Lean Manufacturing is an operational strategy oriented towards achieving the shortest possible cycle time by eliminating waste. It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work. The technique often decreases the time between a customer order and shipment, and it is designed to radically improve profitability, customer satisfaction, throughput time, and employee morale.

Small businesses, in particular, can benefit greatly from implementing lean manufacturing principles. These principles allow for more efficient use of resources, improved product quality, increased customer satisfaction, and ultimately, higher profit margins. In this glossary, we will delve into the key terms and concepts associated with lean manufacturing in the context of small business operations.

Value Stream Mapping

Value Stream Mapping (VSM) is a lean manufacturing technique used to analyze and design the flow of materials and information required to bring a product or service to a consumer. VSM helps identify waste and streamline production processes. The goal of VSM is to identify every step in a process, determine the value of each step, and then eliminate the steps that do not add value.

In small businesses, VSM can be particularly beneficial. It allows the business to visualize their processes and identify areas where they may be wasting resources. This can lead to significant cost savings and efficiency improvements.

Current State VSM

Current State VSM is a detailed representation of the existing process or value stream. It is the first step in the VSM process and involves collecting detailed data about the current process and its components. This includes information about the flow of materials and information, process steps, cycle times, and inventory levels.

For small businesses, creating a Current State VSM can provide a clear picture of their existing operations and highlight areas of waste and inefficiency. This can be a powerful tool for identifying opportunities for improvement.

Future State VSM

Future State VSM is a vision of what the value stream should look like after improvements have been made. It is created by identifying and eliminating waste from the Current State VSM. The Future State VSM serves as a roadmap for implementing lean principles and achieving operational excellence.

In a small business setting, a Future State VSM can provide a clear and achievable vision for improvement. It can help the business prioritize their improvement efforts and track their progress towards their goals.

Kaizen

Kaizen is a Japanese term that means "change for the better" or "continuous improvement." In the context of lean manufacturing, Kaizen involves making small, incremental changes to improve efficiency and quality. Kaizen can involve any aspect of a business, from manufacturing to management, and from the CEO to the shop floor workers.

For small businesses, Kaizen can be a powerful tool for continuous improvement. By focusing on small, achievable changes, small businesses can gradually improve their processes and increase their efficiency and profitability.

Kaizen Events

Kaizen events, also known as Kaizen blitz or Kaizen workshops, are short-term, intensive brainstorming and implementation sessions designed to improve a specific process. Kaizen events bring together a cross-functional team to map out an existing process, identify waste, brainstorm solutions, implement changes, and review results.

In a small business, Kaizen events can be a highly effective way to quickly improve a process. Because they involve employees from all levels of the organization, they can also increase engagement and buy-in for the changes.

Kaizen Culture

A Kaizen culture is one in which all employees are actively engaged in suggesting and implementing improvements to the company. In a Kaizen culture, improvement is seen as a natural, ongoing part of everyone's job.

For small businesses, developing a Kaizen culture can have significant benefits. It can lead to greater employee engagement, improved morale, and a continuous stream of improvements to processes and products.

Just-In-Time (JIT) Production

Just-In-Time (JIT) production is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. JIT is a type of operations management approach which originated in Japan in the 1950s. It involves producing goods to meet demand exactly, in time, quality and quantity, whether the `demand' is from the final customer or from further up the production line.

Small businesses can greatly benefit from JIT production by reducing their inventory costs and improving their production efficiency. However, JIT requires precise production planning and a high level of coordination with suppliers.

JIT Pull System

A JIT Pull System is a system in which work is pulled only when it is needed. This means that production is not based on forecasted demand (as in traditional "push" systems), but on actual demand. The goal of a pull system is to limit inventory and work in process (WIP) by only producing what is needed, when it is needed.

For small businesses, a JIT Pull System can help to reduce inventory costs and improve cash flow. However, it requires a high level of coordination with suppliers and careful production planning.

JIT Kanban System

A JIT Kanban System is a visual system for managing work as it moves through a process. Kanban visualizes both the process (the workflow) and the actual work passing through that process. The goal of Kanban is to identify potential bottlenecks in your process and fix them so work can flow through it cost-effectively at an optimal speed or throughput.

