LEAN MANUFACTURING

WHAT IS LEAN?
Lean, is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination.

Goals and Strategies of Lean

Improve quality
Eliminate waste Reduce time Reduce total costs

Lean Manufacturing
Lean manufacturing is a management philosophy derived mostly from the Toyota Production System (TPS)

TPS is renowned for its focus on reduction of the original Toyota seven wastes to improve overall customer value, but there are varying perspectives on how this is best achieved

Lean Manufacturing
Its goal is to, Variation on the theme of efficiency based on optimizing flow. Decreasing waste

How to use available time for an operation including Time study, motion study.

How is the objective accomplished?

Aim to the elimination of waste Its goal is to incorporate less human effort, less inventory, less time to develop products, and less space to become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

Cycle Time
One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater is its ultimate cost.

Henry Ford, 1926

History of Lean Manufacturing

Lean Production
Eiji Toyoda visits Fords Rouge plant in 1950 and returns to Japan to discuss his study with his production engineer, Taiichi Ohno. Mass production techniques are determined to be inappropriate for Japan because: 1. The market in Japan demanded a large variety of different vehicles in relatively small quantities. 2. Unlike the practice in America, treating the workforce as a variable cost was not possible in Japan. Managements right to lay off employees was severely restricted. 3. The Japanese economy was starved for capital after the war, so purchasing the latest, expensive equipment was not an option.

Contd
After formulating the guiding principles of its lean manufacturing approach in the Toyota Production System (TPS) Toyota formalized in 2001 the basis of its lean management: the key managerial values and attitudes needed to sustain continuous improvement in the long run. Toyota set to put the Toyota Way into writing to educate new joiners They break continuous movement breakdowns in three basic principles.

Steps how to improve their mass production:

The three relevant steps/principles for their mass production improving are,

Challenge: Having a long term vision of the challenges one needs to face to realize one's ambition Kaizen: Good enough never is, no process can ever be thought perfect Genchi Genbutsu: Going to the source to see the facts for oneself and make the right decisions

Intro to Lean Mfg

Source: The Machine That Changed The World, Womack, Jones, and Roos, p. 44.

Steps to Create a Lean Enterprise

1. Specify value in the eyes of the customer 2. Identify the value stream and eliminate waste

3. Use a pull system that is triggered by the customer

4. Involve and empower employees 5. Continuously improve in the pursuit of perfection

Lean is customer focused

Make what the customer wants, when the customer wants it, at a price the customer is willing to pay

Value stream mapping

Follow a product or service from beginning to end

Draw a visual representation of every process in the material & information flow

Value Stream Mapping

Helps us see where value is created, and where waste exists:

A visual approach, by product family

Shows flow of both material & information

Helps us see which specific Lean tools can be used to improve flow and eliminate waste
Two maps will be made: Present State (how it is) & Future State (how it should be) Will guide the creation of an action plan to make the should be into a reality for that product family

Definition of Value-Added
Value-Added

Any activity that increases the market form or function

of the product or service. (These are things the customer is willing to pay for.)

Non-Value Added (Waste or muda)

Any activity or use of resources that does not add

market form or function or is not necessary. (These activities should be reduced, integrated, simplified, or eliminated.)

Using the Value Stream Map to Eliminate Waste

Value-Added Non-Value-Added: Hold all waste in a CLOSED MITT Complexity Labor Overproduction Space Energy Defects
Materials Idle Materials

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

Complexity
The waste of doing things the hard way! Excessive paperwork Excessive approvals Redundancy Causes of complexity: Multiple patches on the process w/o fixing the root cause. The cool factor of technology or machinery. Failing to look for the simple solutions.

Labor Waste
Human effort that adds no value to the product or
service from the customers viewpoint.

Not using peoples mental, creative, and physical

abilities

Causes of labor waste

Poor people/machine interface Inconsistent work methods Unfavorable workstation or cell layout

Doing unnecessary/unneeded operations

Poor workplace organization and housekeeping Redundant inspections/approvals Extra copies/excessive information

Overproduction
The waste of making too much, too soon, too fast compared to the needs of the next process. Causes of overproduction
Just-in-case logic

Misuse of automation
Long process setup Non-level scheduling Unbalanced workload Misunderstood communications Reward system Unreliable shipment by suppliers

Space Waste
Using more space than is required to build the product to market demand. Causes of wasted space
Poor layout
Too much inventory, especially work in process Poor workplace organization

Excess equipment
Oversized equipment

Energy Waste
Using more energy (people and machine) than is required to build the product to market demand.

Causes of wasted energy

Oversized or poorly maintained equipment

Idle equipment
Poor workplace organization

 Waste of inspection, repair and scrapping of

material to which value has already been added.

Defects

Causes of defects
Weak process control Poor quality system

Deficient planned maintenance

Inadequate education/training/work instructions Product design Customer needs not understood Defective information

Materials Waste
Any use of materials in excess of what is needed to create value.

Causes of material waste

Not understanding the costs Inadequate education/training/work instructions Lack of standards

Customer needs not understood

Idle Materials
The waste of having materials sitting around in process without any value being added to them.

