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LEAN MANUFACTURING
PRINCIPLES

NCSU IES LEAP Group Rev 3/04

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The Connection

North Carolina State University


Teaching, Research, Extension and Engagement

College of Engineering

Industrial Extension Service (IES)

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Industrial Extension Service


Lean Enterprise Advancement Program (LEAP)
In-plant applications, manufacturing networks, public
training, Shingo Prize

Advanced Performance and Standards (APS)


FORUMS, QS, ISO, Six Sigma, Project management,
NC Awards for Excellence

Environmental, Health and Safety (EHS)


Training, technical assistance, needs assessment in
ISO, HAZWOPER, HAZMAT, ergonomics and
industrial hygiene

Energy and Facilities Management


Energy usage assessments

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Lean Enterprise Advancement Program


Mission -

Improve the quality, cost and delivery of


North Carolina manufacturing firms to
improve their competitiveness by
understanding and implementing lean
enterprise business systems based on
TPS model.

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The LEAP mission is accomplished


through training

facilitation

manufacturing networks
lean assessments

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LEAN THINKING
Key Principles of Lean Thinking
VALUE - what customers are willing to pay for
VALUE STREAM - the steps that deliver value
FLOW - organizing the Value Stream to be continuous

PULL - responding to downstream customer demand


PERFECTION - relentless continuous improvement
(culture)
--- Lean Thinking, Womack and Jones, 1996

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Defining Lean
Lean is:
A systematic approach to identifying and eliminating
waste (non-value added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.
The MEP Lean Network

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Lean Goals- TPS True North

Zero defects

100% value-add

Lot size of one

Pull of the customer

TSSC

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LEAN MANUFACTURING
Why Become Lean?
PQCDSM
Improve Customer Satisfaction
Increase Sales and Profits
Insure Long-term Health of Company
Survival
Create Sustainable Competitive Advantage

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Typical Results from Lean Conversions

Percentage of Benefits Achieved


0

25

50

75

100

Lead Time Reduction

Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization

Flexibility

Skill Enhancement

Visual Management

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LEAN MANUFACTURING
Where has Lean been successfully
implemented?
Manufacturing

Automotive
Industrial Products
Furniture
Textiles and Apparel
Printing and Packaging
Consumer Products

Service Industries
Military
Healthcare

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Developing a Lean Factory


The Goal and Getting There from Here
The Goal - Lean Throughout the Entire Enterprise
Set Aggressive Improvement Goals
Measurements of Existing Operations
Recognize Current Problem Areas
Apply the Lean Production System Concepts
Commit to the Continuous Improvement Process

Just do it!

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Value Added/Non-value Added

Value-added:

ANY ACTIVITY THAT PHYSICALLY CHANGES THE


MATERIAL BEING WORKED ON (not rework/repair!)

Machining

Knitting

Drilling

Spreading/Cutting

Assembly

Dying

Painting

Sewing

Non-value added:

ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR


SPACE BUT DOES NOT PHYSICALLY CHANGE THE
MATERIAL

Sorting

Stacking

Counting

Checking

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Lean = Eliminating the waste


Value added

8 Wastes
5%

Non-value added

Overproduction
Excess
inventory
Defects
Non-value
added
processing
Waiting
Underutilized
people
Excess motion
Transportation

Typically 95% of Total Lead Time is Non-Value Added!!!

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Value Stream Mapping


A simple diagram of every step involved
in the material and information flows
needed to bring a product from order to
delivery.

Value stream maps can be drawn for


different points in time as a way to raise
consciousness of opportunities for
improvement.
- Lean Lexicon

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- Learning to See

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Lean Production System


Goals - highest quality, lowest cost, shortest lead times

Just-In-Time
continuous flow
takt time/pace
pull system
triggers

Heijunka

Involvement

Jidoka
separate man &
machine work
identify abnormal
conditions
poka yoke

Standardized Work

Kaizen

Stable Manufacturing Process

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Toyotas Philosophy
Customer first
People are the most valuable resource
Kaizen (continuous improvement)
Shop floor focus

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Lean Production System


Goals - highest quality, lowest cost, shortest lead times

Just-In-Time
continuous flow
takt time/pace
pull system
triggers

Heijunka

Involvement

Jidoka
separate man &
machine work
identify abnormal
conditions
poka yoke

Standardized Work

Kaizen

Stable Manufacturing Process

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Stability
The Four Ms
Operations safely carried out with all task
organized in the best known sequence and
by using the most effective combination of
resources
huMans
Materials
Methods
Machines

