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Lean Concepts &
Principles
© Operational Excellence Consulting. All rights reserved.
PDCA APPROACH TO WASTE ELIMINATION
VALUE-ADD VS. NON-VALUE ADD
1. Define value from the customer’s
perspective and provide what they
want
2. Identify the value stream or process
for each product or service and
reduce or eliminate steps that do not
add value
3. Align the value-added steps so they
flow continuously
4. Allow the level of customer demand
to pull the process, i.e., produce only
what is ordered
5. Pursue perfection through
continuous improvement
LEAN MANAGEMENT FRAMEWORK
LEAN PRINCIPLESWORK VS. WASTE
Over-production
Producing more than
what the customer
needs
Inventory
Building and storing
extra products the
customer has not
ordered
Transportation
Moving product from
one place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical or mental
motion that does not add
value
Intellect
Not using employees’
full intellectual
contribution
Waiting
Employees waiting for
another process or a
machine/tool
Waste
§ Transform or shape
material or information
§ Customer wants it and
willing to pay for it
§ Done right the first time
§ No value created but
required by current
thinking
§ No value created but
required by process
limitations
§ No value created but
required by current
technology
§ No value created but
required by government/
business regulations
§ Consume resources but
creates no value for the
customer
§ Could be stopped and it
would be invisible to the
customer
Value-Added
Activities
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Value-Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
EIGHT TYPES OF WASTE
Stability Standardization Just-In-Time Jidoka Involvement1 2 3 4 5
Stability
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
1
3 4
5
Heijunka Standardized Work Kaizen2
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
1
2
3
4
5
6
7
8
PLAN
ACT
CHECK
DO
Lean Concepts &
Principles
© Operational Excellence Consulting. All rights reserved.
PDCA APPROACH TO WASTE ELIMINATION
VALUE-ADD VS. NON-VALUE ADD
1. Define value from the customer’s
perspective and provide what they
want
2. Identify the value stream or process
for each product or service and
reduce or eliminate steps that do not
add value
3. Align the value-added steps so they
flow continuously
4. Allow the level of customer demand
to pull the process, i.e., produce only
what is ordered
5. Pursue perfection through
continuous improvement
LEAN MANAGEMENT FRAMEWORK
LEAN PRINCIPLESWORK VS. WASTE
Over-production
Producing more than
what the customer
needs
Inventory
Building and storing
extra products the
customer has not
ordered
Transportation
Moving product from
one place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical or mental
motion that does not add
value
Intellect
Not using employees’
full intellectual
contribution
Waiting
Employees waiting for
another process or a
machine/tool
Waste
§ Transform or shape
material or information
§ Customer wants it and
willing to pay for it
§ Done right the first time
§ No value created but
required by current
thinking
§ No value created but
required by process
limitations
§ No value created but
required by current
technology
§ No value created but
required by government/
business regulations
§ Consume resources but
creates no value for the
customer
§ Could be stopped and it
would be invisible to the
customer
Value-Added
Activities
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Value-Add
Non-Value Add:
Incidental Waste
Non-Value Add:
Pure Waste
Stability Standardization Just-In-Time Jidoka Involvement1 2 3 4 5
Stability
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
1
3 4
5
Heijunka Standardized Work Kaizen2
EIGHT TYPES OF WASTE
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
1
2
3
4
5
6
7
8
PLAN
ACT
CHECK
DO
© Operational Excellence Consulting. All rights reserved. 3
Operational Excellence Consulting is a management training and consulting
firm that assists organizations in improving business performance and
effectiveness. Based in Singapore, the firm’s mission is to create business
value for organizations through innovative design and operational excellence
management training and consulting solutions. For more information, please
visit www.oeconsulting.com.sg

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Lean Poster

  • 1. Lean Concepts & Principles © Operational Excellence Consulting. All rights reserved. PDCA APPROACH TO WASTE ELIMINATION VALUE-ADD VS. NON-VALUE ADD 1. Define value from the customer’s perspective and provide what they want 2. Identify the value stream or process for each product or service and reduce or eliminate steps that do not add value 3. Align the value-added steps so they flow continuously 4. Allow the level of customer demand to pull the process, i.e., produce only what is ordered 5. Pursue perfection through continuous improvement LEAN MANAGEMENT FRAMEWORK LEAN PRINCIPLESWORK VS. WASTE Over-production Producing more than what the customer needs Inventory Building and storing extra products the customer has not ordered Transportation Moving product from one place to another Defects Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical or mental motion that does not add value Intellect Not using employees’ full intellectual contribution Waiting Employees waiting for another process or a machine/tool Waste § Transform or shape material or information § Customer wants it and willing to pay for it § Done right the first time § No value created but required by current thinking § No value created but required by process limitations § No value created but required by current technology § No value created but required by government/ business regulations § Consume resources but creates no value for the customer § Could be stopped and it would be invisible to the customer Value-Added Activities Non-Value Add: Incidental Waste Non-Value Add: Pure Waste Value-Add Non-Value Add: Incidental Waste Non-Value Add: Pure Waste EIGHT TYPES OF WASTE Stability Standardization Just-In-Time Jidoka Involvement1 2 3 4 5 Stability Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke • Visual Control Goals: highest quality, lowest cost, shortest lead times Involvement 1 3 4 5 Heijunka Standardized Work Kaizen2 Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow-up 1 2 3 4 5 6 7 8 PLAN ACT CHECK DO
  • 2. Lean Concepts & Principles © Operational Excellence Consulting. All rights reserved. PDCA APPROACH TO WASTE ELIMINATION VALUE-ADD VS. NON-VALUE ADD 1. Define value from the customer’s perspective and provide what they want 2. Identify the value stream or process for each product or service and reduce or eliminate steps that do not add value 3. Align the value-added steps so they flow continuously 4. Allow the level of customer demand to pull the process, i.e., produce only what is ordered 5. Pursue perfection through continuous improvement LEAN MANAGEMENT FRAMEWORK LEAN PRINCIPLESWORK VS. WASTE Over-production Producing more than what the customer needs Inventory Building and storing extra products the customer has not ordered Transportation Moving product from one place to another Defects Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical or mental motion that does not add value Intellect Not using employees’ full intellectual contribution Waiting Employees waiting for another process or a machine/tool Waste § Transform or shape material or information § Customer wants it and willing to pay for it § Done right the first time § No value created but required by current thinking § No value created but required by process limitations § No value created but required by current technology § No value created but required by government/ business regulations § Consume resources but creates no value for the customer § Could be stopped and it would be invisible to the customer Value-Added Activities Non-Value Add: Incidental Waste Non-Value Add: Pure Waste Value-Add Non-Value Add: Incidental Waste Non-Value Add: Pure Waste Stability Standardization Just-In-Time Jidoka Involvement1 2 3 4 5 Stability Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke • Visual Control Goals: highest quality, lowest cost, shortest lead times Involvement 1 3 4 5 Heijunka Standardized Work Kaizen2 EIGHT TYPES OF WASTE Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow-up 1 2 3 4 5 6 7 8 PLAN ACT CHECK DO
  • 3. © Operational Excellence Consulting. All rights reserved. 3 Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg