Lean Production Simplified
Fred Taylor and Henry Ford sought to address the weaknesses of craft production. Taylor’s scientific management and Ford’s factory innovations laid the foundation for mass production. Alfred Sloan’s managerial innovations and the role of organized labor in controlling work tasks and job assignments completed the system. Mass production rolled to victory after victory for decades.
Toyota faced daunting financial, technological, and labor relations challenges 50 years ago. Eiji Toyota concluded that mass production would not work in Japan. He and his production genius, Taichi Ohno, created a system that made a virtue of necessity. For example, the unavailability of capital spurred the development of flexible, right-sized machinery and quick changeovers. The legal restrictions on worker layoffs created the company’s image as a community and laid the foundation for intense employee involvement and problem-solving.
It took almost 30 years to perfect and drive his system through Toyota. He established the Operations Management Consulting Division (OMCD) to support Lean thinking in Toyota plants and suppliers. The system would have been remarkable under any circumstances. But today, we face the same daunting problems that Toyota faced half a century ago. Ohno’s approach is more relevant than ever.
A central goal of the lean system is to eliminate waste to improve profitability, the only effective strategy under the new economics. Lean activities are interrelated, mutually supportive, and informed by the same thinking.
The eight different kinds of muda (“waste”) are core lean attributes, as are the related concepts of mura (“imbalance”) and muri (overburden). Overproduction is the most severe waste. But Lean production is more than a scavenger hunt for muda. The positive goals of Lean production include creating flow so that the customer can pull and involving our workers in improvement activities.
5S and TPM are two keys to achieving production stability. 5S is a workplace optimization and standardization process aiming to support visual management. Visual management is managing by exceptions in a visual Gemba. Out-of-standard conditions are apparent and can be quickly corrected by countermeasures.
5S typically leads to Total Productive Maintenance (TPM), where production team members become involved in basic maintenance activities. TPM suggests the six significant losses that afflict equipment. The Machine Loss Pyramid concept highlights the importance of identifying hidden and minor failures. We harvest substantial benefits by involving our production team members in checking and improving equipment performance.
Standardized work is a process whose goal is to identify muda so that we can continually improve through team member involvement. Lean production and methods engineering differ substantially in their approach to standardized work. Through standardized work, we can enhance labor density by increasing the amount of value-added work in each process. We also seek to improve efficiency by reducing the workforce. Workers freed up by kaizen activity are redeployed. The implicit goal of standardized work is Kaizen.
JIT means producing the right part in the correct quantity at the right time. The objective of JIT is to create a constant flow of value so that the customer can pull. JIT supports quick response to customers, a better sense of takt time, and abnormality control. The JIT system comprises Kanban and production leveling or heijunka—the six Kanban rules.
Rule 1 – Never Ship Defective Items
Rule 2 – The Customer Withdraws Only What Is Needed
Rule 3 – Produce Only the Quantity Withdrawn by the Customer
Rule 4 – Level Production
Rule 5 – Use Kanban to Fine-Tune Production
Rule 6 – Stabilize and Strengthen the Process
And the three types of pull systems.
Type “A” Pull Systems are the most common and require replenishing or plugging gaps created in the finished goods or parts store when the customer withdraws an amount or product.
Type “B” Pull Systems are used when order frequency is low and customer lead time is long (e.g., custom producers). The pacemaker is usually farther upstream than in Type A systems. Downstream work proceeds sequentially through FIFO (first in, first out).
Type “C” Pull Systems are a combination of types A + B running in parallel. High-frequency orders are put through an A system, and low-frequency orders are placed through a B system. Type C systems work best for manufacturers producing both high and low-frequency items.
Conveyance takes on greater importance in the Lean system. Both fixed time and fixed quantity conveyance are possible. Value stream mapping is a language that helps us grasp our current condition and identify Kaizen opportunities.
