The document outlines lean thinking as a systematic approach aimed at continuous improvement and waste elimination in production processes. It highlights the history of lean manufacturing, key principles, and benefits such as increased productivity and reduced costs, while also identifying the eight deadly wastes. Additionally, the importance of specifying value and understanding value-added activities is emphasized to enhance overall efficiency.

1. The Value of Lean
Thinking
Presented by:
Brian D Krichbaum
Process
Coaching
Incorporated

2. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
What is Lean Thinking?
A systematic approach to identifying and
through continuous improvement
by flowing the service or product at the pull
in pursuit of perfection.
eliminating waste
of customers

3. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
History of Lean Manufacturing
1798
Eli Whitney develops
interchangeable parts
1933 - Toyota
Motor Company
established
1908 through 1913
Henry Ford develops
the moving assembly
line.
1920’s
Sakichi Toyoda
develops mistake
proofing and 5 Whys
August 4, 1937
First supermarket
in the United
States opened
June – August 1950
Deming introduces lean
quality principles to
Japanese engineers and
managers
1950’s - Taiichi Ohno
develops the Toyota
Production System
(TPS)

4. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Benefits of Lean Production
 Reduction in overhead / operating costs
 Productivity Increase (30% - 40%)
 Throughput Time Decrease (70% +)
 Increase Profit
 Customer Lead Time Reductions (50% +)
 Work in Process Inventory reductions (70%+)
 On Time Delivery to customers (95% +)
 Quality Performance Improvements

5. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
The Eight Deadly Wastes
 Overproduction
 Waiting
 Transportation (Moving)
 Non-Value Added
Processing
 Excess Inventory
 Defects
 Excess Motion
 Underutilized Resources

6. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Value Added Activity
What is value added activity?
 Tasks that customers recognize as valuable
 Tasks that are done right the first time
 Tasks that transform the product or service
5% Value
Added
95% Non-
Value Added

7. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Lean Manufacturing Principles1
 Specify Value
 Identify the Value Stream
 Make value creating steps flow
 Let the customer pull product
 Strive towards Perfection
1James Womack, Lean Thinking, (Simon & Schuster, 1996), p. 16 - 26

8. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
Lean Manufacturing Principles
 Correctly specifying value is critical in lean
thinking
 Providing the wrong good or service the
correct way is still waste
 Value must be defined in terms of specific
products at specific prices at specific times
 Only the ultimate customer can define value
– but they often don’t know how to do it!
Specify Value

9. Process
Coaching
Incorporated
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© 2008 Process Coaching Incorporated
 Customers and producers must challenge old
value definitions and work together to define
what is needed – not just a better widget
 Look at the “whole” product – not just the
features, but how it is used – to determine it’s
requirements
 Define the Target Cost (the cost of producing
the product waste free)
Lean Manufacturing Principles
Specify Value

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Coaching
Incorporated
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© 2008 Process Coaching Incorporated
 When the steps for producing a product aren’t
identified, they can’t be challenged
 The purpose of value stream mapping is to
identify waste
 We map the current state and the future
(lean) state
 All value streams have internal (our plant) and
external (our plant + suppliers + customers)
components
Lean Manufacturing Principles
Identify the Value Stream