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LEAN
The Simplified Beginner’s Guide To Lean
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contents
Introduction 4
Figure 1 4
| 1 | Six Components of Lean Philosophy 4
Figure 2 4
Figures 3 - 5 5
Figures 6 - 7 6
Figure 8 7
Figure 9 8
| 2 | Lean Production 9
Figures 10 - 12 9
Figures 13 - 16 10
Figures 17 - 18 11
Figures 19 - 20 12
Figures 21 - 23 13
Figures 24 - 25 14
Figures 26 - 28 15
Figures 29 - 30 16
| 3 | The Lean Toolkit 17
Figures 31 - 32 17
Figures 33 - 34 18
| 4 | Implementation Considerations 19
Figures 35 - 36 19
Appendix: Value Stream Mapping Sample 20
Figures 37 - 38 20
Figures 39 - 40 21
Figure 41 22
Key Questions & Answers 22
Chapter 1 Key Questions 22
Chapter 2 Key Questions 23
Chapter 3 & 4 Key Questions 24
Glossary 25

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 | introduction |
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|1|
Six Components of Lean Philosophy
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5
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fg. 7

NOTE: A sample A3 master sheet. Note that the terminology within each
of the steps can vary, though the intent remains the same.

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fg. 8

NOTE: The A3 problem-solving method framed as an extension of the PDCA cycle. Note how each
of the A3 steps can be classified as corresponding to a portion of the PDCA method.

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 |2|
Lean Production
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fg. 13 fg. 14

fg. 15

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fg. 17

fg. 18

NOTE: A physical structure map based on cost. Here, the 1st tier of distribution and the 3rd tier of production have the
largest impact on costs and therefore are the primary candidates for waste reduction activities. 1st tier production and
3rd tier distribution are lower cost centers. This is representative of production that has intensive finishing work (3rd tier
production) and uses outsourced distribution—the diminishing cost of distribution.

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fg. 19

fg. 20

NOTE: A model of a heijunka box. Each of the cards represents a product traveling through produc-
tion. The repeating patterns demonstrate at a glance that production is even and flowing. This time
interval is set to days of the week, but a box could be as micro as thirty-minute intervals if need be.

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fg. 21
Where :
T = Takt time
Ta = Work time per period (net
available work expressed as time)
D = Customer demand or simply demand
(expressed as production units)

fg. 22

fg. 23

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fg. 24

fg. 25
NOTE: Fixed product layouts are most
applicable to the production of goods
that cannot be feasibly moved through
a production line (such as aircraft or
large structures). This facility layout fo-
cuses instead on moving workstations
as needed around a static product
until production is complete.

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fg. 26

fg. 27

NOTE: Each product enters the production cycle based on which workstations are required to produce finished goods.
Not all workstations will be needed for each product.

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fg. 29

fg. 30

NOTE: Cyclic demand shown over time. The shaded area represents the fulfillment of overall demand, through excess
production and insufficient production throughout that period. The black line at the 800-unit level indicates the leveled
average volume of production.

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 |3|
The Lean Toolkit
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fg. 33

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 |4|
Implementation Considerations
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 | appendix |
Value Stream Mapping Sample
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fg. 39

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fg. 41

| key questions & answers |

Chapter 1 Key Questions

1. The Lean philosophy of manufacturing and 3. Which of the following is not one of the core
production seeks to differentiate value-added components of Lean philosophy?
activities from those that do not add value. Non-
value-added activities are also known as what? a) visibility b) accountability
c) a broad view d) flexibility
a) effort b) production
c) quality d) waste 4. An organization that employs the Lean methodology
understands that innovation comes exclusively from
2. The concept of kaizen permeates the entire Lean management and research and development endeavors.
model. Kaizen is a focus on what business activity?
a) true b) false
a) financial accountability
b) continuous improvement 5. The PDCA process is which one of the following types
c) customer relations of tools?
d) maximum productive effort
a) process improvement too b) staff development tool
c) manufacturing tool d) PDCA is not a tool
Answers
1d, 2b, 3b, 4b, 5a

