Index

Administrative processes

batch processing, 31

definition, 17–18

Allergy testing, 201–202

Alternative work units, 34

American Industrial Revolution, 62

Andon systems, 97–99

Baggage-handling process, 172

Batches, 29–32, 37, 62, 124–125, 137, 139, 144, 169–170, 197, 205, 208, 212–213, 216–217, 225

Bottling process, 190, 196–197

Business case, project charter, 174

Business school rankings applications process, 206–207

Business unit, 166

Calibration time, 156–157

CDCs. See Central distribution centers

Central distribution centers (CDCs), 14–15

Champion, 166

Changeover time

administrative workers, 143

average inventory level, 146

calibration time, 156–157

effects of, 143–147

external, 147

internal, 147

long and shorter, 145–146

with multiple workers, 153

nonmanufacturing situations, 142–143

notations, 145

reducing operating room, 149–153

reduction methodology, 154–156

reduction steps, 148–149

requirements in manufacturing, 141

sequence-dependent, 147

total time, 146

videotapes for, 153–154

Collocated process

job shop layout (See Job shop layout)

work cells (See Work cells)

Crosby, Philip, 20

Cycle time

definition, 31

vs. lead time, 31–33

Data entry mistake-proofing, 106–109

Define, Measure, Analyze, Improve, and Control (DMAIC), 25–27

Distribution center conveyor system, 197

Distribution center picking process, 202–203

Distribution metrics, 16

DMAIC. See Define, Measure, Analyze, Improve, and Control

Electronic value stream mapping (eVSM), 43

Employee involvement, 163–165

Error-proofing. See Mistake-proofing

eVSM. See Electronic value stream mapping

External changeover time, 147

Externally oriented project, 33

Gawande, Atul, 61

Global retail distribution supply chain, 15

Health care processes, 19–20

Hospital medication fulfillment process, 200

IDCs. See Import distribution centers

Import distribution centers (IDCs), 14–15

Industrial tank production, 203–204

Insurance claims process, 204–205

Internal changeover time, 147

Internally oriented project, 34

Job Shop Inc., 130–136

Job shop layout

advantages, 124

definition, 123

disadvantage, 125

jumbled flow, 124

setup/changeover, 123

vs. work cells, 123–126

Jumbled flow job shop, 124

Juran, Joseph, 58, 103

Just-in-time (JIT) inventory replenishment, 120

Kaizen, 28

Kaizen events, 176–177

Kanban square signaling device, 119

Kanban systems, 101

kanban square signaling device, 119

material movement and control, 111–112

observations, 116–117

pull systems, 120

replenishment period, 114

spreadsheet formulae and programming, 240–243

spreadsheet model analysis, 238–240

spreadsheet model description, 235–238

spreadsheet model overview, 232–235

two-card kanban system, 117–119

Landscaping contractor receivables process, 197–198

Lead time

alternative method of, 29–30

vs. cycle time, 31–33

definition, 4

description, 9–11

Lead time reduction

administrative processes, 17–18

distribution, 14–16

health care processes, 19–20

manufacturing industry, 13–14

sales, 18–19

service industries, 16–17

Lean

Alvin’s Auto Parts, case study, 224–231

business processes, 3–6

Garth’s Gardens, case study, 210–214

history of, 3

Il Negozio Internet Prosciutto Sales, case study, 215–218

process improvement methodology, 4

purpose of, 2

supply chain for automobile doors, case study, 218–222

Lean framework

DMAIC approach, 25–27

PDCA approach, 25–27

value stream mapping, 28

Lean implementation

employee involvement, 163–165

firefighting mode, 179–180

kaizen events, 176–177

lead time, 9–11

Lean team personnel, 163–165

misaligned incentives, 181–182

organizational structure, 178–179

project charter (See Project charter)

reduction (See Lead time reduction)

