INSEAD Library

Includes bibliographical references and index

Digitized

The Lean Toolbox The Essential Guide to Lean Transformation Table of Contents 1 THE FOURTH EDITION OF THE LEAN TOOLBOX ......... 1 1.1 GOING BACK... .................................................................................. 1 1.2 LEAN, SUSTAINABILITY AND CHANGE............................................ 2 1.3 LEAN EVOLUTION...............................................................................2 5.3 UNDERSTANDING THE PROCESS: THE PRODUCT-PROCESS MATRIX...................................................................................... 50 5.4 UNDERSTANDING THE CUSTOMER................................................51 5.5 VALUE STREAM ECONOMICS: WHAT TO MAKE WHERE............... 56 5.6 THE ESSENTIAL PARETOS...............................................................58 5.7 FORMULATING AN OPERATIONS STRATEGY................................. 61 5.8 POLICY DEPLOYMENT / HOSHIN KANRI.......................................... 63 2 PHILOSOPHY..................................................................... 4 2.1 LEAN SEEKS THE 'IDEAL WAY'......................................................... 4 2.2 LEAN IS NOT TOOLS - OR EVEN A SET OF INTEGRATED TOOLS!......................................................................................... 4 2.3 MUDA, MURI, AND MURA................................................................... 5 2.4 A FORMULA FOR 'LEAN'.................................................................... 7 2.5 LEAN IS 'SYSTEM'............................................................................... 8 2.6 LEAN IS CONTINUOUS LEARNING.................................................. 9 2.7 LEAN IS BOTH REVOLUTION AND EVOLUTION............................ 10 2.8 LEAN IS 'DISTRIBUTED DECISIONS'.............................................. 10 2.9 TWO ANALOGIES AND THE 'F'S: THE ORCHESTRA AND FITNESS.................................................................................... 10 2.10 THE FIVE LEAN PRINCIPLES......................................................... 12 2.11 THE 25 CHARACTERISTICS OF LEAN ........................................ 13 2.12 THE TOYOTA WAY..........................................................................16 2.13 THE LEAN ENTERPRISE HOUSE................................................. 17 6 PREPARING FOR FLOW................................................. 68 6.1 DEMAND MANAGEMENT....................................................................68 6.2 TOTAL PRODUCTIVE MAINTENANCE (TPM).................................. 70 6.3 TAKT TIME AND PITCH TIME............................................................. 76 6.4 ACTIVITY TIMING AND WORK ELEMENTS....................................... 77 6.5 55 .................................................................................................. 78 6.6 VISUAL MANAGEMENT...................................................................... 82 6.7 STANDARD WORK, STANDARD OPERATING PROCEDURES, AND JOB BREAKDOWN ANALYSIS......................................... 84 6.8 CHANGEOVER REDUCTION ISM ED).............................................. 89 6.9 SMALL MACHINES, AVOIDING MONUMENTS AND THINKING SMALL...................................................................... 92 7 MAPPING, ASSESSMENTS AND ANALYSIS................. 94 7.1 THE VALUE STREAM IMPLEMENTATION CYCLE............................ 94 7.2 STAGES OF MAPPING......................................................................... 96 7.3 MAPPING AND IMPLEMENTATION.................................................... 99 7.4 TYPES OF MAPPING ......................................................................... 101 7.5 LEAN ASSESSMENTS AND PRINCIPLES .................................... 117 3 VALUE AND WASTE....................................................... 18 3.1 VALUE................................................................................................ 18 3.2 VALUE AND TRIZ.............................................................................. 19 3.3 MUDA AND THE 7 WASTES............................................................. 20 3.4 TYPE 1' AND 'TYPE 2' MUDA, ELIMINATION AND PREVENTION ........................................................................... 20 3.5 VALUE ADDED, NON VALUE ADDED (NECESSARY AND AVOIDABLE)...............................................................................21 3.6 OHNO'S 7 WASTES........................................................................... 21 3.7 THE NEW WASTES........................................................................... 24 3.8 GEMBA AND 'LEARNING TO SEE'................................................... 27 3.9 TIME-BASED COMPETITION ........................................................... 28 8 LAYOUT AND CELL DESIGN........................................ 121 8.1 LAYOUT, CELL AND LINE DESIGN, LEAN PLANT LAYOUT 121 8.2 MAJOR TYPES OF LAYOUT: THE PRODUCT PROCESS MATRIX.................................................................................... 121 8.3 GENERAL LAYOUT: GOOD AND NOT SO GOOD AT THE FACTORY LEVEL.................................................................... 122 8.4 MATERIAL HANDING: GOOD AND NOT SO GOOD AT THE FACTORY LEVEL. .................................................................. 123 8.5 CELLS............................................................................................... 123 8.6 CELL BALANCING............................................................................. 128 8.7 CHAKU-CHAKU CELL OR LINE....................................................... 133 8.8 VIRTUAL CELLS............................................................................... 133 8.9 MOVING LINES AND PULSE LINES................................................. 134 8.10 ERGONOMICS................................................................................. 135 4 LEAN TRANSFORMATION FRAMEWORKS.................. 32 4.1 THE HOUSE OF LEAN...................................................................... 32 4.2 THE FLOW FRAMEWORK................................................................ 32 4.3 THE HIERARCHICAL TRANSFORMATION FRAMEWORK............. 36 4.4 GENERAL APPROACHES TO LEAN IMPLEMENTATION. ............. 43 4.5 THE FAILURE MODES OF LEAN IMPLEMENTATIONS.................. 44 4.6 THE WIREMOLD CASE..................................................................... 48 4.7 A WARNING ON LEAN IMPROVEMENT.......................................... 