Lean

Manufacturing
Agenda
 Background
 Toyota Production System
 Key Lean Techniques
 Advantages and Disadvantages
 People and Customers
 Economics
 Changes in Lean
 Current Lean Practices
 Case Studies
 Definition
 LEAN MANUFACTURING – A way to eliminate
waste and improve efficiency in a manufacturing
environment
 Lean focuses on flow, the value stream and
eliminating muda, the Japanese word for waste
 Lean manufacturing is the production of goods using
less of everything compared to traditional mass
production: less waste, human effort, manufacturing
space, investment in tools, inventory, and engineering
time to develop a new product
Lean and Just-in-Time
 Lean was generated from the Just-in-time
(JIT) philosophy of continuous and forced
problem solving
 Just-in-time is supplying customers with
exactly what they want when they want it
 With JIT, supplies and components are
“pulled” through a system to arrive where
they are needed when they are needed
What is Waste?
 Waste is anything that
happens to a product
that does not add value
from the customer’s
perspective
 Products being stored,
inspected or delayed,
products waiting in
queues, and defective
products do not add
value
 Seven Wastes
 Overproduction – producing more than the customer
orders or producing early. Inventory of any kind is
usually waste.
 Queues – idle time, storage, and waiting are wastes
 Transportation – moving material between plants,
between work centers, and handling more than once is
waste
 Inventory – unnecessary raw material, work-in-process
(WIP), finished goods, and excess operating supplies
 Motion – movement of equipment or people
 Overprocessing – work performed on product that adds
no value
 Defective product – returns, warranty claims, rework
and scrap
Thinking Lean
 Specify value
 can only be defined by the ultimate customer
 Identify the value stream
 exposes the enormous amounts of waste
 Create flow
 reduce batch size and WIP
 Let the customer pull product through the value
stream
 make only what the customer has ordered
 Seek perfection
 continuously improve quality and eliminate
waste
From Lean Thinking by Womack and Jones
Benefits
 Lean provides tangible benefits
 Reduces costs not just selling price
 Reduces delivery time, cycle time, set-up time
 Eliminates waste
 Seeks continuous improvement
 Improves quality
 Improves customer ratings and perceptions
 Increases overall customer satisfaction
 Improves employee involvement, morale,
and company culture
 Helps “transform” manufacturers
Barriers to Lean
 Implementing Lean Can Be Difficult
Because it is Counterintuitive from a
Traditional Paradigm:
 Buying multiple small machines rather than one
big machine that offers economies of scale.
 Shutting down equipment when maximum
inventory levels are reached rather than running
flat out.
 Using standards to continuously improve.
 There is no step-by-step cook book
 There are some basic steps but the how-to
varies from organization to organization
 Requires an assessment of the company in
order to map out the strategy
Implementing Lean
 Gain top Management “Buy In” and Support
 Perform overall company assessment tied to company
strategic, operational, and marketing plans
 Develop strategic lean deployment plan
 Integrate customized training with lean to improve specific
skill sets, leverage training resources
 Team Building, Communications, Problem Solving,
Change Management, Lean Manufacturing Tools
 Conduct “Kaizen blitz” high impact events
 5S, Manufacturing Cell, Set-Up Reductions, Inventory
Reductions, Work Standardization
 Use an enterprise wide approach to help “Transform” a
client’s culture and the way they do business.
Progress Toward Lean
 Smaller lot sizes
 Increased capacity / throughput
 Higher inventory turns
 More available floor space
 Improved workplace organization
 Improved quality : reduced scrap / re-work
 Reduced inventories : raw, WIP, FG
 Reduced lead times
 Greater gross margin
 Improved participation & morale
Lean Is A Journey
 The Journey never ends
 Toyota estimates it is only 50% waste-
free
 Where can we begin? Where can we
improve?
Origins

