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WHAT IS LEANMANUFACTURING?
An Overview
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Lean History 101
Lean Defined & Key Concepts
The Lean Techniques
The Leanest of the Lean
Report Card of Lean in the U.S.A.
Future of Lean
Universities and Lean
TOPICS
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1900 1940 1980 2000
LEAN HISTORY
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The Toyota system is not opposed to the Ford system.
Rather, it is a progressive enhancement--a system
geared to the Japanese market that mass-produces insmall lots with minimum stocks.
Shigeo Shingo
Notable Quote
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Toyota Production System Pull ManufacturingJust-In-Time World Class Manufacturing
Lean Manufacturing
JIT/TQC/EI/TPM
Short Cycle Manufacturing
One-Piece-Flow
Cellular Manufacturing Demand Flow Manufacturing
Stockless Production Focused Flow Manufacturing
Agility Value Adding Manufacturing
Group Technology Time Based Management
Synchronous Flow Manufacturing End-Lining Operations
Continuous Flow Manufacturing
MANY NAMES, BUT THE SAME CONCEPT
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Lean Defined & Key Concepts
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A cookie-cutter approach to improvement.
Companies must apply appropriate Lean principles
for their industry and specific company situation.
Something that a company does once.
Lean is NOT an end point; it is a never ending
improvement process. Lean is a journey.
LEAN IS NOT
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A systematic approach to identifying and eliminating waste(non-value-added activities) through continuous improvement byflowing the product at the pull of the customer in pursuit ofperfection
--The MEP Lean Network
DEFINING LEAN
ANOTHER DEFINITION
A manufacturing philosophy that shortens the time line betweenthe customer order and the shipment by eliminating waste (non-value-adding activities).
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KEY CONCEPTS
Waste Reduction
Lead Time Reduction
Variation Reduction Product Flow
Pull of the Customer
Continuous Improvement
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Value is added any time we physically change ourproduct towards what the customer is buying.
If we are not adding value, we are adding cost orwaste.
Lean Manufacturing drives the systematicelimination of waste.
Value-Added Time : MinutesTime in Plant : Weeks
ORDER CASH
KEY QUESTION Are my customers willing to pay for this ????
VALUE ADDED
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Overproduction
Defects
Non-value added
processing Waiting
Underutilizedpeople
Excess motion
Transportation
Excess inventory
Typically 95% of Total Lead Time is Non-Value Added!!!
Value added
5%
Non-value added
LEAN = ELIMINATING THE WASTES
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Poor
Long Set-ups Plant Layout Scrap Downtime
Long Supplier Process Lack of Poor Unlinked
Lead-times Imbalances Training Tooling Schedules
No Unclear Poor Improper
Standardization Specifications Housekeeping Reward System
Raw FinishedMaterial Product
Inventory Level
INVENTORY HIDES PROBLEMS
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Poor
Long Set-ups Plant Layout Scrap Downtime
Long Supplier Process Lack of Poor Unlinked
Lead-times Imbalances Training Tooling Schedules
No Unclear Poor Improper
Standardization Specifications Housekeeping Reward System
Raw FinishedMaterial Product
Inventory Level
REDUCING INVENTORY WITHOUTSOLVING PROBLEMS
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Look at the service(s) that you provide. Review each activity.
Is the activity adding value?
If YES If NO
Is this the best way to do it? Can it be eliminated?
If not, can it be reduced?
NOTES: Be sure to include all the wasteful activities that occur occasionally.
Remember Value is defined by the CUSTOMER.
LEAN THINKING: VALUE-ADDING ANALYSIS
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Push
Pull
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ProcessB
ProcessA
Fin.Goods
RawMatl
Supplier Customer
PartFlow
ProcessC
PUSH SYSTEM
Information Flow
WIPWIP
Execution - Parts completed to schedule without any downstream considerations
Replenishment - Based on projected demand (forecasts)
Shop Floor Control - System, transactions, paperwork
Problems - Hidden
Reaction to changes and problems - Through system - rescheduling
Linkage - Operations are NOT physically linked
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KANBAN
Kanban = Signal
Kanban signaling device, kanban, can be cards, carts,golf balls, marked-off spaces (kanban squares), etc.
