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INTRODUCTION TO LEAN MANUFACTURING

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Title: INTRODUCTION TO LEAN MANUFACTURING


1
INTRODUCTION TO LEAN MANUFACTURING
  • Achieving World-Class
  • Organizational
  • Results

2
Introduction To Lean
WHAT IS LEAN MANUFACTURING? Lean Manufacturing
can be defined as "A systematic approach to
identifying and eliminating waste
(non-value-added activities) through continuous
improvement by flowing the product through flow
processes based on a signal from the customer."
3
Introduction To Lean
  • What is Lean Manufacturing?
  • Lean manufacturing is the process of analyzing
    the flow of information and materials in an
    environment and continuously improving the
    process to achieve enhanced value for the
    enterprise.
  • It uses the building blocks of standardized
    work, workplace organization, visual controls,
    effective plant layout, quality at the source,
    batch reduction, teams, customer demand-based
    manufacturing, point-of-use storage, quick
    changeover, one-piece flow, cellular
    manufacturing, and Takt time.Lean manufacturing
    also applies the modern elements and technologies
    of scrap reduction, process improvements in
    machining and tool selection as well as material
    selection, set-up reduction, Just-In-Time,
    Kaizan, world class manufacturing, synchronous
    manufacturing, and inventory management.

4
Introduction To Lean
CUSTOMER FOCUS A lean manufacturing enterprise
thinks more about its customers (internal
external) than it does about running machines
fast to absorb labor and overhead. Ensuring
Internal and External customer input and
feedback assures quality and customer
satisfaction,
5
Introduction To Lean
  • FOCUS ON WASTE
  • The aim of Lean Manufacturing is the elimination
    of waste
  • in every area of the organization
  • including
  • Customer relations (Sales)
  • Accounting
  • Product design
  • Supplier Networks
  • Quality
  • HR
  • Safety
  • Manufacturing
  • Engineering
  • .

6
Introduction To Lean
  • LEAN GOALS
  • Goal is to IMPROVE EVERY PROCESS WITHIN AN
    ORGANIZATION REQUIRING
  • Less human effort
  • Less materials
  • Less inventory
  • Less time
  • Less space
  • To become highly responsive to
  • customer demand while producing top quality
  • products in the most efficient and economical
    manner possible

7
Introduction To Lean
  • In 1945, Toyoda challenged Taiichi Ohno to learn
    how to compete with US Automakers not on building
    large volumes of similar models, but many models
    in low volume.
  • Ohno was given 3 years to develop a system to
    achieve this goal.

8
Introduction To Lean
  • Ohno went to the US and studied Ford mass
    assembly processes at the Rouge River Plant.
  • Ohno learned a lot from this experience, but felt
    Ford stopped short of a better system.
  • Ohno also studied the supermarket concept of
    ordering and replenishing stock by a signal
    system. This resulted in Ohno applying the KANBAN
    concept to the system he would develop.

9
Introduction To Lean
  • It took Ohno over 20 years to develop the system
    that became known as The Toyota Production System
    (TPS)
  • It took until the 1974 Oil Crisis before
    outsiders and others in Japan really took notice
    of the TPS system that Ohno built and the way it
    was allowing Toyota to compete when others were
    faltering.

10
Introduction To Lean
11
Introduction To Lean
Typical use of automation which results in
running parts faster and faster but result in
increased inventory as downstream cells cannot
use the product as fast as the upstream equipment
is producing the parts. Increases inventory which
is waste
12
Introduction To Lean
  • Lean Manufacturing came to the US with James
    Womacks Book, The Machine That Changed The
    World in 1990.
  • Focused on Toyota Production System Concepts and
    Why Toyota was able to so successful over US Auto
    Manufacturers.

13
Introduction To Lean
14
Introduction To Lean
  • Glossary of Lean Manufacturing
    Terms
  • Following is a short list of terms often used in
    explaining lean manufacturing techniques.Cellula
    r Manufacturing - linking of manual and machine
    operations into the most efficient combination to
    maximize value-added activities while minimizing
    waste. A cell layout is typically U-shaped and
    utilizes one-piece flow.Kanban System - a pull
    system that uses color-coded cards attached to
    parts or part containers to regulate the upstream
    production and delivery flow.Lean Manufacturing
    - the process of analyzing the flow of
    information and materials in a manufacturing
    environment and continuously improving the
    process to achieve enhanced value to the
    customer.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.)

15
Introduction To Lean
  • Pull System - method of controlling the flow of
    resources by replacing only what has been
    consumed. A pull system relies on customer
    demand.Push System - resources are provided to
    the consumer based on forecasts or schedules.
    (Lean manufacturing encourages the elimination of
    push systems.)Takt Time - customer demand rate.
    Takt time sets the pace of production to match
    the rate of customer demand and becomes the
    heartbeat of any lean system. It is calculated by
    taking the work time available and dividing it by
    the number of units sold.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.)

