Lean thinking is based on over two centuries of manufacturing improvement. It aims to improve efficiency by targeting and reducing waste and non-value added activities through identifying value-adding activities from the customer's perspective, categorizing all activities, breaking processes down, and streamlining non-value added activities. The main types of waste are overproduction, waiting time, transport, over-processing, inventory, motion, defects, and unused employee skills. Lean principles focus on specifying value, identifying all process steps, removing barriers to smooth and continuous flow, and continuously improving to achieve perfection.

1. LEAN THINKING

2. A Little Bit of History

3. Une courte historique
1800 1900 2000
Royal Navy,
Maudslay/Brunel
Production lines
Standardisation
F.W.Taylor
Scientific
Management
Henry Ford
Assembly Lines
Sakichi Toyoda
Creation of
Toyota
Training Within
Industry
Job Instruction
Job Improvement
Job Relations DemingJuran
Reengineering
Identification waste
Quality tools
(pareto, SPC)
Shiego
Shingo
Taiichi Ohno Ishikawa
Weaknesses of batch production
Pull Flow, U‐shaped cells, Poka yoke,
Quality Circles
Schonberger
Japanese
Manufacturing
Techniques
(1982)
Goldratt
The Goal
(1984)
Womack/Jones
The Machine That
Changed the World
(1990), Lean
Thinking (1996)
Lean is not new but is based on more than two centuries of manufacturing
improvement!

4. Main Concepts

5. Objectives of VA/Waste analysis
 Improve the organization’s efficiency by targeting
and reducing waste and non‐value added
activities
 Enable positioning closer to the customer
request thereby ensuring its satisfaction
Approach
5 Streamline NVA
4 Reduce / eliminate Waste
3
Categorise the activities (VA / NVA /
Waste) from the customer’s viewpoint
2 Break it down into distinct activities
1 Identify /map the process
Value Adding Activities
The customer is willing to
pay for this activity
because it provides value
Activities that transform
resources into finished
products, services or
information.
Value Adding Activities
The customer is willing to
pay for this activity
because it provides value
Activities that transform
resources into finished
products, services or
information.
Value added activities
“Necessary’’ Non
Value Adding
Activities that must be
maintained to support
other value added
activities
Or activities necessary
for other unavoidable
reasons.
“Necessary’’ Non
Value Adding
Activities that must be
maintained to support
other value added
activities
Or activities necessary
for other unavoidable
reasons.
Necessary but non‐
value added activities
Non‐Value Adding
(Waste)
Activities that consume
time, resources or
space, but bring no
value to the customer.
Non‐Value Adding
(Waste)
Activities that consume
time, resources or
space, but bring no
value to the customer.
Waste
AFTERBEFORE
Cycle time
Definition :
Value Added (VA) is time spent or activities that contribute
directly to the satisfaction of the customer requirement.
Reduced lead‐time and
cost, time for additional VA

6. Value added
Unavoidable non VA
Waste
Unexploited
skills
Defects
and Errors
(Unnecessary)
Motion
(Unnecessary)
Transport
Waiting timeOver‐processingInventoryOverproduction
1 2 3 4 5 6 7 8
Tim Wood

7. Overproduction waste is caused by:
 Production by pushed flow
 Large batch size
 The absolute necessity to occupy time
 Local objectives
 Lack of customer focus
 Lack of visibility of available stock
 Poor management of priorities
Some examples by sector:
Production
 Batch size higher than demand
Production undertaken to increase the
"profitability" of the department
Logistics
 Actions undertaken before receiving the
orders
 Moving a volume of stock greater than
the future consumption
Principles :
«Overproduction » consists of producing a
good or service before it is necessary.
Finance
 Redundancy in the production and return
of various indicators and reporting
 Duplicate data entry
 Level of detail greater than necessary in
the accounting

