Basic Concepts of Lean Manufacturing-Libre

THL IRODUCTI ON SYSTLM DOCTOR S OIII CL - WWW. TWI NLTWORK.
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Maiek Iialkovski - |.S.P. ConsuIling Inc. Toionlo, Canada
Ihone: 416-235-2631, e-MaiI: Maiek.Iialkovskiiogeis.con
asic concepls of Lean Manufacluiing

LEAN MANUFACTURING...................................................................................................................... 2
THE GOALS OF LEAN MANUFACTURING................................................................................................... 2
Cost Reduction by Elimination oI Waste ............................................................................................. 2
Creating Conditions to Guarantee Product Quality.............................................................................. 2
Creating a Work Site with Operators in Mind...................................................................................... 5
AWARENESS OF WASTE ............................................................................................................................ 7
Cost Reduction versus Cost Plus .......................................................................................................... 7
Cost and the Method oI Production...................................................................................................... 7
Work and Waste ................................................................................................................................... 8
Overload and Unevenness .................................................................................................................... 9
Kinds oI Waste ..................................................................................................................................... 9
UNDERSTANDING EFFICIENCY................................................................................................................ 10
Apparent eIIiciency ............................................................................................................................ 10
True eIIiciency.................................................................................................................................... 10
Individual and Total EIIiciency.......................................................................................................... 11
THE IMPORTANCE OF PROBLEM AWARENESS......................................................................................... 11
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LEAN MANUFACTURING
The fundanenlaI phiIosophy lehind Lean Manufacluiing is lo piovide supeiioi quaIily
pioducls foi noie Cusloneis al a significanlIy Iovei piice and lo conliilule lo a noie
piospeious sociely.
Il is inpoilanl lo luiId a Conpany pioduclion syslen lased on lhis phiIosophy. Lean
Manufacluiing has endeavoied lo ialionaIize pioduclion ly:
ConpIeleIy eIininaling vasle in lhe pioduclion piocess
To luiId quaIily inlo lhe piocess
To ieduce cosls - pioduclivily inpiovenenls
To deveIop ils ovn unique appioach lovaid coipoiale nanagenenl
To cieale and deveIop inlegialed lechniques lhal viII conliilule lo coipoiale
opeialion.