48 9 SCHEDULING................................................................. 137 9.1 THE LEVEL SCHEDULE.................................................................... 138 9.2 CONSTRUCTING A LEAN SCHEDULING SYSTEM: EIGHT BUILDING BLOCKS................................................................. 139 9.3 THE ELEVEN SCHEDULING CONCEPTS........................................ 142 5 STRATEGY, PLANNING, DEPLOYMENT....................... 49 5.1 OPERATIONS STRATEGY................................................................ 49 5.2 TYING IN OPERATIONS STRATEGY WITH LEAN........................... 50 10 THEORY OF CONSTRAINTS AND FACTORY PHYSICS....................................................................... 163 10.1 A DRUM BUFFER ROPE ILLUSTRATION.................................... 163 10.2 DEPENDENT EVENTS AND STATISTICAL FLUCTUATIONS .164 10.3 CONSTRAINTS, BOTTLENECKS AND NON-BOTTLENECK RESOURCES: THE SYNCHRONOUS RULES....................... 165 10.4 THE LAWS OF FACTORY PHYSICS ............................................166 10.5 CONFLICTS BETWEEN LEAN THINKING AND MRP THINKING?.............................................................................. 167 10.6 THE THEORY OF CONSTRAINTS IMPROVEMENT CYCLE ...... 169 15 NEW PRODUCT DEVELOPMENT AND INTRODUCTION........................................................... 224 15.1 FOUR OBJECTIVES AND SIX TRADE-OFFS............................... 225 15.2 WASTES IN NEW PRODUCT DEVELOPMENT............................ 226 15.3 TOYOTA'S APPROACH TO PRODUCT DEVELOPMENT ........... 227 15.4 COST............................................................................................. 230 15.5 SPEED AND LEVELLING: CRITICAL CHAIN and LEAN PROJECT MANAGEMENT........................................................................ 237 15.6 QUALITY........................................................................................ 238 15.7 ADDITIONAL TOOLS FOR LEAN PRODUCT DEVELOPMENT.... .............................................................................................. 244 11 QUALITY....................................................................... 171 11.1 A FRAMEWORK FOR LEAN QUALITY......................................... 171 11.2 COMPLEXITY................................................................................. 172 11.3 VARIATION.....................................................................................173 11.4 MISTAKES...................................................................................... 173 11.5 SIX SIGMA......................................................................................174 11.6 HOW TO CALCULATE THE SIGMA LEVEL OF A PROCESS...... 176 11.7 INTEGRATING LEAN AND SIX SIGMA......................................... 177 11.8 MISTAKE-PROOFING (POKAVOKE)............................................ 179 16 CREATING THE LEAN SUPPLY CHAIN..................... 247 16.1 WHAT IS SUPPLY CHAIN MANAGEMENT?.................................247 16.2 DYNAMIC DISTORTIONS.............................................................249 16.3 MANAGING SUPPLIER RELATIONS............................................ 252 16.4 SUPPLY CHAIN COLLABORATION.............................................. 257 16.5 LEAN LOGISTICS.......................................................................... 259 16.6 ORDER FULFILMENT AND PRODUCT CUSTOMISATION ....... 260 16.7 CREATING HIGH-PERFORMANCE SUPPLY CHAINS................ 264 12 IMPROVEMENT............................................................ 182 12.1 IMPROVEMENT CYCLES: PDCA, DMAIC, 8D, IDEA, AND TWI............................................................................................ 182 12.2 'FIVE WHYS', ROOT CAUSES AND SIX HONEST SERVING MEN......................................................................................... 185 12.3 ORGANISING FOR IMPROVEMENT.............................................186 12.4 CONTINUOUS IMPROVEMENT APPROACHES......................... 189 12.5 KAIZEN........................................................................................... 192 12.6 MESS MANAGEMENT.................................................................. 199 12.7 A3 PROBLEM SOLVING AND REPORTS..................................... 199 12.8 COMMUNICATIONS BOARD....................................................... 201 13 MANAGING CHANGE.............................................................................. 203 13.1 PEOPLE AND CHANGE IN LEAN..................................................203 13.2 WHAT IS THE 'SOCIAL SYSTEM'?............................................... 203 13.3 MODELS FOR CHANGE MANAGEMENT..................................... 204 13.4 CREATING THE LEAN CULTURE................................................. 210 13.5 TRAINING WITHIN INDUSTRY (TWI).......................................... 212 13.6 THE ADOPTION CURVE AND KEY PEOPLE............................... 215 14 SUSTAINABILITY-MAKING CHANGE STICK......................................... 218 14.1 PROCESS (AND SYSTEM) SUSTAINABILITY............................ 218 14.2 STAFF SUSTAINABILITY...............................................................220 17 ACCOUNTING AND MEASUREMENT.........................265 17.1 LEAN ACCOUNTING..................................................................... 265 17.2 PERFORMANCE MEASURES.......................................................269 17.3 THE BASIC LEAN MEASURES..................................................... 272 17.4 TARGET COSTING, KAIZEN COSTING AND COST DOWN 275 18 LEAN - HOW IT ALL CAME ABOUT............................278 18.1 LEAN BEFORE TOYOTA............................................................... 278 18.2 TOYOTA: THE BIRTHPLACE OF LEAN........................................ 279 18.3 WHY DO WE CALL IT 'LEAN'?...................................................... 280 19 FURTHER RESOURCES- WHERE TO GET HELP .... 283 19.1 COMPANION VOLUMES............................................................... 283 19.2 RESEARCH CENTRES, RESEARCH PROGRAMMES AND WEB RESOURCES........................................................................ 283 19.3 ARTICLES, BOOKS AND VIDEOS................................................ 283 19.4 CERTIFICATION........................................................................... 284 INDEX................................................................................. 285