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All companies seek ways to improve their businesses. One of the most common goals of trumping the competition is cutting expenses, which can be best achieved through lean manufacturing strategies.

But before anything, let us first define what lean manufacturing is. Lean manufacturing is a management concept that supports the ‘no waste’ policy. These ‘wastes’ refer to the seven most common reasons for underproductivity and delay identified by companies all over the world.

They are inventory, over production, waiting time, transportation, processing, scrap and defects and motion. According to studies, most firms waste between 70% and 90% of the resources available to them. These happen when there are huge stockpiles of overruns, or when it takes ten activity levels to achieve something that can be done equally as good as when completed in three steps. The list can go on, but you get the picture.

The tricky part about implementing lean manufacturing principles is that most of the wastes identified are invisible, making their reduction and eventual eradication challenging. But with careful planning, lean manufacturing should be a walk in the park for your company

There are five core disciplines in lean manufacturing. Not all firms require their implementation, but at least one of which is necessary for the betterment, or ‘leaning’, of an organization.

1) team development
2) cellular manufacturing
3) six sigma and total quality management
4) rapid setup
5) pull scheduling

To complement the above, the following five lean manufacturing principles are what serve as guidelines for firms that want to maximize value out of their organization.

Out With Waste

Lean manufacturing principles focus on eliminating waste from the company. This means taking out unnecessary departments or redundant positions, or eradicating processes that just cause delay.

If it means terminating jobs, then do so. Lean manufacturing espouses that all resources, land, persons and capital, are used in the best and most efficient way they can be used.

Do It Right The First Time

Trial and error methods are simply a waste of resources and time. If enough effort is placed in carefully planning a certain manufacturing process, then there wouldn’t be the need to start all over again, or settle with mediocre situations.

Always Seek The Best

Every company should always reach for the highest value that can be achieved. All the effort will be futile and major waste if this isn’t done so.

Be Flexible

Lean manufacturing principles do not support stiff and linear thinking. If something needs to be improved and changed along the way, then do so at once, instead of contending with the original plan that has been eventually found to be resource and time-wasteful along the way.

Don’t Push, Pull

Consumers should be given the freedom to decide what they want. As a manufacturer, you should impose trends or products to your clients. Rather, you should always be on the lookout for what will make your consumers happy.

Of course, adopting lean manufacturing principles does not always mean that your company is saved. It still takes careful planning, method-mapping and a lot of discipline to succeed. If your company is not wary of the consequences of strategies that are haphazardly implemented, then these lean manufacturing principles will be in vain — and total waste.

The Philosophy of Lean Manufacturing

In the field of management, there are various approaches that principally aim to accelerate and boost corporate firms’ revenues and operational efficiencies.

Progressive companies from around the world have been coming up every now and then different strategies for corporate improvement. Some of these schemes have been so effective that other firms have recognized and even adopted them.

One of these efficiency-focused philosophies is what is termed ‘lean manufacturing.’

What is lean manufacturing?

Lean manufacturing is a holistic and strategic approach that aims to enable businesses and companies to improve and boost competitiveness and profitability.

Lean manufacturing aims to introduce and set in desired improvements through identifying, and gradually, eliminating wasteful or unproductive behavior and practices among employees and management.

The scheme called lean manufacturing is a program or methodology that could prove to be fitting and appropriate for all types of businesses or organizations. Lean manufacturing would be effective whether adopted by companies in the manufacturing, service, trading or other sectors.

Lean manufacturing is focused at helping companies get the right things, to the right and appropriate places, at the perfect or right time and in the right amount or quantity while at the same time, reducing waste and promoting productivity and flexibility among workers.

Lean manufacturing and wastes

It does not take a successful manager to assert that businesses and companies carry unnecessary and unlikely burden of wastes.

Lean manufacturing as a philosophy focuses on reducing the seven wastes commonly identified among global firms. Lean manufacturing attempts to help companies eliminate these unnecessary wastes to improve output quality, to maximize production and the time needed for it and mostly, to significantly save on costs.

The seven wastes lean manufacturing aims to slash and eliminate in the workplace are the following:

1.      Over production
2.      Over processing
3.      Transportation
4.      Motion
5.      Inventory
6.      Waiting
7.      Scrap and defects

Over production, over processing and inventory

While some companies view over production in the positive way, most, especially those in the service and manufacturing sectors, take it as a manufacturing liability.