This is Lean Manufacluiing.
The Goals of Lean Manufacturing
Cost Reduction by Elimination of Waste
Il iequiies conslanl effoil al cosl ieduclion lo nainlain conlinuous piofils in nanufacluiing.
The piine vay lo ieduce cosls is lo pioduce onIy lhose pioducls deleinined ly saIes in a
lineIy fashion, lo iesliain excessive nanufacluiing and lo eIininale aII wastc in nanufacluiing
nelhods.
Theie aie vaiious vays lo anaIyze and inpIenenl cosl ieduclion, fion lhe slail of designing aII
lhe vay lhiough lo nanufacluiing and saIes. One of lhe goaIs of Lean Manufacluiing is lo
Iocale vasle piagnalicaIIy in each piocess and lhen eIininale il.
Il is possilIe lo uncovei a veiy Iaige anounl of vasle ly olseiving enpIoyees, equipnenl,
naleiiaIs and oiganizalion in lhe acluaI pioduclion Iine fion lhe peispeclives of lhe piocess
ilseIf and lhe acluaI voik invoIved. Sone lypes of vasle aie olvious, lul olheis aie hidden.
Wasle nevei inpioves vaIue, il onIy incieases cosl.
The lhoiough eIininalion of vasle Ieads lo giealei enpIoyee seIf-iespecl and lo najoi cosl
ieduclions ly pievenling unneeded Iosses.
Creating Conditions to Guarantee Product Quality
To pioduce a high-quaIily pioducl is lhe fiisl connandnenl of any nanufacluiing conpany.
The high quaIily of any pioducl, in vhich nany conponenl and pails do nol faiI and aie
lioulIe-fiee, nusl le luiIl inlo il al eveiy piocess.
Lean Manufacluiing has deveIoped vaiious vays lo suppoil lhe connilnenl lo luiId lhe
quaIily inlo lhe piocess. This piincipIe gives each opeialoi lhe iesponsiliIily lo check quaIily
lhoioughIy al eveiy slage of voik vilhin lhe piocess, and liings pioducl inspeclion diieclIy
inlo lhe piocess so lhal good pioducls fIov lo lhe foIIoving piocess and defecls aie exliacled al
lhal poinl.
Lach opeialoi nusl le avaie lhal lhe foIIoving piocess is a cuslonei and nusl nevei send a
defeclive pioducl lo dovnsliean piocesses.
If equipnenl is defeclive oi opeiales alnoinaIIy, eilhei lhe nachine ilseIf oi sone syslen nusl
le alIe lo delecl lhe piolIen and slop opeialion. IooIpioof devices aie oflen used as sinpIe
neans foi lhis puipose. This aIso nakes il easiei lo nainlain quaIily.
Lean Manufacluiing has laken nany neasuies and expended nuch effoil lo see lhal, if a defecl
in quaIily shouId occui, ve can uncovei lhe liue cause and appIy counleineasuies lo pievenl
ils iecuiience.
Quality First
Iioducing high-quaIily pioducls is paianounl foi, and lheiefoie nusl le given piioiily ly,
any nanufacluiing indusliy. Cusloneis viII nevei conlinue puichasing a pioducl if ils
quaIily is pooi, and no nallei hov cheapIy il is pioduced, lhe pioducei viII onIy incui
Iosses.
In lhe case of any pioducl, safely is consideied especiaIIy inpoilanl. Taking shoilculs oi
doing shoddy voik, in lhe exliene case, pulling a fauIly pioducl on lhe naikel, anounls
lo a hainfuI acl and can have devaslaling consequences foi a conpany.
Theiefoie, il shouId le Conpanys nission lo suppIy oui cusloneis vilh lioulIe-fiee
pioducl. To do lhis, ve nusl pioduce pioducls lhal confoin exaclIy lo design quaIily
specificalions. Allaining high quaIily nusl aIso le given foienosl consideialion in oui
voik, and negIecling quaIily can nevei le excused, hence lhe necessily of checks lo veiify
quaIily.
AII pails pioduced in a piocess nusl le inspecled lheie lo nake suie defecls aie nol
occuiiing, and ensuie lhal defeclive pails do nol ieach dovnsliean piocesses. Ways nusl
lhus le devised lo peifoin such inspeclions econonicaIIy.
Ensuring Quality of all Products
In geneiaIIy piacliced convenlionaI nelhods, finished pails and pioducls aie inspecled ly
an inspecloi lhen senl on lo dovnsliean piocesses. ul good quaIily cannol le assuied if
finished goods aie lo le judged good oi lad.
An inspecloi can iandonIy sanpIe goods and judge lheii quaIily good, lul excuses vonl
nean nuch lo lhe cuslonei vho gels lhe one lad unil fion anong 1,OOO good ones.
Defeclive goods ieaching lhe cuslonei danages consuneis liusl in lhe coopeialion and
lhe pioducl, and nusl le avoided al aII cosls lecause il can Iead lo nanufacluiing
