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Showing posts with label Lean Basics. Show all posts
Showing posts with label Lean Basics. Show all posts

Friday, September 5, 2025

DOWNTIME and the Eight Wastes

DOWNTIME and the Eight Wastes in Lean Manufacturing


Acronyms are powerful tools for remembering important concepts, objectives, and processes. In Lean manufacturing, one of the most effective acronyms is DOWNTIME, which represents the Eight Wastes. These wastes highlight the distinction between value added vs non-value added activities and provide a framework for process improvement.

The Eight Wastes: DOWNTIME Acronym

The term DOWNTIME serves as a memory aid to identify the eight

categories of waste that exist in any manufacturing or

service-oriented process:

Letter

Type of Waste

Description

D

Defects

Errors in products or services

that require rework or result

in customer dissatisfaction.

O

Overproduction

Producing more than needed

or earlier than required, leading

to excess inventory.

W

Waiting

Idle time when people,

materials, or machines

are waiting for the next step.

N

Non-Utilized Resources/Talent

Failing to use employees’

skills, creativity, and knowledge.

T

Transportation

Unnecessary movement of materials

or products between processes.

I

Inventory

Excess raw materials,

work-in-progress, or finished

goods tying up capital.

M

Motion

Unnecessary movement of

people or equipment within

a process.

E

Excess Processing

Performing more work or using

more resources than necessary.

These wastes collectively create delays, add costs, and reduce customer satisfaction—hence the fitting acronym DOWNTIME.



Value Added vs Non-Value Added Activities

In Lean manufacturing, every step in a process can be classified

into one of two categories:

  • Value Added Activity (VA): Work that directly creates value for the customer—something they are willing to pay for.

  • Non-Value Added Activity (NVA): Work that consumes time and resources but does not add value from the customer’s perspective.

Research shows that in many organizations, 60–80% of process steps are non-value added activities, meaning most of the time, money, and effort goes into things the customer does not value.



Why Eliminating the Eight Wastes Matters

When processes are filled with waste, the total lead time—the time it takes

to deliver a product or service—becomes much longer than necessary.

By identifying and eliminating the Eight Wastes, organizations can:

  • Shorten lead times and deliver faster to customers.

  • Lower operating costs by reducing rework, inventory, and delays.

  • Increase capacity to handle more demand without adding resources.

Boost customer satisfaction by focusing on quality and value.





Embedding Lean Thinking into Company Culture

The DOWNTIME acronym is more than a teaching tool—it is a practical way to build

awareness of waste across teams.

Embedding Lean principles into company culture shifts

the mindset from traditional “keep busy”

work to one focused on continuous process improvement.

Leaders play a critical role in helping employees understand the difference between value added vs non-value added work and empowering them to reduce the wastes in their daily activities. When organizations invest in developing their people, the impact on efficiency, morale, and profitability can be profound.

Final Thoughts

The Eight Wastes of Lean manufacturing, remembered through the DOWNTIME acronym, highlight how much of our time is consumed by non-value added work. By applying Lean principles and focusing on process improvement, companies can reduce waste, respect their employees’ time, and deliver greater value to their customers—driving both growth and sustainability.

Monday, July 14, 2025

4 Tips for Success When Implementing Lean


Lean Manufacturing is a business improvement philosophy that has developed over many years (as well as a collection of lean manufacturing tools), it is a method to better focus your business on the true needs of the customer to help you prevent waste from being built into your system. When properly implemented, lean manufacturing provides many advantages, which include improving flow (material, people, information, and work) and eliminating waste.

Lean has been around since the late eighties/ early nineties, but despite the enormous popularity of Lean, the track record for successful implementation of the methodology is spotty at best. Companies still make mistakes when implementing Lean.

These mistakes are generally due to simple misunderstandings of the Lean principles, but when something goes wrong, you will not reap the full benefits, and incorrect use of Lean can actually make a situation worse rather than better.

