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Lean Manufacturing

Bob Johnson, CSSBB, CQM, PMPASQ Section-1302 Chair

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Overview

l The Why and What of Lean Thinkingl 8 Categories of Wastel The Tools of Lean Thinking

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Where did Lean Thinking originate?

l Originally started by Henry Ford (1911)l Developed by Taiichi Ohno, Toyota (1942)l Developed in Textile Industry not Automotivel Developed as a response to “slow growth”

economic theoryl Goal: Produce variety cheaply

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Lean Thinking Benefits

l Cost Reductionl Cycle Time Reductionl “Waste” Minimization (Waste Killer)l Elimination of Non-Value Added Activities

Resulting in a more “lean”, agile, quick-response and competitive company

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Why the Emphasis on Lean Now

l Global/Internet Economyl Pressure from customers for price reductionl Fast-paced technological changesl Increased expectations of customersl Continued focus on Quality, Cost and Deliveryl Quality Standards like ISO 9000:2000

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DefinitionLean thinking is aimed at the elimination of wastein every area of production or service including customer relations, service design, supplier networks, service delivery and factory management. Its goal is to incorporate less human effort, less inventory, less time to develop products and services, and less space to become highly responsive to customer demand while producing top quality products and services in the most efficient and economical manner possible.

Adapted from Production System Design LaboratoryMassachusetts Institute of Technology

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DefinitionA 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

Manufacturing Extension Partnership (MEP) Definition

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Definition of Value Added

Value Added

Any activity that increases the fit, form or function of the product or service. (These are things the customer is willing to pay for.)

Non-value added

Any activity that does not add to the fit, form or function or is not necessary. (These activities should be eliminated, simplified, reduced or integrated.)

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Value vs Non-Value BreakoutNon-Valued Addedl Overproductionl Waitingl Transportationl Processl Unneeded Movement of

People/Partsl Excessive Inventoryl Defective Products or

Servicesl Underutilized People

Value Added

Typically 95% of all lead time is non-value added

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Typical Process

Servicel Long Cycle Timesl Process not flexiblel Lots of Wait Time

Manufacturingl Batch Processingl Inventory - Safety

Stocksl Lots of Wait Timel Material inspected at

the end

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Categories of Waste(7 Muda plus one)

l Overproductionl Waitingl Transportationl Processl Unneeded Movement of People/Machinesl Excessive Inventoryl Defective Products or Servicesl Underutilized People

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OverproductionMaking more/earlier/faster than is

required by the next processCauses of Overproductionl Just in case logicl Misuse of automationl Long Process Setupl Un-level Schedulingl Unbalanced workloadl Over Engineeringl Redundant Inspections

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WaitingIdle Time Created by Waiting For …

Causes of Waiting Wastel Unbalanced workloadl Unplanned Maintenance/Computer Downtimel Misuse of automationl Long Process Setup Timesl Un-level Schedulingl Upstream Quality Problems

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TransportationTransporting parts and materials

around the plantCauses of Transportation Wastel Poor Plant Layoutl Poor Understanding of the Process Flow for

Production or Servicel Large Batch Sizesl Long Lead Timesl Large Storage Areas

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Process WasteEfforts that add no value to the product

or service from the customers’ viewpoint

Causes of Process Wastel Product Changes Without Process Changesl Just-in-Case Logicl True Customer Requirements not Clearly Definedl Over-Processing to Accommodate Downtimel Redundant approvalsl Extra Copies/Excessive Informationl Lack of communication

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Unneeded MovementAny movement of people, parts, or

machines that does not add value to the product or service

Causes of Motion Wastel Poor People/Machine Effectivenessl Inconsistent Work Methodsl Unfavorable Facility or Work Center Layoutl Poor Workplace Organization and Housekeepingl Extra “Busy” Movements While Waiting

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Excessive InventoryAny supply in excess of a one-

piece flow through your processCauses of Excess Inventoryl Just-in-Case Logicl Poor Market Forecastl Unbalanced Workloadl Misunderstood Communicationsl Wrong Reward Systeml Unreliable shipments by suppliers

