Chapter 13 Lean, agile and mass customization
strategies
Lean production
Core of lean philosophy is the notion of putting the customer and what they value first.
Understanding customer values allows firms to understand what waste is and how to remove it using
the lean tools an techniques. 5 principles of lean production:
1. Specify what value means from the standpoint of an organizations target customer
2. Identify steps in the process that are required to deliver value to the customer, this is called
the value stream
3. Getting the value to flow through the value stream without interruption, rework, double
handling and waiting done by load leveling (pace or work through the work station; or
called heijunka in Japanese) takt time (the rate at which products pass through an
operation) = effective working time per shift / customer requirement per shift
4. Pull planning techniques are a vital part of lean production as they ensure that no part enters
the operation unless an order is attached to it
5. Requirement to strive for perfection done through CI or kaizen (another essential element
of lean production)
Waste elimination (MUDA) in lean production
Waste reduction and removal is essential to delivering customer value through manufacturing and
service processes. Waste is the opposite of value. Original 7 production wastes from Shigeo Shingo
(as part of the Toyota Production System), 8 th waste is added (related to underutilizing the talents
and skills of the people employed in the process)
1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Overproduction
6. Overprocessing
7. Defects
8. Skills
Lean tools and techniques in manufacturing
Generally lean production is only suitable for repetitive processes that are tightly controlled.
- Single minute exchange of dies (SMED)
= reducing the cycle time of machinery through minimizing machine downtime
Reduction of cycle time is achieved by doing as much of the changeover while the machine is
running to minimize the activities – and time these take – when the machine is stopped
strategies
Lean production
Core of lean philosophy is the notion of putting the customer and what they value first.
Understanding customer values allows firms to understand what waste is and how to remove it using
the lean tools an techniques. 5 principles of lean production:
1. Specify what value means from the standpoint of an organizations target customer
2. Identify steps in the process that are required to deliver value to the customer, this is called
the value stream
3. Getting the value to flow through the value stream without interruption, rework, double
handling and waiting done by load leveling (pace or work through the work station; or
called heijunka in Japanese) takt time (the rate at which products pass through an
operation) = effective working time per shift / customer requirement per shift
4. Pull planning techniques are a vital part of lean production as they ensure that no part enters
the operation unless an order is attached to it
5. Requirement to strive for perfection done through CI or kaizen (another essential element
of lean production)
Waste elimination (MUDA) in lean production
Waste reduction and removal is essential to delivering customer value through manufacturing and
service processes. Waste is the opposite of value. Original 7 production wastes from Shigeo Shingo
(as part of the Toyota Production System), 8 th waste is added (related to underutilizing the talents
and skills of the people employed in the process)
1. Transportation
2. Inventory
3. Motion
4. Waiting
5. Overproduction
6. Overprocessing
7. Defects
8. Skills
Lean tools and techniques in manufacturing
Generally lean production is only suitable for repetitive processes that are tightly controlled.
- Single minute exchange of dies (SMED)
= reducing the cycle time of machinery through minimizing machine downtime
Reduction of cycle time is achieved by doing as much of the changeover while the machine is
running to minimize the activities – and time these take – when the machine is stopped
