Lean Manufacturing 2

Lean Manufacturing and Process

Improvement
Lecture 3, September 24, 2020

Week 3 Lean Manufacturing/ Process Improvement Slide 1

Lean Deployment/ Success

Com m itm entto

CO N T IN U O U S IM P R O VEM EN T
LM
P re-requisite
L ean
Core
A ggressive M etrics
Concept
Goals L ean
L M Driver P rincipalsIn
L ean T ools& P lace
T echniques
Week 3 Lean Manufacturing/ Process Improvement Slide 2
Continuous Improvement
There is always room for an
improvement. Processes,
products, and services, any
thing can be made better.
Only a strong commitment to
Continuous Improvement
can ensure high quality, on
time delivery, reduced cost and
good service.

S afety
Q uality
W aste Cost
Delivery
M oral
Week 3 Lean Manufacturing/ Process Improvement Slide 3
Why Problem Solving

Problem
Improvement
Solving

Week 3 Lean Manufacturing/ Process Improvement Slide 4

What is a Problem

Discrepancy Betw een

S tandard orExpectation A ctualcondition

and
deviation
theP resentorA ctual
Condition standard

Week 3 Lean Manufacturing/ Process Improvement Slide 5

What is a Problem

Discrepancy Between
Standard or
Expectation and A ctual

the Present or Actual S pecification

Condition A ctual

Week 3 Lean Manufacturing/ Process Improvement Slide 6

Types of Problems
Gradual
Change
Degradation
S tandard
perform ance

S udden Change
A ctual
S tandard perform ance
perform ance

R ecurring
Change Change Change Change
Degradation

S tandard
S tandard perform ance Change
perform ance
A ctual
perform ance

Week 3 Lean Manufacturing/ Process Improvement Slide 7

Management’s reaction to Problem

DO ES
Yes T HE No
DA M N
T HIN G
W O RK
DO N ’T M ES S
W IT H IT
Yes DID YO U
M ES S
W IT H IT

No DO ES
A N YBO D FO U L -U P S HA P P EN
Y KN O W

Yes W IL L No
Yes YO U
CA T CH
HECK
HIDEIT

YO U ’R E IN T R O U BL E
No

DU M P ITDU M P IT
CA N YO U
BL A M E
A N YBO D
Y EL S E

N O PN RO O P LR EM
O BL EM

Week 3 Lean Manufacturing/ Process Improvement Slide 8

How Toyota Turns Workers Into
Problem Solvers

“Toyota's reputation for sustaining high product

quality is legendary. But the company's methods
are not secret. So why can't other carmakers
match Toyota's track record? HBS professor
Steven Spear says it's all about problem
solving”.

Published: November 26, 2001Author:Sarah Jane

Johnston

Week 3 Lean Manufacturing/ Process Improvement Slide 9

Biggest Problem of All!

“Having no problems is the biggest problem

of all.”
“Kaizen opportunity in disguise.”
Taiichi Ohno
Investigate the problem at the source,
“ask ‘why’ five times about every matter.”

Week 3 Lean Manufacturing/ Process Improvement Slide 10

Let’s change !!

“We have learned to live in

a world of mistakes and
defective products as if
they were necessary to life.
It is time to adopt a new
philosophy in America.”
Deming
“If Japan Can… Why
Can’t We.”
Week 3 Lean Manufacturing/ Process Improvement Slide 11
Problem an opportunity

The problem is an
opportunity
to find out,
how to do better !

Week 3 Lean Manufacturing/ Process Improvement Slide 12

Management’s reaction to Problem

U nsolved
problem scan
becom ea
bigger
problem !

Week 3 Lean Manufacturing/ Process Improvement Slide 13

Problem Solving

A Systematic Approach
Team Approach
The best way
Everybody involved in Problem Solving in all aspects of a
process

Week 3 Lean Manufacturing/ Process Improvement Slide 14

Why Use Systematic Problem Solving?
S tandardized
m ethodanda
com m on language
(repeatableprocess)

R educe W hy S ystem atic Consensus

”fire- P roblem S olving? decision m aking
fighting”
Getdow n to the
rootcause
versusbandaids

Week 3 Lean Manufacturing/ Process Improvement Slide 15

Problem Solving Process
 Identify Problem
 Define problem/ What is the problem?
 Short term solution
 Fix it/ trouble shoot/ contain at your side/ protect customer
 Root Cause Analysis
 Why is discrepancy occurring/ why is problem taking place?
 Countermeasures/ Solutions
 Solutions/ How are we going to solve the problem?
 Implement
 Monitor/ Check/ Is the solution working?

Week 3 Lean Manufacturing/ Process Improvement Slide 16

Problem Solving Hierarchy
Complexity
of Problem

Advanced
Major Kaizen
Standard Kaizen
Kaizen
Quick
Kaizen
5 Why

5G
1 Week 3 Months Time
Taken

Week 3 Lean Manufacturing/ Process Improvement Slide 17 17

Selecting a theme
Independent Interrelated

PHENOMENO BASIC BASIC TECHNICAL

N SPORADIC SPORADIC COMPLEX COMPLEX VERY COMPLEX
SPORADIC CRONIC CRONIC

PROBLE
M QUICK KAIZEN STANDARD MAJOR KAIZEN ADVANCED
SOLVING KAIZEN KAIZEN
Autonomous Activities PPA
Tag Tag
F.I. Tracking & Support Focused Improvement
Professional Maintenance
EWO 5 WHYS PDCA
SKILL TO
SOLVE
Quality Control
OPL 4M

Team Member
+
Team Member Team Expert Team Work
Team Member + + Team Work +
Team Expert BU Leader Specialists

1-4 1-3 >3

1 - 5 Days
Weeks Months Months
Guideline
Week 3 Lean Manufacturing/ Process Improvement Slide 18
Root Cause

“When a problem comes along,

study it until you are completely
knowledgeable. Then find that
weak spot, break the problem apart,
and the rest will be easy”.

Norman Vincent Peale

Week 3 Lean Manufacturing/ Process Improvement Slide 19

Why Root Cause analysis

RCA methods and approaches help us see…

Help us problems with standards (pre-

defined ideal conditions)/ desired outcome

Root causes of mistakes

Helps us identify and narrow down and get

to root cause of problem

whether the problem is due …

Week 3 Lean Manufacturing/ Process Improvement Slide 20

What is Root Cause
S ym ptom s
An identified reason for the
arevisible
presence of a defect or problem.

