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.

---

Faith is the LIFE-blood of Your ACTIONS before the Benefit -

Nothing has changed. Your ancestors lived by faith. Some planted... Read More

Are Your Marketing Pieces Up to Date?

The other day someone asked me for one of my... Read More

Be a Leader - The Importance of Going Home Early!

How you run your business is, of course your business.... Read More

Increasing the Return on Your Training Investment

Insightful leaders and organizations recognize that training is a valuable... Read More

How to Create an Operations Manual

An operations manual can act as a tool for training... Read More

Knowledge Management - Learning Whilst Doing - Facilitating an After Action Review

Introducing a learning culture into organisations can be difficult at... Read More

The Power of the Contract in Performance Management

An essential step in managing the performance of salespeople is... Read More

Optimizing Your Cash Flow With Proper Accounts Receivable Management

Businesses miss on growth opportunities and even close their doors... Read More

Change Behaviors, Change Performance

Every organization is looking for the holy grail of performance... Read More

The 10 Realities of Change

I've seen several articles that begin with lines like "the... Read More

Solving the Problem Solving Problem

The meeting started like a hundred others before. There were... Read More

Problems with Group Decision Making

DECISION BY AUTHORITY RULE: Many groups start out with-or quickly... Read More

Re-Discovery Procedures for Building Effective Management Systems: Phase V

Now we turn the corner to our final phase: Re-Discovery.Last... Read More

Increase Productivity: Five Powerful Actions

How can you make the best use of your energy... Read More

The Four Key Steps In Hiring And Keeping Top People

"When you hire the best, the rest is easy!" We... Read More

Employee Success! - 7 Ways Feedback Works

By sharing how well you are doing and how well... Read More

Performance Reviews That Actually Improve Performance

Employee performance reviews are one of the most dreaded tasks... Read More

Steps in Using the Critical Incident Technique

STEPS IN USING THE CRITICAL INCIDENT TECHNIQUE:1) The incident. Read,... Read More

Try It Out On Your Team First

Wow! You're brilliant! You have a great idea. You've looked... Read More

Managers Who Spend PR $$ Wisely

If you are a department, division or subsidiary manager, your... Read More

Problem-Solving Success Tip: Measure the Right Things.

Measure the right things. It's not enough just to measure-you... Read More

How to Fire an Employee

One of the most difficult tasks you will face as... Read More

Developing Your Management Style

One thing a lot of us don't do in sales... Read More

Ten Top Ways for Managers to Motivate Their People

So to help start the ball rolling, here are ten... Read More

Writing and Revising Your Life Story

Change is not simple. Why do we repeat behavior that... Read More

Five Ways to Influence Change in Others

Because of my work as a consultant, trainer and coach... Read More

Building Bridges of Communication

Building a 'bridge of understanding' between parties is... Read More

Build Rapport Fast! - Eight Easy Steps

Building rapport is all about creating a relationship, in the... Read More

Getting the Most from Appraisals

Does your organisation have one of those annual 'occasions' that... Read More

Five Key Strategies for Making Your Nonprofit Business More Effective

I love tennis both as a spectator and... Read More

Take This Into Consideration Before You Write Your Mission Statement

What principles should a company keep in mind when developing... Read More

Middle Managers Behaving Badly ? How To Stop This Damaging Your Results

More and more I hear and read about a looming... Read More

Five Days to More Effective Inventory Management

The litany of headaches related to the implementation and on-going... Read More