pioducls lhal aie no Iongei saIalIe.
CeneiaIIy, defeclive pioducls aie discoveied ly an inspecloi and iepaiied lefoie lhey
nake il lo lhe cuslonei. The sliongei lhe deleininalion nol lo Iel defeclive pioducls oul of
lhe pIanl lhe noie sliingenl inspeclions lecone and lhe noie oflen coiieclive adjuslnenls
and iepaiis aie nade.
ul inspeclion voik caiiied oul ly inspeclois voiking off lhe Iine yieIds no added vaIue,
so ieseaich lo find vays lo nanufacluie quaIily pioducls vilh fevei inspeclois is
necessaiy. In olhei voids, luiIding quaIily inlo lhe pioducl is essenliaI.
Building In Quality at Each Process
The concepl of luiIding in quaIily al each piocess is lhe lasis foi pievenling lhe fIov of
defeclive pails lo dovnsliean piocesses. Il lheiefoie iequiies lhal opeialois aie avaie
lhal dovnsliean piocesses aie ny Cusloneis.
In piaclice, luiIding in quaIily al each piocess liings lhe inspeclois funclion inlo each
piocess so defecls can le uncoveied innedialeIy vhen lhey occui. OnIy in lhis vay can il
le ensuied lhal aII pails aie defecl-fiee, and lhal no fauIly pails ieach dovnsliean
piocesses.
If defecls aie discoveied al a dovnsliean piocess, il vouId do no good veie lhey neieIy
coiiecled and lheii cause nol invesligaled, as lhe defecl vouId conlinue lo iecui. Theiefoie
in such cases, lhe pievious piocess nusl le pionplIy nolified of lhe piolIen, and lhe
piocess oi depailnenl vheie lhe defecl oiiginaled nusl innedialeIy invesligale lhe cause
and inslilule neasuies lo pievenl iecuiiences.
Undei lhe geneiaIIy accepled nolion of quaIily conlioI, inspeclois aie slalioned al lhe end
of piocesses oi Iines. Theie lhe inspecloi judges lhe pioducls coning off lhe Iine,
caIcuIales lhe iesuIls, and passes lhe iesuIls on lo lhe piocesses conceined. UsuaIIy, lhis is
aII lhal happens, lhe iesuIls aie knovn, lul il is difficuIl lo affecl counleineasuies lo
pievenl iecuiiences.
This liings us lo lhe concIusion lhal il is inpoilanl foi opeialois lo inspecl lhe quaIily of
lhe goods lhey lhenseIves have pioduced, and naluiaIIy eveiy ailicIe pioduced nusl le
inspecled. Theie aie nany neans lo achieve lhis, lhe vay lo assuie quaIily achievenenl is
sliicl olseivance of lhe Standardlted Work eslalIished undei lhe pievaiIing voiking
condilions al each piocess.
Slandaidized voik is devised so lhal iequiied quaIily IeveIs can le achieved and
nainlained. Slandaidized voik veaves inspeclion voik, lolh visuaI and inspeclion voik
using neasuiing insliunenls, inlo lhe pioduclion voik peifoined in each piocess. If such
inspeclion voik is nol inleivoven inlo lhe piocess voik, lhe concepl of luiIding in
quaIily al each piocess viII nol funclion piopeiIy.
Inspection Work
Inspeclion voik is nol neieIy lhe aclion of judging vhelhei pails oi finished pioducls aie
good oi lad. Il aIso enlaiIs -- and lhis ve vanl lo enphasize -- puisuing lhe cause of
defecls, gaining a conpiehensive undeislanding of lhe ciicunslances lo pinpoinl lhe ieaI
cause, and insliluling neasuies lo effecliveIy pievenl lheii iecuiience.
Lnphasis on puisuil of ieaI causes is necessaiy lecause cuisoiy olseivalion of a defecl
phenonenon can Iead lo liying lo cuie synplons inslead of lhe disease. Ioi exanpIe, a
defecl iesuIling fion inslaIIalion of a viong pail nighl le discoveied, lul inslaIIalion of
lhe viong pail nay le onIy a synplon of a noie deepIy iooled piolIen ialhei lhan lhe
ieaI cause. CaiefuI invesligalion nighl ieveaI lhal lhe viong pail vas inslaIIed lecause a
synloI in lhe voik insliuclion sheels is iIIegilIe and pione lo nisinleipielalion, oi lhal
pails aie nol aiianged in lhe oidei of lheii inslaIIalion sequence, oi even lhal an enpIoyee
vas jusl inallenlive.
Defecls aie ieduced ly effecliveIy giasping aII lhese faclois, lhan inlioducing
counleineasuies lased on a conpiehensive undeislanding.
Thus the urose of lnsectlon uork ls not to lck out the defectlte roducts, but to
eradlcate the occurrence of defects. In a nulsheII, inspeclion voik goes leyond neie
diagnosis lo enconpass fuII liealnenl and iehaliIilalion. Il is essenliaI lhal inspeclion
