A simple introductory presentation on Lean Manufacturing. Learn about key principles of Lean Methodology and share this with your team using this simple Lean Thinking presentation. Presentation contains a number of simple exercise that you can use to practice the Lean Methodology in your business.

1. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL1
LEAN ENTERPRISE
INTRODUCTION TO LEAN METHODOLOGY

2. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL2
WHAT IS LEAN?
• A set of principles and techniques that
eliminate waste , and deliver to our customers…
Ä
exactly
what they need
Ä
when
they need it
Ä
in the quan.ty
they need
Ä
in the right sequence
Ä
without
defects
Ä
and
at the lowest
possible
cost
Value
Waste
Agility
Lead
Time

3. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL3
LEAN IS THE TOYOTA PRODUCTION SYSTEM DEVELOPED BY TOYOTA OVER
THE PAST 60 YEARS AND ADOPTED BY BUSINESSES AROUND THE WORLD

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WHAT IS VALUE?
• Those activities that a client is willing to pay for when they
engage our services.
WHAT IS WASTE?
• Everything else!

5. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL5
EXERCISE
• Define value for your product.
• What does the customer pay for when they buy your product?
• Which are the steps in your process that create that value?
• How long do those steps take?
• Compare this value adding time to the total time It takes you to process a
product or customer order from start to finish.
• What do you find?

6. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL6
TYPICALLY THERE ARE SEVEN
TYPES OF WASTE WE LOOK FOR
IN A WORK PLACE
DO YOU KNOW THEM?

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TRANSPORT
• Moving materials and product around
the site and from site to site.
• Double handling.
• Excessive mail attachments
• Travelling to and from client meetings
• Couriers
T
I
M
W
O
O
D

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INVENTORY
• Any form of batch processing
• Expediting and “work chasing” on a
regular basis
• High levels of stationery
• Large amounts of work in progress
T
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M
W
O
O
D

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MOTION
• Excessive movement of people
• Searching for information and files
• Finding data on shared or personal
drives
• Swapping information between IT
systems – cut and paste of data
• Moving between office equipment
T
I
M
W
O
O
D

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WAITING
• Waiting for a machine to finish its cycle.
• Waiting for someone else to do their job.
• Waiting form information from clients or
internal departments
• Waiting for work to be checked
• Waiting for decisions to be made or
approvals
• Systems response time or downtime
T
I
M
W
O
O
D

11. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL11
OVERPRODUCTION
• Producing more than is needed sooner
than it is needed
• Completing activities before they are
required
• Individual targets v teamwork
• Purchasing stationery before it’s needed
T
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W
O
O
D

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OVER PROCESSING
• Processes that don’t add value to the
customer.
• Excessive sign offs.
• Duplication of paperwork or files
• Unread reports with excessive data
• Too many checklists of quality checks
• Re-entering data across systems
T
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W
O
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D

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DEFECTS ERRORS, MISTAKES & CORRECTIONS
• Defective product or service
• Missing or incorrect information in data
• Calculation errors in billing and invoices
• File filing errors
• Client data held in different IT systems
T
I
M
W
O
O
D

14. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL14
EXERCISE – DO A WASTE WALK
1. List the Seven Wastes on a sheet of
paper
2. Find a place where you can observe
activity in your workplace safely..
3. Watch and notice the activities in your
workplace,
4. Write down all the wastes you see
against the types of waste listed.
5. Think about simple changes you could
make to eliminate those wastes.
6. Make three changes and see how they
go!

15. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL15
FOUR RULES OF THE TOYOTA PRODUCTION SYSTEM
Reference: Decoding the DNA of the Toyota Production System
by Steven Spear and H. Kent Bowen, Harvard Business Review, Sept-Oct 1999

16. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL16
RULE 1: ALL WORK IS HIGHLY SPECIFIED IN ITS CONTENT,
SEQUENCE, TIMING AND OUTCOME.

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EXERCISE – STANDARD WORK
• Choose a task in your business.
• Get the people together who routinely do that task.
• Ask them to list the steps involved in the order that they do them.
• Get the team members to time each other doing the task to see how long it
takes – try to record three or four cycles for each person.
• Check the quality and accuracy of the output and make sure that it is meeting
specifications.
• If you see improvements that can be made, try them out and do the task again.
• Compare results and agree which method gives a quality outcome at the best
time which all team members can work to.
• Write the new method down.
• “Bingo” you have created standard work for that task.

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RULE 2 – EACH PERSON KNOWS WHO PROVIDES
WHAT TO HIM, AND WHEN.

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EXERCISE – UNDERSTANDING INTERNAL CUSTOMERS AND SUPPLIERS
• Introduce yourself to a front-line employee in your business.
• Ask them about their job and what they do.
• Ask them who provides them with the material and information they need (their
supplier).
• Ask them who they provide materials and information to (their customer)
• Ask them how do they know what to do next after they have completed their
current task?
• Ask them how they think they are performing for their customer?
• How is their supplier performing for them?
• Go and see their supplier and customer and ask them their perspective on the
product and information they are receiving or supplying.
• What did you learn?
• What improvements can be made?

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RULE 3 – EVERY PRODUCT AND SERVICE FLOWS
ALONG A SIMPLE, SPECIFIED PATH.

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EXERCISE – UNDERSTANDING A VALUE STREAM
• Choose a key product or service.
• Start at the end customer.
• What are the requirements of the
customer in terms of output, quality,
delivery?
• Follow the process backwards step by
step through your business.
• What waste do you see?
• How can the process be simplified to
eliminate waste.

22. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL22
RULE 4: Any improvement must be made
in accordance with a scientific method,
Under the guidance of a teacher,
at the lowest possible level in the organization.
PDCA
Do
Act
Plan
Check

23. © TXM Lean Solutions Pty Ltd 2012 CONFIDENTIAL23
EXERCISE – FIVE WHYS
• Think of a problem your business had in the past day – it could be a quality problem, a delivery
problem or a machine breakdown – any problem.
• Get together the people who know about the problem.
• Agree a definition for the problem and write it down.
• GO to the workplace were the problem is evident
• Ask why the problem occurred.
• Continue to ask “why” five times until you get to the root cause.
• Have you found the root cause?
• Agree a corrective action, agree who is responsible for completing it and set a time for it to be
completed.
• Once the corrective action is in place “check” – has the problem happened again – repeat the
check for a few days or weeks until you are sure the problem has gone.
• Document the solution in your updated standard work, bills of materials, quality records or
other documents.

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