Process analysis and lean

Benefit of Intelligent Manufacturing

Improve productivity Reduce Costs Quality control Innovate faster

• Improve OEE • Real-time production • Real-time quality • New business models

• The main driver of monitoring and quality control can allow you to made possible by smart
productivity growth in a control to reduce waste get data points at every products and new
smart factory is the • Predictive maintenance point of your advanced technologies,
capacity to predict and to prevent costly repairs production such as 3-D printing, are
prevent downtime, and and unplanned • Reduce or even only beginning to
to optimize equipment downtime eliminate, customer emerge.
effectiveness and • Higher automation to returns that occur when
maintenance. save labour costs and products do not meet
• Digital technologies can improve throughput specifications.
also help employees • The use of 3-D printers
become more efficient. to achieve faster
prototyping, reducing
the cost of engineering
and accelerating time to
market

https://www.bdc.ca/en/articles-tools/technology/invest-
technology/how-can-industry-benefit-my-business
Process to be optimized
In the jungle, 4 people are fleeing for enemies, who are 60
minutes behind them.
They need to cross a dangerous river with an old rope bridge.
A flashlight (only one available) is needed to cross the bridge,
which supports a maximum of two persons at the same time.
Due to mobility everybody needs a specific amount of time:

• Indiana Jones 5 min.

• James 10 min.
• Mice 20 min.
• Higgins 25 min.
Question: can all of them cross the bridge on time?
Process mapping
Value stream map
A value stream map is a process flowchart plus:
- Information about workflow (in blue)

Taktrate: 20/hr
20/uur

Transport
3 days
dagen
Transport
3 days
dagen

Queue
Wachtrij
Wachtrij
WT: 0.2 hr

Registreren
Register Queue
Wachtrij
Wachtrij Verwerken
Process Ok? Queue
Wachtrij
Wachtrij Verzenden
Send
PT: 2.3 min/j PT: 20 min/j PT: 17.6 min/j
#: 1 WT: 0.2 hr #: 12 5.2%
5.2% WT: 4 hr #: 5
Throughp: 20/hr Throughp: 21/hr Throughp: 17/hr
Cap: 26/hr Cap: 36/hr Cap: 17/hr
Process analytics: process mapping
 Two types of maps:
 As the process actually is: Current State, As-is
 As the process should be: Future State, Should-be
 Symbols are not standardized, but you could use for example:
Preprocessing Activity
Waiting queue or storage
Flow
 Process analytics: analyzing the current state
Rationalize the process:
- Eliminate activities that do not add value:
- Prune options / channels / streams where possible:
combine five databases into one
- Combine tasks in a single location and workstation: do signature check and entry at the
same time
Make the process reproducible:
- Effective work instructions for staff
- Unambiguous routing through the process and priorities (FIFO)
- Effective work environment (clear places for everything, all necessary items within
hand-reach, all mess taken out of the way, effective equipment and facilities):

Capacity and flow design

- Line balancing and design capacity for each task: the capacity in each task should be
appropriate for the workload
Process analytics: optimize the process
 Process analytics: Value Stream Map
WL: 16/hr TP: 16/hr
Step 1 Step 2 Step 3
PT: 6 min PT: 20 min PT: 3 min
WT: 0.3hr #: 3 WT: 0.2hr #: 10 WT: 5hr #: 1
Cap: 30 / hr Cap: 30 / hr Cap: 20 / hr

60 TT = 6 hr
𝐶𝑎𝑝 = 3 × = 30 𝑗𝑜𝑏𝑠/ℎ𝑟
6 Bottleneck

WL Work Load (= demand, takt rate)

PT Processing time
Cap Capacity
WT Waiting time
TP Throughput (= actual output) = min(WL, Capbottleneck)
TT Throughput time =  PTs +  WTs
TE Throughput Efficiency =  PTs / TT
 Process analytics: utilization
WL: 16/hr TP: 16/hr
Step 1 Step 2 Step 3
PT: 6 min PT: 20 min PT: 3 min
WT: 0.3hr #: 3 WT: 0.2hr #: 10 WT: 5hr #: 1
Cap: 30 / hr Cap: 30 / hr Cap: 20 / hr
U: 53% U: 53% U: 80%

𝑇𝑃 16
Utilization: 𝑈 = Cap 𝑈= = 80%
20

• Which resource/process will always have the highest utilization?

• Consider an expensive (fixed cost) resource and a less
expensive one. For which is a high utilization more important?
Why?
• How can we use this idea to make the process more efficient?
 Process analytics: utilization
 Which resource has the highest utilization?
 The resource having the highest utilization is always the bottleneck.

 Utilization and fixed cost of a resource

 Some resources have high fixed costs: expensive equipment, specialists

earning a high salary. Other resources have low fixed costs.

 High utilization reduces unit-costs. Suppose a doctor costs €700 per day. If
the doctor sees 20 patients per day, that is €35 per patient. However, if the
doctor is idle half of the time, and therefore only sees 10 patients per day,
that is €70 per patient.
 Efficient use of resources
 Ensure high utilization of the expensive resources by avoiding that they have

to wait for the cheaper resources.

 In other words: ensure overcapacity for the cheap resources, so that the

expensive resources become the bottleneck.

 Process analytics: utilizations in a hair saloon
 ABS Hair Saloon (ABSHS) is a hairdresser that offers services at a reasonable price
so that there is a virtually unlimited demand (i.e., ABSHS is running at full capacity)
 The service process of ABSHS includes five activities
1. Welcome a guest and offer homemade herb tea (10 minutes);
2. Wash and condition hair (10 minutes);
3. Neck, shoulder, and back stress release massage (10 minutes);
4. Design the hair style and do the hair (25 minutes);
5. Check out the guest (5 minutes).
 Three employees (Anna, Brit and Christine) offer the services in the worker-paced
production line of ABSHS. The assignment of tasks to servers is as follows:
 Anna does Activity 1,
 Brit does Activities 2 and 3
 Christine does Activities 4 and 5
Process analytics: utilizations in a hair saloon

(1) (2) (3) (4) (5)

10 min 10 min 10 min 25 min 5 min

A short fat arrangement

 ABSHS receives customer 8 hours per day, 5 days per week
 Capacity = (60/30) X 40 = 80 customers per week
 Utilization Anna = 10/30 = 33%
 Utilization Brit = 20/30 = 67%
 Utilization Christine = 30/30 = 100%

 To improve the service rate, ABSHS is considering to hire a new

worker (Danielle, who can perform the tasks at the same pace as
the other workers) to help one (and only one) of the workers without
changing the tasks currently performed by each worker.
 Which worker should Danielle assist? Why?
What is the capacity of ABSHS in that case?
Process analytics: utilizations in a hair saloon
Christine

(4) (5)
Anna Brit 25 min 5 min

(1) (2) (3)

10 min 10 min 10 min
(4) (5)
25 min 5 min

 What is the capacity of ABSHS in that case? Danielle

(1) (2) & (3) (4) & (5)

PT: 10 min PT: 20 min PT: 30 min
#: 1 #: 1 #: 2
Cap: 6 / hr Cap: 3 / hr Cap: 4 / hr

 Now Brit is the bottleneck. (Design) capacity is 120 / week.

 Assuming you had the freedom to hire Danielle and to reassign the tasks in any way
you liked, how would you design the tasks (with the objective to maximize capacity
and the constraint that tasks may not be split)?

Anna Christine

(1) (2) (3) (4) (5)

10 min 10 min 10 min 25 min 5 min

(1) (2) (3) (4) (5)

10 min 10 min 10 min 25 min 5 min

Brit Danielle

 What would be a (simpler) alternative?

Process analytics: utilizations in a hair saloon
(1) & (2) & (3) & (4)
& (5)
 What would be a (“simpler”) alternative?
PT: 60 min
A long thin arrangement: #: 4
Cap: 4 / hr
Anna
(1) (2) (3) (4) (5)
10 min 10 min 10 min 25 min 5 min

Brit
(1) (2) (3) (4) (5)
10 min 10 min 10 min 25 min 5 min

Christine
(1) (2) (3) (4) (5)
10 min 10 min 10 min 25 min 5 min

Danielle
(1) (2) (3) (4) (5)
10 min 10 min 10 min 25 min 5 min

Why choose for this alternative as opposed to the setup at the start?
 Process analytics: product layout
 Advantages of a long thin arrangement
(requires a multi-skilled workforce)
 Controlled flow of materials or customers, easier to manage.
 No synchronization issues, less waiting time.
 More efficient operation, if each stage is only performing a small part of the total
job, the person at the stage will have a higher proportion of direct productive
work as opposed to the non-productive parts of the job (wastes), such as
picking up tools and materials, and in the hair saloon case: chitchatting.
 Advantages of a short fat arrangement
(specialization)
 Each stage can become more efficient in performing their tasks.
 More flexible to deal with variations in products/requirements.
WIP and little’s law
Lean vs. fat processes: WIP control

Inventory (= stock): materials or goods waiting to be processed or sold.

WIP (work-in-process): all materials or goods in the production process.

Suppliers Customers

Step 1 Step 2 Step 3

Raw materials Buffer Buffer Finished goods

inventory inventory

WIP
Consulting hours at a dentist’s: what are WIP in this process?
What is the disadvantage of large inventories and high WIP? What is the benefit?
 Lean vs. fat processes: WIP control
Road construction
The municipality plans construction work in a major district (reconstruction of
roads and tram tracks). Work consists of 3 tasks per project. Each task is 1
week’s work. During the work, the roads are closed, so throughput time should
be minimized. Comment on the planning below.
Week: 1 2 3 4 5 6 7 8 Throughput time
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
Project I 1 2 3 42
Project II 1 2 3 23
Project III 1 2 3 22
Project IV 1 2 3 31
Project V 1 2 3 19
Project VI 1 2 3 20
Project VII 1 2 3 21
Project VIII 1 2 3 27
Project IX 1 2 3 20
Project X 1 2 3 20
Project XI 1 2 3 27
Project XII 1 2 3 20
Project XIII 1 2 3 25
Project XIV 1 2 3 23
WIP: 1 2 3 4 5 5 6 6 6 7 8 8 8 9 10 11 12 13 14 14 14 13 12 12 11 11 11 11 11 10 9 9 9 9 8 7 6 5 4 3 2 1 0
 Lean vs. fat processes: WIP control

Fat planning
This way of working follows a “push” mentality: work is pushed in
the pipeline. “Push” planning results in high average WIP and long
throughput times, and often in chaotic and hectic processes.
WIP (work in process) costs money:
- Working capital, obsolescence, damages and storage (for
material goods).
- Throughput time and waiting time (administrative processes).
- Nuisance (construction work).
 Lean vs. fat processes: WIP control
Lean planning is based on a “pull”-mentality: a drive to complete projects, instead of
starting projects.
In a lean process, the amount of WIP is controlled, for example by applying a WIP-cap of 3.
This means that it is not permitted to work on more than 3 projects simultaneously. To start
a new project, first a running project must be closed.
Week: 1 2 3 4 5 6 7 8 Throughput time
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
Project I 1 2 3 5
Project II 1 2 3 8
Project III 1 2 3 8
Project IV 1 2 3 10
Project V 1 2 3 7
Project VI 1 2 3 7
Project VII 1 2 3 7
Project VIII 1 2 3 7
Project IX 1 2 3 10
Project X 1 2 3 7
Project XI 1 2 3 9
Project XII 1 2 3 3
Project XIII 1 2 3 6
Project XIV 1 2 3 4
WIP: 1 2 2 3 3 3 3 3 3 2 2 2 3 3 3 2 3 3 2 1 2 3 3 2 2 3 3 3 3 3 3 2 2 2 2 1 1 2 2 2 2 1 0

25
 Week: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Throughput time
Project I 1 2 3 42
Project II 1 2 3 23
Project III 1 2 3 22
Project IV 1 2 3 31
Project V 1 2 3 19
Project VI 1 2 3 20
Project VII 1 2 3 21
Project VIII 1 2 3 27
Project IX 1 2 3 20
Project X 1 2 3 20
Project XI 1 2 3 27
Project XII 1 2 3 20
Project XIII 1 2 3 25
Project XIV 1 2 3 23
WIP: 1 2 3 4 5 5 6 6 6 7 8 8 8 9 10 11 12 13 14 14 14 13 12 12 11 11 11 11 11 10 9 9 9 9 8 7 6 5 4 3 2 1 0

Week: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Throughput time

Project I 1 2 3 5
Project II 1 2 3 8
Project III 1 2 3 8
Project IV 1 2 3 10
Project V 1 2 3 7
Project VI 1 2 3 7
Project VII 1 2 3 7
Project VIII 1 2 3 7
Project IX 1 2 3 10
Project X 1 2 3 7
Project XI 1 2 3 9
Project XII 1 2 3 3
Project XIII 1 2 3 6
Project XIV 1 2 3 4
WIP: 1 2 2 3 3 3 3 3 3 2 2 2 3 3 3 2 3 3 2 1 2 3 3 2 2 3 3 3 3 3 3 2 2 2 2 1 1 2 2 2 2 1 0
Lean vs. fat processes: WIP control
Little’s Law
Throughput time (TT) equals average WIP level divided by the
throughput rate (TP):
WIP
TT =
TP

If WIP is kept low, the throughput times will be short.

In the example:
Fat: Average WIP = 8.1, while TP = 0.333 project / week  TT = 24
weeks.
Lean: Average WIP = 2.3, while TP = 0.333 project / week  TT = 7
weeks.
 Lean vs. fat processes: Control of WIP
A totally lean process is an ideal.
1 2 3 4 5 6
1 2 3 4 5 6 Current process: too much fat
1 2 3 4 5 6
1 2 3 4 5 6 (buffers and slack).
1 2 3 4 5 6
1 2 3 4 5 6

1 2 3 4 5 6 Optimized process: just the right

1
1
2 3 4 5 6
2 3 4 5 6 amount of fat (buffers and slack) to
1
1
2 3 4 5 6
2 3 4 5 6 deal with disruptions and variability.
1 2 3 4 5 6

1 2 3 4 5 6
1 2 3 4 5 6 Lean process: no buffers and slack.
1 2 3 4 5 6
1 2 3 4 5 6
1 2 3 4 5 6
1 2 3 4 5 6

By systematically eliminating disruptions and variation, the

optimal amount of fat becomes smaller and smaller, and one
can approach the ideal of a completely lean process.
 Process variation

 Variation in demand: peak and off-peak periods:

 High variation: induces a speed (fast responsiveness) vs. cost (high utilization) trade-off.
 The effects of process variability
https://www.youtube.com/watch?v=Rryu85BtALM
Key learning point (“The curse of variability”):

Without variability it may be possible to

achieve design capacity.
But especially if utilization is near full
capacity small variations lead to
 resources sometimes have to slow
down or even come to a standstill
(idle time);
 jobs evolve slower than necessary
through the process;
 effective capacity is lower than
design capacity.

These losses are larger to the extent that variability is larger.

 The effects of process variability
 Variation in processing times, demand, punctuality of clients, random
outages and problems with equipment,
 results in idle time for the resources,
 and thus, their capacity is underused (low utilization),
 unless there is a buffer of WIP on stand-by (a queue of work waiting
for processing, a waiting list, or an inventory of semi-manufactures).

Step 1 Step 2 Step 3

PT: 3 min PT: 3 min PT: 3 min
#: 1 #: 1 #: 1
Cap: 20 / hr Cap: 20 / hr Cap: 20 / hr

How many jobs per hour can this process handle?

The effects of process variability

10
11
12
13
14
15
16
17
18
19
20
21
22
1
2
3
4
5
6
7
8
9
Step 1: 3 4 5 6 7 8 9 Average PT: 3 min

Step 2: 2 3 4 5 6 7 8 Average PT: 3 min

Step 3: 1 2 3 4 5 6 Average PT: 3 min

Throughput at step 3: 6 jobs / 22 min = 16.4 jobs / hour

Utilization of step 3: 18 / 22 = 82%.
Step 3
PT: 3 min
#: 1
Effective capacity of a process will be
Cap: 20 / hr
lower than its nominal or design capacity
(depending on process variability).
 The effects of process variability
The effect of outages and problems:
Computer crash in the 8th minute at step 2.

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
Step 1: 3 4 5 6 7 8 9 10 11 12

Step 2: 2 3 4 repair 4 5 6 7 8 9

Step 3: 1 2 3 4 5 6 7

3 3 3 3 3 4 3 3 3 3 3 3 3 4 4 5 5 5 5 5 4 4 5 5 5 6 5 5 6 6 : WIP

Throughput at step 3: 7 jobs / 30 min = 14 jobs / hour

Utilization of step 3: 21 / 30 = 70%

Due to variability:
- WIP accumulates  longer waiting times,
- And/or utilizations will be far below 100%.
Design (Ideal) vs effective (practical) capacity
Theoretical time available Design capacity
(maximum output a
process is designed for)

Time available in practice Effective capacity

(practical maximum output)
Unavoidable losses: change-overs,
regular maintenance, waiting for other resources, …

Loading time Overcapacity

Idle time because no work scheduled

Actual output
Valuable operating time
(throughput)
Performance losses: breakdowns,
yield losses (rework and scrap), speed losses, …
In industry: Overall Equipment Effectiveness
In services: Total Team Effectiveness
The effects of process variability

Mean waiting time

High utilization
but long queues Situation with less variability
Short queues
but low utilization
Same utilization,
better service level
0% 100%
Utilization Same service level,
higher utilization

Substantial variability aggravates the

trade-off between low utilization 0% 100%
(= excess capacity) and long waiting
time (= poor service).
Process variability
High utilization
but much congestion

Mean WIP
Situation 1:
High utilizations  much congestion 
high WIP levels and long throughput times

0% 100%
Utilization
Station 1 Station 2
PT: 3 min PT: 3 min
DCap: 20 / hr DCap: 20 / hr
WIP builds up

Station 1:

WIP buffer:
Station 2:

Station 2 nearly fully utilized

Process variability

Mean WIP
Situation 2:
Little congestion
Excess capacity  low utilization  low but low utilization
WIP levels and short throughput times

0% 100%
Utilization
Station 1 Station 2
PT: 3 min PT: 1.5 min
DCap: 20 / hr DCap: 40 / hr

Note how workstation 2 is frequently starved (is idle for lack of work), and thus has a low utilization.

Station 1:

WIP buffer:
Station 2:
 Question: queuing for coffee
• John owns a small coffee shop. He wants to know the average
number of customers in his coffee shop to decide whether he needs
to add more space to accommodate more clients. Currently, his shop
can accommodate no more than eight customers.
• John measured that on average, 40 customers arrive at his coffee
shop every hour. He also determined that on average, a customer
spends around 6 minutes in a store.
• Should John expand his shop?
 Question: queuing at the airport
• At the airport you have to check-in your bag at the counter.
There will be 5 open counters during peak hours. Check-in of the
bags takes on average 10 minutes per customer. The manager
also observed on average (for all counters and waiting line
combined) a total of 15 people.
• How long is the average time each customer spends for check-in
during peak hours?
• How long is the average waiting time each customer spends for
check-in during peak hours?
Hint: use little’s law
More example
At the dentist …
Customers wait in a waiting room. An assistant summons them for an
intake (which takes 3 min. on average). There are 2 assistants. Some 20%
of customers is adviced to have an X-ray exam. This is done by the X-ray
operator. Making an X-ray takes about 10 min.
After the intake, and possibly after the X-ray, customers are shown to one
of three chairs, and the assistant prepares the customer for the
examination (7 min.). After the preparation is done, the customer waits for
the dentist. The examination by the dentists takes 10 min. on average.
Thereupon, the customer seeks one of the assistants to make a follow-up
appointment and check-out (4 min).
There are about 45 clients per day. Working hours are 8 hours / day.
Optimizing consulting hours

Process: consulting hours of a dentist.

A) Make a process map, and indicate throughput (in
clients/ day) in between process steps.
B) Calculate capacities and utilizations of the dentist,
assistants and X-ray operator.
C) What is the bottleneck for process throughput?
D) How can the bottleneck be maximally exploited?
E) How can we subordinate other resources to improve
the throughput at the bottleneck?
 Value stream map
Job
arrivals
Taktrate:
45 / day
45
Check-out
Assistant
X-Ray
Operator PT: 4 min / cust.
9 9
PT: 10 min/cust.
45
Intake
Assistant Preparation Examination
36 Assistant Dentist
PT: 3 min/cust.
PT: 7 PT: 10 min/cust.
min/cust.