voik le undeislood in lhis vay.
The Added Value of Repairs
Lven vhen eveiyone in each piocess is olseiving slandaidized voik, a fev pioducls lhal
iequiie iepaiis aie lound lo luin up. AIlhough, ideaIIy, lhe need foi iepaii voik shouId
nol occui, il does. Il seens lo le geneiaIIy accepled lhal vhen iepaii voik is iequiied il
viII le enough jusl lo nake lhe iepaiis on a iepaii Iine and Iel eveiyone eIse gel on vilh
lheii noinaI voik. So in sone conpanies lhe necessily foi iepaii is laken as a nallei of
couise.
ul iepaii voik iequiies vaslefuI nanpovei incieases, Ioveis iales of added vaIue, and
iaises pioduclion cosls. If defeclive pioducls and pioducls iequiiing iepaiis aie laken as a
nallei of couise vheie defecl-fiee pioducls shouId le pioduced, lhe necessily aiises foi
exlia nanpovei and addilionaI faciIilies, looIs, and conveyance neasuies.
The pievenlion of defecls and lhe necessily foi iepaiis can le achieved ly aggiessiveIy
pionoling KaIzcn (inpiovenenls) in conjunclion vilh quaIily. y pioducing high-quaIily
pioducls and eIininaling lhe need foi iepaiis, nol onIy can nan-houis foi iepaiis le
ieduced, lul aIso ve can ieduce lhe nan-houis iequiied foi inspeclion voik.
Creating a Work Site with Operators in Mind
If Ialoi is expended on a pioducl lul does nol conliilule any addilionaI vaIue lo il, lhal Ialoi is
of no vaIue. On lhe olhei hand, if lhe Ialoi expended on a pioducl enhances lhe pioducls
vaIue, lhen lhal Ialoi is of gieal vaIue lecause il is effeclive. This lype of effeclive Ialoi use
liansIales inlo shoving iespecl foi hunan dignily, lhe dignily of lhe enpIoyee.
In lhe Lean Manufacluiing neasuies have leen laken so lhal lhe Ialoi oi eveiy enpIoyee viII
enhance lhe vaIue of oui pioducls. One of lhese neasuies is Standardlted Work. This is a vay
lo peifoin lhe nosl effeclive sequenliaI pioduclion vilhoul vasle ly ialionaIIy concenlialing
lhe voik aiound lhe Opeialois novenenl. Sone conpanies use a syslen lhal sliesses lhe
peifoinance of equipnenl and nachines. In lhis case, lhe equipnenl is consideied lo le of
piine inpoilance and lhe enpIoyee neie expansion of lhe nachine.
MuluaI suppoil is indispensalIe if each enpIoyee, vho pIays lhe Ieading ioIe foi his pailicuIai
lask, is lo peifoin lhe voik and inpiove lhe efficiency of lhe vhoIe pioduclion piocess. In
Lean Manufacluiing lhe inpIenenlalion of nuluaI suppoil lelveen lhe pieceding and
succeeding piocesses has affecled highIy efficienl voik.
If lhe Opeialoi discoveis sone piolIen in lhe voik foi vhich he is iesponsilIe, he oi she is
peinilled lo slop lhe Iine depending on lhe giavily of lhe piolIen. This is onIy possilIe againsl
a lackdiop of iespecl foi lhe judgnenl and inleIIigence of lhe enpIoyees. A voik sile, vheie
eveiy enpIoyee can fuIIy dispIay his ovn aliIily, can le ciealed vilh a syslen in vhich lhe
voik acconpIishnenls of each individuaI aie a nallei of pulIic knovIedge, and anyone can
piopose kaizen foi voik piolIens.
Creating a Flexible Work Site
As lhe CIolaI Lconony has naluied and lecone inleinalionaIized, useis lasles have
expanded lo enconpass a videi iange of pioducl lypes, nodeIs and slalus vaIue, vilh an
enoinous inciease in lhe anounl of pioduclion line - Lead Tlme.
Al lhe sane line, lhe usei vanls a shoil deIiveiy line. And a shoil deIiveiy peiiod is nov
one of lhe key poinls in saIes. Iuilheinoie, lhe saIes quanlily is aIvays indefinile and
difficuIl lo piedicl. Undei lhese condilions, lhe fixed pioduclion of pioducl lypes oi
quanlilies nay Iead lo shoilages oi suipIuses and cause consideialIe vasle. Theiefoie, il is
inpoilanl foi lhe pioduclion depailnenl lo shoilen lhe Lead-line lelveen lhe ieceipl of
an oidei foi a pioducl and ils deIiveiy as nuch as possilIe.
One of lhe goaIs of Lean Manufacluiing is lo sel up a piocess so lhe pioduclion depailnenl
can nanufacluie a pioducl in sufficienl line foi a naikel lhal is aIvays changing and
diveisifying. The lasic concepl lehind lhe shoilening of Iead-line is lo:
Take oideis
Iioduce innedialeIy
And deIivei on line.

