Hochschule für Technik und Wirtschaft des Saarlandes -

University of Applied Sciences

LEAN MANAGEMENT
Prof. Dr. Udo Venitz
Lean Management
 Contents

Fundamentals
• Origin and History of Lean Management
• The Toyota Production System
• Targets of a Lean System

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 Origin an History of Lean Management
Lean Management is derived mostly from the Toyota Production System.

Production System
(TPS)

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 The Toyota Production System (TPS)
The TPS is build on the two pillars Just-In-Time and Jidoka.

Source: www.swmas.co.uk

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 The Toyota Production System (TPS)
„Quality must be built in during the manufacturing process!“ (Toyoda Sakichi)

Jidoka = Autonomation = Automation with a human touch

Toyoda Sakichi (1876 ~ 1930)

Type-G Toyoda Automatic Loom

(developed in 1924)

1929 Kiichiro Toyoda sold the Patent in England

1930 Toyota Motor Corporation founded

Source: www.toyota.co.jp/en/
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 Targets of a Lean System
The main target of every company is to generate Profit.

Profit

Satisfy customer demand

Best Prices Supply on time

Costs
Lowest Costs Shortest Lead Time Best Quality

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 Contents

Fundamentals
• Origin and History of Lean Management
• The Toyota Production System
• Targets of a Lean System

Basic Elements Wheel of

Improvement

• Muda – 7 types of waste

• KAIZEN – CIP
• Standards
• Visual Management

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 Basic Elements - MUDA
Wastes in all our processes lead to higher costs and longer lead times.

Muda – the 7 types of waste

Inventory

Overproduction Transport

Correction/ Scrap

(Over-)Processing

Motion
Waiting

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 Basic Elements - KAIZEN
We are continuously eliminating wastes by KAIZEN.

KAIZEN = Continuous Improvement (CIP)

CI P
Wheel of
Improvement

improvement
KAI = „change“

Standard

time

ZEN = „for the better“

Source: KAIZEN-Institute
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 Basic Element - Standards
“Without standards there can be no improvement” (Taiichi Ohno)

CIP
Wheel of
Improvement

improvement
Standard

time

Source: KAIZEN-Institute
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 Basic Elements – Standards
Standards should be used everywhere in our work environment!

Source: ixetic GmbH

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Basic Elements – Visual Management

Visual management is an important method

for a shop floor manager
to manage the daily business easily

Visual management shows any difference

between normal and abnormal
production processes
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 Basic Elements – Visual Management
Easy means can show us important informations!

Traffic Light Systems Machine Conditions

Source: KAIZEN-Institute

Source: ixetic GmbH

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 Contents

Fundamentals
Basic Elements

Just-In-Time (JIT)
• Flow
• One-Piece-Flow
• Pull-System
• Kanban
• Supermarkets
• Heijunka - Production Leveling
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 Just-In-Time (JIT)
„Making only what is needed, when it is needed, and in the amount needed!"

Ohno Taiichi (1912 ~ 1990)

o rd e r T im e lin e cash

Waste
Overproduction Inventory Value Added

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 Just-In-Time – Flow
Job-Shop Production is often full of waste, since there is no flow.
Overproduction
Job-Shop Production
Inventory

Transport Waiting

Motion

(Over-)Processing
Correction/ Scrap
Source: Liker Jeffrey K.: The Toyota Way, McGraw-Hill, New York 2004

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 Just-In-Time – One Piece Flow
Wherever possible establish a One Piece Flow.
Overproduction
Flow in a U-Shaped Production Line Inventory

Transport
Waiting

Motion

(Over-)Processing

Correction/ Scrap

Source: Liker Jeffrey K.: The Toyota Way, McGraw-Hill, New York 2004

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 Just-In-Time – Pull Principle
When it is not possible to let the material flow pull the material!

Synchronized Production

One Piece Flow / Continuous Flow Pull - Principle

Source: Syncro Consult GmbH & Co. KG Source: Syncro Consult GmbH & Co. KG

Inventory in the production

Closed Loop
Source: Eidenmüller

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 Just-In-Time – Kanban
The Kanban System is a easy mean to control the material flow.

Kanban System

Source: www.ebz-beratungszentrum.de
Source: www.shelftagsupply.com Source: www.orgatex.de

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 Just-In-Time – Kanban
The parts retrieval kanban controls quantity and transport of the finished parts.

parts retrieval kanban

Varnishing Mounting

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 Just-In-Time – Supermarket
The previous process can be seen as a Supermarket.

Source: ixetic GmbH

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 Just-In-Time – Supermarket
Supermarkets assure a supply of the next process!

Supermarket

Supplier Customer

• defined place with minimum, maximum and reorder level

• high visualization of inventory

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 Just-In-Time – Production Leveling
Variable customer demand makes a utilisation of Supermarkets difficult.

Source: Syncro Consult GmbH & Co. KG

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 Just-In-Time – Production Leveling
By batch production we try to reduce the frequency of change over.

Batch Production

Thursday D Change
Over

Wednesday C Change
Over

Tuesday B Change
Over

Monday A Change
Over

8:00 10:00 12:00 14:00 16:00 17:00

Total Number of Change Over Procedures: 4

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 Just-In-Time – Production Leveling
The target of production leveling: Every Part every Day!

Heijunka = Production Leveling

Thursday A B C I JK
Wednesday A B C D H
Tuesday A B C F G
Monday A B C D E
8:00 10:00 12:00 14:00 16:00 17:00

Total Number of Change Over Procedures: 21

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 Summary
We need all the methods to build up a lean system!
Just-In-Time (JIT)
• Flow
• One-Piece-Flow Highest Quality, Lowest Cost, Shortest Lead Time

• Push-System
• Pull-System
• Kanban JIT Jidoka
• Supermarkets
• Production Leveling
Donnerstag A B C I JK Basic Elements
Mittwoch A B C D H
Dienstag A B C F G
Montag A B C D E
8:00 10:00 12:00 14:00 16:00 17:00

Basics Elements Overproduction

• Muda – 7 types of waste Wheel of
CIP
Improvement

• KAIZEN – CIP

improvement
• Standards Standard

• Visual Management time

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