1.3 PRINCIPLES OF LEAN
Lean manufacturing is a philosophy of successfully tackling and eliminating waste in the
manufacturing system. In modern manufacturing design, the deployment of lean manufacturing
principles has been envisioned as life sustaining requirement in meeting global competition
(Brayer and Walsh, 2002; Matt, 2008). Lean Thinking concept encompass the following five
principles (Womack and Jones, 1996):
(i)
Specify Value: Create value for the customer.
(ii)
Value stream: To highlight non-value adding waste, identify the value stream.
(iii)
Flow: Create value flow without interruption, waiting or scrap.
(iv)
Pull: Produce only what is pulled by the customer.
(v)
Perfection: Realization of ideal situation by consistent and holistic identification and
elimination of non-value added activities or wastes associated with a business
function or service. These principles are embodied in Lean principles that focuses on
waste or ‘muda’ identification and subsequent elimination.
Waste in lean is ‘anything in the process that does not add value for the customer, but
incurs cost’ (Foster, 2007). Hines and Taylor (2000) have identified seven wastes, originally
extracted from Toyota Production System (TPS), as: Over production, Inventory, Motion,
Transportation, Inappropriate processing, Defects and Waiting. Taiichi Ohno has stated that lean
manufacturing is the preliminary step of identifying and eliminating the above seven waste
completely from the organization for its development (Parks, 2003). In fact, lean principles are
equally effectively applicable to all manufacturing and business functions – from product
development and engineering to distribution and logistics, sales and marketing, human resource,
and purchasing (Strategic Direction, 2005).
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