The Value of Lean

Thinking

Process
Coaching Presented by:
Incorporated Brian D Krichbaum
 What is Lean Thinking?

A systematic approach to identifying and

eliminating waste through continuous improvement
by flowing the service or product at the pull
of customers in pursuit of perfection.

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 History of Lean Manufacturing
1920’s
Sakichi Toyoda
1798 develops mistake
Eli Whitney develops proofing and 5 Whys
interchangeable parts
1950’s - Taiichi Ohno
develops the Toyota
Production System
August 4, 1937 (TPS)
First supermarket
in the United
States opened

June – August 1950

1908 through 1913 Deming introduces lean
Henry Ford develops 1933 - Toyota quality principles to
the moving assembly Motor Company Japanese engineers and
line. established managers

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 House of Lean
Pursuit of Perfection
(Continuous Improvement)

Pull Production Signaling (Takt Time,

Single Part Flow, JIT, Kanban)

Total Equipment Management

Standardized Work and Work

(Preventative Maintainance)

Visual Factory Management

Instructions
Built In Quality

5S, Value Stream Mapping, Kaizen, Work Cell Arrangement

Team Based Problem Solving utilizing PDCA cycle
Mistake Proofing Techniques

Empowered Work Teams

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 Benefits of Lean Production

 Reduction in overhead / operating costs

 Productivity Increase (30% - 40%)
 Throughput Time Decrease (70% +)
 Increase Profit
 Customer Lead Time Reductions (50% +)
 Work in Process Inventory reductions (70%+)
 On Time Delivery to customers (95% +)
 Quality Performance Improvements

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 The Eight Deadly Wastes

 Overproduction  Excess Inventory

 Waiting  Defects
 Transportation (Moving)  Excess Motion
 Non-Value Added  Underutilized Resources
Processing

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 Value Added Activity
5% Value
Added
95% Non-
Value Added

What is value added activity?

 Tasks that customers recognize as valuable
 Tasks that are done right the first time
 Tasks that transform the product or service

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 Lean Manufacturing Principles1

 Specify Value
 Identify the Value Stream
 Make value creating steps flow
 Let the customer pull product
 Strive towards Perfection

1James Womack, Lean Thinking, (Simon & Schuster, 1996), p. 16 - 26

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 Lean Manufacturing Principles
Specify Value
 Correctly specifying value is critical in lean
thinking
 Providing the wrong good or service the
correct way is still waste
 Value must be defined in terms of specific
products at specific prices at specific times
 Only the ultimate customer can define value
– but they often don’t know how to do it!

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 Lean Manufacturing Principles
Specify Value
 Customers and producers must challenge old
value definitions and work together to define
what is needed – not just a better widget
 Look at the “whole” product – not just the
features, but how it is used – to determine it’s
requirements
 Define the Target Cost (the cost of producing
the product waste free)

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Coaching © 2008 Process Coaching Incorporated
Incorporated
 Lean Manufacturing Principles
Identify the Value Stream
 When the steps for producing a product aren’t
identified, they can’t be challenged
 The purpose of value stream mapping is to
identify waste
 We map the current state and the future
(lean) state
 All value streams have internal (our plant) and
external (our plant + suppliers + customers)
components

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Coaching © 2008 Process Coaching Incorporated
Incorporated