Lean Philosophy and Theories
This chapter will look at the Lean Manufacturing tools/ fundamentals, Lean philosophy, Just in time (JIT), Lean manufacturing framework cultural change. The tune of lean theory in general is that the same thing can be achieved using lesser people and reduced resources. This infers that people and resources can be redistributed to produce even more value (Ozor, et al., 2015).
The concept of Lean Production involves a number of integrated management processes such as Just in time, work in teams, enhancing quality systems, improving supplier management and cellular manufacturing. The adoption of lean production practices results in a production system based on a high quality and an end product built based on customer demand and requirement with the result that waste is eliminated (Shah & Ward, 2003). The application of Lean philosophy and its toolbox has been shown effective to improve the performance in production sector (Zhao, et al., 2016; Dos, et al., 2015).
DefineValue
Mapthe value stream
Workflow
Flowat the pull of customers
Pursuanceof perfection.
The lean philosophy (lean thinking, lean manufacturing) encompasses a set of lean practices which were first proposed by Womack, et al., (1992) used in production or manufacturing but now applicable in new fields such as services, trade and the public sector (Womack & Jones, 2005). Leite & Vieira (2015) observed that the practice of lean instruments to improve service quality is relatively novel, with few reported benefits and techniques. Bowen & Youngdahl (1998 cited in Leite & Vieira, 2015) reiterated that lean philosophies had converged production and services guidelines into mass customisation including flexibility and responsibility, focus on customer individualisation, value – chain integration and unbundling, autonomy and teamwork for employees, knowledge management and network organisations. According to Womack & Jones (2003), the philosophies of lean manufacturing are five which are value definition or specification, value stream mapping, flow optimisation, pull production system and perfection or continuous improvement. However, Crawford (2016) higlighting these five key principles connected them in a cycle as elicited by the Lean Enterprise Institute founded by Womark Jones P. and Jones daniel T
Value identification entails the definition or description of customer’s needs for a specific product (Crawford, 2016). These needs may be timely delivery, quality products, price point or product specification. Perks (2013) noted that value identification is viewed from the customers’ point and that value is any activity that the customer is willing to and would be happy to pay for.in the arguments of Malavasi & Schenetti (2017), individual company has to re-think value creation for their customer and offer procedures for value creation quicker than competitors. The implication is that firms must be proactive or anticipatory in their approach and initiate conducts or processes aimed at actions in expectation of future situations. Value for the customer or client undures through the process of value creation engaged in preparatory to the customer expectations.
Value Stream Mapping (VSM) follows the identification of what is valuable for the customers, and entails mapping internally within the organisation what value-adding activities will be needed to actualise the expectations of the customers while eliminating or reducing wastes (Malavasi & Schenetti, 2017). Jeung & Yoon (2016) noted that value stream mapping (VSM) as a tool helps to identify waste (s) and improve process (es) and is an ideal way to support and implement the lean philosophy. Value Stream Mapping is a standardised way of documenting (mapping) processes and information/ material flows as they are, and applying a methodical way to analyse these processes in order to detect various wastes and target specific areas for enhancement ( (Jeung & Yoon, 2016; Ciarapica, et al., 2016; Kuipera, et al., 2016).
Value Identification
Work flow must be continuous which is key in Lean philosophy, and entails that the production process must follow takt-time, that is a defined production time so as to satisfy the customer demand or expectation (Malavasi & Schenetti, 2017). This philosophy solicits that parts should move continuously without interruptions in the production process. In the same vein, data or information in the production process must flow without disruption to sustain and support the lean process. Lean Flow deals with the movement of items or people in a process from the starting point to the finish line. The major purpose in Lean flow is to transfer the item or product through the process as swift as possible, without risking quality nor reducing the satisfaction of customers. Breakdown in the flow of either materials, persons and products will amount to increase in waste accumulation, hence, system managers should strive to ensure consistent flow which creates more reliable delivery, and superior value to customers, crews, and stakeholders. Kettering University (2018) identified seven types of flows in a manufacturing process as flow of raw materials, work – in – progress, finished goods, operators, machines, information and engineering. A positive relationship is created between the efficiencies of the flow and overall business performance coupled with growing profitability (Kettering University, 2018). Some of the barriers to efficient work flow which must be removed to improve flow are distance, lengthy setup periods, batch – oriented machines, poor machine maintenance, defective deliveries, poor quality, extended approval processes and change apathy. Rahani & al-Ashraf (2012) observed that the when work flow is a direct process, it lessened the operator movement and help control the quality and productivity of worker (s) and product (s).