16
Introduction To Lean
  • Most waste is invisible. Nor is elimination easy.
    A set of techniques  that identify and eliminate
    waste has evolved into "Lean Manufacturing."
  • Cellular Manufacturing
  • Takt Time
  • Kanban
  • Setup Reduction
  • Implementing
  • Kaizen
  • Group Technology
  • Small and frequent Lot Sizing

17
Introduction To Lean
18
Introduction to Lean
TOOLS ASSOCIATED WITH LEAN
                                                
                                                  
                         Transforming small
manufacturers to high performance requires that
they address
19
Introduction to Lean
                                                
                                                  
                  Understand the Current State
                                                
                                                  
                        
Start
20
Introduction To Lean
21
Introduction To Lean

Present State Value Stream Map
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
22
Introduction To Lean
Future State Value Stream Map
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                                  
                                   
23
Introduction To Lean
Improve processes (manufacturing engineering
HR Safety Quality Sales Accounting) by
looking at building cells of operations that
are small complete factories of their own instead
of moving products, materials and information by
large lots throughout a large facility or office-
Quick response Processing results
24
Introduction To Lean
  • A work cell is a work unit larger than an
    individual machine or workstation but smaller
    than the usual department. Typically, it has 3-12
    people and 5-15 workstations in a compact
    arrangement.
  • An ideal cell manufactures a narrow range of
    highly similar products/information/procdesses.
    Such an ideal cell is self-contained with all
    necessary equipment and resources.
  • Cellular layouts organize departments around a
    product/information/process or a narrow range of
    similar products. Materials sit in an initial
    queue when they enter the cell.

25
Introduction To Lean
  • Once processing begins, they move directly from
    process to process (or sit in mini-queues). The
    result is very fast throughput.
  • Communication is easy since every person is close
    to the others. This improves quality and
    coordination. Proximity and a common mission
    enhance teamwork.
  • Simplicity is an underlying theme throughout
    cellular design. Notice the simplicity of
    material/information/process flow. Simpler
    Scheduling, supervision and many other elements
    also reflect this underlying simplicity.

26
Introduction To Lean
This complicated flow becomes a much improves and
simpler flow between areas that are adding value
27
Introduction To Lean
Key Element Functional Cellular
Inter-department Moves Many Few
Travel Distance 500'-4000' 100'-400'
Route Structure Variable Fixed
Queues 12-30 3-5
Throughput Time Weeks Hours
Response Time Weeks Hours
Inventory Turns 3-10 15-60
Supervision Difficult Easy
Teamwork Inhibits Enhances
Quality Feedback Days Minutes
Skill Range Narrow Broad
Scheduling Complex Simple
Equipment Utilization 85-95 70-80
28
Introduction To Lean
  • An
    Example
  • A firm that assembles air-handling products faced
    high inventories and erratic delivery. They
    originally assembled units on a traditional line.
    Long setups and logistics required long
    production runs. Often, they pulled products from
    finished goods and rebuilt them for custom
    orders.
  • Twelve small (1-3 person) assembly work cells
    that were always set up and ready. People worked
    in different cells each day and assembled to
    customer order. Finished Goods Inventory dropped
    by 96. Lead-time was 24 hours. Productivity
    improved by 20-30.

29
Introduction To Lean
30
Introduction To Lean
Traditional Manufacturing Lean Manufacturing
Scheduling Forecast - push Customer Order - pull
Production Stock Customer Order
Lead Time Long Short
Batch Size Large - Batch Queue Small - Continuous Flow
Inspection Sampling - by inspectors 100 - at source by workers
Layout Functional Product Flow
Empowerment Low High
Inventory Turns Low - lt7 turns High - 10
Flexibility Low High
COGS High and Rising Lower and Decreasing
31
Introduction To Lean
Continuous Improvement Firm (CIF) versus Mass Production (MP) firm Continuous Improvement Firm (CIF) versus Mass Production (MP) firm Continuous Improvement Firm (CIF) versus Mass Production (MP) firm
Issues MP CIF
Strategic advantage Large volume of homogenous output Production flexibility
Workforce Narrow specialization Multi-skilled
Output based on Forecasted demand Real demand
Productivity success factors Quality of management its ability to plan and to direct the implementation of those plans The ability of the entire work force, not just management, to constantly improve both the product and the processes whereby it is produced
32
ISSUE OLD INDUSTRIAL ECONOMY NEW ECONOMY

