Transforming to the Lean Approach, Benefits and Objections of Lean

Key Steps in Transforming a Company to the Lean Approach

1. Establish a steering team (conduct strategic planning session)
2. Train the steering team & the model line team in the disciplines of lean
3. Perform PQR analysis (product-quantity-routing)
4. Identify value streams (select a value stream)
5. Calculate model line Takt time
6. Value stream map the model line (assemble current state map)
7. Balance the line (assign standard work)
8. Establish standard WIP (inventory levels)
9. Test the system (virtual cell—document results)
10. Setup reduction event
11. Conduct 5S event (apply TPM techniques)
12. Establish visual signals (reduce paperwork)
13. Explore alternative flow patterns
14. Develop block layout
15. Develop detailed layout
16. Execute move
17. Select next value stream and repeat

 Benefits of Lean Production

• Reduced inventory
• Improved quality
• Lower costs
• Reduced space requirements
• Shorter lead time
• Increased productivity
• Greater flexibility
• Better relations with suppliers
• Simplified scheduling and control activities
• Increased capacity
• Better use of human resources
• More product variety

 The Objections to Lean

• Very hard to deal with raw material suppliers, if fully depend on customer order
• Takes too much discipline
• Takes too long to implement
• Process is too complex (have to deal with too many uncontrollable variables, like late supplier shipments, sick people, etc.)
• Process requires a large batch size
• Doesn’t make sense
• How lean will work with MRP system