The most basic reason,

which if eliminated, would
prevent recurrence.
R ootcauseis
The source or origin of an event. notvisible

Week 3 Lean Manufacturing/ Process Improvement Slide 21

Direct and Indirect Causes
Can you see it ?

YES No

Fishbone
If you find a cause/
see the snake
JUST KILL IT!
I see it
5 Why

Week 3 Lean Manufacturing/ Process Improvement Slide 22

5G
1. Gemba (actual site)
2. Genbutsu (actual thing)
3. Genjitsu (actual situation / occurrence)
4. Genri (the theory)
5. Gensoku (standards)

“If you go to the place where things are happening, study the thing
is suffering / producing effects, analyze the real situation using the
theory, probably you're going to find a solution and "create" the
standards to avoid re-occurrence”.

Week 3 Lean Manufacturing/ Process Improvement Slide 23

5W1H
5W 1H used for problem identification

What What part/ machine the problem is on?

Tool/ Cutter change on all cutting machines (both power & Wet cut)
When When is waste/ unevenness occuring?
Every time a tool change is required/ performed
Where Where is the WUS (waste/ unevenness/ strain) occuring?
Department 0741/ cutting machines
Who Who is doing it?
Team leader
Which Which trend or the pattern does the problem have?
Repetitive/ every cutter/ tool change
How How is it being done?
Remove old cutter/ install new one, run a part and send out for test
and wait for result

Week 3 Lean Manufacturing/ Process Improvement Slide 24

Root Cause/ Preferred Start
Controlled brainstorming
• Find out the relationship of problem and root cause classifying
into main families/ categories
 Human

 Machine

 Material

 Method

 Measurements

 Environment

 Information

How did the defect get through?

Week 3 Lean Manufacturing/ Process Improvement Slide 25

 Cause and Effect Diagram
Major Cause
Cause
PROBLEM

Machines Materials

Cause
Cause Cause Cause Cause
Cause Cause
Cause Cause
Effect
Cause Cause Cause
Cause SYMPTOM
Cause Cause
Minor Cause Cause
Human Environment

Week 3 Lean Manufacturing/ Process Improvement Slide 26

4M
Use a Fishbone Diagram:
Classify problem and potential root cause into four basic areas
and see how was the problem created?
 Human
 Material
 Method
 Machine

Week 3 Lean Manufacturing/ Process Improvement Slide 27

Fishbone Cause and Effect Diagram
Visual representation of team
members’ ideas in specific
categories.

• Helps team visualize the

problems.
• Focuses team members’
input on a common goal;
the problems associated
with a given symptom.

Week 3 Lean Manufacturing/ Process Improvement Slide 28

5 Why
The 5-Why approach, created by
Sakichi Toyoda (1867 - 1930),
the founder of Toyota, is a simple
way to begin any investigation. This method
produces a linear set of causal relationships and
uses the experience of the problem owner to
determine the root cause and corresponding
solutions. Also called “Cause Mapping”.

Week 3 Lean Manufacturing/ Process Improvement Slide 29

5 Why and TPS

The architect of the Toyota Production System,

Taiichi Ohno, described the 5 whys method as "...
the basis of Toyota's scientific approach ... by
repeating why five times, the nature of the
problem as well as its solution becomes clear.“

o A critical component of problem solving training

delivered as part of the induction into the TPS.
o Is widely used beyond Toyota
o Kaizen, lean manufacturing, and Six Sigma.

Week 3 Lean Manufacturing/ Process Improvement Slide 30

5 Whys
A skourselves“w hy?” atleast5
tim esto getto thebottom andfind
therealrootcauseofaproblem . W hy ?

W hy ?
- do notstop afterfirst W hy?
detectedcause! Defective Coolant
Hose Flange

-lookforhidden causes! W hy ?

Why 5?

Good Coolant Hose

Flange
Week 3 Lean Manufacturing/ Process Improvement Slide 31
Why 5WHY

 Helps identify the root cause of a problem.

 The relationship between different
root causes of a problem.
 Does not need statistical
analysis
 Prevents “Band Aids”
solutions treating symptoms
but real problem
 You don’t have to be technical

Week 3 Lean Manufacturing/ Process Improvement Slide 32

Why 5WHY

Quickly get to the “root cause”!

 See results quicker

 Easy to use
 Easy to teach
 Systemic
 Effective

Train people to solve a I expect you

problem finding an answer all to be

by using a systematic and structured approach!

Week 3 Lean Manufacturing/ Process Improvement Slide 33
Change the verbiage???
 Benefits Of The 5 Whys
 Help identify the root cause of a problem.
 Determine the relationship between different root
causes of a problem.
 One of the simplest tools; easy to complete
without statistical analysis.

 When Is 5 Whys Most Useful?

 When problems involve human factors or
interactions. In day-to-day business life; can be
used within or without a Six Sigma project.

Week 3 Lean Manufacturing/ Process Improvement Slide 34

Example from Ohno
 Taiichi Ohno, the creator of the 5-Why technique, is quoted using
the following example to demonstrate using 5-Why’s for root cause
analysis:
 1. “Why did the robot stop?”
 The circuit has overloaded, causing a fuse to blow.
 2. “Why is the circuit overloaded?”
 There was insufficient lubrication on the bearings, so they locked up.
 3. “Why was there insufficient lubrication on the bearings?”
 The oil pump on the robot is not circulating sufficient oil.
 4. “Why is the pump not circulating sufficient oil?”
 The pump intake is clogged with metal shavings.
 5. “Why is the intake clogged with metal shavings?”
 Because there is no filter on the pump.