8. Transport results in waste because:
 It increases the cycle time
 It consumes resources
 It takes up circulation space unnecessarily
 It increases the work‐in‐process
 It Increases the risks of breakage
Transport waste is caused by:
 A poorly designed production process or workshop
 A break in the production flow (e.g. outsourcing)
 Overproduction, which requires storage in a reserved area
Some examples by sector :
Production
 Poorly designed workshop
 Storage areas far away from workstations
 Lack of visibility of the production flow
Logistics
 Poorly defined preparation
 Poor layout of storage areas
 Warehouses too far from the activity
centre (distanced from the customers)
“Unnecessary transport"
concerns all movements of
goods that do not bring value
added to the customer.
Unnecessary transport is
problematic, because it
consumes resources and
increases the risk of breakage
or damage.
Principles :
Finance
 Paperwork that needs monitoring,
signatures and inter‐departmental
approval
 A complex approval system for
purchasing invoices

9. Inventory results in waste because:
 The value of the stock is immobilized
 The cost of the area occupied
 The increased risk of obsolete and defective units
 It reduces the number of references that can be stored
 It hides more fundamental problems
Inventory waste is caused by:
 A lack of reliability of sales forecasts
 A poorly sequenced production schedule
 Overproduction
 Production managed by pushed flow
 A lack of supplier reliability
Some examples by sector :
Production
Stock of finished goods without customer
orders
 Stock of semi‐finished products or
components greater than necessary
Logistics
 Stock of a product greater than the order
commitments
 Inventory after bad sales forecasts or
poor management of logistics variants
Administration
 Orders waiting to be processed
 Bills awaiting payment
 Stacks of files to be processed
“Inventory" comes from the
wastes of overproduction
and waiting time.
Inventory has the peculiarity
of compensating for more
fundamental problems.
Beyond immobilized funds,
inventory prevents the
resolution of problems by
obscuring them.
Principles :

10. Motion wastes caused by:
 A poorly designed workstation
 A lack of training for operators who do not know where to
find what they need
 Misplaced tools
 A poorly replenished stock
Some examples by sector :
Production
 Finding tools to make a change in series
 Urgent replenishment of the workstations
with materials because they are almost
out of stock
 Distance of machines for one operator
Logistics
 Shared equipment (carts, printers...) away
from the work area
 Stock shortage of consumables in the
work area (labellers, pallets...)
Administration
 Poor office layout
 Physical validation when an online
validation would be sufficient
 Centralised photocopiers
Principles :
Unlike the transport waste, which refers to goods,
unnecessary motion relates to the movement of
people.
Any movement that does not bring added value to the
process is considered a waste.

11. Over‐processing results in waste because:
 It consumes resources unnecessarily
It generates additional variability of the process
 It can reduce the life expectancy of a product (an engine
that runs too fast, a lamp which is too bright...)
Oveer‐processing waste is caused by:
 Bad habits "I've always done it like this!”
 A misunderstanding of the process by the operator
 A poor definition of customer requirements
 Lack of innovation, improvement, or questioning of the
existing process
 A standard that has become obsoleteSome examples by sector :
Production
 Exceeding the technical specifications
required by the customer
Proliferation of quality inspections
Logistics
 Reconditioning, handling…
 Over‐packaging
 Quality control to identify errors in
preparation of orders
Over‐processing is a process
that is more complex than it
should be, where the
customer may have to pay for
a level of quality or
complexity that does not
match their requirements.
Principles :
IT
 Development of features not required by
the user
 An oversized workstation with respect to
user needs
 Overestimating the need for security

12. Defects results in waste because:
 The cost of materials
 The need for quality inspections
 The costs of reprocessing
 The return of defective goods
 The loss of production capacity
Wastes caused by:
 A poorly defined standard
 The absence of Poka Yoke (mistake‐proofing)
 Poor operator training
 A lack of reliability (or an error of setting) of a machine
Some examples by sector :
Production
 Operator errors
 Defective machines
 Scrap at setup
 Ineffective plans / instructions
Logistics
 Product inversion
 Missing products
 Error in picking
 Supplier errors
Service
 Data input error
 Missing information for file processing
 Misprint in a commercial document
 Incorrect allocations
Principles :
Anything that is not well done the first time is
considered a waste.
Errors and defects are wastes
which generate additional costs for
inspections, reprocessing,
customer dissatisfaction,
cost of returned goods ...

