costs. By the way, the boss asked me to determine the carbon footprint of
our new products, and the Knalschi 300 doesn’t look good at all.”
Escher puts it into perspective, “Now slow down, this is our most promising
product.”
Karsten Horch, “Well, then it should be sustainable and resource-saving even
more.”
22.1 Lean and Green
Lean and sustainability belong together and are not a contradiction. However, the previous
value stream is defined more broadly and includes material and energy efficiency. In
addition, the material flows are also considered according to the product life cycle. The
view of product recycling and any reuse that may take place in the production cycle is
added. Customers demand “green” products. CO2 consumption plays an important role in
this. How much CO2 does production generate and what is the CO2 footprint of the
purchased product during production and use?
Many of these considerations have to do with product design and production. But the
material sourced from suppliers also has a significant impact on the bottom line.
Example
The Volkswagen plant in Bratislava, the fischer plant for fixing systems in Waldachtal
and several other manufacturers will be presenting their resource-efficient production in
the production halls with selected examples under the heading “Blue”.
The fischerwerke company combines its “fischer ProcessSystem”, which
incorporates lean thinking, with the idea of sustainability and resource efficiency. This
includes the “3Rs” for ecological optimization of production: “Reuse”, “Reduce” and
“Recycle”. ◄
In some companies, an “E” for “Environment” is added to the Lean “SQDCM” metrics
logic (▶ Sect. 23.1). The environmental aspects and the associated key figures are tracked.
Key figure sets with a focus on the environment and sustainability are described in a
guideline for operational environmental indicators (Bundesumweltministerium and
Umweltbundesamt 1997).
22.2 Resource Efficiency 297
22.2 Resource Efficiency
Resource efficiency means reducing the use of natural resources in the manufacturing
process of products.
" Resource Efficiency VDI Guideline 4800 Part 1 (VDI 2016) defines resource efficiency
as the ratio of a certain benefit or result to the resource input required for it. The increase in
efficiency as a quotient of output to input can then be achieved by a lower factor input
(minimum principle) or by increasing the yield with the same factor input (maximum
principle).
Lean and resource efficiency management pursue a holistic approach to increasing

efficiency. Both approaches focus specifically on reducing costs. Lean management
looks at people in their work process, while resource efficiency management pursues the
additional goal of reducing negative environmental impacts. While lean is also applied to
product development and product design, resource efficiency management covers pro-
cesses more broadly, across the entire process chain from raw material extraction to
recycling. It is worth mentioning the different use of the term resource in both concepts.
In the lean context, in addition to material and information flows, the term also includes
capacities in the form of machines, raw materials, auxiliary and operating materials, as well
as the time and activities of the people involved in the process (Bertagnolli et al. 2017).
In this context, the “haiki shiki ceremony” held in a Japanese plastics plant should be
mentioned. Defective products and residual materials are collected and stored. The residual
materials are regularly inspected and discussed together as to how they can be further
avoided. During the ceremony, employees bow to the residuals and apologize for the waste
on behalf of all company employees and vow to do better (Schmidt et al. 2019, p. 49). A
Japanese call to reduce waste in terms of resource efficiency is “mottainai” - “What a
waste!”. This exclamation equally conveys a sense of regret for waste (Helmold 2020,
p. 185). Japanese environmentalists use the term to encourage people to reduce, reuse and
recycle resources (3R).
In ▶ Sect. 12.2, it was explained that processes with good ergonomics lead to waste-free
processes. This comparison is also valid for resource efficiency. Processes that are designed
to be resource efficient are also free of waste.
Various lean methods support the topic of resource efficiency and thus reduce the
material and energy requirements in the processes of a production. ◉ Fig. 22.1 gives an
overview of the lean methods that have an effect on resource efficiency. ◉ Table 22.1 shows
how these methods have a positive effect on processes and resources.
Lean has a positive effect on the three pillars of sustainability. In the economy, there is a
shorter payback period and the energy requirement per manufactured product is reduced. In
ecology, the reuse of materials, less material waste or energy recovery have an effect. One
10
5 6 12
9
1 3 11
8
2 4
Fig. 22.1 Overview of lean methods with effect on resource efficiency in a factory
possibility is the use of recycled material, for example by plastic manufacturers, to produce
plastic load carriers.
In the social sector, all topics related to ergonomics are relevant. Lifters and height-
adjustable working levels allow waste-free and ergonomic work and preserve the
workforce.
The principles for achieving sustainability can link lean and resource efficiency (◉
Table 22.2).
Material efficiency results from a reduction in scrap and material waste. The increase in
product quality has the effect of a higher yield. In Schmidt et al. (2019, p. 46), a ninth type
of waste is defined for resources. The focus is on “waste, offcuts and residual materials”.
New ideas avoid the waste of material in processes.
Example
Instead of wrapping the packages with stretch film, the company fischerwerke glued hot
glue beads to the packages, thus creating an anti-slip effect during stacking.
Investments, time, energy, material and 177 tons of CO2 equivalents were saved
(Heinz 2016, p. 29).
Many practical examples of resource efficiency in industry can be found in Schmidt
et al. (2017) and Schmidt et al. (2019). ◄
22.2 Resource Efficiency 299
Table 22.1 Lean methods to support resource efficiency

Topics Lean methods Examples
1. Product design • DfX • Standard small parts
• Design for logistics • Standard tool
• Design for repair • Material selection and material saving
• Design for • Reuse
recycling • Optimization of the life cycle duration
• Easy disassembly
• Better transportability
• Lightweight construction
• Material substitution
2. Automation • Karakuri • Less energy due to transport chutes
• Low-cost intelligent • Simple machines and equipment
automation • Reuse of machinery
3. Installations • Quick changeover • Inventory reduction
• One-piece flow • Reduction of storage and area
4. U-cells • Flexible manpower • Shutting down entire cells when there is
system no demand
• Small machines • Flexible use of assembly cells
• Less space
5. Quality • Jidoka • Reduction of scrap and rework
• Poka yoke • No waste of material
• Automatic system stop
• No production of bad parts
6. Human • Ergonomics • Fewer movements
• Safe workplace
7. Energy • Elimination of • Energy flows, material flow cost analysis
waste • Use of wasted heat
• Energy efficiency • Key figure tracking and optimization
• Key figure CO2 • Analysis of compressed air network,
search for leakages
8. Logistics and supply • Just-in-time • Late formation of variants
chain management • Pull principle • Inventory reduction and area reduction
• Variant reduction • Less transport
• Using the pull principle for resources:
only get what is needed
9. Processes • Stabilization • Balancing of fluctuations
• Standards • Leveled utilization of machines
• Elimination of level peaks save maximum
resource provisioning
10. Consideration of the • Value stream • Visualization of environmental issues
overall process mapping • Sanky diagram
• Shop floor • Visualize energy consumption
management • Combination of value stream with
• Transparency resource efficiency methods
(continued)
Table 22.1 (continued)

Topics Lean methods Examples
11. Resource efficiency • ninth type of waste • Waste reduction
• Recycling • Less offcut
• Reuse • Better material utilization
• Sorting and use of residual materials
12. Change management • Sensitization • Communication measures
• Lean awareness • Training courses
• Business games for resource efficiency
Table 22.2 Contribution of lean achieving sustainability

Principles Linking the topics
Efficiency • Process optimization
• Waste-free processes
Consistency • Continuous flow of information and material
• Consideration of production in development
Sufficiency • Linking energy efficiency, material efficiency and process efficiency
• Savings in various fields through inventory reduction
Resilience • Quality system
• Flexibility in relation to external influences
Management rules • Safety first
• Lean leadership and Hoshin Kanri
22.3 Energy Efficiency
Energy efficiency is a competitive advantage, as the manufacturing costs per part include
an energy cost component. The purchase of necessary CO2-certificates increases the costs.
Energy efficiency is thus an issue of lean production and serves to avoid higher costs.
" Energy Efficiency Produce more with the same energy input or produce the same
amount with less energy input.
The known eight types of waste can be transferred to the consumption of energy (◉
Table 22.3).
Walk-throughs can identify and eliminate energy waste. Listening to leaking com-
pressed air can identify leaks. Using a thermal imaging camera, poor insulation can be
identified and improved. Open windows with simultaneous heating and lighting in unused
areas are other wastes that can be identified and corrected. The use of energy-saving light
bulbs and motion detectors is one measure for improvement. Also of interest is the
22.3 Energy Efficiency 301
Table 22.3 The eight types of waste using the example of energy
Types of waste Examples
Overproduction • More energy available than necessary
• Machines switched on without production
• Heating without use
Inventory • Heating or cooling of stored goods
• Reheating after cooling down
• Transport of inventory
Inefficiency • Consumption due to a poor range of action
• Incorrect transmission
• Lack of thermal insulation
Transport • Unused compressed air network
• Several compressed air lines with different pressure
sizes
• Energy transport with losses
Waiting time • Running conveyor belts without material transport
• Energy consumption during non-production periods
and breaks
• Start-up and run-down of machines
Defects, rejects and rework • Renewed energy use for process repetition
• Energy expenditure for repairs
• Removal of waste and rejects
Process overfulfilment • More energy consumption than necessary
• Poor efficiency
• Ventilation, heating, lighting in unused locations
Unused employee potential and unused • Lack of understanding and awareness in the staff
information • Avoidance of identified energy waste
• Use of wasted heat for processes with demand
detection of leaks in supply and disposal lines as well as oversized machinery, equipment
and ventilation.
Example
Compressed air is one of the most expensive forms of energy. During production, 90%
of the energy is lost. The volume of 1000 m3 costs 10 to 15 Euro. Compressed air causes
between 5 and 25% of the total energy costs in industry (Heinzel 2013, p. 327). The
leakage of compressed air additionally causes a high loss and poor energy efficiency. ◄
From the point of view of lean production and production engineering, it must be
examined whether the use of pneumatic tools is necessary or whether electrically driven
tools are more economical. This also under the aspect that a battery-powered tool is more
flexible in terms of location.
Various methods are used to optimize energy efficiency:
• Visualization of energy flows using value stream mapping and sankey diagrams
• Checklists and walk-throughs to find inefficiencies
• Identification of leakages and losses within pipeline networks
• Measurements and analysis of energy consumption over the operating time
• Identification of high energy consumers
• Comparison of actual consumption and target consumption according to specifications
• Measurement of energy and compressed air consumption during standstills (standby
consumption)
• Matching of capacities with demand and levelling of consumption peaks
• Detailed machine analysis with different parameters and reactive current consumption
• Review of energy consumption for warehousing
• Energy recovery and reuse (e.g., use of wasted heat)
22.4 Disassembly and Recycling
The topic of disassembly and recycling is also determined by the product design (see
also ▶ Sect. 17.3). In the product development phase, the foundation is laid not only for
good production, but also for the end of the product life cycle. The questions are: How well
are products reassemblable and recyclable materials separable? Products that are good at
being assembled are usually also good at being disassembled and separable in the reverse
order.
In the context of recycling, it is possible to reuse components that have a longer service
life, such as motor coils, gear parts or metal housings. The remanufacturing of products is
understandably associated with considerably less material expenditure than the procure-
ment of new material.
The separation of materials by type makes it possible to reintroduce materials into the cycle
as secondary raw materials. The part of the supply chain with the processes from extraction,
mining and processing to the transport of the material for further processing is eliminated.
The lean methodology does not stop at the production of a product. The processes for
disassembly and recycling can also be optimized through process analysis and
improvement.
These Questions Analyses the Topic of Sustainability
• How much of an impact does production have on the environment?

• Are the CO2-emissions of the factory recorded?
• Is the carbon footprint of the products determined?
22.6 Summary 303
• Is the CO2-consumption as a key figure in focus and reduced by optimizations?

• Are materials of the products taken back and recycled after their useful life?
These Questions Deepen the Topic of Energy Efficiency
• Are energy efficiency measures being implemented?

• Can the lighting be switched to specific areas?
• Are only necessary lights in operation?
• Is the illuminance adapted to the work area?
• Can lighting be replaced by daylight?
• Is there only basic lighting in automated areas with switching on for maintenance
activities?
• Is the lighting, heating and ventilation in offices and halls switched off when no work is
being carried out (during breaks, at night, at weekends)?
• Is the medium of compressed air viewed critically and only used where it makes sense?
• Are compressed air lines and tools regularly checked for leaks?
• If a compressed air network is operated, is there only one specific pressure and not
several compressed air lines with different pressures?
• Can air-powered tools also be operated at lower air pressure?
• Is compressed air not consumed unplanned (e.g., cleaning, ventilation)?
• Is it possible to convert from air-powered tools to electric operation?
• Is the compressed air switched off when not in use?
• Can the power and media for individual cells be shut off when not in use?
• Is there parallel operation of heating, ventilation or cooling?
• Don’t faucets drip?
• Are all media lines free of leaks?
• Are insulations undamaged?
• Are the gates and windows closed?
• Is the entire workforce aware of the issue of energy consumption?
• Are appliances (e.g., office equipment, coffee machine) switched off when not in use
and not in standby mode?
• Are all end users switched off overnight, at weekends and during company holidays?
22.6 Summary
Summary on the Topic of Sustainability

• Lean and sustainability belong together and are not a contradiction. The value stream
is supplemented by material and energy efficiency.
• The “3R” stand for the ecological optimization of production: “Reuse”, “Reduce”
and “Recycle”.
• Resource efficiency is the ratio of a certain benefit or result to the resource input
required to achieve it. The aim is to reduce the use of natural resources.
• Resource efficiency management pursues the goal of reducing negative environmen-
tal impacts. The scope of consideration includes all processes along the entire process
chain from raw material extraction to recycling.
• Lean has a positive impact in the three pillars of sustainability.
• Economy: Shorter amortization periods, the energy requirement per manufactured
product is reduced.
• Ecology: Reuse of materials, less material waste or energy recovery, material effi-
ciency by reducing scrap and material waste.
• Energy efficiency: Producing more with the same energy input or producing the same
amount with less energy input.
• Energy wastage can be identified and eliminated through walk-throughs.
• Leaking compressed air is audible. Compressed air is one of the most expensive
forms of energy. During generation, 90% of the energy is lost.
• Poor insulation can be identified using a thermal imaging camera.
• Energy is wasted by leaving windows open while heating or lighting unnecessarily.
• In the product development phase, the foundation is laid not only for good produc-
tion, but also for the end of the product life cycle. Within the scope of recycling, reuse
of components is possible. ◄
Questions
• What is the difference in the use of the term “resource”?
• Which lean methods and examples support resource efficiency?
• Why is energy efficiency referred to as a competitive advantage?
• What are examples of the eight types of waste related to energy?
• What would be an alternative to tools powered by compressed air?
• What methods are in use to optimize energy efficiency?
References
Bertagnolli F, Lang-Koetz C, Schmidt M (2017) Zusammenhänge zwischen den Ansätzen Lean

Management und Ressourceneffizienz Management. In: Biedermann H, Vorbach S, Posch W
(eds) Transformationen–Neue Wege zu industrieller Nachhaltigkeit. Sustainability Management
for Industries, vol 7. Rainer Hampp, Augsburg, Munich, pp 61–72
Bundesumweltministerium, Umweltbundesamt (ed) (1997) Leitfaden Betriebliche
Umweltkennzahlen. Druckhaus Deutsch, Munich
Heinz A (2016) Das fischer ProzessSystem–Durch kontinuierliche Verbesserung zum nachhaltigen
Wirtschaften. Vortrag 23.06.2016, Ringvorlesung Hochschule Pforzheim
References 305
Heinzel P (2013) Effiziente Produktionsprozesse: Bedeutung der Effizienz von Technologien für
Ressourceneffizienz und Prozessmanagement. In: Schneider M (ed) Prozessmanagement und
Ressourceneffizienz–Der Weg zur nachhaltigen Wertschöpfung. Lean media, Landshut, pp
321–349
Helmold M (2020) Lean management and kaizen: fundamentals from cases and examples in
operations and supply chain management. Springer Nature, Cham
Schmidt M, Spieth H, Bauer J, Haubach C (2017) 100 Betriebe für Ressourceneffizienz.
Praxisbeispiele aus der produzierenden Wirtschaft, vol 1. Springer Spektrum, Berlin
Schmidt M, Spieth H, Haubach C, Preiß M, Bauer J (2019) 100 Betriebe für Ressourceneffizienz.
Praxisbeispiele und Erfahrungen, Vol. 2. Springer Spektrum, Berlin, Heidelberg
VDI (2016) In: Ingenieure VD (ed) VDI-Richtlinie 4800 part 1, resource efficiency– ethodological
principles and strategies. Beuth, Berlin
Key Performance Indicators
23
You can only manage what you can measure.

Peter F. Drucker
Overview
The current state of processes is captured with key performance indicators. Lean uses
the set of metrics from the categories of safety, quality, delivery, cost and morale.
Within these categories, further details are subordinated. Key figures can be used to
record the status and check the sustainability of measures. Benchmarking allows
comparison with other areas and companies.
Knalsch GmbH: The Lion Hunt

Because Karl-Norbert Alsch understands lean, he has attended a lean conference in
Munich and will soon be going on a benchmark trip to Japan to visit the best of the
best. There he wants to visit highly efficient companies, learn from them and gain
further insights to improve his business. He hopes to set himself apart from the
competition. In doing so, he remembers the story told by a professor at the lean
conference:
(continued)

https://doi.org/10.1007/978-3-658-36087-0_23
308 23 Key Performance Indicators
Two hunters are hunting lions in a jeep. In the morning, they come across a
magnificent lion prowling across the savannah. The hunters follow the lion and shoot
blindly at it as soon as it gets within shooting range. During the long pursuit, the lion
manages to avoid being hit by the hunters. After several hours, the tired and
provocated lion notices that the shooting has stopped, and the hunters are apparently
discussing excitedly. Suspicious, the lion approaches the jeep. The hunters are
doubly unlucky because the ammunition is shot, and the jeep’s gas tank is empty.
The first hunter sees the lion approaching, panics and yells, “The lion is coming,
we have to do something!”
The second hunter remains seated calmly and puts on his running shoes.
The first hunter asks, “What are you doing? You can’t run faster than the lion
anyway.”
The second hunter replies, “I don’t need to be faster than the lion either, I just need
to run faster than you!”
23.1 Key Figure Logic
To be able to continuously improve, it is important to know ehat is the status. Key figures
allow the status to be recorded. In the case of changes, optimizations or problem-solving
processes, the sustainability of the implementation is to be recorded and measured via key
figures. Transparency of key figures is a basis for shop floor management (▶ Sect. 25.2).
Key Figure Set SQDCM

Safety is the top priority and therefore the key figures around safety are also the first topic
area. This is followed by the topics of quality and delivery with a focus on lead time. This
corresponds to the two main pillars of the Toyota Production System with the principles of
Jidoka and Just-in-Time (▶ Sect. 14.2). Only then do the costs follow. Cultural topics are
grouped under the topic area of morals or people. The following letter sequences are used
for the abbreviations of the key figures and the sequence: SQDCM.
Within the KPI categories, appropriate process KPIs are used, depending on the area
(◉ Table 23.1). Indicators can be viewed from two perspectives and used accordingly.
Negative sounding units can conversely be used positively. Examples: Instead of a number
of defects, the number of good parts or instead of a sickness rate, the health rate.
All processes and activities can be measured according to these key figure categories.
For example, students can record and measure their studies and professors their teaching
activities using key figures (◉ Table 23.2).
23.1 Key Figure Logic 309
Table 23.1 Examples of the key figure categories

Category Example of key figures
Safety Occupational accidents, health, ergonomics, safety instruction, environment
Quality Defects, rejects, rework, direct run, customer satisfaction, returns
Delivery Quantities, lead time, delivery dates, delivery reliability, productivity, flexibility
Cost Budget, tools, material, parts, transport, stocks, shifts, personnel
Morale Employees, leadership, culture, successes, qualification, feedback, improvements
Table 23.2 Examples for the recording of key figures at a university

Category Students Professors
Safety Accidents, hazards, compensation Occupational accidents, hazards, ergonomics
Quality Results and grades Evaluation, feedback
Delivery Semester, credits, exams Timetable, students, thesis
Cost Cost of studies, materials Funds raised, expenditure
Morale Fellow students, study group, parties College, network, culture, strategy
Magic Triangle
There is a tension between three of the key figures. Quality, time and costs form the magic
or iron triangle. The metrics are mutually dependent. Suppose a company undertakes a cost
reduction program. If costs are cut, this usually has a bad effect on quality and likewise on
delivery time. Product quality cannot be maintained by material cost reduction or reduced
testing. The process time becomes worse. With fewer employees, capacity, availability and
problem-solving skills decrease. Optimization also does not take place. The customer waits
longer for the product. The focus on costs is the rule, with all the consequences described.
Example
Toyota takes on all three factors with the understanding that eliminating waste lowers
costs. Thus, the company relies on “the principle of three conditions: Top quality, low
cost and absolute time management” (Köhler 2006). ◄
If the triangle is turned upside down, a different picture emerges. The focus is primarily
on the two pillars of the Toyota Production System. With quality (jidoka) and time (just-in-
time), the focus is on customer orientation. If the company launches a quality offensive or
optimizes lead times, both have a positive effect on costs. If quality is improved, rework
and rejects are reduced. This reduces costs while at the same time satisfying customers. If
delivery and throughput times are improved, inventories are reduced. Waste is eliminated
and the customer receives his product faster. Both measures lead to better customer
satisfaction and a reduction in costs (◉ Fig. 23.1). It is about the different perspectives
between the focus on the result or the focus on the process (see ▶ Sect. 3.1).
Cost Quality Time
Quality Time Cost
Fig. 23.1 Key figure logic with focus on cost reduction versus optimization of quality and time
Productivity and Performance

The combination of input and output results in productivity. Productivity ratios enable a
comparison. The quotient of number of units per resource used or number of units by
employees results in a productivity ratio of the number of units produced in relation to the
selected resource unit. An example is the number of products produced per employee
(Eq. 23.1). The reciprocal is also possible as a performance measure. A performance is the
number of resources used per unit, such as the sum of the working time used per product
unit as hours per unit (HPU) (Eq. 23.2).
P
Products produced
Employee productivity ¼ P ð23:1Þ
Employees
P
Working hours
HPU ¼ P ð23:2Þ
Products produced
In automotive production, the performance indicator “hours per vehicle” (HPV) is used
as a comparative indicator. The calculation includes the paid attendance hours of all
employees (direct and indirect workers as well as salaried employees) and not only the
working hours of employees in production (Hartmann et al. 2008). Since 1981, automobile
manufacturers have been using this indicator to compare performance and efficiency
internally and externally in the confidential “Harbour Report”. The complexity of the
product and the equipment requirements between small cars and premium vehicles have
a major influence on this indicator.
Example
In the USA, Toyota was the most recent leader in the report, with 30 hours, closely
followed by the five other major American manufacturers. In Europe, the gap between
the best manufacturer with 20 hours and the worst with 60 hours is greater (Knauer
2015). ◄
23.1 Key Figure Logic 311
Key figures involving employees or their working hours, such as productivity, must not
be considered in isolation. If an attempt is made to improve productivity, there are only two
possibilities. The production of a higher number of pieces is possible. However, this
depends on the market. Overproduction would be good for productivity but not for cost
expenditure. Or the decision is made to reduce the number of employees. This is not a
sustainable solution. On the balance sheet account of personnel costs, this measure lowers
the costs, but with a then opposing investment in automation and plant technology, the cost
block increases. Energy costs increase, flexibility decreases, and trained employees are
needed to maintain and operate this complex technology. The right balance between
manual and automated activity must be found. In any case, people are more flexible than
machines (Rührmair 2015).
Lead Time
Lead time can be used as one of the most important indicators for measuring a production
or process chain. Many of the factors for a lean process are bundled in this key Fig. A short
lead time combines the following aspects and has a positive effect on the company’s key
figures:
• Low inventories: Less capital tied up, better cash flow, increased return on investment
• Space reduction: Fewer storage areas, less product damage, lower space costs
• Short delivery time: High delivery capacity, high customer satisfaction, higher sales
volume
• Good delivery reliability: Low inventories, no special processes/transports, less admin-
istration, lower costs
• Short process times: Productive processes with little waste, lower costs, higher
quantities
• High flexibility: Fast reaction to changes, less coordination effort, short set-up times,
higher quantities, less storage space, lower costs
• Better quality: Fewer defects, fewer repeat loops, reduced scrap, no rework, less or no
space for rework area, higher quantities lower costs
• No bottlenecks: guaranteed output, no delays, no stocks
• Stable processes: Good capacity utilization, smoothed production, continuous material
flow and transport, lower transport costs
Influence on Company Key Figures

At the end of the year, the results in the company balance sheet are what count in
economically oriented companies. The influences of lean are usually not immediately
and quickly recognizable in the balance sheet, but they are sustainable. Lean principles
have a positive effect on the company’s key figures in the balance sheet and the profit and
loss account. The return on net assets (RONA) and the return on sales (ROS) improve.
" Return on Net Assets (RONA) Measurement of the return earned in a financial year as a
percentage of a company’s assets (Eq. 23.3). It shows the percentage return on capital
employed in a given period.
Operating profit
RONA ¼ ð23:3Þ
Net assets
Net assets include fixed assets, inventories and receivables (Eq. 23.4).
Net assets ¼ Assets þ Inventories þ Receivables ð23:4Þ
" Return on Sales (ROS) Determination of the ratio of a company’s profit to sales. The
calculation is made by dividing operating profit by sales revenue (Eq. 23.5). The result is
expressed in percent.
Operating profit
ROS ¼ ð23:5Þ
Sales revenue
Lean principles and their influences on costs have a positive effect on the profitability of
a company. The correlations are shown in ◉ Fig. 23.2.
Charifzadeh et al. (2013) show how lean implementations are a value driver for
company performance indicators and increase the “economic value added” (EVA). Eco-
nomic value added is calculated from capital revenue as net operating profit after taxes
(NOPAT) less the total cost of capital (Eq. 23.6).
EVA ¼ NOPAT Total cost of capital ð23:6Þ
23.2 Benchmarking
Benchmarking originates from the computer industry and is one of the procedures for
specifically comparing organizations with each other. It serves the internal and external
comparison of processes, because “only those who know their opponent can defend
themselves”.
23.2 Benchmarking 313
Profit and loss account Balance sheet
Sales Variable Fixed

Receivables Inventories
revenue costs assets
– +
Contribution Fixed
Net assets Cash
margin costs
– +
=
+
ROS (Return Operating RONA
on sales) profit Net assets Equity Debt
–
Interest +
Net profit =
Taxes
Fig. 23.2 Influences of lean on RONA and ROS (schematic)
" Benchmarking A targeted, continuous process in which comparative objects are com-
pared as independently of the industry as possible. For this purpose, differences, causes and
opportunities for improvement are to be identified. The comparison can relate to different
areas, such as strategy, process, culture or management. The organization with which
benchmarking is carried out can be internal or external. The industry can be the same or
different.
The target is to identify competitive advantages. Performance gaps compared to

competitors are to be reduced or closed. Performance advantages are further expanded to
establish top performance. Thus, a competitive position is achieved.
Procedure of a benchmarking process:
1. Selection of the process to be considered: Procedure, approach, strategy, culture

2. Selection of the benchmark to be considered (internal/external)
3. Determination of the questions and the procedure
4. Data collection before observation
5. Data acquisition during the observation
6. Documentation and evaluation of the results
7. Comparison of performance, identification of strengths and weaknesses
8. Identification of gaps, deviations and weaknesses
9. Derivation of improvement measures
10. Development of an improved state
Goodson (2002) shows in his article “Read a Plant – Fast” how a procedure for effective
benchmarking can be carried out during a site visit. In addition, categories are given in the
article and guidance is given on how to record conditions. Cultural aspects, such as
teamwork and motivation, are recorded. A questionnaire provides orientation for a targeted
recording of the most important points.
The assessment of factories and conditions can be standardized through measurements
and measurement methods. Measurement enables comparability. Key figures, a maturity
assessment, questionnaires with categories and graphical representations such as the spider
web graphic are suitable.
When collecting and requesting key figures, specified guidelines and regulations must
be observed, as an exchange of key figures can also entail problems under antitrust law.
Attention must be paid to this when exchanging with competitors.
Likewise, an internal comparison with a self-assessment is possible. The evaluation
takes place through a self-reflection of the managers. This requires a culture of openness
and trust, without competition. The evaluation enables transparency and comparison of the
implementation status. This results in an exchange and joint improvement. If the perfor-
mance indicator were relevant for the personal target agreement of the managers, the open
exchange and transparency would certainly no longer take place. In this case, a culture of
improvement in the sense of kaizen is not lived and impossible (▶ Sect. 11.1).
Benchmarking can also become a pitfall. Processes and procedures must be understood.
Only if it is clear why a company has chosen a certain approach, it can be weighed up
whether the situation found is also a solution for own processes. Otherwise, it would be
“copying” instead of “understanding” (Rumpelt 2005). This would lead to imitation and
not to the desired surpassing of the competitors. Furthermore, there could be an incompati-
bility of the newer processes with the own corporate culture. Innovations could be
prevented if bad things were compared with bad things, but these were found to be good.
Benchmarking can support catching up with the competition. But overtaking the compe-
tition requires more. “It is not the big that surpasses the small, but the fast that triumphs over
the slow.” Being fast alone is equally unhelpful, only working together will achieve the goal.
23.3 Learning to See
The recognition of conditions and key figures in one’s own processes or in benchmarking
in other factories must be learned. Not only seeing is important, but also “listening” to the
process flows of production and administration provides information about the condition
and fitness of a company.
The following list provides an overview of topics that should be focused on more
closely. This can be used to gather further information.
• Where are inventories and how high are they?

Where there are inventories, problems are hidden. Where material backs up,
bottlenecks exist.
23.3 Learning to See 315
• How loud is it?

