The book addresses a modern reorientation of Lean, abandoning the classical waste dogma that brings direct efficiency gains and substituting by a way to achieving indirect efficiency in a continuous and sustainable manner. Waste is the output of a process that cannot be of further use, while value is a matter of valuation, a process whose output we conceive to be of further use. Value and waste are not antithetical, they are just not comparable issues. We achieve added value to the modern Lean Enterprise through synergies that bring sustainable economic benefits to the company. Such synergies use the complementarity theory developed by Milgrom and Roberts in 1990 on the principle that we can achieve maximal gains via the joint investment on complement activities and not investing. Complementarity is not something specific to Lean Enterprises; however, Lean Enterprises can benefit the most from such a concept. The reason is that Lean uses the principle of achieving more with less effort. Less effort does not mean the use of fewer resources, but the use of resources in a complementary way in order to achieve more, rather than using them. Complementarity is a feature by design. Complementarity by design will help modern Lean companies have an easier transition in the digital era and the new world of Industry 4.0.
In this second edition, we have preserved the method of how to achieve Lean and have enhanced it to show how to move towards modern Lean within Industry 4.0 paradigm. However, if a company has not yet made the Lean step, there is no need to make that step first before yielding the benefits. Technology is the key. Modern Lean Enterprise strengthens out of the old paradigm into the new one of Industry 4.0. Because of evolution, such an enterprise achieves optimal technological complementarity necessary for synergies that sustain increasing profits.
Author(s): Alexander Tsigkas
Series: Management for Professionals
Edition: 2
Publisher: Springer
Year: 2022
Language: English
Pages: 303
City: Cham
Foreword to the Second Edition
Preface
Acknowledgements
Contents
Abbreviations
1: The Modern Lean Enterprise
1.1 The Short Answer
1.2 A Comprehensive Answer
1.2.1 Focus: Creating Complementarities
1.2.2 Purpose: Indirect Efficiency
1.2.3 Method: Lean Flow
1.2.4 Frame: Flow in Internal Logistics
1.3 Overview of the Book
References
Part I: Rising of the Digital Economy
2: The Displacement of the Economy
2.1 A New Social System of Production
2.2 Organisation in the Post-Mass Production Era
2.2.1 Open Innovation and Customer Born Value
2.2.2 Variability and Experimentation
2.2.3 Tolerance to Mistakes
2.2.4 Dynamic Equilibrium
2.2.5 Emerging Characteristics
2.3 Review of Lean Thinking
References
3: The Post-Industrial Factory
3.1 Introduction
3.2 Modern Way of Production
3.3 Value-Adding Communities
3.4 The Evolution of Mass Customisation
3.5 Mass Customisation
3.6 Theory of Mass Customisation
3.7 A Case Study from the Furniture Industry
References
Part II: Lean in Theory
4: Principles of Lean Production
4.1 Introduction
4.2 The Road of Toyota to the West
4.2.1 Continuous Improvement and Kaizen
4.2.2 Respect for People
4.3 Modern Perception on Waste
References
5: Lean Flow: A Method
5.1 Introduction
5.2 Lean Flow Typology
5.3 Basic Pillars of Lean Flow
5.3.1 Working Capital
5.3.2 Cost of Production
5.3.3 Quality
5.4 Lean Flow in Production
5.5 Lean Work Flow
5.5.1 The Steps of the Method