Signals when to do work
Signals what work to do Signals when not to do work
Controls inventory
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ProcessB
ProcessA Fin.Goods
RawMatl
Supplier Customer
Information Flow
PartFlow
KanbanLocations
ProcessC
PULL SYSTEM
Execution - Parts produced upstream as signaled from the downstream operation or customer
Replenishment - Based on consumption
Shop Floor Control - Automatic - visible
Problems - Exposed - creates urgency
Reaction to changes and problems - Immediate - on-line and visible
Linkage - Operations ARE physically linked
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Process
B
Process
ARawMatlSupplier Customer
Information Flow
PartFlow
KanbanLocations
Process
C
PULL SYSTEM
Make to Order and Engineer to Order Shops, bydefinition, operate by PULL since nothing is produceduntil an order from the customer is received.
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The Lean Techniques
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QuickChangeover
StandardizedWork
Batch Reduction
Teams/Employee Involvement
Quality atSource
5S SystemVisual
Systems
Plant Layout
POUS
Cellular/FlowPull/Kanban
TPM
ValueStreamMapping
Continuous Improvement
LEAN BUILDING BLOCKS
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FUNCTIONAL DEPARTMENTS AND CELLS
FUNCTIONAL
CELL
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10 minutes
10 minutes
Batch & Queue Processing
Lead Time: 30+ minutes for total order21+ minutes for first piece
10 minutes
ProcessA
ProcessB
ProcessC
12 min. for total order3 min. for first part
ProcessB
ProcessA
ProcessC
Continuous Flow Processing
IMPACT OF BATCH SIZE REDUCTION
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CELL ADVANTAGES OVER FUNCTIONAL DEPARTMENT
1. Shorter Lead Time
2. Improved Quality - Quicker problem identification
3. Improved Quality - Less potential rework or scrap
4. Less Material Handling
5. Improved Coordination
6. Reduced Inventory7. Departmental conflicts eliminated
8. Simplified Scheduling
9. Less Space Required
Functional Cellular
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STEPS IN A CHANGEOVER (taken from ShigeoShingos A Revolution in Manufacturing: The SMED
System)
Percent of time of changeoverPreparation, after-process
adjustment, checking, return
to storage of parts, tools,
fixtures, move materials
Removing parts, blades, jigs,etc.; mounting same for next
lot, move materials.
Machine setting,
measurements
Making trial pieces and
adjusting
50%
30%
15%
5%
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KEY BENEFITS OF REDUCING SETUP TIMES
1. Shorter Lead Times2. Decreased Inventory
3. Increased Capacity
4. Improved Flexibility
5. Improved Accuracy/Quality6. Improved Responsiveness to Customers
Analyze
Implement
Standardize
LeanBasicsSMED
Document
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Simple signals that provide an immediate understandingof a situation or condition.
Examples:
Shadow boards for tools, supplies, and safetyequipment
Color coding
Lines on the floor to delineate storage areas, walk
ways, work areas, etc. Marks to indicate correct machine settings
Andon lights
Kanban cards
VISUAL CONTROLS
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VISUAL MEASUREMENT
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Mistake Proofing
Minimizing the opportunities for mistakes tooccur.
When mistakes do occur, preventing mistakesfrom becoming defects.
POKA-YOKE
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Sort (Seiri) - Perform Sort Through and Sort Out, byplacing a red tag on all unneeded items and moving themto a temporary holding area. Within a predetermined timethe red tag items are disposed, sold, moved or given away.
Set in Order (Seiton) - Identify the best location forremaining items, relocate out of place items, set inventorylimits, and install temporary location indicators.
Shine (Seiso) -Clean everything, inside and out.
Standardize (Seiketsu) -Create the rules for maintainingand controlling the first 3Ss and use visual controls.
Sustain (Shitsuke) - Ensure adherence to the 5Sstandards through communication, training, and self-
discipline.
THE 5 Ss
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The Leanest of the Lean
Toyota
Four-year Study of the Toyota Production System
Decoding the DNA of the Toyota Production System by Steven Spear and H.