In my experience there are 4 tips for implementing Lean with success:

Create a Strategic Plan Instead of a Project Plan

Lean must first start by deploying a crystal-clear vision all the way down to the entire organization of the company. Companies must determine ahead of time what the vision and direction will be. A proper strategy must assign clear responsibilities and show what resources are to be committed. All employees of the company must clearly understand the company vision and direction and must also understand all KPIs (Key Performance Indicators) and measurements used. Metrics and timelines must be defined. Management must decide what core elements are to be deployed and the order of deployment. They also must determine where to start and how Lean will expand throughout the operation.

Focus on Culture Change

Lean is about people. All successful and sustainable business change starts with top management (leadership team). Culture by design requires changing the way that people think and work. That’s difficult to do, because people get comfortable with the way they are. You must establish a foundation so that change can happen. The definition of ‘win’ has to be shared and understood by everyone.

A new lean culture will not develop unless the organization’s leadership team is willing to model and be the examples of the new behaviors.

Address Business Problems

Don’t blindly copy others. Some companies think they will get desirable effects by applying Lean tools that others have gotten great achievements. Tools do not solve problem but rather people do. It is not about the tools it’s how they are applied. A large number of organizations have failed to produce the desired results from the direct and prescriptive application of Lean tools. The tools themselves have been proven to work in many situations. The difference must then be in how the tools were applied, their appropriateness, but not the tools themselves.

Successful implementation of any Lean tool must be closely related to the management philosophy. So we can’t succeed by imitating and copying practices of others indiscriminately, it must be combined with local culture. It is important to continually reevaluate your lean manufacturing efforts. Even when you take the long-term into consideration, changes in your business plan, demand levels and industry trends can create possibilities to further improve your factory.

Train Everyone

The key to implementing any new idea or concept is training. It must be top down training so that everyone is on the same page. The more understanding of what lean manufacturing is all about, why you are implementing it and the expected benefits from it, the more likely you are to get buy-in.

It is very important that everyone in the company become committed to lean culture. In order to make the culture successful, managers and employees need to be aware of waste within the company and be prepared to attack and eliminate it. Making sure that the employees are empowered to do this, not just pushing the job off on someone else, is imperative in the proper function of lean culture.

Ensuring everyone is on the same page will help to avoid conflict. At the same time, it is important to ensure people have the space in which to think about what improvements they think need making.

Implementing a Lean manufacturing program is a continuous process. The success of one stage builds up the momentum for the next one. Most of the implementation challenges stem from human resistance and incomprehension of advanced work tools. Companies can achieve accelerated success by instilling a culture of change among employees, and can also leverage digital resources to improve data collection, analysis and utilization.

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Wednesday, July 17, 2024

3 Principles and 4 Rules to Remember that Will Guide Your Lean Journey


Lean manufacturing is the continuous improvement methodology of choice for companies around the world. It’s a people-oriented practice that focuses on reducing production lead times within your operations. These practices create a framework that emphasizes eliminating activities that do not add value for the customer, and focuses on reducing cycle, flow, and throughput times.

These Lean principles can be applied to any team, in any organization, in any industry. Practicing Lean effectively hinges on knowing how to apply Lean principles effectively in your business environment. The main thing to remember: Lean management principles focus teams on driving continuous improvement. When Lean is implemented effectively, teams and the processes they use to deliver value to customers grow stronger over time.

For me there are 3 key principles that guide the Lean Philosophy:

Lean Principle #1 – Make to Use (the ideal Target Condition, “True North”)

A Lean process emphasizes getting the right things to the right place at the right time in the right quantity.  These Lean ideals are a vision for your organization. They provide ‘True North’ direction toward which every member of your organization is commonly striving, and yet may never fully reach.

  • 1x1

        Process parts one at a time ( i.e. not batch processing )

  • On Demand

         Make the exact amount the customer ordered, when it’s ordered.

  • Defect Free

        Product conforms to customer’s specifications and expectations.

  • No Cost

         Look for simple low cost solutions.

