Many companies all over the world are embracing a business philosophy known as “Lean Manufacturing” to compete successfully in the global market. Lean manufacturing is a management philosophy derived mostly from the “Toyota Production System (TPS)” developed by Taiichi Ohno – an engineer in Toyota Motor Corporation in Japan. Two distinctive practices of TPS are “Just-in-time” manufacturing (also known as Kanban system) and continuous improvement (through quality circles). The TPS is a major part of the more generic “Lean Manufacturing”.
Lean manufacturing is a systematic approach to identifying and eliminating waste through continuous improvement, flowing the product at the “pull” of the customer in pursuit of perfection.
The major purposes of the use of Lean manufacturing are to increase productivity, improve product quality and manufacturing cycle time, reduce inventory, reduce lead time and eliminate manufacturing waste. Lean manufacturing (also known as Lean production) uses several concepts such as one-piece flow, kaizen, cellular manufacturing, synchronous manufacturing, inventory management, poka-yoke, standardised work, workplace organisation (Japanese 5 ‘S’ house-keeping practice) and scrap reduction to reduce manufacturing waste. In Lean production systems, attempts are made to eliminate waste through continuous improvement of processes of the entire value chain in the organisations. The main reasons for adopting a Lean production system are : (i) reducing production resource requirements and costs, (ii) increasing customer responsiveness and (iii) improving product quality. The end results are enhanced customer satisfaction, higher company profits and improved company competitiveness.
Eventhough the concept of Lean manufacturing originated in Japan in the 1980s (in the form of Toyota production system at Toyota Motor Corporation) and later on followed by Western manufacturers, the adoption of Lean approaches in India has been much slower and sluggish. Indian industries find many challenges in adopting “Lean thinking” as a standard manufacturing practice.
This book has been organised into ten chapters and provides a basic insight to the concept of “Lean Production” or “Lean Manufacturing”. Chapter 1 deals with the topic of “Manufacturing competitiveness” which is the reason for implementing Lean manufacturing approach.
Chapter 2 deals with “Lean Basics” describing the fundamental elements of Lean such as “Lean thinking”, “Lean principles”, “Lean Tools and Techniques”, “Lean Culture” etc.
Chapter 3 gives an overview of “Lean management” which comprises “Lean manufacturing”, “Lean production”, “Lean culture”, concepts of “Lean enterprise”, “Lean office”, “Lean product development”, “Lean procurement”, “Lean logistics and supply chain management”, “Lean Six-Sigma” etc.
Chapter 4 is about “Lean thinking” and chapter 5 deals with “The Lean Culture” which are essential for implementation of Lean approach.
Chapter 6 describes the “Toyota Production System” and “The Toyota Way”.
Chapter 7 discusses the basics of “Lean Manufacturing” and chapter 8 deals with “Lean Production System Design”.
Chapter 9 discusses various “Lean Tools and Techniques” used in Lean manufacturing and Chapter 10 describes how Lean is implemented in organisations.
In a nutshell, these ten chapters attempt to give the basic idea of Lean approach in manufacturing organisations and basic knowledge to students of engineering and management specialising in the field of operations management and industrial engineering and management. This book may also be useful to practicing operations management executives to gain basic knowledge regarding “Lean” and apply the same in their field of work.
Contents –
Chapter 1. Manufacturing Competitiveness
Introduction, Competitiveness, Dimensions of Competitiveness, Why Organisations Fail or Perform Poorly in the Competition Front?, Productivity as a Measure of Competitiveness, Productivity, Competitive Priorities, Achieving Competitive Advantage through Production/Operations, Competing on Differentiation, Competing on Cost, Competing on Response, Competitive Advantage, Competitive Advantage through JIT and TQM, Features of JIT/TQM Organisations, Global Competitiveness, Competitive Priorities of Manufacturing, Changing Competitive Priorities, From Manufacturing Competitiveness to World-Class Manufacturing, Areas of Manufacturing Competitiveness, Measures of Competitiveness, Becoming World-Class, World-Class Manufacturing, Reality of Global Competition, Relevance of TQM in World-class Manufacturing, Rapid Expansion of Advanced Manufacturing Technology, Continued Growth of the Service Sector, Scarcity of Production Resources, Social Responsibility Issues, World-Class Manufacturing Strategy, Path of World-Class Manufacturing, World-Class Service Delivery, Road to World-Class Performance, World-Class Companies in the 21st Century, Principles-based Management, Lean Production or Lean Manufacturing, Lean Production, What is World-Class?, Are World-Class and Lean Production Synonymous?, Does Manufacturing Still Matter?, What Drives Global Manufacturing Competitiveness?, Major Drivers of a Nation’s Competitiveness, the Future of Manufacturing, Overall Conclusions, What Trends are Shaping Manufacturing Competitiveness Today and in the Future?, Competing in Global Industries : Challenges for India, Relevance of Lean Manufacturing and World-Class Manufacturing to Improve Manufacturing Competitiveness, Race without a Finish Line.
