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    Introduction toLean Manufacturing:

    An ExecutiveOverview

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    Introduction&History

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    3

    Devised Non-Craft Method of Production to Meet Markets Needs

    Henry Ford designed the original massproduction system.

    In the 1920s, the Rouge Complex in

    Dearborn became the benchmark for best-in-

    the-world manufacturing techniques.

    These included just-in-time delivery and

    manufacturing.

    It was replicated in England and Germany,

    and later taken as the model for Toyota City in

    Japan.

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    Broke craft tradition by devising a production method to fill the

    needs of early 1900s society.

    Division of

    Labor

    MASS PRODUCTION

    Goal:

    Economies of Scale

    AmericanMass

    Market

    Precision

    Machine

    Tools

    Fantastic

    Success!

    - Limited Product Variety

    - Flow Production

    Weaving

    LoomsToyota Motor

    Corporation

    Poor VehiclesLittle Success

    1900 1915 1935 WWII

    Greatness of Henry Ford

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    Fords original manufacturingphilosophy (1926)

    Eliminate Waste

    The point is the saving of human labor so that it may be made more

    effective and more valuable.

    Use Continuous Flow Manufacturing

    Synchronization of main & subassembly lines

    Inventory Float to serve outlying factories

    Practice Quality at the Source

    Zero-defect production

    Eliminating need for end-of-line quality checks

    Standardize & Continuously Improve

    We take it as our duty to use the publics money to the advantage of the

    public by pressing always for a better and cheaper product.

    Standards are necessary, but Standardization means nothing unless it

    means standardizing upwards.

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    Mass Production spreads and tries to adapt to changes. Lean Manufacturing

    emerges as the alternative.

    Complex Vehicles & Diverse Customers

    Postwar Boom

    (Mass ideas

    cemented in)

    Emphasis on

    Finance and

    Accounting

    Large-Lot Production

    Automation

    Increasingly ComplexVehicles and DiverseMarket

    U.S. Consumers look

    for smaller cars. Big 3

    Market share decline

    begins.

    Catch up

    with U.S.A!

    TOYOTAPRODUCTION

    SYSTEM

    Small Market

    Few Resources

    Need Cash

    Lousy Quality

    Goals:

    Quality,

    Cost, Lead

    Time,

    Flexibility

    1st Oil

    Shock

    Japanese industry,

    recognizes TPS &

    dissemination begins.

    FantasticSuccess!

    U.S. Quality &

    Productivity Seminars

    Supermarket

    System

    1945 19801973

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    Lean Principles

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    Lean Principles

    People are involved and empowered.

    Elimination of waste

    Just-In-Time Production

    In-Station Quality

    Standardized Work & Continuous

    Improvement

    The Customer Defines value

    Establishes the requirements (pull)

    Total Cost drives performance.

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    GOAL: Maximize Economies of ScaleMaterial

    Ship

    Order CashActual Value-Added Time: Minutes

    Total Time in Plant: Weeks

    Receiving

    Warehouse

    Stamping

    AssembleRepair

    Storage

    Storage

    Weld

    Shipping

    Warehouse

    Mass Production - large lots, pushedahead, an island mentality

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    Goal: Eliminate Waste

    Material

    Stamp

    Store

    Weld

    Assemble

    Stage&Ship

    Pull Pull

    Pull

    Production

    Cards

    MaterialTo fillcustomer

    order

    l

    Time Line

    Reduce the time line by removing non-value added wastes.

    Order Cash

    Pull Pull

    Next Process is the Customer

    Lean Manufacturing

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    JIT: Pull System

    Following processes withdraw what they need when they need it.

    Preceding processes replenish what is taken away.

    Production Cards

    Upstream

    Process

    Downstream

    Process

    Store

    New

    Product

    Withdrawal Cards

    Needed

    Product

    a

    b

    c

    d

    e

    f

    g

    h

    ij

    k

    l

    Wherever Continuous Flow is not possible.

    Pull

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    changeover

    Left Hand

    Right Hand

    Left Hand

    Right Hand

    Right Hand

    Right Hand

    Left HandLeft Hand

    Left Hand

    Right Hand

    Left Hand

    Right Hand

    8 hrs

    changeover

    changeover

    changeover

    changeover

    changeover

    changeover

    changeover

    changeover

    changeover

    changeover

    Change over frequently, even with infrequent shipments

    Risk of unsold goods

    Quality/Cost/Space

    Smooth demand on upstream suppliers

    Approaches the lean ideal of one-piece flow

    JIT: very frequent changeovers infeeder processes

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    2ANDONBOARDA

    L

    E

    R

    T

    S

    T

    O

    P

    Human

    TROUBLE

    2

    A

    L

    E

    R

    T

    S

    T

    O

    P

    DEFECT

    BREAKDOWN

    CHANGE

    Machine

    2

    0

    B. Notify

    Never conceal

    or pass on a

    defect.