A sliong and vigoious pioduclion syslen can pioduce lhe iequiied ilens in lhe necessaiy
line vilhoul vasle, cope vilh ninoi changes in pioduclion quanlily, and neel scheduIes
salisfacloiiIy vilh a good Iine opeialion iale lecause piolIens can le easiIy discoveied
and ieclified. As a iesuIl, il can salisfy lhe cusloneis desiies.
Operator Work and Machine Work
Theie is a key nolion foi lhe eIininalion of vasle and lhe effeclive conlinalion of voik al
lhe voik sile: lhe sepaialion of nachine voik and opeialoi voik. If ve invesligale lhe
voik in vhich enpIoyees handIe nachineiy, lhal voik can le cIassified as enpIoyee voik
and nachine voik.
The meaning of Operator work
Opeialoi voik iefeis lo voik lhal cannol le conpIeled vilhoul an Opeialoi. LxanpIes of
opeialoi voik aie picking up naleiiaIs, pulling naleiiaIs in a nachine, opeialing lhe
conlioIs of a nachine, and peifoining nanuaI opeialion.
The meaning of machine work
Machine voik iefeis lo voik oi incidenlaI voik lhal equipnenl, vhich has leen slailed ly
hunan hands oi olhei neans, aulonalicaIIy peifoins. Machine voik incIudes aulonalic
nachining, inspecling and conveying. Conciele exanpIes aie culling, foining and
veIding of naleiiaI, deIiveiing and ienoving naleiiaI and inspecling piecision
aulonalicaIIy ly device.
Undeislanding lhe sepaialion of opeialoi and nachine voik is lasic lo nuIli-piocess
handIing voik, and is quile effeclive in ciealing slandaidized voik lo enhance voik-
efficiency.
If opeialois aie neieIy olseiving nachine opeialion, lhen lhal olseivalion is vasle of
vailing and shouId le eIininaled. Iaying allenlion lo possilIe piolIens is inpoilanl.
Awareness of Waste
Cost Reduction versus Cost Plus
Lean Manufacluiing inpioves pioduclivily lhiough lhe piincipIe of Cosl Reduclion.
Wilh lhe piincipIe of cosl ieduclion, lhe saIes piice of a pioducl is deleinined ly acluaI naikel
condilions. A piofil cannol le secuied, lhus, vilhoul fiisl ieducing cosl iegaidIess of incieases
oi decieases in lhe pioduclion quanlily. This lype of cosl phiIosophy iequiies an oveiaII
conpany effoil. Cosl ieduclion is:

