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Title: Principles of Lean Manufacturing with Live Simulation


1
Principles of Lean Manufacturing with Live
Simulation
2
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction to Lean
Manufacturing Implementing Lean Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
3
MEP Lean Websites
http//www.mep.nist.gov For firms http//www.mepc
enters.nist.gov For MEP centers only
4
Recommended Readings
  • Lean Thinking, by Jim Womack
  • Becoming Lean, by Jeffrey Liker
  • The Machine That Changed the World, by Jim Womack
    and Daniel T. Jones
  • The Goal, by Eli Goldratt
  • World Class Manufacturing The Next Decade, by
    Richard Schonberger
  • Others can be found on the Lean website

5
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction to Lean
Manufacturing Implementing Lean Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
6
Orientation
Orientation
to Buzz Electronics Enterprises (BEE)
7
Product Catalog
Buzz Electronics Enterprises
8
Blue Avenger
Buzz Electronics Enterprises
The Blue Avenger
9
Red Devil
Buzz Electronics Enterprises
The Red Devil
10
The Bottom Line
BEE
The Blue Avenger
Sells for 20
Materials cost 5.00
The Red Devil
Sells for 30
Materials cost 7.50
11
Production Process Orientation
BEE
  • Sales Representative Processes Customer Order
  • Production Scheduler Generates Factory Order
    from forecast
  • Kitter(s) Organizes raw materials for Factory
    Orders
  • Material Handler Moves product between ALL
    workstations
  • Spring Assembler Inserts Springs
  • Resistor Assembler Inserts Resistors
  • LED Assembler Inserts LEDs
  • Diode Assembler Inserts Diodes

Assembly
  • Inspector Conducts functional tests
  • Reworker Repairs failed boards
  • Warehouse/Ship Clerk Matches boards to Customer
    Orders
  • Instruction Crib Attendant Controls work
    instructions
  • Production Supervisor Supervises production
  • Industrial Engineer Monitors production process
  • Trucker Ships products to the customer

12
Production Facility Orientation
BEE
Sales Office
Production Control
Kitting Area
Shipping Dock
Finished Goods Whse.
Rework Area
WIP Storage
Diode Assembly
Inspection Area
LED Assembly
Resistor Assembly
Spring Assembly
13
Circuit Board Orientation
BEE
Blue and Red Boards
A
B
C
D
E
1
2
3
4
5
EXAMPLE 1) Insert spring into C3
14
Product Components Orientation
BEE
Springs
Resistors
Diodes
LEDs
15
Product Routing
BEE
Blue
LED
Springs
Resistor
Diodes
x1
x5
x1
x2
Red
Springs
x3
x5
16
Circuit Board Assembly
BEE
The Red Devil
test
A
B
C
D
E
1
2
3
4
5
17
Production Batching
BEE
The Blue Avenger
6 per batch
4 per batch
The Red Devil
18
BEE
Production Scheduling Process
Shipments to customers
Customer order forms
Customer orders (demand)
Factory order forms
Finished Goods Warehouse
Production forecast
19
Customer Service Targets
BEE
Promised shipments to customers
Promised shipments to customers
4 minutes after order
5 minutes after order
All orders are filled first-in, first-out (FIFO)
20
Company Policies
Buzz Electronics Enterprises
  • All shifts are 20 minutes
  • Keep busy at all times
  • Yell if you need parts
  • Handle all parts first-in, first-out (FIFO)
  • Only the Material Handler can move parts
  • Stay at your workstation
  • The boss is always right!

