The Value of Lean Thinking Presented by: Brian D Krichbaum Process Coaching Incorporated.

The Value of Lean Thinking

Presented by:Brian D Krichbaum

ProcessCoachingIncorporated

of 46 © 2008 Process Coaching Incorporated


What is Lean Thinking?

A systematic approach to identifying andthrough continuous improvement

by flowing the service or product at the pullin pursuit of perfection.

eliminating waste

of customers



History of Lean Manufacturing

1798Eli Whitney develops interchangeable parts

1933 - Toyota Motor Company established

1908 through 1913 Henry Ford develops the moving assembly line.

1920’sSakichi Toyoda develops mistake proofing and 5 Whys

August 4, 1937First supermarket in the United States opened

June – August 1950Deming introduces lean quality principles to Japanese engineers and managers

1950’s - Taiichi Ohno develops the Toyota Production System (TPS)



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House of Lean

Empowered Work Teams

Team Based Problem Solving utilizing PDCA cycleMistake Proofing Techniques

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

Pursuit of Perfection(Continuous Improvement)



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



The Eight Deadly Wastes

Overproduction Waiting Transportation (Moving) Non-Value Added

Processing

Excess Inventory Defects Excess Motion Underutilized Resources



Value Added Activity

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

5% Value Added

95% Non-Value Added



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



Lean Manufacturing Principles

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!

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)

Lean Manufacturing PrinciplesSpecify Value



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

Lean Manufacturing PrinciplesIdentify the Value Stream

The Value of Lean Thinking Presented by: Brian D Krichbaum Process Coaching Incorporated.

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Transcript of The Value of Lean Thinking Presented by: Brian D Krichbaum Process Coaching Incorporated.