13. Waiting results in waste because:
 Disruptions to production
 Congestion when trying to catch up
 The lengthening of cycle‐time
 The loss of capacity
Waiting waste is caused by:
 Supply disruption
 A lack of versatility and flexibility of the operators
 Machine breakdowns
 Poor production planning
 Mismanagement of the resource capacity constraints
Principles :
Waiting time applies to both product and people.
Any form of unsynchronised flow can cause waiting
time.
Some examples by sector :
Production
 Stopping a machine
 Waiting on replenishment
 Waiting for production planning
 Pending availability of a shared resource
Logistics
 Pending replenishment by a forklift
operator
 Waiting to load the carrier
 Waiting for a truck
 Downtime of compuer system
Service
 Participation in a never‐ending meeting
 Waiting for information to complete a
transaction or close accounts
 Waiting on approval from a superior
 Document approval circuit too long

14. Unexploited skills
Inventory
Overproduction
Motion
Waiting time
Transport
Obsolete
Immobilization of
funds
Profitability
Payment delays
Delivery delays
Over‐processing
Over‐quality
Defects
Opportunity
Rarity
Customer
satisfaction
Waste Undesirable effect Impact on income
‐
+

15. Definition :
The 5 Lean Principles are aimed at clearly
specifying value in order to line up all the
activities for a specific process along a value
stream and to make the value flow smoothly
at the pull of the customer in pursuit of
perfection.
5
Continually work to remove waste and achieve perfection
Perfection is unattainable but is the motor for continuous improvement
4
3
2
1
Understand what the customer perceives as value.
• Who is your customer?
• What value do you provide to your customer?
Identify all the steps within the value stream that deliver a
product or service
Flow through the process can be visualised through the use of Value Stream
Mapping. The aim is to continuously improve the ratio of VA / NVA
Remove all the barriers and interruptions that restrict the
flow of a product or service
The objective is for products, services, and information to flow without delays,
detours, undertaking unnecessary activities and incurring faults..
Only supply a product or service when it is demanded or
pulled by a customer
A Pull System links value stream processes,and therefore the production or
provision of a product or service, to actual customer demand rather than a
predicted customer requirement
Value

16. What is a Value Stream?
A value stream is all the activities, both value‐added and non‐
value‐added required to bring a product or service from
concept to launch and from order to delivery.
It includes all the steps involved in providing a product or
service from initial concept until the customer pays for the
product or service.
The value stream is made up of all functions and stakeholders
who need to work in harmony to provide the
product/service.

17. A Value Stream can be composed of a number of processes
Process Efficiency = Value Adding Time / Total Time
Application
Typical Cycle
Efficiency
World Class
Cycle Efficiency
Machining 1% 20%
Fabrication 10% 25%
Assembly 15% 35%
Continuous Manufacturing 30% 80%
Business Processes –
Transactional
10% 50%
Business Processes –
Creative/Cognitive
5% 25%
Process Efficiency can be increased by identifyng and eliminating
the non value adding time, or the « Wastes »

18. Looking at processes…...
What you think it is... What it actually is... What it could be...
What are some of the tools that help us do this?

