What is Lean? (Toyota Production System and Lead Time)

- Six Sigma Academy Amsterdam -
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04:15:36 of on-demand video • Updated May 2021

  • Increase profit and reduce costs, based on a method that has proven to be effective.
  • Become externally certified in Lean Management.
  • Apply the 7 tools of quality.
  • Apply the 5S methodology to redesign the workplace.
  • Use Quality Function Deployment to (re)design your products and services.
  • Draw Value Stream Maps as a first step to get rid of inefficiency in your processes.
  • Identify and mitigate various forms of waste or inefficiencies.
  • Make a transition from push production to JIT/Pull production.
  • Perform research based on the Six Sigma DMAIC methodology.
  • Create Pareto charts with Excel to identify 'vital few' problems that are holding back your organization.
  • Draw Flow Charts to summarize processes.
  • Steer brainstorm processes with the fish bone or Ishikawa tool.
  • Apply the Poke Yoke principle to prevent mistakes by workers and customers.
  • Apply the SMED principle to facilitate speedy change in production.
  • Calculate takt time and cycle time to mitigate bottlenecks and improve process speed.
  • Apply the Andon principle to quickly identify process problems.
  • Apply the Heijunka or production leveling principle to be able to respond fast to customer demands.
  • Reduce the Lead Time of any process, thereby satisfying your client demands faster.
  • Set up basic experiments as part of Six Sigma DMAIC.
  • Apply Little's Law
  • Apply OEE (Overall equipment effectiveness) in manufacturing or services like IT sector
  • Improve supply chain
English Warm welcome everyone. Welcome and thank you for choosing our course. In this very very first lecture.... we have three learning goals for you. So we're going to talk about the benefits of lean. What Lean is. In a very condensed way. We're going to explain it and we're going to close with explaining the structure of this course. Let's start first with the benefits of lean. Well benefits for organizations are numerous. Just look on the Internet and you see how Forbes 500 companies have benefited enormously from applying lean principles throughout the organization. So it's not a management fad. You see it happening all over again and again and again. Companies making enormous savings by applying lean principles. But there are also benefits for let's say the employee. So those people who are looking for jobs or are employed and wish to climb the the career ladder. .... You know what? Go to any kind of job vacancy website or database such as monster.com for instance and just type in 'lean or 'lean management' or' lean manufacturing' ...it really doesn't matter all that much.... as a keyword. And then you will be amazed by the enormous amount of job applications that require a good knowledge of lean as even a prerequisite to apply for those jobs. So convince yourself. Go on the Internet and have a look around. But what is also interesting about those job vacancies is that these are actually coming from a diverse set of industries ,such as hospitals, health care, I.T. automotive, services in general. There is an enormous amount of industries that implement that lean actually. Not just the production but also services etc.. So these are the benefits of lean for organizations and for job seekers and those who are already employed. Have a look at the 'house of Toyota' here. The house of Toyota. Now why would I show the house of Toyota? Well first things first. It is not the actual house in which Mr. Toyota lives. Neither is it the house where this gentleman lives. Who is this gentleman this gentleman? Taiichi... Ohno. And why would I show you Taichi Ohno? And why would I bring up the house of Toyota? It has a very clear reason. ..... Mr. Taiichi Ohno was a person that worked for the Toyota company in the last century. And he is responsible for coming up with what is known as the Toyota production system. The Toyota production system. The Toyota production system helped to cut costs inside the Toyota company considerably and consistently. It was an enormous success . Often when you have a big success story.... word of mouth spreads. And people in the West they started emulating this Toyota production system. They started doing the same things that the Toyota company did inside their factories to also benefit from the savings and the increasing profits. However when it was implemented in the West, they called it, not Toyota production system, but they called it.... .... Yes you guessed it right. Lean! So lean is the Toyota production system and Toyota production system is lean. It's the same. This is just the Westernized way of referring to it. Now this brings me back to the house of Toyota. The elements that together make up the Toyota production system are put in this so-called house of Toyota. So we have concepts like poka yoke, or concepts like and on automatic stops, Kaizen etc. They all make up this house of Toyota, which makes up the Toyota production system which makes up lean. Throughout this course.... what we're going to do. is we're going to take you step by step through each one of these elements. In one lecture we discuss poka yoke. In another one we discuss andon. Heijunka. One piece flow etc. And at the end of this course you will know the complete house of Toyota.... ...which