Maximizing customer value through reduction of work wastes.
To eliminate muda/waste in all aspects of firm’s production activities: human relations, vendor relations, technology , the management of materials and inventory.
WHAT IS MUDA / WASTE?
Any activity that consumes resources but creates no value is muda/ waste.
SEVEN MUDA IN LEAN MANAGEMENT:
THE CONCEPT OF LEAN MANAGEMENT:
The concept of lean management was developed by the Toyota executive, “Taiichi Ohno “who first identified the seven types of muda / waste. Toyota motor corporation is the world largest automaker by volume. Its vehicle production system is a way of “making things” which is well known and studied worldwide.
The Toyota production system (TPS) was established based on two concepts:
JIDOKA – means when problem occurs, the equipment stops immediately, preventing defective products from being produced.
JUST IN TIME (JIT) – In this second concept, each process produces only what is needed, when it is needed and in the amount it is needed, in a continuos flow.
ISSUES ADDRESSED BY LEAN MANAGEMENT:
- Low productivity
- Prolonged cycle time
- Costly organization
- Dissatisfied customers and employees
LEAN MANAGEMENT APPLICABLE TO:
- Manufacturing industries but can be equally applicable to both services and administration processes.
- Currently also adopted by food manufacturing and meat processing sectors.
5S IN LEAN MANAGEMENT:
5S represents 5 disciplines for mainting a visual workplace ( visual controls and information system). Its basically a strategy for creating a well organized, smoothly flowing manufacturing process. 5S is short for;
SORT (SEIRI) – Sort through items and keep only what is needed while disposing what is not.
STRAIGHTEN (SEITON) – “A place of everything and everything in its place”.
SHINE (SEISO) – The cleaning process often act as a form of inspection that exposes abnormal and pre- failure conditions that could hurt quality or cause machine failure.
STANDARDIZE ( SEIKETSU) – Develop systems and procedures to maintain and monitor first three S’s.
SUSTAIN (SHITSUKE) – Maintain a stabilized workplace is an ongoing process of continuous improvement.
PDCA – PROBLEM SOLVING CYCLE IN LEAN MANAGEMENT:
INTRODUCTION TO PDCA
PDCA was created by W Edward Deming in the 1950’s . His purpose was to use it with a continuous improvement process to help rebuild Japanese industries so that they could compete in the world market in the future.
PDCA cycle consists of ; Plan , Do, Check and Act.
- clarify objectives
- Identify possible causes
- Benchmark best practice
- Identify team roles
- Implement quick fix
- Carry out trials to prove causes
- Analyse data to understand how problem occurs
- Identify possible solution
EVALUATE AND VALIDATE
CORRECT AND STANDARDISE
- Review feedback and make corrections
- Standardise Do, Check, Act.
WHY LEAN MANAGEMEMT IS GOOD:
Because by following lean management concepts organizations can,
- Reduce costs
- Eliminate waste
- Increase productivity
- Maintain high level of quality
- Significant increase in profit
To conclude, I would like to say that Lean management is the process from “Muda” to “Shinrai”.
MUDA /WASTE – ( REDUCE WASTE)
KACHI /VALUE – (ADD VALUE FOR CUSTOMER)
SHINRAI /TRUST- (GAIN TRUST OF YOUR CUSTOMER)
Keep Smiling 😊,