Lean Manufacturing

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Lean Manufacturing

• Maria V. Arroyo
• Liz Cardoze
• Cristina Kohlhofer
• Andrew Stanton
• William Lynch

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What is Lean Manufacturing?

• A management tool that reduces cost, improves
  efficiency, quality and customer satisfaction
• Deals with continuous reduction of waste,
  inventory, work in progress (WIP), idle time,
  processing time and material distance traveled
• This philosophy is used today by numerous leading
  manufacturing companies

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Overview

• Background Information
• Technology Associated with the Process/Industry
• Advantages and Disadvantages
• Economics
• Current and Future Process and Practices
• Case Studies

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Background Information

• Henry Ford
• Frederick Taylor
• Shigeo Shingo
• Taiichi Ohno
• Edward Deming

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Henry Ford

• Founder of Ford Motor company and father of
  modern assembly lines
• Aimed to produce more Model Ts cars to satisfy
  American demand
• Interchangeable parts-making the individual
  pieces of the car the same every time
• Continuous flow-t needed to be arranged so that
  as one task was finished, another began, with
  minimum time spent in set-up
• Division of labor- Moving industrial Production
  Line Conveyor belt
• Reducing wasted effort- distance walked and
  setups when changing tasks

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Frederick Taylor

• Pioneer in the industrial management field,
  considered as the father of modern time study
• Introduced work standards- standard number of
  units to be produced per unit time
• Highlighted the importance of instructions
  describing workers the task at hand (proper tools
  and procedures)
• Instructions should include an approved standard
  time each sub task (or element) should take

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Shigeo Shingo

• An Industrial Engineer that developed Single
  Minute Exchange of Dies
• SMED is methodology focused on reducing set-up
  time, it should take less than 10 minutes
• Setup operations can be divided into
• Internal setups- performed while the machine is
  not operating.
• External setups- performed while the machine is
  running
• Converting internal setups to external setups can
  substantially reduce changeover times
• Quality is improved and use of material, cost,
  and time are reduced
• Contributed to the JIT-Toyota Production System

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Taiichi Ohno

• Father of the Toyota Production System
• Mission
• Create continuous process flow to bring problems
  to the surface
• Use the "pull" system to avoid overproduction
• Level out the workload (heijunka)
• Get quality right the first time
• Use visual control so no problems are hidden
• Use only reliable, thoroughly tested technology
  that serves your people and processes

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Edward Deming

• American statistician best known for his work in
  Japan
• Focused on improving top management (design and
  service), product quality, testing and sales by
  means of statistical methods such as analysis of
  variance (ANOVA) and hypothesis testing
• Management must follow 14 points in order to
  support continuous improvement

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Demings 14 Points

• Create constancy of purpose for the improvement
  of product and service
• Adopt a new philosophy of cooperation -
  employees, customers and suppliers
• Cease mass inspection -improve the process and
  build quality into the product
• Minimize total cost in the long run. single
  supplier - based on a long-term relationship of
  loyalty and trust
• Improve constantly system of production, service,
  planning, of any activity
• Institute training for skills
• Leadership
• No fear, trust
• Break down barriers between departments
• Eliminate slogans, exhortations, and targets
  asking for zero defects or new levels of
  productivity
• Eliminate objectives or goals
• Eliminate competition and conflict.
• Program of education and self-improvement
• Transformation- Put in practice the 14 points

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Plan- Do Check - Act
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Technology Associated with the Process/Industry

• Value Stream Mapping
• Kanban Systems (Pull System)
• Queuing Theory
• Kaizen
• Poka-Yoke

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Value Stream Mapping

• Tool which aids to see and understand the flow of
  material and information of a product of service
• AKA end-to-end system map
• Process-mapping method used to
• Identify non-value added time in value stream
• Envision less wasteful future
• Develop an implementation plan for future lean
  activities

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Value Stream Mapping
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Value Stream Mapping
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Kanban Systems

• A pull system that helps to determine the supply
  or rather the production according to the needs
  of the customers
• Signaling system and its managed through JIT
  production
• Uses cards to signal the need for an item
• One and Two card Kanban

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Kanban Systems
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Queuing Theory

• The mathematical study of waiting lines
• Derivation and calculation of several performance
  measures
• A branch of Operation Research
• Meant to improve efficiency in manufacturing
  floor