19. Lean Tools and Methods

20. 7
Complete with further data
collection as required
6
Highlight the waste and
potential areas of
improvement
5
Compute value added time
and waiting time between
operations
1 Mapping existing streams :
4
Map the process using the
VSM techniques and standards
3
Gather data on timing, batch
size, efficiency for each step of
the process
2
At the Gemba, analyze flows
of product and information
1 Gather together a
multidisciplinary team
6
Select solutions and develop
action plan
5
Brainstorm and prioritise
solutions
2 Plan future or “ideal” flows
4
Conduct necessary
investigations and data
collection
3
Identify likely causes of waste
and means of verification
2
Develop a ‘future state’ of
what the target looks like (5
Lean Principles)
1
Gather the team together
again
Usage :
Building a VSM allows for an analysis of the value stream and highlights wastes. A VSM can be used in two steps:
This method may be
reused at will!
VSM is a continuous improvement
tool which increases
mastery of Lean
OrderOrder
CompanyCompanyCustomerCustomer
3
Available
Stock
Fax or
EDI
Order
release
Preparation Dispatch
M/ses
Capture
= 1 = 7 = ND
I
150 orders / day 100 orders
/day
90 orders
/day
90 orders
/day
½ day 1-30 day 1 day 1-2 day
3 min ~ 5 min ~10 min
Order
Shipping
Customer Service
System Info
I I I
~ 7 min

21. 5
4 Compute the Takt Time
Deal with bottlenecks and balance
the loads
Definition :
In German, Takt means “rate.” Takt time represents the
rate of production needed in order to meet customer
demand on‐time. It is used as a basis to smooth and
monitor production, and to improve the balance of the
production lines.
Benefits:
Respecting Takt Time makes it possible to produce with
minimal waste, stocks and operating costs. It gives the
manufacturing tempo to follow. Takt Time can be used to
directly check the “health” of product flow and to enforce
reactivity during problem‐solving and process improvement
Methodology:
3 Calculate productive time on the one
hand, customer demand on the other.
2 Observe, then identify the bottleneck
1 Target the production line to improve
This calculation is only valid if the demand remains relatively constant
CompanyCompany
Delay between
two good units
Steps in the process
Time
1 2 3 4 5 6 7 8 9
Takt Time Constraints Bottleneck
Takt Time =
Total available manufacturing time
Customer Demand (volume)
“1 bottleneck hour lost = 1 hour of
production over the whole process
lost”
1 – Takt Time
2 – Bottleneck = Longest operation in the process
3 – Constraint = Any operation longer than the Takt Time that hinders the fulfilment of
the customer’s demand (in volume)

22. Benefits:
 Limits production to customer demand
 Limits wastes as well as work‐in‐process and stock levels
 Reduces lead‐time for products
 Optimize use of resources
Definition:
Transformation of a push flow into a pull flow is a very important step
of a Lean project.
The transformations radically change how planning, production and
management of incidents occurring during a process are handled.
This step aims at going from a production by batches to an order‐
prompted production.
7
 Level the load according to customer
demand
6
 Implement the pull flow through Kanban,
supply the workstations
Example Approach
5
 Reorganize the floor into cells according to
the “target” map
4
 Study the balance of workstations in regards
to Takt Time
3
Analyze the setup, the modes of planning,
product movement, stocks…
2
 Map the existing value flows and compute
Takt Time
1  Stabilize performance and define standards

23. Definition:
Kanban is a tool for managing supply between two workstations. It limits the upstream production to match the
downstream needs through a pulled flow system. Kanban is useful for a regular production. Its main goal is to eliminate
waste through limiting in‐process stocks and resolving problem causing breaks in flow and stocks.
Benefits :
 Reduces and stabilizes in‐process material stocks
 Improves delivery capacity = Reactivity & Flexibility
 Improves transparency
 Economical = does not need heavy investment...
Principles:
 Pulled flow system the customer triggers the demand
 Only manufacture and deliver if there is a Kanban card.
 Re‐evaluate the dimensions of the Kanban according to the
evolution of demand
Methodology:
5 Implement and adjust
4
Calculate the number of
Kanban cards
3
Determine the supermarket
stocks according to
consumption
2
Determine the number of
units per container = 1 Kanban
card
1
Select the flow to manage
with Kanban

