© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 1 Lean Manufacturing An Overview

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 2 Definition  Lean Manufacturing is an operational strategy oriented toward achieving the shortest possible cycle time by eliminating waste.  It is derived from the Toyota Production System and its key thrust is to increase the value-added work by eliminating waste and reducing incidental work.  The technique often decreases the time between a customer order and shipment, and it is designed to radically improve profitability, customer satisfaction, throughput time, and employee morale.

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 3 Exercise Readiness Assessment Test A.K.A. RAT  AS A TEAM (4 members)  AS A TEAM (4 members), take 3 minutes to provide a written to answer the following questions:  Were all the plans the same?  Is one better than the others?  Why?  Closed Book / Closed Notes

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 4 Objectives  To identify waste elements in a system  To apply value stream analysis to a complex engineering/manufacturing system  To implement 3 M’s in a complex engineering environment  To be able to identify and implement the 5Ss of lean

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 5 Craft Manufacturing  Late 1800’s  Car built on blocks in the barn as workers walked around the car.  Built by craftsmen with pride  Components hand-crafted, hand-fitted  Excellent quality  Very expensive  Few produced

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 6 Mass Manufacturing  Assembly line - Henry Ford 1920s  Low skilled labor, simplistic jobs, no pride in work  Interchangeable parts  Lower quality  Affordably priced for the average family  Billions produced - identical

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 7 Lean Manufacturing  Cells or flexible assembly lines  Broader jobs, highly skilled workers, proud of product  Interchangeable parts, even more variety  Excellent quality mandatory  Costs being decreased through process improvements.  Global markets and competition.

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 8 Definition of “Lean”  Half the hours of human effort in the factory  Half the defects in the finished product  One-third the hours of engineering effort  Half the factory space for the same output  A tenth or less of in-process inventories Source: The Machine that Changed the World Womack, Jones, Roos 1990

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 9 Lean Manufacturing uis a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Customer Order Waste Product Shipment Time Customer Order Product Shipment Time (Shorter) Business as Usual Waste Lean Manufacturing

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 10 The Nature of Lean Mfg The Nature of Lean Mfg  What Lean Mfg is not JIT Kanban  Characteristics Fundamental change Resources Continuous improvement  Defined “A system which exists for the production of goods or services, without wasting resources.”

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 11 New Paradigm: Non-Blaming Culture Management creates a culture where:  Problems are recognized as opportunities  It’s okay to make legitimate mistakes  Problems are exposed because of increased trust  People are not problems - they are problem solvers  Emphasis is placed on finding solutions instead of “who did it”

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 12 What makes a manufacturing system lean? – the 3 M’s of lean  muda – waste  mura - inconsistency  muri - unreasonableness

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 13 What makes a manufacturing system Lean?

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 14 Definitions  Systems Recognition Efficiencies  Waste Muda 7 types Truly lean

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 15 Waste “Anything that adds Cost to the product without adding Value” “Anything that adds Cost to the product without adding Value”

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 16 7 Types of Muda  Excess (or early) production  Delays  Transportation (to/from processes)  Inventory  Inspection  Defects or correction  Process inefficiencies and other non-value added movement (within processes)

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 17 7 Forms of Waste Types of Waste CORRECTION WAITING PROCESSING MOTION INVENTORY CONVEYANCE OVERPRODUCTION Repair or Rework Any wasted motion to pick up parts or stack parts. Also wasted walking Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes. Producing more than is needed before it is needed Maintaining excess inventory of raw mat’ls, parts in process, or finished goods. Doing more work than is necessary Any non-work time waiting for tools, supplies, parts, etc..

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 18 Who wants what... Customer Low Cost High Quality Availability Your Company Profit Repeat Business Growth Cash !! $ Value !!

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 19 Elements of Lean Manufacturing  Waste reduction  Continuous flow  Customer pull  50, 25, 25 (80,10,10) Percent gains

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 20 Benefits of Lean Manufacturing  % Waste reduction WIP Inventory Space Personnel Product lead times Travel Quality, costs, delivery

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 21 Setting the Foundation  Evaluating your organization Management culture Manufacturing culture  Lean Manufacturing Analysis Value stream (from customer prospective) Headcount WIP Inventory Capacity, new business, supply chain

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 22 Tools of Lean Mfg/Production  Waste reduction Full involvement, training, learning Cellular mfg Flexible mfg Kaikaku (radical change) Kaizen (continuous improvement) & standard work 5S Poka-yoke (visual signals) Teien systems (worker suggestions)

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 23 Tools (cont.)  Continuous Flow (10% - 25%) SMED (Shingo) Takt time Line balancing Nagara (smooth production flow)

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 24 Tools (cont.)  Customer pull (10%- 25%) Just-in-time Kanban

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 25 Henry Ford - Standards “To standardize a method is to choose out of the many methods the best one, and use it. Standardization means nothing unless it means standardizing upward. Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based. If you think of “standardization” as the best that you know today, but which is to be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops.” Henry Ford, 1926 Today & Tomorrow

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 26  Captures best practices  Posted at the work station  Visual aid  Reference document work sequence job layout time elements safety  Developed with operators  Basis for Continuous Improvement Standardized Work

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 27  Visual Factory  Error Proofing  Quick Change-over  Total Productive Maintenance Other Tools

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 28 5S Programs  Seiri (sort, necessary items)  Seiton (set-in-order, efficient placement)  Seison (sweep, cleanliness)  Seiketsu (standardize, cont. improvement)  Shitsuke (sustain, discipline)

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 29  “Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.”  5-S 1SSift and Sort (Organize) 2SStabilize (Orderliness) 3SShine(Cleanliness) 4SStandardize(Adherence) 5SSustain(Self-discipline) Visual Factory

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 30

© 2007 Pearson Education, Inc. Publishing as Pearson Addison-Wesley 31 Error Proofing  Preventing accidental errors in the manufacturing process Error detection Error prevention  A way to achieve zero defects.

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