Over production will create a piling of inventory that would eventually create a problem in distribution because most warehouses have capacity limits.

What is worse is that over production and piling of inventories are the usual causes of price drops, which are deemed bad for the business by most firms.

The fundamental law of supply and demand will attest that if supplies are exceeding or too much, the demand tries to settle down or decline. Demands going down will mean prices rolling back or dropping as well.

Over processing is unnecessary because it takes so much productive time from employees and managers. There are many disadvantage of over processing and most of them seem pretty obvious to you. Over processing makes costs blow up.

Transportation, motion and waiting

Because time is an important element of productivity, lean manufacturing values it the most. Thus, lean manufacturing philosophy aims to boost efficiency.

Transportation is an essential element of manufacturing because through it commodities and merchandise are distributed to retailers, down to the consumers.

However, lean manufacturing mandates firms to maximize the use of transportation especially nowadays when oil prices are soaring.

Because energy prices are rising, and energy is what makes companies rolling, motion should be controlled. Lean manufacturing will have companies slash procrastination and unproductive hours among employees so as to increase and meet sufficient production targets.

If motion is made efficient, then waiting could be reduced if not eliminated. In lean manufacturing, waiting makes idle of people and it kills time that should have been used instead in productive measures and activities.

Scrap and defects

Lean manufacturing have it that if employees are efficient and if they are motivated, the quality of production would be greatly boosted. That means, the company will not have to spend costs on wages, energies and other capital just to produce defective items that would eventually rejected upon distribution.

While scraps and defects in production items are inevitable, companies adhering to lean manufacturing could always do something about it. Basic management principles have it that motivation is the most effective incentive to get workers doing the right and proper procedures in the work place.

All the seven wastes that are combated by lean manufacturing strategies are somehow interconnected with each other that eliminating one could lead to the elimination of the others.

Implementing Lean Manufacturing by Third Party Logistics Outsourcing

Lean Manufacturing

Lean manufacturing is one of the business philosophies of today that have been embraced by most corporations around the world. Though it was initially intended for the improvement of manufacturing systems and processes, it made its mark throughout the rest of the enterprise as well.

Lean manufacturing originated from the business policies of one of Japan’s top automobile maker Toyota. This is very obvious since several of the terms used in the lean manufacturing processes or systems are Japanese words like kaizen, kanban and andon.

Lean manufacturing has since been part of the business system and is regularly observed by most companies around the world.

Lately, lean manufacturing is being implemented by companies by hiring third party logistics. Lean manufacturing by third party logistics is possible by outsourcing.

Lean Manufacturing By Third Party Logistics

Outsourcing is currently the trend in most businesses today. In fact, General Motors of North America has been using outsourcing as part of its competitive advantage strategies. This company has plenty of experience when it comes to the analysis of an outsourcing company’s capabilities and solutions.

Lean manufacturing by third party logistics is being utilized by most of the companies today including General Motors. General Motors identified the Powertrain Warren plant where General Motors can implement lean manufacturing and they used third party logistics to do this.

It embraced lean manufacturing principles by third party logistics and used the plant to effectively manufacture engines. It also used lean manufacturing by third party logistics to resolve transportation issues.

Later general Motors decided to further use lean manufacturing by third party logistics for the entire group. Greater benefits are evident from the economies of scale. Clearly, the teachings of lean manufacturing are to add value and eliminate waste simplifying the manufacturing process.

Steps Done In Choosing Lean Manufacturing By Third Party Logistics

General Motors made its choice on what potential supplier or third party logistics to choose from a number of factors enumerated below:

1. The overall quality of the lean manufacturing by third party logistics.

2. The service of the lean manufacturing by third party logistics.

3. The available technology or innovation of the lean manufacturing by third party logistics.

4. The price of the lean manufacturing by third party logistics.
 
The Benefits From Lean Manufacturing By Third Party Logistics

In line with the principles of lean manufacturing, the outsourcing party must be able to do it all in the least costly and the most relaxed manner.

The strategy of General Motors to outsource its transportation function has been very effective and is rather working well. The third party logistics have a 99 percent record for on-time performance and has met its objective to gain significant savings for General Motors.

The lean manufacturing by third party logistics has been implemented rather well in the case of General Motors. The available visibility of the products and data information via the supply chain pipeline of General Motors has been a value that was unexpected.

Furthermore, the lean manufacturing by third party logistics strategy covered scanning of all the General Motor’s freight and updated the advance shipping notifications of General Motors.

