Lean Management

The story of lean management is rooted in post-war Japan, where Toyota, facing resource constraints,
aimed to create a more efficient production system. Taiichi Ohno, a Toyota engineer, is considered the
father of lean manufacturing. He devised the Toyota Production System (TPS), which focused on
eliminating waste and maximizing value for the customer.Lean principles were later popularized in
the West by researchers who studied TPS. They coined the term "lean" to describe this approach to
manufacturing. Today, lean management is applied beyond manufacturing to various industries,
including healthcare and software development.
What is Lean?
Make Everything Simpler, Easier, Faster & Flexible. Lean is Simple, Fun & Exciting. “Our goal is for
everything to be struggle-free—or to have zero struggle in every activity.” – Paul Akers
3M Example
Suppose that a firm needs to transport 900kg of material to its customer and is considering its options.
• Truck available with a max payload of 500kg.
Wastes
Waste is found in every process everywhere at every level of the organization

Types of wates

VA : Anything that adds value as perceived by the consumer is termed Value Adding (VA).
NVA : Anything that doesn’t add value as perceived by the consumer is Non Value Adding (NVA) or
Waste
In non-lean value streams significantly more than 90% of the activity and resource is NVA.

Finding the waste component is not a burden, it’s a game – a giant scavenger hunt.
“Lean is about continually eliminating the waste that’s involved in everything you do in your life to have
a continuous flow without interruptions.”

8 Deadly sins of waste

How to find a waste:
1) Go to GEMBA
2) Observe the process
3) Breakdown the entire process into steps
4) Critically examine the recorded facts
5) Classify work step into VA & NVA

How to find or eliminate Waste?

1.Kaizen
Teaching & Training people and building Continuous improvement culture
• Nothing is good enough
• There are always ways in which a process can be improved.
• An organization should constantly strive to make those improvements.
2.5S+1
5S provide a methodology for organizing, cleaning, developing, and sustaining a productive work
environment.
It is an Organizational Culture
3.Value stream Mapping [Macro view of entire work system]
Values Stream Mapping is a process of creating a single sheet overview of all the process involved in
whole supply chain (plant), from the moment the customer places the order for a product, until the
customer has received that product in their facility.
The value stream is the entire set of activities required to bring a product or service into the hands of
the customer
4.SMED
A theory and technique for performing changeover in under ten minutes.
• It is an entirely new way of thinking about production.
Developed by Shigeo Shingo, a Japanese industrial engineer
• Started experiments with Toyo Kogyo’s Mazda plant in 1950.
• Development took nineteen years.
• Finishing touches were stimulated by Toyota Motor Company.
• Shingo reduced Press changeover times from 10 –12 hours to less than 10 minutes
How to perform SMED
Separate Internal & External Activities
Internal Activity : Activities that must be performed while the machine is stopped or idle
External Activity : Activities that can be performed while the machine is running or producing
Six Sigma
Six Sigma's introduction in industries is a story of continuous improvement, pioneered by Motorola in
the 1980s. Here's a more detailed look: * Motorola's Quality Crisis: In the 1980s, Motorola faced a
concerning rise in product defects. They implemented Six Sigma, a data-driven approach focused on
minimizing variation and defects. * The FOD Mystery: Initially, the culprit seemed to be foreign object
damage (FOD) during manufacturing. But Six Sigma's rigorous analysis revealed a deeper issue -
inconsistencies in the manufacturing process itself, leading to electrical problems.This Motorola
incident exemplifies the power of Six Sigma. By diving beyond surface-level problems, Six Sigma helps
industries identify and address the root causes of quality issues, leading to significant improvements.

What is Six Sigma ?

• Goal – Reduce process variation to improve performance
• Quality Level - 3.4 Defects per Million Opportunities
• Method – DMAIC approach
• Focus – • Process Stability and Capability • Minimise defects and increase yield • Deliver perfect
products
• Developed by Motorola, made famous by GE.
Why we need Six Sigma
• When there is an output … there is a Process
• When there is a Process … there is Performance Variation
• When there is Performance Variation … there is a 6 Sigma Opportunity
Six Sigma
Six Sigma's introduction in industries is a story of continuous improvement, pioneered by Motorola in
the 1980s. Here's a more detailed look: * Motorola's Quality Crisis: In the 1980s, Motorola faced a
concerning rise in product defects. They implemented Six Sigma, a data-driven approach focused on
minimizing variation and defects. * The FOD Mystery: Initially, the culprit seemed to be foreign object
damage (FOD) during manufacturing. But Six Sigma's rigorous analysis revealed a deeper issue -
inconsistencies in the manufacturing process itself, leading to electrical problems.This Motorola
incident exemplifies the power of Six Sigma. By diving beyond surface-level problems, Six Sigma helps
industries identify and address the root causes of quality issues, leading to significant improvements.