This pull approach implies that the production process has to respond to the pull by the customers’ demand (Customer Order Driven). Malavasi & Schenetti (2017) observed that production is pulled by the customer once all the wastes and the disruptions in the process are reduced and operations is efficient through a continuous flow and production only responds to the needs of customers when they (the customers) have ordered. Muller (2012) noted that customer pull used to control production quantity and total quality at the point of production and to guarantee the customer experience has been a central practice of restaurant operators from time. Pull scheduling ensures that materials are requisitioned and products produced and delivered only when they are needed and ordered for by customers. Some of the benefits of this approach include low or zero inventory, controlled and monitored costs, lower overall cost of goods sold, less opportunity for loss from waste and spoilage, continuous quality improvements, better customer response time and loyalty of patrons, increased productivity, lower payroll, less staff turnover, and higher profitability. The Pull approach is a make – to – order approach (Ozkan & Abid, 2009) and is at the heart of lean manufacture because product delivery is at agreed time based on customer demand and icreases efficiency.
The approach entails a systematic continuous improvement in product and service delivery through confronting and solving problems every day, in a nonstop process of value creation. It is a small, incremental improvement, not major changes aimed at 100% quality though not easy to reach. The Kaizen process which is a continuous improvement attitude portends that the performance of the processes is continuously enhanced and further wastes reduced (Malavasi & Schenetti, 2017; Rohani & Zahraee, 2015). The aim of lean manufacture generally is achieved with this vigorous pursuit of perfection (continuous improvement) with increased reduction in wastes, implementation time, reduced process lead time, reduced cost, increased annual savings and overall performance of the firm (Siregar, et al., 2017; Velarde, et al., 2009). Pursuing perfection will help manufacturers decrease waste while increasing uptime, throughput and quality to continue to compete effectively (Immerman, 2018).
Value Stream Mapping (VSM)
The Strategic Organisational Design theory as put forward by Burton, et al. (2011 cited in Villalba-Diez & Ordieres-Meré, 2016) distinguished two fundamental dimensions of organisational configuration which are product/ service/ customer – oriented with a strong outward orientation and functional specialisation with a strong inward orientation, dividing the organisation by specialised activities. This theory is applicable to the Lean manufacture concepts because it recognised the different functionalities in a manufacturing process which Lean aims at harmonising and reducing to ensure waste elimination and value creation. Hence, organisations are designed in a Lean process to maximise the layout of the system and remove all non – value adding activities through its customer driven, focused and pull initiatives and adoption of processes that reduce waste in every level of production.
The multi-contingency theory as put forth by Burton, et al. (2011 cited in Villalba-Diez & Ordieres-Meré, 2016) argues that organisational structure follows strategy and that these challenges act as forces upon organisations that counter-react by shaping their organisational configuration. The manufacturing setting is configured and structured so that departments and activities interact in a manner that enhances productivity.
The Complex Systems Theory as expounded in Jordan, et al. (2015) measures the dynamical organisation of the entire participant-task system. Complex systems theory reveals hidden patterns that help predict the weather, social movements, the spread of diseases, financial recessions (McSweeney, 2018; Saurin, et al., 2013). The production process is a complex system in itself and the Lean concepts is designed to demystify the complexity of the process employing lean tools and reducing the distance in the production layout, eliminating wastes and continuously and incrementally improving the inter-connected process.
The Post – bureaucratic theory according to Handel (2014) argues that employees, as well as firms, benefit from leaner management structures. Kalimullah, et al. (2015) opined that post-bureaucracy are informal relationships that work by reducing chain of command and formal relationships. The theory of post-bureaucracy elucidates a tendency for organisations to delegate more power to employees over time, reflecting the breakdown of traditional bureaucratically ordered power relations (Johnson, et al., 2009). The theory elucidates that strategic creativities, showing an understanding aimed at removing the distance between activities, appreciating flexibility, open system, and the effective use of social capital. Lean manufacture concepts, Just – in Time (JIT) and total quality management (TQM) are standardised systems associated with flexible, entrepreneurial and closeness to market arrangements which apply the post – bureaucratic theory in their operations (Budd, 2007). Hence, this theory is very relevant to the Lean concepts and the major goal of Lean is to remove no – value adding activities and distances in the production line and thereby add value to the production.
The Neo – Liberalism theory also according to Handel (2014) emphasises organisational performance gains. Neo-Liberalism according to Harvey (2005) is a “theory of political economic practices that proposes that human well-being can best be advanced by liberating individual entrepreneurial freedoms and skills within an institutional framework characterised by strong private property rights, free markets and free trade”. It opined that the state must preserve institutional framework by guaranteeing the quality and integrity of money (Flew, 2014). This theory is applicable to the Lean manufacture concept as firms are to put in place framework that will guarantee the quality and integrity of their products and ensure that value is created at the instance or demand of the consumer.
Work Flow
There have been several roadmaps on implementation of Lean manufacture which highlights tools to be introduced industry wide. Some frameworks may be seen as academic while others are industry framework.
Shingo, (1989) identified fifteen lean techniques and tools which include Poke, SMED, Kaban, Yoke, etc. to be applied at the start of an organization’s implementation of lean. Kowalski (1996) focused his ten-step framework on development of effective standardisation and working systems. Similarly, another ten-step framework, which focused on design and layout planning was suggested (Beck, 1999). However, a review of different frameworks within a decade was put together into three stages: preparation, design and implementation (Anvari, et al., 2011). (Wright, Accessed May 29 2018) presented a framework that introduce line balancing of the process line starts with formation of team, 5s, value stream mapping, one-piece flow (Pull).
Duque & Cadavid (2007) advocated for three specifics that must be present in starting lean manufacture in a project:
- Definition of the need for change: to comprehend and communicate continuously what is the motivation for a Lean transformation effort which will serve as a guide and simplify the process to everybody in the company.
- Management commitment and support: Employees ought to see, feel and believe that management is committed to the change, else, nothing much will be done. The participation and support of management should be factual and not just verbal, with managers participating in shop floor activities and kaizen events.
- Identify target areas, model lines and propagation strategy: The plan should signify which production lines will be changed to Lean, the sequence and time frame for the change. The plan should also include training requirements for staff that will drive the Lean concepts.
Lean concepts are applied in the manufacturing process designed to achieve the goal of lean which is waste minimisation for the manufacturer/ producer and value creation for the customer. The design of the Lean manufacture entails following the value stream mapping which is the actual activities necessary to bring a specific product and it passes through very critical processes viz: Design, Order and Make (Nightingale, 2005). The design phase of the Lean framework incorporates assessing waste associates and practices, employee work assessment, mapping the organisation current state using the value stream mapping (VSM), identification of waste types, analysis of wastes, SWOT analysis of applying Lean, documenting the gap in the current state, Mapping the future state using the VSM, and designing a plan for Lean transformation (Belhadi, et al., 2016; Mostafa, et al., 2013; Anvari, et al., 2011). The factors to consider in the design according to literatures include; building expert team, undertaking a situational analysis (present state analysis), communicating Lean plan to stakeholders, training programmes for implementing employees, assembling Lean tools, Process mapping (VSM), documenting and review process, assessing the Lean process using appropriate metrics, sustaining, monitoring and controlling the Lean process (Jouhtimäki, 2015; Mostafa, et al., 2013; Dombrowski, et al., 2012; Lozano & Vallés, 2007; Puvanasvaran, et al., 2009; Pollitt, 2006; PMI, 2013; Shah & Ward, 2003; Scherrer-Rathje, et al., 2009; Cottyn, et al., 2011; Feld, 2001; and Behrouzi & Wong, 2011).
Lean manufacture implementation events should lead to improvement in five dimensions, which are the concepts the company is trying to put into action (Martinez & Perez, 2001 as cited in Duque & Cadavid, 2007). The dimensions of improvement include:
- Elimination of waste: Waste in this sense is everything that does not add value to the product of the organisation, like inventories, machine setups, machine downtime, movement of parts and scrap.
- Continuous improvement: This is the practice of considering development and pursuit of perfection as the normal state of a system.
- Continuous flow and Pull-driven systems: This is the ability of the organisation to abandon the lot approach and adjust the processes to accept smoother flow of products through the line, triggered by the pull of the client of each process.
- Multifunctional teams: This makes flexibility in the line feasible, as a multi-skilled workforce having the responsibility and the autonomy needed for improvement and problem-solving are in place.