Chapter 2. Lean Basics
Introduction, History of Lean, Lean Production versus Traditional Mass Production, What is Lean?, Why Use Lean?, The Logic of Lean, Where to Apply Lean?, Fundamentals of Lean, Lean Thinking, Lean Principles, The Lean Principles Defined, Areas of Waste, Value Stream Mapping, Lean as a System, Components of the Lean Implementation Process, Lean Planning, Lean Concepts, Lean Tools and Techniques, Lean Culture, The Foundation and Language of Lean, Creating the Foundation, Kaizen, Flow, Pull (Pulling through the System), Perfection (Striving for Perfection), Learning from Toyota Production System (TPS), Building on the Foundation, Wage War on Waste, Understanding Lean Concepts, Key Goals of a Lean System, Lean Tenets, The Lean Approach, Benefits of the Lean Approach.
Chapter 3. Lean Management – An Overview
Introduction, Significance of Lean Management, Function, Benefits, Considerations, Effects, Metrics, Lean Management Philosophy, Lean Implementation, Lean Operations, Lean Manufacturing, Production and Management Principles, Design and Product Development, Lean Production, Supply Chain Management and Supplier Relationships, Lean Services, Lean Construction, Lean Culture, Lean Management System, Features of Lean Management, Principal Elements of Lean Management and their characteristics, What is Lean Management?, The Two Pillars of Lean Management, The Origin of Lean Management, How Lean Management Functions?, Lean Methodology Deployment, Five Fundamental Lean Management Principles, Benefits of Lean Management.
Chapter 4. Lean Thinking
Introduction, Lean Thinking Origins, The Lean Journey, Lean Thinking versus Muda (Waste), Principles of Lean Thinking, Beyond the Five Principles, Mura and Muri, 5 ‘S’ Methodology, The Lean Thinking House, The Two Pillars of Lean Thinking, Lean Goal, Lean Foundation (Lean Thinking Managers – Teachers), Pillar One : Respect for People, Pillar Two : Continuous Improvement, 14 Principles of Lean Thinking, Lean Product Development, Applying Lean Thinking to Transform your Business, Getting Started, Find a Change Agent, Get the Knowledge, Find a Lever by Seizing the Crises or By Creating One, Forget Grand Strategy for the Moment, Map Your Value Streams, Begin as Soon as Possible with an Important and Visible Activity, Demand Immediate Results, As Soon as You Have Got Momentum, Expand Your Scope, Creating an Organisation to Channel Your Streams, Reorganise Your Firm by Product Family and Value Stream, Create Lean Promotion Function, Deal with Excess People at the Outset, Devise a Growth Strategy, Remove the Anchor-Draggers, When You Have Fixed Something, Fix it Again, Install Business Systems to Encourage Lean Thinking, Completing the Transformation, Convert from Top-down Leadership to Bottom-up Initiatives, Time-frame for the Lean Leap, The Next Leap, Benefits of Lean Thinking, The Implications of Lean Thinking.