Lean Manufacturing is
sometimes called the
Toyota Production
System (TPS) because
Toyota Motor
Company’s Eiji Toyoda
and Taiichui Ohno are
given credit for its
approach and
innovations
 Underlying Principles to TPS
 Work shall be completely specified as to
content, sequence, timing, and outcome
 Every customer-supplier connection, both
internal and external, must be direct and
specify personnel, methods, timing, and
quantity of goods or services provided
 Product and service flows must be simple and
direct – goods and services are directed to a
specific person or machine
 Any improvement in the system must be
made in accordance with the “scientific
method” at the lowest possible level in the
organization
 Toyota Production System
 Since the Toyota Production System
requires that activities, connections,
and flow paths have built-in tests to
signal problems automatically, gaps
become immediately evident.
 Results of the TPS are improvements in
reliability, flexibility, safety, and
efficiency.
 These lead to increase in market share
and profitability.
Timeline
Key Lean Manufacturing
Techniques
5S
Single Minute Exchange of Dies
Kanban
Cellular Manufacturing
Kaizen
5S
 5S
Strategy for creating a well organized, smoothly
flowing manufacturing process
Why 5S?
• To eliminate the wastes that result
from “uncontrolled” processes.
• To gain control on equipment,
material & inventory placement and
position.
• Apply Control Techniques to Eliminate
Erosion of Improvements.
• Standardize Improvements for
Maintenance of Critical Process
Parameters.
5S Examples
Before After
5S Examples
Before After
5S Examples
Before After
Sort
 When in doubt, move it out
 Prepare red tags
 Attach red tags to unneeded items
 Remove red-tagged items to “dinosaur
burial ground”
 Evaluate / disposition of red-tagged
items
Straighten
 Make it obvious where things belong
 Lines
○ Divider lines
○ Outlines
○ Limit lines (height, minimum/maximum)
○ Arrows show direction
 Labels
○ Color coding
○ Item location
 Signs
○ Equipment related information
○ Show location, type, quantity, etc.
Shine
 Clean everything, inside and out
 Inspect through cleaning
 Prevent dirt, and contamination from
reoccurring

 Results in
○ Fewer breakdowns
○ Greater safety
○ Product quality
○ More satisfying work environment
Standardize
 Establish guidelines for the team 5-S
conditions

 Make the standards and 5-S guidelines

visual

 Maintain and monitor those conditions

Sustain
Determine the methods your team will
use to maintain adherence to the
standards
 5-S concept training
 5-S communication board
 Before and after photos
 One point lesson
 Visual standards and procedures
 Daily 5-minute 5-S activities
 Weekly 5-S application
Benefits of 5S

 Increases organization and efficiency

 Avoids wasted motion
 Increases safety
 Eliminates unnecessary inventory
 Offers improvements at an inexpensive
cost
5S Drawbacks
 If not fully implemented, may result in
“Jive S”
 Store things
Stick to the rules

Superficially clean

Switch to new fixtures

Serve reluctantly
 Can not be considered an end goal –
must be part of a continuous
improvement movement
Single Minute Exchange of Dies
(SMED)
Single Minute Exchange of Dies
(SMED)
Method that focuses on the rapid conversion
from manufacturing one product to the next
SMED and Lean
 SMED needs to be treated as a
constant improvement program
 Setup times can not be
minimized overnight
 Continuous evaluation and
exploration of further
improvements is absolutely
necessary
Simple CNC Example

 New batch of parts arrives

 Change over tools for the batch
 Set offsets for new tools
 Load NC program
 Validate
 Run parts
 Load part onto machine
 Cycle start and wait
 Unload and visually inspect (adjust if necessary)
External elements of work can be completed while the machine is still running e.g.
get the next tool, get all your clamps, get lifting equipment in place, put equipment
away, etc.

