Lean Thinking
The Competitive Edge
Presentation by
VT Milcom for AMMA
Quality Assurance
Definition
Lean generally relates to those best
processes and practices which optimize
resources and yield the best product, in the
fastest manner and at the lowest cost.
It is an umbrella for TQM, continuous
improvement, zero defects, and all the other
terms we have heard used to describe doing
things right the first time and every time.
Knowledge of Variation
• COMMON CAUSES - inherent in the
system or process 94%
• SPECIAL CAUSES - assignable and can be
removed from the system if properly acted
upon - 6%
• LEAN THINKING - reengineering the
whole process so common causes are
greatly reduced.
Value vs. Waste
• Value is defined as anything that positively
changes form, fit or function.
• Waste in manufacturing
Over production; unnecessary
transportation; waiting; excessive
processing; unnecessary movement;
defective parts and poor workmanship.
Lean Means Waste Minimization
• Lean can mean LESS:
rework, manufacturing time, organizational
layers, tools and supplies.
• Lean can mean MORE:
employee empowerment, flexibility and
capability, productivity, quality, customer
satisfaction and long term success.
Principles of Lean Thinking
• Lean is a dynamic process of change and
continuous improvement.
• Lean refers to the TOTAL ENTERPRISE
• Lean requires rooting out everything that is
non - value added.
• Lean provides the competitive edge.
Principles of Lean Thinking
(continued)
• Make value continuously FLOW
Focus on the product and its needs;
All activities occur in continuous flow;
Address needs of employees to make
value flow smoothly.
• Ask the question, “Is this the best product
the system is capable of producing”.
Principles of Lean Thinking
(continued)
• Specific value:
Defined only by the customer
Externally vs. internally focused
Look at existing assets & Techniques
Rethink the business by product
• Analyze the entire VALUE STREAM
Steps that create value
Steps that create no value - necessary
Steps that create no value - avoidable
Principles of Lean
conclusion
• When value is properly specified, the entire
value stream identified and flowing
continuously, PERFECTION becomes
achievable.
• Principles interact to expose hidden waste
in the value stream.
• Dedicated PRODUCT TEAMS find better
ways to enhance flow
Key lean Indicators
• Value Stream • Continuous flow, no
backflow, waste or
waiting
• Flow • Average speed and
total build time
• Supply
• How much inventory
• Every action creates
• Perfection value; improvement in
value ratio, speed, and
inventory.
Lean Plan of Action
• Get Started: The plan
• Find a lean Agent
• Get Lean Knowledge
• Choose a target
• Map Value Streams
• Begin radical
improvements
• Expand the scope
Lean Plan of Action Continued
• Create a new • The Team
organization
• Reorganize product
creating a Lean
process
• Remove anchor
draggers
• Instill a perfection
mindset.
Lean Plan of Action Continued
• Introduce lean policy
development
• Conduct training on
Lean Manufacturing
• Relate pay to
performance
• Transition from top-
down to bottom-up
improvement
Conclusion
• When the business
begins to show
increased customer
satisfaction and
greater profit;
managers then realize
Lean Thinking drives
the COMPETITIVE
EDGE for the
company to thrive.