5.5.2 Lean Flow in Machines Environment
5.5.3 Lean Flow in Spare Parts
5.6 Lean Material Flow
5.6.1 Design of the Pull Mechanism
5.6.1.1 Calculation of Material Kanban Quantity
5.6.1.2 Calculation of Production Kanban Quantity
5.6.1.3 Planning of Production-Kanban
5.6.1.4 The Need of RIP Areas
5.6.2 Material Fitness for Pull Mechanism
5.7 Lean Logistics
5.7.1 Lean Flow in Internal Logistics
5.7.2 Lean Flow in External Logistics
5.7.3 Lean Logistics and Lean Value Stream
5.8 Lean Flow in Purchasing and Procurement
5.8.1 Materials Requirements Planning
5.8.2 Replenishment Strategy of Lean Inventory
5.8.3 Relations with Lean Suppliers
5.9 Integrated Demand and Supply Management
5.9.1 Demand Planning and Agility Borders
5.9.2 Planning of Lean Agility
5.9.3 Smoothing Daily Production in Mix and Volume
5.9.3.1 Based on the Toyota Philosophy (TPS)
5.9.3.2 Based on Lean Flow
5.9.4 Production Linearity
5.10 Change of Engineering Specifications
5.11 Lean Flow in Cost Accounting
5.11.1 Economic Efficiency to Customer Demand
5.11.2 Product Cost and Lean Flow
5.11.3 Failures of the Non-Lean Cost Accounting
References
6: Successful Implementation
6.1 Features of a Successful Implementation
6.1.1 Product Synchronisation Flows
6.1.2 Sequence of Events
6.1.3 Designed Capacity
6.1.4 Materials
6.1.5 Facilities
6.2 Results from a Successful Implementation
6.2.1 Measurements Suggested for Performance and Flow Improvement
6.3 ERP Systems and Lean Flow
6.4 Organisation in a Lean Environment
References
7: Modern Lean Thinking
7.1 Introduction
7.2 Complementarity and Synergies
7.3 Process and Material Complementarity
7.4 Digitisation
References
Part III: Lean in Practice
8: Lean Factory
8.1 Introduction
8.2 Lift Trucks
8.2.1 One-Piece Flow From Painting to Final Assembly
8.2.1.1 Targets of the Phase
8.2.1.2 Way of Creating Flow
8.2.1.3 Calculating the Number of IPK
8.2.1.4 Sequencing of Voluminous Parts in the Painting Booth
8.2.1.5 At the Powder Painting Booth
8.2.1.6 At the Final Assembly of the Forklift
8.2.2 One-Piece Flow in Mast Assembly
8.2.2.1 The Way to Flow Creation and Operation
8.2.2.2 Design of a Pull Mechanism Kanban for the Production of Rods
8.2.2.3 Standard Rods
8.2.2.4 Special Rods
8.2.2.5 In Welding
8.2.2.6 In Painting
8.2.2.7 In Final Assembly
8.2.3 Epilogue
8.3 Coffee Machines
8.3.1 Audit Report
8.3.1.1 Response and Associated Inventory Savings
8.3.1.2 Working Capital Efficiency
8.3.1.3 Return on Assets
8.3.1.4 Manufacturing Floor-Space Consolidations
8.3.1.5 Labour-Based Overhead Allocation and Focus on Productivity
8.3.1.6 Impact on the Marketing Inventories
8.3.1.7 Efficiency of the Supply Chain
8.3.2 Epilogue
8.4 Air Conditioning Units
8.4.1 Redesign and Resupply of Lean Flow Lines
8.4.2 The Secrets of Managing Demand and Supply
8.4.3 Constraints on the Full Exploitation of Lean Flow
8.4.4 How Not to Achieve Low Cost
8.4.5 Lessons Learned
8.5 Cooling Units
8.6 Furniture
8.6.1 Kanban Implementation
8.6.2 Layout Redesign
8.6.3 Epilogue
8.7 Elevators
8.7.1 Hydraulic Tank Subsystem
8.7.1.1 Further Improvements
8.7.1.2 Problems That Delayed Implementation
8.7.1.3 Conclusions from the Pilot Programme
8.7.2 Piston Subsystem
8.7.3 Subsystems of Hydraulic and Mechanical Chassis
8.7.4 Cabin Subsystem
8.7.5 Electronics Subsystem
8.7.6 Epilogue
8.8 Electricity Supply
References
9: Lean for Industry 4.0
9.1 Introduction
9.2 Towards the Modern Lean Enterprise
9.3 The Way Is Open and Modern
References
Index