Internal elements of work can only be done while the machine is stopped e.g. change
the tool, adjust the machine depth, sharpen a tool (which requires the machine to be
stopped), etc..
SMED Examples
SMED Examples
SMED
Examples
SMED Examples
For example:
 A slide clamp reduced the time required to load and unload parts to fixture.
 2 hold-down clamps eliminated the need to tape parts during a glue-up operation.
 Set slide allows quick (temporary) alignment of 2 parts.
SMED Examples
 Split thread bolts
 Handles
 Toggle clamps
 U-shaped washers
 Make the tool part of the screw device -- you don’t need a tool, and
this will save time in disassembling and reassembling the tooling and
fixturing!
05/30/10 25
Reduce the
amount of
turns required
in order to
activate the
screw.
Reduce the
amount of
screw turns and
eliminate the
tool!
0 28
Benefits of SMED

 Increases throughput by reducing setup times

 Eliminates setup errors
 Increases safety
 Reduces the cost of setups
 Reduces waiting times and inventory buildups
 Decreases the required skill level of the
operators
Kanban
 Kanban

 A system that uses replenishment signals

to simplify inventory management
 Signals (usually cards) hold product details
 What to make, when to make it, how much to make, and
where to send it
 Cards stay attached to a bin that holds the product
 When bin is empty, it is returned to the start of the
assembly line for replenishment
 Full bins are returned to the customer, and the cycle
continues
Kanban
Example
Supermarket Ordering System
Benefits of
Kanban
 Highly visible systems
 Simple, effective, and inexpensive
 Reduces inventory and eliminates stock-
outs
 Improves the quality of service
 Improves lead times
Cellular Manufacturing
Cellular
Manufacturing
Dividing the manufacture of products into
semi-autonomous and multi-skilled
teams known as work cells
Cellular Manufacturing
Example

Functional Layout Cellular Layout

Benefits of Cellular
Manufacturing
 Simplifies material flow and
management
 Reduces interdepartmental travel
 Reduces throughput time
 Reduces lot sizes
 Simplifies scheduling
Lean Manufacturing
Advantages and Disadvantages
 Disadvantages:
 Advantages:  Difficulty involved with
 Increased overall changing processes to
productivity implement lean principals
 Reduced amount of  Long term commitment
floor space required required
 Reduced manufacturing  Very risky process -
lead time expect supply chain
 Improved flexibility to issues while changing
react to changes over to lean
 Improved quality
Kaizen
What is Kaizen?
 Kaizen (Ky’zen)
 “Kai” means “change”
 “zen” means “good (for the better)”
 Gradual, orderly, and continuous
improvement
 Ongoing improvement involving
everyone
How to Kaizen
 Identify the customer
 Deming Cycle
 Plan – identify what to change and how to do it
○ Current state
○ Future state
○ Implementation plan
 Do – execute the improvement
 Check – ensure the improvement works
 Act – future and ongoing improvements
 Repeat
Identify the Current State
 Crucial first step in process improvement
 Deep understanding of the existing
processes and dependencies
 Identify all the activities currently involved
in developing a new product
 Observe the process first hand
 Identify Value Added (VA), Non-Value
Added Required (NVA-R), and Non-Value
Added (NVA)
 Generally creates more questions than
answers
Brainstorm and Analyze
 Kaizen team brainstorming to develop new
process
 Post improvement ideas on map or by
category
 Workflow
 Technology
 People / Organization
 Procedures
 Develop detailed future state map
 New workflow
 Value Add and Non-Value Add
 Cycle times
 Identify Kaizen “bursts” (immediate radical change)
Implementation Plan
 Think global / systems optimization
 Maximum impact to process
 Speed of implementation – create small
victories
 Cost-benefit analysis
Execute
 Develop a concise, achievable
milestone plan
 Communicate the plan to everyone
 Suppliers
 Team members
 Customers
 Track activities in public
 Celebrate small victories and publicly
analyze failures
Kaizen Blitz
 Total focus on a defined process to
create radical improvement in a short
period of time
 Dramatic improvements in productivity,
quality, delivery, lead-time, set-up time,
space utilization, work in process,
workplace organization
 Typically five days (one week) long
Kaizen Blitz - Agenda
 Day 1: Setting the scene
 Meet the team, training
 Day 2: Observe the current process
 Flowchart, identify waste, identify root causes
 Day 3: Develop the future state process
 Brainstorm and flowchart (typically the longest
day!)
 Day 4: Implement the new process
 Plan, communicate, implement, modify
 Day 5: Report and analyze
 Performance vs expectations
Roadblocks
 Too busy to study it
 A good idea but the timing is premature
 Not in the budget
 Theory is different from practice
 Isn’t there something else for you to do?
 Doesn’t match corporate policy
 Not our business – let someone else analyze it
 It’s not improvement – it’s common sense
 I know the result even if we don’t do it
 Fear of accountability
 Isn’t there an even better way?
 People

 Transition to Lean is
difficult since a company
must build a culture
where learning and
continuous improvement
are the norm.