The volume in an area is an indicator of the workload and existing problems.
• Are standards and procedures consistent?
Insights abput leadership and the consistent implementation of the philosophy.
• How do managers deal with employees? How do they communicate with each other?
Indicator of the management culture and the way people interact with each other.
• Do boards exist for the implementation of shop floor management? Are these structured
in a similar logic and comprehensible?
If boards are present and interconnected in many areas across different levels of
management, a consistent philosophy of leadership at the point of value creation is
internalized.
• Are there current notices and how up to date are the key figures?
Shop floor management must be permanently lived and taken seriously. Shop floor
management is only carried out actively and on a short-cycle basis if the key figures are
up to date.
• Which key figures are recognizable? Which key figures are used to control the
processes?
In process control, the focus should be on customer key figures for quality and time.
In the area of employees, safety and ergonomics are the relevant control variables.
• How is the work organization structured and is there an improvement organization?
The support function when problems arise in the process is important. Experts
analyze and optimize the overall system in the direction of a corporate vision.
• Are working time models adapted and flexible?
Flexible time models enable the company to respond to major market fluctuations.
Smaller fluctuations or problems can be solved by decoupling shifts.
• Are low-cost solutions and clever ideas implemented?
Meaningful solutions that fit problems, that were developed in-house, and self-built
facilities demonstrate a learning organization with a highly competitive advantage.
• What does the value stream look like?
If the criteria of a target value stream are present (stable processes, flowing products,
balanced tact, system according to the pull principle or one-piece flow), potentials arise
from the overall process.
• How long is the lead time compared to the process time?
The closer the lead time is to the process time, the more waste-free the processes are.
Customer inquiries can be responded to quickly.
• How long do set-up times last? How often is setup carried out?
If changeovers are frequent with short setup times, the process is flexible, and
inventories are low. If every variant is produced on every day (every part every day,
EPED), the processes are optimal.
• How often does the stock turnover?
Inventory turnover is an indication of process fitness and warehouse utilization. If the
stock turns too slowly, the warehouse is probably not correctly dimensioned.
The Following Questions Are to be Answered in the Subject Area of Key Performance
Indicators
• How are successes measured?

• What does the benchmark and the competition do differently and why?
Detailed Questions on Specific Key Figures Are
• Definitions: What are the names of the metrics and how are they defined?
• Measuring points: Where and when are the key figures determined?
• Frequencies: How often are the key figures determined?
• Methodology: How and by what means are the key figures determined?
• Responsibilities: Who is responsible for determining the key figures?
• Representations: How is the visualization of the key figures done?
• Escalations: What steps are taken in the event of deviations in the key figures?
The questions from the previous chapter “learning to see” (▶ Sect. 23.3) are questions that
can be used as expert questions.
23.5 Summary
Summary on the Topic of Key Performance Indicators

• For continuous improvement, it is necessary to have an overview of the current
status. Key figures allow the current status to be recorded.
• Inventory, cycle time and process times are important lean metrics for processes.
• Transparency about key figures is a basis of shop floor management.
• The key figures can be named positively. Instead of the sickness rate, the health rate
can be recorded.
• The lean metric set is SQDCM. It stands for “safety”, “quality”, “delivery”, “cost”
and “morale”.
• The magic triangle is made up of the aspects “quality”, “time” and “costs”. These
influence each other.
• Productivity is determined by the quotient of output by resources used (input).
Output is the reciprocal value.
• The lead time determines how long a product needs to pass through the entire system.
• The influences of lean on the company’s key figures are usually not immediately and
directly recognizable. But they are sustainable.
References 317
• The lean indicators do not appear directly in the company’s key figures. The lean
principles have a positive effect on the company’s key figures: Balance sheet, profit
and loss account, return on net assets (RONA) and return on sales (ROS).
• Benchmarking is a targeted, continuous process in which comparative objects are
compared as independently of the industry as possible. The aim is to identify
competitive advantages and performance gaps.
• The assessment of factories and conditions can be standardized through
measurements and measurement methods. This enables comparability.
• Caution is required when asking for key figures. Guidelines and regulations must be
observed, as the exchange of key figures can also lead to problems under
antitrust law.
• If the benchmark is emulated, it can only catch up, but not overtake.
• Recognizing conditions and key figures must be learned. Different perspectives on a
company open different information and insights. ◄
Questions
• Which key figures can be used for everyday life? How are these to be classified in the
set of key figures?
• What are examples of each category in the SQDCM metrics set?
• What does the magic triangle assume when the cost of a component is reduced?
• What happens when the magic triangle is turned upside down?
• What metric do automakers use to compare performance and efficiency?
• Which aspects does the key figure lead time combine?
• How does the lead time affect the company’s key figures?
• How are the RONA, ROS and EVA ratios calculated and what do they each say?
• How does the benchmarking process work?
• Which topics should be focused on more closely to obtain further information during
benchmarking?
References
Charifzadeh M, Taschner A, Bettache A (2013) Werttreiber lean production. Control Manag Rev 2:
48–57
Goodson RE (2002) Read a plant – fast. Harv Bus Rev 80(5):105–121
Hartmann P, Frey C, Steen J (2008) Optimierung der Wertschöpfung am Beispiel der
Montageplanung der Mercedes-Benz Cars. ATZ Produktion 1:64–68
Knauer M (2015) Mit der Stoppuhr zu mehr Effizienz. Automobilwoche 4:4–5
Köhler A (2006) Fliegende Autos. WirtschaftsWoche 1–2:36–42
Rührmair C (2015) Menschen machen flexibel. Automobilwoche 22:16
Policy Deployment
24
Without a target, every shot is a hit.

In the style of Gotthold Ephraim Lessing
Overview
A company can only pursue a common goal if it is agreed upon and known across the
entire organization. Hoshin kanri is the method to carry out the target break-down
process between all areas horizontally and vertically.
Knalsch GmbH: Everybody What he Wants

“What is going on here?” asks Dr. Alsch aloud as he enters the meeting room for the
year-end meeting of the division heads. Claudia Beck has already projected the
division managers’ results on the screen. She says to her boss, “Everyone does
what they want, no one does what they’re supposed to, but everyone participates.”
The controller Karsten Horch rises to speak, “Dr. Alsch, it doesn’t work like that.
We have become better through lean, yes, but nobody has been able to reach the
target agreement. Everyone has different goals, and some of them conflict with
others.”
(continued)

https://doi.org/10.1007/978-3-658-36087-0_24
320 24 Policy Deployment
Alsch sits down and says, “Well, we haven’t changed much about the target
agreements for years. Now you see the good things that come with the new transpar-
ency. The first time we talk about it together, and already we see that it can’t actually
work.”
Silence slowly falls in the room. Managing Director Alsch suggests, “Let’s rather
look ahead. And instead of bringing transparency to the past, bring transparency to
the future. We have a chance to realign ourselves with our shared corporate vision.”
24.1 Hoshin Kanri
A company-wide target break-down process is the basis for a common alignment to the
vision of a company. Hoshin kanri brings the lean idea of process orientation into the
corporate strategy and supports its implementation.
" Hoshin Kanri Japanese term for a holistic policy deployment process. Through vertical
and horizontal coordination, both top-down and bottom-up, a common and clear goal
orientation is achieved. “Hoshi” stands for “star” or “compass needle”, “hoshin” for
“strategy” and “kanri” for “management”.
Hoshin kanri focuses on employee development and the achievement of process results.
The approach is thus contrary to traditional management by objectives (Liker and Trachilis
2016, p. 256). Hoshin kanri combines clear leadership with self-determined work.
At hoshin kanri, a systematic cascading process takes place across all areas of the
company. Vertical and horizontal coordination of objectives is in place. All employees and
managers are involved through a top-down and bottom-up process. It is ensured that
agreements reached are jointly supported and that all areas align their divisional goals
with the common vision. This ensures orientation and focus on the success of the company.
Hoshin Kanri is characterized by a different approach:
• Long-term orientation of a company towards the vision

• Direction setting by management top-down by means of vision
• Information flow and employee participation bottom-up via feedback loops
• Agreement vertically and laterally across all levels, without breaks between hierarchical
levels
• Focus on the development of employees rather than the evaluation of a performance
• Focus on results and processes
• Procedure analogous to kaizen and PDCA
• Participation: Involving employees as participants and as a team
• Leadership guidelines: Responsibility instead of authority
24.2 North Star and Blue Sky 321
24.2 North Star and Blue Sky
The vision or utopia of a company is the ambitious and often unattainable goal for a future
company direction. The time horizon is more than five years. The vision can change over
time. The strategic targets are derived from it.
The north star is, similar to the vision, a fixed point in the future. As a signpost, it
provides a direction. The lean north star, for example, sets the goal of “zero defects, 100%
added value, short lead times and safety for people”.
" North Star It is an entrepreneurial metaphor for vision. The north star or “true north” is
a distant, unreachable, universally valid point of orientation. Thus, it serves as a directional
guide, provides orientation and supports a common direction.
The first intermediate step from the actual state in the direction of the north star is a new
target state, which is oriented towards the north star.
The “blue sky” is the translation of the vision or the north star into a concrete textual and
graphical representation. It is the link between the corporate vision and the corporate
strategy with the implementation at the operational level. The blue sky thus achieves
consistency between organizational strategy and tactical change at the operational level.
" Blue Sky Description of the north star’s strategic objectives for a department with a
medium-term time horizon of approximately two years. The blue sky is illustrated pictori-
ally as a cloud, cartoon, with symbols or in some other form and shows target states. This
should serve as a guiding principle and clearly express the intention of achieving the goal.
The SQDCM key figure logic (▶ Sect. 23.1) is suitable as a structural classification.
The blue sky is developed together with the employees in divisional workshops. This
ensures that it is supported by all those involved. The result of the process is usually a
pictorial representation in combination with texts. The use of a classification according to
the categories of SQDCM gives the document a structure and considers all relevant subject
areas. The blue sky achieves a much higher level of implementation because it is developed
jointly and thus overcomes the obstacles of a classical approach (◉ Table 24.1).
On the basis of the considerations developed together with the employees, the further
implementation steps are agreed upon.
Table 24.1 Differences in the approach with blue sky

Traditional process Blue sky
The vision is set and dictated top-down by the board of The vision is the common
directors “consensus” of senior management
The vision is written only in words The vision is described in words and
with pictures
The vision can only be seen in company reports or on the The vision is omnipresent
internet
The development of strategies and their implementation The development of plans happens
take place on a function-specific basis. cross-functionally
Tactical implementation plans are not always documented Plans are always documented and
or detailed detailed throughout
24.3 Target Break-down Process
Through the corporate vision and strategy, overarching targets are established. By further
breaking down the targets and deriving a blue sky for all departments, the company’s
vision and strategy are carried into the areas. The derivation is done top-down and across
multiple levels. This is called target unfolding.
Communication is not only in one direction from top to bottom (top-down). A feedback
loop (bottom-up) provides for an exchange and a coordination process. The coordination
processes in target agreement are based on the catchball process.
" Catchball A Japanese game in which children throw a baseball back and forth in a
circle. In the target break-down process, catchball represents the opportunity for everyone
to contribute their ideas and for these to be figuratively “thrown back and forth”. Goals are
negotiated between parties in lively discussions to reach consensus. Contents are targets,
key figures, roles, responsibilities as well as the allocation of resources (Kudernatsch 2013,
p. 55).
Review and feedback loops between departments are provided for feedback. Goals and
strategy are thrown up and down across the entire management levels and mutually
validated in the process. Targets are aligned vertically and laterally according to the
catchball process and firmly anchored in agreements.
The target break-down process from vision to implementation at the operational level
takes place over several steps with different documents. The individual documents for each
area are derived via a cascading process and implemented at the operational level (◉
Fig. 24.1).
24.3 Target Break-down Process 323
Corporate vision
Corporate strategy
Blue Sky
Targets and KPIs
Implementation plan
with measures
Daily monitoring via

Review and feedback loop shop floor
management
Fig. 24.1 Cascading process (adapted from Asdonk and Diesch 2013 and others)
Corporate Vision and Corporate Strategy

The corporate vision forms the starting point for hoshin kanri’s cascading process. The
corporate strategy is derived from the vision. The strategy describes the company’s
direction for the next five years. Strategic guidelines are taken into account.
Blue Sky
The corporate vision and corporate strategy form the basis for the blue sky. The blue sky is
derived from the mentioned content and the situation of the division. Strategy, process and
culture topics are addressed.
In a workshop, the blue sky is developed, agreed and presented together with the
employees. The type of description corresponds to the form of target states. The represen-
tation takes place pictorially in the key figure structure according to SQDCM. The joint
definition of measurable and tangible target states results in an operationalization of the
vision and strategy. Measured variables and initiatives are included by the managers of the
division.
Targets and Key Performance Indicators

In this step, specific targets for the departments are derived from the blue sky. The key
topics that serve to implement the corporate vision are used. The objectives result from
deviations from the target image or from strategic considerations. The fields of action
regarding culture and cooperation are also to be included as goals.
Measurable key figures are fixed for each target. The focus should be on key perfor-
mance indicators. Through cascading, the key figures are to be broken down to the
departments. The current values and the target values of the respective key figures are
recorded.
Implementation Plan with Measures

For the planning and implementation of measures, an action plan is drawn up as a tactical
implementation plan (TIP) (see ▶ Sect. 30.3). It breaks down the objectives into concrete
measures in a timetable, with key figures, responsibilities and capacities. The planning
horizon is one year.
In higher department levels, there is usually a main plan, the “master TIP”. Further
tactical implementation plans for the subordinate areas are derived from this. Due to its
structure, the tactical implementation plan is also easily scalable via a cascade.
Another more individual form is the “A3” (in reference to the paper format “DIN A3”)
(Jackson 2006, p. 8). With the help of a larger paper form, the goal and the levers are
described and summarised in more detail. Included are the measures with the influenced
key figures on one sheet. The starting point (actual) and the target state are integrated. The
description is more detailed, like in a project profile.
Daily Monitoring Via Shop Floor Management

The measures from the implementation plan are implemented in day-to-day business and
reviewed regularly (daily to weekly) against the tactical implementation plan. A regular
review process is crucial for the achievement of objectives.
Measures are tracked through visualization within the framework of shop floor manage-
ment (▶ Chap. 25). The feedback of the implementation is requested and takes place
bottom-up. This results in a dialogue with short-term control of resources and capacities.
The implementation status and further fields of action are identified. Deviations are
identified early and visually marked. If necessary, a quick reaction and escalation by the
manager is ensured. Problem-solving processes are triggered in the event of deviations (▶
Sect. 25.4).
The Following Questions Are to be Answered in the Topic Area of Policy Deployment
• Does a defined target state exist?

• Does the target state have a long-term sustainable orientation?
• Is the target state communicated throughout the organization?
• Are the individual goals derived from the target state?
24.5 Summary 325
• Is there a blue sky that has been worked out together with the employees?
• Are improvement measures oriented towards a common cross-departmental optimum?
• Is there a strategy to get from the current state to the target state?
24.5 Summary
Summary on the Topic of Policy Deployment

• A company-wide target break-down process is the basis for a common alignment to
the vision of a company.
• Hoshin kanri stands for the holistic target derivation process. Through vertical and
horizontal coordination, both top-down and bottom-up, a common and clear goal
orientation is achieved.
• There is a focus on employee development. Achieving process results is the focus of
hoshin kanri. This is a contrarian approach compared to the traditional approach by
leading with goals.
• All employees and managers are involved. This ensures that agreements reached are
jointly supported.
• The north star is the entrepreneurial metaphor for vision. The north star is a distant,
unreachable and universally valid point of reference.
• Blue sky is the translation of the vision or the north star into a concrete textual and
graphical representation. The blue sky is developed together with the employees in
divisional workshops. The result of the process is usually a pictorial representation in
combination with texts.
• The target break-down process from the vision to the implementation on the opera-
tional level is carried out over several steps with different documents.
• Targets are coordinated vertically and laterally according to the catchball process and
anchored in agreements.
• The cascading process takes place over several steps: Corporate vision, corporate
strategy, blue sky, targets and key performance indicators, implementation plan with
measures and daily monitoring via shop floor management.
• Hoshin kanri’s approach is part of the introduction and implementation of lean
management. ◄
Questions
• How is the approach of hoshin kanri characterized?
• What is meant by the lean north star?
• How can the approaches of blue sky and the traditional target derivation process be
compared?
• How does the catchball process work?

• How is the target break-down process defined?
• How is a tactical implementation plan structured?
References
Asdonk M, Diesch R (2013) Mit Hoshin Kanri zur ganzheitlichen Ausrichtung der Lean-
Konzernentwicklung bei der Siemens AG. In: Kudernatsch D (ed) Hoshin Kanri –
Unternehmensweite Strategieumsetzung mit Lean-Management-Tools. Schäffer-Poeschel,
Stuttgart, pp 211–233
Jackson TL (2006) Hoshin Kanri for the lean enterprise: developing competitive capabilities and
managing profit. Productivity Press, New York
Kudernatsch D (ed) (2013) Hoshin Kanri – Unternehmensweite Strategieumsetzung mit Lean-
Management-Tools. Schäffer-Poeschel, Stuttgart
Liker JK, Trachilis G (2016) Lean Leader auf allen Management-Ebenen entwickeln – Ein
praktischer Leitfaden, 1st edn. Lean Leadership Institute, Winnipeg
Shop Floor Management
25
What the eyes see, the heart believes.

Karl Simrock
Overview
Shop floor management stands for a management tool that pursues management at
the point of value creation. The elements of shop floor management are, in addition to
production-related management, communication, the visualization of key figures, the
problem-solving process and standard-based process observation. Transparency in
leadership and processes supports the idea of kaizen. Structured problem-solving
methods enable the causes of problems to be identified quickly and eliminated in the
long term.
Knalsch GmbH: The Flop Show

Dr. Alsch is with foreman Laura Schmidt in the reworking area. Fritz Schuster, the
employee in the reworking area, intervenes, “I know what could be done better here,
but nobody asks me.”
“Oh, this seems like a bigger problem,” Alsch thinks to himself. “How can our
failures be avoided in the long term?” And so he says to the two of them, “I’m about
(continued)

https://doi.org/10.1007/978-3-658-36087-0_25
328 25 Shop Floor Management
to tell our production manager, Kai Lupfer, to immediately inform all employees to
pay better attention from now on and not to make any more mistakes.”
“We’ve done that often enough, it’s no use!”, Laura Schmidt counters him. “In the
weekly production meeting, these things are always addressed.”
Schuster is amused, “Yes, I’m keeping a low profile there, because that’s a flop
show management. All the key figures are green, although there are enough
problems. And you don’t get a word.”
Dr. Alsch wonders, “But why?”
Fritz Schuster responds, “Everybody is talking all over the place or it is assuming,
guessing, debating. That’s how it works there.”
“And what do you think would be a good solution?” asks Dr. Alsch.
Fritz Schuster says, “Well, facts and figgures. And please be serious. Then I’ll be
happy to contribute.”
Laura Schmidt thinks that’s good, “I would also like to do it very differently and
try something new. May I, Dr. Alsch?”
“Of course,” confirms Alsch. “Good ideas are always welcome.”
25.1 Management at the Shop Floor
The Japanese “genchi gembutsu” means to go to the source of what is happening to

research the facts on concrete things at the process site. Shop floor management is the
translation of this approach into factories and offices. Shop floor management is a manage-
ment tool with several elements. The goals are to secure improvements and a fast and
targeted flow of information.
" Shop Floor Management (SFM) Implementation of leadership at the point of value
creation. Shop floor management describes the supportive interaction between managers
and employees. The focus is placed on the value creation process and the exchange of
information is accelerated. Timely meetings and the analysis of problems take place at the
place of action, i.e., on the shop floor.
Shop floor management has its origin and main field of application in production. It is
also used in the indirect area, i.e., the office. That is why it is sometimes called “office floor
management”, “office board management” or “team board meeting”.
Shop floor management is centered at the “genba” (jap. for “crime scene”), the place
where the action takes place. This means getting out of the offices and into production. The
reason for this is the added value that takes place in production. This is the place where the
starting points for improvements can be found. The indirect areas are to be seen as service
providers to production.
25.1 Management at the Shop Floor 329
Fig. 25.1 Support of the Shop floor

processes “on the shop floor” Customer
Management
Shop floor management shows strong process support. Everything works towards
measuring and improving process flows. Managers no longer control the processes by
announcements, but support where there are problems or opportunities for improvement.
Shop floor management sees all hierarchical levels as process supporters for production.
The inverted triangle shows how the hierarchy supports the process to achieve an optimal
customer outcome (◉ Fig. 25.1).
Comparable to the pull principle, production employees call on the next management
level for support when problems arise. Shop floor management communication and process
support take place at the point of value creation, i.e., directly at the processes in production.
If managers do not have metal shavings on the soles of their shoes, if shirts are not sweaty
in summer, or if, as at Porsche, the production managers do not have worn soles, they
cannot have been permanently on the shop floor observing employees and tracking down
errors (Freitag 2004). Indeed, this is how it should be in terms of land shop floor
management. Managers do not sit in their office but are on the production floor and lead
on the spot. They observe processes and solve problems that arise.
The thinking and approach of shop floor management differs from a traditional man-
agement approach away from and next to production. A comparison provides food for
thought for the changed type of leadership at the point of value creation (◉ Table 25.1).
Shop floor management is based on four methodical elements:
• Visual management (▶ Sect. 25.2)

• Communication structure (▶ Sect. 25.3)
• Problem-solving process (▶ Sect. 25.4)
• Standard-based process observation (▶ Sect. 25.5)
The contents of the elements are discussed in more detail in the following chapters. Only
the coherent application and the interlocking of the four elements make shop floor
management an effective management method.
Shop floor management combines the four elements mentioned above into one instru-
ment and brings managers to the place where value is created. The connection is explained
using a production example.
Customers expect good product quality and therefore place various demands on the
production processes. To ensure that the processes run optimally, this requires a clearly
defined procedure supported by standards.
Table 25.1 Comparison of traditional management and shop floor management

Traditional management Shop floor management
Faraway On site
Meetings and mails Go and see
30 minutes presentation Three minutes of management
Intransparency and “silent mails” Clarity and commitment
Read authorization and information overload Transparency and focus
Hierarchy Leading by example
Freak out or shrug your shoulders Listen and offer help
Default and control Coaching and support
Laissez-faire Discipline
Search for culprits Search for solutions
Fire fighting Problem-solving and rule escalation
Make excuses Taking responsibility, owning up to mistakes
Fluctuating processes Sustained reduction of the error rate
IT system Pencil
Action during audit and customer visits Integrated processes in everyday life
Information to be collected Information to be received
“Flop show” management Shop floor management
To meet customer requirements and ensure transparency about production and pro-
cesses, process key figures are recorded and visualized. The right key figures and their
visualization include the element of “visual management”.
The discussion of the key figures and the clarification of deviations are carried out across
all hierarchy levels within the framework of regular meetings in production. These
meetings and their structuring include the element “communication process”.
If key figures deviate from the desired target value, a reaction is required. If, for
example, the quality does not meet customer requirements, a process for problem analysis
and solution is initiated. Possible problem-solving methods include the third element
“problem-solving process”. Problem-solving can lead to the adaptation of standards.
To ensure that the effectiveness of standards is regularly checked, the manager carries
out process observations in production. This involves checking compliance with standards
and reacting in the event of deviations. This element is the “standard-based process
observation”.
Using shop floor management, improvements and problem-solving measures are
secured in a longer term and sustainable way. Without the use of on-site management,
standards are not met, there is frustration among middle managers, and there is a relapse
into old habits. All of this leads to a decline in performance (◉ Fig. 25.2).
25.2 Visual Management 331
With shop floor

management
Performance
Without shop floor

management
Frustration in
Standards Relapse
middle
are not met into old habits
management
Time
Fig. 25.2 Shop floor management ensures sustainable improvements
25.2 Visual Management
The “visual management” element defines how and where which information is visualized.
Visual management includes a shop floor board on which key figures and measures are
visualized transparently.
" Shop Floor Board Information board (also called team board) on which key figures and
topics are visualized quickly and easily. The shop floor board is the central instrument of
shop floor management. It is used to visualize key figures and to track measures. Through
transparency, the management and control of processes as well as decisions made become
comprehensible.
The shop floor board is located in a central place. The positioning of the board in
production determines the location of the meeting. In indirect areas, the shop floor
management is also in use with a board or a panel as a central meeting point.
The structure of the board reflects the topics of the meeting and their sequence. The
structure according to communication topics, key figures, measures and process monitoring
has proven itself. The board must be accessible, and the arrangement and content must be
comprehensible and targeted.
The area of the key figures is structured with corresponding process key figures, which
are in the sphere of influence, according to the SQDCM logic (▶ Sect. 23.1). The key
figures that are in focus, meaningful and decisive for the area are used (◉ Table 25.2). As a
Table 25.2 Possible key figures below the SQDCM key figure logic on a shop floor board
Sefety Quality Delivery Costs Morale
• Instruction • Rework • Delivery time • Tools • Qualification
• Accidents • Failures • Lead time • Maintenance • Presence
• Illness • Scrap • Productivity • Energy • Absence
• Health • Returns • Process time • Material • Assignment
• Ergonomics • Customers • Number of pieces • Stocks • Time accounts
• Prevention • Complaint • Shift schedule • Scap • Proposals
• Order • Results • Production • Income • Successes
• Cleanliness • False booking • Delivery date • Cost report • Feedback
• Audit • Project plan • Current events
rule, these are strongly related to target systems and current issues. The key figures are
recorded and tracked on a short-cycle basis.
Through the visualization of topics and key figures, processes, management and
decisions become transparent and clear. Everyone can see the status of the processes at a
glance. Employees are invited to participate, think and contribute themselves.
The following also applies to the shop floor board: less is more. If a key figure is no
longer in focus, it no longer needs to be followed up. This would be an unnecessary over-
information. 5S is also appropriate on the shop floor board from time to time.
The high transparency supports the implementation of lean and improvements. Trans-
parency allows deviations to be detected more quickly and causes of problems to be
identified more easily. For example, in ◉ Fig. 25.3 a point is missing on the left side.
Which dot is missing? In which of the two illustrations in ◉ Fig. 25.3 is the answer more
obvious and why?
The operation of a shop floor board is done with simple means. Colored markers,
magnets and wipeable pens are used. Simplicity is required and so many markings and
notes are handwritten. This allows faster recording. No IT is needed on the shop floor and
no printouts need to be made. Simple tally sheets are sufficient for many entries.
The illustration of a tachometer with adjustable needle (◉ Fig. 25.4) supports the visual
character and comparability. Such representations are used for quality, utilization and
machine parameters or states. Deviations are recognized immediately, and decisions can
be made directly.
Example
The company fischerwerke visualises the quality costs through different photos of
vehicles. Depending on the level of costs, the picture of a corresponding vehicle is
visualized on the shop floor board. The vehicles range from lawn mowers (low costs) to
small cars (medium costs) to luxury cars (high costs). This type of presentation sharpens
the understanding and feeling among employees and managers for the value of the costs
spent when they see the corresponding vehicle photo. ◄
25.2 Visual Management 333
Fig. 25.3 Difference between unclarity (left) and transparency (right)
Fig. 25.4 Tachometer for

visualizing the self-reflected
workload of administrative staff
on the shop floor board
Capacity utilization
speedometer
Transparency creates commitment. Topics are clearly addressed. Key figures are uni-
formly comprehensible. Within the framework of shop floor management, measures are
derived from the topics and responsibilities are agreed and clear. Misunderstandings, as
they occur in non-direct communication or in meetings, are reduced.
The mere fact that a manager considers an issue important and addresses it via the shop
floor board usually has a positive effect on the key figure. If safety, order or working time
overruns are on the board, the importance of these topics is addressed.
It is recommended to work with color logics. Deviations become visible at a glance. Key
figures that lie outside a planned range can be marked with a traffic light logic and the
colors red and green. Yellow should not be used, as the delimitation is not clear. If
deviations occur due to exceeding or falling below target values, action must be taken
and escalated if necessary. This requires a problem-solving culture rather than a failure
culture. A red status is not a bad thing because it allows for improvement. Need for
harmony indicates green lights. This does not lead to optimization or improvement in
metrics, it leads to stagnation. Red traffic lights create conflict, but ultimately lead to an
improvement in processes and key figures.
It happens that departments have all subject areas in the green zone. Provided that this is
not due to a deliberate whitewash or intentional concealment, the target values can be
adjusted to a better level. This results in a new target state to strive for. If everything is
permanently in the green, this is not conducive. The racing driver Sir Sterling Moss made a
fitting statement in this regard: “If everything is under control, you are just not driving fast
enough.”
But not only critical topics, errors and problems are to be visualized in shop floor
management. Successes can also be made visible to everyone with sticky notes, for
example. This positive element also serves as motivation and is just as important as talking
about problems.
25.3 Communication Structure
The central element of shop floor management is communication within the divisions and
between the hierarchy levels. A uniform, standardized structure with coordinated and
synchronized time windows is essential for an efficient daily routine. By parallelizing
schedules and short-cycle meetings, unnecessary meeting time is saved. Fixed time slots
and a standardized daily schedule make processes reliable. Time is available for preparing
meetings and entering key figures on the shop floor boards. Decoupling meetings allows
for good preparation and follow-up as well as time for ways between meetings.
People are at the centre of activities in lean. Thus, the flow of information and dialogue
in both directions are important and appreciative. Information flows bottom-up and
top-down. In the first meetings of a day within the framework of shop floor management,
this information is passed on from management to the employees in production. In a later
meeting, the key figures and information from production are aggregated upwards via the
cascade and passed on to management. Thus, information and data keep going back and
forth in short cycles. Through the hierarchy, they are aggregated and summarized. Issues
can be prioritized, escalated, and decided (◉ Fig. 25.5). The whole day follows a structured
and coordinated process (Peters 2009, p. 84).
Shop floor management meetings take place directly at the boards. The participants are
assembled on a cross-functional basis so that all important departments, such as production,
logistics, quality and maintenance, are represented when problems arise. Depending on the
area, sales, planning and other involved departments also participate. Depending on the
organization, the shift handover can also take place in the meeting. This allows information
to be communicated across shifts.
Compared to the classic meeting, the meeting takes place with a shorter time approach
and standing. The agenda is fixed, and the participation and roles of the participants are
clearly defined. Actions are recorded in lists on the board. The minutes are therefore
directly visible on the shop floor board. A moderator who guides through the meetings is
25.4 Problem-solving Process 335
management
KPI
Plant
9:00
...
Status and Information
Manager
escalation and decision

