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An outline of:
Lean Thinking Banish Waste and Create Wealth in Your Corporation
By James P. Womack and Daniel T. Jones
New York, NY: Free Press, Simon Schuster, Inc., 1996, Second Edition, 2003
Preface to the 2003 Edition. Forecasts are always wrong. That is why lean thinkers strive to reduce order-to-delivery time. During the 2002 meltdown, this 1996 book went back on the Business Week bestseller list. We have added what we have learned since 1996 in this edition. Lean Thinking is more relevant today. Lean ideas are the single most powerful tool available for creating value and eliminating waste in any organization.
Part I: Lean Principles
Taiichi Ohno (1912 – 1990), a Toyota executive, identified seven types of waste found in any process:
? Transportation. Unnecessary transport of parts under production.
? Inventory. Stacks of parts waiting to be completed or finished products waiting to be shipped.
? Motion. Unnecessary movement of people working on products.
? Waiting. Unnecessary waiting by people to begin the next step.
? Over-Processing the product with extra steps.
? Over-Production of products not needed.
? Defects in the product.
We have added an eighth waste: goods and services that do not meet the customer’s needs. Other authors have added: underutilization of people
Lean Thinking is the antidote to waste. There are (5) Lean Principles:
? Specify Value. Value can be defined only by the ultimate customer. Value is distorted by pre-existing organizations, especially engineers and experts. They add complexity of no interest to the customer.
? Identify the Value Stream. The Value Stream is all the actions needed to bring a product to the customer. If the melter, forger, machiner, and assembler never talk, duplicate steps will exist.
? Flow. Make the value-creating steps flow. Eliminate departments that execute a single-task process on large batches.
? Pull. Let the customer pull the product from you. Sell, one. Make one.
? Pursue Perfe
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