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ARTICLE 1: Lean is about Minimizing Waste

 
Lean Manufacturing is a system based on the Toyota Production System.  Eight (8) types of waste within the manufacturing process are typically identified.  These eight (8) wastes include Transportation, Inventory, Movement, Waiting, Over-Processing, Over-Production, Defects, and Underutilized People.

The minimization of waste makes companies more efficient and cash rich.  But sometimes eliminating waste, even when a company is aware of it, is the most difficult thing to do.

One example of this is the reduction of work-in-process and finished goods inventory.  Being able to resist the temptation to run parts or products just to have ‘extra stock just-in-case’, keep a line ‘running’ or ‘make work’ for idle employees is uncomfortable but could yield great results in the longer term.

It shows the company where the real deficiencies are – for example, product development may be dead and in need of revamping or the company’s marketing strategy or product mix may need to be changed.

Forecasting may be far off what the current customers really desire or there may be a fear that when orders arrive, the company will not be able to deliver based on past history.  This past history may have included multiple breakdowns at critical moments, stock-outs in components, long job setups, employee absenteeism or difficulty in producing a full order in the budgeted time with no defects (and no overtime).

Lean Manufacturing features tools which may be used to minimize each of the issues listed above.  Some of these are shown in the following table: