Lean Management System LMS:2OI2
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1 Lean Management System LMS:2OI2 A Framework for Continual Lean Improvement William A. Levinson f r oc) CRC Press \M ^ J Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor & Francis Croup, an informa business A PRODUCTIVITY PRESS BOOK
2 Contents Preface xi SECTION I OVERVIEW 1 The Need for a Lean Management Standard 3 The Serpent in the Industrial Garden of Eden 6 Lean, Six Sigma, or Both? 11 Critical to Quality versus Critical to Lean 13 LMS:2012 Development Considerations 14 Organization and Implementation of LMS: LMS:2012 Section I: Foundation of a Comprehensive Lean Management System 17 LMS:2012 Section II: Voluntary and Customizable Lean Management System Standard 17 LMS:2012 Section III: Supplementary Detail 18 2 Lean Key Performance Indicators 21 Waste of the Time of Things 22 Waste of the Time of Things: Cycle Time Accounting 25 Division of Labor and Variation Reduction 33 Waste of the Time of People 36 Waste of the Time of People in Service Activities Ḷ 38 Waste of Materials 39 Waste of Energy 40 Energy Efficiency Gap Analysis: Thought Process 41 Material and Energy Balance :..43 Steady-State Assumption and Control'Surface 43 Application to Painting and Coating Operations 44 Application to Steel and Aluminum Manufacture 45 Application to Machining Operations 46
3 vi Contents Application to Power Generation 48 Material and Energy Balance, Summary..." * 49 Do Not Use Carbon Emission Metrics 50 Is Climate Change a Problem? 53 Special Interests and the Climate Agenda 56 Cap-and-Trade Community Doesn't Walk Its Talk 58 Recommended KPIs Identify All Operating Wastes 59 Lean KPIs and Goldratt's Theory of Constraints 6l Lean KPIs and the Toyota Production System 62 Lean KPIs and Lean Manufacturing Techniques 63 Waste of Capital Investment 63 Non-Operating Processes and White Elephants 64 Waste of Capital Assets in Operating Processes 65 Summary: Lean Key Performance Indicators 66 3 Integrated Lean Assessment 67 Why IMAIS? 67 Isolate 70 Isolate versus Supply Chain Perspective 74 Measure 75 Assess 77 Time of People versus Time of Things 77 Energy versus Time of People and Time of Things 78 Materials versus Time of People 79 Improve 79 Standardize : 79 Summary: IMAIS 80 SECTION II LMS: Lean Management System Requirements 85 Provision 4.1: General Requirements 85 Explanation 86 Provision 4.2: Lean System Documentation 86 Provision 4.2.1: General Documentation Requirements 87 Provision 4.2.2: Lean Manual 88 Provision 4.2.3: Control and Retention of Documents and Records 89 5 Organizational Responsibility 91 Provision 5.1: Organizational Commitment 91
4 Contents vii Provision 5.2: Customer Focus 93 Provision 5.3: Lean Management Policy : 93 Sample Lean Policy (Not Part of Provision 5.3) 94 Provision 5.4: Planning for Lean Operation 94 Provision 5.4.1: Lean Objectives 94 Provision 5.4.2: Lean System Planning 95 Provision 5.5: Supply Chain Responsibility 96 Provision 5.5.1: Responsibility 96 Provision 5.5.2: Management Representative 96 Provision 5.5-3: Supply Chain Communication 97 Provision 5.6: Lean System Review 98 Provision 5.6.1: General Requirements 98 Provision 5.6.2: Review Input 98 Provision 5.6.3: Review Output 99 > Lean System Infrastructure and Resources.101 Provision 6.1: Resource Availability 101 Provision 6.2: Workforce Training and Empowerment 101 Provision 6.3: Facilities, Layout, and Supporting Services 102 Provision 6.4: Work Environment, Ergonomics, and Motion " Efficiency Product or Service Realization 105 Provision 7.1: Planning 105 Provision 7.2: Customer Lean Operation Requirements 106 Provision 7.3: Product, Process, and Service Design for Lean <. 106 Provision 7.4: Purchasing: Lean Supply Chain Practices 107 Provision 7.4.1: Deployment of Lean Requirements to Suppliers 108 Provision 7.5: Lean Production and Service 109 Provision 7.5.1: Lean Process Control 113 Proyision 7.6: Control of Gages and Instruments 114 Provision 7.7: Supply Chain Management 114 Provision 7.7.1: Customer-Supplier Relations 114 Provision 7.7.2: Transportation Measurement and Continuous Improvement 117 Provision 8.1: Measurement and Analysis for Continuous Improvement 117 Provision 8.2: Monitoring and Audit 117 Provision 8.2.1: Satisfaction of Customer Lean Requirements 117
5 viii Contents Provision 8.2.2: Internal Audit 117 Provision 8.2.3: Measurement and Monitoring of Process or Service 118 Provision 8.3: Containment of Nonconforming Product or Service 119 Provision 8.4: Data Analysis 119 Provision 8.5: System, Process, and Service Improvement 120 Provision 8.5.1: Continuous Improvement 120 Provision 8.5.2: Proactive Action 120 Provision 8.5.3: Preventive Action 121 SECTION III DETAILS AND EXPANDED EXPLANATION 9 Lean Management System: Details 125 Process Perspective 127 Need for Documentation 128 Lean Manual ; 131 Control and Retention of Documents and Records Organizational Responsibility: Details Need for Organizational Commitment 133 Management Commitment Loses the Luddites 135 Management and Workforce Commitment: Workforce Flexibility 138 Management Commitment and Training 138 Lean Management Policy 140 Supply Chain Responsibility '. 140 State of Self-Control 141 Supply Chain Communications 142 Need for Internal and External Porosity 143 Lean System Review, Infrastructure and Resources: Details 145 Workforce Training and Empowerment.j. 145 Facilities, Layout, and Supporting Services 147 Work Environment, Ergonomics, and Motion Efficiency Product or Service Realization: Details 149 Planning 149 Design and Development for Lean 149 Purchasing and Lean Supply Chain Practices 150 Purchasing Process 151 Lean Production and Service 151
6 Contents ix Lean Process Control 152 Supply Chain Management. 154 Customer-Supplier Relations 155 Transportation Measurement and Continuous Improvement: Details 159 Measurement and Analysis for Continuous Improvement 159 Proactive Action Additional Lean Environmental and Energy Practices 163 Identification of Material and Energy Wastes 164 Reduction of Material and Energy Wastes 165 Supercritical Solvents 166 Counterflow Rinse Systems in Semiconductor Processing and Metal Plating 166 Get a Sail! 168 Don't Ship Air (or Water) : 169 Innovative Use of Mechanical Energy 171 Economy of Scale in Renewable Energy 171 Application to Agriculture 172 Innovative Thinking in Transportation Rs: Refuse, Reduce, Reuse, Recycle Conclusion 179 Lean KPIs and CTL Characteristics 179 IMAIS Improvement Cycle 180 LMS: Bibliography 183 Index 191
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