PrnfIt = 5a!cs prIcc - Cnst

In conliasl lo cosl ieduclion, lheie is lhe cosl-pIus piincipIe, in vhich pioducl piice is
deleinined ly conlining aII lhe cosls -- such as lhose of iav naleiiaIs, Ialoi and olhei
expenses needed foi pioduclion -- vilh vhalevei conpany poIicy decides is needed as piofil.
Cosl poIicy:

SaIes piice = Cosl + Iiofil

The lvo foinuIas alove aie lhe sane nalhenalicaIIy, lul lheie is a gieal diffeience in lhe
enphasis each one pIaces on lhe vaiialIes. In olhei voids, cosl-pIus consideis lhal lhe cosl is
fixed. WhiIe cosl ieduclion consideis, lhal lhe cosl can le effecliveIy changed ly
nanufacluiing nelhods.
Cost and the Method of Production
A delaiIed anaIysis of any given pioduclion piocess viII shov lhal sone poilions aie ciuciaI
and olheis nol ciuciaI foi enhancing lhe vaIue of lhe naleiiaI. The ialio lelveen lhese lvo has
a najoi inpacl on cosl.
Ioi exanpIe, lheie is no diffeience lelveen nanufacluieis in lhe piice foi 1 kiIovall of
eIecliicily, lhe piice foi 1 lon of sheel nelaI and lhe piice foi lhe sane nachine looIs. ul lheie
is a diffeience in piofils, even lhough lhey aII use lhe sane eneigy, naleiiaIs and equipnenl lo
pioduce lhe sane kind of pioducl. This diffeience slens piincipaIIy fion lhe diffeienl
nanufacluiing nelhods.
We shaII nov shov hov cosls can le changed, ly exanining lhe slock quanlily of iav
naleiiaI.
If one hundied pails aie nanufacluied loday, ve onIy need lo have naleiiaI on hand foi 1OO
pieces. And if ve considei lhal, al any given line, ve onIy need lo have naleiiaI on had lo
covei lhe daiIy slock foi lhe fev days il lakes lo secuie iepIacenenls, lhen ve cIeaiIy do nol
have lo nainlain a Iaige slock lackIog.
The accunuIalion of slock foi Iong peiiods of up lo lhiee oi six nonlhs -- despile lhe facl lhal il
nighl le easiIy acquiied in jusl a fev days -- viII Iead lo vaslefuI inleiesl and invenloiy
sloiage cosls and even lo lhe possiliIily lhal il nay nol le used lecause of design changes.
To iIIusliale, Iel us Iook al lhe exanpIe of a slanping nachine. Lven if lvo conpanies luy lhe
sane piess, lheie viII le a diffeience in cosl lelveen lhe passive conpany lhal uses lhe
nachine accoiding lo lhe nanufacluieis specificalions, caiefuIIy caIcuIales an econonicaI Iol
size lased on lhe pievaiIing sel-up line, incieases lhe nunlei of paIIels, expands lhe
vaiehouse and sloies a Iaige quanlily of piess pails, and lhe aclive conpany lhal shoilens lhe
sel-up line and pioduces pails efficienlIy using lhe piaclicaI knov-hov and effoil of
enpIoyees al lhe voik sile.
The cosls can change significanlIy accoiding lo hov lhe pioducl is pioduced and hov
effecliveIy lhe cuiienl equipnenl, naleiiaI and Ialoi aie uliIized in pioduclion. The ieduclion
of cosls ly lhe nelhod of nanufacluie pIays an inpoilanl ioIe in lhe conpanys piofils and
lhal, in ils luin, viII nainlain lhe conpanys slaliIily and jol secuiily foi ils enpIoyees.
The acluaI pioduclion sile nusl conlinue, in lhe fuluie, lo ieviev oui ovn pioduclion syslen
guided ly lhe cosl ieduclion poIicy.
Work and Waste
In pionoling Lean Manufacluiing il is necessaiy lo piopeiIy undeisland lhe neaning of
conpIele eIininalion of vasle. Wasle enconpasses vaiious phenonena, none of vhich
enhance lhe vaIue of lhe pioducl. This incIudes aII faclois lhal do nol add any vaIue lo lhe
pioducl, vhelhei in pails, Ialoi oi pioduclion piocess. In shoil, lhis neans lhe vaiious
pioduclion eIenenls lhal onIy inciease cosl.
If ve focus on lhe enpIoyees voik novenenls in lhe voikpIace, lheii pioduclion aclivily nay
le divided inlo lhiee cIasses:
1. Value Added Work
VaIue Added Woik is voik lhal acluaIIy adds vaIue lo lhe pioducl. This incIudes
piocessing, such as shaping, foining, liealing, assenlIing, and so on. Olhei exanpIes
incIude assenlIy oi inslaIIalion oi pails, veIding, haidening of geais, and spiay-painling
lodies, elc. The highei lhe piopoilion of voik lhal ads vaIue, lhe giealei lhe efficiency of
pioduclion.
2. Incidental work
This iefeis lo lhe lype of voik lhal does nol diieclIy add vaIue lo lhe pioducl, lul nusl --
undei cuiienl pioduclion condilions -- le done foi lhe vaIue added voik lo enhance vaIue.
LxanpIes of incidenlaI voik aie ienovaI of pails fion loxes, deIiveiing pails lo lhe Iine,
selling up a voik slalion, Ioading and unIoading lhe nachine, looI pickup foi pails
inslaIIalion and piepaialion of inspeclion equipnenl.
3. Waste
Wasle is aclion lhal is nol essenliaI foi lhe voik leing peifoined. This iefeis lo lhe lype of
voik lhal has no posilive infIuence, even if il is ienoved fion lhe voik novenenl. This
incIudes: vailing, unnecessaiy ieaiianging oi ieslocking of naleiiaIs, excessive
lianspoiling of pails, valching equipnenl, elc. Repaii voik is aIso consideied lo le
vasle. Such aclivilies add no vaIue lo lhe naleiiaIs oi pails. Wasle in a nanufacluiing
sile consisls of vaiious such faclois oi aclions lhal seive onIy lo iaise cosls.