KPI KPI
8:00 10:00
Foreman
7:00 KPI KPI KPI ... ... 11:00
Fig. 25.5 Shop floor management cascade with exemplary times
useful so that all participants can concentrate on their topics. A clock with a colored time
division analogous to the topics to be presented supports the adherence to the schedule in
visual form.
Direct communication, rather than communicating by e-mail or phone, speeds up the
resolution of discrepancies and issues. The exchange and the topics become more binding.
The tasks change from “information to be collected” on the part of the manager to
“information to be received” from the participants.
A shop floor management meeting cannot be copied, it evolves and becomes embedded
in the culture. A thumbs up or metric can be used to provide feedback on the progress of the
meeting that took place. Sharing the feedback and asking questions about deviations will
also further improve shop floor management. Companies and divisions can find their own
ways to do this. The continuous living of shop floor management creates sustainability in
the processes and culture.
Example
At the LEGO company, long-term accident-free production is celebrated with a collec-
tive and loud “Hey” during the daily shop floor management meeting. ◄
25.4 Problem-solving Process
There is the following saying by an unidentified author: “The mark of a champion is not to
make no mistakes. The mark of a professional is to be able to handle more mistakes
constructively than others.”
The problem-solving process is similar to the improvement process. An analysis of the
current state takes place. A target comparison is carried out to find out what the actual state
should be. The problem-solving process supports, just like an improvement, the way to the
target state with a measure.
Shop floor management primarily serves to identify emerging problems through key
figures. The problem-solving process is integrated into shop floor management with the
participation of all managers and employees. The problem-solving process is carried out
direct on the spot.
If errors and problems occur in processes, a quality alarm is triggered via the Jidoka
principle. An Andon lights up and a supporter helps (▶ Sect. 9.2). An immediate action is
taken to prevent further damage and errors and to maintain the continuity of the process.
The occurrence of the error is detected on a short-cycle basis as part of shop floor
management and is reflected in the key figures on the shop floor board. Quick problem
detection and reaction are important. The problem-solving process is triggered.
For good problem-solving skills, the problem-solving process and escalation must be
mastered. Included in the problem-solving process is the deeper analysis of the cause of the
problem. If the problem-solving process is properly gone through and the real cause is
found and eliminated, the process will improve by sustainable fault elimination. Some
Japanese are so skilled at the process that once mistakes are made, they never happen again.
In Europe, instead of root cause analysis, there is often only symptom treatment. The result
is merely actionism, so-called “fire fighting”.
Albert Einstein once said, “If I were given an hour to solve a problem, I would spend
55 minutes analyzing the problem and five minutes solving it.” In problem-solving, it is
elementary to find out the real cause of a problem. Only then is sustainable problem-solving
possible. If only symptoms are treated instead of fixing the root cause of a problem, it will
recur again and again, or the action will become an expensive ongoing task. Many
measures taken make sense as an immediate measure and are sometimes absolutely
necessary (e.g., for safety-relevant aspects), but do not eliminate the actual sources of the
problem.
Example
Many examples exist of a root cause solution that is not thorough and sustainable. An
obvious symptom solution would be the bucket under a dripping ceiling so that there is
no longer a puddle.
A real-life example is a street sweeper that drives all day through a production plant
to clean the road from soil pollution. This pollution is caused by trucks contaminated
with soil, which drive away the soil from an excavation pit across the road. Not
100 meters further on there is another construction site with equally dirty construction
vehicles. But the public road is not polluted there. A mobile cleaning system has been
set up for the trucks, which cleans the undercarriages before the trucks drive onto the
road. The cause of the pollution is eliminated instead of costly removal of the pollution
from the road. Such tire washing systems are common in construction operations (◉
Fig. 25.6). ◄
Fig. 25.6 Stationary truck tyre washing system
An equally ineffective but regularly occurring problem solution is to be the measure of

instructing or briefing employees. Employees should, for example, no longer make
mistakes or behave more safely as a result of information. Symptom control is as varied
as the problems that occur. However, communication and instruction are not sustainable
and are short-lived. The process must be secured in such a way that every employee can
carry out his or her work without instruction.
Example
Compared to lists of measures, PCS lists enable the search for causes to be tackled. The
representation corresponds to a table with three columns. “PCS” stands for the headings
of the table: Problem, cause and solution. The list takes the intermediate step of finding
the cause before hastily implementing wrong and ineffective solutions. ◄
Depending on the difficulty of the problem, the cause must be identified via different
possibilities. For identifying the cause of simpler problems, the 5W method, asking why
five times, is started. If this method reaches its limits, the structured problem-solving
process is carried out. Most problems can be solved with this method. Complex issues
that have to do with measured values, settings on machines, electronic components and the
like are analyzed with statistical tools. This approach is called Six Sigma.
If it is unclear how and with which method to start, the simplest method is used to begin
with and gradually work through the problem-solving processes. The three methods are
presented in more detail below.
Kostka (2016, p. 129 ff.) deals in detail with the methods of problem-solving.
5W: Five Times Why?

For simple problems, the 5W method is suitable.
" 5W Method The abbreviation stands for “five times why?” By asking “why” several
times, the underlying cause of a problem is identified.
The 5 W method is not about multiple questions about who is to blame for a mistake or a
problem, as happens in companies with a poor error culture (▶ Sect. 26.2).
The number five stands as a synonym for a multiple, instead of only once or twice,
questioning. Often, even with five times of questioning, the actual cause has not yet been
found, or the search is still on at the cause level with the employees. The result would be a
measure that can be described, as already mentioned, as employee instruction. It is to be
inquired so long, until the real factual reason for the cause is found.
Example
A machine is no longer running. The cause is investigated using the 5W methodology
(Ohno 1988, p. 17):
• Why did the machine stop? There was an overload, and the fuse blew.
• Why was there an overload? The bearing was not sufficiently lubricated.
• Why was it not lubricated sufficiently? The lubrication pump was not pumping
sufficiently.
• Why was it not pumping sufficiently? The shaft of the pump was worn and rattling.
• Why was the shaft worn out? There was no strainer attached and metal scrap got in.
The cause can be eliminated. The alternative would be to keep replacing the fuse. But
this would not be a sustainable fight against the cause.
A problem in production: The paint of a product is scratched again and again.
• Why is the paint scratched? Because the tool slipped off the screw.
• Why did the tool slip off the screw? Because it was the wrong size.
• Why was it the wrong size? Because it was mixed up.
• Why was it mixed up? Because two tools look the same.
The cause has been found. The measure is to ensure a clear differentiation of the
tools. This can be done, for example, with a coloured marking. The wrong tool can also
be removed from the work area if it is not needed there.
Influencing Influencing Influencing

variable variable variable
Problem
Influence cause
Single cause
Influencing Influencing
variable variable
Cause Effect
Fig. 25.7 Cause-effect diagram (Ishikawa)
The alternative of instructing the employee to be more careful in the future so that he
does not slip or instructing him to use the correct tool in the future would not be a
realistic error prevention in the sense of a problem-solving process. ◄
Structured Problem-solving Process

For more difficult problems, where the cause cannot be found with the 5W method, the
cause-effect diagram helps.
" Cause-effect Diagram It is also called Ishikawa, after the name of its inventor Kaoru
Ishikawa (1915–1989). It is one of the seven quality tools. The cause-effect diagram or
Ishikawa is reminiscent of the shape of a fishbone and gets to the bottom of several different
causes for a problem (◉ Fig. 25.7).
The cause-effect diagram is the visualization of a cause analysis within a problem-

solving process. The starting point is a horizontal arrow pointing to the right, at the top of
which is the problem formulated as concisely as possible. From above and below, oblique
influencing variables are aimed at this arrow as possible main causes. These influencing
variables are usually designated with the basic categories of the “5M”. On these main
arrows again further arrows aim, at which the found causes of influence are entered. It is
possible to search for deeper and deeper individual causes. The procedure for filling in the
cause-effect diagram is brainstorming. The representation is reminiscent of a mind map, in

which, analogous to the 5W methodology, the various individual causes are questioned
until the actual root of the problem is found.
For a comprehensive root cause analysis, the five main arrows are each labeled with a
category of the “5M”.
" 5M They cover different fields in order to open the space for possible causes. The 5M
stand for “manpower”, “machine”, “material”, “method” and “milieu” (in the sense of
“environment”).
Examples of topics related to the five influencing variables are:
• Manpower: Job-related training and instruction, compliance with standards and work
instructions, motivational support
• Machine: Suitable tools, machines and equipment with regular care and maintenance
• Material: Process only faultless and clean material, careful handling of material,
correctly labelled material
• Milieu: Suitable working conditions in terms of pollution, light, ergonomics, noise.
• Method: Worker self-inspection, consistent application of quality control loops, simple
devices to prevent unintentional defects, defect indicators, audits
A sixth “M” is sometimes added to the category “Measurement” or the category
“Management”. If all of these categories are used and “Money” is added, this even
becomes “8M”.
In ◉ Fig. 25.8 the problem “Car does not start” is analyzed as an example with a cause-
effect diagram and the 5M.
Complex errors or problems are often difficult to understand. The path to a solution
therefore lies in a structured approach and procedure. The standardized problem-solving
process exists for solving complex and constantly recurring problems.
The cause-effect diagram or Ishikawa is part of the 8D report. The 8D report goes
through eight process steps (eight disciplines) and documents them in a structured form on
a form sheet in landscape format of the size DIN A3. This form is also called the “A3
problem-solving sheet” (◉ Fig. 25.9).
The use of the DIN A3 paper format in landscape format resulted at Toyota from the
influence of the Romanian-American industrial engineer Joseph M. Juran. Topics and
reports should be presented on one sheet at most. This forces concentration on the
essentials. The A3 format corresponded to the maximum size, which could still be sent
via a fax machine (Brunner 2014, p. 113). The use of the A3 format with the presentation of
facts, strategies and status reports continued in many other topics (Sobek and Smalley
2008).
The A3 problem-solving sheet contains a structured sequence of questions. These
support systematic problem-solving and thus the identification of the actual cause of the
problem:
Milieu Manpower Machine
defective
No driver’s
Distraction
by music
Less water
Fuse
Car not in
license
garage
Defective
Old
insulation
Starting process
Garage gate
not correct Battery empty
defective
Too low Wrong key Ignition cable
temperature loose Car does
not start
Starter motor not working Automatic transmission:
not on “P” or “N”
No gasoline
Error in manual
No money
fuel gauge
Defective
Forgot to refuel
Material Method
Fig. 25.8 Example of a cause-effect diagram (Ishikawa)
1. Problem identification: Clear description of the perception of the problem and the
associated consequences
2. Detailed problem description: Clarification and elucidation of the problem, collection of
all relevant information, detailed description of the problem, definition of the problem
boundaries, the goal is a common understanding of the problem
3. Problem area/location: Identification of the location of the problem occurrence, as a
precise and detailed description as possible of the location where the effect of the fault or
problem is detected
4. Immediate action: Prevention of the spread of the acute problem through short-term
measures
5. Cause-effect diagram: Identification of the possible causes
6. Cause analysis: Review of the identified root causes and determination of the actual
cause
7. Countermeasures: Elimination of the actual cause by concrete measures, documentation
in the list of measures
8. Follow-up and knowledge transfer: Implementation of follow-up activities, implemen-
tation of identified actions, follow-up of effectiveness
342
Problem identification
Client Responsible Supervisor No.
Date
Cause analysis
5x Why?
Detailed problem description No. How checked? Result Why?
Answer:
Why?
Answer:
Why?
Problem area/location Answer:
Why?
Answer:
Why?
Answer:
Immediate action Direct cause Actual cause
What Who When Status Effectiveness
Countermeasures
What Who When Status Effectiveness
25
Cause-effect diagram
Follow-up and knowledge transfer
Fig. 25.9 A3 problem-solving sheet

Shop Floor Management
The A3 problem-solving sheet documents the step-by-step processing of the problem as

a knowledge store. It is visualized and managed on the shop floor board. The criteria for
triggering and using an A3 problem-solving sheet are defined. The processing takes place
with various process participants on site on the shop floor.
A different account, more in-depth explanations and an example are shown by Liker and
Meier (2006, S. 352 ff.).
Six Sigma
The Six Sigma methodology is used for complex and difficult problems, which usually
involve several influencing variables and for which corresponding data is available.
" Six Sigma Methodologically, Six Sigma is an effort to measure quality with the help of
key figures. Mathematically, the Greek letter “sigma” represents the standard deviation of a
population. Sigma is an indicator for deviations from the mean.
Example
A quality of 99% corresponds to “only” 2.8 sigma.
• 1 sigma contain 68.26% and correspond to 691,462 ppm

• 4 sigma contain 99.9937% and correspond to 6210 ppm
• 5 sigma contain 99.999943% and correspond to 233 ppm
• 6 sigma contain 99.9999998% and correspond to 3.4 ppm
In other words, at 3.4 ppm, a weight deviation of 3.4 grams is detected for a total
weight of one ton. ◄
Low error rates are particularly important for low tolerances, such as in processes in the
chemical industry or electronic components. Processes with high safety relevance are
processes in the Six Sigma range (◉ Fig. 25.10). On the way to production with a zero-
defect target, there is no way around Six Sigma. The procedure is structured according to
the “DMAIC” phases. DMAIC stands for the first letters of the five phases: Define,
Measure, Analyze, Improve and Control.
Example
If a smartphone is assembled from 100 components and each of these components has
been produced according to a Six Sigma process with a defect rate of 3.4 ppm, a
problem arises. The defect rate for the smartphone is 100 times 3.4 ppm. This results
in 340 ppm and means one defective device per 2940 smartphones. This value does not
correspond to quality in the Six Sigma sense. To achieve a Six Sigma level of quality for
Parts per million 100 000

Medical prescriptions Restaurant bills
Payroll processing
10 000
Airport packing management
1 000
100
General flights
10
Domestic flights
1 2 3 4 5 6
Sigma process scale
Fig. 25.10 Comparison of processes on a sigma process scale
a smartphone produced, each component supplier must have a defect rate of only one
hundredth of 3.4 ppm, which would be 0.034 ppm for the components.
Large companies in the electronics industry have been using the Six Sigma method-
ology for quality optimization for some time. These include Motorola, Texas
Instruments, IBM, ABB, Ericsson, General Electric and Siemens. ◄
The subject area of Six Sigma is very extensive. Therefore, reference is made here to the
relevant literature on Six Sigma and Lean Six Sigma (Bornhöft and Coners 2012).
25.5 Standard-based Process Observation
To achieve stable processes, standards are checked during a tour of production. These tours
are used for standards-based process observation and are called “genba walk”. This is a task
of all managers, because only “the eye of the farmer makes the cow fat” (Henzler 2005). A
basic characteristic of process observation is to carry it out regularly and at high frequency
to ensure continuity.
In standards-based process observation, the standards are regularly observed and
checked for compliance or deviations. The standards are checked by “cycle checks”.
This involves a visual check by comparing the process with the standard worksheet on
site. In the case of cyclical processes, the procedure is reminiscent of the analysis using the
25.5 Standard-based Process Observation 345
chalk circle method (▶ Sect. 3.7). The basic question in the approach is: How can the
processes be optimized?
" Cycle Check Several cycles of a process are observed one after the other. In the “five-
cycle check”, five process cycles are observed in succession and compared with the current
standard. In case of deviations, an analysis and discussion take place. If necessary,
measures are derived.
Process observation serves on the one hand to ensure compliance with standards, but
also to react in the event of deviations. Deviations from the standard are scrutinized. Waste,
problems, errors and fields of action in ergonomics are identified. Measures are derived.
At the same time, the implementation serves to prevent problems. Deviations from
standards are questioned, as there is usually a reason for them. In case of deviations,
necessary changes in the standard and, if necessary, new improvements can be identified.
Thus, process observation stimulates Kaizen and the further continuous improvement
process.
Standards-based process observation is the ideal moment for managers to understand
processes, demonstrate their commitment, promote the production system, and give recog-
nition for correct and desirable behavior. The expectation of compliance with standards can
be demanded.
If the standards-based process observation is cascaded across all hierarchy levels, this is
called a “layered process audit” (LPA). In this process, the respective manager checks the
process of his or her employees. This is done across the entire hierarchy, from the employee
to the foreman to the team and the department. Through this audit process, the standards
and their observation are ensured throughout the company. In case of deviations, a reaction
is required (▶ Sect. 10.5).
A supporting standard for performing regular routines is the kamishibai, which is more
commonly known as a “T-card”. A plug-in card in the shape of a “T” indicates the standard
to be performed. The card is inserted into a card holder of a planning board in such a way
that only the transverse head of the card is visible (see ◉ Fig. 7.4 in ▶ Sect. 7.2). One side of
the card shows the open activity or process observation. This side is marked in red. After
the activity has been carried out, the card is turned over and the green back side is put into
the card holder of the planning board. It can be seen immediately which activities have
been carried out and which are still open. The execution of all necessary activities is
secured. At the same time, unnecessary, multiple execution of an activity is avoided if it has
already been carried out.
The Following Questions Must be Answered in the Topic Area of Shop Floor
Management
• Are all managers on the “shop floor” every day?

• Do managers help employees solve problems on a day-to-day basis?
• Are tasks and roles defined and known in the shop floor management meeting?
• Are the right participants involved in the shop floor management meeting?
• How is communication done? How does information flow quickly to the employees
and back?
• Is there a coordinated and structured meeting plan?
• Are synchronized time slots available for the cascaded meetings?
• Does the meeting last no longer than 25 minutes?
• Do short meetings take place regularly in production?
• Does shop floor management take place daily in production and weekly in
administration?
• Is information aggregated and shared in a timely manner?
• Are operational topics and problem solutions discussed directly in production?
• Are other meetings away from production or away from value-added processes kept to a
minimum?
• Are the key figures on the shop floor board up-to-date and maintained?
• Are the right process metrics in place?
• Are the trigger reason and the path for escalations defined and known?
• What is done when all ratios are longer in the “green zone” or “on target”?
• Is the standards-based process observation carried out regularly by managers?
The Following Questions Address the Issue of the Problem-solving Process in More
Detail
• Does problem-solving search for the real cause?

• Are there immediate measures when problems occur?
• Is there a long-term solution to the problem that goes beyond an immediate measure?
• Are measures along the lines of “employees have been informed, instructed or taught”
avoided?
• Do managers assist in finding causes through questioning techniques?
25.7 Summary 347
25.7 Summary
Summary on the Topic of Shop Floor Management

• Shop floor management (genchi gembutsu) is called and means “leadership at the
point of value creation”. The idea is to go to the source of what is happening to
research facts at the process location. Shop floor management stands for the under-
standing of managers to sustainably and consistently improve value creation along
production processes by penetrating the problems on site themselves.
• The goals are to secure improvements and a fast and targeted flow of information. To
this end, the managers visualize their fields of action, priorities and implementation
progress by means of key figures on site. They are active participants in the
improvement process and promote the quality and stabilization of processes through
optimized standards.
• Shop floor management is based on four methodical elements.
• Visual management defines how and where which information is visualized.
• The communication structure defines the framework conditions for communication
within the areas and between the hierarchy levels.
• The problem-solving process is used to identify emerging problems and solve them.
• Within the framework of standards-based process observation, standards are regu-
larly observed and compliance with them is checked.
• The shop floor board is the central instrument of shop floor management. It is
structured and contains communication topics, key figures, measures and process
monitoring. However, shop floor management does not only consist of the shop floor
boards.
• Depending on the problem, different problem-solving methods are used. Possible
methods are the 5W method, the cause-effect diagram and the structured problem-
solving process as well as the Six Sigma methodology. The goal is to find and solve
the exact causes of the problem. ◄
Questions
• What are typical examples where actions are taken that only address the symptoms of
failure and not the actual causes?
• How does genba relate to shop floor management?
• How does shop floor management differ from traditional leadership?
• How can the four methodical elements of shop floor management be described?
• How is the shop floor board characterized?
• How does a shop floor management meeting work?
• Which methods of problem-solving are distinguished?
• What are the questions when completing the A3 problem-solving sheet to identify the
actual cause of the problem?
• Which step is the last in the A3 problem-solving sheet process? Why is it so

important?
• For which deviations is Six Sigma an indicator?
• What does “DMAIC” stand for?
References
Bornhöft F, Coners A (2012) Prozessoptimierung mit Lean Six Sigma. In: Becker J, Kugeler M,
Rosemann M (eds) Prozessmanagement – Ein Leitfaden zur prozessorientierten
Organisationsgestaltung, 7th edn. Springer Gabler, Heidelberg, pp 485–514
Brunner FJ (2014) Japanische Erfolgskonzepte – KAIZEN, KVP, lean production management, total
productive maintenance, shopfloor management, Toyota Production System, GD3 - lean devel-
opment, 3rd edn. Hanser, Munich
Henzler HA (2005) Das Auge des Bauern macht die Kühe fett: Ein Plädoyer für Verantwortung und
echtes Unternehmertum. Hanser, Munich
Liker JK, Meier D (2006) The Toyota way Fieldbook, 1st edn. McGraw-Hill, New York
Ohno T (1988) Toyota production system: beyond large-scale production. CRC, Boka Raton, FL
Peters R (2009) Shopfloor Management – Führen am Ort der Wertschöpfung. LOG_X, Stuttgart
Sobek DK, Smalley A (2008) Understanding A3 thinking: a critical component of Toyota’s PDCA
management system. Taylor & Francis, New York
Leadership and Culture
26
The grass doesn’t grow faster when you pull on it.

African proverb
Overview
Lean and leadership are closely intertwined. Both topics have an impact on culture.
Properly applied, lean acts as an organizational development that can deal positively
with mistakes and promotes learning organizations. In order to set up a company
holistically in the sense of lean, a comprehensive transformation is required.
Knalsch GmbH: Five Times “Who’s to Blame?”

There was a failure in the production. Kai Lupfer is on his way with forewoman
Laura Schmidt. They have started a problem-solving process and come to foreman
Erhard in the press area.
After Schmidt explains the problem to her colleague, he says, “I’ll ask who did
that in a minute.”
Schmidt brakes, “No, not ‘who?’ ‘Why?’ is the question. It’s not who did it, it’s
what caused it. To do that, you use the ‘5W’ method.”
(continued)

https://doi.org/10.1007/978-3-658-36087-0_26
350 26 Leadership and Culture
Hubert Erhard says, “I say, I ask five times who it was and then we have the one
who made the mistake... No, of course that was not meant seriously. Obviously, with
‘five times why’ we look for the cause of the problem. We want to learn from the
mistakes, don’t we?”
Kai Lupfer adds, “Exactly, we live the failure culture.”
Laura Schmidt laughs, “Or positively denotes a learning culture.”
26.1 Lean Leadership
The lean philosophy combines visible process excellence with invisible leadership excel-
lence. The nature of people management is a key element in the joint implementation of
lean. The focus on the kaizen philosophy (▶ Sect. 11.1) is a measure against political
actions in companies.
While lean production follows the analogy of rowing in an aft rowingboat, with only the
manager keeping an eye on the goal and setting the pace for the pull in the quiet river,
today’s waters are more agile and wild. This is where the leadership concept is coming up,
which puts people and their competencies at the center. Like rafting, in a fast and agile
environment, everyone shares responsibility for achieving goals. This changes the focus
from the topics and tasks, as is the case with the term management, to the topic of
leadership (◉ Table 26.1).
Leadership means appreciation and appreciation. The central concepts are “people”,
“purpose”, “performance” and “development” (Best and Hurtz 2014, p. 75). Managers
hand over responsibility to employees in the context of lean leadership. They are involved
and can, may and should shape the processes. Instead of prescribing solutions or answers,
they lead by asking questions, in the sense of coaching. The improvement kata (▶ Sect.
11.4) can be used to start the right experiments for continuous improvement.
The cooperation of the manager with the employees is carried out on site in production
and corresponds to a mentor-mentee relationship. In the collaboration, the mentor guides
the mentee, who reports directly to him, and assists him with the kaizen processes. The
approach is reminiscent of learning-by-doing. This requires an experienced and guiding
leader. The supervisor is the sensei, the master or the teacher. The mentor does not provide
solutions. The search for solutions is the task of the mentee. It is through the independent
gathering of experience that the learning process takes place. Skillful, Socratic questioning
guides the search for solutions. Socratic questioning should stimulate philosophizing and
not prescribe solutions. Systemic questions, which allow a meta-level view of the pro-
cesses, also support the mentee’s self-learning process and insights.
The learning process is not random but occurs according to a routine once the mentor
has identified a standard deviation, for example. Then the mentor asks the mentee to
observe the problem and develop appropriate countermeasures. The mentee develops a
26.1 Lean Leadership 351
Table 26.1 Comparison of traditional leadership with lean leadership

Traditional leadership Lean leadership
Command, control, coordinate Encourage, challenge, give feedback
Instruct and teach Coaching and enabling
Rowing Rafting
People are “done” Tasks are done
proposed solution. The mentor usually criticizes the first proposed solution and asks the
mentee to improve his proposal. This cycle continues until an optimal solution has been
developed. The PDCA cycle is run through several times (see ▶ Sect. 11.3). The mentor
monitors the progress against the plan and supports with further questions in case of difficulties.
Once a solution has been found, the mentee presents the improvement and his learning.
The mentee is responsible for the planning and implementation of the solution search,
the mentor is responsible for the results. The division of responsibility for the implementa-
tion and the results creates a strong connection between the two people.
Through mentoring, the manager indirectly focuses on improving and problem-solving
the processes. In dealing with employees, leading in the sense of lean leadership means
encouraging and challenging employees. This also includes permanent and mutual feedback.
Liker and Trachilis (2016, p. 135) depicted the lean leadership diamond with four
dimensions (◉ Fig. 26.1). The four dimensions show the holistic task from self-
development to vision and goals. Within the dimensions, the familiar topic areas of lean
can be found (◉ Table 26.2).
In addition to customer orientation, employee orientation plays a role because
employees are closer to the customer than managers. In essence, everyone must be aware
that he or she can always get better and must imagine this better state as a vision.
In VDI Guideline 2870 Part 1 on lean production systems, holism is characterized by a
cultural change among employees at all levels (VDI 2012, p. 2 f.). It is about attitude,
mindset and behaviour.
The habits and behaviour of the workforce are up to management and leadership. What
is needed is a lot of empathy so that change is not perceived as coercion. Values that are
rooted in the Toyota organization are listed by Shibata and Kaneda (2015, p. 32):
• Independent (joint) thinking

