Characteristics/Attributes of a Lean Operation

Home
>
Business Management
>
Characteristics/Attributes of a Lean Operation

Characteristics/Attributes of a Lean Operation

Fundamentals in Place

? There is a designated place for everything and everything is in its place. No time is wasted while looking for things. The organization looks clean and everyone is required, encouraged and motivated to keeping it organized.

? The distance traveled by operator(s) and/or a specific part is less than the perimeter of the facility.

? There are on-going reports easily assessable to everyone that provides timely feedback for individuals and groups.

? Quality is achieved by controlling the process, not by checking parts. Rework and quality returns are rare occurrences.

Evident Flow

? Everyone is aware of the status of the subsequent operation/step.

? There is a clearly visible, easy to follow path through all steps.

? External set-up time has been eliminated and everyone follows consistent set-up procedures.

Balanced Lines/Processes

? Everyone is aware of and executes to takt time (pace of production required to match demand from the next operation/step).

? To handle mix issues, the schedule is properly leveled to minimize the impact of both inventory and set up time. In addition, the required pitch (i.e. increments of work) is regularly determined for the pace maker operation/step.

Pull vs. Push

? There is one single point for scheduling (i.e. pace maker) ? scheduling is not done at multiple or at every operation/step.

? There is no or limited number of batch processes ? whenever possible, a continuous flow. One key clue to look for is presence of inventory.

? In spots where batching is necessary, FIFO pull system is in place with proper inventory levels. The amount of overall inventory (in equivalent number of days) should be approximately or slightly higher than the average of lead time (in days). Any discrepancy results in excess inventory and/or part shortage (which in turn impacts customer service level).

? Customer service level is not directly impacted by forecast accuracy. There are no official "expeditors."

Organization Alignment

? There is an acceptance for trying new ideas and concepts. Desire for continuous improvement is very strong. Maintaining status quo is not an option.

? There is constant communication channel between workforce and the management. Award and recognition are based identifying, implementing and sustaining improvements (on time, quality, customer service and/or cost).

? The workforce is empowered and motivated to self-direct daily operations/tasks with minimum input from management.

? There are clear, proper, objective and timely measurements available for everyone to view. Any degradation is identified and addressed immediately.

Simply put, in a truly lean organization, each step in the entire value chain processes only what the subsequent step requires ? this is done at the right time, in high quality and at the lowest cost possible. All seven types of waste have been identified and eliminated ? the only remaining work should be those that are needed to change form/fit and/or function a customer is willing to pay for.

About Tefen

Tefen is a publicly traded, international operations consulting firm with seven offices in United States, Europe and Israel. The firm has over twenty years of experience in improving the overall operational effectiveness of Fortune 500 clients around the world. Tefen designs and implements solutions that enhance operational performance throughout an organization. The main areas of focus include operational excellence, manufacturing, quality, customer service, research and development, and supply chain management. All of Tefen's support programs are ISO 9001 and TCS (Total Customer Satisfaction) certified. Our hands-on approach has achieved success in delivering quantifiable and value-driven results. The company has remained profitable since its inception and currently employs over 250 professionals worldwide, 40 of whom are certified Six Sigma Black Belts.

Joong Hyun is the author and a Director of Operations at Tefen (http://www.tefen.com/). For questions or further information regarding this article, please contact Raymond Cheng, Marketing Manager, at info@tefen.com.

In The News:

Yahoo! News: Top Stories

Gaza violence rages on despite UN cease-fire call (AP)

AP - The U.N. Security Council called for an immediate cease-fire in Gaza, but an intense bombardment of missiles from Israeli jets and helicopters early Friday and a barrage of Hamas rockets indicated there may be no quick end to the fighting.

Toxic coal ash piling up in ponds in 32 states (AP)

AP - Millions of tons of toxic coal ash is piling up in power plant ponds in 32 states, a practice the federal government has long recognized as a risk to human health and the environment but has left unregulated.

Mini Dynasty: Tebow leads Gators past Oklahoma (AP)

AP - The game defied expectations. Tim Tebow fulfilled them. He rescued No. 1 Florida, running through and throwing over No. 2 Oklahoma for a 24-14 victory Thursday night that gave the Gators their second BCS championship in three years.

Asia stocks mixed ahead of US jobs report (AP)

AP - Major Asian stock markets fell Friday amid more corporate gloom and worries that a key U.S. jobs report could show recession in the world's largest economy is deepening.