Assistants X-ray operator Dentist

PT: 3+7+4 = 14 min/cust. PT: 10 min/cust. PT: 10 min/cust.
#: 2 #: 1 #: 1
Cap: 2×8×60/14 = 67 cust/day Cap: 48 cust/day Cap: 48 cust/day
Ut = 45 / 67 = 70% Ut: 9 / 48 = 19% Ut: 45 / 48 = 94%
Lean and Data Science
for
Smart Manufacturing

✓Lean as a key feature for

smart manufacturing
✓Integrating data science
and lean manufacturing
 Lean
Fast, flexible and low Toyota
Respect cost production production
employees & use system (TPS)
their knowledge Definition lean Achieve flow
Pursuing an ideal state of process of materials,
Smooth performance: in a flow without waste information
processes or disruptions delivering what the or customers
customers.
Collection of
best practices Elimination
Aimed at Deliver what of waste
from Toyota
process flow, customers
throughput, want
inefficiencies
 History
The Toyota Production System
1910 – 1970s: prevailing industrial paradigm was mass production, based
on exploitation of economies of scale and high utilization of resources.
1950s: Toyota builds a lean manufacturing system:
- Operate with minimal inventories, small or no buffers, and short
throughput times (“Just In Time”)
- Less rework by aggressive defect reduction
- Efficient change-overs
- Aggressive elimination of chaos, variability, hectic situations,
disturbances.
 Lean is about eliminating waste
Lean thinking = a mindset
Becoming alert of waste, and
becoming allergic to waste.

We should call
“Just the way it’s always been done”
by a new name:
“Waste”
Benefits of lean services:
- Better responsiveness (shorter lead times and cycle times);
- Higher efficiency (reduced processing times, costs and rework).
 Lean Thinking
Lean process
Jobs and clients flow
smoothly through the
process, no waiting
queues (“just-in-time”).

We should call
“Just the way it’s always
been done”
by a new name:
“Waste”
47 47
Stills taken from ‘Meals per hour’ https://www.youtube.com/watch?v=EedMmMedj3M
Lean operations
• How does lean eliminate waste?
 How does lean eliminate waste?
Causes of waste – muda, mura, muri
• Muda – are activities in a process that are wasteful because
they do not add value to the operation or the customer.
Standard forms of waste.
• Mura – means ‘lack of consistency’ or unevenness that
results in periodic overloading of staff or equipment. Pull,
single-piece flow
• Muri – means absurd or unreasonable. It is based on the
idea that unnecessary or unreasonable requirements put on
a process will result in poor outcomes. 5S, mistake-proofing
Question
Identify Muda, Mura and Muri in the ‘Meals per hour’ video
 How does lean eliminate waste?
Causes of waste – muda, mura, muri

MUDA = WASTE MURA = UNEVENESS MURI = UNDOABLE

Eg: non smooth packing Large boxes =

Shipping air = waste process difficult to handle

These three causes of waste are related. Inconsistent

processes (mura) lead to overburdening resources (muri)
which causes non-value-adding activities (muda).
Still taken from ‘Meals per hour’ https://www.youtube.com/watch?v=EedMmMedj3M
50
 How does lean eliminate waste?
Standard forms of waste
Waste activities consume time, resources and space, but do not contribute to satisfying
customer needs.
• Waiting time: Delays between process steps
• Transport: Unnecessary movement of materials and paperwork.
• Complexity: Non-standardized forms, non-standardized procedures, too
many options, too many channels
• Redundant and duplicative work: Work that is similar or identical to
other tasks in the process, or work that adds no value
• Over production & over-processing: Trying to add more value than what
your customers want to pay for
• Inventory: Buffers, piles of document, job queues: inventory ties up
capital, and creates costs for handling and managing.
• Wasted motion Needless movement of people: walking from desk to
shelves; switching between different computer systems; too many
keystrokes
• Defects & rework: Scrap, rework, iterations.
Lean operations
• Basic tools
 What is a process?
Process step
Task

Task WIP queue

(“Work in Process”)
Task Task
Task
Task Task
Task

Task
Resources Route

Task
Quote by W. Edwards Deming (1900-1993):
“If
you can’t describe what you are doing as a
process, you don’t know what you are doing”
 Lean
Types of data used
Data used in Lean = (mostly) process data
– Workload, work in process, capacities, throughput, taktrate

Objectives
• Identify wastes
• Reveal bottlenecks
• Locate (excessive) variability
 Lean
Basic data tools:
7 quality tools
 How does Lean help Industry 4.0

https://www.bcg.com/publications/2017/lean-meets-industry-4.0
Example
 Future of lean industry 4.0
1. Lean tools can support industry 4.0 and ensure less
waste with automation efforts
2. To achieve largest return on investment, a company
must design innovative ways to combine lean tools
and industry 4.0
3. The combination of Lean and industry 4.0 will
benefit companies

https://www.bcg.com/publications/2017/lean-meets-industry-4.0