means you know the complete lean philosophy or Toyota production system. We're going to do it bit by bit of course. Otherwise it's going to be quite overwhelming. So quite a central position in this house of Toyota is reserved for this part: eliminating waste. Now how is waste defined? Waste is defined as non value adding activities, which are activities that the client is not willing to pay money for. OK. So waste are non value adding activities. These are defined as activities that the client is not willing to pay money for. The opposite are value adding activities, which are activities that the client is willing to pay money for. OK. No within lean we try to eliminate waste or reduce waste as much as possible. We try to reduce or eliminate non value adding activities as much as possible. OK. Let's have a look at a process. For instance the process to produce some kind of a woman's dress. OK. Now let's say a process to produce some kind of woman's dress. Obviously you don't produce arms and legs with that. But that doesn't really matter. The process starts with ordering and it ends with receiving the dress. And in the meantime all kinds of activities are occurring. For instance the fabric has to be woven. It has to be colored in the desired color. And it has to be cut in the desired dimensions. And then that can be received. But there are also other activities occuring. For instance between ordering and weaving. Maybe we have to wait for a signature from John. And John is ill at home and he won't be back for the coming two days. If you look at these activities, if we look at weaving, coloring, cutting..... would you say that these are value adding activities, or non value adding activities? If I would be a customer I would say yes. Because I am paying for it. You're willing to pay money for it. But what about this one? Waiting for the signature from John. Would you be willing to pay some extra money for that just to wait for that signature? Why would I? Why would you? Exactly. So in that sense that kind of activity, the waiting for the signature of John., is a non value adding activity..... ....or a form of waste. And it should be reduced. When we reduce these non value adding activities.... we reduce lead time, which is defined as the time difference between the start of the process and the end of the process. Now the shorter lead time becomes, the faster you can serve your customer. The customer is going to be happy. You are also going to be happy, because when you reduce lead time, number of activities gets less and less... ...and all activities cost money. If they don't cost money directly, they cost time and time is money. So you're going to also make yourself happier because you reduce your costs. You make a happier client and you reduce your cost. Basically benefits for both parties involved. I hope it's not too messy this picture. You know my students always complain and say: Why do you make such a huge mess? And then I ask them: Do you understand it? And they say yes. And I say: Then why do you complain then if you understand it? I hope it also was clear to you in this respect. But I want you to think about something. In your own surrounding, if you're working, can you already identify some non value adding activities? I'm pretty sure that if you think you can think of many many. Because so often we see them every day, but we take them for granted. We never see them as what they are, which is a form of waste, which we should eliminated. A justification for that is (typically): "Those are the activities that has always been performed." This is what you often hear. So when when you ask people: Why is this waste the? "We have always done it." "We have always done it." "And so we must always do it." But that's completely the wrong way of reasoning right. Finally, something about the structure of the course. It's a complete course. So all of the elements that make up this house of Toyota, this Toyota production system are lean.... are there. Everything is there. Everything is explained. It's a complete course. But it also means that the things that should not be there, are not there. This is a certified lean management course. We don't contaminate it with all kinds of elements from other methodologies. So in that sense it's quite a pure course. Complete and pure. Second of all, it's a straightforward course. You know between the two of us.... I think we have close to 20 years of experience teaching. Slightly less than 20 years. But what we have learned over and over again is the following: If something can be explained in 10 minutes with a clear example, that's much better than explaining it in 10 hours with poor examples. So we try to keep it straightforward. We try to keep the examples clear and we try to keep it concise. We do not want to waste your time. Finally we have done our best to use examples from practice. So when you see these concepts... you can apply them in practice. That was also something very important for us. We're always willing to improve the course further. So if we can in any way improve it more, please do not hesitate and send us just a message via the site and we will seriously consider all your all your improvements suggestions. And we would be very grateful for that so far. Thank you so much for your valuable time and your attention. We hope to welcome you to the next session soon. Thank you very much. Thank you.