Lean Manufacturing: Business Bottom-Line Based, 1st Edition (Hardback) book cover

Lean Manufacturing

Business Bottom-Line Based, 1st Edition

By John X. Wang

CRC Press

288 pages | 77 B/W Illus.

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Hardback: 9781420086027
pub: 2010-08-12
eBook (VitalSource) : 9780429141034
pub: 2010-08-12
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The delivery of real bottom-line results from manufacturing improvements has proven to be much harder than expected for most companies. TQM, Zero-Defect Manufacturing, and Business Process Re-engineering have dropped off the landscape for taking much too long and failing to deliver the promised results. Lean Six Sigma is now experiencing the same fundamental difficulty. Delineating a quantitative approach, Lean Manufacturing: Business Bottom-Line Based shows you how to revitalize Lean Six Sigma by aligning it with your business’ bottom line and thus delivering results that your executives, business leaders, and customers expect.

Written by an expert who has transformed product design and manufacturing at companies ranging from Maytag and Visteon to General Electric, the book demonstrates that an awareness of manufacturing business metrics is absolutely essential for every lean manufacturing practitioner. The author has seen first-hand the limitation of traditional lean manufacturing driven by business bottom lines. He outlines case studies linking world events and manufacturing efficiency and presents lean manufacturing strategies and techniques designed to accelerate responses to current and future events on the floors of the world’s manufacturing facilities.

Typically, advice on lean manufacturing comes in the form of techniques regarding a particular tool or tool-box, yet the factory floor, like everything in the global community, is profoundly driven by business bottom lines. This book presents a systematic approach to improve business bottom lines through identifying and eliminating waste, and adding value and fulfillment by flowing the product at the demand of the customer.

Table of Contents

Introduction: Five Stages of Lean Manufacturing

Lean Manufacturing

Industrial Dynamics and Bullwhip Effect

Three Toolboxes for Lean Manufacturing

Let’s Play a “Lean” Game: Manufacturing a Gyrocopter

Five Stages of Lean Manufacturing: Business Bottom-Line Based

Put Business Bottom Line First: Transfer Function for Production Cost

Production Transfer Function

Short-Term vs. Long-Term Production Transfer Functions

Short-Term Transfer Function for Production

Transfer Function for Marginal Cost

The Law of Diminishing Returns: Key to Understanding Lean Manufacturing

Transfer Function for Average Fixed Cost

Transfer Function for Average Variable Cost

Transfer Function for Average Total Cost

Transfer Function for Long-Term Cost Analysis

Goal Tree and Success Analysis: From Goal Setting to Successful Goal Setting

Understanding the Voice of Customers: The Essential Elements

Voice of Customers: Relentlessly Customer Focused

Voice-of-Customers Capability: Critical Elements

Voice of Customers’ Role and Responsibilities

Analyzing Voice of Customers: Law of Demand

Maximizing Utility to Customers

Kano Model: Integrate the Elements for Voice of Customers

Balance Production and Demand: Value Stream Mapping

What Are Value Streams?

What Is Value Stream Mapping?

How to Complete Value Stream Mapping

Guidelines for Developing Value Stream Mapping

Kaizen Event Analysis for Value Stream Mapping

Business Bottom-Line Analysis of Value Streams

From Lognormal to Cobb–Douglas Distribution: Lean Production Analysis

Technology: The Production Function

Long-Run and Short-Run Production Functions

Three Stages of Production

Lognormal Distribution

Cobb–Douglas Production Function

Quantifying Additional Profit from Productivity Gains

Total Factor Productivity

Business Cycles and Demand Fluctuations: Time-Critical Analysis and Decision Making

Business Cycles and Demand Fluctuations

Regression Analysis: Understanding Customer Demand Statistically

What Is Time Series Analysis?

Smoothing Techniques


How Demand Fluctuation and “Exogenous Shocks” Influence the Bottom Line

How To Shockproof Your Company: A Lesson from Frank Lloyd Wright

Business Risk Assessment

Risk Quadrant Chart

Develop a Business Risk Management Plan

Risk Assessment Matrix

Lean Production: Business Bottom-Line Based

Approach for Identifying Productivity Improvements

Quantifying Additional Profit from Productivity Gains

Case Study of a Gyrocopter Manufacturer: Improving Profitability

Implement Cellular Manufacturing

Example of Cellular Manufacturing: Organize Gyrocopter Production Equipment into Cells to Reduce Inventory and Process Time

Example of Gyrocopter Manufacturing: Eliminate Intermediate Spooling Operation

Manage Production and Inventory Costs

Theory of Constraints: “The Drum Is a Bottleneck"

Identifying and Exploring Constraints

The Five Focusing Steps and the Continuous Improvement Goal

The General Application of Theory of Constraints to Operations: Drum–Buffer–Rope Approach

Plant Types for Operations

The Thinking Processes for Implementing Theory of Constraints

Learning as Actively Addressing Constraints

Learning to Negotiate the Meaning of Constraints

Accounting Systems for Lean Manufacturing

Case Study: Marion Gyrocopter Corporation (MGC)

Conclusion about the Case Study

Kanban: Align Manufacturing Flow with Demand Pull

Kanban-Based Systems

Why Use Kanban?

How Kanban Works

The Rules for Kanban

Steps for Implementing Kanban

Types of Kanban

Kanban Development

Kanban Design to Achieve Manufacturing System Objectives

Kanban Card Calculation


Jidoka: Implement Lean Manufacturing with Automation

What Is Jidoka?

Ladder Logic: A Tool to Implement Jidoka

Boolean Functions for Ladder Logic

Implement Jidoka Using Ladder Logic

Additional Functionality for Manufacturing Autonomation

Pull System, One-Piece Flow, and Single Minute Exchange of Die (SMED)

Establish a Pull System

Why Use Pull Systems and One-Piece Flow?

Overcome Barriers: Two Old Beliefs

Single Minute Exchange of Die (SMED)

How to Implement Single Minute Exchange of Die (SMED)

Case Study: Flow Management of an Integrated Circuit Packaging Work-in-Process System

Lean Manufacturing Business Scorecards

What Are Lean Manufacturing Business Scorecards?

How Have Lean Manufacturing Business Scorecards Been Evolved?

Lean Manufacturing Business Scorecard for Planning and Policy Deployment

Lean Manufacturing Business Scorecards for Problem Solving and Continuous Improvement

Building the Business Intelligence Strategy



About the Originator

Subject Categories

BISAC Subject Codes/Headings:
BUSINESS & ECONOMICS / Quality Control
TECHNOLOGY & ENGINEERING / Industrial Design / General