8. Five Principles of Lean Production Specification of Value Value Stream Analysis Flow Management (Lean Manufacturing*) Pull Perfection
9. Specify Value 1. Specific Products the firm expects to produce for the 2. Specific Customers who want the products at the 3. Specific Price they are willing to pay with the 4. Specific Product Performance and Quality needed to maintain a competitive advantage.
10.
11. Flow Management 1. Focus on the Specific Products the firm will produce and never let it out of sight! 2. Ignore All Boundaries (career, organizational, etc.) to remove impediments to the flow. 3. Redesign Work Practices and Tooling to eliminate waste (scrap, rework, backflows) so that flow is continuous. 4 . Reduce Cycle Time 5 . Synchronize Production Rate to Sales Rate (JIT)
12. Pull 1. No good or service is produced or activity initiated until the customer requests it (DRB) . 2 . Eliminate Lead Times and non-constraint Inventories
27. Reading List Womack, James P., Jones, Daniel T., Roos, Daniel, The Machine That Changed The World, New York: Harper Perennial, 1991 Womack, James P., Jones, Daniel T., Lean Thinking , New York: Simon & Schuster, 1996 Feld, William M., Lean Manufacturing, Boca Raton: St. Lucie Press/APICS, 2001. Goldratt, Eliyahu M. and Cox, Jeff, The Goal: A Process of Ongoing Improvement , Great Barrington, MA: North River Press, 2 nd Rev, 1992 Hammer, Michael and Champy, James A., Reengineering the Corporation : A Manifesto for Business Revolution, New York: Harper Business, 2001 Treacy, Michael and Wiersema, Fred, The Discipline of Market Leaders : Choose Your Customers, Narrow Your Focus, Dominate Your Market, Cambridge, MA: PERSEUS PUBLISHING, 1997