If ve olseive voik al lhe acluaI nanufacluiing sile in gieal delaiI, ve find lhal lhe anounl of
novenenl lhal enhances vaIue is unexpecledIy Iov. The aclivily of iepIacing novenenl lhal
does nol enhance vaIue vilh vaIue added voik is caIIed Kaizen.
Overload and Unevenness
olh oveiIoad and unevenness, Iike vasle, aie faclois lhal iaise cosl and Iovei quaIily.
OveiIoad is appIicalion of a Ioad in excess of aliIily oi capacily: in lhe case of equipnenl il can
cause lieakdovns oi defeclive pails, in lhe case of an opeialoi il can Iead lo safely and quaIily
piolIens.
Unevenness is consideied lo le a conlinalion of vasle and oveiIoad. This neans lhal vasle is
eilhei a iepelilion oi a conlinalion of iedundanl capacily and oveiIoad. Il is caused ly
iiieguIai pioduclion scheduIe oi changes in lhe pioduclion quanlilies. And vheievei
unevenness is found, vasle exisls.
The eIininalion of vasle, oveiIoad and unevenness fion lhe pioduclion aclivily viII inpiove
pioduclivily and Iead lo lhe nainlenance and inpiovenenl of quaIily.
Kinds of Waste
A funclionaI cIassificalion of lhe vaiious eIenenls lhal onIy iaise cosl in pioduclion aclivily
gives lhe foIIoving seven lypes of vasle:
1. Wasle of defecl iepaii
2. Wasle of oveipioduclion
3. Wasle of vailing
4. Wasle in deIiveiy and conveyance
5. Wasle in piocessing
6. Wasle of invenloiy
7. Wasle of nolion

In Lean Manufacluiing eveiy lype of vasle nusl le eIininaled.
Lean Manufacluiing pays pailicuIai allenlion lo lhe vasle of oveipioduclion - Oveipioduclion
is consideied lo le lhe nunlei one cause of aII nanufacluiing issues and piolIens. Since lhe
ideaI is lo nake lhe necessaiy goods al lhe necessaiy line in lhe necessaiy quanlilies, lhe
nanufacluie of noie goods lhan is juslified ly saIes is vasle. Wasle of oveipioduclion induces
noie vasle, lhus vasle of oveipioduclion nusl le laken seiiousIy.
THL IRODUCTI ON SYSTLM DOCTOR S OIII CL - WWW. TWI NLTWORK. COM 1O/11
The foIIoving aie lypes of cosls lhal can le incieased ly vasle of oveipioduclion:
Necessily foi exlia naleiiaI and pails
Inciease in conlaineis such as paIIels and skids
Inciease in deIiveiy vehicIes
The giovlh of slock and inciease in nan-houis foi slock conlioI
Olheis

The foIIoving faclois aie causes of oveipioduclion:
A sense of secuiily againsl nachine lieakdovns, defecls and alsenleeisn
Mislaken incieases of opeialionaI iale and appaienl efficiency
The nolion lhal Iine sloppages aie 'sinfuI
Vaiialions in Ioad
Olheis.

In oveipioduclion, vasle inviles vasle. Theiefoie, voik shouId le done lased on
slandaidized voik and voik iuIes olseived.
Understanding Efficiency
Inpiovenenls in efficiency lhal ignoie lhe pioduclion scheduIe viII iesuIl in lhe vasle of
oveipioduclion and push oveiaII conpany efficiency in lhe viong diieclion. Inpiovenenls in
efficiency dispIay lheii vaIue ly Ioveiing cosls. When evaIualing efficiency, lhe key facloi is
lhe necessaiy pioduclion quanlily: you nusl considei hov lhe necessaiy ilens can le
nanufacluied vilh lhe fevesl nan-houis possilIe in lhe lesl line. Theie aie consequenlIy lvo
lypes of efficiency - Tiue and appaienl.