Week 3 Lean Manufacturing/ Process Improvement Slide 35

5 Why deployment
P roblem

1st
Cause

2nd
Cause

3rd
Im plem entingsolutionsat Cause
thisstagew illonly be 4th
troubleshooting,because Cause
realcausehasnotbeen 5th
identifiedandelim inatedyet. Cause

R ealcausearoundthis
stage

Week 3 Lean Manufacturing/ Process Improvement Slide 36

 5WHY Example
P roblem : 1stw hy 2nd w hy 3rd w hy 4thw hy 5thw hy
Breakdown!
O verload P oor P um p W orn M etalchips
Abnormal
noise?
lubrication NO K pum p contam ination
axis
L ackof
M achine
lubricant
breakdow n
dueto fuse
blow n
L ubricant
NO K

Incorrect
charge

Jum p of
charge

Week 3 Lean Manufacturing/ Process Improvement Slide 37

 5 WHY example
P roblem Checkon R esult

Foreachpossiblecausew ehaveto
M etalchips O ilpum p NO K
investigateto understand ifitisthe
contam ination contam ination
real“rootcause” oftheproblem or
not
L ackof O illevelin O K
lubricant tank

O ilnon O ilcharacteristics O K
conform ity

Incorrect Charge O K
charge level

Jum p of Charge O K
charge flow

Week 3 Lean Manufacturing/ Process Improvement Slide 38

When to stop asking WHY
Know when to Stop with your Whying
W hy W hy W hy W hy W hy W hy W hy

Getting N arrow er Getting Wider

W hy:T heintakecloggedw ithm etalshaving

W hy:T hepum p intakehasno filter
W hy:W asnotpartofthedesign
W hy:T hisisgettingw idernow ,andrequiresanew funnel

Week 3 Lean Manufacturing/ Process Improvement Slide 39

5 WHY example
A propercounterm easure/solution m ustbeputin placeto addresstherootcausedetected.

R ootcause Counterm easure

M etalchips P utafilterin theoil

contam ination pum p
Definitive
solution

Definitivesolutionisacounterm easuretoP reventcontam ination.

W ithoutaproper5 W HY analysis,thesolution w ouldhavebeen thefusechange,butitw ouldn’thave

solvedtheproblem .

Week 3 Lean Manufacturing/ Process Improvement Slide 40

 4M example
Man Machine
PM/ Key way
Worn Spindles Part cool off wait
App. Manpower P-Machine capacity Machine gaging
App. training Hoist condition bad Faulty arbour
Follow procedure Summary adjustment TP loss due
to cutter
change
Std. Procedure Inserts shortage process
SWI Optimal P. flow Tool life Wrong tool
Control Plan
Tools available

Method Material

Week 3 Lean Manufacturing/ Process Improvement Slide 41

 1st Why
5WHY example
2nd Why 3rd Why 4th Why 5th Why ACTIONS

Reduce part
CMM machine Part waiting to
cool off related
capacity cool off
waiting time

Wait time for

Ensure
part testing from Manpower
appropriate MP
P-machine

Multiple cutter
CMM machine Re-visit test
changes at a
capacity capacity
time

Master Interruptions/ Develop PM

Summary Machines not in
summary no wrecking/ Lack of PM plan for re-
adjustment gage
activated crashing gaging

Longer tool
Change Over Bad bearing on investigate an
process time cutter body ensure rectification

Bad tool/ cutter

Repetitive work
Miss built causing Verification system
Bad setup
cutters In place
mistakes

Re-visit the float

Smaller float Low cost
No inserts No inventory size and make
size emphasis app. adjustment

Unplanned Excessive Lack of training/ Ensure proper

No cutter
increase in wreckages / New team training (by CG/
available lab) also SOP/OPL
demand sudden crash leaders

Equipment Machine Lack expert Lack of cross Cross training is

Lack of PM
Week 3 Lean Manufacturing/
down Process
breakdown Improvement resource Slide 42
training critical
5S
5S is a tool that represents basic principles of house keeping and
workplace organization.
• It helps to establish safer and organized workplace required to create
and sustain continuous process improvement
• Successful implementation improves productivity

Week 3 Lean Manufacturing/ Process Improvement Slide 43

5S Methodology

Week 3 Lean Manufacturing/ Process Improvement Slide 44

Benefits of 5S
• Reduce Non value added activity
• Reduce errors
• Reduces search time for items, parts, etc.
• Reduces excess inventory, transportation and material
handling
• Reduces unnecessary human motion
• Improves floor space utilization
• Improves employee safety and moral
• Improves product quality
• Improves equipment life

Week 3 Lean Manufacturing/ Process Improvement Slide 45

Sort (Seiri)

Week 3 Lean Manufacturing/ Process Improvement Slide 46

Sort (Seiri)

Source: 5S / Visual Workplace Handbook

Building the foundation for continuous improvement, Production
Automation Corporation
Week 3 Lean Manufacturing/ Process Improvement Slide 47
SET (Seiton)

Week 3 Lean Manufacturing/ Process Improvement Slide 48

SET (Seiton)

Source: 5S / Visual Workplace Handbook

Building the foundation for continuous improvement, Production
Automation Corporation
Week 3 Lean Manufacturing/ Process Improvement Slide 49
SHINE (Seiso)

Week 3 Lean Manufacturing/ Process Improvement Slide 50

Why Shine?

Week 3 Lean Manufacturing/ Process Improvement Slide 51

SHINE (Seiso) - Plan

Source: 5S / Visual Workplace Handbook

Building the foundation for continuous improvement, Production
Automation Corporation
Week 3 Lean Manufacturing/ Process Improvement Slide 52
SHINE (Seiso) - Implement

Source: 5S / Visual Workplace Handbook

Building the foundation for continuous improvement, Production
Automation Corporation
Week 3 Lean Manufacturing/ Process Improvement Slide 53
Standardize (Seiketsu)

Week 3 Lean Manufacturing/ Process Improvement Slide 54

Standardize (Seiketsu)

Source: 5S / Visual Workplace Handbook

Building the foundation for continuous improvement, Production
Automation Corporation
Week 3 Lean Manufacturing/ Process Improvement Slide 55
Sustain (Shitsuke)

Week 3 Lean Manufacturing/ Process Improvement Slide 56

Sustain (Shitsuke)

Week 3 Lean Manufacturing/ Process Improvement Slide 57

Sustain (Shitsuke)

Source: 5S / Visual Workplace Handbook

Building the foundation for continuous improvement, Production
Automation Corporation
Week 3 Lean Manufacturing/ Process Improvement Slide 58
Visual Management