  • Immediate

        The “system” should tell you immediately if there is problem.

  • Safe

        Physically AND emotionally

Lean Principle #2 – Eliminate Waste

Lean principles aim to identify the waste found in nearly every business and minimize or completely eliminate it, if possible. Using the acronym “DOWNTIME” reveals the 8 types of waste Lean Manufacturers target:

  • Defects can lead to rework/salvage and scrap. It is arguably the most costly type of waste, especially if a defective product makes it to the customer.
  • Overproduction is making more products than that which is ordered, potentially causing an inventory shortage and wasting labor hours that could be used elsewhere. Additionally, the manufacturer runs the risk of having obsolete inventory if the customer that generally uses the product decides not to order more.
  • Waiting comes in several forms. The most obvious, perhaps, is a line shutdown while waiting for parts or equipment repair. Finally, there is in-process waiting that occurs when an employee has to wait for a machine to process before he or she can take the next step in the process.
  • Not using people’s talents is a waste of their abilities, and it could hold a manufacturer back when it comes to innovation.
  • Transportation happens throughout the manufacturing process, from the supply chain to material delivery and specific production areas.
  • Inventory has five major categories: finished goods, sub-assembly, raw component, office supplies and Maintenance, Repair and Operations (MRO). Obsolete or overlooked inventory can build up in all of these areas, taking up valuable space.
  • Motion includes bending, reaching, lifting and walking. Something as simple as sharing a tool between workstations can lead to a lot of wasted motion in retrieving it.
  • Excess processing happens whenever time is spent on product features that do not impact part functionality. For example, painting a part that won’t be seen is non-essential and excessive, provided it still functions properly without paint.

Lean Principle #3 – People are the Cornerstone

Empowering employees is the ongoing process of providing the tools, training, resources, encouragement and motivation your workers need to perform at the optimum level. When you show an employee you trust them and give them timely information and the authority to find solutions, they will be able to solve problems and provide solutions more rapidly than someone without that empowerment.

  • Engage all human resources toward the effort of reaching True North
  • Provide information:  lack of knowledge is a limiter to waste elimination.
  • Knowledge = Speed (Knowledge is the limiter to waste elimination)

Lean management derives from the Toyota Production System (TPS) where a set of rules provide a structured approach to improvement. They create structure in our systems. Without rules there would be in chaos. Lean rules provide the guidance needed to implement improvement, explaining the “why” behind lean tools and the Six Sigma methodology. Lean rules also help develop new solutions to problems. For everyone in an organization, these rules help structure activities, connect customers and suppliers, specify and simplify flow paths, and bring improvement through experimentation at the right level.

The Principles of the Toyota Production System can be summarized into four basic rules.

Rule 1: All work shall be highly specified as to content, sequence, timing, and outcome.
Specify in advance the exact Content, Sequence, Timing, and Outcome of work.

  • Content (what is being done?)
  • Sequence (in what order?)
  • Timing (how long should it take?)
  • Outcome (what clearly defined measurable results are expected?)

 Establish predictable outcomes for each process so shortfalls and over production are immediately apparent.

Rule 2: Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses.
Interaction between Humans, Materials, and Information should be Clear, Direct, and Binary. No ambiguity.

Create a workplace that is:
     Self-ordering
     Self-improving
     Self-regulating
     Self-explaining

What is supposed to happen, does happen, on time, every time.

Rule 3: The pathway for every product and service must be simple and direct.
Organize for uninterrupted flow with simple, direct paths for work flow. The pathway should not be subject to interpretation on a case-by-case basis. Build in self-diagnostics so when a path is not being followed, it should be obvious and immediately correctable without too much time passing or outside intervention required.

Rule 4: Continuously Improve
Develop leaders who can apply the scientific method to improve anything. Allow improvement to come from the source by those doing the work - as close to the problem as possible. Respond directly to any problem that arises with clear helping/coaching chains. Whenever possible, start as an experiment supported by a coach.