24. Methodology:
6 Correct differences and implement continuous
improvement
5 Train the teams in work cells and start
production
4 Reduce batch sizes
3 Select implantation types and storage locations
2 Balance workstations by reorganizing tasks
1 Stabilize quality performance, lead time and
operations time
Definition:
The optimization of work cells requires the reorganization of workstations
in such a way as to obtain compact production lines in the form of cells.
Benefits:
 Reduces lead time
 Identifies quality issues earlier
 Ensures better visibility of flow
Favourable conditions:
 Producing relatively similar families of products
 Having a stable production time base and reliable capacity data
 Owning equipment and tools in good working conditions
 Setting up qualified operators
 Planning a balanced workload
Line Shapes :
Visibility
Permutation
Assembling 2
process ends
Structural
constraints

25. Definition :
SMED : Faster changeover system. It aims at systematically reducing
preparation time and adjustment time during a changeover
Benefits :
 Improving productivity through
limitations in stops for changeovers,
without damaging the quality of the setup
 Optimization of use of resources (better
synchronization of jobs, elimination of
superfluous operations, improved
installation of machinery, improved
flexibility, reorganization of stocks and
tools)
Principle :
Changeover Time is the unproductive period of time during which operators
reconfigure equipment. SMED analyses this series of tasks and identifies
possible sources of improvement in order to shorten this period.
Methodology :
Shorten external tasks  Standardise storing and cleaning procedures (5S) & track setup defects on a daily basis.
Shorten internal tasks
 Improve organization of tasks (example: working in parallel)
 Make carrying‐out of these tasks easier (example: fast screw guns, rolling tool carts…)
Convert internal into
external
The goal is to reduce internal tasks to the bare necessities.
Separate internal and
external tasks
 Internal Tasks = need to stop the equipment (e.g.: tool assembly)
 External Tasks = while the equipment is running (e.g. : preparation of tools to assemble)
Analyse operations
 Observe the changeover and make a list of tasks and a map of movements.

26. Definition :
5S is a systematic approach aimed at improving
cleanliness and order in the work environment. It
can be applied in offices as well as in production
areas.
Benefits :
 Elimination of waste of time looking for tools and
equipment
 Improved security: ground markings, a place for
each and everything
 Improved efficiency: identification and
management of problems made easier
 Reduction, even elimination of failures: by
detecting sources of dirtiness and contamination
 Freeing up of needlessly used space
 Provision of better working conditions by
maintaining a pleasant work environment
Methodology :
SORT

27. Definition :
 OEE is an indicator used to monitor the rate of utilisation of
equipment
 It is a measure of the efficiency of a production line.
Benefits :
Identification and breakdown of waste in production into different
categories upon which improvement actions can be put in place.
Principles :
 Defined as : OEE = Useful Time / Required Time (or Value‐Added / Total Time)
 Useful Time = time during which the machine produces good units at its normal rate (number of good units * cycle time).
 One can improve the OEE by different methods (SMED, TPM, 5S, just‐in‐time, Self‐Checking and Self‐Maintenance, Ergonomics...).
Methodology :
Sustainability  Ensure continuing improved performance
 Formalize the new standards
Optimisation
 Implement the action plan and eliminate problems
 Deploy necessary tools
Data Analysis
 Frequency analysis
 Time analysis
Capturing
production data
 Simplify the measurement
 Limit constraints for data capture
Preparation
of the
measurement
 Inform and educate staff
 Establish a list of causes of machine downtime
Usage :
Identify possible areas
of improvement
Workshop
shutdown
Cleaning,
idle time,
training,
meetings,
breaks...
Failures,
adjustments,
missing staff,
changeovers
…
Rate
differences
Non quality
RT
UT
OEE 
OT
UT
OPR 
TT
UT
ERR 

