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Design and Improvement of Service Processes—Process Management  363

        The key objective of lean operation is to eliminate all process wastes and
        maximize process efficiency. The key elements of lean operation include
        the following items:
          • Waste elimination in process
          • Pull-based production system
          • One piece flow
          • Value stream mapping
          • Setup time reduction
          • Work cells
        Now we discuss these key elements in detail.


        10.5.1 Waste Elimination in Process

        In observing the mass production, Tachii Ohno (Ohno 1990, Liker 2004), an
        engineering genius of Toyota and the pioneer of the Toyota production
        system, identified the following seven wastes in production systems:
          1. Overproduction: Producing too much, too early
          2. Waiting: Workers waiting for machines or parts
          3. Unnecessary transport: Unnecessary transporting of moving parts
          4. Overprocessing: Unnecessary processing steps
          5. Excessive inventory: Semifinished parts between operations and
             excessive inventory of finished products
          6. Unnecessary movement: Unnecessary worker movements
          7. Defects: Parts need rework or are scrap
        These seven wastes are called muda, a Japanese term for missed oppor-
        tunities or slack. These items are considered waste because in the eyes of
        customers, these activities do not add desired values to the products.

        In lean operation principles, the seven wastes can be identified mostly by
        the value stream mapping method. The waste caused by overproduction can
        be reduced or eliminated by a pull-based production system. The waste
        caused by excessive inventory, waiting, and unnecessary transport can be
        greatly reduced by one-piece flow and work cells (cellular manufacturing).
        It is often necessary to use a setup time reduction technique to make one-
        piece flow possible. One-piece flow and work cells also make defect
        detection easier. Besides lean operation principles, other techniques, such as
        ergonomics, poke yoke (foolproof), and statistical process control should
        also be applied to reduce the waste caused by defects and unnecessary
        movements.
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