Kent Bowen, Harvard Business Review, September-October 1999
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QuickChangeover
StandardizedWork
Batch Reduction
Teams/Employee Involvement
Quality atSource
5S SystemVisual
Systems
Plant Layout
POUS
Cellular/FlowPull/Kanban
TPM
ValueStreamMapping
Continuous Improvement
LEAN BUILDING BLOCKS
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The tacit knowledge that underlies the Toyota Production System can be
captured in four basic rules. These rules guide the design, operation, andimprovement of every activity, connection, and pathway for every productand service. The rules are as follows:
DECODING THE DNA OF TOYOTA
1. All work shall be highly specified as to content, sequence, timing,and outcome.
4. Any improvement must be made in accordance with the scientificmethod, under the guidance of a teacher, at the lowest possiblelevel in the organization.
Decoding the DNA of the Toyota Production System by Steven Spear and H. Kent Bowen,
Harvard Business Review, September-October 1999
2. Every customer-supplier connection must be direct, and theremust be an unambiguous yes-or-no way to send requests andreceive responses.
3. The pathway for every product and service must be simple anddirect.
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Report Card
20+ Years of Lean in the U.S.A.
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Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
0 25 50 75 100Percentage of Benefits Achieved
Flexibility Skill Enhancement Visual Mgmnt
THE GOOD NEWS
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Simplified Scheduling Less Transactions Less Variation, More Predictability Forecasts Become More Accurate
Quicker Response To Design Changes
Quicker Market Response Problems Are Visible Product Team Organization - Eliminates Departmental
Conflicts
Facilitates Cross Training Facilitates Alternate Pay Schemes (Pay For Skills) Increased Sales
ADDITIONAL BENEFITS
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THE BAD NEWS?
Im not a defeatist or pessimistic but I think were stillin the early days with regard to figuring out how to dothis lean stuff
James WomackPresident of the Lean Enterprise Institute
Excerpt from IndustryWeekMagazine, November 2001
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Future of Lean
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1. Lean is here to stay due to its Customer orientation.
2. There will be more Lean activity in the areas of Office Lean, andcreating flow in pure Job Shop and Engineer to Orderenvironments.
3. The Silver Bullet mentality will be abandoned by morecompanies, and replaced with a renewed focus on the Leanfundamentals and the development of a true ContinuousImprovement System.
4. 3 above will be accelerated as more Lean versus Leancompetitive battles emerge.
5. Hopefully, Lean will become more evident in Universitycurriculums. (Refer to next section on Universities and Lean.)
THE FUTURE OF LEAN
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Lean Keys to Success
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Prepare and Motivate People Widespread orientation to CI, quality, training and
recruiting workers with appropriate skills
Create common understanding of need to changeto lean
Employee Involvement Push decision making and system development
down to the lowest levels
Trained and truly empowered people
Share information and manage expectations
Identify & empower champions, particularlyoperations managers
Remove roadblocks (i.e., people, layout, systems)
Make it both directive yet empowering
KEYS TO SUCCESS
RECOMMENDED READINGS
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World Class Manufacturing: The Next Decade by Richard Schonberger
World Class Manufacturing: The Lessons of Simplicity Applied by Richard
Schonberger Lets Fix It! Overcoming the Crisis in Manufacturing by Richard
Schonberger
The Machine That Changed the World by James P. Womack and Daniel
T. Jones
Lean Thinking by James P. Womack and Daniel T. Jones
Becoming Lean by Jeffrey Liker
Lean Transformation by Bruce A. Henderson and Jorge L. Larco
The Goal by Eli Goldratt
The Race by Eli Goldratt
The New Manufacturing Challenge: Techniques For Continuous
Improvement by Kiyoshi Suzaki
RECOMMENDED READINGS
RECOMMENDED READINGS
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The Human Side of Just-In-Time: How To Make The Techniques Really
Work by Charlene B. Adair-Heeley
Fast Track to Waste-Free Manufacturing by John W. Davis Visual Systems by Gwendolyn D. Galsworth
A Revolution in Manufacturing: The SMED System by Shigeo Shingo
Quick Changeover for Operators:THE SMED SYSTEM created by The
Productivity Press Development Team
SET-UP TIME REDUCTION by Jerry W. Claunch
Kaizen For Quick Changeover by Kenichi Sekine and Keisuke Arai
Performance Measurement for World Class Manufacturing by Brian H.
Maskell
Breaking The Cost Barrier by Stephen A. Ruffa and Michael J. Perozziello
RECOMMENDED READINGS
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The End