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Chapter 2 Key Questions

1. The pull production system differs from traditional product flow using Just-in-Time methods
push production in what way?
5. Which of the following is an advantage of small lot
a) pull production requires much higher cycle speeds production?
b) pull production requires less labor
c) pull production paces production with demand a) smaller lot sizes increase the flexibility of production
d) there is no difference
b) smaller lot sizes reduce waste through the
2. Which of the following statements best describes value elimination of safety stock
stream mapping?
c) smaller lot sizes are very responsive to changes in
a) value stream mapping is a method of trickling value demand
across the organization
d) all of the above
b) value stream mapping is a tool used to analyze the
current state of processes and to identify waste 6. What is the purpose of executing a SMED (Single
Minute Exchange of Die) program?
c) value stream mapping is a tool used to calculate the
production time per unit based on total available time a) to increase the capacity of all transfer and stamping
machines
d) value stream mapping is a management tool used to
assist decision makers in efficient employee deployment b) to reduce the duration of downtime due to line
changeovers
3. Kanban is a culture of continuous improvement.
c) to reduce materials inventory throughout the supply
a) true b) false chain

4. When employing Just-in-Time inventory and supply d) to level production by focusing on the demand
chain protocols, which of the following statements is component
true?
7. Six Sigma is a Lean planning tool that is used to
a) goods and materials are scheduled in such a manner measure visibility.
that only the amounts that are needed are moved
throughout the supply chain, which reduces waste and a) true b) false
carried inventory
8. The construction of a high-capacity passenger aircraft
b) goods and materials are scheduled in such a manner would probably be best carried out under which of the
that only the amounts that are needed are moved following facility layouts?
throughout the supply chain, which increases waste
and carried inventory a) product layout b) cellular layout
c) fixed position layout d) process layout
c) Just-in-Time drivers and warehouse workers are
mandated to work twice as fast to keep up with
tightened scheduling techniques

d) visual scheduling techniques enable a more level

Answers
1c, 2b, 3b, 4a, 5d, 6b, 7b, 8c

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Chapter 3 Key Questions

1. Ishikawa diagrams, also known as fishbone diagrams, 3. Poka-yoke measures are designed to reduce which of
are used for what purpose? the following within the production process?

a) fishbone diagrams are a productivity mapping tool a) costly employee overtime

b) fishbone diagrams are a cost evaluation tool b) defects caused by human error
c) fishbone diagrams are a scheduling tool c) machine deterioration due to poor maintenance
d) fishbone diagrams are a cause-and-effect tool d) waste events linked to transportation

2. A spaghetti plot can be used to map which of the 4. The decision to outsource is complex and focuses on
following? the relationship between impact and criticality.

a) the path that materials take across the factory floor a) true b) false

b) the path that employees take during production 5. The Theory of Constraints is a set of process
activities improvement tools founded on which of the following?

c) the path that employees take within an office setting a) the assumption that demand changes in a predictable
manner
d) all of the above
b) the assumption that production can be scaled to fit
fluctuating demand

c) the premise that there is always at least one

constraint that is limiting a system

d) the premise that a system starts out with no

constraints, but that constraints are the product of
Answers human error
1d, 2d, 3b, 4a, 5c

Chapter 4 Key Questions

1. Although an organization-wide respect for people is a 4. When implementing Lean across an entire
positive goal, it is not an asset of kaizen culture. organization, management can expect to see
immediate return on their investment.
a) true b) false
a) true b) false
2. The 5S method includes which of the following process
activities? 5. Which of the following is a concern when
implementing Lean across an organization?
a) sample b) substitute
c) standardize d) support production a) the cost of retraining staff

3. The 5S method is a process-oriented method of b) a disconnect between the Lean philosophy and its
workplace organization. practical tools