    A. A. Stop for

    abnormalities

    Contain / Fix

    ProblemFind & Eliminate

    Causes

    C.

    Respond

    Immediately

    If you are using JIT production, what happens if there is aquality or machine problem?

    In-Station Quality

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    Why In-Station Quality?

    HIGH

    LOW

    COST &

    IMPACT

    ABILITY TO

    FIND &

    ELIMINATECAUSES

    OwnProcess

    NextProcess

    End ofLine

    FinalInspection

    Customer

    Abnormality Found At

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    The role of a Quality Control

    Develop a quality control plan.

    Determine and monitor all inspection standards.

    Establish and control boundary samples.

    Control checking fixtures and calibration standards.

    Manage the introduction of new parts, tooling (sample parts).

    Control the revision and distribution of supplier parts.

    Control change on the floor (monitor in-station quality trends).

    Establish a system for Quality Problem Reporting (QPR).

    Develop a reaction plan for quality issues.

    Encourage problem solving/root cause analysis.

    Provide data on warranty and customer issues.

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    Examples:

    Install flange

    onto part

    Cycle Machine

    Example:

    Walking to get

    parts

    Waiting time

    Examples:

    Pull down

    impact wrench

    Unclamp and clamp

    Categories of Work Motion

    Standardized Work & ContinuousImprovement of Processes

    MOTION

    Work

    WasteValueAdded

    Incidental Work

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    Standardized Work

    Totals

    Standardized Work

    Sheet

    Target Time

    Cycle Time

    Department/Section

    Process

    Part Name

    Part #

    Date:

    Worksheet #

    Opr WGL Sup Maint Eng Safety

    OTHER

    ZERO

    DEFECTS

    Total Prod.

    Maint.

    VISUAL

    FACTORY

    QUICK

    CHANGE

    OVER

    QUALITY

    CHECK

    DELTA

    CRITICAL

    SAFETY/

    ERGO

    IN-PROCESS

    STOCKStep #

    Work

    Steps

    Time Elements

    Manual Auto Walk

    Possible

    Hazards

    Recommended

    Safe Job

    Procedures

    Work Sequence Layout

    4-10-96

    05-140

    Welding 05

    rear panel robot OP-140

    rear panel

    3302246

    53 sec.

    43 sec.

    2

    82

    1

    3

    12

    2

    2

    0

    120

    0

    0

    21

    8

    11

    1

    31

    1

    1

    1

    2

    1

    1

    23

    45

    6

    7

    8

    Pick up bar

    Set bar and rear panel in welder

    Hold rear panel andreinforcementPlace rear panel in robotwelder

    Hold bracketPlace bracket in robotwelderMake (4) additional spotwelds on rear panelSet rear panel in punchpress and start press

    32 52 11

    watch for burrson edges

    welding glassesrequired

    welding glassesrequired

    welding glassesrequired

    welding jacketkevlarsteel toewelding

    12

    3

    4

    5

    678

    Punch

    PressSpotWelder

    RoboticWelder

    QC

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    Target Time (1 min.)

    A B C D EOperators

    1 min.

    Target Time (1 min.)

    A B C D EOperators

    1 min.

    CycleTime

    Standardized Work and ContinuousImprovement of Processes

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    GL

    Team &Team Leader

    First Salary LevelGL

    Lean Shop-floor OrganizationStructure

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    The role of the Lean Supervisor:Safety

    5-S: Develop and maintain a 5-S plan for the group,

    including audits. Evaluate condition daily. Heighten

    awareness and lead by example. Ergonomics: Observe and improve movement techniques to

    minimize ergonomic burden. Encourage team participation

    in elimination of ergonomic concerns.

    Accidents/near miss cases: Report all accidents and nearmisses. Work with operators and staff to develop

    countermeasures that will insure re-occurrence prevention.

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    The role of the Lean Supervisor:Quality

    Standardized Work: Observe processes regularly to insure

    adherence to standardized work. After any continuous

    improvement activity, insure documentation is updated. Defects & scrap: Heighten awareness in looking for defects

    from current and previous processes. Conform to response

    and follow-up procedures for improvement and feedback.