What is Six Sigma ?

• Goal – Reduce process variation to improve performance
• Quality Level - 3.4 Defects per Million Opportunities
• Method – DMAIC approach
• Focus – • Process Stability and Capability • Minimise defects and increase yield • Deliver perfect
products
• Developed by Motorola, made famous by GE.
Why we need Six Sigma
• When there is an output … there is a Process
• When there is a Process … there is Performance Variation
• When there is Performance Variation … there is a 6 Sigma Opportunity
Lean Six Sigma
The Marriage of Two Powerhouses: Lean Six SigmaThe early 2000s witnessed the birth of a powerful
improvement methodology - Lean Six Sigma. This approach merged the strengths of two existing
philosophies: * Lean Manufacturing: Developed in post-war Japan by Taiichi Ohno, Lean
manufacturing focuses on eliminating waste and streamlining processes to maximize value for the
customer. * Six Sigma: Pioneered by Motorola in the 1980s, Six Sigma is a data-driven approach that
minimizes variation and defects in processes to achieve high quality.The book "Leaning into Six
Sigma," published in 2001, formally introduced this combined methodology, highlighting its potential
for significant improvement across industries.A Healthcare Example: Streamlining Patient
AdmissionsLet's delve into an interesting example of how Lean Six Sigma is revolutionizing
healthcare. Many hospitals are leveraging this approach to address challenges like long wait times.
Here's how it might work: * Lean in Action: Through Lean principles, hospitals can identify and
eliminate unnecessary steps in patient admissions. This might involve streamlining paperwork,
reducing handoffs between staff members, or optimizing appointment scheduling. * Six Sigma's Role:
Six Sigma comes into play by providing a data-driven approach to analyze variations that contribute to
wait times. Hospitals can pinpoint bottlenecks in the admissions process, identify root causes of
delays, and implement data-backed solutions.By combining Lean's waste-elimination focus with Six
Sigma's data analysis, hospitals can achieve significant improvements in patient flow, reduce wait
times, and ultimately enhance the quality of care. This is just one example of how Lean Six Sigma is
transforming various industries by promoting efficiency and excellence.
Lean Six Sigma
The Marriage of Two Powerhouses: Lean Six SigmaThe early 2000s witnessed the birth of a powerful
improvement methodology - Lean Six Sigma. This approach merged the strengths of two existing
philosophies: * Lean Manufacturing: Developed in post-war Japan by Taiichi Ohno, Lean
manufacturing focuses on eliminating waste and streamlining processes to maximize value for the
customer. * Six Sigma: Pioneered by Motorola in the 1980s, Six Sigma is a data-driven approach that
minimizes variation and defects in processes to achieve high quality.The book "Leaning into Six
Sigma," published in 2001, formally introduced this combined methodology, highlighting its potential
for significant improvement across industries.A Healthcare Example: Streamlining Patient
AdmissionsLet's delve into an interesting example of how Lean Six Sigma is revolutionizing
healthcare. Many hospitals are leveraging this approach to address challenges like long wait times.
Here's how it might work: * Lean in Action: Through Lean principles, hospitals can identify and
eliminate unnecessary steps in patient admissions. This might involve streamlining paperwork,
reducing handoffs between staff members, or optimizing appointment scheduling. * Six Sigma's Role:
Six Sigma comes into play by providing a data-driven approach to analyze variations that contribute to
wait times. Hospitals can pinpoint bottlenecks in the admissions process, identify root causes of
delays, and implement data-backed solutions.By combining Lean's waste-elimination focus with Six
Sigma's data analysis, hospitals can achieve significant improvements in patient flow, reduce wait
times, and ultimately enhance the quality of care. This is just one example of how Lean Six Sigma is
transforming various industries by promoting efficiency and excellence.