This document discusses how Lean principles remain relevant in Industry 4.0. It provides a brief history of Lean from Deming and Toyota in the 1980s to its integration with design thinking, startups, and emerging technologies. The document argues that Lean thinking focuses first on solving customer problems, while Industry 4.0 provides enabling technologies, and that the two concepts are integratable, not mutually exclusive. It provides an example of how Lean tools and Industry 4.0 could work together to improve maintenance reliability and predictability. The conclusion is that Lean is more relevant than ever when integrated along a maturity journey that puts people and problem-solving at the center.

1. Is Lean Still
Relev ant
As we converge
to Industry 4.0?

2. 2
Overview
Integrating emerging technology with people capability to create a better value chain
01 03
02 04
05
Conclusion
Operator of the Future
A jump back in history
Strategic Alignment A Use Case

3. 3
Lean - A Brief History
01

4. 4
Deming.
TQM
Constantly improving the system
Breaking down barriers

5. 5
MIT Article, 1988
John Krafcik
Based on MIT
research, 1991
Term “Lean” vs “Buffered”
Thinking way & culture
Operators – Quality & Preventative
Maintenance
Jidoka: Robotics ≠ productivity
Produce value, not waste (customer
focused)
Lean Thinking.

6. 6
Agile.
Regain competitiveness in the US
1. Enrich with total solutions
2. Mastering change
3. Enhance competitiveness
4. Knowledge driven
Produce value & not waste
Lehigh University, 1991

7. Empathise with the customer to create value
design thinking
Ideo 1991

8. 8
Lean
Startup
Reis, 2011

9. Lean &
Industry 4.0
achieves more
Safety Improvement
Real time data
Quality monitoring
Line reliability
Improving change overs
Enabling new business models
Source: BCG, 2017

10. 10
Strategic Alignment
02

11. Shiny New Toy
Syndrome
With Industry 4.0 it is easy to be caught by the Shiny New
Toy Syndrome – Implementing the coolest new tech with
little value delivered.

12. 12
Industry 4.0 & Lean
Not mutually exclusive but two integratable concepts
Industry 4.0 is a matter of technology
Lean thinking starts first with problem to be solved.
People
& value

13. Lean Transformation Fundamental Q’s
What is our
purpose?
What is value adding
to the customer?
How do we
design, do &
implement?
What
capabilities
do I need?
Management
system &
behaviors?
Our Basic
thinking
assumptions?

14. 14
Hoshin Kanri - Strategy Alignment
IT & OT Collaboration
Roadmap – People,
Processes & Systems
Innovation at all levels
Focus on problems & maturity
build
1) Value stream mapping
2) Connectivity & data transparency
3) Big data analysis & value-add
services
Business Strategy, Lean thinking & Industry 4.0 Integrated

15. 15
Cost
Time
Go/No Go
Go/No Go
Go/No Go
Don’t define the technology to use
before you know your problem!
Agile/Lean Start-up Deployment
Start first with the problem from a customer lens……
Think big and start small
Partnerships and openness to collaboration
A3 Charter

16. 16
Operator of the Future
03

17. • Example “Managineer” or Trade Qualified Process Technician
Industry 4.0:
• Automation, data analytics and IIOT skills
and constant learning
• “Connected worker” with instant feedback
• Facilitating problem solving
• Convergence of operator and technician
eg diploma of engineering
• Managing across processes
Lean fundamentals:
• Engaged & empowered, value
alignment
• Visual performance management
• Owning quality and autonomous
maintenance
• Strategically aligned
• Problem solvers & innovators
• Structured development
Lean Operator | Industry 4.0 Operator

18. 1) Strategic
Deployment
2) Daily
Management
3) Employee
Development
Continuous
Improvement
& Employee
Respect
Lean System + Industry 4.0 requirements
Identify the future skills needed
Proactively plan and manage the transition
Start a reskilling and upskilling initiatives
Start today!
Industry 4.0
Development

19. 19
Example Use Case
04

20. Example lean toolkit
Team Work
Quality
Maintenance/
TQM
Autonomous
Maintenance
Asset
Management
5s
Focused
Improvement/
Kaizen
Visual
Management EH&S Just In
Time/SMED
Change Management
Stability
Daily
Management

21. Problem: Reliability
& Predictability

22. 22
Example Maintenance Lean Industry 4.0
STEP 1: Line Stop Problem Solving (MTTR),
STEP 2: Restore & Improve equipment to basic conditions of operation - Corrective Maintenance (CM),
Autonomous Maintenance (MTBF)
STEP 3: Periodic and Quantitative Maintenance (PMs), P-FMEA’s
STEP 4&5: Predictive & Prescriptive– IOT, Big data, Machine Learning/AI
Problems
/
breakdowns
Time
STEP 1
Recurrence Prevention
STEP 2
Full Machine Check
STEP 3
Periodic & Quantitative PM
MTTR,
MTBF
and no
repeats
CM
PM
Don’t allow the
same
breakdown to
occur
Don’t allow new
breakdowns to
occur
Maintenance decisions
made based on cost
benefit.
STEP 4 & 5
Predictive → Prescriptive Maintenance

23. 23
#1 Lesson – collect as much data as possible, and then analyse and
create value for today and tomorrow
Analytics eg Power BI

24. 24
Conclusion
05

25. 25
Lean is more relevant than ever!
Road map and
employee
development
Maturity journey Partnerships &
Collaboration to
drive value
People at the center
Integration of Lean &
Industry 4.0 Focus on Problems

26. THANK YOU
@annareidaus anna-reid-aus