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A New Benchmark for Manufacturers: 'Lean Operation Standard' Published by SAE

28 September 1999

A New Benchmark for Manufacturers: 'Lean Operation Standard' Published by SAE
    WARRENDALE, Pa., Sept. 28 -- For the first time, the auto
industry has a common definition for lean operation, as the Society of
Automotive Engineers (SAE) has published the "Lean Operation Standard"
(SAE J4000), a new document which can be used to identify and measure
implementation of lean operation in manufacturing companies.
    According to Roy Trent, director of the SAE's Best Manufacturing Practices
(BMP) Automotive Manufacturing Initiative (AMI), the new SAE J4000 standard
and the incorporation of lean operation can assist manufacturers to achieve
significant cost and time savings through the elimination of waste in an
organization's value stream.
    "Now, automotive and manufacturing companies have a common definition of
'lean' and a yardstick to measure their lean status, as well as a methodology
to compare their operations with the most successful lean operating systems,"
Trent said.  "As SAE expands its focus across the vehicle's total life cycle
-- including manufacturing -- this document is one of many resources that will
be made available to help companies improve operations.  It may also be useful
to automotive suppliers in meeting the continuous improvement program
requirements in QS-9000."
    The SAE J4000 document covers six lean implementation areas:
management/trust; people; information; supplier/organization/customer chain;
product; and process/flow.  It also lists 52 components, which provide
measurable points of reference for successful lean implementation.
    To assist users in interpreting and applying the standard, SAE also has
developed SAE J4001 "Implementation of Lean Operation Users Manual," and a
research report documenting examples of current best practices entitled "Best
Practices in the Implementation of Lean Operation Among Manufacturers."  This
research report represents the first objective and comprehensive study of lean
operations, spanning 12 months and involving lean experts from automakers and
academia.
    SAE is also currently developing a number of other resources -- including
lean assessor training and lean assessor certification -- to support the
standard document.
    SAE J4000 (cost: $25) is available now by contacting SAE, Phone
724-772-7144, Fax 724-776-3087, or e-mail:  publications@sae.org .  Orders are
now being accepted for the soon-to-be-completed research report (SAE RR003)
and SAE J4001.

    Result of Lean Survey
    The new standard, according to Trent, is the result of an on-going SAE's
Best Manufacturing Practices survey program.  Lean operation was chosen as the
focus of the first AMI best manufacturing practices survey last year, after
the vice presidents of manufacturing for six major automakers cited lean
manufacturing as the most important success factor in the competitiveness of
the auto industry for the next several years.
    The SAE J4000 standard evolved from the template created for and used in
the best manufacturing practices survey.  The survey evaluated operations at
companies recognized as lean models:  Donnelly Corp., Freudenberg-NOK, Johnson
Controls Inc., Lockheed Martin Corp., Raytheon Co. and The Timken Co.  These
companies, both from within and outside the automotive industry, were selected
based upon input from automaker executives, industry analysts and academics,
as well as independent research.
    The mission of SAE/BMP's Automotive Manufacturing Initiative, started in
February of 1998, is to identify, document and establish models for a wide
range of best practices currently used for integrated product design and
manufacturing processes that are applicable to the automotive supply chain.
Future studies will be conducted in other key areas including computer
simulation, time-to-market and body technology.
    Funded by the BMP Center of Excellence and SAE, the Automotive
Manufacturing Initiative has gained the support and involvement of a number of
government agencies, universities, auto executives and manufacturing experts.
    The AMI is headquartered at the SAE Best Manufacturing Practices Satellite
Center located in the SAE Detroit Branch office at 755 West Big Beaver Rd.,
Suite 1600, Troy, MI 48084-4900, Phone 248-273-2455.