• In term of Supply Chain Management, what

makes Japan become the Asia Dragon from

the 1960s to the 1980s despite the country’s
lack of natural resources and unfavored
geographical location?

1
Lean System
Session 12 – May 23, 2023
 Learning Objectives
• Explain how the lean system approach improves value for
internal operations and across the supply chain
• Explain the principles of the lean system
• Recognise the strengths and limitations of the lean system
• Differentiate 8 wastes in the lean system
• Describe the basic lean tools and techniques
3
 The story of Industry
Continuity & Variety

Self monitored
machine
Henry Ford
James Wyatt Production process
Steam Engine Assembly Line
Kiichiro Toyoda LEAN
industry No variety Toyota Production
Struck with information System
flow and notification
4
 Lean Production Foundation
• Japanese engineers visit the US to learn/ help reconstruct the Japanese
industrial engine.
• They studied American production methods with paying attention to Ford
production Line
• Japanese market was much smaller, so more flexible system were needed
to produce smaller quantities of different items in the same equipment

5
• https://www.youtube.com/watch?v=F5vtCRFRAK0

6
 Lean systems
• Toyota Production System (TPS)
• Stockless production
• Zero inventories
• Just-in-time (JIT) manufacturing
• Lean production

7
 Lean
Becoming LEAN is a process of
eliminating waste with the goal
of creating value.

Eliminating waste Creating value

8
9
10
The 8 wastes

11
12
13
 Objectives

Customer
wants Quality No waste

Minimum Worker
Features lead-time development
14
Lean Principles

15
Value stream mapping

16
Lean Principles

17
Pull vs. Push system

18
Pull vs. Push system

19
Lean Principles

20
How Lean Production consider inventory?

Obscuring Effect of Inventory

21
How Lean Production consider capacity utilization?

There is no point of producing output just for its own sake

Produce to raise high inventory bring counter-attack
22
How Lean Production consider the role of people?
Lean approach stress the importance of involving all staff in production
• Total quality management
• Lean encourage:
• Team-based solving problem
• Job rotation and multi-skilling
• Personal responsibility
• The “involvement of everyone” principle
Toyota Lean DNA
23
 10 mins
What are the advantages Game of Lean System?
and disadvantages

24
• https://www.youtube.com/watch?v=ZK6vyFz7yrM

25
 Benefits
Increase adaptability • Based on demand rather than pre-emptive projections.

• Productivity and eliminate waste.

More efficiency • A decrease in Cost.

Improved Customer Interactions & • Doing things that drive the greatest value.
Improved focus

• Create a culture that values daily improvement begins from frontline

An Improvement Culture worker.

26
 Disadvantages
Difficult to High Implementation
Change Over Cost

The Time
Element

27
How can we eliminate wastes?
(Different types of waste in your organisation)

28
The 8 wastes

29
 TEAM
DISCUSSION
Determine definition, root causes and example
for each waste.

30
31
• https://www.youtube.com/watch?v=e9Ic1Jdkk6g

32
 How to differentiate
Motion Transportation
• Unnecessary movements • Unnecessary movements
by people (e.g., walking). of products & materials.

33
 CHECK
ATTENDANCE
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BREAK-TIME
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HOW CAN WE APPLY
LEAN PRINCIPLES?

36
 Lean tools
• There are over 50 lean tools that organization can adopt
for lean management.
• Can be selected based on:

37
 Lean tools
• There are over 50 lean tools that organisation can adopt
for lean management.
• Can be selected based on:

Organisation Product Service

38
 Lean tools and techniques
Problem Quality Process
diagnosis tools improvement
• Pareto analysis • Poka-Yoke • 5S
• Ishikawa (fishbone) • 8 Wastes • Visual controls
diagrams • FMEA (Failure • Continuous
• Process mapping mode and effects Improvement
analysis) (Kaizen)
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Process mapping

40
Visual Control

41
Visual Control

42
Fishbone Diagram (Ishikawa) –
Cause & Effect Diagram

43
Fishbone Diagram (Ishikawa)

44
Fishbone Diagram (Ishikawa)

47
Fishbone Diagram (Ishikawa)

48
Fishbone Diagram (Ishikawa)

49
5s concept

51
 5s concept
• A lean manufacturing tool:
• To improve workplace
efficiency.
• And to eliminates waste.

52
 5s concept
1. 2. 3. 4. 5.
SORT SET IN ORDER SHINE STANDARDISE SUSTAIN

Remove Incorporate Commit to a 5S

Organise and Clean and
unnecessary 5S into culture
identify inspect
items procedures
storage regularly
53
 Question from LAST WEEK?
• In term of Supply Chain Management, what
makes Japan become the Asia Dragon from the
1960s to the 1980s despite the country’s lack of
natural resources and unfavored geographical
location?

54
THANK YOU!