Causes of idle materials waste

Unbalanced workload Unplanned maintenance Long process setup times Poor suppliers Upstream quality problems

Unlevel scheduling

Transportation Waste
Transporting parts and materials around
the plant, stacking and un-stacking, etc.

Causes of transportation waste

Poor plant layout Poor understanding of production process flow Large batch size, long lead times, large storage areas

Time Waste
Any activity that consumes time without adding value, especially the waste of waiting (equipment downtime, waiting for materials, setup, etc.). Causes of wasted time:

Poor machine maintenance. Line imbalances. Poor setup discipline. Poor communication between processes.

Lean Building Blocks

Continuous Improvement
Pull/Kanban
Quality at Source Standardized Work 5S System

Cellular/Flow
POUS

TPM

Quick Changeover
Teams
Value Stream Mapping

Batch Reduction Visual

Plant Layout

Definition for Kaizen Alternate name for Lean

Kaizen: leadership philosophy, a
management methodology, and a set of tools all wrapped into one. Indicates long-term betterment Makes little improvements Under Kaizen, the entire facility is orderly Visual keys are used to assist in ordering the workplace

 Simple signals that provide an immediate

understanding of a situation or condition. They are efficient, self-regulating, and worker-managed.

Visual Controls

Examples:
Kanban (stock signal) Cards
Color-coded dies, tools, pallets Lines on the floor to delineate storage areas, walkways, work areas etc. Lights to indicate production status Location signs on shop floor and in the office

Identification labels everywhere

Standardized Work
Graphic = Good
Tools are illustrated Parts are pictured and numbered Spatial relationships are clearly shown Small items enlarged to show assembly detail All items are either physically labeled or identified by number in assembly graphic

Standardized Work

5S - Workplace Organization
A safe, clean, neat, arrangement of the workplace provides a specific location for everything, and

eliminates anything not required.

In Lean manufacturing, we refer to this as 5S. Examples: EMTs, fire department, etc.

Elements of a 5S Program
SortPerform Sort Through and Sort Out, - red tag all
unneeded items and move them out to an established quarantine area for disposition within a predetermined time. When in doubt, move it out!

Set in OrderIdentify the best location for remaining items and

label them. A place for everything & everything in its place.

Sweep (Systematic Cleaning)Clean everything, inside and out.

Use visual sweeps to ensure everything is where it should be and that junk is not accumulating.

StandardizeCreate the rules for maintaining and controlling

the first 3 Ss. Use visual controls.

SustainEnsure adherence to the 5S standards through

communication, training, self-discipline and rewards.

Before 5S

Before 5S

After 5S

After 5S

After 5S

Traditional Plant Layout

Plant Layout for Flow

Raw Stock
QC Rec Ship

Shear

Stamp

Screw Machine Lathe Drill

QC

Brake

Mill

Assembly

Weld

Grind

Finish

Parts Stock

Obstacles to Flow
Monuments:
Unmovable items in the plant, i.e., large pieces of equipment, structural supports or walls, etc. Too expensive to move or replace, yet not in the proper place to allow good product flow.

What do we do about monuments?

We have to leave them where they are (for now)! We do our best to work around them. Put in place the best flow given the monuments, but must always be looking for a better way.

Impact of Batch Size Reduction

Batch & Queue Processing
Process A 10 minutes 10 minutes Process B Process C

10 minutes

Lead Time 30+ minutes for total order 21+ minutes for first piece

Continuous Flow Processing

Process Process Process A B C

12 min. for total order 3 min. for first part

The Ideal Lot Size

Ideal lot size is one
Velocity = The smaller the lot size, the faster the parts will flow through the manufacturing process Flexibility = The smaller the lot size, the more variety in demand the system can handle

More Lean Tools

Setup Reduction or Quick Changeover (SMED) Point of Use Storage (POUS) Quality at the Source Visual Inspection Pull (including Kanban, Two Bin, Min/Max) Cellular Manufacturing Total Productive Maintenance

Change Over

STEPS IN A CHANGEOVER:

1. Preparation 2. Remove/Install Tooling

3. Change Machine Settings

4. Make Trial Pieces & Adjust

Setup Reduction or Quick Changeover

Definition: Minimizing the time from last

good piece of the current product run to first good piece of the next (different) product run.
Percent of time of changeover
Making trial pieces and adjusting 30% 50%
15% 15%

Preparation, after-process adjustment, checking, return to storage of parts, tools, fixtures, move materials 5% Removing parts, blades, jigs, etc.; mounting same for next lot, move materials Machine settings, measurements

Change Over
Reduce the complexity and increase the efficiency of setups by standardizing as much of the hardware and methodology as possible.

No/Low Cost Solution: Use of Positioning Pins

Positioning Pins

Positioning Pins

No/Low Cost Solution: One-Turn Methods

Pear-Shaped Hole Method

Tighten Here

Attach and Remove Here

Other Functional Clamps

Quick Changeover: Visual Controls

Quick Changeover
Clearly labeled cutter size and style

All regular router cuts needed in this workcell stored at router table.

Standardization & Setup Reduction

Common fasteners and fittings standardize on the sizes
and types.