a) true b) false c) the impact and cost that disruption due to change
can bring

Answers d) all of the above

1b, 2c, 3a, 4b, 5d

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 | glossary |

5M- Core Competency- E-Kanban-

the 5 M’s of manufacturing. The 5 M’s a set of business operations at which the electronic integration of a kanban
represent the primary categories of a particular organization excels. A system into an organization’s ERP
causal effects that should be considered core competency is the foundational (enterprise resource planning) software.
when brainstorming potential causes component of competitive edge. E-kanban systems generally cost more
for inclusion in a fishbone diagram. The to implement, but have unprecedented
5 M’s are as follows: machine, method, D.O.W.N.T.I.M.E.- levels of visibility and do not suffer
material, manpower, and measurement. an acronym used to help remember the from the disruptions of lost, illegible, or
eight sources of physical waste (muda): damaged kanban cards.
5S Method- defective production, overprocessing,
a process-oriented program of waiting, non-used employee talent, External Setup Operations-
workplace organization. The 5S inventory, motion, and excessive line changeover setup operations that
method standardizes best practices for production. can be performed while the production
the efficient execution of day-to-day machine is still running. This is much
activities. The 5 S’s are as follows: sort, Decision Point Analysis- more desirable than changeovers that
segregate, shine, standardize, and self- a tool primarily used by organizations require machine shutdown (internal
discipline. utilizing a “T” configuration production setup operations) because the production
scheme. This mapping tool identifies line can continue to move while
5W1H- the point at which pull demand (actual adjustments are taking place.
a structured investigative method used to customer demand) gives way to demand
determine the root cause of an issue. The that has been forecasted (artificial Fixed Position Facility Layout-
process uses a successive series of “why” demand). a facility layout method best employed
questions to bring hidden causal effects when the product in question is so large
to the surface. Outsource Decision Matrix- or heavy that workstations move around
a tool used to identify processes, the product rather than the product
A3 Problem Solving Method- activities, and tasks that are candidates moving around the workstation.
a practical application of the PDCA for outsourcing through the comparison
process improvement and problem of criticality and impact. Forrester Effect Mapping-
solving method. Using a single piece of see Demand Amplification Mapping.
ISO A3-sized paper (11”x17”), the focus Demand Amplification Mapping-
of problems is narrowed, and a structured also known as Forrester Effect Mapping, Heijunka Box-
investigative approach can be applied. demand amplification mapping is a visual a visual scheduling tool that uses a grid-
tool used to identify the distortion that like construction to organize various
Buffer Inventory- occurs between different supply chain kanban control cards by their various
see Safety Stock. entities within the value stream. stages within the production process.
An essential tool to promote even
Bullwhip Effect- Economies of Repetition- production flow, heijunka boxes are a
the concept that miscommunication the concept that the repetition of critical scheduling component of kanban
amplifies disruption and variation specific activities and processes increases implementation.
throughout the supply chain and efficiency over time.
throughout an organization. When one Internal Setup Operations-
department gets a garbled message, Economies of Scale- line changeover operations that require
they are likely to distort it to the next the microeconomic concept that as the that the production machine be shut
department and so on until it reaches size and output of a manufacturing down, thus causing stoppage on the
the final recipient, where the message is operation increases, costs can be spread production line. The Single Minute
completely distorted. out over more units, thereby reducing the Exchange of Die method seeks to reduce
cost to produce each unit. Economies this disruption by converting internal
Cellular Facility Layout- of scale is a large cost reduction driver setup operations into external ones.
a facility layout that aims for maximum of push production and large batch
flexibility and efficiency by combining manufacturing. Inventory-
aspects of the product-oriented facility the total on-hand store of goods,
layout and the process-oriented facility materials, and supplies. For production
layout. Clusters of workstations are operations, production inventory is
organized into “product families” and broken into three stages: raw materials,
then designed to fit the process layout. work in progress, and finished goods.