• People’s ideas are limitless
• Nothing is impossible
Leaders are not allowed to take themselves out or put themselves above others.
Everyone is on the same level. Thus, the supervisor also has to participate, this leads to
acceptance. Leaders must act as role models in a lean enterprise (Weiß et al. 2015, p. 269).
Thinking and acting as a lean leader has to do with one’s own attitude and attitude towards
people (▶ Chap. 27) and lean. Attitude to the production system essentially comes from
intrinsic motivation. This is shaped, among other things, by the environment that embodies
1. Commitment to self-development
Values
People
4. Visions and goals Challenge 2. Coaching and development
Respect
Team
3. Daily improvement
Fig. 26.1 Lean leadership diamond (adapted from Liker and Trachilis 2016, p. 135)
Table 26.2 Allocation of lean topics to the four dimensions of the lean leadership diamond
Commitment to self- Daily Visions and
development Coaching and development improvement goals
• Respect • PDCA • Improvement • Vision
• Leader • Mentor mentee kata • North star
• PDCA learning • Coaching • Agile • Hoshin kanri
• Become champion • Leading through questions management • Crisis
• Learning organization • Coaching kata • Transparency • Organization
• Become a Lean Leader • Leading on the shop floor • Shop floor • Culture
• Communication management • Philosophy
• Turning those affected into • Standardized • Change
participants work management
• Key figures
• Problem-solving
the corporate culture. The positive attitude towards a production system and the living of its
contents by managers and employees are the basis for a well-functioning production system
on the levels of strategy, process and culture.
The culture at Toyota lives the values of respect, partnership, mutual trust and continu-
ous improvement (Liker and Hoseus 2008, p. 60 f.). Lean is a holistic task for managers:
“Leaders must learn to see deeply” (quote of Toyota).
That lean leadership is not the end of leadership levels is shown in ▶ Sect. 27.4.
26.2 Failure Culture: Learning Culture
Curt Goetz (Bad Ditzenbach 1976, p. 3) states: “People who work a lot make mistakes.
People who work less make fewer mistakes. There are supposed to be people who don’t
make any mistakes at all...” And Hartmann (2008, p. 84) establishes a golden rule: “90%
are management failures and only 10% are human failures!”
26.2 Failure Culture: Learning Culture 353
Mistakes happen. Measures must be taken to solve the problem in a sustainable way (▶
Sect. 25.4). When thinking in terms of processes, mistakes are seen as opportunities for
improvement. When employees claim that there are no problems, a well-known saying of
Toyota managers is: “No problems are a problem”.
A positive failure culture means solutions instead of looking for culprits. This way of
thinking looks for the blame in the process, in the standards, visualizations or
qualifications. Toyota, for example, immediately supports its suppliers technically and
financially when problems arise. They do not look for the guilty party, but always for a
solution (Köhler 2006).
The appropriate corporate culture is usually referred to as “failure culture”. The term can
be irritating, so “positive failure culture” is a better term. Mistakes are viewed positively
and are seen as an opportunity for further improvement. The first occurrence of a failure is
considered a volatility mistake. Only when the same failure occurs repeatedly is it really a
failure. This is to be avoided. Learning can be done from mistakes that have occurred once.
This is actually how the concept of learning culture comes about.
Without an understanding of the learning culture, a change for the better (kaizen) and
thus an improvement is impossible. Reflection on mistakes and also on oneself, is the basic
prerequisite for learning and further development. The Japanese call this “hansei”.
" Hansei Japanese term for a self-reflection. This includes thinking about oneself, self-
examination and self-criticism (Gorecki and Pautsch 2013, p. 75). Through hansei, respon-
sibility is taken and company-wide learning is possible.
Hansei is the basis for learning and a prerequisite for kaizen. Hansei goes so far as to
relentlessly acknowledge one’s own weaknesses (Liker 2021, p. 323 ff.). If mistakes are
blamed on others or denied, there is no chance for improvement. The goal is to optimize
instead of criticizing. It is important to trust in the employees and to imitate learning by
letting the managers consciously let the employees make mistakes. In this context, mistakes
should be renamed “findings of an experiment”. Problems are treasures from which one can
become rich in knowledge. Experimental learning yields insights and is fun. Sustainability
is achieved in learning through role models, a secured environment and fun.
The results of different reactions to mistakes, in different cultures of error perception, is
shown by Hagen (2013, p. 170 ff.) using the example of pilots. The reactions of the
perpetrator to a mistake are fright, embarrassment, fear and shame. This is followed by
either denial or guilty confession. Perceptions and judgments from managers show through
anger and rage. This leads to blame, sanctions or silence and silent resentment. In a culture
of mistake acknowledgement, the mistake is admitted by the employee or addressed by the
manager. The analysis of the cause and the processing result in a gain of knowledge. There
is no bad feeling, but the confidence that the mistake will be avoided in the future.
Example
A negative example based on the incorrect use of a tool: Instead of being used to press in
fastening clips, the tool that was intended to press in the clips, was used as a hammer for
hammering in. The assembly was faster and more effort-saving. This approach deviated
from the standard. The staples were bent by the force of the tool and were no longer
functional during further assembly. The employee was reprimanded. During checks by
the manager, the tool was used as instructed. Upon the manager’s departure from the
station, the hammering sound of hammering could be heard again. The incidence of
errors in rework remained. ◄
Osten (2006) has also examined and processed the topic from an Asian perspective in
his book entitled “The Art of Making Mistakes”.
26.3 Learning Organization
Depending on the orientation of the organizational structure and the management style,
experimentation, learning and optimization are supported. A horizontal organization in
terms of process organization is process-oriented and thus a good prerequisite for further
development of the organization in terms of lean. A hierarchical organizational structure
has a vertical orientation. This is not conducive to a process mindset and focuses only on
local optimizations in individual departments. The difference between vertical and hori-
zontal organization has an influence on the realization of a learning organization. In one
case, implementation is inhibited, while in the other case, further development is made
possible (◉ Table 26.3).
The learning organization should be understood in terms of training, education, and the
accumulation of experience. The following phrase translated from English is said to be
from Taiichi Ohno (Miller 2006): “Education is teaching what you don’t know, and
training is repeated practical practice of what you do know. We don’t just need education,
we need training.”
The company continues to develop through permanent learning. If kaizen functions as a
basis and the willingness to change continues to increase, there is the possibility for a
learning organization. This continuous development of experience and the associated
improvement (Kaizen) is a key competitive advantage as a corporate culture.
Learning means getting out of the comfort zone and into the “learning zone”. The task of
not under- or over-challenging is to be taken on by the mentor or manager. The coaching
kata (Rother 2010) follows this approach and at the same time ensures the empowerment of
the coach or mentor.
In a learning organization, mistakes are allowed (▶ Sect. 26.2). The philosophy of
experimentation and the “try and error” approach must be lived. The feeling of success
during experimentation, the so-called “aha effect”, is necessary for learning. This effect
26.4 Lean Transformation 355
Table 26.3 Comparison of a vertical with a horizontal organization (extension based on Liker and
Trachilis 2016, p. 28)
Vertical organization Horizontal organization
Focus on production and service Focus on processes
provision
Budgets and production starts Purpose
Reach targets Making problems visible
Managers away from work Managers focus on work
Management by “remote control” Shop floor management
Employee ingenuity is used to beat the Employees’ ingenuity is used to improve the system
system
Managers control employees Managers work with their employees to solve
problems that arise
Hierarchy, compartmentalization, Interdisciplinarity and learning
competitiveness
provides the necessary enthusiasm, which leads to the effect that the employees get the
desire for more of it. The intrinsic motivation of problem-solving and further development
increases through the involvement of the employees and the organization of problems.
Successes are transferred by presenting the benefits to other areas. By applying solutions in
other areas, they are carried on through the whole company.
Learning must be learned. Managers have a decisive role to play here, as they must
support learning. This is comparable to the support in shop floor management (◉ Fig. 25.1
in ▶ Sect. 25.1). The managers are the teachers, the company becomes the classroom. At
the point of value creation, experiential learning takes place exactly when it is needed. This
is comparable to the just-in-time principle. A cycle of learning is created. The manager
triggers the learning process in the employee through Socratic questioning. The employee
learns and the manager learns with him and questions again. This takes place throughout
the entire company, so that the organization continues to develop.
Knowledge building is a competitive advantage. If it succeeds in learning permanently
and faster than the competition, the organization takes the leading role. Katsuaki Watanabe
said in 2007 as president of Toyota Motor Coorporation that the learning process is never
complete in terms of the Toyota way (Steward and Raman 2007).
26.4 Lean Transformation
Most entrepreneurial problems arise due to the inability to design or lead a change process.
Implementation barriers and obstacles to the introduction of lean are (supplemented
according von Eckardstein and Seidl 1999, p. 453 ff.):
• Culture
– Extremely change-resistant corporate culture
• Top management
– Lack of support
– Insufficient understanding
– Lack of clear vision
– Poor knowledge and limited understanding of lean
– Disturbances in the relationship with the employee
• Middle management
– Strong opposition and “naysayers”
– Lack of willingness to empower teams
– Role problems
• Employees
– Failure to develop a critical mass of people with lean skills and lean capabilities
– Lack of teamwork
– Limited understanding and problem awareness of the success factors process think-
ing, customer proximity and quality
– Learning unlearned
• Introduction
– Lack of a good implementation organization
– Template-like concept design
– Too high speed
– Ignorance of where to start
• Organization
– Cross-divisional problems due to the inflexibility of large organizations
– Traditional thinking and working structures
– Unstable processes
– Current target agreements, systems and key figures (e.g., work efficiency) hinder
progress
– Lack of resources and infrastructure
Despite clear advantages and the will to introduce lean, companies do not make progress
due to imponderables and emerging difficulties. The implementation barriers are similar for
every introduction or change process and require change management (cf. Kostka 2016, ▶
Chap. 31).
Small steps bring the desired success. Discipline and consistency are of crucial impor-
tance here. If the management level does not focus on the permanent pursuit of improve-
ment, there will be no movement. Lean is not a method enablement program. It is a
company-wide necessity. A training program that is mandated by a board of directors
and is itself uninvolved will fail.
The introduction and implementation of lean can only be achieved through top-down
and bottom-up implementation. By implementing measures in both directions, the “hard
nut” can be cracked like a pincer movement (◉ Fig. 26.2). If one of the levels is missing, no
Management
Build up improvement organization
understanding
(Create) crisis Hoshin kanri
Develop
target state Shop floor management
Management
Hard nut
Shop floor
Trainings KPIs Interlocking

improvement activities
Team &
Problem solving process
hancho
5S and standardized work
Fig. 26.2 Lean implementation as a pincer movement top-down and bottom-up (adapted from Weiß
et al. 2015, p. 371)
implementation power can be realized. Different topics and activities attack the topics of
lean transformation and realize the potentials.
A vertical implementation solution progresses through the levels step by step, from the
individual to the entire company. Lean always starts with the individual. After self-
organization with 5S, elimination of waste in process times and improvement of ergonom-
ics, the second step is collaboration across teams. This is done by means of standardization
and the introduction of rules. This in turn leads to improved quality and customer focus.
The third step is process optimization using the value stream and problem-solving process.
This reduces costs and lead times. The fourth and final step is about controlling with key
figures and shop floor management, which develops ownership and process thinking
among employees.
The global lean transformation starts in a main plant (lighthouse) and spreads to
international locations (transplants). A differentiation with regard to adaptation takes
place here due to the different process levels. Culture, leadership and communication
determine the adaptations. The vision and the goal should be uniform worldwide.
The strategy, the culture and the environment must be suitably aligned for the introduc-
tion of lean and the transformation. If certain conditions are not met, implementation will
not be ideal or will fail (◉ Table 26.4). Further levers are identified by Weiß et al. (2015,
p. 367 ff.).
Realizable potential is the possible potential multiplied by an organization’s capabilities
(Eq. 26.1).
Table 26.4 Prerequisites for lean implementation or lean transformation

Requirements Implementation
Open and honest management • Accepting problems, not blaming
• Transparency and speak in facts and figures
• Clear, open, regular communication
• Role models, backing
Fertile soil and introductory • Willingness and motivation, skills and abilities
pressure • Available resources
• Urgency, crisis, necessity
• Successes
Understanding and awareness • Empowerment, training cascaded, top-down and bottom-
up
• Lean contexts and impact
• Organizational learning
• Performance managementy
Change management • Management, executives and sponsors
• Clear starting point (actual) and target point or vision
(target)
• Implementation plan
• Show the way and communicate
Constituted, holistic approach • Developing a vision and sharing it
• Start with pilot area and expand further
• Develop systems instead of using tools and methods
• Aiming for cultural change
PotentialRealisable ¼ PotentialPossible CapabilitiesOrganization ð26:1Þ
If the company is not capable of transformation and does not have the necessary
prerequisites, then no matter how high the potential, the realizable potential becomes
“zero”.
In addition to the use of change management (▶ Chap. 31), a structured approach is
needed for the introduction. The procedure must be exemplified and applied in pilot areas.
This is followed by transfer to other areas through a broad roll-out. The pilot areas act as
beacons for other areas. Lean means a cultural change and continuous improvement in
everyday life.
Example
Akers (2016) shows the broad roll-out of ideas with his approach of “2 second lean”:
Every employee should improve their process by two seconds every day. This is doable
and yields a large savings by the number of employees and days in a year. The good
examples are presented every morning in an early morning meeting (Akers 2016, p. 55
ff.). ◄
Table 26.5 The three elements of a holistic lean transformation (supplemented on the basis of Drew
et al. 2005, p. 38)
Hardware Software Humanware
Process Strategy Culture
Technical system Management infrastructure Attitude and behavior
Visible Partly visible Invisible
Facilities and resources to Organization, processes and Ways of thinking and acting at
deliver value with minimal systems to influence the all levels of the company,
losses technical system which support the systems and
structures
The way business assets and The formal structures, The way people think, feel and
resources are configured and processes and systems by behave in their workplace,
optimized to create value and which the operational system whether individually or as a
minimize loss is managed to achieve the group
business objectives.
• Principles and methods • Organizational structure • Lean thinking
• Value stream with team sizes and roles • Understanding and awareness
• Flow, tact, pull principle • Key figures • Attitude and behaviour
• Flexibility • Continuous improvement • Managerial role
• Standardized processes • Qualification • Respect and discipline
• Small control loops • Failure culture/learning
culture
• Presence on site
• Lean in all areas • Policy deployment • Lean philosophy lived
• Holistic thinking in processes • The common goal is a • Lean leadership
and value streams sustainable company • Qualification and
• Eliminate waste – The customer is the focus empowerment
• Requirements for promotion
and staff development
The serious goal is the “lean enterprise” as a company that is holistically aligned with
lean. Lean usually starts in production and continues from there into the indirect areas. The
application of the methods continues throughout the entire company into all areas. Imple-
mentation takes place at the levels of hardware with processes, software with strategy and
humanware with culture (◉ Table 26.5).
The lean transformation develops step by step analogous to an evolution with the goal of
operational excellence and the lean enterprise. The process can be divided into four steps (◉
Table 26.6).
Various parties benefit from lean introduction and implementation (◉ Table 26.7).
In a nutshell, lean means a simple, safe and better product as well as a happy and
engaged workforce. Lean is simple, not complicated. Implementation should not be started
all at once but should be done step by step. Lean needs to be started simply and followed up
in a very disciplined way.
Table 26.6 Four steps in the transformation process

Stage Approach Focus Drivers
Child Point-Kaizen, Workshops Methods External consultant
Teen Audit, Best Practice, Training Production system Top Management Push
Adult Shop floor management Implementation Top Management Pull
Master (Sensei) Learning organization The Toyota way Organization pull
Table 26.7 Profiteers of a lean implementation

Customers Company Employees
• Flexible adaptation to customer • Development of • Improved working
requirements (JIT, fluctuating demand, sustainable competitive conditions
etc.) advantages • Assumption of
• Product quality • Flexible response to responsibility
changing conditions • Long-term job security
• Continuous through competitiveness
implementation of new
production concepts
The Following Questions Address the Topic of Leadership and Culture
• Does the company act as a learning organization?

• Is the reaction to failures positive?
• Is there a problem-solving culture?
• Do managers promote learning?
• How is learning from activities?
• How does knowledge exchange take place?
• How is the lean culture shaped?
• Is the lean philosophy exemplified?
• Do all managers act as role models?
• Do leaders act as mentors to learning mentees?
• Are Socratic questions being asked?
• Is lean only an alibi or is lean anchored in thinking and acting as an attitude?
• Are leadership and process understanding connected?
• Do you have the right skills for the job?
• Are target states clear and communicated to employees?
• Do target states not trigger “anxiety states”?
• Are employees coached to optimize processes without being given solutions?
• Is the culture open to evolution and change?
• Do top management and executives have sufficient lean understanding and awareness?
26.6 Summary 361
• Is management behind the lean implementation?

• Is lean introduced as a philosophy rather than a project?
26.6 Summary
Summary on the Topic of Leadership and Culture

• The way people are led is a key element in implementing lean together. Lean
methods do not work without a lean approach to leadership and culture.
• Habits and behavior of the workforce are up to management and leadership. To reach
everyone, a lot of empathy is necessary so that changes are not perceived as coercion.
• Leadership means appreciation and value enhancement. Central concepts are “peo-
ple”, “meaning”, “performance” and “development”.
• Responsibility is handed over to the employees. Instead of prescribing solutions or
answers, guidance is provided through questions, in the spirit of coaching.
• The cooperation of the manager with the employees is carried out on the shop floor.
• Work is done in a mentor-mentee relationship. Through mentoring, the manager
indirectly focuses on process improvement and problem-solving. Employees are
encouraged and challenged.
• The lean leadership diamond shows the elements with four dimensions: Commitment
to self-development, coaching and development, daily improvement, and vision and
goals.
• A positive failure culture means solutions instead of looking for culprits. The blame
is to be found in the process with the standards, the visualizations or the qualification.
• Only when the same error occurs repeatedly should one speak of a failure. The first
occurrence is considered a mistake.
• A horizontal organization in the sense of process organization is process-oriented and
thus a good prerequisite for further development of the organization in the sense
of lean.
• The company continues to develop through permanent learning.
• The philosophy of experimentation with the “try and error” approach is to be lived.
• Successes are transferred by showing the benefits in other areas.
• The manager triggers the learning process in the employee through Socratic
questioning. The employee learns and the manager learns with him and questions
again. This results in a cycle of joint learning.
• The introduction and implementation of lean can only be achieved through top-down
and bottom-up implementation. This corresponds to a pincer movement, like a
“nutcracker”.
• A serious goal for a company that is holistically aligned with lean is the “lean
enterprise”.
• The three elements of a holistic lean transformation are hardware, software and
humanware. ◄
Questions
• How can lean leadership and traditional leadership be compared?
• How can the approach of the mentor-mentee collaboration be described?
• What is behind the term “hansei”?
• How can a vertical and a horizontal organization be distinguished?
• What circumstances favour the occurrence of problems in the areas of culture, top
management, middle management, employees, introduction and organization?
• In which sequence of steps can lean be implemented?
• What are the requirements for implementing lean?
• The process of lean transformation can be divided into four stages. What are the
focus, approach and drivers for these four stages?
References
Bad Ditzenbach (1976) Mitteilungsblatt Gemeinde Bad Ditzenbach - 29.04.1976, Vol. 2, No. 17.
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Best D, Hurtz A (2014) Raus aus der Lean-Falle – Lean erfolgreich zur Gewohnheit machen, 1st edn.
BusinessVillage, Göttingen
Drew J, McCallum B, Roggenhofer S (2005) Unternehmen Lean – Schritte zu einer neuen
Organisation. Campus, Frankfurt
von Eckardstein D, Seidl M (1999) Lean Management. In: von Eckstein D, Kasper H, Mayrhofer W
(Eds) Management: Theorien, Führung, Veränderung. Schäffer-Poeschel, Stuttgart, p 431–459
Gorecki P, Pautsch P (2013) Praxisbuch lean management – Der Weg zur operativen excellence.
Hanser, Munich
Hagen JU (2013) Confronting mistakes - lessons from the aviation industry when dealing with error.
Palgrave Macmillan, London
Hartmann T (2008) Bestände sind böse: Produktion als strategische Waffe – Ein Arbeitsbuch für
Köhler A (2006) Fliegende Autos. WirtschaftsWoche 1-2:36–42
Liker JK (2021) The Toyota way: 14 management principles from the world's greatest manufacturer,
2nd edn. McGraw-Hill Education, New York
Liker JK, Hoseus M (2008) Toyota culture – the heart and soul of the Toyota way. McGraw-Hill,
New York
Miller J (2006) Words of Taiichi Ohno sensei, part 3: the top 8 pearls of wisdom on kaizen. Blog
13.07.2006. https://blog.gembaacademy.com/2006/07/13/words_of_taiichi_ohno_sensei_p_2/.
Accessed 1st Nov 2017
Osten M (2006) Die Kunst, Fehler zu machen, 2nd edn. Shurkamp, Berlin
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Toyota – DNA zur steten Unternehmenserneuerung – Das Toyota-System, 1st edn. Bedburg,
Adept-Media
Steward TA, Raman AP (2007) Lessons from Toyota’s long drive. Harvard Bus Rev 7:74–83
VDI (2012) VDI-Richtlinie 2870 part 1, lean production systems – basic principles, introduction, and
review. Verein Deutscher Ingenieure (Ed). Beuth, Berlin
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lernender Unternehmen, 3rd edn. Schmidt, Berlin
People
27
The only thing you are allowed to be wasteful with is

appreciation.
Following Mario Schmidt
Overview
The entire lean theme revolves around people. People are the central element of every
production system. Sustainable value creation takes place through appreciation. Lean
is appreciation of the employees. If personnel development is coupled with lean,
levers and further potentials arise.
Knalsch GmbH: Adjusting People

“Boss, excuse me?”, Claudia Beck and Kai Lupfer come through the ajar office door.
“We have a problem,” says assistant Claudia Beck.
“Well, let’s solve it with the problem-solving technique,” Alsch says.
“It’s not that simple,” Lupfer interjects. “The employees understood what the
company was up to, but some foremen just don’t go along with it. I overheard a
foreman from the neighbouring area say to an employee on the late shift who had an
idea, ‘You’re not paid to think here, you’re paid to work’.”
(continued)

https://doi.org/10.1007/978-3-658-36087-0_27
366 27 People
Dr. Alsch is surprised, “Oh, this really sounds like a bigger issue. Why doesn’t the
foreman think the new processes are better too?”
Henry Fischer, the works council of Alsch GmbH, comes in through the open
office door: “Dr. Alsch, sorry to barge in like this, but an open door means an open
door. And since Lupfer is also here right now, it’s a perfect fit.”
Alsch greets and says, “Yes, of course, Mr. Fischer, what is it?”
Fischer says, “This new topic, which is now appearing everywhere among us,
gives me no rest: People at the centre. Does this mean that employees stand alone
surrounded by plants, rotates and gets rid of himself? The employee is a tool and
that’s it.”
Alsch replies, “Mr. Fischer, please. For me, people are important. Every employee
at Knalsch GmbH is in the centre of attention. That is what unites us and that is where
we are all together. We adapt the processes to the people, not the other way around.”
“Well, let’s do it,” Fischer says. “Because our foreman aren’t too keen on all that
lean stuff.”
Dr. Alsch says, “Yeah, they kind of bristle, I just heard about that too.”
27.1 Lean and People
Companies that deal with the topic of optimization measure their implementation success
with a wide variety of key figures. How do companies measure the implementation success
of their improvements? The following hierarchy of key figures can be used to identify the
level of lean maturity:
• not (yet)
• via monetary savings
• via quality indicators
• about customer satisfaction
• on employee satisfaction
The more a company measures its successes by employee satisfaction, the more
understanding there is of lean actions and lean thinking in the company.
The enterprise value can be calculated using the following equation focusing on the
employees instead of using business calculations (Eq. 27.1). It has its origins in Toyota.
Within motivation, employees are about the may, the can, and the will. If a factor of the
equation is small or equal to zero, the company value is reduced analogously.
Enterprise value ¼ Number of employees Capabilities Motivation ð27:1Þ
Toyota’s central motto is: “We do not just build cars; we build people” (Becker 2006,
p. 217; Liker and Meier 2007, p. 3). This is also known by the Japanese terms “monozukuri
27.2 People at the Centre 367
wa hitozukuri” - “ making things means making people” (Furukawa-Caspary 2016, p. 43).

For Toyota, its employees are the most valuable asset and capital in its company. This also
explains the idea of safety, which comes first (▶ Sect. 3.3). Developing people expresses
Toyota’s philosophy and vision in the “Toyota Global Vision” (Toyota 2017): “Engaging
the talent and passion of people. The power of our organization comes from the skill and
diversity of our team members and business partners; we solve problems and create new
ideas.” The organization thrives when people’s activity and ingenuity are harnessed (▶
Sect. 26.3). Fujio Cho, the chairman of Toyota in 2007, wrote (Toyota 2007, p. 7), “We
believe that ‘making things’ is about developing people. So we have taken a long-term
approach that aims to cultivate employees.”
Lean implementations are not a redundancy programme. This has already been dealt
with in the topic area of line balancing (▶ Sect. 6.6). Those who lay off personnel have
misused lean and are destroying the concept throughout the company forever. All lean
methods were made for people, not against them. Avoiding muda, in the Japanese sense of
“toil,” takes effort away from people, not eliminates it. The story that baka yoke (idiot-
proof) became poka yoke (error-proof) (▶ Sect. 9.3) shows the prudence and importance of
people in the production system. A lean system is less monotonous, involves less stress and
does not create overwork. All employees are involved and can help shape and improve
their workplace. With the existing creativity, the optimization takes place in the company.
Toyota places people at the centre of technology, management and philosophy. They
form a long-term company value through their learned skills. While machines depreciate
and have a loss of value, people learn and create an increase in value (2021, p. 181 ff.).
Humans are also central to the Toyota Production System (Liker and Trachilis 2016, p. 18).
In other representations of Toyota, the “TPS” is additionally described as the “Thinking
People System”.
Respect for people with the values of respect and teamwork are central elements of the
Toyota way (Liker and Hoseus 2008, p. xxvii ff.). These elements belong to the so-called
Toyota Human Systems Model (Liker and Hoseus 2008, p. 40 ff.). It aims to ensure that
employees are attracted, developed, engaged and inspired. In this view, lean can be
explained with the formula Eq. 27.2.
Lean ¼ Kaizen þ Respect ð27:2Þ
27.2 People at the Centre
“People at the center” is the current phrase to give employees the appropriate importance.
In the environment of Industry 4.0 (▶ Sect. 28.2) with the automation and digitalization of
processes, people must not be relegated to the background. Employees are not a resource.
Employees are people and as such cannot be equated with any other material resource.
368 27 People
Example
Gottlieb Duttweiler coined the guiding principle “People at the center, not capital.”
In a union newspaper, “the people as the centre” was depicted in the form of a
rotating employee surrounded only by machines (IG Metall Executive Board 2011, p. 7;
IG Metall Stuttgart 2015, p. 1).
Oswald Neuberger, professor of organizational psychology, pointed out the discrep-
ancy and titled: “Man as a means. Point” (Neuberger 1990). ◄
Even though everyone seems to agree about people, there are obvious discrepancies and
points of friction.
The works council, as an employee representative, likes to take an opposing position to
lean. This is usually due to management’s interpretation of the term. Basically, works
councils are in harmony with the lean issue. In the understanding of competitiveness, lean
is indispensable and secures jobs (IG Metall Vorstand 2011, p. 41 ff.). Lean is a long-term
issue for the future. It is important to involve employee representatives in the strategic steps
from the beginning. As difficult as this may seem, it is the best decision. Early clarification
creates transparency for everyone. Covering up issues leads to difficulties for both sides, a
loss of trust and ultimately rejection. Lean is not a problem issue; it is an evolutionary step
including training and development for the workforce. Correctly understood, the lean way
of thinking argues in the direction of the workforce of a company and thus also in the sense
of employee representation.
A critical discussion of lean can be found in Howaldt and Minssen (1993) and Hans-
Böckler-Stiftung and Industriegewerkschaft Metall (1992). Regber and Zimmermann
(2007) show that the works council is also part of the company. If the company ceases to
exist because of a crisis, the works council is no longer needed.
Implementing optimizations always means looking for a solution that puts people at the
center. This also means informing in good time what will happen to the employees who
become free. Lack of clarity brings resistance and stagnation to an improvement. The way
forward is to raise awareness among employees and to be transparent.
Glauser (2005, p. 16) uses Deming’s chain reaction to show that lean creates new
workplaces. An improvement in quality generates a reduction in costs (see also ▶ Sect.
23.1). Resources are better used and there is less waste. Cost reduction produces an
increase in productivity. With a better product price and lower costs, new markets are
opened, and higher sales are generated. The resulting livelihood for the company secures
jobs and an increase in sales creates jobs.
Example
The company fischerwerke expresses its employee orientation in a lived mission
statement: “The greatest capital and the most important success factor in our company
are the employees, not plants and buildings!” (Fischer 2017). ◄
27.3 Human Resources Development 369
It is essential to take care of the employees. In the years 1924 to 1932, various studies
were carried out in the Hawthrone factory of the Western Electric Company in Chicago
(Parsons 1974). One was to show that improved lighting conditions led to higher labor
productivity. In the first step, the assumed result occurred. But in a comparison group with
no change in lighting, productivity increased as well. When the lights were turned dimmer,
labor productivity continued to rise. Even in moonlight, output continued to rise. This
effect is known as the Hawthrone effect. It showed that performance increased significantly
as a result of scientists paying attention, not just changing lighting conditions (Gorecki and
Pautsch 2013, p. 73; Kostka 2016, p. 10). Many forms of participation and leadership styles
have their origins in these findings.
27.3 Human Resources Development
The personnel development of employees has a very high priority. Before an employee is
hired on a permanent basis, he or she undergoes basic training for basic skills and
fundamental abilities. Many hours of practice are required at Toyota before an employee
is allowed on the vehicle assembly line. If there are difficulties during the basic training, the
company separates from the employee again. Basic skills training is also the employment
test.
Lean should be seen as an integral part of human resource development. And an
employee promotion and employee development should consider lean as a prerequisite.
This unites culture, process thinking and the leadership thought of a company.
Example
Daimler Truck in Wörth uses the Toyota kata (▶ Sect. 11.4) in connection with
personnel development. High-potential employees who are designated for the level of
foreman are placed in the role of an improvement manager. For each team, they support
the foreman and are responsible for daily improvements and problem-solving using the
kata methodology in the field. The area progresses, the talents are promoted and get to
know the future work environment, experience is gained and there are clear
responsibilities for optimization. ◄
A leader’s job is not limited to results. At Toyota, a leader is also measured by his or her
trustworthiness, the “jinbo”. It is measured how much trust a leader enjoys from his or her
own employees (OJT Solutions 2017, p. 58 ff.). If a manager brings his or her employees
forward, this also benefits him or her.
One element that should not be underestimated is the role model function. It is important
to be able to follow the example of good leaders. The lean methodology of transparency
and visualization (▶ Sect. 25.2) helps here. It should be clear who is considered a role
model and who employees can look to for guidance. Functions such as supporter, logisti-
cian and maintenance staff as well as from worker to plant manager can be identified by
370 27 People
colour-coded shirts, caps or armbands. This must also be brought into the area of high
potentials, because unclear and intransparent personnel development stirs up competition,
disturbs orientation and leads to the end of further development in the sense of the concept
of people development explained here.
Example
In a manufacturing company, the employees are equipped with uniform polo shirts. In
addition to the name, there is also an indication on the shirt to which talent pool
(management, specialist function or lean production system) the employee is assigned.
The career paths are transparent, and everyone can see who can serve as a role model
and how and why someone makes decisions or acts.
Personnel development and promotion decisions become transparent for everyone.
This serves as an orientation. The selected employees can proudly show their appoint-
ment and at the same time must bear and exemplify the necessary responsibility for their
actions. This is also a great responsibility for the managers who make the decisions of an
assignment. ◄
27.4 Sustainable Value Creation Through Appreciation
Introducing and implementing lean requires many suitable peripheral factors. The complex
topic of employee leadership plays a decisive role. It is important to know the reasons why
employees work for a company. Employees want to be paid, of course, but they also want
security and challenges. In addition, there is usually the desire for a job with personal
responsibility, freedom to make decisions and to make a difference for customers. Respon-
sibility and decisions at the work level are shaped by employee management:
• Involve, empower and motivate employees through responsibility

• Promote and develop the skills of employees at all levels
• Use employee resources in a targeted and effective manner
• Use of capacity and knowledge to improve the organization
As a rule, companies have a different environment. The following three-level model
describes the status (◉ Table 27.1). A classification is possible at each level. The better the
characteristics and the environment, the better the lean implementation. The third level is
the ideal.
Empowerment and employee participation as a leadership philosophy mean well-
moderated and moderate employee management. This also includes an appreciative
approach. Employees are empowered to think and act independently. This empowerment
also transfers accountability and motivates intrinsically. It should be noted that empower-
ment does not automatically enable.
Table 27.1 Three-level model of lean implementation according to Bertagnolli (extension based on
Bertagnolli et al. 2017)
Criteria Level 1 Level 2 Level 3
Leadership philosophy Management Leadership Empowerment,
fellowship
Management principle Lead Convey Coaching
Employee responsibility Preset (linear) Support (circular) Individual
responsibility
Logistics management Push Pull One-piece flow
Success strategy and Power, strength, Law, order, success, Humanity,
competencies achievement of integration, network
objectives
Thinking about lean in Tolerance Acceptance Identification
corporate management
Lean dimension Lean tools and Lean management Lean enterprise with
methods a focus on people
Use of the methods Copy Understand Cooperate,
collaborate
Achievement of Routine Evolutionary learning Revolutionary
objectives production developments
Change process Re-structuring Re-orientation Re-modelling,
re-vitalization
Personnel management Release of Insourcing Promotion
personnel
Employee engagement Affected Enabled Involved and
enthusiastic
Implementation strategy Frederick Peter F. Drucker, William Ouchi,
W. Taylor, ca. 1940 ca. 1981 (theory Z)
ca. 1911
Lean implementation Lean alibi Lean strategy Lean philosophy
Anchorage On paper As a department in the In the minds
organization
In this overall context, lived corporate values are fundamental and important. They have
a great influence on the development or stagnation of an organizational development.
Values cannot be ordered. They require a corresponding attitude and daily example.
The Following Questions Are to be Answered in the Topic Area of People
• Do managers conduct their dialogue with employees at eye level?

