1 Lean Manufacturing Overview Lean Manufacturing Overview

2 Outline 1. Lean Manufacturing 2. 5S & Visual Controls 3. Kaizen 4. Value Streams 5. Pull Manufacturing 6. Mistake Proofing 7. Quick Changeover 8. Six Sigma 9. Lean Accounting 10. Theory of Constraints 11. Human Factors

3 What is Lean? Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories) Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories) Lean production is not about eliminating people Lean production is not about eliminating people Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date Lean is about understanding what is important to the customer Lean is about understanding what is important to the customer

4 Identify the Customer Value added is always determined from the customer’s perspective. Value added is always determined from the customer’s perspective. Who is the customer? Who is the customer? Every process should be focused on adding value to the customer. Every process should be focused on adding value to the customer. Anything that does not add value is waste. Anything that does not add value is waste. Some non-valued added activity is necessary waste (“NVA- R”) Some non-valued added activity is necessary waste (“NVA- R”) Regulatory Regulatory Legal Legal

5 Roadblocks Too busy to study it Too busy to study it A good idea but the timing is premature A good idea but the timing is premature Not in the budget Not in the budget Theory is different from practice Theory is different from practice Isn’t there something else for you to do? Isn’t there something else for you to do? Doesn’t match corporate policy Doesn’t match corporate policy Not our business – let someone else analyze it Not our business – let someone else analyze it It’s not improvement – it’s common sense It’s not improvement – it’s common sense I know the result even if we don’t do it I know the result even if we don’t do it Fear of accountability Fear of accountability Isn’t there an even better way? Isn’t there an even better way?

6 Kanban Squares XX X X X X Flow of work Flow of information