Week 3 Lean Manufacturing/ Process Improvement Slide 59

Visual Management (cont.)
WHAT IT IS Benefits
 Organization of manufacturing  Displays the operational status
processes so that everyone in a easy to understand format
can tell, at a glance, if  Provides / conveys
production activities are information, instructions and
proceeding normally. feedback
 A system for situational  Makes problems,
awareness enhancement: abnormalities or deviations
people feel comfortable only if from standards visible to
issues are clear upfront everyone, so that corrective
action can be taken
immediately
 Ensures a safe and
comfortable working
environment

Week 3 Lean Manufacturing/ Process Improvement Slide 60

Visual Management (cont.)
Visual Controls
 The main purpose of visual controls is to organize
the working area so that people (even outsiders) can
tell whether things are going well or something is a
miss.
 Ability to walk out onto the floor, and in a matter of
minutes, determine the status of the operations:
• What might be abnormal?
• How the material is flowing?
• What job is currently being worked on?
• What job is next to be worked on?

Week 3 Lean Manufacturing/ Process Improvement Slide 61

Potential Benefits of Visual Controls
 Helps identify problems to be resolved
 Reduce manufacturing costs
 Reduce possible waste
 Shorten the production lead time and meeting
the delivery due date
 Reduce inventory
 Ensure a safe and comfortable working
environment
 Increase the company's profit

Week 3 Lean Manufacturing/ Process Improvement Slide 62

Visual Control can be used for ….
 Situational awareness enhancement
 Combined use with 5S
 Office/Service Management
 Operations and Engineering Management (e.g.
dispatching, shop floor control, project management).
 Management, control, and Maintenance of Tools and
Equipment.
 Quality Management (e.g. control charts, cause-effect
diagrams, histograms, etc.).
 Safety warning and Management of the working
Environment.
 Cost and Profit Evaluation.

Week 3 Lean Manufacturing/ Process Improvement Slide 63

How to use Visual Controls

 A key aspect of visual control is that of shop floor

performance measurements, accomplished
through the displayed of a handful of measures
on the shop floor for every one to see and
understand
 The utilization of a visual control board or
communication board will provide the means for
displaying performance status and
communication problems

Week 3 Lean Manufacturing/ Process Improvement Slide 64

Single Piece Flow
 “Single Piece Flow” reduces process
variability

GRAPH 1 GRAPH 2

Week 3 Lean Manufacturing/ Process Improvement Slide 65

Stability is Important
 Steady customer  Rapid & predictable
demand response of problem
 Reliable equipment  High operational
 Reliable supplier availability
 Fixed flow path  Stable product mix
 Low level of rejects and  Process in control and
rework capable
 Low turnover of  Work is consistent
workforce repeatable
 Low absenteeism  Stable organization
structure and practices

Week 3 Lean Manufacturing/ Process Improvement Slide 66

Single Piece Flow

o A philosophy that rejects batch, lot or mass

processing as wasteful
o States that product should move (flow)
from operation to operation, only when it is
needed, in the smallest increment
o One piece is the ultimate (one-piece-flow)

Week 3 Lean Manufacturing/ Process Improvement Slide 67

Single Piece Flow
• Consider (5) different products / services delivered each week
• Five of each type have to be completed prior to delivery
Multi-tasking
Monday Tuesday Wednesday Thursday Friday

Single Piece Flow

• Products / services delivered • Quality is better controlled

sooner • No change over time
• Value is realized sooner

Week 3 Lean Manufacturing/ Process Improvement Slide 68

Continuous Flow

“Continuous Flow”
is the
Essence of
“Single Piece Flow”
Week 3 Lean Manufacturing/ Process Improvement Slide 69
Continuous Flow

• Rapid product movement through the plant

• Less inventory (no buildup between processes linked in
continuous flow)
• Problems surface quickly so they can be fixed
• Steady production
• Facilitates standardized work
Week 3 Lean Manufacturing/ Process Improvement Slide 70
Continuous Flow v/s Traditional Production
 Traditional Production:
• Workers are separated and can’t help each other
• Inventory build up / ad hoc
• Much wasteful movement of product
• Problems are hidden
• Information stagnation
 Continuous Flow:
• Workers are closely coupled. Can help each other
• Less inventory, all for a purpose
• Little or no wasteful movement of product
• Problems surfaced quickly to be solved
• Information is current. Action is quick and focused

Week 3 Lean Manufacturing/ Process Improvement Slide 71

Continuous Flow Enabler

 Man : Multi-skilled workers can perform multiple

processes, thus offering great flexibility.
 Machine : Machine layout follows the
processing sequence
 Material : Product move from process to
process one at a time
 Layout : Separate work area placed in a
compact layout that create “flow” along the “U”

Week 3 Lean Manufacturing/ Process Improvement Slide 72

Standardized Work

 The most effective way to work at particular

operation, given safety, quality and volume
requirements.
 Repeatable work elements performed within
Takt-Time.
 A continuous foundation for improving work,
eliminating waste and solving problems rapidly.

Week 3 Lean Manufacturing/ Process Improvement Slide 73

Elements of Standardized Work

 Elements of Operation: The standardized time

to complete each element of the work.
 Takt-Time Requirement: The production time,
based on monthly customer requirements.
 Standard In-process Stock: Work in progress
(only the minimum necessary amount) is placed
at different buffers to cover changeover and
setup time.