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Stability
The 5Ss
Sort
Keep only what is needed in your area

Stabilize
A place for everything and everything in its place

Shine
Clean up the workplace

Standardize
Develop system (rules) to maintain what has been done

Sustain
Self discipline to maintain established procedures

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Stability
The 5Ss - Before

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Stability
The 5Ss

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Stability
The 5Ss

Courtesy of National Textiles

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Stability
Visual Controls
Visual Controls are simple signals that provide an
immediate understanding of a situation or condition. They
are efficient, self regulating, and worker managed.
Examples include:
Pictures, diagrams
Color coded dies, tools, pallets
Lines on the floor to delineate storage areas, walk
ways, work areas, etc.
Improved lighting

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Stability
Visual Controls

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Stability

Plant Layout
QC

Raw Stock

Shear

Stamp

Brake

Mill

Weld

Grind

QC

Screw
Machine

Lathe

Shipping

Receiving

Drill

Assembly

Finish

Parts Stock

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Stability

Cellular Layout
1
Lathe

2
Drill

27
Seconds

10
Pack

3
Mill

4
Mill

27
Seconds

9
Inspect

8
Drill

5
Inspect

27
Seconds

7
Test

Market Demand = 220,000 Units Per Year


Takt Time = 27 Seconds

6
Drill

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Stability
Cellular Layout

Courtesy of Duff-Norton, Charlotte, NC

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Stability
Total Productive Maintenance
Total Productive Maintenance (TPM) is a
series of methods to keep equipment running
The goals of the TPM process include:
Develop people who are equipment-knowledgeable
Create well-engineered equipment: building in safety and
quality
Create an environment where enthusiasm and creativity
flourish
Maximize equipment productivity and capacity as
measured by Overall Equipment Effectiveness (OEE)

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Stability
OEE = Availability Performance Efficiency Rate of Quality
Availability

Performance Efficiency

When or how often do you Does your equipment


lose total availability of
start and stop a lot?
your equipment?
Does your equipment run
How long are your setat 100% of its designed
ups?
speed?

Rate of Quality
Do you manufacture
quality products?
Are your processes
repeatable?

Does your equipment


break down frequently?

The Six Big Losses that downgrade Machine Effectiveness:


Related Losses

Related Losses

Setup and
Adjustment

Idling and Minor


Stoppages

Breakdowns

Reduced Speed

Related Losses
Startup
Defects and Rework

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Sample Daily Operator PM


Daily Operator PM

1. Check coolant level through clear Plexiglas

2. Check heat exchanger fans


(strings should be moving)

3. Check servo drive fans


(string should be moving)

4. Check heat exchanger air filter


(change when dark)

5. Check servo drive air filter


(change when dark)

6. Check way lube reservoir


(add when low)

7. Check main motor air filter


(change when dark)

8. Check main motor cooling fan


(string should move)

9. Check mist collector motor and air filter


(change when dark)

10. Check bar feeder hydraulic motor air filter

11. Check bar feeder hydraulic oil level


(add when low)

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Developing a Lean Factory


Summary Stability in Manufacturing
Processes
4Ms
5S
Visual Controls
Plant Layout
Total Productive Maintenance

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Lean Production System


Goals - highest quality, lowest cost, shortest lead times

Just-In-Time
continuous flow
takt time/pace
pull system
triggers

Heijunka

Involvement

Jidoka
separate man &
machine work
identify abnormal
conditions
poka yoke

Standardized Work

Kaizen

Stable Manufacturing Process

www.ies.ncsu.edu/lean

Just-in-Time
Pull System

Pull System is a flexible and simple method of


controlling/balancing the flow of resources.
Eliminating waste of handling, storage, expediting,
obsolescence, repair, rework, facilities, equipment,
excess inventory (work-in-process and finished).

Pull System consists of:


Production based on actual consumption
Small Lots
Low inventories
Management by Sight
Better Communication

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Just-in-Time
Pull System
Kanban
- A signal to indicate when more parts are needed
(Order or Produce)
- Card, empty Bin, In Process Kanban (IPK) on plant floor

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Just-in-Time
Pull System

Courtesy of Ingersoll-Rand Co., Southern Pines, NC

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Just-in-Time
Supermarket Analogy
A carton of milk is removed from shelf
A stock person restocks the empty location,
but only brings what shelf can accommodate
the supermarket combines visual control, pull system,
Kanban, 5S