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Defective Products/ServicesInspection, Rework, Scrap of material,

process or productCauses of defectsl Weak Process Controll Poor Qualityl Unbalanced Inventory Levelsl Poor Education/Training/Work Instructionsl Wrong Reward Systeml Product/Process Designl Misunderstood customer requirements

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Underutilized PeopleNot using people’s mental,

creative, and physical abilitiesCauses of People Wastel Old Guard Thinking, Politics, Culturel Poor Hiring Practicesl Unbalanced Inventory Levelsl Low or no investment in Education/Trainingl Wrong Reward Systeml Low pay, High Turn-Over Strategy

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Value Stream Mapping

What are the steps that add value to the process?

l Map the Current Statel Identify Non Value Added (NVA) Stepsl Reduce or eliminate NVAl Map the Future State

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Value Stream Mapping Vs Process Mapping

Helps you visualize the material and information flow

l Simplel Visuall Adds Takt Time (available production time

divided by rate of customer demand) to Process Map

l Adds Information Flow

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Theory of Constraints

Helps you visualize the bottle necks in the process and information flow

l Demand on a resource greater than capacity (backlogs throughout system)

l Subsequent event depend on prior onesl Identify system constraints, use non-constrained

resources, increase capacity, subordinate other resources to constraint, or improve process of constrained resource

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5S-Workplace

A System for workplace organization and standardization

l Seiri – (Sort) Separate needed from the unneeded, get rid of unneeded

l Seiton – (Set in order) Neatly arrange and identify parts for ease of use

l Seiso – (Shine) Clean working environment (house keeping)l Seiketsu – (Standardize) Make all work simple and uniforml Shitsuke – (Sustain) Make it easy to follow the standard work

flow

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Visual Workplace

Placing all parts, production activities and performance indicators out in plain view

l Self-Explainingl Self-Orderingl Self-Regulatingl Self-Improvingl Where what is supposed to happen – does

happen every time

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Batch Size Reduction

A System for making one and moving one for continuous flow

l Best Batch Size is Onel Flexiblel Detect Defects Earlierl Shorter Lead Times

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Quality at the Source

A System for making operators responsible and empowered to ensure quality

l Inspection by Operatorsl Doesn’t move unless acceptable qualityl Visible samples/standards used l Need quality inspection requirements

defined for each work station

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Point of Use Storage

System for storing raw materials where they are needed

l Stored are workstation where usedl Supplier relationship permits frequent, on-

time, small shipmentsl Simplifies Physical Inventory Tracking l Simplifies storage and handling

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Single Minute Exchange of Dies

System for quick changeover to a different product or service

l SMED is changing a process to produce a different product in the most efficiently

l The amount of time between last good part to first good part of next set-up

l Try for under 10 minutes (Bob’s Tire vs Pit Crew)

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Cellular Flow

System for moving equipment or processes in most efficient way

l Physically linking of manual and machine operations

l Looking for most efficient combinationl Maximize value added and minimizing

waste

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Total Productive Maintenance

System to maximize equipment effectiveness and machine life

l Everyone participates in TPM from top executives to shop floor operator

l Involves all departmentsl Eliminate breakdowns, defects and

accidentsl Maximize production system efficiency

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Poka-Yoke (Mistake Proofing)

System to make it more difficult to make mistakes or defects

l Right part goes in on only one wayl Part can only be positioned correctlyl Machine/System controlled (laser eye)l Color coding/buzzer/lights as signalsl Automatic vision system inspection

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Kaizen

System of continual incremental improvement of an activity

l Improve Valuel Reduce Wastel Kaizen Blitz – dedicated process to find

process improvementsl Gemba Kaizen – Close to the action

improvements

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Kanban

System of tickets or signals to order or stage inventory

l Reduces inventoryl Ensures inventory is ordered as neededl Can be used for all resources; materials

equipment, information, reports, etc.l Supplier managed or consignment

inventory is not Kanban

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QUESTIONS