Small businesses can use a JIT Kanban System to improve their production efficiency and reduce waste. By visualizing their workflow, they can easily identify and address bottlenecks, reducing lead times and improving customer satisfaction.

5S Methodology

The 5S methodology is a workplace organization method that uses a list of five Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke. These have been translated as Sort, Set in order, Shine, Standardize, and Sustain. The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order.

Small businesses can use the 5S methodology to improve their operational efficiency and create a safer, more efficient work environment. By maintaining order and cleanliness, businesses can reduce waste, improve productivity, and increase employee satisfaction.

Sort (Seiri)

Sort involves going through all the tools, furniture, materials, etc., in a work area and keeping only essential items. Everything else is stored or discarded. This leads to fewer hazards and less clutter to interfere with productive work.

For small businesses, the Sort stage can help to eliminate old, unused tools and equipment, freeing up valuable workspace and reducing the time spent looking for necessary tools.

Set in Order (Seiton)

Set in Order involves arranging necessary items so they are easy to find and put away. Items are organized based on how they are used, with frequently used items being easy to access. This leads to fewer wasted movements and smoother workflow.

For small businesses, the Set in Order stage can help to improve workflow and increase productivity by reducing the time spent looking for necessary tools and equipment.

Shine (Seiso)

Shine involves cleaning the workspace so it is easy to spot abnormalities (like leaks, spills, excess, damage, etc.) that could impact safety or productivity. This leads to a safer, more pleasant work environment and problems are more likely to be noticed and addressed.

For small businesses, the Shine stage can help to improve the work environment and increase employee satisfaction. A clean, well-maintained workspace can also help to improve product quality and reduce errors and rework.

Standardize (Seiketsu)

Standardize involves creating a consistent approach for carrying out tasks and procedures. Standard work procedures ensure that tasks are performed consistently and correctly, leading to higher quality and fewer errors.

For small businesses, the Standardize stage can help to improve product quality and reduce errors and rework. By standardizing work procedures, businesses can ensure that tasks are performed consistently and correctly, regardless of who is performing the task.

Sustain (Shitsuke)

Sustain involves making a habit of properly maintaining correct procedures. The key to the Sustain stage is maintaining the previous four S's. This requires discipline and commitment at all levels of the organization.

For small businesses, the Sustain stage can help to maintain the improvements made during the previous stages. By making a commitment to maintain order and cleanliness, businesses can ensure that their improvements are not just a one-time event, but a new way of doing business.

Andon

Andon is a system to notify management, maintenance, and other workers of a quality or process problem. The centerpiece is a device incorporating signal lights to indicate which workstation has the problem. The alert can be activated manually by a worker using a pullcord or button, or may be activated automatically by the production equipment itself.

For small businesses, an Andon system can be a highly effective way to quickly identify and address problems. By providing a visual signal of where a problem has occurred, an Andon system can help to reduce downtime and improve product quality.

Andon Board

An Andon Board is a visual control device in a workplace that provides an at-a-glance view of the current state of work. It is a key tool for quickly communicating the status of work and any issues that may have arisen. The board is typically updated in real time and provides a visual representation of the current work status.

For small businesses, an Andon Board can be a powerful tool for improving communication and coordination. By providing a visual representation of the current work status, an Andon Board can help to ensure that all employees are aware of the current state of work and any issues that may have arisen.

Andon Cord

An Andon Cord is a pullcord that workers can use to stop production when a defect is found, or when materials are not in the right place or not properly supplied. The cord is typically located above the production line and is easily accessible to all workers.

For small businesses, an Andon Cord can be a highly effective way to quickly stop production when a problem is detected. By empowering workers to stop production, an Andon Cord can help to prevent defects from being passed on to the next stage of production, improving product quality and reducing rework.

Conclusion

Lean manufacturing principles can provide significant benefits for small businesses. By focusing on eliminating waste and improving efficiency, lean manufacturing can help small businesses to improve their profitability, increase their customer satisfaction, and create a more engaging and satisfying work environment for their employees.

While implementing lean manufacturing principles can require a significant investment of time and resources, the potential benefits can be substantial. By understanding and applying the key concepts and techniques of lean manufacturing, small businesses can position themselves for long-term success in today's competitive business environment.