21
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
22
Round One Buzz Electronics
Buzz Electronics is a traditional manufacturing
company.
23
Round One Debrief
  • Discuss results
  • Discuss the process
  • Lessons learned
  • Relationship to real world
  • What if scenarios
  • Continuous improvement

24
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
25
Mass Production
Material
LEDs
Diodes
Springs
Shipping
Receiving
Warehouse
Warehouse
Storage
Repair
Kitting
Testing
Ship
Value-Added Time

Minutes
Time in Plant

Weeks
ORDER
CASH
26
History of Manufacturing
People
Product
Work Environment
27
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
28
Lean Is Market Driven
Every morning in Africa, a gazelle wakes up. It
knows it must run faster than the fastest lion or
it will be killed. Every morning a lion wakes
up. It knows it must outrun the slowest gazelle
or it will starve to death. It doesnt matter
whether you are a lion or a gazellewhen the sun
comes up, you had better be running.
29
Defining Lean
Lean has been defined in many different ways.
A systematic approach to identifying and
eliminating waste (non-value-added activities)
through continuous improvement by flowing the
product at the pull of the customer in pursuit of
perfection. The MEP Lean Network
30
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
  • Any activity that does not add market form or
    function or is not necessary. (These activities
    should be eliminated, simplified, reduced, or
    integrated.)

31
Lean Eliminating the Wastes
Non-Value Added
Value Added
  • Overproduction
  • Waiting
  • Transportation
  • Non-Value Added Processing
  • Excess Inventory
  • Defects
  • Excess Motion
  • Underutilized People

Typically 95 of all lead time is non-value added
32
Brainstorm Wastes
What wastes were apparent in Buzz Electronics?
33
Eight Wastes
Overproduction
motion
Inventory
Waiting
Transportation
defects
Underutilized People
Non-Value Added Processing
34
Overproduction
  • Making more than is required by the next process
  • Making it earlier than is required by the next
    process
  • Making it faster than is required by the next
    process
  • Causes of overproduction
  • Just-in-case logic
  • Misuse of automation
  • Long process setup
  • Unlevel scheduling
  • Unbalanced workload
  • Over engineering
  • Redundant inspections

35
Inventory Waste
  • Any supply in excess of a one-piece flow through
    your manufacturing process
  • Causes of excess inventory
  • Misconception that this protects the company from
    inefficiencies and unexpected problems
  • Product complexity
  • Unleveled scheduling
  • Poor market forecast
  • Unbalanced workload
  • Misunderstood communications
  • Reward system
  • Unreliable shipments by suppliers

36
Inventory Waste in the News
Update Cisco Systems got greedy. And now it's
paying the price. On
Tuesday, the network-equipment giant provided the
grisly details behind its astonishing 2.25
billion inventory write-off in the third quarter,
essentially admitting that it too was caught up
in the Internet hype that, at its peak, gave the
company the highest market capitalization in
Wall Street history.
Eighty percent of the charge came from raw
materials and 20 percent was from work in
process.

Work in process, which primarily consisted of
subassembly boards, checked in at 450 million.

Of the raw
materials, 300 million of the charge was related
to memory products, specifically DRAM, SRAM and
flash-memory chips.
Optical equipment, including lasers and
modulators, represented 450 million.


Electro-mechanical equipment accounted for
150 million.
Non-memory components, including digital signal
processors and other microprocessors, checked in
at 900 million.
37
Defects
  • Inspection and repair of material in inventory
  • Causes of defects
  • Weak process control
  • Poor quality
  • Unbalanced inventory level
  • Deficient planned maintenance
  • Inadequate education/training/work instructions
  • Product design
  • Customer needs not understood

38
Processing Waste
  • Effort that adds no value to the product or
    service from the customers viewpoint
  • Causes of processing waste
  • Product changes without process changes
  • Just-in-case logic
  • True customer requirements not clearly defined
  • Over-processing to accommodate downtime
  • Lack of communication
  • Redundant approvals
  • Extra copies/excessive information

39
Waiting Waste
  • Idle time created when waiting for?
  • Causes of waiting waste
  • Unbalanced work load
  • Unplanned maintenance
  • Long process setup times
  • Misuses of automation
  • Upstream quality problems
  • Unlevel scheduling

40
People Waste
  • The waste of not using peoples mental, creative,
    and physical abilities
  • Causes of people waste
  • Old guard thinking, politics, the business
    culture
  • Poor hiring practices
  • Low or no investment in training
  • Low pay, high turn-over strategy

