„We own LEAN!

„We own LEAN!“

TABLE OF CONTENTS:
„I own LEAN!“ (Video)
What does LEAN mean?
Detailed knowledge: Where does LEAN originate?
Detailed knowledge: How does LEAN work?
Detailed knowledge: Influences
Broadening LEAN
Where is LEAN used?
LEAN in our HR in Basel
LEAN in production in Asia
LEAN in R&D Ludwigshafen
LEAN in the North American supply chain
LEAN is emotional
Conclusion

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„I own LEAN!“ (Video)

In this knowledge module, you will discover what LEAN means, where it comes from and how LEAN
is used. Start the video to begin!

WHAT DOES LEAN MEAN?

The LEAN principle originated in the automotive industry. It describes the economical and efficient
use of all production factors such as equipment, personnel, materials, planning and organization in
all business activities.

The aim is to increase production, improve the quality of products, reduce processing times and
optimize all processes. Customers and their needs are at the heart of this.

Detailed knowledge: Where does LEAN originate?

Detailed knowledge: How does LEAN work?
Detailed knowledge: Influences

DETAILED KNOWLEDGE: WHERE DOES LEAN ORIGINATE?

Let’s take a look at the world at the end of the Second World War. Automobile manufacturer
Toyota was facing a number of challenges, such as a lack of infrastructure and exclusively
domestic demand. Then came a revolution in production.

Tap on the tiles to see how the Toyota production system was created.

Continuous process improvement reduces variability, inflexibility and waste. Products and
processes are improved on a constant basis. Small teams work as independent departments.

PROCESS IMPROVEMENT
If a problem occurs, the process is stopped. No defective processes are tolerated. Any employee

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may intervene when there is a fault; everyone is responsible for quality.

QUALITY
Processing takes place only to the extent required for a continuous flow in the process. The
process should never come to a standstill.

FLOW
“Good is not good enough!”

MOTTO

DETAILED KNOWLEDGE: HOW DOES LEAN WORK?

Take a look at the magic triangle animation to find how optimization of one factor affects the others.

DETAILED KNOWLEDGE: INFLUENCES

Constant process improvement reduces waste, inflexibility and variability. Tap on the terms to see
how processes are improved in this way.

Variability

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Reduction in variability (in Japanese: MURA) means, for example, that

a machine provides quality that is always consistent

an employee always performs consistently
a method always produces precise results.

Variability affects the following process factors: people, materials, methods and machines.

Waste

Waste (in Japanese: MUDA) includes defects, overproduction, waiting time, knowledge that is
not being used, transportation, inventory, motion and unnecessary processing. By reducing
the eight forms of waste, costs and process times can be reduced and problems in processes
can be identified more quickly. Avoidance of waste is the primary aim of LEAN.

Inflexibility

Through reduction of inflexibility (in Japanese: MURI), it is possible to respond faster to

changing customer requirements and to general changes in the environment. Inflexibility
affects the following process factors: people, materials, methods and machines.

BROADENING LEAN

LEAN can now be found in many different industries and in increasingly complex areas. Scroll

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through the slideshow and discover all the areas in which LEAN is being used.

Manufacturing: Automobile industry, shipbuilding, industrial products, aerospace industry

Production: Chemicals, pharmaceuticals, food, paper and cellulose

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Process industries: Hospitality, airlines, banks, railroads

Services: Insurance, retail stores, hospitals, governments

WHERE IS LEAN USED?

LEAN is used across industries and applied to a wide range of business processes. At BASF, LEAN is
used in the following areas, for example:

HR in Basel Production in Asia R&D Ludwigshafen North America supply

chain

LEAN IN OUR HR IN BASEL

BASF employees in HR in Basel now save about 50% of their time by applying LEAN methods in meetings. As a

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result, all employees have more time to carry out their own work. How did they manage that?

Starting position

Team and management meetings were often content-driven and tedious. Important
information and tracking of KPIs are overlooked in this case.

Improvements

Introduction of shorter LEAN admin meetings in which the relevant information is visualized
for all team members. Details of individual topics are discussed in separate meetings with
those concerned. This leads to greater efficiency in preparing, running and taking minutes of
the meeting.

Approach

Workshop on LEAN principles and the principles of visual management for all heads of
division. Subsequent workshops with the team members who introduce the white board or e-
board and implement the new method in the teams. A local LEAN coordination team supports
implementation of the new processes and provides the equipment required.

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LEAN IN PRODUCTION IN ASIA

With new agitators, BASF employees in production in Asia have created a better environment with easier
maintenance, and they have cut power consumption by 65% and improved availability while doing so. How did
they manage that?

Starting position

The ancillary plant in Thane went into operation in 1965. The old agitators were designed for
heavy loads and their electricity consumption was high. After so many years, they had also
become difficult to maintain.

Improvements

Following a phase of analysis, the old agitators were replaced with more energy-efficient
models that are easier to maintain and more suitable.

Approach

First, the extent of the potential improvement in power consumption and the other
advantages were determined. The new models were selected according to the criteria of

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power consumption, maintenance and functionality.

LEAN IN R&D LUDWIGSHAFEN

The R&D department in Ludwigshafen has been able to significantly accelerate its processes for homogenizing
solid samples by replacing one machine. Let’s take a look together at how and why they did this.

Starting position

Solid samples were homogenized by hand or with an analysis mill. This was very time-
consuming, as the mill required 10 minutes of cleaning every time it was used. Nor was it
always possible to reproduce the milling results successfully.

Improvements

The old system was replaced with a new IKA tube mill, which offers disposable milling
chambers and milling programs that can be saved.

Approach

Better and more reproducible milling results can be achieved as a result of replacing the
system. Direct weighing in the milling chamber also streamlines the processes. Time is saved
because cleaning is no longer required and, under ideal conditions, the samples are not cross-

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contaminated.

LEAN IN THE NORTH AMERICAN SUPPLY CHAIN

The Supply Chain North America division had set itself the aim of improving delivery reliability by 5% and cutting
warehouse costs by 50% with the “Railcar Utilization Improvement Project.” Did they manage to achieve this goal?

Starting position

At the start of the project, our delivery reliability for wagon customers was not at the level we
wanted and the warehouse charges were several thousand dollars a year. The full capacity of
some of the wagons could not be used because of their design and they were frequently in the
warehouse; there were also problems with delivery reliability.

Improvements

It was possible to improve delivery reliability for rail significantly. There were also significant
reductions in costs:

Warehouse costs were cut enormously.

By applying new standards and the lessons learned from this project, it was possible to save
several hundred thousand dollars in a new factory.

Approach

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An interdisciplinary team analyzed the potential savings and processes. The opportunities for
improvement identified by the team were achieved in a conversion phase lasting six months.

LEAN IS EMOTIONAL

LEAN combines culture and methods by means of a socio-technical system. In addition to practical
methods, the system takes account of the emotional aspects and soft factors within a company.
Click on the button to find out what else it includes.

Social: Culture, Values, Organization, Behavior

Technical: Structures, Methods, Tools

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USING TACTICS FOR SUCCESS

LEAN is not a sprint, but rather a long-distance race. What is required to integrate LEAN
successfully into everyday working life in the long term? Click on the hotspots.

Note: The only way to optimize your work processes in the long term is by applying all of the
steps in sequence. There is no shortcut!

CONCLUSION

Good! You have completed the first knowledge module. Take a look at the other modules to find
out how you can integrate LEAN successfully into your everyday working life.

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Let's move on

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DISCLAIMER

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