
Lean Manufacturing Principles
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The five core principles of lean manufacturing are defined as value, the value stream, flow, pull and perfection. These are now used as the basis to implement lean.
1. Value: Value is determined from the perspective of the customer and relates to how much they are willing to pay for products or services. This value is then created by the manufacturer or service provider who should seek to eliminate waste and costs to meet the optimal price for the customer while also maximizing profits.
2. Map the Value Stream: This principle involves analyzing the materials and other resources required to produce a product or service with the aim of identifying waste and improvements. The value stream covers the entire lifecycle of a product, from raw materials to disposal. Each stage of the production cycle needs to be examined for waste and anything that doesn’t add value should be removed. Chain alignment is often recommended as a means to achieve this step.
Modern manufacturing streams are often complex, requiring the combined efforts of engineers, scientists, designers and more, with the actual manufacturing of a physical product being just one part of a wider stream of work.
3. Create Flow: Creating flow is about removing functional barriers to improve lead times. This ensures that processes flow smoothly and can be undertaken with minimal delay or other waste. Interrupted and disharmonious production processes incur costs and creating flow means ensuring a constant stream for the production or service delivery.
4. Establish a Pull System: A pull system works by only commencing work when there is demand. This is the opposite of push systems, which are used in manufacturing resource planning (MRP) systems. Push systems determine inventories in advance with production set to meet these sales or production forecasts. However, due to the inaccuracy of many forecasts, this can result in either too much or not enough of a product being produced to meet demand. This can lead to additional warehousing costs, disrupted schedules or poor customer satisfaction. A pull system only acts when there is demand and relies on flexibility, communication and efficient processes to be successfully achieved.
The pull system can involve teams only moving onto new tasks as the previous steps have been completed, allowing the team to adapt to challenges as they arise in the knowledge that the prior work is mostly still applicable to delivering the product or service.
5. Perfection: The pursuit of perfection via continued process improvements is also known as ‘Kaizen’ as created by Toyota Motor Corporation founder Kiichiro Toyoda (see ‘When and Who Invented Lean Manufacturing?’ above). Lean manufacturing requires ongoing assessment and improvement of processes and procedures to continually eliminate waste in an effort to find the perfect system for the value stream. To make a meaningful and lasting difference, the notion of continuous improvement should be integrated through the culture of an organisation and requires the measurement of metrics such as lead-times, production cycles, throughput and cumulative flow.
It is important for the culture of continuous improvement to filter through all levels of an organization, from team members and project managers right up to the executive level, to create a collective responsibility for improvement and value creation.
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Hi, I am Amar Dinesh Singh and this is my space, my channel.
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