41
Motion Waste
  • Any movement of people or machines that does not
    add value to the product or service
  • Causes of motion waste
  • Poor people/machine effectiveness
  • Inconsistent work methods
  • Unfavorable facility or cell layout
  • Poor workplace organization and housekeeping
  • Extra busy movements while waiting

42
Waste of Transportation
  • Transporting parts and materials around the plant
  • Causes of transportation waste
  • Poor plant layout
  • Poor understanding of the process flow for
    production
  • Large batch sizes, long lead times, and large
    storage areas

43
Lean Building Blocks
Continuous Improvement
44
Value Stream Map Buzz Electronics
45
IT Etch Wet Strip Process Value Stream Map
46
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
47
Round Two Company Instruction
Learn how to implement new Lean techniques
  • Standardized Work
  • 5S System
  • Visual Controls
  • Plant Layout
  • Point of Use Storage
  • Batch Size Reduction

48
Standardized Work
  • Operations safely carried out with all tasks
    organized in the best known sequence and using
    the most effective combination of these
    resources
  • People
  • Materials
  • Methods
  • Machines

49
Standardization of Processes
  • Standardization is the practice of
  • -Setting standards
  • -Communicating standards
  • -Following standards
  • -Systematic improvement of standards
  • Continually improving standards is the process
    for developing consistent and reliable production
    methods.

50
Workplace Organization
A safe, clean, neat, arrangement of the
workplace provides a specific location for
everything, and eliminates anything not required.
51
Clutter
52
Disorganization
53
Congested Workspaces
54
Elements of a 5S Program
  • SortPerform Sort Through and Sort Out, by
    placing a red tag on all unneeded items and
    moving them to a temporary holding area. Within
    a predetermined time the red tag items are
    disposed, sold, moved or given away. When in
    doubt, throw it out!
  • Set in OrderIdentify the best location for
    remaining items, relocate out of place items, set
    inventory limits, and install temporary location
    indicators.
  • ShineClean everything, inside and out. Continue
    to inspect items by cleaning them and to prevent
    dirt, grime, and contamination from occurring.
  • StandardizeCreate the rules for maintaining and
    controlling the first 3 Ss and use visual
    controls.
  • SustainEnsure adherence to the 5 S standards
    through communication, training, and
    self-discipline.

55
Tool Organization
56
Visual Controls
  • Simple signals that provide an immediate
    understanding of a situation or condition. They
    are efficient, self-regulating, and
    worker-managed.
  • Examples
  • Kanban cards
  • Color-coded dies, tools, pallets
  • Lines on the floor to delineate storage areas,
    walkways, work areas, etc.
  • Andon lights

57
Real Time Production Reports
58
Visual Inventory Replenishment
59
Make Dirt Easy to See
60
Make Manufacturing Visual
61
Plant Layout
Ship
QC
Rec
Raw Stock
QC
Screw Machine
Shear
Stamp
Drill
Lathe
Assembly
Brake
Mill
Weld
Grind
Finish
Parts Stock
62
IBM Plant Product Path, CU Backend
63
Changeover Defined
  • Changeover is the time
  • between the last good piece
  • of the current run
  • to the first good piece
  • on the next run.

64
Quick Changeover
  • Definition Changing over a process to produce a
    different product in the most efficient manner.
  • STEPS IN A CHANGEOVER (taken from Shigeo Shingos
    Single Minute Exchange of Dies)

Percent of time of changeover
30
50
5
15
65
Point of Use Storage (POUS)
  • Raw material is stored at workstation where used
  • Works best if vendor relationship permits
    frequent, on-time, small shipments
  • Simplifies physical inventory tracking, storage,
    and handling

66
Impact of Batch Size Reduction
Batch Queue Processing
Process
C
10 minutes
10 minutes
10 minutes
30 minutes for total order
Lead
Time
21 minutes for first piece
Continuous Flow Processing
Process
Process
Process
B
A
C
12 min. for total order
3 min. for first part
67
Batch Size Reduction
  • The best batch size is one piece flow, or make
    one and move one!

