Defects can be caused by nonstandard operations, substandard raw materials, incorrect assembly instructions, poorly maintained equipment and poorly trained operators. Defectsĭefects require rework or replacement. Implementing Standard Operating Procedures with the built-in flexibility to accommodate specific customer requirements are critical to minimizing the adverse cost and time impacts of over processing. For example, machining a part with too tight a tolerance or painting areas that will never be seen or affected by corrosion. Performing unnecessary processes or tasks not required by the customer. Pacing production to match customer demand.Long lead times, oversized batches, and poor planning are the main causes. It leads to high levels of inventory and can mask many other problems. Producing too much or too early is the cardinal sin. Waiting by an operator for the previous operational process to completeĪ majority of these issues can be fixed by applying continuous flow techniques and using standardized work instructions to ensure consistency of time and method for each production step.Waiting for an instruction from a manager.Waiting disrupts flow and is one of the more serious wastes. This induces stress and can cause injuries. This refers to any unnecessary motion taken by individuals, for example lifting heavy objects from the floor to a workbench. Lean inventory management best practices offer tremendous opportunities for increasing efficiency and profitability. Maintaining a continuous production flow.The goal under lean management principles is to have zero inventory by: Bad inventory management can have significant negative consequences for any manufacturing enterprise. It ties up working capital, can get damaged in transit, takes up space, and can become obsolete requiring it to be written off. Mitigate by sourcing raw materials closer to the factory.Įxcess inventory hides a myriad of sins. Mitigate by developing a value stream map to establish the optimal layout for the plant floor. Long distances between functional areas for work in process.Each unnecessary transportation adds costs and not value. This is the movement of materials from one location to another over farther distances than is necessary. Waste elimination increases customer satisfaction through on-time delivery, high-quality standards, and optimal price. So the only way to increase unit profitability is to reduce costs which require the elimination of all waste in the production process. if your price is too high your customers go elsewhere and if you price too low the value perception of your product is diminished and eventually so are sales. In practical terms, profit is your selling price less your costs. Lean manufacturing identifies seven common wastes which can be mitigated to improve profitability. These seven wastes are transportation, inventory, motion, waiting, overproduction, over-processing, and defects. So the question now becomes what actionable steps can you take to achieve these goals?Īccording to the Lean Enterprise Institute, the core idea behind “lean” is: “To maximize customer value while minimizing waste.” What are the Seven Wastes of Manufacturing?Īs described previously a waste (Muda in Japanese) is a process or activity that does not add value. If you embrace lean manufacturing principles and embody them in your work culture, they will guide you to adopt processes and activities best capable of maximizing efficiency, productivity, and profitability for your enterprise. In this way, subsequent defects are avoided and quality standards are maintained.
Do not accept defects or pass them down the line. Zero Defects – The principle of fixing problems immediately. The rhythm is determined by customer demand and can be adjusted to respond flexibly to changes. In a lean manufacturing context, it is the pulse or the heartbeat of production. Takt – Takt is a German word that means beat or timing. This minimizes overproduction and reduces working capital.įlow – The principle of creating a work in process that smoothly flows through production with minimal or no interruption. Pull – The principle of allowing demand to pull products as opposed to forecasting to push. The four Lean manufacturing principles are: pull, flow, takt, and zero defects. What are the four Lean manufacturing principles? Presently, lean manufacturing is a part of internationally acclaimed companies such as Ford, Toyota, Parker Hannifin, Intel, Textron, and more. Their endeavor to work efficiently on waste management while increasing cash flow made this approach globally accepted. Back in 1980, Toyota introduced the concept of lean manufacturing.
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