Week 3 Lean Manufacturing/ Process Improvement Slide 74

Standardized Work Chart

Week 3 Lean Manufacturing/ Process Improvement Slide 75

Automation: A Continuous Flow Enabler?
• Automation can help achieve an
efficient and flexible continuous flow
• It may also inhibit continuous flow
• You must consider interaction
between material flow and operators

Caution:
• Level 4 and 5 automation increases
capital cost and complexity
• Decrease in customer demand
leads to underutilized fully
automated machine
• Level 3 automation can achieve
many of the benefits offered by full
automation

Week 3 Lean Manufacturing/ Process Improvement Slide 76

Levels of Automation

Week 3 Lean Manufacturing/ Process Improvement Slide 77

Levels of Automation
Level 2 work sequence (Operator uses one hand)

Week 3 Lean Manufacturing/ Process Improvement Slide 78

Levels of Automation
Level 3 work sequence (Operator uses both hands
to load and unload)

Week 3 Lean Manufacturing/ Process Improvement Slide 79

Guidelines for Machines
• Use Small Equipment dedicated to a single task rather
than large multi-task equipment
• Introduce auto eject (Level 3 Automation) whenever
operators must use both hands to handle parts
• Install one touch automation where possible
• Avoid batching
• Incorporate sensors to signal abnormal conditions and
even automatically stop machines if necessary, so
operators don’t need to watch machines during their cycle
• Design in Maintainability
• Strive to device machine changeover between different
end items that take less than one takt time cycle
Week 3 Lean Manufacturing/ Process Improvement Slide 80
Guidelines for Materials
• Present Parts as close as possible to the point of use, but
not in the walking path of the operator
• Present parts so operators can use both hands
simultaneously
• Try to keep all part variations at the operator’s finger tips
at all times to eliminate changeover time (Kitting/
Sequencing)
• Do not have operators get or restock their own parts
• Keep no more than two hours of materials at the point of
use

Week 3 Lean Manufacturing/ Process Improvement Slide 81

Guidelines for Materials
• Do not put additional part storage in or near the process
because this makes the operation of the cell or line harder
to understand and encourage operators to get their own
parts
• Utilize Kanban to regulate parts replenishment
• Size parts containers for the convenience of the operators
or as a multiple of finished goods pack-out quantity, not for
the convenience of material handler or the supplying
process
• Do not interrupt operator work cycle to replenish parts

Week 3 Lean Manufacturing/ Process Improvement Slide 82

Cellular Manufacturing
 Cellular manufacturing consists of a series of product-focused work
groups -- cells -- which house all operations to manufacture a family
of products. The cell is dedicated to manufacturing those products
requiring similar operations. While a traditional manufacturing
environment is organized functionally with similar machines in one
area (for example, all molding machines in the Molding Dept.),
cellular manufacturing operates like a series of plants-within-a-
plant, each starting with raw materials and ending with finished
product, with all operations being performed in the cell.
 Machines in manufacturing cells are located within close proximity
to minimize product transportation (a form of manufacturing waste)
and to maintain continuous flow with zero inventory between
operations. The manufacturing cell is operated by a team of
empowered, multi-skilled operators who have complete
responsibility for quality and delivery performance within the cell.

Week 3 Lean Manufacturing/ Process Improvement Slide 83

Benefits of Cellular Manufacturing
 Cells shorten the distance a part or product has to move.
This reduces materials handling costs, allows quicker
feedback on potential quality problems, reduces Work-In-
Process inventories, permits easier scheduling, and
reduces throughput time.
 Cells organize the locating of materials at the point of
use. This makes it easy to see the work ahead.
 Cell teams better understand the whole process of
making parts/assemblies.
 Cell members feel responsibility to a small group, rather
than to an impersonal company. Understandable, logical
participation leads to a feeling of empowerment.

Week 3 Lean Manufacturing/ Process Improvement Slide 84

4 Dimensions of Cells
 Man
• Operators are cross-trained on support as well as manufacturing equipment. Leaders and
facilitators encourage teamwork, in a professional and fair manner. They also post a matrix
of skill requirements, matched with cell operators‘ capabilities and schedules. In addition,
Standard Work Instructions are prominently displayed.
 Material
• Materials management practices reduce work-in-process buffers. Material flow in the cell is
streamlined to minimize travel distances, and team members take full responsibility for
quality of parts.
 Machine
• The layout of the cell arranges equipment to be immediately adjacent, permitting smooth
material flow with minimum buffers. Utilities effectively support the equipment, with
emphasis on conserving resources.
 Method
• Procedures associated with the cell help eliminate waste. The most apparent waste is
defective parts, so quality procedures detect (and minimize) any potential errors. Cell
operators participate in product design improvements, as well as process improvements.
Equipment operators perform routine maintenance, as well as housekeeping for their
respective areas. Time is not wasted on excessive reports.

Week 3 Lean Manufacturing/ Process Improvement Slide 85

Cellular Manufacturing Example

Week 3 Lean Manufacturing/ Process Improvement Slide 86

Guidelines for Cell Layout
• Place machines and work stations close together to
minimize walking distance
• Remove obstacles from the efficient operator walking path
• Try to keep the inside width of a cell at around five feet to
allow flexibility in relocating work elements among team
members
• Eliminate spaces and surfaces where work in process
inventory can accumulate

Week 3 Lean Manufacturing/ Process Improvement Slide 87

Guidelines for Cell Layout
• Maintain consistent heights for work surfaces and
points of use
• Locate the leadoff and final processes near one
another
• Avoid up and down and front to back transfers of the
work piece
• Use gravity to assist operators in placing parts and
moving materials whenever possible
• Install flexible utility drops from the ceiling to make
layout adjustments easier

Week 3 Lean Manufacturing/ Process Improvement Slide 88

Guidelines for Cell Layout
• Keep hand tools as close as possible to the point of use
and orient them in the direction that they are used by
operators
• Use dedicated hand tools instead of tools that require bit
changes, and combine two or more tools whenever
possible
• Absolutely ensure safety and good ergonomics
• Keep manual, operator based work steps close together to
allow flexible work element distribution and value added
work
• Segregate level 5 automation and continuous cycle
operations from manual operators or manual based
operators
Week 3 Lean Manufacturing/ Process Improvement Slide 89
Example: Efficient Cell Layout

Week 3 Lean Manufacturing/ Process Improvement Slide 90

PULL SYSTEM
Supplies and components are ‘pulled’ through system to
arrive where they are needed when they are needed

Goal: Achieve the minimal level of resources required to

add the necessary value in the production system.

