You must change the organization of tasks, procedures, equipment, and processes from a functional basis to a product-oriented basis. All the resources needed to complete a given product are located close to each other. Focus groups are also called work cells, cellular manufacturing, or simply cells. Note that this shift to cells includes both shop floor and office operations.
You must transform the structure of your organization from hierarchical (with many levels) to flat (with many teams).
You must shift the human resources from being trained in narrowly defined tasks to being cross-trained in a number of operations.
Principle Four
You must change the management of processes from top-down control of individual processes in each department to ownership of the entire delivery process by product teams.
Principle Five
With principles one through four in place, you must replace complex, centralized scheduling and control systems with simpler local planning and scheduling procedures.
Principle Six
With the operations now closer to each other, you no longer need to process an entire batch of each operation before moving it. You must move the parts from one operation to the next as soon as they are completed or in transfer batches that are much smaller than the whole production batch. This means that there is little work-in-process (WIP) in the cell.
Principle Seven
With the right organization in place, teams now must run smaller and smaller production batches while at the same time improving quality and reducing waste of all types.