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What is Lean? Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high value on developing people at all levels of the organization. Brian Hatcher

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Page 1: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

What is Lean?

Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high value on developing people at all levels of the organization.

Brian Hatcher

Page 2: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Improvement Methods

Lean ManufacturingLean Six Sigma

Total Quality ManagementAgile Manufacturing

Toyota Production SystemSix Sigma

Theory of Constraints

Page 3: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

PRINCIPLES OF A LEAN OPERATING SYSTEM

Eliminate Waste

Increase Speed & Response

Improve Quality

Reduce Cost

Page 4: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Waste - Muda

Waste is anything that the customer is not willing to pay for.

Necessary Waste - Customer does not want to pay for but is willing to pay for – does not add value to the product

Un-necessary Waste – Does not transform the product – we want to get rid of this waste

Page 5: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high
Page 6: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

7 Wastes in an Organization

TransportationInventoryMotionWaitingOver-

productionOver-

processingDefects

T I M W O O

D

Page 7: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

LEAN TOOLS5S

Visual ControlsSMED

Small Batch Single Piece FlowQuality and Continuous

ImprovementTotal Productive MaintenanceManufactured Good Recovery

Page 8: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

House of Lean

Page 9: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

5 S

Sort - Seiri (Organization)

Set In Order – Seiton (Orderliness)

Shine – Seiso (Cleanliness)

Standardize – seiketsu (Standardized Cleanup)

Sustain - Shitsuke (Discipline)

Page 10: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

5 Pillars of the Visual Workplace, Hirano, p. 20, 1995

Page 11: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Visual Controls

Page 12: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

SMED – Quick Change

(Single Minute Exchange of Die)

1. Pre – changeover 2. During changeover3. Startup4. After Startup

Increases capacity by creating more available production time.

Page 13: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Single Piece Flow

Make small batches and changeover quickly or single piece flow from pone process to the next.

Value Stream Thinking( From dirt to shelf )

Takt Time =available production time per day

customer demand per day

This is the customer demand for your product or service… the pace at which you must produce.

Page 14: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Value Stream Mapping Workshop, Rother and Shook, p. 71, 2002

Page 15: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Value Stream Mapping Workshop, Rother and Shook, p. 72, 2002

Page 16: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Quality

Advanced Statistical Methods(TQM, Six Sigma)

W. Edwards Deming, Motorola

Zero Quality Control – Quality at the source(Poka Yoke)

Shingeo Shingo

Page 17: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Lean Six Sigma

Define Measure Analyze Improve

Control

Design of Experimentation (DOE)

Page 18: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high
Page 19: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Kiazen (Continuous Improvement)

Business Process Kiazen (Value Stream)

Kiazen Workshops (5S Event)

Daily Kiazen (Daily Improvement)

Page 20: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

The Deming (Shewhart) Cycle

Page 21: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

TPM (Total Productive Maintenance) Participation of all employees (not just

maintenance)

Identify problems before they are problems

Correct problems when down time can be planned

Decreases production variablilty

Page 22: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

JUST IN TIME SYSTEMS

Pull vs. Push

Inventory Management(Supermarket – Kanban)

Production Management(Level loading – Heijunka)

Page 23: Lean is a business system that focuses on doing only those things that add value to the customer, creating continuous one piece flow, and placing a high

Manufactured Good Recovery

Managing waste streams

Recycling