Week 3 Lean Manufacturing/ Process Improvement Slide 91

PUSH VS PULL SYSTEM
 Push System
• traditional approach
• “move the job on when finished”
• problems - creates excessive inventory

 Pull System
• coordinated production
• driven by demand (pulled through system)
• extensive use of visual trigger
• production/withdrawal kanban

Week 3 Lean Manufacturing/ Process Improvement Slide 92

BENEFITS OF PULL SYSTEM
 Smaller inventories
 Shorter lead times
 Improved quality
 Reduced space requirements
 Lower production costs
 Increased productivity
 Greater flexibility

Week 3 Lean Manufacturing/ Process Improvement Slide 93

TYPES OF PULL SYSTEMS
 Replenishment Pull System where consumption of the
end items trigger replenishment of product. (Customer
frequently order same types of products – repeat order)

 Sequential Pull System where products are paced and

built based on customer demand. (Customers orders
many types of products infrequently)

 Mixed Pull System where both replenishment pull

system and Sequential pull systems are utilized in
conjunction with each other

Week 3 Lean Manufacturing/ Process Improvement Slide 94

TYPES OF PULL SYSTEMS
 Replenishment Pull System where consumption of the
end items trigger replenishment of product. (Customer
frequently order same types of products – repeat order)

 Sequential Pull System where products are paced and

built based on customer demand. (Customers orders
many types of products infrequently)

 Mixed Pull System where both replenishment pull

system and Sequential pull systems are utilized in
conjunction with each other

Week 3 Lean Manufacturing/ Process Improvement Slide 95

MANAGING PULL SYSTEMS (KANBAN)
 Kanban is the integral part of the Pull System.
 Kanban are cards attached to containers which acts as
a signal for replenishment right amount of products at
the right time

Week 3 Lean Manufacturing/ Process Improvement Slide 96

PURPOSE OF KANBAN

 Prevent over production

 Provide specific information between processes
based on replenishment principle
 Serves as a visual control tool

Week 3 Lean Manufacturing/ Process Improvement Slide 97

TYPES OF KANBAN

 Production Kanban – Card indicating the

number of parts that are needed to be produced
what customers have pulled
 Withdrawal Kanban – Cards indicating the
number of parts to be removed of supplied to
the down stream (next) process
 Signal Kanban – Cards indicating number of
parts to be produced at a batch operation to
replenish what has been pulled by the customer

Week 3 Lean Manufacturing/ Process Improvement Slide 98

Kanban Operation
 The consuming process should withdraw the needed
products/units from the supplying process at the
right point in time using a Kanban signal.
 Kanban cards, if used, always accompany
containers from the supplier until removed from the
Kanban staging area, thus ensuring visual control.
 Each container must have a Kanban card, indicating
the part number and description, consumer and
producer location, and quantity.

Week 3 Lean Manufacturing/ Process Improvement Slide 99

Kanban Operation (Contd.)

 The parts should always be pulled by the

succeeding process (consumer).
 No parts are produced without a Kanban signal.
 No defective parts may be sent to the consuming
process.
 The producer may only produce the quantities
withdrawn by the consuming process.

Week 3 Lean Manufacturing/ Process Improvement Slide 100

Kanban Sizing
 Step 1:
(Designed daily production requirement * Replenishment rate )
Available time
= Kanban quantities
 Step 2:
Kanban quantities
Lot size = # of cards

Note: Lot size > 1 may be required due to weight, size

Week 3 Lean Manufacturing/ Process Improvement Slide 101

Calculation for number of cards

 k = DL(1 + S)/C
 k = Number of kanban card sets
 D = Average number of units demanded over some time period
 L = Lead time to replenish an order (expressed in the same units as demand)
 S = Safety stock expressed as a percentage of demand during the lead time
 C = Container size
A bottling plant fills 2,400 bottles every two hours. The lead time is 40 minutes and a
container accommodates 120 bottles. The safety stock is 10 percent of expected demand.
How many kanban cards are needed?

D = If the average number of units demanded is 2400 and the time period is 2 hours, then
that's the same as 1200 in an hour, 1200 in 60 minutes, 20 in one minute.
L = 40
S = 0.1
C = 120
k = 20 * 40 (1 + 0.1) / 120
Week 3 Lean Manufacturing/ Process Improvement Slide 102
Quick Changeover
 Quick Changeover is one of the core concepts of lean
manufacturing
 A rapid and efficient way of converting a process from
running the current product to running the next product
 Also known as “single minute exchange of dies” (SMED)
– derived from the desire to change over any process
within minutes instead of hours
 Reduces the waste of inventory by creating shorter
production runs that better align with customer demand

Week 3 Lean Manufacturing/ Process Improvement Slide 103

Components and Implementation

 Changeover and Changeover Time

 Traditional Setup
 SMED (Single Minute Exchange of Dies)
 SMED Process Steps
 Ideas for Improvement

Week 3 Lean Manufacturing/ Process Improvement Slide 104

Changeover Defined

• Definition:
– Changeover is the total process of converting a
machine or line from running one product to another

Week 3 Lean Manufacturing/ Process Improvement Slide 105

Changeover Time Defined

 Definition:
• Changeover time is the total elapsed time between the last unit
of good production of the previous run, at normal line efficiency,
to the first unit of good production of the succeeding run, at full
line efficiency.
 Objective:
• Reduce changeover from hours to single minutes

Week 3 Lean Manufacturing/ Process Improvement Slide 106

Before SMED

 Typical changeover: 1 – 2 hours

Week 3 Lean Manufacturing/ Process Improvement Slide 107

After SMED

 Typical changeover: minutes... Or seconds

Week 3 Lean Manufacturing/ Process Improvement Slide 108

Benefits of Setup Reduction

 Better quality
• Very defined setup processes
 Lower cost
• Less scrap and inventory
 Better flexibility
• Rapidly change from product to product
 Better worker utilization
• Less time spent on setup or waiting for the run to start
 Shorter lead time and more capacity
 Less process variability
Week 3 Lean Manufacturing/ Process Improvement Slide 109
SMED is Continuous Improvement

 It is a customer-driven requirement. Customers

are demanding:
• Product and service diversity
• Lower costs
• Higher reliability and quality.
 So organizations must:
• Produce smaller lots, more frequently.
• Expand the scope and diversity of products
• Reduce quality defects.

Week 3 Lean Manufacturing/ Process Improvement Slide 110

Traditional approach

 Setup is given and fixed

 Therefore,
• Use highly skilled setup personnel
• Minimize product variety
• Combine lots
• Make large batches

Week 3 Lean Manufacturing/ Process Improvement Slide 111

Another way

 Setups CAN be improved!