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Just-in-Time
Quick Changeover (Set-up Reduction)
Single Minute Exchange of Dies (SMED)
a series of techniques for changeovers of production
machinery in less than ten minutes (single digit
minutes)
Set-up Reduction Program Goals
To achieve smaller lots
To maintain consistent quality
To minimize inventory
To reduce lead times
To address frustration of setup personnel

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Just-in-Time
Basic SMED Principles
Identify

internal vs. external

changeover tasks
Analyze

each tasks real

purpose and function


Focus

on no/low cost

solutions
Aim

to eliminate

changeover time

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Just-in-Time
Positioning Pins

Positioning Pins

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Just-in-Time
No/Low Cost Solution: One-Turn Methods
Pear-Shaped Hole Method

Tighten Here

Attach and
Remove
Here

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Just-in-Time
No/Low Cost Solution: One-Turn Methods
Speed Nut

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Just-in-Time
No/Low Cost Solution: One-Turn Methods
Wing Nut Method

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Just-in-Time
No/Low Cost Solution: One-Motion Methods

Cam Method

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Just-in-Time
Quick Changeover
Not quick: Must heat
molds and plates
before changeover
Quicker: Test stand
with hot plates to
pre-heat molds and
plates
Courtesy of Playtex Panama, Santo Domingo, DR

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Just-in-Time
Continuous Flow - Batch Size Reduction

The best batch size is one - one piece flow, or


make one and move one!
Benefits: Reduces WIP, lead time, cycle time,
etc. and improves quality

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Just-in-Time

Batch & Queue Processing


Process

Process

Process

10 minutes

10 minutes
10 minutes

Lead Time: 30+ minutes for total order


21+ minutes for first piece

Continuous Flow Processing


ProcessProcessProcess

12 min. for total order


3 min. for first part

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Just-in-Time
Takt Time = Demand Rate
Takt Time =

Work Time Available


Number of Units Sold

GOAL: Produce to Demand

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Developing a Lean Factory


Summary - Just-in-Time
Pull Systems/Kanban
Point Of Use Storage
Quick Changeover/Setup Reduction
Continuous Flow
Takt Time

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Lean Production System


Goals - highest quality, lowest cost, shortest lead times

Just-In-Time
continuous flow
takt time/pace
pull system
triggers

Heijunka

Involvement

Jidoka
separate man &
machine work
identify abnormal
conditions
poka yoke

Standardized Work

Kaizen

Stable Manufacturing Process

www.ies.ncsu.edu/lean

Jidoka
Quality at the Source
Source Inspection: Operators must be
certain that the product they are passing to the
next work station is of acceptable quality.
Operators must be given the means to
perform inspection at the source, before they
pass it along.

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Jidoka
Quality at the Source

Source
Inspection at
Molding

Courtesy Sara Lee Intimate Apparel,


Villanueva, Honduras

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Jidoka
Bulls Eye
for checking
package size

Courtesy of National Textiles

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Jidoka
Quality at the Source
Samples or established standards are
visible tools that can be used in the cell for
such purposes
Process Documentation defining quality
inspection requirements for each work station
may need to be developed

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Jidoka
Poka-Yoke (Mistake Proofing)
A Poka-yoke device is any mechanism that either
prevents a mistake from being made or makes the
mistake obvious at a glance.
Poka-yoke devices:
- perform well when corrective action involves trying to eliminate
oversights and omissions.
- can reduce the time and cost of informative inspection to near zero.
- used with source inspection, can ensure that proper operating

conditions exist prior to actual production.

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Jidoka
Poka-Yoke (Mistake Proofing)
Examples:

Fueling area of car has three mistakeproofing devices:


1.filling pipe insert keeps larger, leadedfuel nozzle from being inserted
2.gas cap tether does not allow the
motorist to drive off without the cap
3.gas cap is fitted with ratchet to signal
proper tightness and prevent overtightening.

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Jidoka
Poka-Yoke (Mistake Proofing)

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Jidoka
Andon
A visual management tool that highlights the status of operations in an area
at a single glance and that signals whenever an abnormality occurs.

An andon can indicate production status (for example, which machines are
operating), an abnormality (for example, machine downtime, a quality
problem, tooling faults, operator delays, and material shortages), and needed

actions, such as changeovers. An andon can also be used to display the status
of production in terms of the number of units planned versus actual output.
--- The Lean Lexicon

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Jidoka
Andon

Courtesy of Sara Lee Intimate Apparel

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Jidoka
Identifying Problems
When I was asked to attend the general managers meeting the first time,
I was happy to attend because I thought I could say that there were
no problems in my department. And I said so when it was my turn
to report. Then, this General Manager from Toyota looked straight into
my eyes and said, Steve, when you say you do not have a problem, that
is the problem.
At this moment, I realized that in order to succeed in this business,
I have to change my way of thinking totally.
--- From JIT Kakumei no Shogeki by Kiyoshi Suzaki, p. 14.