    Training: Insure all training is carried out completely usingsafe and approved methods. Document training progress and

    encourage multi-functional job training.

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    The role of the Lean Supervisor:Production

    Build to the Schedule: Insure daily requirements are met

    without the introduction of over production. Monitor

    production by the hour, and react in a timely manner. Support and encourage continuous improvement: Always

    look for ways to remove waste from the process with the help

    of the operators.

    Monitor the Inventory System: Control work in process andinsure the workgroup is operating within established min &

    max levels on the line. Report and react to abnormalities as

    they occur.

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    The role of the Lean Supervisor:Cost

    Identify and eliminate scrap and waste: Work towards

    continuous improvement in all facets of the surrounding

    environment. Document improvements and capture bestpractices to insure standardization.

    Monitor the use of Operating Supplies: Control the use

    of indirect material; use a budget/checkbook system where

    possible to prevent free spending on non value addeditems. Encourage the teams to control these items.

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    The role of the Lean Supervisor:Problem Resolution

    Use root cause analysis to address problems: Use the

    five whys to identify root cause and develop permanent

    solutions. Avoid the five whos. Foster a problems aregood environment.

    Serve as advisor and resource for workgroup

    improvementfocused activities: Provide the setting for

    continuous improvement and problem solving activities,

    without directing the efforts. Support the group by

    providing the necessary resources to implement a problem

    solving environment.

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    Additional roles for theLean Supervisor

    Monitor arrival and departure times: Greet and send-off operators

    each day. Observe behavior trends.

    Adjust for manpower abnormalities: Visually confirm attendance

    and adjust as required based on current skill level. Conduct pre-shift checks: Check area for safety, proper set-up for the

    day, tools, supplies, 5-S, ect. Complete any audit sheets.

    Communicate: Read logbooks, leave info for the next shift,

    communicate current situation to the workgroup, conduct meetings as

    required.

    Complete the day: verify paperwork is complete, 5-S is acceptable,

    make notes for tomorrow and reflect on the days happenings.

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    Model for LeanManufacturing

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    What we need

    Reliable equipment

    Just in time production

    In-station quality control

    Empowered people

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    What is meant by LeanManufacturing?

    Today, there are many terms being spoken within the

    industry:

    Kanban Pull Systems

    Batch-of-One Production

    Andon

    Total Productive Maintenance (TPM)

    Kaizen

    Worker Empowerment

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    Defining Lean Manufacturing

    Many people refer to the Toyota

    Production System when discussing

    Lean Manufacturing.

    For our discussion, we will define lean

    manufacturing as the process of

    identifying and eliminating wastewithin our operations including

    manufacturing, engineering and

    administration.

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    The evolution of the manufacturingsystem.

    The process of manufacturing and supplying

    products has evolved from simple craft

    production to a fast-paced, global-orientedarena.

    Evolution

    Craft Mass Lean

    Less individual control;

    Responsibilities distributed over

    many people.

    Time and

    Resourcesforce

    transition

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    Customer demand is theuniversal driver in change.

    WASTE

    Customer

    Order Waste

    X

    Product

    Shipment

    Time

    Time (shorter)

    Lean Manufacturing helps

    to shorten the timeline

    between the customer order

    and the product shipment.

    Conditions that were satisfactory yesterday are

    not acceptable today. Tomorrows demands will

    be even greater.

    X

    Product

    ShipmentCustomer

    Order

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    Why make the change to LeanManufacturing?

    Lean Manufacturing implementation has been

    shown to aid companies in the following

    areas: Improves productivityPeople stop wasting effort on non-value added tasks

    Predictable and stabile environment

    Increases Quality Assurance

    Tools designed to eliminate defects, not detect them

    Increases Flexibility

    Quicker response to changes in customer orders

    Reduces Costs

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    Look whos making the change.

    Ford Motor Company

    Chrysler Corporation

    General Motors

    US Military

    Sara Lee

    Nestle

    Tysons Foods

    Many other in all

    industries

    Many industry-leading companies have

    determined that they must change their business

    practices to maintain their markets.

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    So, what is Lean Manufacturing?

    Remember our definition:

    The process of identifying and eliminating wastewithin our operations including manufacturing,

    engineering and administration.

    For this conversation, we will limit our scope to

    the manufacturing/ remanufacturing operation.

