You have a process for identifying and eliminating waste (in all its forms)
 
The Toyota Production System, which underpins ‘Lean Manufacturing’, is based on the removal of seven forms of waste. These wastes must be understood and should be embraced by the people in your company who are responsible for implementing these lean principles
Key Issues
·         The 7 Wastes have been defined as:
 
1      Waste in manufacturing too many products
o    Overproduction - making too many items or making them too early
2      Waste due to holding inventories and stock
o    Inventory ties up money and space
o    Items are often damaged whilst in store
o    Where appropriate, introduce Kanban systems to improve flow and reduce   inventory
3      Waste in transporting materials
o    Consider U-shaped cells, materials enter and leave at the same point
o    Place machines close together and move parts in minimum size batches
4      Waste in processing materials
o    Develop standard operating procedures, possibly based on Takt times
o    Remove bottleneck processes
o    Level your production schedule, focusing on material flow
5      Waste caused by waiting
o    Reduce changeover times - developing innovative techniques
o    Introduce preventive maintenance systems to reduce downtime
o    Ensure employees are multi-skilled to perform variety of tasks
6      Wasteful movements
o    Plan operations and ensure that equipment is optimally positioned
o    Consider the ergonomics of machines and supply of materials
7      Waste in making defective parts
o    Ensure that all key production processes are fully capable using statistical methods to confirm the necessary level of process capability
·         Eliminating waste and introducing lean manufacturing is a journey requiring persistence with people being trained in a wide range of skills
·         Once a process has been designed and standard working practices established, everyone should be encouraged to make continuous improvements
Factors for Success      
Factors to  Avoid
1      People are trained before implementation and supported after, allowing time to come to terms with Japanese methods
2      Managers devote time to designing optimal factory layouts and systems
3      Managers acknowledge the magnitude of the changes being introduced
1.     Expecting significant benefits without making fundamental changes to how the factory works
2.     Believing shop floor employees can eliminate waste without significant training and management involvement and support
Who does this apply to?
General managers and operational managers seeking to improve performance
Realisable Benefits
A more cost effective production facility and more motivated employees

Guides:

Logistics co-ordinationLogistics co-ordination

Logistics co-ordination

Uninterrupted material flowUninterrupted material flow

Uninterrupted material flow

Responding to changes in volumes and product mixResponding to changes in volumes and product mix

Responding to changes in volumes and product mix

Make versus buyMake versus buy

Make versus buy

The supplier approval processThe supplier approval process

The supplier approval process

Monitoring supplier performanceMonitoring supplier performance

Monitoring supplier performance

Sharing information with suppliersSharing information with suppliers

Sharing information with suppliers

Managing inventory throughout the supply chainManaging inventory throughout the supply chain

Managing inventory throughout the supply chain

Improving the delivery performance of suppliersImproving the delivery performance of suppliers

Improving the delivery performance of suppliers

Material flow and the factoryMaterial flow and the factory

Material flow and the factory

Production scheduling processProduction scheduling process

Production scheduling process

Calculating production capacityCalculating production capacity

Calculating production capacity

Visual managementVisual management

Visual management

Health and safetyHealth and safety

Health and safety

HousekeepingHousekeeping

Housekeeping

WasteWaste

Waste

Ensuring equipment is availableEnsuring equipment is available

Ensuring equipment is available

ChangeoversChangeovers

Changeovers

BottlenecksBottlenecks

Bottlenecks

Consistent manufacturingConsistent manufacturing

Consistent manufacturing