The Jidoka concept was invented by Sakichi Toyota and developed and expanded by Shigeo Shingo. Jidoka is essential to achieve our best quality targets at the lowest cost in the shortest lead time. Jidoka requires a fundamental rethinking of quality management, away from statistical quality control and toward 100% inspection and poka-yoke. A poka-yoke is a simple, inexpensive, and robust tool that inspects 100% of items, detects errors that might lead to defects, and provides quick feedback to take countermeasures. Team members are the best source for polka-yolks.
Poka-yokes either shut down equipment or warn when an error has been detected. Poka-yokes typically identify abnormalities in product characteristics, differences concerning a fixed value, or missing process steps. Sensor technology is a rich field that produces unlimited support for poke-yoke development. Sensors can be contact or noncontact type.
Manufacturing Glossary
Lean production constitutes a language, much of which is Japanese. Japanese words tend to be visual and symbolic. Often, there are no English equivalents. The definition in this glossary tries to provide the nearest English equivalent and the most vivid metaphor to convey the meaning as closely as possible.
4 M’s: Man/woman, machine, material, and method.
Affinity diagram: A tool for collecting and combining ideas; one of the seven quality tools used in hoshin planning.
A3 Thinking: A3 thinking is typically a problem-solving decision-making and collaborative management tool. The name three refers to the A3-sized paper that outlines goals, ideas, problems, and solutions in the A3 thinking process.
Andon: Andon is a mechanism workers can use to stop the production line or process immediately once a defect is detected. This is an excellent example of Jidoka, which elevates the importance of immediate action to prevent defects from escalating.
Check gambutsu: Examining physical objects in the gamba when fact-finding to determine the root cause of problems.
Continuous flow: in the purist, materials are processed and moved directly to succeeding processes one unit at a time; each step completes its work just before the next step needs the unit. The transfer batch size is one (1), also known as one-piece flow (make one, move one)
Conformance: A positive indicator that a product or service quality meets the requirements of a specification, contract, or regulation.
Control chart: A chart with top and bottom limits on which values of some statistical measures for a series of data are plotted. The chart shows a central line to help identify a trend of values towards either control boundaries.
Cost: When used in the context of quality cost and delivery (QCD), the word cost usually refers to cost management, not cost-cutting. Cost management refers to managing various resources properly and eliminating all sorts of muda so that the overall cost decreases.
Cross-functional management: An interdepartmental management activity to realize QCD’s new
Cycle time: The actual time an operator takes to process a piece of product.
Delivery: When used in the context of QCD, the word delivery refers to meeting a customer’s delivery and volume requirements.
Don’t accept it, don’t make it, don’t send it. A common-sense slogan to be implemented in the Gemba that puts into practice the belief that quality is the priority in any program of QCD; For example, don’t accept inferior quality from the previous process, don’t make rejects in one’s product, and if a reject has been produced don’t knowingly send it to the following procedure.
Failure tree Analysis: Failure tree analysis is used to analyze and avoid safety and reliability problems in advance by identifying cause and effect relationships and the probability of the issues using the tree diagram.
5 golden rules of Gemba management: A set of the most practical reminders by implementing Kaizen in the Gemba. (1) go to the gamba when problems arise, (2) check gambutsu, (3) take temporary countermeasures on the spot, (4) find and eliminate the root cause, and (5) standardize to prevent reoccurrence.
5M’s: 5M is a method for managing resources in the Gemba. Specifically, those are 5M manpower, machine, material, method, and measurements.
5 S’s: 5S is a checklist for Good Housekeeping to achieve greater order, efficiency, and discipline in the workplace. It is derived from Japanese words and adapted to English equivalents of sort, straighten, scrub, systemize, and standardize.
Five Why’s: A method of root cause analysis used in problem-solving in which the question “why” is asked repeatedly until the underlying cause is determined.
Flow production: One of the fundamental pillars of the JIT production system. In flow production, machines are arranged in the order of processing so that the workflow of the workpiece flows between processes without interruption or stagnation.