 Small lot production REQUIRES short setups
 Setup time reduction of 90% and more is
common

Week 3 Lean Manufacturing/ Process Improvement Slide 112

6 “Traditional” Setup Steps
 Preparation
• Ensures that all the tools are working properly and are in the right location.
 Extraction
• The removal of the tooling, raw material, and support equipment after the
production lot is completed.
 Mounting
• The placement of the new tool, support equipment, and raw material before the
next production lot.
 Establishing Control Settings
• Setting all the process control settings prior to the production run.
 First Run Capability
• This includes the necessary adjustments required after the first trial pieces are
produced.
 Setup Improvement
• The time after processing during which the tooling, machinery is cleaned,
identified, and tested for functionality prior to storage.

Week 3 Lean Manufacturing/ Process Improvement Slide 113

The SMED Process

 Step 1 – Observe and record.

 Step 2 – Separate internal and external
activities.
 Step 3 – Convert internal activities to external
activities.
 Step 4 – Streamline all activities.
 Step 5 – Document internal and external
procedures.

Week 3 Lean Manufacturing/ Process Improvement Slide 114

Step 1: Observe and Record

 Team-work
• Recorder
» Record overall duration (from last product to first good product).
» Video recorders work very well
» Describe the change (from what to what?).
• Timers
» Time each step
• Fact collectors
» Breakdown the steps into actions – as much detail as possible.
» Use a layman to ask uninformed questions – challenge the
“accepted norm”.

Week 3 Lean Manufacturing/ Process Improvement Slide 115

Step 1

• Timers.
• Aim to have 10-20 steps for each changeover.
• Record the elapsed time. Calculate the step time later.

Step Description Time Bar Chart

Elapsed Step

1 Remove guards 3min 42sec 3min 42sec

2 Loosen bottom bolts 12min 12sec 8min 30sec

3 Lower ram 19min 29sec 7min 17sec

4 Loosen top bolts 31min 13sec 11min 44sec

Week 3 Lean Manufacturing/ Process Improvement Slide 116

Step 1: Fact collectors.
• Have a number of fact collectors to ensure elements are not
missed.
• One fact per Post-it – write clearly, be concise.
• Record everything.
▫ E.g. For the “remove guards” step – fact collectors may record the following
elements:
1. Walk to control panel
2. Switch machine off
3. Wait for flywheel to stop
4. Get spanner from toolbox
5. Remove 3 hex bolts
6. Get Allen key
7. Remove 5 Allen bolts
8. Remove guard
9. Walk to rear of machine
10. Place guard on the floor
11. Walk to front of machine

Week 3 Lean Manufacturing/ Process Improvement Slide 117

Step 2: Separate internal and external activities

 Internal set-up activities.

• Elements in the changeover which can only be done when the
machine is stopped.
 External set-up activities.
• Elements that can be performed when the machine is running.

Week 3 Lean Manufacturing/ Process Improvement Slide 118

Step 3: Convert internal to external

 Study each internal step and ask if it could be

external.
• Common issues:
» Dies in remote storage racks.
» Spanners not available.
» Raw material checks.
» Lifting equipment not available.

 Ask why the remaining internal steps can’t be

external.
• Re-examine the true function of each step.
• Common issues:
» Cold dies – using material to heat the dies.
» No record of settings.
Week 3 Lean Manufacturing/ Process Improvement Slide 119
Step 4: Streamline all activities

 Analyze the activity, and discuss all possible

ways of improving the step.
 Study the external activities as well as the
internal activities.
 Common issues:
• Fastenings – Are bolts needed? If so remember that only the
last turn tightens a nut or bolt.
• Standardize bolt heads.
• Standardize die heights.
• Equipment and material availability and accessibility.

Week 3 Lean Manufacturing/ Process Improvement Slide 120

Step 5: Document the procedures

 Write down the new internal and external

procedures.
 Fill in an action sheet to ensure that the new
procedures can be achieved.
 Review the whole activity to determine “What
went well?”, “What went badly?” and changes
that the team would make before the next SMED
activity.

Week 3 Lean Manufacturing/ Process Improvement Slide 121

Priorities

 Eliminate all unnecessary elements of

changeover
 Externalize all possible elements
 Simplify what remains
 Measure, measure, measure

Week 3 Lean Manufacturing/ Process Improvement Slide 122

Total Productive Maintenance (TPM)
 TPM is a method for continuously improving the effectiveness of
production equipment and processes
 The key difference between TPM and other maintenance programs
is that TPM requires the involvement of all people in the organization
 TPM aims to achieve a 100% on-demand equipment availability by
eliminating:
• Equipment breakdowns and other unplanned downtime
• Scrap and rework by poor equipment performance
• Reduced productivity due to running at reduced speeds, idling,
or stoppages requiring operator attention
• Equipment startup losses

Week 3 Lean Manufacturing/ Process Improvement Slide 123

 TPM Benefits
• Improved quality through equipment producing parts with
less variation
• Improved productivity by eliminating equipment downtime,
stoppages, and reduced line speed
• Improved employee satisfaction through successful
production
• Reduced inventory from reduction in buffers designed to
accommodate equipment downtime
• Improved delivery due to improved schedule attainment

Week 3 Lean Manufacturing/ Process Improvement Slide 124

TPM Benefits

Lower
operating Faster, more
Reduced
costs dependable
inventory
throughput

Improved Maintenance Higher

capacity productivity

Continuous Improved
improvement quality

Week 3 Lean Manufacturing/ Process Improvement Slide 125

TPM Prerequisites

 Long term top management commitment

• World class implementations can take years!
• TPM can take hold in 6 to 18 months

 Dedicated people
• A project champion to drive and coordinate the project

 Flexible and cross-trained team members

Week 3 Lean Manufacturing/ Process Improvement Slide 126

Types of Maintenance Strategies

• Breakdown Maintenance
– Reactive “wait until it breaks” strategy
• Preventative Maintenance
– Traditional scheduled periodic maintenance
• Predictive Maintenance
– Using monitoring equipment coupled with historical
data to predict life cycle of components

Week 3 Lean Manufacturing/ Process Improvement Slide 127

Types of Maintenance Strategies

 Corrective Maintenance
• Modification or improvement of equipment based on root cause
analysis of failures
 Maintenance Elimination
• Equipment designed to eliminate all forms of maintenance

