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Compare and contrast accounting principles in lean production to those of typical production

Lean Manufacturing or Lean Methodologies? Lean is now being successfully applied in all types of service related industries, saving companies hundreds of thousands to millions of dollars each year. Therefore, in today's environment, I believe the term Lean Manufacturing would be more appropriately referred to as Lean Philosophies or Lean Methodologies.

  1. Production is driven by customer demand; items are only produced when an order is placed Pull - one of the 5 lean principles. Lean Manufacturing or Lean Methodologies?
  2. What we'd undoubtedly find is a series of wasted steps, wasted time, reworks, non-standardized work, poor process flow, etc.
  3. This is one of the primary reasons Lean has been successfully applied in so many different types of industries; every industry has processes. In this example we would analyze all of the steps from start to end with a team of local experts.
  4. An elevator starts when a button is pressed even if there is only one passenger. Everyone is empowered, trained in the principles of lean and encouraged to look for ways to improve processes.

Difference Between Traditional and Lean Manufacturing I am occasionally asked, "What is the difference between traditional manufacturing versus lean manufacturing. To be more specific I've put together a short list below, in no particular order, of what I see as some of the important differences between lean and the traditional approach.

Production driven by a sales forecast Push. Production is driven by customer demand; items are only produced when an order is placed Pull - one of the 5 lean principles. Problems are viewed as just that, problems. Problems are viewed as opportunities for improvement often through root cause analysis. Work in process WIP is viewed as a normal part of operations.

WIP is a sign that a process needs to improved and is considered a type of waste that should be reduced or eliminated the same is true for inventory. Improve system disregarding all of the types of waste in the process. Improve system by 1 Eliminating waste and 2 Improving current processes.

Management is the primary driver of change. Everyone is empowered, trained in the principles of lean and encouraged to look for ways to improve processes.

Lean Manufacturing + TPS + Production Scheduler + JIT + Lead Time + KAIZEN + 5S + KANBAN

If a process is working if it ain't broke don't fix it. Always look for ways to improve processes. Standardized work people performing the same task the same way only exists in documents like SOPs, rarely in reality. Everyone performs the same task the exact same way until a better way is discovered; then everyone performs the task the new and improved way. Focuses on training and relies on people to not make mistakes.

Focuses on building processes that are error proofed a person cannot make a mistake or it would be difficult to do so. Systems thinking views the organization as a wholeoften ignoring or unable to see the enormous opportunities for improvement. Views the organization as a series of interrelated processes that can and should be improved.

Push-Pull Manufacturing

Anytime you have something with a defined beginning and ending, you have a process that could and should be improved. This is one of the primary reasons Lean has been successfully applied in so many different types of industries; every industry has processes. For a non-manufacturing example let's consider routine doctor's appointments.

  1. In supply chain management, it is important to carry out processes halfway between push type and pull type or by a combination of push type and pull type.
  2. An extreme example of a pull-type supply chain sushi restaurant that is unconcerned about lead times is the one that goes fishing when an order is received.
  3. One of the major reasons why supply chain management currently receives so much attention is that information technology enables the shifting of a production and sales business model from "Push type" to "Pull type". These improvements equates to increased efficiencies that have a direct impact on the bottom-line.
  4. Therefore, in today's environment, I believe the term Lean Manufacturing would be more appropriately referred to as Lean Philosophies or Lean Methodologies. Again, like the previous example, if we analyzed this process we'd undoubtedly find many areas for improvement.

The process could START when the computer indicates a patient is scheduled for a routine appointment. It could END when that particular patient completed the routine appointment.

In this example we would analyze all of the steps from start to end with a team of local experts. What we'd undoubtedly find is a series of wasted steps, wasted time, reworks, non-standardized work, poor process flow, etc.

Again, like the previous example, if we analyzed this process we'd undoubtedly find many areas for improvement. These improvements equates to increased efficiencies that have a direct impact on the bottom-line.