372 27 People
• Is the interaction between managers and employees respectful and characterized by

mutual respect?
• Is the cooperation in the company characterized by trust?
• Is the health and safety of employees taken care of?
• Do managers encourage and challenge their employees?
• Are employees leaded and promoted in an appreciative and responsible manner?
• Are processes regularly checked on site?
• Is the knowledge of the employees systematically used, for example for optimization
and problem-solving?
• Are employees guided by questions instead of solutions?
• Do target descriptions allow for solution spaces?
• Are goals given instead of solutions?
• In improvement projects, is it already determined at kick-off what will happen with
resources that become free?
• Is the lean philosophy anchored in the thinking and actions of the workforce?
• Are training courses linked to subsequent concrete implementation measures?
• Is the staff being developed to optimise and develop the processes?
• Is it transparent who employees can look to for guidance?
• Are high-potential employees assigned to appropriate roles and tasks?
• Is the personell development process linked to lean?
• Are high potentials recognisable as such and is the selection process transparent?
• Which key figure is used to measure implementations? Is this done via employee
satisfaction?
• Is the company at the stage of a leadership philosophy in the sense of “lean
empowerment”?
27.6 Summary
Summary on the Subject of People

• The company value can be calculated by the equation “company value is number of
employees mulipied with ability multiplied with motivation” instead of by business
calculations. The focus is on the employees. If a factor is small or close to zero, the
enterprise value is reduced analogously.
• Lean is not a staff redundancy program. All lean methods were made for people, not
against them. Respect for people with the values of respect and teamwork are central
elements of the Toyota Human System.
• Employees are people and as such cannot be equated with other material resources.
The implementation of optimizations always means looking for a solution that puts
people at the center. This implies to inform in time what will happen with employees
who become free.
References 373
• The Hawthrone effect shows that employee performance increases significantly with
attention.
• Of course, employees want to be payed, but they also want security and challenges.
• Toyota places a very high priority on employee development. Many hours of practice
are required before the actual work begins.
• An important element is the role model function. There is the possibility to orientate
oneself on good leaders. The lean methodology of transparency and visualization
helps here.
• The only thing that may be wasted, even in lean companies, is appreciation. ◄
Questions
• Why does Toyota put safety first?
• Why does employee representation like to take an opposing position to lean?
• What is the chain of reasoning that lean creates jobs?
• How can the acceptance of lean in the company be increased in general?
• How can the three-step model of lean implementation be described?
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Japan
Toyota (2017) Toyota global vision. Toyota Motor Corporation. http://www.toyota-global.com/
company/vision_philosophy/toyota_global_vision_2020.html. Accessed 1 Oct 2017
Digitization
28
If you digitize a crap process, you have a crap digital process.

Thorsten Dirks
Overview
Lean is the basis for digitalization and for “Industry 4.0”. Waste must be eliminated
before processes are automated and digitalized. Lean is therefore a prerequisite and
basis for further progress. One topic in this area is the digitalization of the shop floor
management board.
Knalsch GmbH: Over-digitization

In her role as head of engineering, Susanne Moos is convinced in the regular early
meeting in production, “Karl, we also have to digitalize our processes. Our
competitors are all further ahead, like us. Our shop floor meeting is a great thing,
but digitally we could save the waste of handwritten entries. We’d have everything
on the screen.”
Assistant Claudia Beck mumbles to herself, “And when the screen is off, the
transparency goes down the drain . . .”.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_28
376 28 Digitization
Susanne Moos doesn’t let anything stop her, “And when it comes to processes, we
would also be much more modern: Digital orders, digital work plans, digital parts
lists and digitized quality data. All smart.”
Alsch thinks out loud, “Well, there’s nothing wrong with a digital transformation.
We could also compare and evaluate the data better when problems arise, but isn’t all
that a bit much and also cost-intensive?”
Claudia Beck adds, “Sounds like a new type of waste, ‘over-digitization’. I
recommend implementing this wisely. It doesn’t make sense everywhere.”
“Yes!” confirms Alsch. “We weigh that and before we digitize our processes, we
should definitely review them for potential waste. Because digitally mapping a bad
process is indeed digitized waste.”
“Agreed, because then that wouldn’t be a competitive advantage,” says Susanne
Moos. “I’ll take care of a process overview and then we’ll talk about it again.”
28.1 Digital Processes
One megatrend is undoubtedly digitalization and the accompanying transformation. The

question arises as to how the topic of lean relates to digitalization.
The topic of automation and digitalization primarily affects administrative areas (▶
Chap. 16) and information flows, such as those prevalent in the supply chain and logistics
(▶ Chap. 21). The advantage of digital automation is that processes no longer have to be
laboriously processed manually or by hand. Search efforts and errors are also avoided. This
relieves people of routine tasks and speeds up processes. In production, digitalization
makes product and production data, individual process flows and work plans, and informa-
tion available more quickly.
The result of lean, which is characterized by standards and little waste in processes,
forms the basis for digitization. Before digitization, it should always be considered whether
the process needs to be digitized at all. Processes should not be digitized unnecessarily and
with a lot of effort. Before processes are transferred to other media, the process flow should
always be analyzed and optimized if necessary. Interfaces must be clear in real processes as
well as in digital processes. The focus on a fast lead time remains important even in the
digital world. This means that lean comes before digitalization in the sequence.
A prerequisite for the digitization of process flows is, as a first step, to eliminate waste
and not to concentrate it in the new technology. The following maxim applies here: “First
eliminate the waste, then automate”. The technology must follow the purpose of lean, to
support. The waste must be eliminated from the processes before they are digitally
implemented.
Quality also remains in focus. Process loops are to be avoided and also possible
influences for errors. For example, poka yoke is used as a plausibility check in information
processes to prevent errors.
28.2 Industry 4.0 377
Digitization can also support processes that were previously associated with unavoid-
able waste. These can be, for example, the manual checking of data or data entry. An
advantage of digital data is also that the data can be accessed from different and multiple
locations at the same time.
Example
For its office supplies and consumables, a company made cards in the sense of kanban.
Since the storage areas for the material are scattered over a greater distance and the cards
still had to be transferred later to an e-mail for reordering, these cards were provided
with a QR code.
Instead of passing on the card in the event of a stock shortfall, the consumer
concerned uses his smartphone and scans the code. The QR code generates a
pre-formatted mail, which is sent automatically. The card is turned over to indicate
that the order has been placed. The rest of the ordering process continues independently
from this point on.
Once the goods have arrived, the refilling and turning back of the card takes place. ◄
Whether analog or digital is irrelevant for good processes. What is important is that
process optimizations continue to be carried out and that any new problems that arise are
analyzed and eliminated in the long term.
Executives and the new “digital leaders” have an important and special role as
multipliers in process optimization. They need to know the analog methods to be successful
in the world of digitalization. This expertise is essential for operational efficiency
(Bertagnolli 2020).
28.2 Industry 4.0
The topic Industry 4.0 must not be missing in an automation.
" Industry 4.0 Fourth industrial revolution after mechanization, industrialization and
computer-integrated manufacturing (CIM). Industry 4.0 is operationalized with the terms
digitalization, networking, internet of things or cyber-physical systems.
The networking of machines is known through the CIM approach. The intelligent
factory (smart factory) proclaimed by Industry 4.0 (IoT) additionally networks products
with each other to make them more intelligent and, in the vision, to make the material flow
control of these products more flexible. The motto is: The product independently searches
for the suitable and free machine. The density of networking will increase as a result and
become more susceptible to faults. The risk of instability increases.
The approach of autonomous products does not correspond to the flow idea according to
the lean philosophy and is reminiscent of an earlier workshop and box production. This
378 28 Digitization
Table 28.1 Estimation of the potential benefits of introducing Industry 4.0 (based on Bauernhansl
et al. 2014, p. 31)
Costs Effects Potentials (%)
Stocks • Reduction of stocks 30 to 40
• Avoidance of fluctuations
Manufacturing • Improvement of the OEE 10 to 20
• Process control circuits
• Improving staff flexibility
Logistics • Increase of the degree of automation 10 to 20
Complexity • Widening the margins of performance 60 to 70
• Reduction of problems
Quality • Quality control loops in real time 10 to 20
Maintenance • Optimization of spare parts inventories 20 to 30
• Condition optimized maintenance
• Dynamic prioritization
process control without chaining of the processes makes sense especially with a very high
product variance.
New technologies alone do not solve the existing problems. It is therefore not a matter of
realizing what is technically feasible, but of finding “smart” solutions where problems
exist. The solutions should be quick and easy to implement and not turn factories upside
down (Zühlke 2016). Standardization is essential here (▶ Sect. 10.1). Only if less capital,
less waste and fewer resources are used following the implementation of a smart factory is
it implemented economically and lean. If machine downtimes are detected more quickly
through digitization, analogous to the jidoka principle (▶ Sect. 9.2), or if the flow of
information for a kanban cycle is accelerated (▶ Sect. 7.2), the implementation is econom-
ical and makes sense. The low-cost approach is preferable.
The fact that Industry 4.0 is intended to draw its benefits primarily from lean processes
can be seen from the assessment of potential benefits in the introduction of Industry 4.0 (◉
Table 28.1). The topics mentioned originate from the environment of lean production.
Accordingly, the potentials can only be realized if a lean implementation has not already
taken place.
Lean and Industry 4.0 are both approaches to improve business processes, because with
both approaches companies try to improve processes through methods. Lean is the basis for
waste-free and flowing processes. It follows that lean is the basis for Industry 4.0. Without
lean processes, the technological approach fails. The appropriate saying for this: “Don’t run
before you can walk!”
Approaches and additions to Industry 4.0 can arise in lean factories through networking,
the topic of batch size one, autonomous guided vehicles (e.g., AGVs), supporting robots
(man-machine), mobile end devices and additive processes (e.g., 3D printing).
Industry 4.0 can learn from lean when it is introduced, because ideally the same
approach is taken. When introducing lean, it is not only the understanding of methods
28.3 Digital Shop Floor Management 379
Table 28.2 Comparison of principles of lean management with Industry 4.0 (supplemented based
on Steven and Klünder 2018, p. 210)
Principle Lean management Industry 4.0 Consistency
Customer Static planning and alignment Increase in order frequencies Yes
orientation with the customer cycle
Product Customized Customized Yes
Added value Avoidance of waste Efficiency Yes
Value stream Alignment with material and Horizontal and vertical Yes
information flow integration
Flow One-piece flow, no interruptions One-piece flow, digital Yes
image
Pull Central planning and control Decentralized control, ad hoc No
Improvement Continuous improvement Improvement based on Yes
dynamic target systems
that is important, but also the holistic understanding of the interrelationships. Lean, if
copied, will not lead to success. The solutions must be applied in the right place for the
appropriate problems. This is exactly how Industry 4.0 should be approached.
Steven and Klünder (2018, p. 209 ff.) compare lean management and Industry 4.0. They
see some similarities, but also differences or factors that complement each other (◉
Table 28.2).
28.3 Digital Shop Floor Management
In the context of digitalization and Industry 4.0, it makes sense to digitally map the visual
elements of shop floor management (▶ Sect. 25.2) and parts of the problem-solving
process. Especially if the shop floor data collection has the collected data. There are very
different points of view and perspectives on the digitalization of shop floor management
communicating via e-mail, the Japanese stand together and communicate face to face
(Bender-Minegishi 2018, p. 157 f.). This also happens in a digital shop floor management
meeting. The goal, whether analog or digital, is to have a high level of transparency.
Everyone should be able to get an overview of the current status in ten seconds.
When paper solutions reach their limits and meetings need to be cascaded across
multiple locations, a digital solution offers some advantages. Likewise, when issues are
documented and escalated digitally, the benefits of data transfer come into play. When
many small issues arise or problems exceed a certain level of complexity, database systems
help. Shop floor management systems allow problems to be represented by photos and
entered into the system, assigned, processed and tracked directly on site. Problems and
measures are not lost. Also, the sustainable and fast knowledge transfer for improvement
ideas and problem solutions is partly better realizable. A search in previous solutions
380 28 Digitization
becomes possible for all department in a central database. Internationally operating

companies have a further advantage because the digital systems can display the same
data in the respective national language and thus enable fast communication.
The disadvantages of such systems result from a possible lack of visibility of the data. If
the monitor or the device is off, the data is no longer visible immediately. The haptic
process of a T-card system (cf. ▶ Sect. 25.5) is lost and the subjects are no longer
automatically visible when passing by. Such systems must be agreed with the works
council. In addition, attention must be paid to data protection. Mobile devices in use,
such as tablets, are more frequently affected by technical defects and theft.
Existing data is of interest for problem-solving techniques and root cause analysis. New
opportunities for problem analysis arise through statistical methods such as Six Sigma (▶
Sect. 25.4). When these problem-solving methods reach their limits, business analytics or
artificial intelligence can be used to evaluate the data.
With Regard to Digitization, the Following Questions Need to be Answered
• Are processes waste-free before automation?

• Are there wastes, loops or media discontinuities in digital processes?
• Are new technologies being used to support lean processes?
• After the implementation of digitization, have costs decreased and resources and waste
been eliminated?
• Have processes become simpler instead of more complex?
• Are the new technologies being monitored and checked for suitability for
appropriate use?
• Is data stuck or waiting to be processed?
• Do the advantages of using digital shop floor management outweigh the disadvantages?
• Do the divisions master the methods of analogue shop floor management before
implementing a digital version?
28.5 Summary
Summary on the Topic of Digitization

• Lean is the basis for digitalization projects and Industry 4.0.
• One rule of thumb in automation is: Eliminate waste first, then automate.
• Industry 4.0 is operationalized with the following topics: Digitalization, networking,
internet of things and cyber-physical systems. The intelligent factory (smart factory)
networks the products with each other in addition to the plants and machines. The
product independently searches for a suitable and free machine.
References 381
• The potential of Industry 4.0 is only realizable if lean has not yet been introduced.
• Industry 4.0 promotes, among other things, strong networking, the topic of “batch
size one” and self-sufficient logistics systems.
• Digital shop floor management favors knowledge management and supports cross-
site communication.
• Advantages and disadvantages of a digital implementation of shop floor management
have to be balanced.
• Whether analog or digital is irrelevant. The only important thing is to continue to
optimize and, if necessary, to eliminate new problems that arise in the long term. ◄
Questions
• What should be considered before implementing digitization projects?
• What are the potential benefits of introducing Industry 4.0?
• What are the advantages and disadvantages of digital shop floor management?
References
Bauernhansl T, Hompelten M, Vogel-Heuser B (eds) (2014) Industrie 4.0 in Produktion,

Automatisierung und Logistik – Anwendung, Technologien, Migration. Fraunhofer-Institut für
Materialfluss und Logistik IML. Springer Fachmedien, Wiesbaden
Bender-Minegishi A (2018) Toyotas wahre Stärke – Erfolgreiche Arbeitskultur mit meisterhaften
Bertagnolli F (2020) Schlank und stabil. Managementkompass 1:12–13
Steven M, Klünder T (2018) Nachhaltigkeit schlanker Industrie 4.0-Netzwerke. In: Khare A,
Kessler D, Wirsam J (eds) Marktorientiertes Produkt- und Produktionsmanagement in digitalen
Umwelten. Springer Gabler, Wiesbaden, pp 201–222
Zühlke D (2016) Perfektionismus bremst Industrie 4.0 aus. VDI-Nachrichten 40:4–5
Support Organization
29
The problem is not that they wouldn’t know what to do, but that
they don’t do what they know.
Following Walter Zimmermann
Overview
The support function at the lower management level is very important for a lean
organization. The supporters are not only responsible for problem-solving, but also
for the permanent optimization of the processes. The management span is relatively
small and therefore manageable. Further functions in the form of experts, a kaizen
workshop and the central training area support the optimization in companies.
Knalsch GmbH: Half Full or Half Empty?

Dr. Alsch is sitting at his desk. Claudia Beck sits across from him. Alsch thinks aloud
to himself, “Who can take care of all the issues? Do we need a lean team or an
external consultant? I can’t do it on my own, because the knowledge has to reach all
employees. We don’t have a knowledge problem, but we do have an implementation
problem. I’m torn on this.”
Claudia Beck interjects, “I guess it’s like the glass: half full or half empty.”
(continued)

https://doi.org/10.1007/978-3-658-36087-0_29
384 29 Support Organization
Alsch asks, “Do you think I’m an optimist or a pessimist about lean
implementation?”
Claudia Beck replies, “Well, it’s well known that the optimist says half full and
the pessimist says half empty. But what does the realist, i.e., the lean expert, say?”
Dr. Alsch is interested, “I don’t know, what does he say?”
Claudia Beck provides the answer, “He asks why the glass is twice as big as it
needs to be.”
Alsch laughs and says, “That’s good! And that brings me to the solution: We need
the functions that are necessary, like a workshop and the support function. We’ll start
with that and leave everything else for now. Let’s not oversize the organization.”
Claudia Beck confirms, “Okay, boss. I also believe that not needing a lean
department is a lean goal if everyone has internalized and lives the lean idea.”
29.1 Lower Management Level
Team leaders represent the first level of management at Toyota. They bear the designation
“hancho”. They have a relatively small management span and are responsible for the
processes and their optimization. Experience has shown that small management spans
are easier to control, oversee and manage.
" Hancho Japanese term for the team leader the lowest management level at the opera-
tional level in production. The management span is usually five to seven, in exceptional
cases a maximum of ten employees. He or she is released from production activities and
provides support in the event of deviations. He is responsible for continuous improvement,
training and problem-solving and works directly on optimizing the system.
The Hancho is the leader of the group and supports it. He has a key role, as he combines
many subject areas. His primary goal is to optimize the processes. To this end, he
constantly monitors his area and the processes very closely. He is able to perform and
train all work contents of his area. As a supporter, he is the first on site in the event of a
quality alarm to help and initiate and carry out problem-solving.
The duties and responsibilities of the Hancho include the following:
• Responsibility for a group and a line segment

• Creation of standardized workflows together with the employees
• Qualification of the employees regarding the process flows
• Control of production and triggering of kanban for the product
• Quality assurance and quality control
29.2 Kaizen Team and Lean Experts 385
• Verification of compliance with standards and cycle times

• Observation of processes to drive improvements and problem-solving
• Responsibility for kaizen and implementation of improvements
• Support when the quality alarm is triggered with countermeasures and fault elimination
• Carrying out the problem-solving process when problems occur
• Implementation of shop floor management with key figure tracking
• Control of all activities of the group
• Substitute in case of absence
This function is one of the main reasons why kaizen works at Toyota and generates more
improvement ideas (see ▶ Sect. 11.1) than in other comparable companies without the
hancho function.
29.2 Kaizen Team and Lean Experts
Through the hancho (▶ Sect. 29.1) and its managers, Toyota does not need any other lean
teams or experts in the company. The production lines and functions have a self-
responsibility for optimization and further development. In addition, every employee is
asked to make suggestions and contribute to the implementation of kaizen (▶ Sect. 11.1).
Only the central Operations Management Consulting Division (OMCD) (▶ Sect. 29.4) is a
lean unit that disseminates methods and conducts training centrally.
Lean experts have very different designations in companies. Often the abbreviation of
the production system is prefixed to this expert designation. Different levels indicate the
experience status (◉ Table 29.1).
Even if there are kaizen teams and lean experts in the organizations, the goal must be to
no longer need them. The most important task is to help people help themselves at the level
of a system kaizen. In this sense, improvement managers are in the companies (e.g.,
efficiency investigators at Porsche) conducting kaizen workshops.
Lean experts usually have a corresponding training, which is carried out in-house,
outside the company or in an internal and external mix. In most cases, the training is
coupled with practical workshops or implementation projects. The training concept as it
was implemented for example at Daimler AG is described in more detail by Springer
(2009). The more recent concept of Daimler AG is shown by Follmann et al. (2012).
A further enhancement is a holistic consulting approach in which the management is
supported accordingly in the lean implementation. For this purpose, management
consultants are used who, in addition to their lean expertise, also have change management
skills (▶ Chap. 31). This results in an ideal combination of lean and change management
topics for the systemic support of improvement processes and cultural topics.
In an ideal company according to a lean philosophy, managers and experts are both
generalists and specialists. Each has a broad basic knowledge and further in-depth knowl-
edge of special topics. This combination of broad and deep skills is called a “T-Shape“. It
Table 29.1 Examples of designations of lean experts in different levels of experience

First level Second level Third level
Improvement Manager Expert Trainer
Junior Senior Partner
Green Belt Black Belt Master Black Belt
Advisor Consultant Master
Coordinator Navigator Coach
Operator Multiplicator Sensei
requires versatility and a deeper understanding of the craft. A lateral entry is thus ruled out
(cf. Bender-Minegishi 2018, p. 212).
In most cases, corresponding lean functions are assigned to the plants or divisions. If
experts are organized separately from the divisions, for example centralized, this has the
advantage of independence during implementation. The dangers of such a remote unit are
the assumption of the wrong roles. It can happen that the division no longer stands for the
change, but that this role is taken over by the expert. The function of driver and leadership
is also taken away from the division. It can happen that the area uses the external expertise
as an extended workbench and hands over tasks. Worst of all, when supervision is provided
by an outside entity, the experts become adversaries. They are perceived as foreign bodies
due to a lack of integration. Resistance arises against the persons, their function and the
improvements.
Ideally, the teams and experts are assigned to the areas, or the functions are covered in
the areas by clear responsible persons and managers.
29.3 Kaizen Workshop
A workshop that implements the kaizen mindset is a competitive advantage. Innovations

and the implementation of optimizations are the result. Karakuri solutions (▶ Sect. 20.1)
and developments in the sense of low-cost intelligent automation (▶ Sect. 20.2) are
implemented.
The main goal of a kaizen workshop is to build and repair smart solutions indepen-
dently. Flexible material is used for this purpose, such as pipes and fasteners.
Such a workshop is staffed by experts with the appropriate skills for kaizen and
craftsmanship.
29.4 Lean Organization and Training Center 387
29.4 Lean Organization and Training Center
The central lean organization and the training center at Toyota are combined in the
“Operations Management Consulting Division” (OMCD) . The division was founded by
Taiichi Ohno. The unit conducts training and supports divisions and suppliers in
implementing the Toyota Production System. Leading TPS consultants and managers are
trained here. So are the consultants of the “Toyota Supplier Support Center” (TSSC), who
support the suppliers.
Standardizations for the entire company are rolled out from the Operations Management
Consulting Division. It is staffed with very experienced employees. The activity in the
division is a personnel development process for managers with a lot of experience, such as
former plant managers. The division manages the improvement activities and sends
experienced specialists to the plants worldwide as teachers (Freitag 2004).
Learning factories and learning platforms exist to empower employees. Basic skills and
abilities are trained in a standardized manner. Volkswagen AG operates an academy with a
learning factory on lean in Wolfsburg and at new production sites. The Mercedes-Benz
Production System has the approach of rolling out standardized modules on lean world-
wide (Block et al. 2011).
" Example Lean training modules of a learning factory are:
• Basics of lean production with flow, tact, pull, value stream analysis and shop floor
management
• Ergonomics and motion economy
• Flexible manpower system in combination with machines
• Ideal assembly: Assembly line and material supply
• Ideal logistics: Material delivery, shopping cart, picking, supermarket, internal
logistics
• Lean logistics: Supply chain from the supplier to the assembly line
• Machine technology: TPM and quick changeover
• Low cost intelligent automation and karakuri
• Energy efficiency
• Cardboard engineering
• Lean administration
• Lean development
The learning factory is a fundamental part of the company’s lean transformation, in

addition to the training of management, newly appointed managers, production planners
and the training of improvement managers and lean experts (Follmann et al. 2012).
The Following Expert Questions Relate to the Topic of Support Organization
• Is there an installed support organization?

• Is the hancho function set up with a low management span?
• Are the management margins down to the operational level small and manageable?
• Are all roles, tasks, competencies and responsibilities clearly described?
• Are lean experts trained to meet the needs?
• Is there a kaizen workshop?
• Does a lean training concept exist?
• Do managers as trainers train employees to be lean?
• Does a learning factory exist in which training is based on real products and real value
streams?
• Does the company have internal consultants for lean?
• Are external consultants no longer needed? If so, why and for what?
29.6 Summary
Summary on the Subject of Support Organization

• The lowest management level has a relatively small management span and is
responsible for the processes and their optimization.
• Through the hancho and his other executives, Toyota has no other lean teams or
experts on staff.
• The production lines and functions have a self-responsibility for optimization and
further development.
• If there are kaizen teams and lean experts in the organizations, the goal must be to no
longer need them.
• Lean experts usually have the appropriate training.
• Ideally, the teams and experts are assigned to the areas, or the functions are covered
in the areas by clear responsible persons and managers.
• A kaizen workshop that implements the kaizen mindset is a competitive advantage.
• The central lean organization and the training centre at Toyota are combined in the
Operations Management Consulting Division (OMCD). Through this division,
standardizations are rolled out for the entire company. ◄
References 389
Questions
• What does the term hancho stand for?
• What are the duties and responsibilities of a hancho?
• What are the advantages and dangers of centralizing experts?
• What is the main objective of a kaizen workshop?
References

Block M, Bertagnolli F, Herrmann K (2011) Lernplattform – Eine neue Dimension des Lernens von
schlanken Abläufen. Prod Manag 4:52–55
Follmann J, Laack S, Schütt H, Uhl A (2012) Case study: lean transformation at Mercedes-Benz.
360 . The Bus Transform J 3:38–45
Springer R (2009) Survival of the Fittest – So verbessern Spitzenunternehmen mit Lean Management
gleichzeitig ihre Prozesse und ihre Führungskultur. Finanzbuch, Munich
Consulting and Projects
30
It’s not enough to know, you have to apply it; it’s not enough to
want, you have to do it.
Johann Wolfgang von Goethe
Overview
In the lean environment, experts and consultants conduct workshops and projects to
implement lean principles. Well-known project management methods are used in
these projects and consultations. Some methods and procedures are essential for lean
projects or have been specially adapted to the lean approach. Basically, the mission
and the objectives have to be defined before the start of the project. A clear project
approach and the inclusion of measures to promote the understanding and awareness
of the project participants are standards for implementation projects. The potential
must be determined and a profitability calculation has to be carried out.
Knalsch GmbH: How to Eat an Elephant?

