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LeanPrinciples across the Supply Chain

LeanThinking: Principles and Building Blocks

FrankL. Chelko, The Pennsylvania State University,

Definitionof lean:

Identificationand Elimination of Waste & Process Acceleration Speed

TheLean Philosophy

-      Theessence of lean is the systematicidentification and eliminationof waste in order to shorten lead-time to the customer.

-      All systems contain waste

-      Eachsystem is unique

-      Waste are those elements of thesystem that do not add value: Allnon value-added

-      Value is defined as that whichthe customer is willing to pay for

Goal: Eliminate “Wastes”

Japanese“Muda” the 8 Wastes

-      Overproduction:Making more, earlier, or faster

-      Inventory:Any supply in excess of a one0piece flow

-      Defectiveproduct: inspection, sorting, scrapping, replacement or repair

-      Over-processing:Efforts that add no value

-      Waiting:Idle time waiting for manpower, material, machinery/tools, measurement,information, etc

-      People:Underutilization of physical, mental, creative, skills, experience, etc.

-      Motion:Any movement of people, equipment, that does not add value

-      Transportation:Movement of parts/material in plant.

TheBroader “Enterprise Perspective”

-      EnergyResources: inefficient/excessive use of power, heat, cooling, etc.

-      Environmental(Green): Pollutants/Emissions (chemical, nuclear, biological, material)

Building Blocks of “Lean”: Basic Tools andTechniques

Additional Tools & techniques

-      Poka-Yoke-foolproofing

-      Jidoka:Automation inspection

-      KaizenBlitz: Continuous improvement process

^*1) 5S System plus 1: A systemfor workplace organization and standardization
(http://en.wikipedia.org/wiki/5S_(methodology))

-      Sorting: Organizing and discarding things not used

-      Storage:neatness/equipment layout in the workplace

-      Shining:work place cleanliness

-      Standardizing:

-      Sustaining:discipline toe maintain the other four

-      Safety:freedom from conditions which can cause injury of death to personnel, damage toor loss of equipment or property

^*2) process flowchart à value streamlined layout