According to Toyota Production System (TPS), Lean addresses these 8 wastes, which account for up to 95% of all costs in non-Lean manufacturing environments.
£ Overproduction: Producing more than the customer demands. Lean will address this issue by only producing products just as customers orders them. Anything produced beyond this (buffer or safety stocks, work-in-process inventories, etc.) ties up valuable labour and material resources that might needs to be addresses thorough Lean tools
£ Waiting: This includes waiting for material, information, equipment, tools, etc. Lean demands that all resources are provided on a just-in-time (JIT) basis – not too soon, not too late
£ Transportation: Material should be delivered to its point of use. The Lean term for this technique is called point-of-use-storage (POUS)
£ Non-Value-Added-Processing: Some of the more common examples of this are reworking. A technique called Value Stream Mapping is frequently used to help identify non-valued-added steps in the process (for both manufacturers and service organizations)
£ Defects: Lean methodology will implement the strategies to reduce the process defects
£ Excess Motion: Unnecessary motion is caused by poor workflow, poor layout, housekeeping, and inconsistent or undocumented work methods. Lean will help to optimize utilization of your workspace
£ Underutilized People: This includes underutilization of mental, creative, and physical skills and abilities. Lean will address common causes for this waste include – poor workflow, organizational culture, inadequate hiring practices, poor or non-existent training, and high employee turnover
£ Excess Inventory: Related to Overproduction, inventory beyond that needed to meet customer demands negatively impacts cash flow and uses valuable floor space. The biggest advantage of implementing Lean is to reduce the excess an obsolete inventory. Inventory represents about 70% of any organization’s operating costs
How 8Mvision can help organizations to enhance their operations excellence?
Our qualified consultants will study your current operations and they will do both on site as well as off site analysis in identifying the non value added wastes in your organizations and will recommend the actions and will also map out the current processes with the proposed processes. We will use all or some of these tools to streamline your existing process to increase productivity as well as profit margin
£ Pull System: The technique for producing parts at customer demand
£ Kanban: A method for maintaining an orderly flow of material.
£ Work Cells: The technique of arranging operations and/or people in a cell (U-shaped, etc.)
£ Total Productive Maintenance: TPM capitalizes on proactive and progressive maintenance methodologies results into lower operating costs, longer equipment life, and lower overall maintenance costs.
£ Total Quality Management: Total Quality Management is a management system used to continuously improve all areas of a company's operation.
£ Point-Of-Use-Storage: Inventory is available right at the point of use to avoid waiting.
£ Quick Changeover: The technique of reducing the amount of time to change a process from running one specific type of product to another.
£ Batch Size Reduction: Lean advocates in reducing the batch size based on the customer demand. A smaller batch size shortens the overall production cycle, enabling companies to deliver more quickly and improves cash flow. Shorter production cycles increases inventory turns and allows the company to operate profitably at lower margins, which enables price reductions, which increases sales and market share.
£ 5S or Workplace Organization: This tool is a systematic method for organizing and standardizing the workplace.
£ Visual Controls: These are simple signals that provide an immediate and readily apparent understanding of a condition or situation.
Concurrent Engineering: This is a technique of using cross-functional teams to develop and bring new products to market. In many instances, implementing concurrent engineering has reduced time-to-market by 50%.
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