To make sure that both parties will combine their efforts to continuously improve processes in line with the principles of lean manufacturing, the outsourcing arrangement will include a gain sharing component.

Lessons Available From The Outsourcing Journal

The lean manufacturing by third party logistics strategy is effective since outsourcing several of the company’s functions such as the transportation functions will allow a buyer to possibly leverage the strength of the supplier in the economies of scale in order to be able to achieve a number of objectives that include on-time performance and cost reduction.
 
From the view of the third-party logistics supplier, it will manage the transportation function. It may also decide on using subcontract arrangements for some portions of the route, or otherwise perform and deliver the transportation services along with the management decisive component.

Lean manufacturing by third party logistics have a gain sharing mechanism indicated in the outsourcing contract which is a highly effective option for an incentive as well as for continuous reduction of cost and the improvement of services.

A Handful of Recommended Books About Lean Manufacturing

Lean manufacturing is the emerging trend nowadays for maximization of productivity among companies and firms.

Because today’s time is so hard, with almost every company around the world suffering from narrowing margins and operation losses, major and established giant firms acknowledge and start implementing lean manufacturing strategies within their businesses.

However, lean manufacturing is a discipline, an approach that should be carefully studied before implemented in the workplace. Taking a closer look at it and its operational nature will ensure the attainment of desired benefits from lean manufacturing.

Because lean manufacturing is a helpful set of strategies and business operational techniques, it would be helpful if managers, employers, entrepreneurs and even the most common workers know about it.

In this regard, here are some of the best and most helpful books that are recommended if you want to study, look at and know more about lean manufacturing.

These books are available on your nearest book stands. These lean manufacturing books are also available online, so log in and check them out through your reliable and favorite online shopping Web site.

“5 Pillars of the Visual Workplace”

A book authored by Japanese expert Hiroyuki Hirano and translated by Bruce Talbot, “5 Pillars of the Visual Workplace” gives pertinent outlook and information about the visual workplace.

“5 Pillars of the Visual Workplace” touches and focuses on the widely popular 5S’s principle, which are being used currently worldwide. These are seiri or organization, seiton or orderliness, seiso or cleanliness, seiketsu or standardized cleanup and shitsuke or discipline.

The Japanese 5S clearly and obviously outlines the approaches behind the ever-reliable lean manufacturing techniques. Apparently, the two workplace concepts are interrelated with each other because both aim to maximize productivity by eliminating wastes and wasteful practices.

“5 Pillars of the Visual Workplace” also offers a number of significant and related case studies that include 5S training materials and graphic demonstrations and illustrations.

“New Manufacturing Challenge”

This book details and outlines the competitive techniques and strategies successfully implemented and adopted by successful and giant global companies in the past two decades.

Authored by another Japanese researcher, Kiyoshi Suzaki, “New Manufacturing Challenge” focuses on manufacturing firms and provides recommendations on how these companies can boost production efficiency.

“New Manufacturing Challenge” is very much recommended specifically for manufacturing and production specialists.

“Just Another Car Factory?”

The book is written by Christopher Huxley, James Rinehart and David Robertson.

“Just Another Car Factory?” demonstrates the effective implementation and use of lean manufacturing techniques by taking the example of the CAMI Automotive.

CAMI Automotive is a joint car making business of US-based General Motors and Japan’s Suzuki. It is understood that CAMI Automotive has developed and adopted one of the most effective lean production facilities.

By taking a closer look and conducting a case study of the company, the authors have successfully come up with a book that touches mainly on lean manufacturing, including the aspects of sociology, labor, human resources management and industrial relations.

“Lean Manufacturing Implementation”

“Lean Manufacturing Implementation” is a sequential and step-by-step informative reading about implementation of lean manufacturing techniques in businesses.

The lean manufacturing book is authored by Dennis Hobbs and co-published by CPIM and APICS. “Lean Manufacturing Implementation” was published in October 2003.

The book enumerates comprehensible and understandable transformation of manufacturing businesses into productive ones using lean manufacturing techniques.

“Lean Manufacturing Implementation” is written in a manner that readers will surely easily understand the techniques and description due to the simple words, vocabularies and sentence structures used by the author.

“Lean Manufacturing Implementation” also tackles common problems and concerns arising from the implementation of lean manufacturing techniques as well as effective and recommended solutions to address these lean manufacturing issues.