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Ishikawa Diagrams- Machine (5M)- Net Available Time to Work-
cause-and-effect diagrams that are used a causal category for the construction of a component of takt time calculation.
to investigate and determine the root fishbone diagrams. The machine category The total amount of time that is available
causes of a specific effect impacting a encompasses any equipment related for production activities, less breaks and
process at hand. Also known as fishbone to the process at hand. This includes other nonproduction time set aside for
diagrams. computer systems and production tools business activities.
primarily, but also extends to all tools
IVAT Analysis- that may be a part of the production Non-Value-Added-
see Production Variety Funnel. process. activities that do not produce value
that can be passed along to the
Just-in-Time- Manpower (5M)- customer. Non-value-added events
a method of cost reduction through a causal category for the construction are considered waste, and the Lean
the elimination of carrying inventory. of fishbone diagrams. The manpower philosophy relentlessly works to not only
Just-in-Time protocols ensure that only category encompasses any people who differentiate value-added from non-
the amount of materials needed for might have a causal impact on the value-added activities, but to reduce the
production are transported, and that process at hand. impact that non-value-added activities
they arrive exactly when needed. On the (waste events) have on business processes.
finished goods side of production, JIT Material (5M)-
methods produce small batches that are a causal category for the construction of Outsourcing-
a close match for customer demand, and fishbone diagrams. The material category the process of assigning business
are scheduled and produced in such a encompasses any and all materials that activities to a third party vendor or
way that the manufacturer never has to are involved in the production cycle and business with the intent of leveraging the
carry inventory. that may have a causal impact on the economies of core competency or cost
process at hand. reduction.
Kaizen-
the implementation of a culture of Measurement (5M)- PDCA-
constant improvement, and a central a causal category for the construction a problem-solving and process-
theme of the Lean philosophy and of fishbone diagrams. The measurement improvement process that focuses on
business model. Kaizen is built on the category encompasses any and all creating actionable feedback. Plan, Do,
premise that continual, incremental measurements and data collection that Check, Adjust (or Act), also known as
change causes the least amount of may occur in regard to the process the Deming Cycle, has a wide variety
disruption, and that change can build at hand. This includes the accuracy of applications not only across the Lean
upon other, previous changes to create of observations, thoroughness of business model but across a variety of
innovation and competitive edge. Kaizen investigations, and the calibration of industries.
values the input of employees at all levels data-gathering equipment.
of the organization, recognizing that Physical Structure Mapping-
the spark of innovation can come from Method (5M)- an overview of an entire supply chain
anywhere. a causal category for the construction of that is generated based on its physical
fishbone diagrams. The method category structure. The physical structure map
Kanban- encompasses the total sum of protocols, can be constructed either by visualizing
a flow-oriented method of material and process design, and methodology cost centers or through volume-based
goods coordination and replenishment. employed for the execution of the process mapping.
Based on the shelf-stocking methods at hand.
of supermarkets, kanban operations Poka-Yoke-
simultaneously move products through Muda- intentional constraints that are
the value stream while replenishing the one of the three overall sources of waste, introduced into operations to reduce
materials that were consumed through muda represents physical waste events. defective production due to human
production. All physical waste events can be traced error. These “foolproofing” measures
back to the D.O.W.N.T.I.M.E. eight turn normal operations activities into
Lag Measures- sources of waste. processes, improving teachability and
metrics and insights that can be gathered leveraging the economies of repetition.
after the fact. Lag measures represent the Mura-
feedback portion of a closed-loop system. one of the three overall sources of waste, Process Activity Mapping-
mura represents waste in the form of a narrower look at the components of a
Lean Six Sigma- unevenness of production, or unequal value stream. This tool dissects and maps
a hybrid business management system production loading. individual processes as opposed to the
that includes components from both entire value stream.
Lean Manufacturing and Six Sigma Muri-
Quality. Lean Six Sigma offers a total one of the three overall sources of waste,
package of production optimization, muri represents waste in the form of
quality control, waste reduction, and overburden or a failure to understand
competitive edge. production capacity.