Apparent efficiency
Appaienl efficiency is a vay of iaising efficiency ly incieasing lhe pioduclion quanlily vilhin
lhe cuiienl nan-houis vilhoul iegaid foi saIes, and is an efficiency onIy in leins of
nunleis. We caII lhis }usl-in-Case pioduclion.
True efficiency
Tiue efficiency is an inciease in efficiency ly pioducing a saIalIe quanlily vilh lhe shoilesl
nan-houis possilIe, and is an inpiovenenl in efficiency lhal conliilules lo sulslanliaI
ieduclions in cosl. If lhe pioduclion quanlily is lo le incieased, considei hov lo iaise efficiency
ly peifoining nass pioduclion vilh lhe cuiienl nan-houis lo iaise efficiency, and if lhe
pioduclion quanlily is lo le nainlained oi decieased, considei hov lo iaise efficiency ly
ieducing nan-houis.
Lfficiency is used in vaiious vays as a slandaid foi evaIualing pioduclivily in equipnenl oi
Ialoi, lul ve nusl nevei foigel lhal ils ciileiion is lhe necessaiy quanlily vaiianled ly saIes.
Individual and Total Efficiency
When consideiing hov lo iaise conpany efficiency ly eIininalion of vasle, ve nusl Iook al
efficiency in leins of each piocess, lhe Iine enliacing lhose piocesses, and lhe vhoIe pIanl lhal
conlains lhe Iine, pioseculing inpiovenenls in efficiency fion Iovei lo highei slages so lhe
inpioved efficiency enconpasses lhe lolaI syslen. Il is ciuciaI lo inslilule inpiovenenls in
efficiency vilh lhis lype of syslens appioach.

Individual efficiency
IndividuaI efficiency neans lhal lhe efficiency of an individuaI piocess, Iine, oi nachine
(equipnenl) is iaised vilhoul iegaid foi lhe pieceding oi foIIoving piocess, Iine oi
nachine (equipnenl).

Total efficiency
TolaI efficiency neans lhal, al lhe IeveI of piocess and Iine, efficiency is iaised vilh a
consequenl inpiovenenl lhal is nol neieIy nuneiicaI, and lhal spieads ovei lhe enliie
conpany.
Manageis and supeivisois lend lo lhink of inpiovenenls in efficiency and quaIily onIy foi
lheii ovn piocesses, lul lhey nusl aIvays considei hov IocaI inpiovenenls viII affecl lhe
lolaI opeialion.
Thinking onIy aloul individuaI efficiency can easiIy Iead lo inpiovenenls in appaienl
efficiency. AIvays lhink aloul lhe necessaiy pioduclion quanlily fiisl.
The Importance of Problem Awareness
Lean Manufacluiing conslanlIy sliesses hov inpoilanl il is lo achieve cosl ieduclion ly
conpIele eIininalion of vasle, as lhe vay ve lhink aloul vasle can have significanl
consequences. The ciileiion lo deleinine vhal is and is nol vasle vaiies depending on
diffeiences in lackgiound and conlexl, and lhe sane lhing can le said aloul lhe evaIualion of
efficiency. Thus, lhe vay ve lhink aloul and judge vasle oi efficiency is quile inpoilanl.
Il has leen said lhal onIy lvo lhings exisl vhen doing voik al lhe voik sile - lhings one nusl
do and lhings one nusl nol do. Whalevei oui aclivily, ve nusl nevei foigel lo considei lhe
liue puipose of lhe aclivily and lhe lesl neans lo acconpIish lhal puipose.
We aIvays pioduce pioducls in iesponse lo saIes and caiiy oul lhe voik ly aining al
inpiovenenl of quaIily, cosl ieduclions and incieased voik safely.
In so fai as ve nanufacluie vilh lhe sane equipnenl, naleiiaIs and nelhods as olhei
conpanies, lheie is no vay lo gain conpelilive ascendancy. Keeping one slep ahead of lhe
olhei conpanies viII, hovevei, nake lhe diffeience lelveen lhe vicloiy and a faiIuie in lhe
conpelilive vai.

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