Gemba: A Japanese word meaning “real place” – now adapted to convey “workplace” where value is added. In production, it usually refers to the plant floor.
Gembutsu: The tangible objects in the Gemba are workpieces, rejects, jigs, tools, and machines.
Go to the gemba: The first principle in gemba kaizen. This is a reminder that whenever an abnormality occurs, or a manager wishes to know the current state of operations, they go to the gemba immediately because gemba is the source of all information.
Heinrich’s law: A principle related to the occurrence ratio of accidents. With injuries, Heinrich explains the ratio as follows:
Serious injury: minor injury: no injury = 1: 29: 300
This equation expresses that when you see one person seriously injured by an accident, the same accident might have hurt 29 people slightly. At the same time, there might have been 300 people who, luckily, were not injured but experienced the same accident.
Hosin Kanri: is the management system that helps an organization remain competitive year after year by keeping the entire organization aligned and focused on achieving well-defined and shared goals. It starts with the firm strategy, then several-year goals, and then cascades vertically and horizontally so everyone has aligned objectives for each year. Individual improvement efforts should be aimed not only at making the person more productive and effective but also at achieving the organization’s overall goals. The planning process and execution provide leaders opportunities to coach at each level and develop people.
Industry 4.0: Industry 4.0 refers to connecting intuitive “Smart” production systems designed to sense, predict, and interact with the physical environment to make decisions that support production in real-time. In manufacturing, it can increase productivity, energy efficiency, and sustainability.
IoT (Internet of Things): The concept of connecting any device to the Internet and other connected devices. This includes everything from cell phones to manufacturing equipment and vehicles. Advanced systems use cameras and sensors to collect data and artificial intelligence to analyze the data and provide direction, for example, equipment maintenance.
Ishikawa (fishbone) diagram: A diagram initially developed by Professor Kaora Ishikawa to show causes (process) and effects (result). The chart determines the natural causes and is one of the seven essential problem-solving tools.
Jidoka (Automation): A device that stops a machine whenever a defective product is produced. This device is essential in introducing just-in-time (JIT).
JIT (just-in-time): A system designed to achieve the best possible quality, cost, and delivery of products and services by eliminating all kinds of muda in a company’s internal processes and delivering products just-in-time to meet customers’ requirements. Initially developed by Toyota Motor Company, it is also called the Toyota Production System, the Lean Production System, and the Kanban system.
JK (jishu kanri) Means “autonomous management” in Japanese and refers to workers’ participation in Kaizen activities as a part of their daily activities under the guidance of a line manager; it is different from quality circle activities, which are voluntary and are carried out by the worker’s own accord.
Juno is a logistics system that prepares and delivers materials to the line or point of use in the use sequence. The Japanese word for “sequence” is Juno.
Kaizen concepts: Major concepts that must be understood and practiced by implementing Kaizen.
Kaizen story: A standardized problem-solving procedure to be used at each level of an organization. A Kaizen story has eight steps: (1) select a project, (2) understand current situations and set objectives, (3) analyze data to identify root causes, (4) establish countermeasures, (5) implement countermeasures, (6) confirm the effect (7) standardize and (8) review the preceding process and work on the next steps.
Kaizen systems: Major systems must be established to attain a world-class status.
Kata: Kata has two meanings. One is in the form or way of doing things, and the second is the pattern of movements to be practiced in developing A fundamental skill. The improvement kata (IK) model consists of four steps that reflect thinking scientifically about the direction of the current situation. Short-term targets and experimental practice routines have been designed for the coaching Kata (CK) centered on questions that help the coach keep the learner on track following the kata until thinking scientifically comes naturally.
Kanban: A communication tool in the JIT system whenever batch production is involved; a Kanban, which means a “signboard” in Japanese, is attached to a given process in the production line, instructing the delivery of a given quantity. When the parts have been consumed, the Kanban is restored to its standard, where it becomes an order to produce more.