As part of a newly launched product development project, the concept of the future
Knalschi 300 is to be discussed. All project participants from production, engineering
and development meet for a project meeting. While production manager Kai Lupfer
(continued)

https://doi.org/10.1007/978-3-658-36087-0_30
392 30 Consulting and Projects
and Susanne Moos from engineering are already making initial plans, Joerg Escher,
the project manager responsible for development, is absent.
Assistant Claudia Beck gets restless, “Now he has already invited us all and
doesn’t come to the meeting himself.” After a moment’s thought, she asks everyone,
“Dear project participants, if the project manager doesn’t come to the project room,
then the project will come to the project manager.”
After a moment of confusion and Kai Lupfer asking her what she meant, the entire
project team sets off in the direction of Joerg Escher’s office. Joerg Escher is amazed
when everyone is in his office.
“I’m sorry, a phone call came up,” Escher apologizes. “We don’t want that to
happen again because it’s a big waste for everyone. We’ll just start right here, maybe
that’s better anyway, because we have the first prototype here too.”
The meeting starts successfully, but after 30 minutes difficulties arise again in the
discussion. Susanne Moos speaks up, “That’s all well and good now, but I don’t have
the capacities available for the project and I ask myself the question, is this ultimately
economical at all? Besides, we’re launching everything at the same time, surely that’s
not going to go well, is it? That’s quite a big elephant we’ve got in front of us.”
“That’s a lot of questions at once,” says Kai Lupfer.
Joerg Escher takes up Susanne Moos’ image and asks the question, “How do you
eat an elephant?”
Assistant Claudia Beck has the bright idea, “Well, how do you think? By the slice
and by the bite!”
30.1 Project and Request
The implementation of lean is not a project, but a holistic and long-term strategic approach.
Introductions and implementations are realized within the framework of smaller completed
workshops and projects. The implementations take place according to the lean way of
thinking.
" Project Well-designed sequence of interrelated activities that are directed towards a
clearly measurable, usually challenging target within a given time frame with limited
resources.
Before a project can be started, the project area and the project goals must be defined.
This clarification takes place within the framework of an order clarification meeting with
the client or customer. The client is usually the area in which the project is to be
implemented.
30.2 Project Objective and Management 393
In most cases, the client is also the principal. In lean projects it is often the case that the
client of a project belongs to a different organizational unit than the area in which it is
carried out. In this case, the client does not correspond to the principal and a triangular
constellation results between the principal, the client and the consultant. Since organiza-
tionally three parties are involved, it is important to establish clear responsibilities. The
three parties involved result in a so-called triangular contract.
During the clarification of the assignment, the most important topics are defined and
recorded in writing. A structured project description is suitable for this purpose. In addition
to the written form, the signatures of the contractor and the client on the project description
ensure that it is binding. This commitment is particularly important with regard to the
personnel capacities to be made available and the agreement on possible termination
criteria.
Important contents and points of a project profile are:
• Project area and contact person in the area

• Start and end date or project duration
• General project sequence in phases with date
• Control circuit dates
• Previously estimated results, which are validated during analysis
• Project participants including their capacities
• Actual and target key figures that are in focus
• Termination criteria
• Project organization, communication and involvement of the works council
Termination criteria should be defined jointly before the start of the project and should
be noted in the project description. Criteria for termination can be a lack of capacity among
project staff, insufficient project infrastructure, deferred prioritization of the project or an
uncoordinated change in the project focus, as well as a lack of decision-making and
communication processes. In case of a lack of stringent implementation, the execution of
the project should be reconsidered. Only by appropriate consequences waste will be
eliminated also in project processes.
30.2 Project Objective and Management
A project assignment must pursue a clear objective. This is defined by means of the
acronym “SMART”.
" SMART Acronym for target formulation based on five criteria: specific, measurable,
achievable, reasonable and time-bound. A good target formulation has the claim to meet
the five criteria.
For an explanation of the SMART criteria and an example, see ◉ Table 30.1.
Table 30.1 SMART criteria with explanations using an example

SMART
criteria Explanation Example
Specific Precise formulation Optimization of the assembly time of the Knalsch
3000
Measurable Expression in key Reduction by 8% based on planning
figures
Achievable Focused on action By line balancing the work content
Reasonable Realizable target Realization of the previously analyzed potential
Time-bound Fixed date Implemented by the end of the quarter
Starting from an overall project objective, the sub-objectives and activities are broken
down. This process is also called “breakdown”. The question here is which activities need
to be undertaken to achieve the overall target. For each further topic below the goal, the
same methodical approach is followed, so that subtasks and activities are derived from the
larger target and further broken down into smaller units.
The form of such work breakdown structures is predefined and designed in such a way
that the project goal is achieved from the completion of the underlying activities. This
results in a diagram that breaks down the overall project into smaller parts. The diagram
form corresponds to that of a tree. The resulting “logic tree” (◉ Fig. 30.1) helps to structure
activities and provides transparency for project packages. The overall objective of the tree
is at the top (trunk); below it, the branches and twigs break the goal into more detailed
subgoals and activities. The logic tree can have several levels and different numbers of
connections each.
The project objective is broken down to the work packages, so that identifiable activities
arise, which can be assigned and processed by a small group. This structure facilitates
teamwork through a clear work structure for tasks and clear project communication.
Parallel processing is made possible.
The logic tree only works if two clear rules are followed. Objectives, sub-objectives and
tasks must always be formulated and classified in such a way that they do not overlap and
are complete. The MECE principle is applied here. It stands for “mutually exclusive
collectively exhaustive” (Daiser 2019, p. 81). “Mutually exclusive” means that there
must be no overlap in content between topics. “Collectively exhaustive” means that the
higher-level content is fully described by putting together the topics at the next level. Thus,
at each level of the logic tree, the subgoals must be complete without overlap (◉ Fig. 30.2).
To go deeper into the hierarchy of the logic tree and break down targets into activities,
the following question is used: “How will the goal listed above be achieved?” or even
simpler “How?”. Higher-level goals are created by answering the question, “Why are the
goals listed below important?” or “Why?” for short. ◉ Fig. 30.3 shows the two questions
and directions in a logic tree.
30.2 Project Objective and Management 395
Fig. 30.1 Logic tree
Fig. 30.2 Example of an overlap-free and complete logic tree

How?
Standards
Reduce
Poka yoke
process errors
Training
Tools
Improve
Reduce scrap
machines
Maintenance
Raw material
Increase
Transport
material quality
Storage
Why?
Fig. 30.3 Deeper with the question “How?”, higher with the question “Why?”
The measures for the objectives are planned without overlap and completely, according
to the MECE principle. This means that the associated overarching goal is achieved as soon
as all measures are fulfilled.
After the structure of the measures via a logic tree, the creation of a project plan, the
so-called tactical implementation plan, follows. It combines the logic tree with the effort
and the project schedule on a time axis. For each measure, the duration by which it will be
completed must be estimated. In addition, the required capacity of the affected employees
is considered. The time required to complete the task can vary depending on the number of
people involved in the task. The time sequence is determined based on the availability of
persons and dependencies on preceding tasks. Tasks that are not dependent on each other
can also be scheduled in parallel. The time target date is a central planning element that is
worked towards.
The tactical implementation plan (TIP) is structured like a project plan (◉ Fig. 30.4). The
contents are objectives and levers, detailed actions, graphical paths on a timeline, capacities
and responsibilities, and responsibilities and stakeholders. Four fields in the sense of PDCA
are provided for daily or weekly implementation management. The plan is also used in
paper form as a tool for checking the status of measures and objectives.
A TIP review is carried out once a week, during which the responsible persons are asked
about the status of the measures. Ideally, the results are presented. By means of a red line,
30.2
Contact Contact Contact

Tactical Implementation Plan (TIP) Dep. Dep. Dep.
person person person
Knalsch GmbH Dr. Alsch M Escher D Schmidt D
Print 16.12.2019 Beck M Moos PL Mueller PL

Product development Knalschi 300
Start 13.01.2020 Horch M Lupfer P Meyer P
Weekly schedule (10 weeks)
Status
Activities
PDCA
Capacity
3 4 5 6 7 8 9 10 11 12
Measures
parameters
coordinator
Project team
Performance
Responsible,
Project focus
subproject team
Project objective
requirements (days)
Project Objective and Management
Q Component geometry 10
Specifications D System parameters 2
Moos
Escher
C Specifications 3
C Contracting 14.02. 1
Machine
Engineering
D Start-up 10
ordering
Moos
Escher
Q Acceptance 2
C Small parts optimization 3
Product C Protoyping 8
development D Assembly try out 15
Lupfer
Escher
Q Optimization loop 6
Design for manufacturing

D Cardboard engineering 20
Producibility
Assembly S Ergonomics evaluation 5
planning Q+D Production preparation 10
Lupfer
Escher
Q+D Production ramp-up 13.03. 15
Fig. 30.4 Example of a tactical implementation plan (TIP) (detail)

397
Mo Tu We Th Fr
Fig. 30.5 Schematic example of a weekly plan with sticky notes
which is drawn from top to bottom each week, current issues can be identified and
discussed. If a measure falls behind in the schedule, dependent and critical paths are
discussed, and necessary support measures are initiated. The red line at this point falls
back to the uncompleted action and indicates a “back spike” . In the following week, the
topic is discussed again.
For the weekly processing of the individual measures and tasks, these are transferred
from the tactical implementation plan to a weekly plan and scheduled. Using sticky notes,
the individual topics and persons responsible can be assigned to the days of the week (◉
Fig. 30.5). This transparent weekly plan is used for the sequence of days and serves for
detailed planning and orientation.
The approach to project management in lean projects mainly uses hand-written methods
and a high level of transparency. This is similar to the agile approach. Many tools of agile
management make use of the lean environment. Thus, many well-known lean tools exist in
the agile approach.
Like lean, agile project management also focuses on the customer and his wishes. Short-
cycle “sprints” are carried out, which could also be called PDCA. Tasks are processed in
small units, i.e., in small batch sizes. After the sprint, a retrospective with feedback and
lessons learnt takes place, analogous to PDCA. There is a KPI-board with key figures that
shows the progress of the project. Tasks and topics are placed on a “kanban board” by
means of cards in fields which indicate the status. The daily meeting on the board is similar
to a shop floor management meeting. One of the best-known agile approaches is “Scrum”.
It is used, for example, but not only, for the programming of software.
30.3 Project Procedure
In the meantime, different project procedures have been established for different areas. The
corresponding industries that use different approaches can be roughly divided into the
following groups:
30.3 Project Procedure 399
• Automotive industry and suppliers

• Mechanical engineering, electrical industry, aviation
• Process industry: Electronics industry, chemistry
• Services: Administration, law firms, banks, call centers
• Hospitals, hotel industry
• Construction sites
Depending on the industry, the approach results more from the manufacturing or
administrative method set. In the service industry, the focus is on knowledge management
and lead time, while for hospitals and hotels, customer satisfaction is the top priority.
Construction sites have a focus on project planning with shop floor management and
smooth logistics. Process industries typically have a focus on high quality using Six
Sigma methods. And the approaches between mass production and individual customer
products differ in methodological approach. Depending on the industry, there is a different
focus and therefore a different approach with different methods.
The basic procedure of the project process follows a clear standard in the lean environ-
ment. The project is planned and executed over a defined period of time. The period can last
from one week (workshop format) to one month or quarter (project) to one year (project
sequence).
The project structure always follows the same approach. The project is divided into
three phases. In the first phase, the analysis and planning phase takes place, followed by the
implementation phase and finally the stabilization phase. The analysis and planning phase
includes the analysis of the area and a concept creation. In the implementation phase the
realization and the implementation of the measures start. In the final stabilization phase,
new standards are introduced and the sustainable transfer to regular operations is carried
out. Each of these phases has its own characteristics and an appropriate use of methods (◉
Table 30.2).
Table 30.2 Project sequence in three project phases using the example of an annual quarter
Phase Analysis and planning Implementation Stabilization
Duration 15% / 2 weeks 70% / 8 weeks 15% / 2 weeks
Contents • Training • Lean awareness • Standardization
• Observations • Project management • Area manager
• Methods of analysis • Implementations • Implementation plan
• Value stream • Implementation of the • Key figure tracking
mapping principles • Anchoring in shop floor
• Record actual state • Control circuit management
• Visualization • Decisions • Confirmation potential
• Check project goal • Measures • Rollout
• Form hypotheses • Documentary
• Describe target state • Exchange of experience
• Calculate potentials • Reflection
• Create
implementation plan
30.4 Lean Understanding and Awareness
One approach at the beginning of a workshop or project is to train the employees and
managers affected by the project on lean and the methodology used. This creates under-
standing and awareness for lean in the project area. The training supports the later
anchoring and independent implementation of the lean philosophy after the project.
Short learning units, which usually take place as a small business game and are intended
to promote understanding and awareness of lean, are also called “lean awareness simula-
tion”. Here, learning simulations are carried out. These have several purposes to achieve an
effect:
• Gamification
• Practical application of the methods
• Simplification of complicated topics (time, space, size)
• Experiencing the effects and measured variables
• Team building
A lean awareness simulation is used in many ways for strategic or project-specific

topics. Economic framework conditions, the importance of a production system,
correlations of production principles or fields of action of the 3 Mu (▶ Sect. 4.2) can be
presented. In the context of project topics, the contents are presented, such as the project
goals, the focus of the implementation, the procedure or the concrete teaching of methods.
Advantages can be highlighted, and potential conflicts identified. Positive
consequences, such as an improvement in quality, as well as negative consequences,
such as higher logistics costs, are also regularly presented. In this way, conflicts and
opposing effects can be identified and clarified in advance in a protected space.
To create a training session, the following steps are performed: Concept creation,
preparation, training execution and, if necessary, a follow-up to further improve
future runs.
In the concept creation it is determined for which reason and on which main topic the
training will be carried out. The training design is determined. It includes the consideration
of the target group and the definition of the learning objectives. Based on this, the date, time
frame and schedule are planned (Langheiter 2019).
In the preparation phase, the participants and their previous knowledge must be
identified. A target group analysis provides relevant information in advance about the
attitude and behavior of the participants to the corresponding topic. Here, the respective
role and their interest are clarified. Roles can be, for example, decision-makers, opinion
leaders, implementers or affected employees. Depending on the role, preferences and
attitudes towards the project and topic are assessed and considered. During the preparation
the date is fixed and the didactic design regarding interactions, used media and methods as
30.5 Communication and Presentation 401
well as the exercises and simulations are detailed and determined. Simple lean simulations
and business games have been summarized by Bicheno (2010). For training delivery, care
must be taken to ensure a balanced agenda that provides additional time for discussions and
breaks. The size of the room must be adapted to the methodology and quantity of
participants. The required media are prepared.
During the training delivery, ensure clear facilitation. A second trainer can provide
positive support when it comes to questions or work in subgroups and the introduction to
exercises. During the implementation, questions should be answered, and any resistance
should be noticed and clarified. A business game or a simulation always provides the
opportunity to consciously perform a role reversal in a protected space. This can take place,
for example, between assembly and logistics or plant operation and maintenance. This
enables a perspective change and generates understanding for the neighbouring area.
30.5 Communication and Presentation
In Japanese companies, talking means collecting arguments and ideas for the joint
decision-making process. This includes always starting with the core message and leaving
out the unnecessary, analogous to the 5S methodology (Bender-Minegishi 2018, p. 154).
Only one statement is formulated per sentence, followed by a line break. Continuous text is
avoided (Bender-Minegishi 2018, p. 170).
This form of communication can be found in the steering committee presentations of a
lean project. When creating presentations, the red thread is also started with, and the
storyline is built up. Only when the rough structure and the core messages fit, the details
are created in individual slides with graphics. The same applies to presentations on posters
or flipcharts.
Facts should always be presented graphically. This makes it easier for the participants to
follow the train of thought. For this reason, the Japanese always have a notepad with them
to clarify what is being said with a pen (Bender-Minegishi 2018, p. 155 f.).
Statements and messages are supported with corresponding graphical representations.
Representations are usually based on data, which are statistically evaluated and presented.
Zelazny (2015, p. 22 ff. and p. 41) shows how and in what way numbers become pictures
and which diagrams are useful for the corresponding data and the presentation of results.
Presentations can be shown with different media. In addition to projections, practical
solutions are available for lean projects directly in production. Large-format presentations
on pinboards are just as suitable as the use of flipchart paper to turn pages or hung up in
sequence according to the red thread.
In presentations, the three “T’s” apply to the speaker. They stand for the three terms:
Touch, turn and talk (TTT). What is meant by this description is acting on a screen, a
monitor, the shop floor board or a poster. First, the relevant passage or graphic is shown,
then the rotation and turning towards the audience takes place, and only then does the
speaking begin. Thus, the full attention remains with the participants. The speech reaches
the audience instead of speaking against a presentation wall. This ensures that the
participants do not have to see the presenter’s back.
For project communication, it is important not to always speak in terms of solutions.
Decision-makers and those affected should be involved by asking appropriate questions. In
this way, appropriate questions can stimulate reflection and further thinking. In this way,
the independence of an area is maintained both during and after a project and the solutions
are not imposed.
30.6 Potentials and Economic Efficiency Calculation
The effect of lean measures is usually not immediate and can therefore only be seen in the
company’s key figures with a time lag. The real impact on the company and its indicators is
therefore more difficult to quantify and cannot be clearly assigned. As long as there are
improvements, this is basically positive for a company, even if the individual measures
cannot be evaluated. Requests for justifications and calculations initiated by mistrust
usually show a misunderstanding of lean and create unnecessary waste. Whether and in
which way lean has a business effect can be shown in a comprehensible way, for example
in a lean awareness simulation.
Nevertheless, for many reasons, evidence of project potential is desirable. In order to
evaluate projects quantitatively, potential calculations are made. These are carried out in
advance as an estimate, more specifically after the analysis phase and finally at the end of
the project. Here, the achieved target values are compared with the initial values and
converted into costs. This is possible with material costs, quality costs, tool costs, area
costs, capital commitment, personnel costs, a higher output and several other calculations.
Savings can be categorized differently in terms of time. The following categorization
is used: Annual savings of current costs, one-time cost savings and one-time avoided
expenses.
Example
In a manufacturing company, the savings potential of implementation projects with a
length of one quarter average values in the range of 300,000 to 360,000 euros per year.
Strategic projects and projects in the planning phase achieve a double to triple potential.
These are one-time avoided expenditures. ◄
In addition to the potential calculation, a financial decision must be made for the
implementation of an implementation. The basis for decision-making is provided by the
economic efficiency calculation or amortization calculation. For example, to bring an
acquisition necessary for the improvement to a decision in a control group, the expenditure
must be compared to the benefit.
The savings potential is calculated from the costs of a waste avoided by the improve-
ment and added up. For a uniform basis, current costs are usually calculated as annual
savings in relation to one year. A cost in the form of expenditure may also be incurred on
the improvement which achieves a saving. The static payback period of an expense that is
opposite to the savings, can be determined by the quotient (Eq. 30.1). Ideally, a suitable
payback period is within one year.
Expenditure
Payback periodStatic ¼ ð30:1Þ
SavingsAnnually
Sample calculation tasks on the topic of potentials and economic efficiency calculation
can be found in the summary at the end of this chapter (▶ Sect. 30.8).
For more calculations, such as a dynamic payback period, return on investment (ROI),
or total cost of ownership (TCO), see Schlink (2019).
The Following Questions Are to be Answered in the Thematic Area of Consulting

and Projects
• Are consultants not used as an “extended workbench” but in clear implementation

projects?
• Does a clarification of the assignment take place before workshops and projects with the
client?
• Are there clear termination criteria and are they adhered to?
• Are project objectives formulated according to the SMART criteria?
• Are project plans according to the MECE principle free of overlaps and complete?
• Is there a clear project approach?
• Are a tactical implementation plan (TIP) and a weekly plan used in projects?
• Are the appropriate approach and methods used for the industry?
• Is lean awareness training taking place?
• Is a target group analysis carried out for training courses?
• Are exercises and lean simulations used?
• Does lean awareness allow for role reversal and perspective change?
• Is there an understanding and awareness of lean?
• Is there a didactic concept underlying lean training?
• Are real issues transformed and translated into lean awareness training?
• Are presentations clearly structured and contain a clear message?
• Do consultants invite a different way of thinking?
• Are project potentials assessed?

• Are project potentials validated by analyses after project start?
• Is a profitability analysis carried out for investments in the context of improvements?
30.8 Summary
Summary on the Subject of Consulting and Projects

• Before the start of the project, the mission and objectives must be defined.
• During the clarification of the assignment, the most important topics are discussed
and recorded in writing in the form of a project profile. Signatures under the profile
ensure commitment.
• In “work break down”, sub-goals and activities are broken down from the project
goal. These are derived from the overall objective.
• Project objectives should be formulated using the SMART acronym.
• In the logic tree, the objectives, sub-objectives and tasks must always be formulated
and classified without overlap and completely.
• The tactical implementation plan (TIP) combines the logic tree, effort, and project
schedule together on a timeline.
• For the weekly processing of individual measures and tasks, these are transferred
from the tactical implementation plan (TIP) to a weekly plan and scheduled.
• Lean is implemented in a variety of industries, with different emphases from the
manufacturing and administrative method sets.
• In the lean environment, the project process is standardized. The analysis phase is
followed by the implementation phase and then the stabilization phase. The use of
methods between the phases differs.
• The employees and managers affected by a project must be trained in lean and the
methodology used. Lean awareness simulations support this process.
• The effective impact of lean is difficult to quantify and not clearly attributable.
Nevertheless, proof of the project potential is often desired. Potential calculations
can be used for this purpose. These can be prepared in advance as an estimate, more
specifically after the analysis phase and finally at the end of the project.
• In the case of investments that support an improvement, the expenditure must be
compared with the benefit (amortization calculation). ◄
Questions
• What obstacles can arise in the stabilization phase of a project?
• What content should be included in a project profile?
• What are the contents of the tactical implementation plan (TIP)?
• In what situations should project abandonment be considered?
• How is a goal broken down into work steps? What needs to be considered here?
References 405
• How does a project plan become a weekly plan with work tasks?
• For what reasons does it make sense to create understanding and awareness of lean?
• Into which categories can potential savings be divided?
• Calculation task 1: As part of an improvement project, Knalsch GmbH eliminates
waste in several assembly processes. After the subsequent deactivation, 0.72 workers
are no longer needed in an assembly cell with six workers. The personnel costs
amount to 85,000 Euro per year and employee. 4500 products of the type Knalsch
3000 are assembled in the cell per month. The value added by the assembly cell
amounts to 17 Euro per part.
– What is the percentage saving in relation to the assembly cell?
– Was the potential from the project objective formulated in ◉ Table 30.1 achieved?
– What is the calculated annual savings potential for personnel costs in Euro?
– The worker remains in the assembly cell and the activities are line balanced.
Assuming the potential can be used directly in a higher output. By how many parts
can the number of pieces per year be increased?
– How high is the potential if instead of personnel costs the increase in value per
additionally produced part is used for the calculation?
• Calculation task 2: At Knalsch GmbH, improvements are implemented through the
use of a new single automation system. The expenditure for the material and the
implementation of the LCIA solution amount to 1366 Euro once. The optimization
reduces the scrap costs by 105 Euro per month and the energy costs by 22 Euro per
month. In addition, there is a one-time saving of 182 Euro by giving tools that are no
longer needed to the neighboring team. The tools are needed there and do not have to
be purchased again.
– What is the saving in the first year?
– How long does it take until amortization?
– Is the payback period within an ideal time frame?
References

Bicheno J (2010) The lean games book. PICSIE Books, Buckingham
Daiser P (2019) Lean presentation – Das playbook für schlanke Präsentationen. Business Village,
Göttingen
Langheiter A (2019) Trainingsdesign – Wie Sie gut durchdachte, lebendige und passgenaue
Weiterbildungskonzepte entwickeln, 2nd edn. Manager Seminare, Bonn
Schlink H (2019) Wirtschaftlichkeitsrechnung für Ingenieure - Grundlagen für die Entwicklung

technischer Produkte, 3rd edn. Springer Gabler, Wiesbaden
Zelazny G (2015) Wie aus Zahlen Bilder werden: Der Weg zur visuellen Kommunikation – Daten
überzeugend präsentieren, 7th edn. Springer Gabler, Wiesbaden
Change Management
31
Manage the change or change the management?

Ralf Boscheck
Overview
Change management supports the cultural aspect of improvement processes and
change procedures. The cultural level must be considered in every change in which
people are involved. This is the only way to achieve sustainable success. Changes
always follow a similar course with people and resistance is part of every change.
Knalsch GmbH: A Sweaty Business

Dr. Alsch is very satisfied. Things have been going very well at the company since
the holistic implementation of the lean philosophy. Suddenly he has more time—for
his hobby, sports, for example.
Dr. Alsch is doing Nordic walking in the park near the factory site. He engages in
Nordic walking. While doing so, he reflects on the changes in his company. A
fantastic success has been achieved. It works really well with the entire workforce
and, of course, with the works council. Everyone is now pulling in the same
direction. Shop floor management is very well accepted by everyone. Most of the
(continued)

https://doi.org/10.1007/978-3-658-36087-0_31
408 31 Change Management
meetings in production are moderated by the employees themselves and the

managers act more as participants. There is a high level of mutual respect, people
meet at eye level, there is clarity and openness. Everyone is oriented towards the
customers. They are very satisfied.
A “Hello Dr. Alsch,” snaps him out of his thoughts. Claudia Beck is jogging
through the park and has caught up with the managing director.
“Ah, hello Mrs. Beck, you’re on your way here too,” Alsch greets her back.
“Yeah, I need some fresh air and I’m in the flow right now,” she replies back with
a wink.
Then Alsch has an idea: “Ms. Beck, now that we have much better communica-
tion and culture in our company and exchange ideas on eye level every day, wouldn’t
it be time to switch to first names? After all, we’ve been working together for a very
long time. Why don’t you call me ‘Karl’?”
“I’d love to—Claudia,” comes back promptly from Claudia Beck.
“It’s just hard now to shake hands with you Mrs. Beck..., I mean Claudia, with
these things here” Alsch retorts, raising his Nordic walking sticks.
“No problem, that applies as well. I find that very appreciative,” Claudia Beck is
pleased.
“Claudia, do you know what’s going through my mind right now? Now we’ve
accomplished so much together, and looking back, it wasn’t so hard after all. Why
did everything take so long and why didn’t we do it sooner?”
Claudia Beck replies, “Well, change takes time. I know what you mean. Processes
change quickly, but culture and people don’t. Our communication took its time, too.”
Alsch replies, “Yes, that’s true. And then in our day-to-day work, some people
were always against it, too, and we had to do some convincing first.”
Claudia Beck explains, “It’s called resistance, it’s part of any change.”
“Does it always have to be this way? It’s all logical and proven that what we’re
doing is better,” says Alsch, starting to sweat.
“Well Karl, this is not just a logical thinking for those affected, but also the
stomach, the emotional level, must be taken along,” says Claudia Beck. And she
adds, “The resistance to change is like sweating here in sports. You sweat when you
want to progress and this is not always a nice side effect. But sweating is just as much
a part of sports as resistance is during change processes.”
31.1 Change
A change starts with the current situation, the actual state, and ends with a new target state.
Change management accompanies this transformation process or the change. In addition to
the classic process change and the strategy, especially the people and the culture are
supported during the change.
31.2 Levels of Change 409
" Change Management All tasks, tools and interventions for initiating, managing and
implementing change processes with a profound transformation. Improvement projects are
one example. Topics of change management are, for example, the sensitization, involve-
ment and support of those affected, appropriate communication and the constructive
handling of resistance.
Lean transformation is a far-reaching change in structures, processes and corporate

culture in the direction of a lean vision, the true north (north star). Interim goals formulated
according to SMART (▶ Sect. 30.2) lead to the target state.
In a change process, four questions are relevant according to Bertagnolli et al. (2018,
p. 2), which are shown graphically in ◉ Fig. 31.1. The first question “Why leave here?”
seeks to answer the urgency or crisis as the starting point and the energy for change. The
second question of “Where to?” is relevant as a directional question and is set by a goal or
the vision. Only when these two questions are answered concretely a change process can
start. The third question, “How to get there?” clarifies the path to be taken from the current
state to the target state. This activates the necessary procedural and cultural measures. The
fourth and final question is to look at the stakeholders. The question of “What’s in for me?”
looks at how those involved weigh the positive and negative consequences of change. This
is a key point in change management, as the individual advantages and disadvantages must
be taken into account.
Lauer (2019) considers and discusses other aspects of change management including
triggers and success factors. Regber and Zimmermann (2007) show the aspects of change
management in production and at the same time present a case study with the perspectives
of all those affected.
31.2 Levels of Change
Change takes place on three levels. These are the strategic level, the process level and the
cultural level. The strategy indicates the path of a change and essentially consists of the
transformation of the current state into a target state, the process level considers the actual
change of a process improvement, and the culture level considers the people. All three
levels have an influence on each other (◉ Fig. 31.2).
In the context of change management activities, all three levels must be considered.
Change support has an effect on all three.
At the strategic level, the current state and the urgency for change are relevant. In
addition, the vision and the goals are determined. This results in an implementation path.
On the process level, resources are made available, advantages and disadvantages are
weighed, and the implementations are planned and realized. Classic lists of measures are
created. The cultural level focuses on people and their change. It is important to analyse the
cultural situation, to involve those affected as stakeholders and to implement
3. How to get there?
Target state
1. Why leave here? 2. Where to?
+ _
Actual state
4. What’s in for me?
Fig. 31.1 The change process based on four questions (Bertagnolli et al. 2018, p. 2)
Fig. 31.2 The three levels of a Strategy Process

change process (Bertagnolli
et al. 2018, p. 2) Change
Culture
communication measures. The result is a communication plan, which also includes

workshops and other interventions.
31.3 Intrinsic Change Curve
A fundamental model for the individual experience of the phases of a change is the intrinsic
change curve (Kostka 2016, p. 41). It is also called the change curve and has its origins in
Streich (1997). Over time, it has been further adapted and has been given an additional step
before the actual change, namely anticipation (◉ Fig. 31.3).
The intrinsic change curve shows the emotional states of a person moving through a
change. The amplitude is to be understood as the strength of emotional energy and later in
time perceived personal competence. In the case of rejection, the high energy is negative
and in the area of integration, it is positive. The timeline progresses differently for each
person. Thus, the passage may be fast, slow, or stall in the “valley of tears” (emotional
acceptance). Change can only be successful if each phase is passed through. Each phase has
its own characteristics.
31.3 Intrinsic Change Curve 411
Integration
perceived personal competence
Foreboding/ Cognition
worry Rejection
of the fact
Emotional energy or
Rational
insight Trial/learning
Shock
Emotional acceptance
Time
Fig. 31.3 The intrinsic change curve (Bertagnolli et al. 2018, p. 3, based on Streich 1997)
Foreboding/Worry: Rumours
This phase, in which a foreboding is formed and worries arise, takes place before the actual
announcement of a change. It is a preliminary phase, which is not present in the classic
models of the change curve. The period of uncertainty is described as when there are first
signs of change. These can be initial meetings, invitations or conversations at management
level, as well as the setting up of a project team. Such activities fuel the “rumour mill”, in
the form of unmanaged communication. Employees worry and have sorrows about what
might happen. Rapid communication of the change is urgently needed.
Shock: This Cannot Be True!