Chapter 5. The Lean Culture
Introduction, Organisational Culture, What is “Culture”?, What is Lean Culture?, Characteristics of Lean Culture, The Four Dimensions of Lean Culture, Lean as a Philosophy or Culture, Lean as a Cultural Issue, Cultural Change must Precede Lean Implementation, Developing Lean Culture, Leadership, Communication, Empowerment, Team Work, Creating and Sustaining Lean Culture for Continuous Process Improvement, Changing the Way People Work, Assessing Organisational Culture, Getting the Culture to the Starting Line, Identifying the Current State of the Organisation, Defining Lean Principles in an Organisation, Measuring the Gap, Changing the Organisation, Five Phases of Change, Road Blocks to Success, Lean State of Mind, Human aspect of Lean, Role of Human Resource Management in Lean, The Human Side of Change, Change and the Individual, Individual Resistance to Change, Embracing Change the Lean Way, Aligning Personal Principles with Lean Principles, Acting Lean, Learning Styles, Leadership for Lean Culture, Culture, Reinforcement and Persistence, Lean Leadership Attributes, Lean Leadership and Culture, The Power of Why?
Chapter 6. Toyota Production System and The Toyota Way
Introduction, Goals of TPS, Origins and Philosophies behind the Toyota Production System (TPS), Overview of Toyota Production System (TPS) Model, Two Primary Pillars of TPS, Respect for People, Focus areas of Toyota Production System (TPS), Eliminating Waste, Quality, Cost, Productivity, Safety and Morale, From JIT Production System to Toyota Production System, History and Development of JIT Philosophy, Origin of Toyota Production System, Toyota Production System – Lean Production and JIT Prototype, Principles of Toyota Production System (TPS), Reduced Set Up Times, Small-lot Production, Employee Involvement and Empowerment, Quality at the Source, Equipment Maintenance, Pull Production, Supplier Involvement, Flexible Resources, Cellular Layouts, Uniform Production Levels, Toyota’s Success Story, About Toyota Motor Corporation, What is the Secret of Toyota’s Success.
Chapter 7. Lean Manufacturing
Introduction, Lean Manufacturing Defined, What is Lean Manufacturing?, Principles of Lean Manufacturing, Differences between Traditional Manufacturing and Lean Manufacturing, Push versus Pull, The Benefits of Lean manufacturing, Operational Improvements, Administrative Improvements, Strategic Improvements, Why Implement Lean Manufacturing?, History of Lean Manufacturing, Origin of Lean Manufacturing and the Toyota Production System in Japan, Evolution of Lean Manufacturing in Japan, Lean Manufacturing : a “Holistic” view, Description of the Five Primary Elements, Lean Manufacturing Approach, Lean Manufacturing Process, Tools to Reduce Waste, Ten Steps of Lean Manufacturing, Lean Manufacturing Strategy, Staying the Lean Course, Toyota’s Lean Manufacturing Strategy, Lean Manufacturing as a Business Strategy, Lean Manufacturing Tools and Techniques, 25 Essential Lean Tools, Lean Manufacturing and JIT, Toyota’s Six Rules to Implement Kanban, Lean Manufacturing and Kaizen (Continuous Improvement), Lean Manufacturing and 5 ‘S’ Methodology, Lean Manufacturing and Lean Six-Sigma, Lean Manufacturing and the Environment, Lean Manufacturing and Cellular Manufacturing, Implementing Lean Manufacturing.