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    The reality of profit in our marketenvironment

    Price = costs + profit Price is fixed by the customer

    Cost reduction is the only way to make

    profit

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    How do you deliver value as anorganization?

    Eliminate non value-added elements of

    work.

    Create the flow of value at the pull of

    the customer.

    Focus on eliminating waste.

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    How should we define waste?

    Waste (wast)n. - anything thattakes time, resources or space

    but does not add to the value

    of the product or service

    delivered to the customer.

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    While products differ, the typical wastesfound in each factory are similar:

    Correction

    Conveyance

    Motion

    Over-production

    Over-processing Waiting

    Inventory

    WASTE

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    Waste - Process Defects

    When defects occur at one station, operators

    at subsequent stations waste time waiting,

    thereby adding cost to the product and

    adding production lead time.

    Furthermore, rework may be required or the

    defective products are scrapped.

    If a defect occurs in assembly, additionallabor is required to disassemble and

    additional parts are required to reassemble.

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    Waste - Waiting

    People and/or Machines

    waiting on Product

    A

    A

    A

    A

    B

    B

    B

    B

    C

    C

    C

    C

    D

    D

    D

    D

    A B C D

    0

    3

    6

    9

    12

    Processing Time = 1 minute / unitTime

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    Waste - Waiting (continued)

    A

    A

    A

    A

    B

    B

    B

    B

    C

    C

    C

    C

    D

    D

    D

    D

    A B C D

    0

    1

    2

    3

    7

    Processing Time = 1 minute / unitTime

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    Waste - Conveyance

    Example:

    Raw material being stored away from the place of use.

    Result:

    We must inform tracking personnel where to pick up material.

    We will need additional storage location other than point of use.

    We need additional material movement personnel and equipment.

    Processing Waste:

    Performing operations that are not required to manufacture or

    assemble the product to the customers quality expectations.

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    Waste - Motion

    Whatever time not spent in adding value to the

    product should be eliminated as much as possible.

    Movement does not necessarily indicate value-

    added work.

    Categories of WorkValue Added- something the customer will pay for

    Incidental - something which has to be done

    Waste - provides no value or service

    Eliminate Waste:

    Reduce Incidental Work

    Motion

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    Waste - Over-production

    Created by producing goods above

    the amount required by the

    market.

    Over-

    Production

    extra defects

    extra handling

    extra space

    extra machining

    extra paperwork

    extra people

    extra overhead

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    Waste - Excess Inventory

    As shown with over-production, excess inventory

    requires extra cost to handle and maintain.

    Excess inventory also covers problems in the

    operation.

    Sea of Inventory

    Poor

    Scheduling

    Machine

    Breakdown

    Quality

    Problems

    Long

    Transportation

    Vendor

    Delivery

    Line

    Imbalance

    Long Set-Up Time

    Absenteeism

    Commun-

    icationProblem

    Lack of

    House-

    Keeping

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    Lessons Learned

    Map the value stream just like manufacturing.

    Make the process very visible.

    Focus on the non value-added tasks.

    Use standardized work to organize tasks.

    Look for rework loops and delays for decisions.

    Lean principles apply to administration andengineering, as well as process and repair.

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    LeanTools

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    Many companies utilize theFive Phase Approach.

    Brings process variables under controlProvides an environment to eliminate wasteShows quick business impact

    Reduces WIP inventory, time loss and defectsIncreases process flexibility

    Creates repeatability between workstations

    Synchronizes operations with customer requirements (takttime)Creates disciplined process repeatability

    Creates an environment where material replenishment linksoperation with customer demand.

    Reduces response times or changes in demandReduces upstream schedule variability

    Stability

    Continuous

    Flow

    Synchronous

    Production

    Pull System

    Level

    Production

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    LEAN Five Phase Approach , Continued

    As for LEAN IMPLEMENTATION Approach it is

    worthwhile to say that:

    LEAN IMPLEMENTATION IS A JOURNEYNOT A DESTINATION

    During the Journey you need TOOLS, Generally

    some Tools suite certain Phases better than Others

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    Summary

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    Summary

    The challenge for todays manufacturers is great. Many

    companies are struggling to regain a competitive edge in

    manufacturing.

    Lean Manufacturing offers many organizations a proven

    methodology to help reduce waste in their operations.

    However, unless you are committed to making such a significant

    change, Lean Manufacturing may cause you more headaches

    than you wish to handle.

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    Questions and Discussion

    What are your impressions?

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    THANK YOU