“What is Lean Six Sigma”

“What is Lean Six Sigma” is written by Bill Kastle, David T Rowlands and Michael George.

This lean manufacturing book focuses on the integration of the Lean Six Sigma, which practically and effectively combines the principles of improving work (through the use of the paradigm of the so-called workplace Six Sigma) and faster work (through using and implementing key lean manufacturing principles).

“What is Lean Six Sigma” will surely be an easy reading, but informative, because the authors employed the plain-English style of book writing.

Ergonomics in Lean Manufacturing

Ergonomics is often referred to as a discipline containing human factors affecting or influencing manufacturing production.

Ergonomics mainly focuses on the human body, its capacity and its limits. Thus, ergonomics is often considered a full-scale scientific discipline that tries to touch and understand interactions between humans and other significant elements of a system, usually the working environment.

Thus, ergonomics as a profession aims to optimize well-being and total system performance of human beings working in an environment. To achieve that, ergonomics apply certain methods, data, principles and theories that would be of great significance to production.

Ergonomics and lean manufacturing

Lean manufacturing is a management principle or approach that principally targets the improvement in competitiveness and profitability of a business.

The main concern of lean manufacturing is to eliminate or scrap unnecessary and wasteful behavior and practices of work personnel.

Thus, it would be safe and appropriate to say that lean manufacturing and ergonomics are bed mates. The two work disciplines and principles could greatly and undoubtedly complement each other.

It would also be proper to assert that ergonomics and lean manufacturing could work hand in hand to make sure the attainment of their respective goals and aims are achieved.

Ergonomics involve the design, assessment and evaluation of activities, tasks, work loads or jobs, products, working environments and work systems.

For its part, lean manufacturing involves approaches or business strategies that attempt to maximize productivity in the workplace by reducing, if not totally eliminating, unnecessary and unproductive tasks, activities and working behaviors.

Experts estimate that improvements brought about by adhering to ergonomics can bring in lean manufacturing results or save production time by as much as 25% to 40% on the general average.

Specific areas of lean manufacturing that targets lean manufacturing

There are five specific branches of ergonomics that can specifically bring in desired and productive results when integrated with lean manufacturing.

The five ergonomics branches are worker selection, man-machine allocation, anthropometrics, biomechanics and physiology. Read on to find out more about these ergonomics branches.

Worker selection— Ergonomics suggest that to achieve a major streamlining initiative or lean manufacturing effort, companies should start from the top.

That means, to be able to eliminate and prevent wasteful and unproductive practices and behavior in the office, they should hire personnel that are apparently able to contribute to maximized productivity.

Analysis of resumes and curriculum vitae of job applicants is very important, because the working nature of an individual are somehow stated within the contexts of these application papers. The employer should just learn how to read between the lines.

Man-machine allocation—Allocation in ergonomics and lean manufacturing means the division of work between personnel and machines or manufacturing equipment.

To be able to achieve this ergonomics goal, the management should carefully plan and assign the use of specific manufacturing machines by certain personnel. Through that, both the equipment and the worker are not worn out, thus, increasing productivity.

Anthropometry—Anthropometrics in ergonomics and lean manufacturing focuses on the human capacity. This branch concentrates and deals with the weight, dimension and strengths of the personnel’s physical body.

By doing so, production will not be interrupted and smooth pacing of manufacturing is attained. Workers with weaker capacities will be assigned to handle works and equipments that they can surely handle, while the stronger workers will be given jobs using machines that fit their physical capacity.

Biomechanics—Like anthropometry, biomechanics in ergonomics and lean manufacturing deals with the human body, but this time, human movement and its mechanical forces are closely looked at.

In Biology, you know that motions and movements of the human body burn energy. By conserving body energy and allocating them for activities that will benefit production, manufacturing is boosted.

Physiology— Lastly, physiology in ergonomics and lean manufacturing deals with the anatomy of the human body. Designations and assignments of machines are done by first considering the physical structure of the workers’ human body.

This time, it is not focused on certain body groups like muscles or energy requirements, but the whole body systems, from the physical, to the mental aspects.

Indeed, ergonomics and lean manufacturing are interrelated disciplines. Companies and firms that aim to maximize productivity should take the initiative to adopt and implement ergonomics and lean manufacturing strategies and processes.

Lean Manufacturing Implementation in Facilities

Lean manufacturing is a set of strategies and business approaches that help firms attain the desired level of profitability and competitiveness.

