Lean and Quality Management Basics of Lean Management What is Lean Management? Why is this important? The 7+1 wastes Compiled by: Alex J. Ruiz-Torres, Ph.D. From information developed by many.

What is Lean Management? or lean thinking or lean philosophy or lean .. .. An approach to management focused on process improvement, waste reduction, better quality and creating value. Originated in Japan. Part of the Toyota Production System (TPS). It focuses on improvements that has/requires: less waste, less human effort, less space, less investment in tools, less engineering time, As to maximize value for the customer Taiichi Ohno (father of Lean)

Why is this important? Provides the structure and tools that enable organizations to improve performance. Allows employees at all levels to support the improvement efforts. It is a never ending/ always evolving process that allows organizations to stay competitive. Since the 70’s is the most used approach to change organizations in order to increase efficiencies, meet customer needs, and be profitable.

The 7 Wastes + 1: Unused employee creativity http://en.wikipedia.org/wiki/Muda_%28Japanese_term%29

The 7 Wastes Overproduction waste: Producing more than the demand. May never sell. Could become obsolete (shelf life). Uses components that may be needed for another product. Uses storage and other resources.

The 7 Wastes Unnecessary stock waste: extra inventory of raw materials. Required funds that could be used for something else. use warehousing/storage resources unnecessarily.

The 7 Wastes Inefficient transportation waste Transporting product between processes is a cost which adds no value to the product. Transportation can be difficult to reduce due to the costs of moving equipment and processes closer together. http://www.wikiwand.com/en/Distribution_center

The 7 Wastes Unnecessary motion waste Movement waste is related to all instances were operators have to bend, stretch, walk, and lift as part of performing their work. Includes double handling of materials and long distance between workstations. http://www.kaizen-news.com/seven-forms-of-waste-lean-six-sigma/

The 7 Wastes Waiting Times waste Items waiting for a process to finish or resources to become available. Resources waiting for materials to arrive, information, instructions, or authorization to work. Waiting means resources are not performing work and thus a reduction on production capacity. http://www.thedailymash.co.uk/news/society/lots-of-lazy-bastards-have-jobs-2012120652158/attachment/lazy-worker

The 7 Wastes Rejects & Defects waste Products not suitable for sale and/or need reprocessing to bring them up to standard. Associated costs Scrap and loss of material Re-inspecting Capacity loss Loss of customers and sales

The 7 Wastes Inappropriate Processing waste Performing more steps than necessary, thus consuming extra resources. Performing less steps than necessary which results in quality problems and rework. Using the wrong equipment/tool. For example the equipment is too small or not designed properly for the job, therefore need to do it many times- more effort by the resources.

The + 1 Waste Unused Employee Creativity waste Not capturing employees ideas for improvement thus reducing the potential for positive changes. Not involving employees in decision making which may result in poor decisions by management.