- Information systems: Employees ought to have timely access to better and improved information to enable problem-solving and decision making. The system could be manual or computerised information systems.
However, Sundar, et al. (2014) highlighted that successful implementation of lean practically incorporates all elements and sequencing of implementation task namely: Scheduling, Employee sensitisation, value stream ampping, Takt time, bottleneck process, group technology, cellular manufacturing, U-line systems, line balancing, flow manufacturing, single minute exchange of die (SMED), small batch or lot size, inventory, pull system with one – piece flow, Kanban, production levelling, quality at source, Kaizen or continuous improvement and standardisation using a set of standard operation procedures.
Continuous improvement entails increasing efficiency and reduction of loss drivers at every stage of the production process. In the words of Duque & Cadavid (2007), continuous improvement is the belief that improvement efforts are never ending, and it is the steadiness to keep the discipline for perfection in place (kaizen). Fogg (2016) identified six loss drivers of inefficiency in the production process as: breakdowns, setup/ adjustments, small stops, reduced speed, startup rejects and production rejects. Lean manufacture as an alternative production procedure will ensure that these losses are reduced or entirely eliminated from the production process. The lean practice according to Fogg (2016) setups up a baseline that enables the progressive tracking of the manufacturing process in eliminating or reducing wastes. Continuous Improvement is built on a belief in people’s intrinsic craving for quality and value, and management belief in the long run benefits that will accrue (Sundar, et al., 2014). Continuous Improvement is achieved in a lean process through training, process problem solving, training tools and techniques, idea management development and advancement of reward and recognition system (Bhuiyan & Baghel, 2005).
Customer Pull Establishment (Just-in-Time)
Workflow is the automation of a business or manufacturing process, in whole or part, during which tasks are passed from one station to another for action according to a set of procedural rules (WFMC, 1996).
Lawson (2018) defined waste minimisation as restraining the quantity of waste that is created which helps to remove the production of wastes effectively enhancing efforts that encourage a society that is sustainable. Applied to lean manufacture, it is the rduction of wastes in all forms in the production process so as to minimise cost of production and maximise profit for the organisation. Waste minimisation relates to production efficiency, products and production process redesigning to eliminate the waste generation. Lean application is an innovative procedure that implements alternative production procedure and enhances product delivery in time and waste reduction. Waste minimisation according to Lawson spins around the three “Rs” of reduce, reuse and recycle. Some of the benefits of waste minimisation include: product quality improvement, Efficient production through increased output, reduced production cost, increased organisation performance (profits, layout use), more environmental friendly policies and compliance and enhanced public image. According to Mahalik (2014), packaging produces wastes, hence, creating sustainable packing is the new focus and lean manufacturing aims to achieve that. Kezia, et al. (2017) observed that lean methodologies were applied in reducing pack weight and using improved atmosphere packaging or seal integrity procedures to reduce the risk of food waste. Enhanced packaging design also lessens the carbon effect of packaging on the environment and most times improves the life of the product so packaged. Lean manufacturing optimises packaging through recyclability, reusability and recovery as a standard, market novelty and advance which meet the rising demand for re-useable and recyclable packaging traversing all forms of packaging
Operational performance according to O’Brien (2009 cited in Kamau, 2016) is the performance of an organization compared to its set standards such as waste reduction, efficiency, cycle time, environmental responsibility and regulatory compliance. Overall Equipment Efficiency (measured in percentage) was the general metric for measuring operational efficiency in manufacturing concerns but is more applicable to packaging firms because value creation is driven by the efficient conversion of expensive raw materials into products using expensive machines and fairly fixed labour cost (EY, 2013). Three major areas of performance measured which could give rise to losses in a manufacturing unit include: availability, performance and quality (B & R, 2016; EY, 2013). Operational practices like process management, just in – time and total quality management are various methods employed to improve operational performance of organisations (Duarte, et al., 2011). Kaynak (2003 in Duarte, et al., 2011) found that a positive impact of process management and supplier quality management on operational performance of organisations. The application of lean concepts helped Coca Cola save 15000 tonnes of aluminium from its packaging and Heinz saved about $750,000 in production cost and reduced 1,400 tonnes of steel from its packaging (Kezia, et al., 2017). Also, Marks and Spencer employed lean concepts and cut the packaging of its beef by 69% and also increased its product shelf life by 4 days (Kezia, et al., 2017). The perfrormance of Lean concepts was measured and outlined under four perspectives by Afonso & Cabrita (2015) vis: financial, customer – focused, internal business and innovation and learning perspectives.