Lean manufacturing are applied in manufacturing facilities that aim to maximize their earnings capabilities by boosting production, maximizing labor resources and reducing expenses and costs.

The key to the success of lean manufacturing is effective implementation and religious adherence to the principles contained in the set of the strategies. Lean manufacturing principally targets companies’ expenses.

By lowering companies’ costs and operational expenses, lean manufacturing serves it purpose and use. That is considered the key to achieving all of the companies’ goals and targets.

Reducing costs leads in generating savings and preventing further negative losses. You know that companies need to lower or trim down their expenses to be able to attain their goals and put up the target profits.

Facilities and lean manufacturing

Lean manufacturing are implemented particularly and especially in facilities and plants where outputs are the principal concern. Because outputs in these facilities are the principal drivers of revenues and income, companies are very keen to maximize their human resources to attain a target level of output production.

Manufacturing companies are very much keen to save on costs. In that regard, lean manufacturing principles and strategies become very helpful to them.

Companies around the world suffer from crunches brought about by the prevailing economic conditions. Because political and energy crises affect and infect the world, companies are becoming more and more keen and anxious to implement innovative and effective techniques to minimize costs.

That is when lean manufacturing sets in. When companies need to improve efficiencies and generate significant costs, they turn to lean manufacturing strategies.

An effective and religious implementation of lean manufacturing techniques can lead to the success and survival of a business organization or company. How? Through the savings and improved level of competitiveness, companies’ profitability are boosted.

There are seven wastes identified by lean manufacturing that are eliminated in facilities and manufacturing plants upon the implementation of the lean manufacturing principles.

The seven wastes and unproductive tasks are as follows: Over production, over processing, transportation, motion, inventory, waiting and scrap and defects.

Such wasteful concepts and manufacturing events are very much self-explanatory so there is apparently no need for this article to expound on each one.

Planning for lean manufacturing implementation

Before implementing lean manufacturing principles and techniques, it will be advisable for a firm to first conduct initial and intensive planning.

Just like when companies are engaging in significant and major projects and initiatives, planning is an important factor in successfully implementing lean manufacturing strategies and principles.

Planning involves the initial consideration and review of the major business aspects and areas that could be affected by the implementation of the lean manufacturing principles.

Planning in lean manufacturing involves the careful and thorough study of the whole facilities and plants that would be covered by the initiative. Lean manufacturing will be more of a success if effective and realistic planning initiatives are first conducted before the final and sure-bet implementation stage.

There are a number of human resources specialists and consulting firms that offer services pertaining and involving lean manufacturing. Even in your locality, for sure you can find these consultants that could help your business.

Costs are inevitable. They are part of the capital and investment requirements in the business. That is why lean manufacturing principles are mostly implemented by companies in their manufacturing facilities.

Reduction of costs and a boost in competitiveness will surely lift up a firm, especially during these dire times, when even a single cent in savings means a lot to companies.

It is recommended that before your company embark on a lean manufacturing initiative, it should first address some concerns and make specific and realistic planning to make the implementation of lean manufacturing schemes really work.

Companies, take heed!

What Makes A Successful Lean Manufacturing Implementation?

Choosing to apply lean manufacturing principles inside your company’s organization is one of the smartest moves for any manager wanting to get ahead in the business. In today’s competitive world, being one step ahead of everyone else is a major advantage. Lean manufacturing can be the turning point for any organization.

Many companies who have tried lean manufacturing have experienced production growth of up to 25%, cost reduction from key areas of the organization and have developed a more personal relationship with the company as an identity. This is due to an effective lean manufacturing implementation plan.

Lean manufacturing implementation planning begins with the executive management. After laying down the departments and areas in production that needs immediate attention, planning for the lean manufacturing implementation begins. Depending on the gravity of one point, say cutting production time to 10%, the steps for achieving it is listed down.

There are a lot of detractors for lean manufacturing implementation. Many say that the principle is easy enough to understand – reducing the seven wastes (overproduction, waiting time, inventory, processing waste, motion, underutilizing people and making defective products) in a company. However, things and money get lost in the actual lean manufacturing implementation.

Because of this creating a planning for the lean manufacturing implementation in a department can be very useful. You can measure the success of the lean manufacturing implementation in quantifiable terms like percentage growth in production time or the cut in production time to meet the predetermined goals of the company.
 