Success of lean requires
the full commitment and
involvement of all
employees and of the
company’s suppliers.
How People Benefit from Lean
Element Traditional Lean Improvement

Communication Slow & Uncertain Fast & Positive Quality &

Coordination

Teamwork Inhibited Enhanced Effective Teams

Motivation Negative, Extrinsic Positive, Intrinsic Strong Motivation

Skill Range Narrow Broad Job Enrichment

Supervision Difficult and Easy & Localized Fewer Supervisors

Fragmented
 How Customer’s Benefit
from Lean
Element Traditional Lean Improvement
Response Weeks Hours 70-90%

Customization Difficult Easy Competitive

Advantage
Delivery Speed Weeks-Months Days 70-90%

Delivery Erratic Consistent & High Up to 90%

Reliability
Delivery Large Shipments JIT as Required Locks in JIT
Quantities Customers
Quality Erratic Consistent & High Delighted
Customers
House of Lean
Economics

 Reduction of Inventory
 Less space necessary to hold inventory
 Reduced Waste
 Decreased Production Cost
 Increased market share
 Able to provide what the customer wants quickly
 Increased competitive advantage
 Faster response to the customer
 Lower Cost
 Higher Quality
Changes in Lean since the
beginning
Inventory Comparison
 Inventory Turnover – annual cost of
goods sold from the income
statement divided by the value of
inventory from the balance sheet
Quality Control
 6 sigma process
 Combination of old and new ideas
 6 ingredients
 Genuine focus on the customer
 Data- and fact-driven management
 Process focus, management, and improvement
 Proactive management
 Boundarlyless collaboration
 Drive for perfection, tolerance failure
Lean
Maintenance
A Simultaneous Approach
6 Tools for Lean Maintenance
 Visual Controls
 5S
 Seven Wastes
 Single Minute Exchange of Dies
 Poka-yoke
 Total Productive Maintenance
Other impacts of Lean
 Bell South – service industry
 Management system and operations
Control
 Process management, work measurement,
management control, and people development
 Combines lean and 6 sigma
 Woburn Safari Parks
 Feed logistics
 Animal Resource Planning
Background
 Poli-film America Inc. a division of a German owned company.
 Manufactures protective masking that prevents abrasion and
staining of exposed surfaces during manufacturing and
delivery
 Industries Using Material:
 Plastics
 Automotives
 Construction
 Electronics
 Laminates
 Furniture
 Textiles
 High demand product
 24/7 production
Problems
 An enterprise resource planning system that
encompassed an unstable database
 The database was untrustworthy account of inventory,
hand counts were necessary to confirm the numbers
counted by computers
 Led to many employees spending many hours and led to
low processing and limit of work utilization
 Lack of frequency in supplies and storage – errors in
production and set limits
 Unable to trace items
 Main concern – program’s ability to adapt to
changing processes and production goals while still
maintaining inventory traceability real time data
with multiple distribution sites
Results
 Chose a new program to implement in later 2003

 Greatest impact on company’s inventory flow and order

distribution
 Real time traceability allowed him to cut down on the 2 mil lbs of
film and other materials by more than half and maintain a
sufficient safety stock for when its time to reorder and restock

 Benefits through Lean

 Time and money has seen dramatic cuts
 Instead of 20 min to fill an order, takes less than 5 min currently
 Allowed company to expand for more regional coverage
 Been simplified for reports
 Reduce time taken to accomplish certain tasks and add more
responsibilities