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What is a Lean Enterprise?
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A Lean Enterprise:
- Produces more with existing resources by eliminating non-value added activites.
- Establishes a systematic approach to elminating wastes and creating flow.
- Develops a long-term plan to streamline your operations for success.
| Lean Reduces: |
Lean Increases: |
Lean Improves: |
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Costs
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Cycle Time
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Inventory
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Work-in-Process (WIP)
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Lead time
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- Capacity
- Sales
- Productivity
- Profits
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- Quality
- Safety
- Workforce Participation
- Team Building
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Click on a block in the Continuous Improvement House below to find out more.
5S System
The 5S System ( Sort, Set in Order, Shine, Standardize, and Sustain) improves workplace organization, standardization, and safety. Its benefits also show improvements in quality at the source, changeover times, machine down time, cycle times, storage costs, as well as boosting employee morale and the work environment. A neater and clean workplace through the use of Lean methodologies, POUS, Teams, Layout, Visuals, and Teams increases productivity. A base practice in Lean methodologies is Visual Systems which enable faster communication of information within the workplace. It also sets standards and expectations that cross language and other communication barriers. Street signs and maps are an example a commonly used visual systems that enable different backgrounds of people to work together. Visual Systems play a key role in integrating a 5S system, Pull/ Kanban, and well as other Lean tools. Increasing the flow of work and information within a workplace can often be done through small adjustments in the current layout. Through the use of Lean methodologies companies find that Cellular Flow, POUS, Batch Reduction, and Pull/ Kanban systems can be facilitated by a Lean layout found by using the various Lean tools. Stop searching for the wrong problem and learn to see where the value in your process truly is! A Value Stream map shows the materials, process steps, information and makes the 8 Lean wastes in the process become visually apparent. It is pictured as the steps leading into the House of Lean as it enables strategic decisions to be made on where and how to begin your continuous improvement initiative. Based on the Value Stream Map you are able to determine what Lean tools ( 5s System, Pull/ Kanban, TPM, etc. ) will be needed to create a Lean Enterprise. Developing standardized work practices enables a company wide communication of best practices. It also creates an environment that is flexible and able to adapt to new technologies and methods as they arise. Through a good foundation in 5S Systems a company is able to use standardized work to reduce changeover time, integrate pull/ kanban systems, promote quality at the source, and increase productivity. Make one, move one. Historically manufacturing has operated under the assumption of large batch sizes to maximize machine utilization and minimize machine changeover. Lean methodologies work towards customer demand so the ideal batch size becomes one. As a batch size of one is sometime impractical the goal is in reducing the batch size. This ultimately reduces inventory carrying costs,work in progress, and lead or cycle time. This enables the company operate profitably at lower margins.
TeamsInnovative teams are able to accomplish more than an innovative individual. Cross sectional teams engage all levels of a company and are able to respond to a broad spectrum of situations. The greatest asset of a company is the skills of the employees as a whole. Often times this asset becomes one of the 8 Lean wastes as many companies do not capitalize on this asset.
Quality at the Source
It is the responsibility of every employee, work group, department, or supplier to inspect their work. This will avoid any unecessary processing of defective product. Through a good 5s System, Visuals, and other Lean methodologies product problems, employee training, and equipment issues can be resolved quickly to ensure quality per the customer's demand.
POUS
Point Of Use Storage places materials, tools, and equipment where and when it is needed in an orderly fashion. It enhances a work area by enabling each person in a company to complete work as it is flowed to them. It reduces the waiting and other 8 Lean wastes which contribute to the non-value added activities. It plays a role in the implementation of the 5s System, Cellular Flow, and Quick Changeover.
Quick Changeover/ Setup Reduction
Single Minute Exchange of Dies (SMED) is a process to reduce the amount of production time lost while a machine is down for changeovers. This process enables a company to meet customer demands on-time with quality and enables a company to reduce any excess inventory. Setup Reduction helps reduce some of the 8 Lean wastes and is used best with the 5s System, Cellular Flow, and Kanban systems.
Pull/ Kanban Systems
Pull systems are a technique for producing parts to match internal and external customer demand. Traditionally push systems are used, which is production to a forecast or to stock inventory. Through the integration of a pull system, WIP is reduced which causes an increase in cycle time. Kanban Systems is visually based pull system which increases an awareness of product and information flow at all levels of a system. Pull/ Kanban systems can be brought about by a strong commitment in Visuals, 5s Systems, Cellular Flow, and other Lean Methods.
Cellular Flow
Traditional batch processing by department cuts back on the operational flexibility of company to respond to customer demands. Cellular flow is able to quickly adapt a change to all parts of a process within a single work cell. It increases communication as well as reduces WIP and rework. A good Visual system, 5s System, and Kanban system aids in the setup of cellular flow.
Total Productive Maintenance
TPM is a methodology for proactive and progressive maintenance which analyzes the Overall Equipment Effectiveness (OEE). It combines the knowledge and experience of operators, equipment vendors, engineering and other support personnel to optomize performance. The goal is to eliminate breakdowns and reduce unscheduled downtime on machines resulting in higher throughput and better quality. TPM has a strong base in Lean Methodologies, 5s Systems, and Quick Changeover.
Lean is a systematic approach to identifying and eliminating waste (non-value added activities) through continuous improvement by flowing the product at the pull of the customer in the pursuit of perfection. A non-value added activity is anything that does not add market form or function or is not necessary. These are activities that customers are not willing to pay for, like spending time to find tools. The types of non-value added activities can be defined as 8 different types of waste which are:
- Defects
- Overproduction
- Waiting
- Not Utilizing Employees
- Transportation
- Inventory
- Motion
- Excess Processing
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