Phases of a lean manufacturing implementation plan

For lean manufacturing implementation to work, it has to run in phases within the company. The first phase is Core Disciplines. It requires all the concerned employees and managers to undergo lean manufacturing training. Once they’ve grasped the concepts and principles of lean manufacturing, they can now make plans for the lean manufacturing implementation in their departments.

When people understand what is required of them to become active members of a unit (the company, in this case), cooperation is easy to achieve. That is why the changes experienced in Phase one of the lean manufacturing implementation are usually dramatic, its results are immediate and the benefits are clear.

Phase two of the lean manufacturing implementation builds on the core disciplines. This means whatever changes have been implemented on the first phase, it is fine tuned in the next one. Systems are placed, as a permanent part of the organization’s routine and training for sustaining those systems is an ongoing process.

The last phase is called Continuous Improvement. After the lean manufacturing implementation throughout the organization, the improvements made by the new systems gradually becomes part of the production process. The improvements may be small but as the months go by, it builds up like compound interest.

Phase three of the lean manufacturing implementation never ends. As long as the plans for lean manufacturing implementation are followed, the company will continue to feel the positive effects of the change. This will mean additional profits for the company through money saved from the cost reductions.

Keys to a successful lean manufacturing implementation

Depending on how effective the plans for lean manufacturing implementation have been to the specific department, there are still a few considerations to take for the plan to be successful.

First is prepare and motivate people. Quality training and recruiting of workers with appropriate skills can help lead an organization to lean manufacturing implementation success. The creation of teams to instill pride in one’s work and organization is very good tool to get the people involved and really care about the company’s growth.

Second, share information with the concerned people or those who are directly affected with the kaizen events and manage expectations by making the goals realistic. When people see that they are part of something important, they become empowered and it makes the lean manufacturing implementation a whole lot easier.

Third is to make an atmosphere of experimentation possible for any person in the organization. Small, calculated risks are allowed but major mistakes may cause the company to close down. It is important to draw the line of between honest mistakes from a corporate blunder.

Fourth is to install realistic performance measures, fair evaluation, and solid reward systems. When everything is manageable, the workload is eased and there are more opportunities to reward good performance.

The success of lean manufacturing implementation rests on the hands of the cooperation of the people inside the corporation. All you need to do is tap into their potential as a major resource and you’ve got it made.

Lean Manufacturing LED Signs

Lean manufacturing processes and systems have required the need for lean manufacturing LED signs or displays to be able to monitor and adjust the process flow within the business systems.

The principles and beliefs of the lean manufacturing system that was created by the Japanese have become accepted worlwide and have been so widespread that chances are a common layman could have heard something about it or are directly involved in some type or form of it.

The idea of lean manufacturing is that a business or company can divide its workforce into possible distinct processes or work cells that can be easily monitored and adjusted. These companies with an active lean manufacturing programs or systems have to understand the need to map and measure the every stage of their available value stream for each product or goods with the aim or objective of eliminating or reducing waste from every system or process.

The use of lean manufacturing LED signs will enhance a company’s lean manufacturing programs. Using lean manufacturing led signs will quickly improve the effectiveness and efficiency of any existing lean manufacturing program by giving the business or company the ability to post the measurements exactly where they are needed most.

Some of the available lean manufacturing LED signs are the following:

1.The Alpha 7120 displaying plant efficiency data.
2.The Alpha 9240 displaying the overall shipping performance.
3.The AlphaVision PC displaying productivity information.

Using lean manufacturing LED signs can help a company to achieve the following targets:

1.About 40% – 50% reduction in the cycle time
2.About 25% – 35% reduction in the set up time
3.About 35% – 45% reduction in the down time
4.About 30% – 40% improvement in over all productivity
5.About 25% – 35% reduction in the WIP
6.About 35% – 45% reduction in the scrap
7.About 40% – 80% reduction in the travel distance
8.About 20% – 30% reduction in the floor space

Companies that are fully engaged in the lean manufacturing programs or systems needs to have lean manufacturing LED signs to be able to achieve results like these.

Key Lean Manufacturing Principles

1.Lean manufacturing define value precisely from the perspective of the end customer.

2.It identifies the entire value stream for each of the product line and eliminates waste.

3.Lean manufacturing makes the value added activities flow.

4.Lean manufacturing provides what the customer needs only when the customer demands for it.

5.Lean manufacturing pursues perfection through its continuous improvement.

The Cornerstones of an Effective Lean Manufacturing Program

1.To create an exciting culture. Using lean manufacturing LED signs will definitely create an exciting and dynamic culture.