After the announcement of the change comes the shock. Those affected think that this
cannot be true. The change begins and those affected realize that they can no longer
continue with the tried and tested patterns of action. This leads to insecurities, fears and
stress. It becomes apparent that new ways of thinking and behaving are necessary, which
were previously unknown. In the shock phase, communication is not helpful at first, as the
affected person is not receptive. The phase quickly turns into the follow-up phase
“rejection”.
Rejection of the Fact: That’s Not True!

The feeling of lost security associated with the shock generates the urge to restore the old
basic assumptions with tried and tested behavioural concepts. This is supposed to
strengthen the perceived personal competence again. Impending changes and facts are
rejected with defiant reactions. Overt or covert resistance develops (▶ Sect. 31.4). Com-
munication is very important in this phase.
Rational Insight: Maybe?

The constraints of change are seen through facts and an irreversible situation. This again
weakens the perceived personal competence. It is recognized that something must change.
Immediate measures have priority in this phase. Attempts are made to avoid profound
change. Guilty parties and others who should change are sought before one’s own change
gradually becomes conscious as a possibility. If there is no fact-based communication in
this phase or if topics are not comprehensible, it can lead to a relapse into the rejection
phase and renewed resistance can arise.
Emotional Acceptance: It’s Actually True

Previous experiences, norms, values and abilities to act are further questioned and the inner
conflict between old and new patterns of thinking and behaviour brings one’s own
perceived competence to a low point. This point is also called the “valley of tears”. On
the one hand, there is a chance of emotional acceptance here, so that the new path can be
taken. On the other hand, there is the risk of a relapse into the rejection phase.
If those affected get into a form of commuting due to insecurity, they get stuck in this
phase of change with resignation. The situation in the valley of tears is often experienced as
crisis-like. Those affected experience particularly strong emotions, indecision and
disorientation.
A positive impulse, the demonstration of advantages and the motivation for learning
new competences are of great importance in this case. Managers must have understood the
change process with the employees and provide orientation at the crucial point so that
resignation does not arise. As with mountain climbing, a belay is required, a coach who
supports and a clear and common goal. In this phase it becomes particularly clear that
leadership in change projects is important and cannot be delegated.
Trial/Learning: Give it a Try. . .

The learning phase is about trying things out and practicing in a changed and new
environment. The readiness for the change is present. Coping with the new situation is
done by trial and error. Learning involves the perception of the environment and the
recognition of new laws. Mistakes are allowed and serve learning. It is important that a
sense of achievement occurs, otherwise there is a danger of reverting to the previous phase.
This phase is characterized by training and coaching.
Cognition: It Actually Works

The newly learned skills are applied in the phase of cognition. The learning process moves
from unconscious to conscious incompetence to conscious competence. An “aha effect”
occurs. The new tasks are mastered through the cognitions. Support is provided through
mentoring.
31.4 Resistance 413
Integration: That Goes Without Saying

In the integration phase, the learning process is completed. The learned ways of thinking
and behaving become part of an everyday routine. The situation is taken for granted and the
activities are carried out largely unconsciously. Skills that are no longer applicable are
discarded. The change is complete. The affected person feels the new situation as a matter
of course.
31.4 Resistance
Resistance is part of every change. Without it there is no change and no further develop-
ment. Resistance occurs more or less strongly in the rejection phase.
As a result of change processes, fundamental values, standards, needs and sensitivities
of those affected are violated, restricted or disregarded. For example, different voices are
not heard, and views are not taken into account. This effect is intensified when negative
experiences with change have already been made. Resistance has its source in the selfish
interest to maintain the status quo. This is based on a low tolerance for change or insecurity.
This ties up a lot of mental energy, possibly even so much that there is hardly any strength
left for constructive change.
Resistance is to be understood as a mental barrier that manifests itself in a rejection of
change. People communicate against the change to strengthen their own ideas. Thus,
resistance is expressed openly or covertly. The form can be active, as attack and fight, or
passive, as flight or playing dead. A distinction is made between verbal and non-verbal
communication (cf. ◉ Table 31.1).
One main reason for resistance is a lack of communication or too little communication
by the initiators. This leads to reservations and a lack of understanding. Resistance is more
likely to occur if there is no harmonious system of goals and values between the company
and the employees. Resistance is intensified by a lack of trust and without the active
participation of those affected. The same applies if the change is perceived by the
employees as personal belittlement or as additional work.
Resistance always has a reason and a goal. Ignoring or opposing it leads to blockades
and stagnation. Therefore, resistance must be dealt with constructively. The arguments are
to be taken up, the resistance is to be given space and a hearing. The causes must be
explored by entering into a dialogue.
Vahs (2015, p. 339) has compiled measures from various sources that support the
resolution of resistance:
• Early and open information

• Active participation of the people affected by the change
• Establishment of a trusting communication and working atmosphere
• Qualification of the persons concerned
• Consideration of long-standing labour and social relations
Table 31.1 Typification of resistance (based on Doppler and Lauterburg 2014, p. 357)
Form/communication Verbal: language, talking Nonverbal: Behavior
Active: Opposition: Excitement:
Attack, fight • Counter argumentation • Upheaval
• Accuzations, quarrels, threats • Disputes, strikes, rivalries
• Excuses • Intrigues
• Polemic, devaluation • Rumors
• Stubborn formalism • Cliquism
• Criticism, complaints • Non-performance of activities
Passive: Dodge: Ignorance/lack of interest:
Flee, play dead • Silence • Inattention
• Trivialization • Passivity, fatigue
• Fooling around, not serious • Absence, retract
• Making a mockery of • Lability, disease
• Unimportant debating • Notice of termination
• Irony, sarcasm • Inner emigration
• Protection of persons adversely affected by change

• Visible rewards for promoters of change
• Avoiding revolutionary approaches
• Creation of an early sense of achievement
• Allowing mistakes
• Use of professional and socially competent consultants
• Rapid stabilization of the changes achieved
31.5 Enabling and Motivating
In the introduction and implementation of lean, the strategy and the process level are
usually not the problem. Through a holistic target break-down process according to hoshin
kanri (▶ Sect. 24.1) and through the implementation of lean principles at the process level,
improvements take place according to the ideas of change management. Likewise, the
strategic conversion of an actual state into a target state is known based on value stream
mapping and value stream design (▶ Sect. 8.5). Especially important is the mostly
neglected third level of change management, the culture. This includes communicating
the vision and involving employees so that they change from being affected to being
involved. Lean leadership (▶ Sect. 26.1) is the right approach.
Kotter (2014, p. 27 ff.) recommends paying attention to his eight accelerators for
successful change:
• Create a sense of urgency

• Build a guiding coalition
• Form a strategic vision and initiatives
31.5 Enabling and Motivating 415
• Enlist a volunteer army

• Enable action by removing barriers
• Generate short term wins
• Sustain acceleration
• Institute change
In order to make change management successful and to involve those affected, a lean
transformation must reach and motivate people. Since not only extrinsic but also intrinsic
motivation must be addressed in a change, suitable framework conditions must be created.
The main point here is to avoid demotivation.
According to Sprenger (2010, p. 175 f.), a motivation formula can be generated from the
three dimensions of performance. Taken one step further, motivation can be calculated via
a product of three factors. These are ability, willingness, and opportunity (Eq. 31.1). The
three factors are evaluated as percentages.
Motivation ¼ Ability Willingness Opportunity ð31:1Þ
Through multiplication, low scoring factors pull down the overall motivation score.
This means that high values are important for all factors in order to achieve a high
motivation score.
The factors ability, willingness and opportunity can be detailed with sub-factors or
combinations of sub-factors. The ability is subdivided into “knowledge” and “ability”, the
willingness into “want” and “shall”. Opportunity is described by “to be allowed”. This
results in a more refined formula (Eq. 31.2).
Motivation ¼ ðKnowledge þ AbilityÞ ðWant þ ShallÞ To be allowed ð31:2Þ
These factors embody different levers, which are influenced in different ways and form
the framework conditions for motivation.
Knowledge includes knowing the vision, the goals, and the need for change. The
benefits should be known. The use of communication measures and visualizations is
suitable for this. The sub-factor ability includes the appropriate competencies and all topics
of qualification, such as training, education and further trainings. This includes lean
awareness training (▶ Sect. 30.4). Skills are supported by guidance and feedback.
Willingness is mainly taken into account through intrinsic and extrinsic incentives.
Participation plays a very important role here. This factor in particular is sometimes the
most difficult when it comes to intrinsic motivation. A good, appreciative and recognizing
environment is especially important. Shall is part of willingness and is determined by the
environment. In addition to a mandate and an agreement to change, it also requires a role
model function.
Not infrequently it depends on the to be allowed, which describes the possibility and
gives the permission for the participation. Without the necessary capacities, sufficient time
and a corresponding scope of action, no one will approach the task of his own accord. The
work requirements must be clarified.
Freidinger (2017, p. 239 ff.) delves into the topic of employee involvement. Bleher
(2014) presents empirical research on the practical introduction of a lean production system
with a corresponding survey of affected employees.
The support of a change process must offer a holistic view on all levels and be presented
transparently. The visual methodology of the “Change Canvas” (Bertagnolli et al. 2018) is
suitable for considering the three levels and the steps according to Kotter.
The Following Expert Questions Are to be Answered in the Topic Area of Change
Management
• Is there a vision and is it known within the company?

• Are affected parties involved?
• Are all employees capable of implementing change?
• Is there an implementation plan for the change?
• Is there a communication plan for the change?
• Is all important information communicated?
• Do all employees have the freedom to shape the change?
• During the trial-and-error phase of change, is it okay to make mistakes without the threat
of negative consequences?
• Are all three levels (strategy, process, culture) considered in the change?
• Are the eight Kotter accelerators applied?
• Do the people concerned know the change and the background?
• Can the people concerned implement and master the new topics?
• Do those affected want to, should and may go along with the change?
• Is the change visualized transparently?
31.7 Summary
Summary on the Subject of Change Management

• Change management primarily supports the cultural aspect of improvement pro-
cesses and change procedures.
• A change starts with the current situation, the actual state, and ends with a new target
state.
• In overview, there are four questions to answer: Why leave here? Where to? How do
we get there? What do I get out of it?
• Changes take place on the three levels of strategy, process and culture.
References 417
• The intrinsic change curve, also called the change curve, is traversed by those
affected by a change. It shows the emotional states of a person through the different
phases of change. Change can only be successful if each phase of the intrinsic change
curve is traversed. Each phase has its own characteristics.
• Resistance is part of every change. This occurs to a greater or lesser extent in the
rejection phase. The main reason for resistance is a lack of communication or too
little communication by the initiators.
• Motivation can be calculated by the product of the three factors: Ability, willingness
and opportunity. More finely, this results in the summary of motivation from the
factors: Knowledge, ablility, want, shall and to be allowed. ◄
Questions
• For which topics can change management be used?
• What are the three levels in the context of change management?
• What are the phases in the intrinsic change curve?
• Where and in what form can resistance occur?
• How to deal with resistance?
• What measures can support the resolution of resistance?
• How is change made possible?
• What are the eight accelerators called according to Kotter?
• What are the factors that influence motivation?
References
Bertagnolli F, Bohn S, Waible F (2018) Change canvas. Springer Gabler, Wiesbaden

Bleher N (2014) Produktionssysteme erfolgreich einführen. Springer Gabler, Wiesbaden
Doppler K, Lauterburg C (2014) Change Management: Den Unternehmenswandel gestalten, 13th
edn. Campus, Frankfurt
Freidinger R (2017) Geschäftsprozessoptimierung für Dummies. Wiley-VCH, Weinheim
Kotter JP (2014) Accelerate: building strategic agility for a faster-moving world. Harvard Business
Review Press, Boston, MA
Lauer T (2019) Change Management – Grundlagen und Erfolgsfaktoren, 3rd edn. Springer Gabler,
Berlin
verbessern im Team, 2nd edn. Mi-Wirtschaftsbuch, Landsberg
Sprenger RK (2010) Mythos motivation – Wege aus der Sackgasse, 19th edn. Campus, Frankfurt
Streich RK (1997) Veränderungsprozeßmanagement. In: Reiß M, von Rosenstiel L, Lanz A (eds)
Change Management – Programme, Projekte und Prozesse. Schäffer-Poeschel, Stuttgart, pp
237–254
Vahs D (2015) Organisation – Ein Lehr- und Praxisbuch, 9th edn. Schäffer-Poeschel, Stuttgart
Part III
Annex
The third part of this book contains a glossary of Japanese terms that are now used
internationally in the lean environment. In addition to naming and translating the terms,
there is also an explanation of their meaning in the context of lean.
Finally, the solutions to the exercises from the chapter summaries are listed.
Glossary of Japanese Lean Terms
32
Every new language is like an open window that shows a new

view of the world. . .
Frank Harris
Overview
Lean was coined by the Toyota Production System in Japan and so the lean topic is
also influenced by Japanese terminology. Some Japanese terms that are currently
used in the context of lean should be understood in their original form. Many things
can be better interpreted and understood in their original meaning.
Japanese terms that are used internationally in the lean context follow. The
glossary can be used as a reference work and dictionary. By explaining many
Japanese terms, this chapter is suitable as a kind of phrasebook through the lean
world. Incorrect terms, incorrect language and, above all, a lack of common under-
standing sometimes lead to misapplication of topics in lean.
The Japanese terms are translated in the glossary. For some terms, the meaning for
and the connection with lean are also explained. In the case of terms consisting of
several words, the individual terms and their meanings have also been included. For a
better understanding, it is worthwhile to look up the individual word components
further.
(continued)

https://doi.org/10.1007/978-3-658-36087-0_32
422 32 Glossary of Japanese Lean Terms
Not all terms listed here were used in the book. Reading the terms from beginning
to end provides additional new insights and connections that complete this book.
The following translations are derived from various research. They resulted from
conversations with experts, from the experiences of a trip to Japan, from Zollondz
(2013, p. 356 f.), additions by Helmold (2020, p. 183 ff.) and from a Japanese-
German dictionary (Langenscheidt 2003).
5S seiri, seiton, seiso, seiketsu, shitsuke; meaning: Methodology of a clean-up workshop

with the principle of subsequent sustainable standardization
Amakudari Descending from heaven; meaning: Recruiting high officials shortly

before their retirement in order to obtain public contracts
Andon Lantern, paper lantern, sparkle, lamp; meaning: Visual information
display, e.g., for visualizing progress or signaling for supporters.
Central display board with colored lamps as visual management to
indicate conveyors, stations or machines that have a problem or are at
a standstill, for plants or production lines also as visual status man-
agement, also possible in combination with acoustic signal.
Aru beki sugata the way we want to be, or the way things should be; True North;
meaning: North Star in the sense of a superior goal.
Asaichi Morning market; meaning: First meeting in the morning or shop floor
meeting in which the quality problems that have occurred are
addressed
Ato hoju Stock replenishment system
Atokotei hikitori Backward chaining; meaning: Pulling system according to the pull
principle
Ba Location
Baka Stupid, idiotic
Baka yoke foolproof system; also haka yoke
32 Glossary of Japanese Lean Terms 423
Chaku Insert, load; see chaku chaku

Chaku chaku Loading, loading; meaning: Form of a flexible manpower assembly cell
in combination with machines with high added value, machines are only
loaded, the parts are ejected automatically
Dandori Plan; meaning: Line supporter with cyclic (planned) tasks

Dantotsu The best, benchmark
Datsu Take
Dekansho Periodic and irregular work due to lack of parts, according to the song
Dekansho, which tells about hibernation
Do Movement
Dojo Place of the way; meaning: Training room
Dou Like, way, path
Douki Synchronous, simultaneous, sequence
Gemba s. genba
Gembutsu s. genbutsu
Gen Reason, primal, present, actual, to appear
Genba Real place, actual place, place of action, shop floor; also gemba;
meaning: Place where something takes place, is produced or worked
on, process location, workplaces, production, workshop.
Genbutsu Real object, actual object, on the thing; also gembutsu
Genchi Actual location
Genchi gembutsu To go to the source of the event in order to research facts on concrete
things at the place of the process, go and see; meaning: To investigate
the issues at the place of the event, e.g., the production, such as to
directly understand problems on production parts.
Genin s. gennin
Genjitsu Fact
Gennin Confirm as fact, facts; meaning: factual situation, assessment of the
factual situation
Genri Principle
Gensoku Rule
Ginokai Trainee, Employee

Go gen shugi Philosophy of the 5 concretes; newer name for the meaning of genchi
gembutsu
Haiki shiki Apology ceremony due to generated residuals

Haka yoke Foolproof system, also baka yoke
Han Small group with close supervision
Hancho Team leader; meaning: Lowest management level for groups in produc-
tion with five to ten employees, intervenes in the event of process
deviations and operates the improvement and problem-solving process
Hanedashi Device for the automatic removal of parts from machines
Hansei Reflection, self-reflection, self-criticism
Hataraki Work
Heijunka Smoothing, levelling; meaning: Production smoothing, keeping produc-
tion volume as constant as possible
Hitori Person
Hitozukuri Educate people, develop people
Ho Direction
Hoh kou Report
Hoh Ren Soh Require regular reporting; from the words “hoh koku”, “ren raku” and
“soh dan”
Hoshi Star, compass needle
Hoshin Principles, strategy
Hoshin kanri Target development process, target development; meaning: Holistic
alignment of the organization according to a uniform vision and target
cascade down to each employee
Hou ren sou s. hoh ren soh
Ichiban First, first position, best, most successful

Ikko nagashi One-piece flow; meaning: One-piece production and transfer without lot
sizing in the principle of first-in-first-out
Ishikawa Cause-effect diagram, error-influence diagram; named after the inventor
Kaoru Ishikawa (1915–1989); meaning: Diagram showing the causal
relationship in problems
Jidoka Autonomous automation with human intelligence, autonomous error detec-

tion, autonomous automation; also ninben no aru jidoka; also ninben no
tsuita jidoka; invention of a principle by Sakichi Toyoda (1867–1930) as a
quality stop for automatic looms; meaning: Decoupling of man and machine
for autonomous error detection
Jinbo Reputation, popular, trustworthy, integrity
Jishuken Autonomous workshop
Junjo biki Material withdrawal in sequence
Kai Change, transformation

Kaikaku Radical improvement of an activity to eliminate waste, reform
Kaisha Company, firm
Kaizen Change for the better, change for the benefit, improvement; meaning:
Method and concept for the continuous improvement process (CIP),
self-evident daily improvement of the personal work business, in
small steps
Kaizen teian Improvement proposal; meaning: Improvement proposals submitted
by employees
Kakushin Renewal, innovation
Kamban s. kanban (correct phonematic transcription of kanban)
Kamishibai Means to support recurring tasks, e.g., T-card
Kanban Card, sign, label with product information; also kamban; meaning:
Production control according to the pull principle with withdrawal
kanban and production kanban
Kanri Planning, management, execution, deployment
Karakuri Trick, deception, mechanism, mechanization with wisdom, simple
automation; meaning: Self-built simple automation with the aid of
simple mechanical processes.
Karakuri ningyo Mechanical doll; meaning: Japanese tradition of mechanical, spring-
operated dolls imitating human movements
Karoshi Death by overwork
Kata Practiced procedure, routine, fixed form, e.g., in combat sports;
meaning: Repetitive practice and procedure of lean implementation
from the actual state to the target state in the form of coaching
questions
Keiki Measuring device; position
Keiretsu Group of companies with ring-shaped capital linkage, supplier devel-

opment, capital majority with a supplier by the customer (OEM)
Kentou Drawing of a study in the product development process, concept
phase
Kentouzu Drawing of a study in the product development process, concept
phase
Kigyo kumiai Company unions
Kihon Basic training for martial arts
Kiken yochi Recognition of physical risks and hazards, recording and improve-
ment of risks and hazards
Kiki Crisis, literally “catastrophe and opportunity” (in the sense of
chance)
Kinohbetsu kanri Functional management
Koan Short anecdote or aphorism to illustrate a statement of a Zen master
Kocho Experienced group leader, chief leader
Komicho Group leader
Kozo kaikaku Structure plan, construction drawings, also called “4K” (after the
number of “K” in the term).
Kumi Working groups
Kumicho Foreman, group leader
Kumite Free fight in combat sports
Kyosei Cooperation between companies
Makigami Paper roll; process map, swim lanes; meaning: Structured methodology
for visualizing administrative processes
Minomi Body only, contents only, part without packaging, part without container;
meaning: Method of transporting or moving parts by gravity on
suspensions or via slides, this enables waste-free provision of material
at the point of added value
Mizusumashi Japanese wobbling beetle, gyrinus japonicus (can run on the water sur-
face and moves fast circling with high efficiency); meaning: Line sup-
plier, logistician for the line or cell supplier, e.g., for flexible manpower
systems
Mono Things
Monozukuri Making things, art of making
Mottainai What a waste
Muda To toil, pointless effort, waste, futile, stagnation, fruitless; also rhoi; term
of the 3 Mu with mura and muri; meaning: all activities that do not serve
to add value to a product
Mura Deviation, variability, irregularity, fluctuation, non-cyclical; concept of

3 Mu with muda and muri.
Muri Overload, unreasonable, not ergonomic, by hook or by crook; term of the
3 Mu with muda and mura
Nagara Simultaneity of starts; meaning: Triggering of several work

steps with only one action
Nagareka Continuous flow process with batch size one
Nemawashi Walking around a plant and digging up the roots to transplant;
meaning: Having informal conversations as part of a decision-
making process
Ninben no aru jidoka s. jidoka
Ninben no tsuita jidoka s. jidoka
Ningen Human
Ningyo Doll
Ninjutsu The art of making oneself invisible; meaning: To make oneself
superfluous in connection with the training of management
skills
Obeya Large room, project room; meaning: Form of joint project management
Poka Careless mistake, accidental mistake

Poka yoke Error prevention in the system; meaning: Human errors are no longer
possible
Raku Cosy, comfortable, homely, relief; meaning: Term for ergonomics

Raku raku Ergonomic round seat; meaning: Swing seat with which workers can swing
themselves into a vehicle for assembly purposes
Ren raku Regularly pass on the current state of affairs
Ringi Circulation by top management
Ringi sho Process for decision-making in Japanese companies and authorities; also
ringo seido
Ringo seido Process for decision-making in Japanese companies and authorities; also
ringi sho
Rohi Waste; see muda
Seiketsu Cleanliness, purity, clean; fourth “S” of the 5S; meaning: maintain
cleanliness; constant tidying up prevents new objects from finding
unplanned access to the workplace
Seiri Sort, reorganize, select; first “S” of the 5S; meaning: To sort out
everything that is not needed for the work at this place
Seisan Production
Seisancho sashitsu Production support office, management and support of kaizen
activities
Seiso Cleaning, making clean; third “S” of the 5S; meaning: To clean;
workplace is cleaned from scratch
Seiton Order, love of order, tidying up, arrangement; second “S” of the 5S;
meaning: Put things in order; what is actually needed gets a fixed place
that is selected, defined and marked according to ergonomic aspects
Sensei Born earlier; meaning: Respectable master, teacher, mentor
Shainin Statistical methods for problem-solving and quality improvement;
named after Dorian Shainin (1914–2000), the founder of shainin
Shikake Variables in the production organization that closely combine tech-
nical and social elements
Shikumi Processes, set of rules, scheme, mechanism, arrangements; mean-
ing: Value stream at aggregate level, representation of supply chain
with suppliers
Shin Pointer
Shingo Name for principles, methods, trainings and workshops concerning
the avoidance of waste and quality improvement; also name for an
award for excellent production; eponym is the engineer and quality
expert Shigeo Shingo (1909–1990)
Shinkansen Fast train in Japan
Shishi odoshi Animal threat; Japanese scarecrow for wild animals, which emits a
continuous sound by means of a flow of water, a full-flowing vessel
and its regular spontaneous emptying; meaning: Conversion of a
cyclic lever movement from a continuous flow, can be used for
simple automations
Shitsuke Education, discipline, training; fifth “S” of the 5S; meaning:
Practicing self-discipline; discipline is required to maintain order
and cleanliness, i.e., if a space is defined for a tool, it always belongs
there
Shojinka Economical use of personnel, reduction of manpower; meaning:

fFexible use of personnel, employees with high degree of flexibility
Shokucho vice champion
Shoninka Process optimization on machines
Shoryokuka Reduction of working time, reduction of working time in produc-
tion; meaning: Mechanization of work processes
Shukan Habit, custom, customary; by adding shukan to the 5S, the 6S are
formed; meaning: To get used to; with sustained discipline, order
and cleanliness eventually become flesh and blood
Shunin Master
Shusa Chief; meaning: Project manager, chief engineer in product
development
Soikufu Creative thinking, original ideas, use of employee creativity
Sou dan Consult someone
Sushin koyo Lifelong work
Takto Tact, tact time

Te i in se i Minimum number of employees required
Teian Suggestion
Ten tai Dissemination, unfolding, spreading
Toyoda Lush rice field; family name of the founding
family of the Toyota company
Toyota Company name of the multinational com-
pany of the Japanese family Toyoda, car
manufacturer, car brand, place name in
Japan; the Japanese spelling (katakana) of
the company name Toyota needs only eight
strokes for the word instead of ten, com-
pared to the family name Toyoda; the eight
stands for luck and the association with fur-
ther growth in Japan
Toyota hoshiki Toyota system
Toyota seisan hoshiki Toyota Production System (TPS)
Toyota shiki kigyokakushin no hohoron Toyota enterprise development program,
Toyota system
Ugoki move
Warusa kagen Critical and realistic stocktaking of a situation with the question: How
bad is the situation really?
Yama Mountain
Yamazumi Tact time diagram; Meaning: Bar chart display for visualization and line
balancing
Yappari Emotional expression for “as expected” or occurrence of what was already
thought
Yen Japanese currency
Yo i don Get set, get ready, go
Yoke Prevent, avoid; see yokeru
Yokeru Prevention, avoidance; see yoke
Yoko Horizontal, lateral, width
Yokoten Transfer to the adjacent, horizontal transfer; meaning: Passing on good ideas
to other areas
Yoshi Central points; good!
Yuka Floor; meaning: Not to put anything on the floor in the context of the 5S
Zaibatsu Holding company in family ownership

Zen Good
Zumi Pile up
References
Helmold M (2020) Lean management and kaizen: fundamentals from cases and examples in
operations and supply chain management. Springer Nature, Cham
Langenscheidt (ed) (2003) Universal-Wörterbuch Japanisch. Langenscheidt, Berlin
Solutions to the Exercises
33
Knowing the problem is more important than finding the solution,

because presenting the problem accurately automatically leads to
the right solution.
Albert Einstein
Overview
The solutions to the multiple-choice questions as well as the arithmetic problems that
have been set in some chapter supplements are presented. These examples help
further understanding.
33.1 Chapter 6: Tact
Solutions to the exercises in ▶ Chap. 6: Tact (▶ Sect. 6.8).
Calculation Task
For each product variant of the Knalsch 3000, the customer tact time has to be calculated.
Production time
Product variant A: Requirement per day: 6 parts, working time per day: 6 h

https://doi.org/10.1007/978-3-658-36087-0_33
432 33 Solutions to the Exercises
6h h
Customer tact time ¼ ¼1 ð33:2Þ
6 parts part
The customer tact time for product variant A is one hour.

Product variant B: Requirement per day: 522 parts, shift time per day: 8 h incl. 45 min
break
8 h 45 min 435 min 26, 100 s s

Customer tact time ¼ ¼ ¼ ¼ 50 ð33:3Þ
522 parts 522 parts 522 parts part
The customer tact time for product variant B is 50 s.

Product variant C: Requirement per day: 25 parts of the variant “yellow” and 35 parts of
the variant “blue”, working time per day: 7 h, minus changeover times (2 times 30 min per
day)
7 h 2 30 min 6h h min
Customer tact time ¼ ¼ ¼ 0:1 ¼6 ð33:4Þ
25 parts þ 35 parts 60 parts part part
The customer tact time for product variant C is six minutes.

Product variant D: Requirement per day: 1200 parts, working time per day: 14 h
14 h 840 min min s

Customer tact time ¼ ¼ ¼ 0:7 ¼ 42 ð33:5Þ
1200 parts 1200 parts part part
The customer tact time for product variant D is 42 s.

Product variant E: Demand per year: 48,000 parts, working time per year: 3000 h, two
shifts/day.
The shift specification has no influence on the calculation for this task, since the absolute
number of hours is specified.
3000 h 180, 000 min min s

Customer tact time ¼ ¼ ¼ 3:75 ¼ 225 ð33:6Þ
48, 000 parts 48, 000 parts part part
The customer tact time for product variant E is 225 s or 3 min and 45 s.
33.2 Chapter 7: Pull
Solutions to the tasks in ▶ Chap. 7: Pull (▶ Sect. 7.8).