Economic Development Steady and linear, quite predictable Volatile - extremely fast change, sudden downturns, and chaotic - the direction of the changes is not perfectly clear4
Market changes Slow and linear Fast and unpredictable
Economy Supplier-driven Customer-driven
Lifecycle of Products and Technologies Long Short
Key Economy Drivers Large industrial firms Innovative firms
Scope of Competition Local Global hyper-competition
Competition Name of the Game Size The big eats the small Speed
Marketing Name of the Game Mass marketing Differentiation
33
Introduction To Lean
34
Introduction To Lean
35
Introduction To Lean
36
Introduction To Lean
37
Introduction To Lean
38
Introduction To Lean
39
Introduction To Lean
DEFINITION OF
WASTE Essentially, "waste" is anything that the
customer is not willing to pay for.
40
Introduction To Lean
  • 8 TYPES OF WASTE
  • TRANSPORTATION
  • WASTED MOTIONS
  • EXCESS INVENTORY
  • WAIT TIME
  • SCRAP OR REWORK
  • OVER-PROCESSING
  • OVER-PRODUCTION
  • UNDERUTILIZED HUMAN RESOURCES.

41
Waste In Organizations
is Usually Disguised as
  • Lost Time/Injury Accidents
  • Scrap/Rework
  • Machine Setups
  • Machine Downtime
  • 3rd Party Inspection
  • Calibrations
  • Inventory Storage
  • Counting Inventory
  • Supplier Lead-times
  • Product Test
  • Profit Reductions
  • Falling Market Share

42
Waste In the Office Is Disguised As
  • Administrative Waste
  • Conflicting Department Goals not everyone on
    the same page
  • Traditional Accounting Methods rewarding people
    for creating waste, for example inventory
  • Poor Product Design designs which do not
    include the needs of the internal and external
    customers
  • Long Order Processing Time
  • Searching, Hunting, Looking for files, orders,
    invoices, reports, memos etc.
  • Waiting Time waiting for batched paperwork,
    instructions, supervision etc.
  • Purchasing Reorders, Transactions
  • Authorizations

43
Introduction To Lean
What Types of Waste Do You Have in Your Facility?
44
Eliminating Waste

Improves our ability to provide customer
satisfaction, while reducing our overall costs!
45
Introduction To Lean
  • Overproduction
  • To produce more than is sold or produce it
    before it is needed.
  • It is visible as storage of material.
  • Overproduction means making more than is
  • - Required by the next process
  • - Making earlier than is required by the next
    process, or
  • - Making faster than is required by the next
    process.

46
Introduction To Lean
  • Causes for Over Production
  • Just-in-case logic
  • Misuse of automation
  • Long process setup
  • Unleveled scheduling
  • Unbalanced work load
  • Over engineered
  • Redundant inspections

47
Introduction To Lean
  • WAIT TIME
  • Any time that is non-value added where the
    operator must stop producing good parts and wait
    for materials instructions Team Leader
    equipment downtime.

48
Introduction To Lean
  • Causes of Wait Time Waste
  • Unbalanced work load
  • Unplanned maintenance
  • Long process set-up times
  • Misuses of automation
  • Upstream quality problems
  • Unleveled scheduling
  • Poor Communication

49
Introduction To Lean
  • Inventory or Work in Process (WIP) Waste
  • Represents the material between operations
    due to large lot production or processes with
    long cycle times
  • One of the most frequent types of waste and
    one of the most expensive to have

50
Introduction To Lean
  • Causes of Excess
    Inventory
  • Compensating for inefficiencies and unexpected
    problems
  • Product complexity
  • Unleveled scheduling
  • Poor market forecast
  • Unbalanced workload
  • Unreliable shipments by suppliers
  • Misunderstood communications
  • Reward systems

51
Introduction to Lean
  • Over Processing Waste
  • Doing more processing to the parts than the
    customer really requires
  • .
  • Over processing waste can be minimized by
    asking why a specific processing step is needed
    and why a specific product is produced.
  • All unnecessary processing steps should be
    eliminated.

52
Introduction To Lean
  • Causes for Over Processing Waste
  • Product changes without process changes
  • Just-in-case logic
  • True customer requirements undefined
  • Over processing to accommodate expected downtime
  • Lack of communication
  • Redundant approvals
  • Extra copies/excessive information

53
Introduction To Lean
  • Transportation Waste
  • Excess Material Handling either to production
    area or within production areas.
  • Does not add any value to the product. Instead
    of improving the transportation, it should be
    minimized or eliminated (e.g. forming cells)

54
Introduction To Lean
  • 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

55
Introduction To Lean
  • WASTED MOTIONS
  • Any movement that does not add value.
  • Examples looking for tools walking many
    steps to get parts or place parts into finished
    goods more movements than necessary to perform
    an operation.