When it comes to using Lean principles in your organization, let these Lean management principles guide you. Embrace the Lean mindset. Consider your options carefully – even if it means making organizational changes to fully support your initiatives. This will lay the foundation for a successful Lean experience.


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Wednesday, March 6, 2024

Exposing The Common Myths of Standardized Work


A couple days ago I posted an article on standard work as a mechanism for facilitating and empowering improvement. By documenting the current best practice, standardized work forms the baseline for kaizen or continuous improvement. As the standard is improved, the new standard becomes the baseline for further improvements, and so on. Improving standardized work is a never-ending process. Standardized work is one of the most powerful but least used lean tools.

Unfortunately, there are many myths regarding standardized work that if followed create a flawed system. To prevent you from falling into this trap I will attempt to debunk several of these myths.

Standard Work Is Permanent

A common misconception is that ‘standardized’ is assumed to be permanent. This is not the case. It’s just the best way we know how to do the work today. Continuous improvement is always encouraged, once the current best method is understood and practiced in order to establish a stable foundation for further improvement.

Standard Work is Self-Created

Some think employees develop their own standardized work. The initial work standard should be developed by engineers (process owners) working with operators who are part of a team. Group leaders and team leaders then have responsibility for training employees on the standard work and soliciting their input. Once the process is operating at some level of stability, employees are challenged to develop better methods, but the methods are always reviewed by others, including management.

Standard Work is a Rigid Framework

Another common myth about standardized work is that many think of a rigid work environment where workers aren’t required to think. This is totally the opposite as I said above. Operators are part of the creation of the work standard and then are challenged to improve these methods. The standard creates a baseline by which improvement can be measured. Ideas should be discussed with group leaders and considered depending upon the consensus and buy-in from other members and shifts. Once consensus is reached then experimentation can be done to determine the effectiveness of the improvement. If it is deemed an effective change then the standardized work can modified and everyone trained in the new method.

Standard Work Reduces Training Needs

It is also believed that with standard work you will know everything about the job and therefore be able to train anyone to do the job. Standardized work is the process used by operators to define their work method through documentation and visual postings. This is often misinterpreted as a fully detailed description of the work and associated standards. Anyone who has read the standard work sheets would see that the work description explains the work elements in basic terms - not nearly enough information to read and fully understand the job. Job Instruction Training (JIT) is the method commonly used in Lean to transfer complete knowledge of a job to a team member. In my experience anyone who believes that a job is simple enough to distill down to a few sheets of paper underestimates the competency level necessary of their employees.

Standard Work Prevents Deviations

Another myth is that with standard work and visual postings employees will not deviate from the standard. This couldn’t be further from the truth. There is nothing in standardized work that will prevent deviation by the operator except the visual awareness of others. The visual reference is utilized by management for monitoring adherence to the standard which is done through periodic and regular audits of the standardized work. To ensure compliance to the standard, it’s necessary to poka-yoke or mistake proof the process to prevent deviation and make excursions highly visible.

Standard Work Only Applies to Shop Floor

Lastly, there are those that believe standard work is only for the shop floor. Standard work has been proven effective in many industries from the military to healthcare and everything in between. In particular, I think this is a technique that management teams must adopt. How we run the business should not be any different than how we do business. In my experience, those organizations that use standard work at the management level are more productive and effective.

Standardizing the work adds discipline to the culture, an element that is frequently neglected but essential for Lean to take root. Standardized work is also a learning tool that supports audits, promotes problem solving, and involves team members in developing poka-yokes. While standard work can be an effective foundation for continuous improvement it is important to recognize that it is not a one-stop shop for all that ails you.


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Monday, March 4, 2024

Standard Work Enables and Facilitates



Standard work is a written description of how a process should be done. It guides consistent execution. At its best, it documents a current "best practice" and ensures that it is implemented throughout a company. At a minimum, it provides a baseline from which a better approach can be developed.