Kosu: Manufacturing operations can be divided between machine hours and personal hours. Kosu refers to the specific personal hours to produce one product unit in a given process. It is calculated by multiplying the number of workers involved in an operation by the actual time it takes to complete the process and dividing that by the units produced. It is used as a measure of operators’ productivity. Kosu reduction is one of the critical measures of productivity improvement in the gemba.
Key Performance Indicators (KPIs): A common term in business that refers to a standard set of metrics to elevate performance. Key performance indicators are measurements and metrics supporting and facilitating an organization’s critical goals. Toyota visually displays KPIs on graphs and charts and sets targets, for example, through hoshin Connery, to motivate improvement activities.
Lean: The philosophy, tools, and techniques for thinking, organizing, and performing work that causes hidden waste to be illuminated. With the waste uncovered, a company can devise and implement strategies and practices to reduce or eliminate it. Also called the Toyota Production System (TPS).
Morning market. A daily routine at the gemba that involves examining rejects (gembutsu) made the previous day before work begins so the countermeasures can be adopted as soon as possible based on gemba genbutsu principles. This meeting involving the gemba people and not staff is held first thing in the morning.
Muda: The Japanese word meaning “waste,” which, when applied to workplace management, refers to a wide range of non-value-added activities. In the gemba, there are only two activities: value-adding and non-value-adding. In gemba kaizen, efforts are directed first to eliminate all non-value-adding activities. Eliminating muda in the following areas can significantly improve QCD: overproduction, inventory, rejects, motion, processing, waiting, transport, and time. Muda elimination optimizes the low-cost, common-sense approach to improvement.
Mura: Unevenness that results from an off-beat production schedule or fluctuating production volumes due to internal problems like downtime, missing parts or defects, or unevenness in production levels makes it necessary to have on hand the equipment materials and people of the highest level of production even if the average requirements are far less and unevenness leads to too little work sometimes and overburden at other times
Muri: Overburdening people or equipment. Muri is pushing machines or people beyond natural limits. Overburdening people results in safety and quality problems, and overburdening equipment causes breakdowns and defects. In other words, Murray can cause muda; even worse, overburdening people can cause health and safety problems.
OEE Stands for (Overall Equipment Effectiveness) and is a metric used to measure the effectiveness and performance of manufacturing processes or any individual piece of equipment. It supplies insights into how healthy equipment is used and how efficiently it runs in producing products or delivering services.
One-piece flow: Only one workpiece is allowed to flow from process to process to minimize muda in a JIT production system.
Pareto chart: A graphic tool for ranking causes from most to least significant. Based on the Pareto rule, 80% of effects come from 20% of the causes. The Prado chart is one of the seven essential tools of problem-solving.
PDCA (Plan- do- check-act): The basic steps to be followed in making continual improvement Kaizen
Pull production: One of the basic requirements of the JIT production system. The previous process produces only as many products as the following procedure consumes.
Push production: The opposite of pull production. The process produces as much as it can without regard to the requirements of the following procedure and sends them to the following method, whether there is a need or not.
QA Best-Line Certification: An in-house certification system to certify a world-class quality assurance performance of a particular process.
QCD (quality, cost, and delivery): Quality, cost, and delivery are regarded as the ultimate goals of management. When management successfully achieves QCD, customer satisfaction and corporate success follow.
QCDMS: In the gamba. Often, M (morale) and S (safety) are added to QCD as targets to be achieved.
QFD (quality function deployment). A management approach to identify customer requirements first and then work back through the stages of design, engineering, production, sales, and after-service of products.
Quality: In the context of QCD, quality refers to the quality of the products or services delivered to the customer. In this instance, quality refers to conformance to specifications and customer requirements. In a broader sense, quality refers to the quality of work in designing, producing, delivering, and servicing the products and services.
Quality circles: Quality improvement or self-improvement study groups composed of fewer employees (10 or fewer). Quality circles originated in Japan and are called quality control (QC) circles. The QC circle voluntarily performs improvement activities within the workplace, carrying out its work continuously as part of a company-wide program of education, quality control, employee development, and productivity improvement.