56
Introduction To Lean
  • Causes of Motion Waste
  • Poor people/machine effectiveness
  • Inconsistent work methods
  • Failure to take ergonomic issues into
    consideration
  • Poor facility or cell layout
  • Poor workplace organization and housekeeping
  • Extra "busy" movements while waiting

57
Introduction To Lean
  • SCRAP OR REWORK
  • Requires additional resources and time to
    correct defects before shipping or replace parts
    that are scrapped due to defects.

58
Introduction To Lean
  • Causes of Scrap or Rework
  • Little or no process control
  • Poor quality standards or inconsistent quality
    standards
  • Lack of or little planned equipment preventive
    maintenance
  • Inadequate education/training/work instructions
  • Product design (Process cannot produce to
    quality)
  • Customer needs not understood

59
Introduction To Lean
  • UNDER-UTILIZED HUMAN RESOURCES
  • The lack of involvement and participation of
    the employees in improving operations quality
    and safety.

60
Introduction To Lean
  • Causes of People Waste
  • Old guard thinking, politics, the business
    culture
  • Poor hiring practices
  • Low or no investment in training
  • Low pay, high turnover strategy
  • Management thinking it has to drive everything
    instead of involving those who know the process
    the best

61
Introduction To Lean
62
Introduction To Lean
  • SOME BASIC ELEMENTS OF LEAN
  • Elimination of waste
  • Equipment reliability
  • Process capability
  • Continuous flow
  • Material flows one part at a time
  • Less inventory required throughout the production
    process,
  • raw material, WIP, and finished goods
  • Defect reduction
  • Lead time reduction
  • Error proofing
  •                      

63
Introduction To Lean
  • Stop the Line quality system
  • Kanban systems
  • Standard work
  • Visual management
  • In station process control
  • Level production
  • Takt Time
  • Quick Changeover
  • Teamwork
  • Point of use storage

64
Introduction To Lean

KAIZEN The definition of Kaizen is "improvement"
and particularly------"Continuous Improvement"--
slow, incremental but constant Small-scale
improvements are easier and faster. The risks
are lower because they generally have limited
effect. However, the accumulated effect  is
often greater than a single large improvement
65
Introduction To Lean
  • Takt Time
  • The desired time between units of production and
    output, synchronized to customer demand.
  • The concept carries backward through a process
    stream. Ideally, every step synchronizes with the
    final output. Takt Time is fundamental to Lean
    Manufacturing.

66
Introduction To Lean
  • Takt time is useful for lean cells  These are
    typical of the work cells at Toyota and what most
    people think of when they picture a cell.
  • Such cells have
  • Minimal Setups
  • A Single Routing
  • Identical Work Times for All Products
  • Job-shops and other low-volume, high-variety
    operations can also use cellular manufacturing,
    it's just a bit more complicated

67
Introduction To Lean
  • Small lot production (ideally one piece) is an
    important component of any Lean strategy.
  • Lot size directly affects inventory and
    scheduling
  • The larger the lot size the more time, materials,
    money, inventory, lead time, scrap is produced
    and lead time and scheduling is extended.

68
Introduction To Lean
Batching has an even greater effect on inventory.
This chart shows the minimum inventory on hand
downstream of the work center. A lot size of 20
units generates an average inventory of 15
units. A lot size of 200 generates an average
inventory of 93 units with wide fluctuations.
This is a 600 increase!  Actual inventory would
be much larger than shown here because of the
uncertainty of fluctuations, the difficulty of
correcting a stock out and the need for coping
with other contingencies.
69
Introduction To Lean
The chart above shows the effect of large and
small lots on one particular work center's
production. A green line shows daily demand from
the customer. It averages 50 units/day and does
not vary more than about 20. The black line
shows the actual production if units are made in
lots of 20 or about 0.4 days of demand. With this
small lot size, required production tracks demand
and even smoothes the demand a bit. Output is
quite linear.
70
Introduction To Lean
A lot size of 200 units is about 4.0 days of
demand. The purple line shows production
requirements. Here there are large, intermittent
swings between 200 units and 0 units-- very
non-linear.  This kind of pattern complicates
scheduling, precludes the use of kanban and
generates large inventories. The slightest glitch
can cause stock outs
71
Introduction To Lean
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Introduction To Lean
73
Introduction To Lean
Leaders must lead! Everyone must be involved
without exception! Lean applies to the office
and shop floor and it paves the approach
necessary for all other improvements which are
the long-term hope for a companys survival.
You will achieve the level of excellence that you demonstrate you want to achieve. Dupont
74
Introduction To Lean
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Introduction To Lean
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