68
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
69
Round Two Buzz Electronics
Buzz Electronics begins its Lean transformation.
  • Changes in the organization
  • Standardized Work
  • 5S System
  • Visual Controls
  • Plant Layout

70
Round Two Debrief
  • Discuss results
  • Discuss the process
  • Lessons learned
  • Relationship to real world
  • What if scenarios
  • Continuous improvement

71
Lean Building Blocks
Quick Changeover
Standardized Work
Batch Reduction
POUS
5S System
Visual
Plant Layout
72
Lean Building Blocks
Standardized Work
5S System
Visual
Plant Layout
73
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
74
Round Three Company Instruction
Learn to implement more new Lean techniques
  • Teams
  • Quick Changeover
  • Batch Reduction
  • (POUS) Point of Use Storage
  • Quality at the Source

75
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
76
Round Three Buzz Electronics
Buzz Electronics continues its Lean
transformation.
  • More changes in the organization
  • Teams
  • Quick Changeover
  • Batch Size Reduction
  • Point of Use Storage
  • Quality at the Source

77
Round Three Debrief
  • Discuss results
  • Discuss the process
  • Lessons learned
  • Relationship to real world
  • What if scenarios
  • Continuous improvement

78
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Evaluation
79
Round Four Company Instruction
Learn to implement more new Lean techniques
  • Teams
  • Quality at the Source
  • Pull/Kanban
  • Cellular/Flow
  • Total Productive Maintenance (TPM)

80
Lean Workforce Practices
  • Teams
  • 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
  • Quality Control Circles, team-based problem
    solving, suggestion systems, etc.

81
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.
  • Process documentation defining quality inspection
    requirements for each workstation may need to be
    developed.

82
Poka Yoke
  • What is Poka-yoke?
  • A method that uses sensor or other devices for
    catching errors that may pass by operators or
    assemblers.
  • Poka-yoke effects two key elements of Zero
    Defects Quality
  • Identifying the defect immediately ( Point of
    Origin Inspection)
  • Quick Feedback for Corrective Action
  • Poka-yoke detects an error, gives a warning, and
    can shuts down process.

83
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.

84
Pull System
  • Pull System is a flexible and simple method of
    controlling/balancing the flow of resources.
  • Eliminates waste of handling, storage,
    expediting, obsolescence, repair, rework,
    facilities, equipment, excess inventory
    (work-in-process and finished)
  • Pull System consists of
  • Production based on actual consumption
  • Small lots
  • Low inventories
  • Management by sight
  • Better communication

85
Pull System Flow Diagram
Information Flow
Raw Matl
Fin. Goods
Process C
Process A
Process B
Customer
Supplier
Parts Flow
Kanban Locations
86
Cellular Manufacturing
Linking of manual and machine operations into the
most efficient combination to maximize
value-added content while minimizing waste.
Punch
De-burr
Cut to size
Form
Package
Sand
87
Refining the Cell Five Step Process
Step 1 Group products Step 2 Measure demands
establish Takt time Step 3 Review work
sequence Step 4 Combine work in balance
process Step 5 Design cell layout
88
Step 1 Group Products
89
Step 2 Establish Takt Time
Takt Time Demand Rate
Work Time Available
Takt Time
Number of Units Sold
Cycle Time Takt Time
Minimum of People
GOAL Produce to Demand
90
Step 3 Review Work Sequence
  • Observe sequence of tasks each worker performs
  • Break operations into observable elements
  • Identify value added versus non-value added (NVA)
    elements and minimize NVA
  • Study machine capacity, cycle times and change
    over times

91
Step 4 Combine Work to Balance Process
Seconds
Seconds
Takt Time 10 seconds
92
Step 5 Design and Construct Cell
  • Design Goals
  • Flexible layout, lot size 1, point of use
    storage, visual management
  • Mixed models
  • Simplify Flows
  • Integrate process operations, materials flow one
    way
  • Minimize Materials Handling
  • Concentrate on value-added motions
  • Establish material replenishment procedure
  • Make Use of People 100 Percent
  • Promote visibility and flexibility
  • Operators stand for flexibility