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Queuing Theory
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Kaizen

• An approach to productivity improvement
• Aims to eliminate waste
• Just-in-time delivery, standardized work, paced
  moving lines, right-sized equipment
• Its a daily activity whose
• Purpose beyond improvement
• A process that humanizes the workplace,
  eliminates hard work (both mental and physical)

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Kaizen
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Poka-Yoke

• Fail-safing" or "mistake-proofing
• Concept originated as part of the Toyota
  Production System
• Range of equipment enhancing the scope of
  assembly and checking fixtures
• Avoiding inadvertent errors
• preventing errors by putting limits on how an
  operation can be performed in order to force the
  correct completion of the operation

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Poka-Yoke
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Advantages

• The concept is designed solely for the
  improvement of a manufacturing system.
• Does not focus on just one aspect of a companys
  system as the concept focuses on the Big
  Picture- or improving the entire business
  process.
• Leads to increased profitability for the company
• Deeply concerned about increasing value for
  customers through its main goal of eliminating
  waste

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Advantages

• Lean Manufacturing utilizes studies on flow
  processes and takes into consideration the
  following
• Identification of waste
• Possible process rearrangement in search of a
  more efficient sequence
• Removing superfluous tasks
• Improving flow patterns
• Different flow layout of production
• Transport route changes

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Advantages

• Lean Manufacturing also improves a manufacturing
  system through the following
• Eliminating overproduction
• Transportation waste of motion allows time
  savings
• Reducing occurrences and duration of waiting
• Elimination of unnecessary process steps
• Minimizing occurrences of defects
• Work in progress reduction
• Large lot production
• Processes with long cycle times

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Disadvantages

• Greater responsibility found lower in working
  ranks raises chances for mistakes
• Requires more professional skills
• Team oriented work environment
• General paradox exists the better one is at
  teamwork the less they will know about a
  particular specialty which could be useful in
  another job or in starting a business.

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Disadvantages

• There is a lack of a steep career ladder meaning
  a lack of job variety
• This creates a never ending need for managers to
  offer new challenges to their workers
• Workers may feel that their potential is not
  being tapped and will hold back their commitment
  and knowledge therefore effectively cancelling
  out all the positives lean manufacturing offers.

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Economics

• Waste elimination
• Reduction of lead/cycle time
• Elimination of Non-Value Added Activities
• Increasing Productivity
• COST REDUCTION

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Cost Savings
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Six Sigma

• Measure of quality that involves a systematic
  approach to problem solving, opportunity finding
  and improvement implementation
• Philosophy Striving toward perfection
• Main objective Zero (elimination) defects
• Continuous improvement
• Customer satisfaction
• First companies Motorola and General Electric

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• Strong focus of variation reduction
• A statistical measurement of 3.4 defects per
  million opportunities

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Process Capability in Various Sigma Levels
Sigma Level Good PPM
2 69.15 308,537
3 93.32 66,807
4 99.379 6,210
5 99.9676 233
6 99.99966 3.4
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Why Six Sigma?

• Customer satisfaction
• Cost reduction
• Error reduction
• Revenue generation
• Quality outcomes
• System focus
• Innovation
• Competitive advantage

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Case Study

• Toyota
• Oral-B

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ToyotaToyota Production System

• Created by Taiichi Ohno
• First Documented 1977
• System for which the term Lean Manufacturing is
  formed
• Based on the concept of eliminating Muda or
  waste

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Toyota Production SystemEliminating Muda

• Seven Types of Waste
• Overproduction
• Waiting
• Transporting
• Inappropriate processing
• Unnecessary inventory
• Unnecessary/excess motion
• Defects
• Remedies
• Jidoka
• Just-in-time/Pull System
• Single Minute Exchange of Dies
• Single piece flow
• Poka Yoke
• Work Leveling

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Oral-BIowa City Plant

• Makes toothbrushes and oral care products
• 372 Distinct Finished Products
• 750 Workers
• Plant was forced to compete internally with other
  Oral-B Manufacturing Facilities in Mexico and
  China

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Oral-BImplementing Lean

• Hiring Freeze
• Cross trained workers and cut job classifications
  from 32 to 9
• Switched from MRP to Kanban
• 5 days of training
• Production costs dropped 18
• Productivity increased 55
• On time - 99.3

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Questions