Obama: Congress must act boldly and now on economy (AP)

AP - President-elect Barack Obama implored Congress on Thursday to "act boldly and act now" to fix an economy growing perilously weaker. Democratic and Republican lawmakers complained about his tax policies, letting Obama know they intend to place their own stamp on the economic recovery effort.

Illinois House on verge of impeaching Blagojevich (AP)

AP - Gov. Rod Blagojevich faces almost certain impeachment by the Illinois House, a historic step that would trigger a trial to determine whether the Democratic governor should be tossed out of office.

Job losses stack up as recession deepens (AP)

AP - Trying to survive a deepening recession, employers are cutting their work forces to the bone, leaving more Americans unemployed and with dim prospects of finding a new job any time soon.

Cheney: CIA did nothing illegal in interrogations (AP)

AP - Vice President Dick Cheney said Thursday that he sees no reason for President George W. Bush to pre-emptively pardon anyone at the CIA involved in harsh interrogations of suspected terrorists. "I don't have any reason to believe that anybody in the agency did anything illegal," he said.

Critics' final answer: `Slumdog' wins 5 awards (AP)

AP - The critics have spoken, and "Slumdog Millionaire" is their final answer.

Democrats criticize Obama's proposed tax cuts (AP)

AP - President-elect Barack Obama's proposed tax cuts ran into opposition Thursday from senators in his own party who said they wouldn't do much to stimulate the economy or create jobs. Senators from both parties agreed that Congress should do something to stimulate the economy. But Democratic senators emerging from a private meeting of the Senate Finance Committee criticized business and individual tax cuts in Obama's stimulus plan.

U.N. calls for immediate Gaza truce (Reuters)

Reuters - Israel pushed ahead with its offensive in the Gaza Strip on Friday, ignoring a U.N. Security Council resolution calling for an immediate ceasefire in the 14-day-old conflict.

World waits on jobs data as recession weighs (Reuters)

Reuters - U.S. employers probably cut the most jobs in at least 34 years last month as the global economic crisis gathered pace and moves by policy makers took time to filter through to struggling companies.

Panel steps up criticism of Treasury: report (Reuters)

Reuters - A report being released on Friday alleges that the U.S. Treasury has failed to reveal its strategy for stabilizing the financial system, not answered questions asked by a government watchdog, and has done nothing to help struggling homeowners, the Wall Street Journal said.

EU seeks gas supply return after deal (Reuters)

Reuters - Europe sought a swift restoration of gas supplies on Friday after striking a deal with Moscow on monitoring gas shipments via Ukraine that have been halted by a pricing dispute with Kiev.

Citi backs measure to help avoid foreclosures (Reuters)

Reuters - Financial giant Citigroup Inc will support a proposal in Congress to rewrite U.S. bankruptcy law to help troubled mortgage borrowers avoid foreclosure, Chief Executive Vikram Pandit said on Thursday.

Illinois panel recommends governor's impeachment (Reuters)

Reuters - A legislative committee on Thursday recommended the impeachment of Illinois Gov. Rod Blagojevich, citing widespread abuse of power including allegations he tried to sell the U.S. Senate seat vacated by President-elect Barack Obama.

Obama team amending financial rescue package: report (Reuters)

Reuters - President-elect Barack Obama's economic team is urgently overhauling the $700 billion financial rescue package to broaden its scope beyond Wall Street, The Washington Post reported on Friday.

Qaeda Pakistan leader believed dead: U.S. official (Reuters)

Reuters - Al Qaeda's operations chief in Pakistan and a top aide are believed to be dead, a U.S. counterterrorism official said on Thursday, in what appeared to be the latest results of a campaign targeting the militant group's leadership.

Gaza toll mounts as UN Security Council urges immediate truce (AFP)

AFP - Israel carried out new deadly air raids on the Gaza Strip on Friday as the UN Security Council called for an immediate ceasefire to end the two-week-old conflict in the Palestinian enclave.

Hopes for Russia gas deal after EU claims breakthrough (AFP)

AFP - European states deprived of Russian gas amid freezing weather were Friday hoping for a resumption of deliveries after the European Union claimed a breakthrough in the crisis between Moscow and Kiev.

Characteristics/Attributes of a Lean Operation

Business Management Business Management