Chapter 8. Lean Production System Design
Introduction, What is Lean Production?, Lean Production – A Conceptual Definition, Benefits of Lean Production, Advantages and Disadvantages of Lean Production, What is Lean Production system?, Lean Production Systems Eliminate Wastes, Key Features or Principles of Lean Production, Features of Lean Production, Why Lean Production?, History of Lean Production, Lean Production Overview, Comparison of Batch Production, Mass Production and Lean Production, Lean Production and Just-in-time Production, Basic Elements of Lean Production System, Flexible Resources, Cellular Layouts/Cellular Manufacturing, Pull Production System, Kanban Production Control, Small-lot Production, Quick Set-ups, Benefits from Simplified Set Ups, Set up – Reduction Methodology, SMED Methodology for set up Reduction, Techniques for set up Reduction, Uniform Production Levels (Production Smoothing), Quality at the Source (Jidoka), Total Productive Maintenance, Supplier Networks, Group Technology and Lean Production, Lean Production versus Agile Manufacturing, Lean Production versus ERP Systems, Manufacturing Planning and Control Systems, Lean Production versus ERP Systems, Lean Production versus Total Quality Management, Comparision between Lean Production and Total Quality Management, Basic Assumptions, Change Principles, Interventions, Lean Production and Six-Sigma Integration (lean six sigma), Lean Six-Sigma, Combining Lean and Six-Sigma, Lean Production Systems, Design of Production Systems, Lean Production System Design, Production System Design, Lean Production Systems in Practice, The Basic Pillars of Lean Production Systems, Lean Plant Layout, Challenges Facing Design of Lean Plant Layout, People versus Products, Lean Production Planning and Control, The Lean Approach to Production Planning, Applying Lean Principles to Production Scheduling, Lean Planning, Lean Planning Principles, Lean Capacity Planning, Lean Inventory Control, Develop on Approved Stock List, Steps to Effective Inventory Management, Inventory Replacement / Reordering, Inventory Check-List, Lean Material Handling System, Application of Little’s Law in Lean Production, Taking Advantage of Little’s Law, Lean Production Control, Application of Lean Production Control Methods within a Process Type Industry, Leadership for Lean Production, Team Performance for Lean Production, Leader Standard Work, Benefits.
Chapter 9. Lean Tools and Techniques
Introduction, Lean Tools and Techniques – An Overview, Customer and Value-stream Tools, Working with the Value-Stream, Flow and Pull Tools, Preventing Blockages to Flow, Devising Flexible and Reliable Equipment, Mastering the Quick Change, Smoothing Out the Bumps, Signaling Replenishment, Choosing Logistics, Perfection Tools, How to Create Standardised Work?, Improving with Kaizen, The Kaizen Event, Visual Management Tools, Everyday Improvement Tools, The 5 Whys, The Seven Basic Tools of Quality, Using Qualitative Tools, Management Tools, Management Information Tools, Customer and Value-stream Tools, Quality Function Deployment and House of Quality, Kano Modeling, Benchmarking, Value Stream Mapping (VSM), Visualising the Value Stream, The Fundamentals of Value Stream Maps, The Elements of a Value Stream Map (VSM), Getting Started with Value Stream Mapping, Value Stream Mapping Icons, Gathering Supporting Information, Tools for Quantifying the Value Stream, The 5 Ws – 1H, Spagetti Diagrams, 3 ‘P’ Methodology, Basic Steps of 3P Methodology, Working with Software Tools, Flow and Pull Tools, Flow Tools, The Japanese 5 ‘S’ Work Place Organisation Practice, Single-Piece Flow, One-piece Flow, Achieving One-piece Flow, Group Technology and Cellular Manufacturing, Preventing Blockages to Flow, Ensuring Quality at the Source, How to use Poka Yoke?, Approach to Implement Poka-yoke, Devising Flexible and Reliable Equipment, Three Areas of TPM, Mastering the Quick Change, Pull Tools, Smoothing Out the Bumps, Heijunka, Signaling Replenishment, Four Core Principles of Kanban, Working of the Kanban System, Changing Logistics, Perfection Tools, Beginning with Standardised Work, Guiding Rules for Standardised Work, Implementing Standardised Work, Improving With Kaizen, Large Scale versus Small-Scale Improvement, Scoring with Visual Management Tools, Andon Systems, Everyday Improvement Tools, Fishbone Diagram, Pareto Analysis, Check Sheets, Scatter Plots, Graphs, Histograms, Management Tools, Hoshni Kanri, The Balanced Score Card, Balanced Score-card Basics, Go and Observe, Benefits of Genchi Genbutsu, The Gemba Walk, Management Information Tools.
Chapter 10. Lean Implementation
Introduction, The Drive for a Lean Program, Preparing to go Lean, Starting from the Top, Challenges in Lean Implementation, Creating the Lean Infrastructure, Finding the Master and Developing the Students, The Lean Sensei, Lean Students, Beginning the Journey : The Lean Roll Out, Minding the Big Picture, Picking the Starting Point, Creating Awareness, Measurements : The Enterprise at a Glance, The Lean Evolution, Inwardly Lean, Outwardly Lean, Practically Lean, Planning for Lean Implementation.