2.To empower a participative environment. With the use of lean manufacturing LED signs, employees of business companies can readily participate in the continuous improvement of lean manufacturing processes and flows.

3.To provide and give meaningful visual measurements using lean manufacturing LED signs.

4.To organize a visual and orderly work environment. The use of lean manufacturing LED signs will promote the organization.

5.To encourage a continuous improvement of the learning environment. Using a lean manufacturing LED signs will promote a possible continuity of improvement.

What Are Visual Workplace Solutions?

Manufacturing enterprises have thought about it. How much did they spent on various information systems or equipment just to create great and efficient reports that willl be reviewed after the fact? The use of lean manufacturing LED signs will make the key elements of the various reports to be available to the employees or people that really has a need for them immediately or instantly.

With the purpose of supporting the key principles of lean manufacturing systems and programs, various manufacturers of lean manufacturing LED signs have produced a whole line or family of such lean manufacturing LED signs. These lean manufacturing Led signs are Visual Workplace Solutions or VWS that are designed specifically to be able to deliver key lean manufacturing performance metrics to the people or employees that requires them the most.

The lean manufacturing LED signs and displays are the performance scoreboards and indicators in order to achieve the impressive gains in a lean environment.

Lean Manufacturing LED Signs Performance Scores and Metrics

A business or company must put the right data in front of the employees or the right people and will yield or provide instant and immediate results and will improve the people morale at the same time.

Lean Manufacturing and Six Sigma

Both lean manufacturing and six sigma are management philosophies or tools that help a company eliminate wastefulness in manufacturing and other types of industry.

Because the times are changing, processes advancing and needs intensifying, more and more companies face challenges as regards their efficiency and profitability. And both lean manufacturing and six sigma introduce solutions to these dilemmas, without putting much strain on a firm’s energy and resources.

Lean manufacturing

Lean manufacturing has been proven to significantly aid in the streamlining of operations and reduction of waste. It welcomes the concept of continuously raising the value added to a certain business activity or method via the reduction of the so-called seven wastes: namely, transportation, motion, overproduction, inventory, over processing, scrap and defects and waiting time.

What lean manufacturing does is provide implementing firms with adequate tools to make it in the increasingly competitive global market, which is everyday faster turnaround times, higher quality and lower prices.

Here are some advantages of lean manufacturing:

- lean manufacturing strengthens production processes
- lean manufacuring significantly lower the chain of wasteful activities and resources
- lean manufacturing increases flexibility by improving layouts
- lean manufacturing reduces floor space needs and inventory dramatically, and
- lean manufacturing introduces and implements more appropriate and up-to-date delivery systems

Six Sigma

The six sigma management philosophy, like lean manufacturing, is also tailored to reduce waste, but it is more focused on eliminating waste linked with production method or equipment defects.

The tools under six sigma are used by firms to further improve and develop a company’s products and systems, via the consolidation of engineering, business and statistical data. As with lean manufacturing, six sigma can also be applied to any form of corporation or organization, whether engaged in the services, marketing, design, sales or production industries.

Some advantages delivered by the six sigma management tool:

- six sigma improves and boost a firm’s systems and products
- six sigma reduces the chain of wastes
- six sigma lessens costs by around 50% via self-financed methods
- six sigma easily adapts to changer customer tastes
- six sigma drives growth using the internal resources available to it

What both philosophies do is help firms dramatically increase their productivity by around 75% to 125% because they ensure that no time, energy or resource is wasted in any of the processing levels. To put it in simple terms, both lean manufacturing and six sigma are bent on nipping problems at the bud, or, even nipping problems before they occur.

A vigilant approach to business is what companies need nowadays to be able to cope with the fast changing times. Sure, while some systems have worked for us for decades now, it wouldn’t hurt to try something that is relatively new and proven to be so much better at delivering positive results.

Elements Of The Six Sigma Framework

Management strategies, such as TQC, TQM, and Six Sigma, are distinguished from each other by their underlying rationale and framework. As far as the corporate framework of Six Sigma is concerned, it embodies the five elements of top-level management commitment, training schemes, project team activities, measurement system and stakeholder involvement. 

Stakeholders include employees, owners, suppliers and customers. At the core of the framework is a formalized improvement strategy with the following five steps: define, measure, analyse, improve and control (DMAIC) which will be explained in detail in Section 2.3. The improvement strategy is based on training schemes, project team activities and measurement system. Top-level management commitment and stakeholder involvement are all inclusive in the framework. 