33.2 Chapter 7: Pull 433
Multiple-Choice
On which principle is the kanban system based? Answer: The Kanban system is based on
the pull principle (▶ Sect. 7.2).
Which two terms go together in each case? (▶ Sect. 7.6)
• Make-to-forecast-workshop control
• Make-to-stock-supermarket
• Make-to-order-order control
• One-piece flow-flow in customer sequence
• Make-before-order-utopia
Calculation Task
For each supplier part of the Knalschi 100, the number of cards in the kanban cycle has to
be calculated.
Part A: 40 parts/container, shift time: 480 min incl. 60 min break, consumption/shift:
400 parts, replenishment time: 3.5 h, safety factor: 1.25
Production time ¼ 480 min 60 min ¼ 420 min ¼ 7 h ð33:7Þ
400 parts parts

Consumption ¼ 57 ð33:8Þ
7h h

Consumption Replenishment time
PartsLoad carrier
& ’
h 3:5 h
57 parts
Number of cards ¼ parts 1:25 d6:23 containerse ¼ 7 containers ð33:10Þ
40 container
The kanban cycle for part A requires 7 cards.

Part B: 20 parts/container, 3-shift operation with 150 min break per day, consumption/
day: 1300 parts, replenishment time: 2 h, safety: 1 h
Production time ¼ 24 h 150 min ¼ 24 h 2:5 h ¼ 21:5 h ð33:11Þ
1300 parts parts

Consumption ¼ 60:5 ð33:12Þ
21:5 h h
1 h 60:5 parts
Load carrierSafety ¼ parts
h
3 container ð33:13Þ
20 container

Number of cards ¼ þ Load carrierSafety ð33:14Þ
PartsLoad carrier
& ’
60:5 parts 2 h
Number of cards ¼ h
parts þ 3 containers d9:05 containerse
20 container
¼ 10 containers ð33:15Þ
The kanban cycle for part B requires 10 cards.

Part C: 25 parts/container, consumption: 45 to max. 55 parts/h, replenishment time: 5 h,
safety: 50%.
parts
Consumption ¼ Consumptionmax ¼ 55 ð33:16Þ
h
Safety factor ¼ 1 þ 50% ¼ 1:5 ð33:17Þ

PartsLoad carrier
& ’
h 5h
55 parts
Number of cards ¼ parts 1:5 ¼ d16:5 containerse ¼ 17 containers ð33:19Þ
25 container
The kanban cycle for part C requires 17 cards.
33.3 Chapter 8: Value Stream
Solutions to the tasks in ▶ Chap. 8: Value stream (▶ Sect. 8.7).
Calculation Task 1
At Knalsch GmbH, 20 products of the Knalschi 100 are produced per hour.
33.3 Chapter 8: Value Stream 435
The first machining process has a cycle time of 2 min; the second machining process has
a cycle time of 3 min. The third process requires 3.5 min per part and the last process is an
assembly process with three stations and a cycle time of 5 min per station.
There are 2 h of inventory between the first and second process. There are 15 parts
between the second and third process. Before the fourth process, there is a conveyor belt on
which a maximum of 8 parts fit.
The customer tact time has to be calculated.
Production time
Customer order quantity
1h 60 min min
Customer cycle time ¼ ¼ ¼3 ð33:21Þ
20 parts 20 parts part
The customer tact time is 3 min for one part.

The process time has to be calculated.
X
n
Process time ¼ Cycle timei ð33:22Þ
i¼1
Process time ¼ 2 min þ 3 min þ 3:5 min þ 3 5 min ¼ 8:5 min þ 15 min
¼ 23:5 min ð33:23Þ
The process time is 23.5 min.

The lead time has to be calculated.
X
m
Lead time ¼ Process time þ Inventory timej ð33:24Þ
j¼1
Inventroy time ¼ Inventory quantity Customer tact time ð33:25Þ
min
Lead time ¼ 23:5 min þ 2h þ 3 ð15 parts þ 8 partsÞ ð33:26Þ
part
Lead time ¼ 143:5 min þ 69 min ¼ 212:5 min ð33:27Þ
The lead time is 212.5 min.

The flow rate has to be calculated.
Process time
Flow rate ¼ ð33:28Þ
Lead time
23:5 min
Flow rate ¼ 0:11 ¼ 11% ð33:29Þ
212:5 min
The flow rate is 11%.

The flow factor has be calculated.
Lead time
Flow factor ¼ ð33:30Þ
Process time
212:5 min
Flow factor ¼ 9:04 ð33:31Þ
23:5 min
The flow factor is about 9.
Calculation Task 2
How long is the cycle time at an assembly station for the Knalsch 3000 when the following
three variants occur?
– Product variant A: Cycle time 60 s, assembly rate 50%.

– Product variant B: Cycle time 40 s, assembly rate 30%.
– Product variant C: Cycle time 90 s, assembly rate 20%.
The cycle time at the station is calculated via the weighted arithmetic mean.
Cycle timeStation ¼ 60 s 0:5 þ 40 s 0:3 þ 90 s 0:2 ¼ 60 s ð33:32Þ
The cycle time at the station is 60 s on average.
33.4 Chapter 9: Perfection
Solutions to the tasks in ▶ Chap. 9: Perfection (▶ Sect. 9.5).

33.5 Chapter 13: Production Area Manufacturing 437
Multiple–Choice
Which metric is not a quality metric in the lean environment?
Answer: The key figure “First Time Left” does not exist. The other indicators are all
used in practice (▶ Sect. 9.1).
33.5 Chapter 13: Production Area Manufacturing
Solutions to the tasks in ▶ Chap. 13: Production area manufacturing (▶ Sect. 13.6).
Calculation Task
At Knalsch GmbH, one machine is designed for 100 h per week. Production takes place in
a 5-day week.
In a working week, 12 h are scheduled for tool changes and set-up processes.
Malfunctions occur on average 7 h per week.
Unfortunately, there are always bottlenecks due to a lack of material, so that the machine
has no material available for production for an hour. The machine achieves on average 95%
of the set speed.
Despite optimal processes, the machine produces 1% scrap that must be reworked.
What is the availability factor?
Production time
Availability factor ¼ ð33:33Þ
Operating time
100 h 12 h 7 h 81 h
Availability factor ¼ ¼ ¼ 0:81 ¼ 81% ð33:34Þ
100 h 100 h
What is the performance factor?
Production time used

Performance factor ¼ ð33:35Þ
Production time
ð81 h 1 hÞ 0:95 76 h
Performance factor ¼ ¼ ¼ 0:9383 ¼ 93:83% ð33:36Þ
81 h 81 h
What is the quality factor?
Good piece count

Quality factor ¼ ð33:37Þ
Produced parts
100% 1% 99%
Quality factor ¼ ¼ ¼ 99% ð33:38Þ
100% 100%
What is the OEE of the machine?
OEE ¼ Availabilit factor Performance factor Quality factor ð33:39Þ
OEE ¼ 81% 93:83% 99% ¼ 75:24% ð33:40Þ
33.6 Chapter 30: Consulting and Projects
Solutions to the tasks in ▶ Chap. 30 Consulting and projects (▶ Sect. 30.8).
Calculation Task 1
As part of an improvement project, Knalsch GmbH eliminates waste in several assembly
processes. After the subsequent deactivation, 0.72 workers are no longer needed in an
assembly cell with six workers.
What is the percentage saving in relation to the assembly cell?
0:72
Savings ¼ ¼ 0:12 ð33:41Þ
6
The percentage saving is 12%.

Was the potential from the project objective formulated in ◉ Table 30.1 achieved?
In the table the project objective is defined as 8%. At 12%, the potential is above the
target. It was therefore more than achieved.
The personnel costs amount to 85,000 Euro per year and employee.
What is the calculated annual savings potential for personnel costs in Euro?
Savings potentials ¼ 0:72 85, 000 Euro ¼ 61, 200 Euro ð33:42Þ
or
Savings potentials ¼ 0:12 6 85, 000 Euro ¼ 61, 200 Euro ð33:43Þ
The savings potential is 61,200 Euro per year.

4500 products of the type Knalsch 3000 are assembled in the cell per month.
33.6 Chapter 30: Consulting and Projects 439
The worker remains in the assembly cell and the activities are line balanced. Assuming
the potential can be used directly in a higher output. By how many parts can the number of
pieces per year be increased?
Annual production quantity ¼ 12 4500 parts ¼ 54, 000 parts ð33:44Þ
Unit increase ¼ 0:12 54, 000 parts ¼ 6480 parts ð33:45Þ
The output can be increased by 6480 parts per year.

The value added by the assembly cell amounts to 17 Euro per part.
How high is the potential if instead of personnel costs the increase in value per
additionally produced part is used for the calculation?
Potential ¼ 17 Euro 6480 parts ¼ 110, 160 Euro ð33:46Þ
Based on the increase in value, the potential increase in the number of units is
110,160 Euro.
Calculation Task 2
At Knalsch GmbH, improvements are implemented through the use of a new single
automation system. The expenditure for the material and the implementation of the
LCIA solution amount to 1366 Euro once. The optimization reduces the scrap costs by
105 Euro per month and the energy costs by 22 Euro per month. In addition, there is a
one-time saving of 182 Euro by giving tools that are no longer needed to the neighboring
team. The tools are needed there and do not have to be purchased again.
What is the saving in the first year?
Saving ¼ 12 105 Euro þ 12 22 Euro þ 182 Euro ¼ 1706 Euro ð33:47Þ
The saving in the first year is 1706 Euro.

How long does it take until amortization?
1366 Euro
Payback periodFixed ¼ ¼ 0:80 ð33:48Þ
1706 Euro
The expense was amortized after 0.8 years.

Is the payback period within an ideal time frame?
The duration is less than one year and therefore in an ideal time frame.
Index
A Benchmarking, 7, 313
A3, 324, 340 Best point, 281
Accelerator, 414 Block wise processing, 64
Accident, 25, 130 Blue sky, 321, 323
Action plan, 113 BMW, 15, 63, 158, 236, 266
Added value, 24 Bottleneck, 68, 176, 184
Agil, 5, 398 Box pallet, 291
Analysis, 102, 399, 402 Brown field, 266
Anchor, 156 Business administration, 14
Andler’s formula, 61 Business game, 401
Andon, 121
Appreciation, 350
Assembly, 64, 165, 171 C
line, 63 Cardboard
ratio, 75, 111 engineering, 171, 264
seat, 166 simulation, 264
triangle, 164 Cascade, 334, 345
Assignment clarification, 393 Cascading process, 320, 322
Attitude, 351, 371 Cash flow, 207
Audi, 166 Catchball, 322
Audit, 137 Cause, 336
Automation, 37, 176, 377 analysis, 341
Autonomation, 120 effect diagram, 339
Autonomous machine inspection, 182 Chaku chaku, 167, 169
Availability, 179 Chalk circle, 34
factor, 179 Challenge, 10, 199
day, 184
Change, 152
B canvas, 416
Back spike, 398 curve, 410
Backward calculation, 14 level, 409
Baka yoke, 123, 367 management, 204, 409
Balance sheet, 206, 311 Changeover, 185
Balancing, 54–55 in tact time, 190
Basic training, 369 Checklist, 140
Batch size, 16, 60, 92, 185, 190 Chief engineer, 252
Bazaar, 107 Cho, F., 367
Beehive, 107 Cleaning, 182

https://doi.org/10.1007/978-3-658-36087-0
442 Index
Client, 392 D
Coach, 157, 253 Daimler, 385
Coaching, 350, 412 Truck, 158, 369
approach, 6 Data
kata, 354 box, 103
Collection transport, 283 field, 105, 109
Combine, 189 Defect, 31, 308
Commitment, 333 zero, 118, 123, 343
Common part, 241 Delivery, 308
Communication, 334, 401 direct, 292
plan, 410 principle, 285
Company reliability, 49
key figure, 311 Deming
value, 366 chain reaction, 368
Competitive factor, 50 circle/wheel, 154
Complexity, 11, 131 William Edwards, 154
Compressed air, 301 Design, 234
Consolidation, 290 freeze, 250
Consultant, 6 for maintenance, 184
Consumption impulse, 83 for Manufacturing, 237
Contact principle, 124 production-oriented, 238
Continuous improvement, 131 rule, 237
employee-driven, 152 structure matrix, 254
expert-driven, 152 for X, 239
process (CIP), 150, 158 Deviation, 31, 120, 122, 124, 136, 143, 343, 345
Controlling, 24, 206 DfX
Convertible, 56 realization matrix, 252
Core message, 401 sensor, 244
Corporate Digitalization, 376
strategy, 323 Digital Leader, 377
value, 371 Direct delivery, 292
vision, 323 Disassembly, 243, 302
Cost, 14, 15, 308 Discipline, 143, 182
determination, 14 Distribution transport, 283
life cycle, 17 DMAIC, 343
pressure, 10 Downtime, 32, 179, 185
Countermeasure, 341
Crisis, 12, 198
Culture, 4 E
corporate, 202 Ecology, 297
failure, 353 Economic value added (EVA), 312
leadership, 143 ECRS, 189
learning, 353 Effectiveness, 10, 178
Customer, 17, 103 loss, 179
benefit, 118 Efficiency, 10, 178
demand, 54 8D report, 340
order, 93 Eliminate, 189
requirement, 18 E-mail, 227, 379
satisfaction, 18 Employee, 106, 145, 150, 152, 158, 171, 311, 366
sequence, 92, 95 knowledge, 32
tact time, 69, 111 participation, 370
Cycle productivity, 167, 169
check, 345 satisfaction, 366
time, 70 Employment test, 369
Index 443
Empowerment, 370 Focus

Empty board, 184
load carrier, 283 process, 24
run, 29, 291 result, 24
Energy, 27, 30 Folder, 228
efficiency, 300 Ford, H., 11, 63, 130, 196
Engineered hours per vehicle, 243 Forecast, 95
Environment, 206, 296 Forklift, 283
activity, 77 pool, 284
Ergonomics, 26, 28, 165, 298 Frontloading, 254
Error Full load carrier, 283
avoidance, 123 Future state map, 106, 113
prevention, 123
Every part every
day, 185
G
interval, 185, 190
Gaussian bracket, 71, 88
Experience book, 254
Genba, 328
walk, 344
Genchi gembutsu, 199, 328
F General Motors (GM), 198
Factory Glasses, 105
planning, 265 Go and see, 105
symbol, 108 Good part, 179, 308
Failure, 118 Goods-to-picker, 289
culture, 353 Green field, 266
detection, 119
prevention, 119
Final inspection, 118
Fire fighting, 154, 336 H
First-in-first-out (FIFO), 92 Haiki shiki ceremony, 297
lane, 104 Hancho, 122, 384
First pass yield, 119 Hansei, 353
First time Harbour Report, 310
right, 31, 119 Hare, 55
through, 119 hunting, 169
yield, 119 Hawthrone, 369
Fischerwerke, 204, 296, 298, 332, 368 Hazard, 25
Five-cycle check, 345 Health, 223
5M, 340 rate, 308
5R, 82 Heijunka, 54, 105
5S, 133, 227 board, 54, 86
Five times why?, 338 Hierarchy level, 334
5W method, 338 High-wage country, 205
Fixed value principle, 124 Hitozukuri, 367
Flexibility, 56, 167 Hoshin kanri, 320
Flexible manpower system (FMS), 167 Hours per
Flow, 63, 114, 205 unit, 310
assembly, 64 vehicle, 310
factor, 113 Hub, 290
principle, 95 Human
rack, 280 in the center, 199
rate, 112 and machine, 120, 263
Fluctuation, 44, 54, 68 Humanware, 359
444 Index
I board, 398
Idea, 151 production, 85, 105
management, 152 withdrawal, 85, 105
Idle time, 180 Kano, 18
Imbalance, 44 Karakuri, 270
Immediate action, 341 Kata, 157
Implementation, 205, 356, 399 coaching, 354
plan, 324 improvement, 158
Improvement, 152 Key figure, 158, 308, 331
manager, 385 set, 296, 308
suggestion system, 151, 152 value stream, 110, 111
Indirect area, 218 Key performance indicator, 323
Industry, 398 Kiken Yochi Training (KYT), 26
4.0, 377 Kiki, 12
Inefficiency, 219
Inflexibility, 42, 167
Information, 220, 334 L
board, 331 Labor productivity, 369
flow, 102, 225 Large load carrier, 280, 283
Innovation, 152 Last-in-first-out (LIFO), 46, 92
Input, 24 Layered process audit (LPA), 144, 345
Insourcing, 78 Layout, 63, 263
Interdependencies, 204 Leadership, 350
Interface, 102, 218, 220, 225, 376 culture, 143
Interrelationship, 379 excellence, 350
Intervention, 409, 410 philosophy, 370
Intransparency, 220 Lead time, 5, 49, 112, 220, 311
Inventory, 30, 45, 103, 110 Lean, 4, 200
cost, 185 administration, 226
Investment, 167, 273 awareness simulation, 400
Ishikawa, K., 339 development, 251
engineering, 260
enterprise, 206, 351
J expert, 385
Japan, 151, 155, 197, 205 leadership, 214, 350, 351
Jidoka, 120, 198, 199 management, 214
Jinbo, 369 manufacturing, 200
Job office, 226
reduction, 77 principle, 4
structure analysis, 222 production, 4, 200, 204
Just-in-sequence (JIS), 92 production system, 351
Just-in-time (JIT), 82, 92, 198, 199 thinking, 214
production system, 199 transformation, 357
Learning, 354
culture, 353
K factory, 387
Kaikaku, 152 organization, 254, 354
Kaizen, 150, 198, 199 phase, 412
flash, 106, 113, 225 process, 6
point, 152 zone, 354
system, 152, 385 LEGO, 335
workshop, 386 Levelling, 54–55
Kamishibai, 345 Levels of change, 409
Kanban, 84, 89 Lighthouse, 357
Index 445
Line back, 280 Measure, 396

Line balancing, 70, 132 immediate, 122, 412
chart, 73 list, 409
Listening, 106, 300, 314 MECE principle, 394
Load carrier, 280, 283 Media break, 220
Logic tree, 394 Meeting, 227, 328, 334
Logistics, 282 analysis, 223
optimization, 242 Mentee, 350
Loom, 120, 197 Mentor, 350
Loss, 178 Mercedes-Benz, 15, 238, 240, 251
factor, 42 Production System, 202, 387
Low-cost Methods‑Time Measurement (MTM), 70
automation, 270 Milk run, 283
intelligent automation, 273 Mindset, 6
Low-wage country, 205 Minomi, 285
Mistake, 353
Mixed route, 283
M Mizusumashi, 170
Machine, 176, 182 Mock-up, 264
design, 262 Monday car, 53
stop, 120 Monozukuri, 366
supervisior, 182 Moral, 223, 308
Magic triangle, 309 Motivation, 415
Maintainability, 242 Mottainai, 297
Maintenance, 181, 182 Movement, 166
interval, 183 Muda, 26, 367
planned, 183 safari, 34
strategy, 183 Multiple handling, 29
Make Mura, 44
before order, 97 Muri, 44
to forecast, 95
to order, 95
to stock, 95 N
Makigami, 225 Net operating profit after taxes (NOPAT), 312
Malfunction, 28, 182 New Logistics Concept, 290
analysis, 184 New United Motor Manufacturing Incorporated
Management (NUMMI), 198
span, 384 Nissan, 272
system, 199, 204 NLK methodology, 290
Manual activity, 164, 165, 170, 176 Norm, 131
Mass production, 196 North star, 206, 321
Material
flow, 63, 102, 110
handling, 178 O
placement, 280 Obeya, 254
provision, 263 Offcut, 298
supply, 170, 282 Office board management, 328
Maturity level Office floor management, 328
analysis, 223 Oh-No method, 13
assessment, 314 Ohno, T., 12, 13, 26, 55, 73, 83, 123, 130, 198, 387
McDonalds, 141 One-piece flow, 92, 95, 112, 168, 240, 263
Mean time One-touch assembly, 164, 236
between failure, 110 Operating
to repair, 110 profit, 312
446 Index
Operating (cont.) Plant effectiveness, 178

system, 204 Poka yoke, 123, 367
time, 179 Policy deployment, 25, 320
Operations Management Consulting Division Porsche, 13, 290, 329, 385
(OMCD), 387 Potential, 402
Optimization, 37 calculation, 402
Order, 92 Pre-production, 27
cost, 61 Presentation, 401
picking, 288 Principal, 393
Outer packaging, 242 Priority graph, 70
Output, 24 Problem-solving
Overall equipment effectiveness (OEE), 178, 180 process, 122, 335, 339
optimization, 184 sheet, 340
Overall optimum, 102 Process, 24, 103, 109
Overload, 36, 44 data, 109, 110
Overproduction, 27 map, 224
Oversizing, 34 number, 71
Over-supply, 27 observation, 143, 344
over-fulfilment, 29, 30
participant, 225
P stable, 131
Pacemaker, 114 step principle, 125
process, 93 stop, 124
Pacing support, 329
process, 240 time, 112
Packing density, 242 time analysis, 70
Paradigm, 202 Product
Parallelization, 50 creation, 243
Part family, 107 design, 34, 234
Path, 35 development, 235, 250
Payback period, 273, 297, 403 development process, 241
PCS list, 337 life cycle, 30, 250, 296, 302
PDCA, 154, 351 mix, 105
Pearl chain, 92 process matrix, 108
People, 32, 152, 203, 366 recycling, 296
at the center, 367 variance, 11
Perfection, 117, 205 Production
Performance, 310, 415 cell, 167
apparent, 33 job shop, 61
blind, 33 order-related, 61
compression, 36 rate, 70
factor, 180 system, 200, 202
loss, 180 time, 69
principle, 197 traditional, 204
test, 184 Productivity, 121, 169, 178, 310
useful, 33 employee, 167, 169
Personnel Profit, 14
cost, 14 increase, 16
development, 369 and loss account, 311
Perspective change, 401 Project, 392
Philosophy, 150, 199, 202 description, 393
Pick-by-light, 289 management, 255
Picker-to-goods, 289 objective, 394
Piecework wage, 70 room, 254
Index 447
Pull, 104, 205 Rumour, 411

principle, 83, 95 Run-down, 180
Push principle, 60, 95, 105
S
Q Safety, 25, 165, 308
Qualification, 171, 184 factor, 88
Quality, 17, 31, 118, 308 Sales order quantity, 69
alarm, 121, 122, 384 Saving, 403
delay, 61 Scalability, 168
factor, 180 Scrap, 118
loss, 180 Scrum, 5, 398
stop, 121, 122 Searching, 27, 28
Question routine, 157 Seeing, 314
Seiketsu, 136
Seiri, 134
R Seiso, 136
Raku raku, 166 Seiton, 134
Ramp-up, 180 Self-reflection, 353
Range of coverage, 89 Sensei, 350
Rearrange, 189 Sequence, 92, 236, 288
Recycle, 297 quality, 92
Recycling, 243, 302 Service, 17
Re-design, 260 Set-based concurrent engineering, 255
Redistribute, 189 Set in order, 134
Red tag, 134 Set-up
Reduce, 297 cost, 185
Reject, 31 external, 188
Remanufacturing, 302 internal, 188
Repack, 289 time, 28, 61, 185
Reparability, 242 SFTPP, 6, 205
Replenishment lead time, 88 Shadow board, 135, 140
Request, 281 Shift
Residuals, 297, 298 decoupling, 123
Residues, 27 handover, 132
Resistance, 413 time reduction, 78
Resource, 27 Shine, 136
efficiency, 4, 297 Shingo, S., 26, 123
Respect, 199, 352, 367 Shitsuke, 136
Responsibility, 353 Shojinka, 72
Retrospective, 398 Shop floor board, 331
Return on Shop floor management (SFM), 324, 328
investment, 403 digital, 379
net assets, 312 Shopping cart, 282
sales, 312 Short downtime, 180
Reuse, 241, 297 Shukan, 137
Rework, 31 Sickness rate, 308
Risk analysis, 275 Siemens, 243, 344
River Rouge plant, 63, 197 Simplify, 189
Role model, 369 Simultaneous development, 255
Rotation, 166 Single minute exchange of die (SMED), 187
Route diagram, 222 6R, 82
Routine, 157 6S, 137
Rule of 10, 118 Six Sigma, 343
448 Index
Skill, 32 Take-back, 243

Small load carrier, 280, 283 Target, 323
Small part, 164, 234, 239 break-down process, 320, 322
Smart, 63, 265 formulation, 393
SMART, 393 state, 321
Snapshot, 35 unfolding, 322
Socratic questioning, 350, 355 T-card, 345
Sort, 134 Team
Sounding board, 223 board, 328, 331
Space, 27 leader, 384
Spaghetti diagram, 35, 222 work, 199, 367
Special load carrier, 280 Termination criteria, 393
Sprint, 398 Testing, 242
SQDCM, 206, 296, 308, 331 Thinking, 214
Stabilization, 114, 205, 399 People System, 367
Stacking diagram, 73 Three-level model, 370
Standard, 130, 131, 136, 143, 199, 255 3 Mu, 44
description, 130, 140 Timetable, 70
load carrier, 242 Tim Woods, 27, 32
process observation, 344 Top-up, 284
work combination sheet, 141, 170 Tortoise, 55
worksheet, 140 Total
Standardize, 136, 155 cost, 237
Start of production, 250 cost of ownership, 403
Stock, 85 productive maintenance (TPM), 181
in circulation, 46, 92, 112, 168, 185, 263 Toyoda, 197
range of coverage, 89 Eiji, 197
safety, 46, 105 Kiichiro, 197
Storage cost, 185 Sakichi, 120, 197
Store, 85 Toyota, 4, 12, 25, 26, 78, 89, 130, 133, 142, 156,
Strategy, 4, 322, 323, 409 166, 182, 197, 198, 236, 238, 242, 251, 290,
maintenance, 183 309, 310, 351, 366, 369, 387
Superfluous movement, 28 Human Systems Model, 367
Supermarket, 85, 104, 283, 284 Production System, 12, 82, 120, 130, 151, 198,
Supplier, 46, 103, 198, 238, 288 199, 367
Supply, 281 Supplier Support Center, 387
chain, 280 way, 199, 355, 367
chain management, 289 Training, 26, 184, 387
Support function, 78, 122, 383 basic, 369
Sustain, 136 center, 387
Sustainability, 156, 296 session, 400
Sustainable discipline, 137 Transparency, 254, 332
Sweeping, 136 Transplant, 198, 357
Swim lane, 224 Transport, 29, 103
Symptom, 336 cost, 185
Triangular contract, 393
Trolley, 271
T True north, 206, 321
Tact, 114, 205 Trustworthiness, 369
multiple, 74 T-Shape, 385
two, 74 Tugger carriage, 283
Tactical implementation plan (TIP), 324, 396 Two-container principle, 282
Index 449
U W
U-cell, 167 Waiting time, 28, 29
Unit price, 27 Walking distance, 28
Utilization Waste, 26, 220, 298
factor, 179 avoidance, 221
loss, 179 eighth type, 32
free, 4
ninth type, 27, 298
V seven types, 26
Valley of tears, 412 walk, 34
Value stream, 49, 102 Watanabe, K., 355
analysis (VSA), 102 Weekly plan, 398
map (VSM), 102, 106 Withdrawal, 104
mapping, 113, 225 Wobbling beetle, 170
symbol, 103 Work
Variability, 42 breakdown structure, 394
Variance, 236 place, 166, 262, 368
Variants, 74, 111, 239 step sheet, 140
creation, 76, 240 system, 176
placement, 93 time model, 168, 171
reduction, 239 Works council, 106, 368, 380
Variation, 88
Vision, 206, 321
Visual management, 331 Z
Volkswagen, 15, 266, 282, 290, 296, 387 Zero-defect target, 343

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Frank Bertagnolli

ISBN 978-3-658-36086-3 ISBN 978-3-658-36087-0 (eBook)

# Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022

Pforzheim, Germany Frank Bertagnolli

Part I Basics of Lean Production

8 Value Stream . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

12.5 Expert Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

Part II Deepening: Lean Management

17.5 Expert Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244

22.4 Disassembly and Recycling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302

27.4 Sustainable Value Creation Through Appreciation . . . . . . . . . . . . . . 370

Part III Annex

3 Mu Muda, muri, mura

MTM Methods-time measurement

VDI Association of German Engineers

Dissatisfaction is the mother of improvement.

The most important thing is not to stop asking.

# Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 3

1.1 Lean Production

1.2 Is Lean up to Date?

1.3 Lean at Work

1.4 The Lean Production Roadmap

1.5 The Expert Questions

Fig. 1.1 The roadmap through lean production

1.6 Introduction of Knalsch GmbH

To illustrate lean in practice, a company example will serve as a scenario (analogous to

Kai Claus Susanne Joerg Christina

Fig. 1.2 Organization chart of Knalsch GmbH

Knalsch GmbH: New Challenge

# Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 9

2.1 Trends and Challenges

In addition to the achievement of the goal, effectiveness, the concept of efﬁciency is

" Efficiency The ability of management to implement goals as effectively as possible.

Fig. 2.1 Graphical representation of the combinations of efﬁciency and effectiveness

Digital cameras Computer Automobile

2.4 149 18 3 200 109 109

Fig. 2.2 Examples of increasing product variance

Fig. 2.3 Japanese characters for

As a result, crises are important in the context of change and improvement:

A crisis with underemployment can be ideally used for optimizations and

2.3 Business Administration

Price ¼ Cost þ Profit ð2:1Þ

Revenue ¼ Price Quantity ð2:2Þ

Profit ¼ Price Cost ð2:3Þ

1992 1994 1996 1998 2000 2002 2004

Fig. 2.4 Vehicle price development (based on Becker 2007, p. 82)

travel, etc. Lean focuses on the elimination of non-value-adding process components

Quality Service Benefits

Table 2.1 Customer requirements and related requirements for companies

Fig. 2.5 Kano model of customer satisfaction (based on Kano 1984)

2.5 Expert Questions

The Following Questions are Relevant in the Crisis Field

• What is the entrepreneurial response to crises?

Questions About Business Administration

• What is the cost of providing the service?

The Following Questions are Relevant with a Focus on the Customer

• Is it known who the end customers are?

Summary on the Subject of Challenges

• Why are crises also positive?