Standardized carrier plates, fixtures, shut heights, etc. Standardized procedures along product families, where
the product families share common manufacturing processes & equipment. across all operations and shifts.

Share information and communicate best practices Monitor & track setup times relative to standard time.

Point of Use Storage (POUS)

Raw material, components used, and
information is present at workstation where used

Works best if vendor relationship permits

frequent, on-time replenishment and small shipments

Simplifies physical inventory tracking, storage,

and handling

Quality at the Source

Source Inspection: Operators must be certain
that the product they are passing to the next workstation is of acceptable quality.

Operators must be given the means to perform

inspection at the source, before they pass it along.

Samples or established standards are visible

tools that can be used in the cell for such purposes.

Visual Inspection Example

Specify what to inspect
Clear inspection criteria Dont overload operator with complex content or criteria

No missing screws All screws seated

Push vs. Pull Systems

Push System
Resources are provided to the consumer based on forecasts or schedules

Pull System
A method of controlling the flow of resources by replacing only what has been consumed

Pull System
Pull system consists of:
Production based on actual consumption Small lots Low inventories Management by sight Better communication

Pull System Flow Diagram

Information Flow

Supplier

Raw Matl

Process A

Process B

Process Fin. Goods C

Customer

Parts Flow Kanban Locations

 Kanban:

Pull System Methods

A visual signal telling us what we need to produce. Cards, open spots, etc.

Two-bin System:
Used for commonly produced items, sub-assemblies. When a bin is empty, fill it. Ensures there is always material available while minimizing inventory.

Cellular Manufacturing
Linking of manual and machine operations into the most efficient combination to maximize value-added content while minimizing waste. Punch Cut to size De-burr

Package Sand

Form

Advantages of cells: Communication and shared labor

Moving to Cellular Manufacturing/Flow Production

Stage 1
Production in Specialized Departments
Dept A Dept B Dept C

Stage 2
Production in Product Cell
C C Inv C C
Dept E

A A Inv A A
Dept D

Inv Inv Inv Inv

B B B

Inv Inv Inv

Inv

Inv

Inv

Inv

D Inv D D D Inv Inv

E E E Inv

C A Inv B Inv

Stage 3
Production in Compact Cell with One-Piece Flow

Stage 4
Production in Compact Cell with One-Piece Flow and Separation Man/Machine

D E C D C A B

Total Productive Maintenance (TPM) Systematic approach to the elimination of

equipment downtime as a waste factor

Enlisting the intelligence and skills of the

people who are MOST familiar with the factory machines: the equipment operators

Charting/analyzing equipment performance

to identify root cause of problems, and implementing permanent corrective actions

Continuous Improvement (CI)

Old Adage:

If you always do what you always did, youll always get what you always got.
Competitive Corollary: If the other guy gets BETTER, youre gonna get LESS.

 Teams

Lean Workforce Practices

With identified goals and measured performance

With rotation of highly specified jobs

Cross-trained and multi-skilled employees

Who can work many operations within a cell and operations in different cells

Continuous improvement philosophy

Process quality, not inspection

Use of participatory decision-making processes
Gap analysis, team-based problem solving, project management, etc.

Implementation Success Factors

Unyielding leadership Strategic vision based on Lean enterprise as part
of company strategy

Observe outside successes and failures

Ability to question EVERYTHING

Deep commitment to EXCELLENCE

Consistency

Clear channels of communication

Comparison of Traditional vs. Lean

Traditional

Complex Forecast Driven Excessive Inventory Speed Up Value-Added Work Large Batch Production Long Lead Time

Lean

Simple and Visual Demand Driven Inventory as Needed Reduce Non-ValueAdded Small Lot Size Minimal Lead Time

Quality Inspected-in Functional Departments

Quality Built-in Value Stream Managers

Quality of a GOOD Leader Must Not

Flex Muscles Throw fits Blame the worker Blame the Measure

Must

Give up

Think of at least 7 ways to do better

Go to the Shop Floor

Kaizen your Standard Work

Show Boat Cover up Hide in the office Tamper with the Measure

Intimidate

Lead by Example

Empower the Team

Set goals Throw People at Problems

Have a vision Celebrate Success

Stress out

Create smoke screens

Grovel

Be clueless

Provide the right tools

Observe the process Find the Waste

Communicate direction

Mapping the Future State

Determine Available Time/Demand Determine where continuous flow is possible Determine what pull systems will be used Determine pacemaker operation Determine how pacemaker will be scheduled/leveled Determine increment of work released at pacemaker Identify necessary process improvements to achieve future state flow

Future State Value Stream Map

Results
Production lead time
Old New

23.5 days

4.5 days

LEAN ENTERPRISE

Thank You.

Places to look for waste

Over-production Waiting time Transportation Processing Inventory Motion Scrap

Setup Time Drives Batch Size:

The Economic Order Quantities (EOQ) model determines the most economic lot/batch size for a production run.

Changeover Cost + Inventory Carrying Cost

Variable Cost

Inventory Carrying Cost

Changeover Cost Fixed Cost EOQ Increasing Lot/Batch Size