Week 3 Lean Manufacturing/ Process Improvement Slide 128

Implementing TPM

1. Select Facilitator
2. Select first TPM area and team
3. Develop goals and schedule
4. Train team members and operators in
autonomous maintenance
5. Train maintenance technicians in preventative
maintenance
6. Train maintenance technicians in predictive
maintenance

Week 3 Lean Manufacturing/ Process Improvement Slide 129

1. Select Facilitator

 Project champion to launch and lead TPM

initiative
• Knowledgeable of TPM
• Educates the entire plant on the basics of TPM
• Educates the first team on the details of TPM

Week 3 Lean Manufacturing/ Process Improvement Slide 130

2. Select First TPM Area and Team
 First area must be able to be shut down for several days
 Area where downtime and quality are major problems
 Must have 5S program in place
 Team must have representatives from all shifts
 Team must be able to stay together after the TPM event
 Must include someone familiar with the technology of the
equipment
 Include others who are unfamiliar with the equipment to
add a “new set of eyes”

Week 3 Lean Manufacturing/ Process Improvement Slide 131

3. Develop Goals and Schedule

 Develop goals based on quantifiable

performance measures
• Equipment Availability
• OEE
 Typical event schedule is 3 – 5 days long, all day
 Team then meets weekly to review ongoing
progress

Week 3 Lean Manufacturing/ Process Improvement Slide 132

4. Autonomous Maintenance

 Initial Equipment Cleanup

• Improves ability to perform regular inspections
• Allows the discovery of potential problems
• Log problems and potential problems and develop an
immediate action plan
• Mark all lubrication, fluid connections and directions, etc
• Paint equipment

Week 3 Lean Manufacturing/ Process Improvement Slide 133

4. Autonomous Maintenance

 Reduce Causes of Contamination

• Review equipment oil or other fluid leaks
• Review how raw material waste is handled
• Review airborne particulates and dust
 Develop Standards and Checklists
• Cleaning
• Lubrication
• Visual
• Procedures to keep equipment “as new”

Week 3 Lean Manufacturing/ Process Improvement Slide 134

4. Autonomous Maintenance
 Develop Equipment Operating Skills for Operators
• Training on
» Visual checks
» Hydraulics
» Electrical / electronics
» Mechanical drive systems
» Complex lubrication
» Safety
• Procedures for minor repair and replacement
• Criteria delineating operator and technician approved activities
 Implement Daily Operator Activities
• Review checklists with operators
• Ensure operator training is complete
• Finalize checklist schedules
Week 3 Lean Manufacturing/ Process Improvement Slide 135
5. Preventative Maintenance Training

• Provide Technical Support to Operators

– Support questions
– Clear communication paths to maintenance
technicians
• Spare Parts Management Program
– 5S methods
– Critical spares list based on historical data and
equipment manufacturer recommendation
– Kanban for spare parts

Week 3 Lean Manufacturing/ Process Improvement Slide 136

5. Preventative Maintenance Training

 Eliminate Equipment Deterioration

• Scheduled general inspections
• Equipment overhauls
• Triggered by checklists
 Identify and Resolve Chronic Problems
• Breakdown history log
• Root cause analysis methods
• 5 Why analysis

Week 3 Lean Manufacturing/ Process Improvement Slide 137

6. Predictive Maintenance Training

 Develop and Analyze Equipment History

• Plot failure history
• Correlate with Equipment Quality Performance
 Determine Equipment Parameters That Predict
Failure
• Use information from equipment manufacturer
• Oil, vibration, temperature analysis
 Develop Equipment Monitoring Systems
• Ensure appropriate accuracy and tolerance
• Lease equipment to ensure usability before purchase

Week 3 Lean Manufacturing/ Process Improvement Slide 138

TPM Management
 All activities involved in keeping a system’s
equipment working
 Objective: Maintain system capability & minimize
total costs
 Failure has far reaching effects on a firm’s
• operation
• reputation
• profitability
• customers
• product
• employees
• profits
Week 3 Lean Manufacturing/ Process Improvement Slide 139
Good Maintenance & Reliability Strategy

 Requires:
• Employee involvement
• Maintenance and reliability procedures
 To yield:
• Reduced inventory
• Improved quality
• Improved capacity
• Reputation for quality
• Continuous improvement

Week 3 Lean Manufacturing/ Process Improvement Slide 140

Employee Involvement

 Information sharing
 Skill training
 Reward system
 Power sharing

Week 3 Lean Manufacturing/ Process Improvement Slide 141

Maintenance & Reliability Procedures

 Clean and lubricate

 Monitor and adjust
 Minor repair
 Computerized records

Week 3 Lean Manufacturing/ Process Improvement Slide 142

Maintenance Metrics
OEE (Overall Equipment Effectiveness)

Number of failures
Failure Rate(%) = ------------------------------------ * 100%
Number of units tested
Number of failures
Failure per operating hr= ---------------------------------------
FR(N) Operating Time

1
Mean Time Between Failure= -------------
FR(N)
Total Operational Time
Mean Time Between Failure(MTBF) = --------------------------------
Total # of Failures

Total Maint Time

Mean Time to Repair (MTTR)= ----------------------------
Total # of repairs

Week 3 Lean Manufacturing/ Process Improvement Slide 143

OEE (Overall Equipment Effectiveness)

Week 3 Lean Manufacturing/ Process Improvement Slide 144

OEE (Overall Equipment Effectiveness)

Week 3 Lean Manufacturing/ Process Improvement Slide 145

OEE : Example

Week 3 Lean Manufacturing/ Process Improvement Slide 146

Summary
o OEE/ OLE is a measure to evaluate the productiveness of a
machine or production line

o OEE/ OLE accounts for losses due to availability,

performance, and quality

o OEE/ OLE = Availability rate X Performance rate X Quality

rate

o There are 6 key losses

o Breakdowns
o Changeovers
o Production-initiated stops
o Reduced speed
o Quality loss and rework
o Start-up Quality losses

Week 3 Lean Manufacturing/ Process Improvement Slide 147

Week 3 Lean Manufacturing/ Process Improvement Slide 148