93
Transition to Flexibility
Traditional
Assembly Line
Optimal
94
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

95
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
96
Round Four Buzz Electronics
Buzz Electronics continues its Lean
transformation.
  • Changes in the organization
  • Pull/Kanban
  • Cellular/Flow
  • Total Productive Maintenance (TPM)

97
Round Four Debrief
  • Discuss results
  • Discuss the process
  • Lessons learned
  • Relationship to real world
  • What if scenario
  • Continuous improvement

98
Lean Building Blocks
Cellular/Flow
Pull/Kanban
TPM
Quick Changeover
Quality at Source
POUS
Standardized Work
Batch Reduction
Teams
5S System
Visual
Plant Layout
99
Course Agenda
Welcome Introduction to Simulation Round One of
Simulation Introduction To Lean
Manufacturing Implementing Lean -- Standardized
Work, 5S System, Visual Controls, and Plant
Layout Round Two of Simulation Implementing Lean
Teams, Quick Changeover, Batch Reduction, POUS,
Quality _at_ Source Round Three of
Simulation Implementing Lean -- Pull/Kanban,
Cellular Flow, TPM Round Four of
Simulation Implementation Course Evaluation
100
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.
101
Lean Building Blocks
Continuous Improvement
102
Barriers to Improvement
If we all know we need to improve, the question
becomes why dont we?
103
Keys to Success
  • Prepare and motivate people
  • Widespread orientation to CI, quality, training
    and recruiting workers with appropriate skills
  • Create common understanding of need to change to
    Lean
  • Employee involvement
  • Push decision-making and system development down
    to the lowest levels
  • Trained and truly empowered people
  • Share information and manage expectations
  • Identify and empower champions, particularly
    operations managers
  • Remove roadblocks (i.e., people, layout, systems)
  • Make system both directive yet empowering

104
Keys to Success (Continued)
  • Atmosphere of experimentation
  • Tolerating mistakes, patience, etc.
  • Willingness to take risks (safety nets)
  • Installing enlightened and realistic
    performance measures, evaluation, and reward
    systems
  • Do away with rigid performance goals during
    implementation
  • Measure results and not number activities/events
  • Tie improvements (long-term) to key macro level
    performance targets (i.e., inventory turns,
    quality, delivery, overall cost reductions)
  • The need to execute pilot projects prior to
    rolling culture out across organization is also
    essential (e.g., model lines, kaizen blitzes)
  • After early wins in operations, extend across
    ENTIRE organization

105
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

106
Benefits of Lean
Percentage of Benefits Achieved
0 25 50 75 100
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
107
Typical Objections
  • How should you deal with these objections to
    Lean?
  • It takes too much discipline.
  • It takes too long to implement.
  • My process is too complex I have to deal with
    too many uncontrollable variables, like late
    supplier shipments, sick people, etc.
  • My process requires a large batch size.
  • It doesnt make sense in my industry.
  • Its unclear to me how Lean will work with my
    MRP system.

108
Getting Started
Value Stream Mapping
  • A simple, visual approach to
  • Focusing on a product family
  • Creating a clear picture of current material and
    information flow associated with that product
    family
  • Identifying Lean tools and techniques that can
    improve flow and eliminate waste
  • Incorporating those ideas in a new picture of how
    material and information should flow for that
    product group
  • Creating an action plan that makes the new
    picture a reality for that product family

109
Lean Building Blocks
Continuous Improvement
110
Conclusion
Lean
Traditional
  • Simple and Visual
  • Demand Driven
  • Inventory as Needed
  • Reduce Non-Value Added
  • Small Lot Size
  • Minimal Lead Time
  • Quality Built
  • Value Stream Managers
  • Complex
  • Forecast Driven
  • Excessive Inventory
  • Speed Up Value Added Work
  • Batch Production
  • Long Lead Time
  • Quality Inspected-in
  • Functional Departments
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