Without these two, the improvement strategy functions poorly. All five elements support the improvement strategy and improvement project teams.  Most big companies operate in three parts: R&D, manufacturing, and non-manufacturing service. Six Sigma can be introduced into each of these three parts separately. In fact, the color of Six Sigma could be different for each part. Six Sigma in the R&D part is often called “Design for Six Sigma (DFSS),” “Manufacturing Six Sigma” in manufacturing, and “Transactional Six Sigma (TSS)” in the non-manufacturing service sector. All five elements are necessary for each of the three different Six Sigma functions. However, the improvement methodology, DMAIC, could be modified in DFSS and TSS. These points will be explained in detail in Sections 2.6 and 2.7.2.2 Top-level Management Commitment and Stakeholder Involvement 

(1) Top-level management commitment

Launching Six Sigma in a company is a strategic management decision that needs to be initiated by top-level management. All the elements of the framework, as well as the formalized improvement strategy, need top-level management commitment for successful execution. Especially, without a strong commitment on the part of top-level management, the training program and project team activities are seldom successful. Although not directly active in the day-to-day improvement projects, the role of top-level management as leaders, project sponsors and advocates is crucial. Pragmatic management is required, not just lip service, as the top-level management commits itself and the company to drive the initiative for several years and into every corner of the company.

There are numerous pragmatic ways for the CEO (chief executive officer) to manifest his commitment. First, in setting the vision and long-term or short-term goal for Six Sigma, the CEO should play a direct role. Second, the CEO should allocate appropriate resources in order to implement such Six Sigma programs as training schemes, project team activities and measurement system. Third, the CEO should regularly check the progress of the Six Sigma program to determine whether there are any problems which might hinder its success. He should listen to Six Sigma reports and make comments on the progress of Six Sigma. Fourth, he should hold a Six Sigma presentation seminar regularly, say twice a year, in which the results of the project team are presented and good results rewarded financially. Finally, he should hold a Champion Day regularly, say once in every other month, in which Champions (upper managers) are educated by specially invited speakers and he should discuss the progress of Six Sigma with the Champions.

It is also the responsibility of top-level management to set “stretch goals” for the Six Sigma initiative. Stretch goals are tough and demanding, but are usually achievable. Some companies set the stretch goal for process performance at 6 sigma or 3.4 DPMO for all critical-to-customer characteristics.  

However, the goals can also be set incrementally, by stating instead the annual improvement rate in process performance.

The industry standard is to reduce DPMO by 50% annually.

(2) Stakeholder involvement

 Stakeholder involvement means that the hearts and minds of employees, suppliers, customers, owners and even society should be involved in the improvement methodology of Six Sigma for a company. In order to meet the goal set for improvements in process performance and to complete the improvement projects of a Six Sigma initiative, top-level management commitment is simply not enough. The company needs active support and direct involvement from stakeholders.

 Employees in a company constitute the most important group of stakeholders. They carry out the majority of improvement projects and must be actively involved. The Six Sigma management is built to ensure this involvement through various practices, such as training courses, project team activities and evaluation of process performance. Suppliers also need to be involved in a Six Sigma initiative.

 A Six Sigma company usually encourages its key suppliers to have their own Six Sigma programs. To support suppliers, it is common for Six Sigma companies to have suppliers sharing their performance data for the products purchased and to offer them participation at in-house training courses in Six Sigma. It is also common for Six Sigma companies to help small suppliers financially in pursuing Six Sigma programs by inviting them to share their experiences together in report sessions of project team activities. The reason for this type of  involvement is to have the variation in the suppliers’ products transferred to the company’s processes so that most of the process improvement projects carried out on suppliers’ processes would result in improvement of the performance.

Customers play key roles in a Six Sigma initiative. Customer satisfaction is one of the major objectives for a Six Sigma company. Customers should be involved in specific activities such as identifying the critical-to-customer (CTC) characteristics of the products and processes. CTC is a subset of CTQ from the viewpoint of the customers. Having identified the CTC requirements, the customers are also asked to specify the desired value of the characteristic, i.e., the target value and the definition of a defect for the characteristic, or the specification limits. This vital information is utilized in Six Sigma as a basis for measuring the performance of processes. In particular, the R&D part of a company should know the CTC requirements and should listen to the voice of customers (VOC) in order to reflect the VOC in developing new products.