Lean Manufacturing is based on the priciple of reducing waste.
The importance on the elimination of these wastes is illustrated in the following figure. Through kaizen efforts, the elimination of waste helps companies move towards positive growth and progress towards Lean Manufactring. In order to keep from relapsing, standardization of work prevents companies to reverting back to their old way.
The seven main types of Muda (waste) are:
- Transport (moving products that is not actually required to perform the process)
- Overproduction (production ahead of demand)
- Unnecessary Stock ie. Inventory (all components, work in process and finished product not being processed)
- Defects / Rejects (the effort involved in inspecting for and fixing defects)
- Unneccessary Movement / Motion (people or equipment moving or walking more than is required to perform a process)
- Inappropriate (Over) Processing (resulting from poor tool or product design creating activity)
- Waiting (waiting for the next production step)
Understanding Lean Manufacturing means understanding the philosophy of its founders; stability and harmony of an organization and its objectives, concentration on added value and elimination of Mudas.
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