28. Definition:
TPM: Total Productive Maintenance
Methodology for continuous improvement of equipment availability (Productive time) by treating
causes of stoppage in a pre‐emptive way close link with OEE monitoring.
Benefits :
Eliminates wastes due to:
 breakdowns
 teething problems
 equipment lag time
Reduces changeover time using the SMED
method.
Reduces maintenance costs and improves
the lifetime of equipment.
Principles :
TPM is built on 4 main pillars:
 elimination of major problems
 self maintenance
 planned maintenance
 organization of equipment operation
Methodology:
5  Train teams for self‐maintenance & Launch self‐maintenance campaigns
4  Define self‐maintenance standards & Schedule planned maintenance
3  Clean up & Identify critical equipment systems
2  Eliminate causes of loss and define new standards
1 List & Analyze losses

29. LEAN IS NOT A TOOLBOX

30. • Lean organizations are learning organizations,
Lean is a culture, not only a set of techniques
• Lean culture needs to be implemented as a
“whole system” and sub systems of the work
flow also include:
▫ Motivation and incentive systems
▫ Training systems
▫ Organization and management levels
▫ Improvement processes
• Lean is a culture and all cultures are complex
Lean Culture

31. • Developing a lean culture requires strong top
management commitment and leadership
• It involves:
▫ creating a vision
▫ chartering pilot and kaizen teams
▫ monitoring the results and modifying the
whole process as it proceeds
Developing a Lean Culture

32. Sustaining a Lean Culture
Paramount to sustainability is to keep in minds that
Lean is a journey, not a destination.
The real benefits come form a sustained effort over
years, not weeks or months.

33. Definition:
Kaizen comes from two Japanese words:
Kai (which means “change”) and Zen (which means “good”)
“continuous improvement”.
Philosophy with the goal of elimination of waste through setting up
simple, low cost improvements, daily and at every level of the company.
Tools:
Kaizen uses the whole spectrum of classic analysis and problem solving
tools.
PDCA,
5S,
Five Whys,
Poka‐yoke,
SMED,
TPM,
Kanban,
…
Conditions for success:
 Everyone takes a part in continuous improvement
 Simple and accessible guides and procedures
 Motivational measures (reward system, staff satisfaction…)
 Active participation from top management in order to implement the
methodology
Kaizen is not a method on its own, but a group state of mind which
lives though everyone’s involvement
Benefits :
Approach based on common sense and the motivation of employees.
Analyze problems and solve them for good
Put in place a series of permanent techniques and methods allowing
the process to be made more reliable
Make better use of the existing resources without changing them.
= progressively improve without looking for breakthrough improvements

34. Want to know more?
• “The Goal”, Eli Goldratt (1984)
– Written as a novel ‐ can be read in an evening. Should be compulsory for everyone who works
in manufacturing.
• “Kaizen”, Masaaki Imai (1986),
– Insight into the Japanese culture from a Japanese.
• “The Machine that Changed the World”, Womack, Jones & Roos (1990)
– The book that blew the lid off the West v. Japan debate. It’s all about cars but is full of ideas.
• “Lean Thinking”, Womack and Jones, (1996)
– The sequel, more down‐to‐earth after six years of Lean Thinking
• “The Gold Mine”, Michael and Freddy Ballé (2005)
– A must‐read for production managers, written by a French father and son!
• “Toyota Way / Toyota Way Fieldbook” (2006)
– A high‐level ‘how‐to’ for Lean implementation
• “The Lean Toolbox”, John Bicheno (2009)
– Quick reference that covers all the main Lean tools

35. Peter Klym Management / Lean Business France
Operational Excellence Consultancy and Training
Peter Klym
• UK‐born, currently based near Toulouse in the south‐west of France
• Works both directly with customers or on a subcontractor basis
• Available for assignments in France and internationally
• 30 years of experience in both industries and service sectors
• Consultant since 2008
Websites : www.leanbusiness.fr
http://international.leanbusiness.fr
Email : peter.klym@leanbusiness.fr
Téléphone : +33 6 84 52 77 70