Pursuing Perfection (Continuous Improvement)
Tham, (2010) enumerated six (6) fundamentals of Lean as:
- 1. Seven(7) Wastes
- 2. Five(5)-S System
- 3. Poka-yoke:Mistake proofing
- 4. SMED: SingleMinute Exchange Die (change-overs)
- 5. Standardize:Standardization of Best Practices and Processes and
- 6. Kanban:Pull System / One Piece Flow
Muda is a Japanese word meaning “futility; uselessness; wastefulness”, and is a key concept in lean process thinking. It is anything that does not add value to the product or service for the customer or any obstruction to smooth flow of an activity. For each activity, there is work, and for any work, there is a cost. Any expenditure on the “Muda” is a waste. Muda negatively affects quality, cost and delivery. Therefore, waste and non-value-added activity must be eliminated. The 7 wastes are:
- Inventory:Any supply in excess of Customer Requirement
- Over-Production:Producing more or faster than required
- Correction: Necessary inspections and repairs
- Waiting: Idle time resulting from non-synchronization
- Material Movement: Any movement that does not support synchronized flow
- Motion: Any movement of people or machines that does not add value
- Processing: Any effort that does not add value to the product or service
Five (5)-S System
This principle enunciated having a place for everything and everything should be in its place. Five dimensions of workplace optimisation for quality, safety, organization & consistency as enumerated by Fogg (2016) are:
- Sort: Sort contents of an area and remove unnecessary items
- Set in Order/Stabilise: Arrange necessary items for easy & efficient access. Keep it that way
- Shine: Clean everything, keep it clean. Use cleaning to ensure area and equipment is properly maintained
- Standardise: Create accessible guidelines to keep areas organised, orderly, and clean
- Sustain: Education & communication to ensure everyone follows 5-Ss
Error-Proofing or Poka-Yoke
- Identify and eliminate errors
- Develop processes and methods that help operators avoid mistakes in their work
- Incorporate “poka-yoke” into Standard Operating Procedures
Single Minute Exchange Die (SMED)
The fundamental of SMED advocated that the production process should:
- Identify and separate internal and external set-up operations
- Convert internal set-ups to external operations which can be performed while the machine is running
Standardisation
This fundamental highlighted the following:
- One “Best Practice” work method
- A Standard Operating Procedure (SOP) that delivers desired outputs for customer
- Why would you entertain the alternative: Less than Best Practice?
The Kanban system helps minimize lead times, work-in-progress and production costs. It involves pulling parts from one production stage into the next, as needed.
- Continuous flow in one direction
- Immediate visual aids/feedback help control movement of materials between workstations
- Provide the customer with product or service right the first time, when required
Ozor, et al., (2015) concluded that lean concept is a good method of improving the productivity of small and medium scale enterprises. Operator motion distance was reduced which can translate to optimal operator utilisation and fatigue reduction. There is equally a reduction in process time and power cost. According to Kezia, et al. (2017) minimising the environmental impact of packaging over the life cycle and its ability to protect the product is the aim of packaging policy. Lean manufacturing optimizes packaging through recyclability, reusability and recovery as a standard and market development and innovation that meet the demand for recycled and re-useable packaging, across all of packaging.
One of the major hitches companies run into while trying to apply lean is the inability to apply lean knowledge. Lean implementation failure is largely caused by the absence of lean culture and adequate planning. One possible cause of an organisation’s lack of success in implementing lean production is inadequate planning and a lack of a lean culture (Chauhan, et al., 2015).
The sheer volume of non-value-added activity or waste in the production process which increases production time is the key problem of producers. Activity mapping process and current state map reveals that non-value-added activity is greater than value added activity in production. Siregar, et al. (2017) proposed an improvement plan to decrease the lead-time of company’s production processes.
We have looked at the philosophies of Lean manufacturing concepts under the guidelines of Lean implementation viz value identification, value stream mapping, work flow creation, customer pull and pursuit of perfection while applicable theories of Lean were equally considered. Also, Lean framework has been equally been extensively considered under its phases of preparation, designing and implementation and culminated in the conceptual framework adopted for this study. Lastly, the fundamentals of the Lean concepts were also x-rayed and reviewed with applicable literatures.
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