The definition of standard work is "the most effective combination of manpower, materials and machinery". Standard work is the method, and thereby you have the four Ms of manufacturing (manpower, material, machinery, methods). Standard Work is only "the most effective" until the standard is improved.

Standards to a company are like scales and sheet music to a musician. Our team members help develop and maintain standards, which are not static. Standards change as we get better, just as a good band will incorporate chord and melodic variations if they sound good. Thus, standards do not constrain creativity – they enable it, by providing a basis for comparison, and by providing stability, so we have the time and energy to improve.

Standardized work comprises:

  • Content
  • Sequence
  • Timing
  • Expected outcome
It should also contain tests, or red flags, which tell you when there’s a problem. That way, you won’t ship junk. The tests could be physical, such as a torque check on a bolt, or it could be administrative, like a blacked-out template that fits over a standard form and highlights the critical information.

Standard work enables and facilitates:
  • Avoidance of errors, assuring that lessons learned are utilized and not forgotten
  • Team learning and training
  • Improvements to make the work more effective
  • Reduction in variability
  • Creation of meaningful job descriptions
  • Greater innovation by reducing the mental and physical overhead of repetitive or standardized work
Standard work does not preclude flexibility. You can still do a lot of different jobs, and be able to address new problems. Standard work just takes the things you do repeatedly and makes them routine, so you don’t waste time thinking about them.

Standards are an essential requirement for any company seeking to continuously improve. All continuous improvement methods leverage learning to get better results from their business efforts. Standards provide the baseline references that are necessary for learning. A standard operating procedure supplies a stable platform for collecting performance measurements. The standard and its profile of performance yields the information people need to uncover improvement opportunities, make and measure improvements, and extract learning.


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Monday, December 4, 2023

The Foundation of Lean Organization – Purpose, Plan, People, Process, And Performance



The Lean business process improvement methodology is a way of planning and measuring the long-term success in our organization, focused on improving safety, quality, delivery, cost, and employee morale. It seeks to eliminate waste and streamline the delivery of value to the customer. There are dozens of tools associated with the practice of Lean, such as value stream mapping, Kanban, and Gemba walks, all of which are useful and effective.

However, it is important to keep in mind that these tools are deployed within the context of purpose, people, and process. True innovation and value-creation in execution are powered by sharing purpose, careful planning, creative mindsets, dynamic processes, and proven performance. Together they enable both agility and adaptability in today’s complex environment. Together they drive execution excellence.

Purpose: (Task Vs. Mission Driven)

Task driven environments are very checklist heavy, compliance oriented and top-down leadership centric. Purpose driven environments are where team members are inspired by a common mission, vision and values.

Plan: (Individual vs Alignment)

To be successful we need a clear, well-defined plan that everyone knows and knows how their efforts towards that plan will drive success and meaning for themselves and the business as a whole. 

People: (Collaborative vs. Competitive)

Collaborative environments are highly integrated team efforts. Competitive environments are highly independent. Lean starts and ends with people. We seek to create the conditions under which people can achieve their maximum potential. We recognize that great ideas for improvement can come from every level of the organization and that everyone should be provided with the tools that help them contribute.

Process: (Status Quo vs. Innovate)

Status Quo environments live by the motto, “if it ain’t broke, don’t fix it”. These environments are highly predictable and stable. Innovative environments on the other hand are highly flexible and encourage failing fast. Innovative cultures understand the importance of quickly adapting to change.

Performance: (Results focused vs Process Accountability)

Performance is what your team must do to delight customers, both external and internal. We must make sure everyone understands what’s expected, how we’ll measure and monitor it, celebrate the successes and hold ourselves accountable when we fall short.

Purpose, plan, people, process, and performance are the best assets to develop and focus on to drive execution excellence. Purpose drives commitment. Plans fulfills our purpose. People's mindsets and behaviors determine the effectiveness of collaboration. Processes guide interaction forward towards meaningful objectives. Performance is how we hold ourselves accountable and deliver on our commitment to our customers, shareholders, and employees.


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