selection of right projects, 177–178

true performance, 181

worker efficiency, 180

work-in -process, 9–11

Lean Manufacturing, 3

Lean scenarios

allergy testing, 201–202

bottling process, 190, 196–197

business school rankings applications process, 206–207

distribution center conveyor system, 197

distribution center picking process, 202–203

hospital medication fulfillment process, 200

industrial tank production, 203–204

insurance claims process, 204–205

landscaping contractor receivables process, 197–198

metal automobile parts manufacturing, 205–206

refrigerated goods picking process, 200–201

supermarket chain pharmacist hiring process, 207–208

wiring harness manufacturing, 198–199

Lean Six Sigma, 5

Lean team personnel, 163–165

Level of service metrics, 16

Little’s Law, 10–11, 17, 23, 30, 51, 78, 111, 125–126,144–145

Metal automobile parts manufacturing, 205–206

Mistake-proofing

circuit board example, 103–105

data entry, 106–109

definition, 103

purpose of, 109

stovetop design, 105–106

Muda, 36

Nonvalue-added (NVA) time

categories of, 39–41

description, 36–39

Ohno, Taiichi, 43, 185

OJT. See On-the-job training

On-the-job training (OJT), 88

Overprocessing, 40, 72

PDCA. See Plan, Do, Check, and Act

Plan, Do, Check, and Act (PDCA), 25–27

poka yoke, 103, 107–108

Process

definition, 3

pictorial representation of, 4

Process analysis

careful observation, 43–45

nonvalue-added time, 36–39

value-added ratio, 37–38

value-added time, 36–37

5 Whys method, 45–49

Process improvement methodology, 4

Process mapping

alternative work units, 34

batch processing, 31

cycle time vs. lead time, 31–33

externally oriented project, 33

internally oriented project, 34

work units, 33

Process scope, 172–173

Process step lead time, 30

Product layout, 125

Project charter

baggage-handling process, 172

business case, 174

customer benefits, 175–176

definition, 166

process examples, 168–169

process metrics, 171

process scope, 172–173

project description, 169–170

template, 166–167

Project facilitator, 166

Pull systems, 120

RDCs. See Regional distribution centers

Reduced process variation

arguments against standardization, 60–63

arguments for standardization, 63–67

exercise results, 55–56

experiment in variation, 51–52

importance of, 51

lessons learned, 56–60

penny-dropping exercise, 52–55

Refrigerated goods picking process, 200–201

Regional distribution centers (RDCs), 14–15

Replenishment period, 114

Request for quotation (RFQ), 18–19

RFQ. See Request for quotation

Scientific method, 65–66, 185

Sequence-dependent changeover time, 147

Service process

batch processing, 31

definition, 16

Seven deadly wastes

nonvalue-added time, 39–40

visual systems, 101

Shadow boards, 96–97

Shingo, Shigeo, 148

Shitsuke, 78

Simplifying and streamlining tool

eliminating process steps, 71–73

5S methodology, 76–79

spaghetti diagrams (See Spaghetti diagrams)

tools, equipment, jigs, fixtures, and procedures, 79–80

Single-minute exchange of dies (SMED), 148

Six Sigma

description, 5

vs. Lean activities, 26

SMED. See Single-minute exchange of dies

5S methodology, 76–79

Spaghetti diagrams

café worker making Cobb salad, 74

definition, 73

improved process, 76

original process, 75

person’s path during die changeover, 74

5S tagging protocol, 7 7

Standard inventory, 82

Standardized work tool

aspects of, 81

creating documents, 86–87

finer details, 88

graphical process description, 82–83, 90

multiple operators, 88, 91

process layout, 85

task detail and timing, 82, 84, 89

value stream map, 81–82

Standing in a circle, 43–45, 185, 229

Stovetop design, mistake-proofing, 105–106

Supermarket chain pharmacist hiring process, 207–208

Synchronizing tool

importance of, 111

kanban systems (See Kanban systems)

pull systems, 120

Team leader, 166

Template, project charter, 166–167

Toyota Production System (TPS), 3, 27, 36, 64, 76, 81, 96, 103, 111, 119, 183

Two-card kanban system, 117–119

Utilization, 126–129

Value-added ratio (VAR), 37–38

Value-added (VA) time, 36–37

Value stream mapping (VSM)

accuracy in, 42

advantages and disadvantages, 42–43

definition, 6

Lean framework, 25–28

VAR. See Value-added ratio

Visio, 43

Visual systems

administrative and service processes, 99–100

Andon devices, 97–99

description, 93

kanban systems, 101

Lean implementation, 93–96

seven deadly wastes, 101

shadow boards, 96–97

VSM. See Value stream mapping

Waiting, 39–41, 45, 87–88

Waste, 35–39

Wasted motion, 40

Waste elimination, 191–195

5 Whys method, 45–49

Wiring harness manufacturing, 198–199

Work cells

considerations, 129

designing at Job Shop Inc., 132–136

final comments and further study, 139–140

general criteria, 126–129

vs. job shop layout, 123–126

retail hiring process, 138

service and administrative processes, 136–139

utilization, 126–129

Work-in-process inventory, 10

Work units

alternative, 34

description, 33