Scientific Thinking: Scientific thinking acknowledges our comprehension is incomplete and the future is uncertain, so it works to test ideas and learn from the tests. Toyota takes a fact-based iterative learning approach to overcome complex challenges. Scientific thinking at the center of Toyota way 4P’s philosophy processes people and problem-solving
SDCA (standardize-do-check-act): The basic steps to be followed to maintain the current status.
Sensei: Honored teachers who have achieved mastery in a particular area. A lien sensei has repeatedly demonstrated proficiency at the gemba, whether they are called a coach, teacher mentor, or sensei experts in the lien have been instrumental in teaching the Toyota production system within Toyota, particularly as it expanded among its suppliers into other countries.
Standardization: Standardization is one of the three fundamentals of gemba kaizen activities and means documentation of the best way to do a job.
Standardized work: An optimal combination of worker, machine, and material. The three elements of standardized work are takt time, work sequence, and standard work in process.
Standards: The best way to do a job, namely, a set of policies, rules, directives, and procedures established by management for all primary operations that serve as guidelines that enable all employees to perform their jobs to ensure good results.
Storeroom: A place where work-in-process and supplies are stored in the gemba. A storeroom differs from an ordinary warehouse because only standardized inventory is kept there.
Suggestion system: The suggestion system is a highly integrated part of individual-oriented Kaizen. The system emphasizes morale-boosting benefits and positive employee participation over stressed economic and financial incentives.
Takt time: The theoretical time in which a producer must produce a product ordered by a customer. Takt time is calculated by dividing the net available production time by the units required.
Three M’s (3M): Muda (“waste”), Mura (“variation”), and Muri (“overburden”). These three words are used as Kaizen checkpoints to help workers and management identify the areas for improvement.
Total productive maintenance (TPM): Total productive maintenance strives to maximize equipment effectiveness throughout equipment life. TPM involves all departments and at all levels. It motivates people for plant maintenance through small-group and autonomous activities. It involves such essential elements as developing a maintenance system, education, basic housekeeping, problem solving skills, and activities to achieve zero breakdowns and an accident-free environment. Autonomous maintenance by workers is one of the essential elements of TPM 5S and is an entry step of TPM.
Total quality control (TQC): Organized Kaizen activities on quality involving everyone in the company – managers and workers – in an integrated effort toward Kaizen at every level. These activities are assumed to ultimately lead to increased customer satisfaction and the business’s success.
Total quality management (TQM): see: Total quality control (TQC)
Toyota Production System: Toyota’s unique approach to manufacturing and the basis for much of the lean production movement that has dominated manufacturing and service trends for over 30 years led by Taiichi Ono TPS was constructed in a time of low demand and a high need for variety in Japan which necessitated a manufacturing approach that allowed for quick changeovers low inventories and flexibility based on the philosophies of judoka and just in time TPS can efficiently produce products of good quality one at a time that fully satisfy customer requirements
Value analysis: A method for cost reduction introduced by L.D. Miles at General Electric in 1947. It aims to reduce material and component costs at the upstream stages of designing and design reviews. It involves cross-functional collaborations of product design, production, engineering, quality assurance, and manufacturing; VA is also employed for competitive benchmarking.
Value engineering (VE): A method and practice for cost reduction to achieve the original specification through alternative designs, strategies, and materials.
Visual management: An effective management method to provide information and genbutsu visibly to workers and managers so that everybody understands the current state of operations and the target for Kaizen. It also helps people to identify abnormalities promptly.
Value Stream Mapping: A method to understand the material and information flow in a sequence of work processes. The current state map depicts how value flows to the customers and the various ways that are obstacles to this flow. The future state map is an aspirational vision of how material and information need to flow to achieve business objectives,
Zero Loss Thinking: Zero-based, or zero loss, thinking is a performance management mindset in which there is no acceptable level of failure: no poor quality. No breakdowns. No delays. No customer complaint processes.
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