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Process Facility Layout- Quality Filter Mapping- Single Minute Exchange of Die
a facility layout that favors products a visual tool that identifies areas where (SMED)-
with low volumes and high levels of quality issues exist within a value stream. a flexibility and cost-cutting program
differentiation. Under this facility layout With the deployment of this method, that strives to reduce the line changeover
protocol, workstations and resources are three sources of insufficient quality can time to a single digit number of minutes.
grouped based on the various paths that be identified: product defects, service This radically increases the flexibility and
produce the product variants. defects, and internal scrap. responsiveness of production and reduces
levels of waste. Mastering SMED within
Product Facility Layout- Raw Materials- an organization is a critical component
a facility layout that is ideal for mass the basic materials from which finished of a highly developed and flexible pull
production—high volumes of products goods are made. This unfinished material production system.
with little or no differentiation. This is generally assumed to be homogeneous
facility layout is most closely associated and comprises the raw materials portion Six Sigma Quality-
with traditional manufacturing, the push of production inventory (raw materials, a process-improvement and quality-
production system, and the economies of work in progress, finished goods). focused business management method
scale. that uses statistical tools to improve
Safety Stock- productivity and quality throughout.
Production Leveling- a buffer to insulate inventory levels from Many of the tools available within
the process of reducing the creation fluctuations in demand. Safety stock is the Six Sigma system can be used in
of waste events due to unevenness of a characteristic of the push production tandem with the Lean philosophy and
production flow. Production leveling can system, where artificial demand is toolkit, producing the hybrid business
be performed on the production side of “pushed” through the production process. improvement method Lean Six Sigma.
the equation as well as the demand side Conversely, the pull production system’s
to introduce evenness into production. flexibility and focus on actual demand Small Lot Production-
eliminates the need for, and cost of a feature of the pull production system
Production Variety Funnel- carrying, safety stock. that focuses on waste reduction and
also known as an IVAT analysis, the flexibility through the production of
production variety funnel analysis Segregate (5S)- batches that meet demand instead of
identifies which set of manufacturing a component of the 5S method, large batches that are based on artificial
models the production of a particular segregation is the next logical step after demand and are “pushed” through
product conforms to. Once the mode of sorting. Once materials and tools have production.
production has been identified, specific been examined and determined to be
and known traits and protocols can be relevant to the process at hand, they are Sort (5S)-
applied to the production of goods. organized (or segregated) to ensure that a part of the 5S framework, the concept
they are available in an efficient manner. of a sorted workspace determines the
Pull Production System- most expedient and useful places for
the opposite of the push production Self-Discipline (5S)- objects, tools, materials, and goods.
system, the pull production system a component of the 5S method, self-
focuses on customer demand. As demand discipline (also known as “sustain”) is Spaghetti Plot-
is generated, materials and goods are the structured and conscious effort to a visual map of data that can be expressed
“pulled” into the production cycle, and maintain the rigors of the 5S method as flows. Also known as workflow
in this way production matches demand and sustain the gains afforded by its charts, spaghetti plots are used to track
as demand changes. The pull production implementation. the movements of people and goods to
system, when working in tandem with determine more efficient layouts.
many of Lean’s flexible manufacturing Shine (5S)-
methods, creates a responsive production a component of the 5S method, shine Standardization (5S)-
process that matches demand and does reflects all of the positive aspects a part of the 5S framework,
not carry excess inventory or generate of maintaining a clean and orderly standardization seeks to transform
waste through the production of large workplace. From employee confidence activities into processes so that they can
batches. and respect to reduced safety hazards, a benefit from the economies of repetition.
clean workplace is an efficient one.
Push Production System- Supply Chain Responsiveness Matrix-
the traditional approach to a visual tool that analyzes an
manufacturing whereby artificial demand organization’s lead time and inventory
is “pushed” through the production levels. The resulting graph highlights
cycle. Large batches of goods are stored areas where slow-moving stock is
in anticipation of forecasted sales. concentrated.
Leveraging the economies of scale, costs
are spread out over a high number of
units, bringing the unit cost down and
picking up the slack of this high-waste
system.
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Takt Time- Value Stream Mapping-
a measure of unit production time a Lean toolkit that is used to assess the
relevant to the rate of customer demand. current state of all activities and processes
While the product of a takt time is associated with production operations.
expressed as a certain number of parts The application of value stream
per period, this is a measure of flow and mapping is designed to highlight areas
may not reflect the actual duration of where improvement is possible, and to
production for each unit. differentiate value-added activities from
waste, all while establishing a benchmark
Theory of Constraints (TOC)- against which all improvement activities
a systems improvement model that is can be measured.
built on the basic assumption that every
system is subject to at least one constraint Value-Added-
that creates a bottleneck. Once this activity that incurs costs that can be
constraint has been broken, the system passed on to the customer (creates value).
will become more efficient, but is now The Lean method’s focus on the Voice of
subject to another, new limiting factor. the Customer is a core driver of the need
This system is helpful for determining to differentiate value-added and non-
areas of inefficiency within operations, value-added activities. Through various
and assessing the best methods to effect improvement methods, operations are
change. trimmed of non-value-added activities
(waste) and streamlined to only the
Total Quality Management (TQM)- necessary value-added processes.
a unifying principle that underscores the
interdependent relationship between Waste-
the voice of the customer, the tools and non-value-added activity. Waste incurs
processes used to manufacture goods, cost but does not produce value, so
and the manner in which demand “pulls” these costs cannot be passed on to the
goods through production. customer. Waste is represented within
the Lean manufacturing system as falling
Toyota Production System- under the categories of physical waste,
the set of principles, methods, and tools unevenness of production, or overburden
established by the Japanese vehicle of production. In all aspects of Lean, the
manufacturer Toyota. The strides made elimination of waste is a focal point of
by the Toyota company revolutionized improvement activities.
and supercharged the Japanese economy,
and the effective methods employed by
Toyota have evolved into the versatile
Lean Manufacturing system that we
know today.

Tunnel Vision-
a singular focus on one goal at the
expense of visibility of others or the
whole picture.

Value Stream-
the total sum of effort, operations,
processes, and production that
contributes to the creation of value for a
customer. Value stream doesn’t begin and
end with the manufacturing organization.
It begins with the customer and works
backward through the supply chain, all
the way upstream to the point of origin.

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