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Jidoka
Identifying Problems - Trystorming
Before

After

Courtesy of National Textiles

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Jidoka

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Developing a Lean Factory


Summary - Jidoka
Quality at the Source
Poka Yoke
Andons
Effective Problem Solving

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Lean Production System


Goals - highest quality, lowest cost, shortest lead times

Just-In-Time
continuous flow
takt time/pace
pull system
triggers

Heijunka

Involvement

Jidoka
separate man &
machine work
identify abnormal
conditions
poka yoke

Standardized Work

Kaizen

Stable Manufacturing Process

www.ies.ncsu.edu/lean

Standardization
Standardized Work
Establishing precise procedures for each operators work in a production
process, based on three elements:

1.
2.
3.

Takt time, which is the rate at which products must be made in a


process in order to meet customer demand.
The precise work sequence, in which an operator performs tasks within
takt time.
The standard inventory, including units in machines, required to keep
the process operating smoothly.

--- The Lean Lexicon

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Standardization

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Standardization
Standard Work Board

Courtesy of Ingersoll-Rand Co., Southern Pines, NC

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Standardization

Takt Time = 10 seconds

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Standardization
Heijunka
Leveling the type and quantity of
production over a fixed period of

time. This enables production to


efficiently meet customer
demands while avoiding batching

and results in minimum


inventories, capital costs,
manpower, and production lead
---The Lean Lexicon

time through the whole value


stream.

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Standardization
Heijunka Box
A tool used to level the
mix and volume of
production by distributing
kanban within a facility at
fixed intervals. Also
called a leveling box.
A load-leveling box has a
column of kanban slots
for each pitch interval, and
a row of kanban slots for
each product type.

---Learning to See

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Standardization
Paced Withdrawal
The practice of releasing
production instructions to
work areas and
withdrawing completed
product from work areas
at a fixed, frequent pace.
In this type of handling
system, a material
handler, or waterstrider,
performs a route through
a facility at precisely
determined time intervals.

---Learning to See

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Standardization

Courtesy of Duff-Norton, Charlotte, NC

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Standardization
Supermarket
The location where a
predetermined standard
inventory is kept to supply
downstream processes.
Supermarkets are
ordinarily located near the
supplying process to help
that process see customer
usage and requirements.
---Learning to See

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Standardization
Supermarket Pull System

Courtesy of Seamless Textiles, Humacao, PR

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Standardization
Kaizen
Continuous improvement of an entire
value stream or an individual process to
create more value with less waste.
There are two levels of kaizen (Rother and Shook 1999, p.8):
1. System or flow kaizen focusing on the overall
value stream (kaizen for management).
2. Process kaizen focusing on individual processes
(kaizen for work teams and team leaders).
- Lean Lexicon

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Developing a Lean Factory


Summary - Standardization

Standardized Work
Heijunka/Leveling
Paced Withdrawal
Supermarket
Kaizen

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Lean Production System


Goals - highest quality, lowest cost, shortest lead times

Just-In-Time
continuous flow
takt time/pace
pull system
triggers

Heijunka

Involvement

Jidoka
separate man &
machine work
identify abnormal
conditions
poka yoke

Standardized Work

Kaizen

Stable Manufacturing Process

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Involvement
Workplace Practices
Teams
with rotation of highly specified jobs.
Cross trained and multi-skilled employees
who can work many operations within a cell
and even operations in different cells
Continuous improvement philosophy
Process quality, not inspection
Use of participatory decision making
Quality Control Circles, team-based problem
solving, suggestion systems, etc.

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Keys To Success

Focus on the goal- eliminate waste!

Gather baseline information and


measure results

Get everyone involved

Keep it simple

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Reference Materials
Lean Thinking by Jim Womack and Daniel Jones
Lean Production Simplified by Pascal Dennis

Learning to See, Mike Rother, John Shook, The Lean


Enterprise Institute, Inc, 1998.

Decoding the DNA of the Toyota Production System by


Stephen Spear and H. Kent Bowen, Harvard Business
Review, September-October 1999, pp. 96-106

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Lean Enterprise
Advancement Program (LEAP)
www.ies.ncsu.edu/lean

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