Thursday, June 9, 2016

Evolution of Lean Philosophy from Industrial Engineering Philosophy

Lean Philosphy as explained by Jeffrey Morgan

The lean philosophy is based on a single principle: All forms of waste have to be identified and eliminated.

How Waste is Identified?

Inventory is a waste.

In the lean philosophy, inventory is considered waste.

Defects are  waste

In traditional quality control inspections are done after all operations have been completed. Processing defective parts in subsequent operations is a waste. Inspecting before succeeding operation is an improvement. Lean philosophy does not advocate only identifying and rectifying defective parts, it aims at eliminating the root causes for defects thus improving the process further towards waste free production.

System level optimization is done for components of sub systems of a product system.

Waste is identified by comparing to ideal processes.

Characteristics of Ideal Manufacturing  Processes

1. All products made are immediately sold.

2. Raw materials are purchased and used exactly when needed.

3. No defects are made.

4. Minimum processing costs are used to produce products.

Methods used by Toyota Production System to Create Lean System

1. All products made are immediately sold.  (Non-Stock and SMED)

2. Raw materials are purchased and used exactly when needed. (JIT and Kanban)

3. No defects are made (Andon and Poka Yoke).

4. Minimum processing costs are used to produce products (Nagara and Kaizen).

8 Key Features of Lean Philosophy

1. Process Orientation

2. Clearly Defined Roles and Responsibilities

3. Optimized Processes and Systems

4. Focus on the Customer

5. Transparency

6. Standardization

7. Continuous Improvement

8. Flexiblity (Economic Low volume production)

Creating Lean Corporations: Reengineering from the Bottom Up to Eliminate Waste
Jeffrey Morgan
CRC Press, 15-Jul-2005 - Business & Economics - 288 pages

The philosophy of scientific management - Industrial Engineering

Productivity and Efficiency is improved through
(1) the substitution of a science for the individual judgment of the workman;
(2) the scientific selection and development of the workman, after each man has been studied, taught, and trained, and one may say experimented with, instead of allowing the workmen to select themselves and develop in a haphazard way; and
(3) the intimate cooperation of the management with the workmen, so that they together do the work in accordance with the scientific laws which have been developed, instead of leaving the solution of each problem in the hands of the individual workman. In applying these new principles, in place of the old individual effort of each workman, both sides share almost equally in the daily performance of each task, the management doing that part of the work for which they are best fitted, and the workmen the balance.

The philosophy of scientific management is from 
Scientific Management in Machine Shop - Productivity Improvement - F.W. Taylor

Show me where Industrial engineering obstructed the development of Lean Philosophy?

Industrial engineering is the basis for development of productivity in Toyota Motors. No doubts additional insights were developed and used and thus Japanese developed Industrial Engineering further. It is a pity that IE profession is not adequately recognizing it and incorporating it appropriately in IE curriculums and training programmes to further Industrial Engineering development.

Principles of lean management - APICS

Lean management is closely related to the concepts of the Toyota production system (TPS). It is applied not only in production but across the entire enterprise, and it has broad applications in the service industries. Lean management involves the systematic identification and elimination of waste throughout the entire value stream. In the TPS, waste is identified by the Japanese word muda.

The key points distinguishing lean from other management concepts is the broadening of the definition of waste to include time and inventory. Through this, lean production tends to evolve quickly into continuous flow, utilizing little or no work-in-process inventory, and ultimately reaching the goal of one-piece flow of the product or service.

There are seven categories of waste:

overproduction—producing in excess or too early
waiting—queuing delays around production areas  (This refers to time)
transportation—unneeded movement of materials in and outside the facility
processing—poor process design
movement—staff activities that do not add value
inventory—idle stock accumulating cost without necessarily providing value
defective units—scrapping or reworking products and components.

APICS Operations Management Body of Knowledge Framework, Third Edition

Association for Operations Management (APICS) defines lean as a  philosophy of production that emphasizes the minimization of amount of all resources used in the various activities of the enterprise (Abbott et al., 2006  Understanding the Lean Supply Chain, 2005 Report on Lean Practices in the Supply Chain).

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