1. LEAN PRODUCTION BY
Alfredo Moran Johnny Rojas
January, 2006

2. PROFESSIONAL PROFILE Training & Facilitation Lean Systems
13 years of experience in the manufacturing and service industry
M.S. Industrial Engineering
B.S. Industrial Engineering
Certifications
Training & Facilitation
Lean Systems
TPM 5S
JIT

3. PROFESSIONAL PROFILE
8 years of experience in the manufacturing and service industry
M.B.A. NOVA University – (Expected Graduation, 2007)
B.S. Industrial Engineering
Certifications
Quality Manager
Six Sigma

4. Our expectations ….………….
To provide a clear and simple guide to Lean Production;
Components
How they fit together
Role that you (seniors) will play in the Lean Journey

5. AGENDA The Birth of Lean Production The House of Lean Production
Mass Production
Toyota System
Waste
The House of Lean Production
Foundation
Implementation Sequence
Opportunity for IE’s
Current Market Characteristics
The Profit Equation
Summary
Open Floor

6. The Birth of Lean Production

7. TOYOTA Eiji Toyoda His family founded Toyota in 1937
After the Second World War, the company was almost bankrupt
Eiji decides to visit the Rouge Plant (Ford Company) in Michigan
1950
The Rouge plant was the most efficient production complex in the world
Great Machinery
Unlimited Resources in Personnel and Money
High Production Volumes

8. Back in Japan
Eiji Toyoda and Taiichi Ohno, his production manager, developed a system based on the pure need to survive;
Flexible Machinery
Quick Change Over
Involving all employees in the solution to problems; thus making the jobs easier and productive – CONTINUOUS IMPROVEMENT
Manufacturing the right product at the right time and in the right quantities
Waste elimination, “inefficiencies” that do not add value to the product

9. Lean Production
The system perfected by Toyota is called Lean Production. It is a philosophy of “Continuous Improvement” in quality and cost. It is the elimination of all types of waste in any type of process.
Do more with less
Less time
Less space
Less human effort
Less machinery
Less materials
And at the same time meet customer demands
A system that launched Toyota to the top of the automobile industry, while other companies fell to mediocre levels.

10. Types of Waste Overproduction Transportation Motion Waiting
Inventories
Correction
Overproduction
Knowledge Disconnection

11. value= DEFINITION OF WASTE
ANYTHING OTHER THAN THE ABSOLUTE MINIMUM RESOURCES OF MATERIAL, MACHINES, AND MANPOWER REQUIRED TO ADD VALUE TO THE PRODUCT.
1- CUSTOMER MUST THINK THAT TASK IS IMPORTANT
2- TASK MUST PHYSICALLY CHANGE ITEM
3- MUST BE DONE RIGHT THE FIRST TIME
value=

12. A Few Lean Production Tools….
Quick Change Over
TPM (Total Productive Maintenance)
Standardization
Visual Management
Improvement Activities (Kaizen)
Continuous Flow
JIT

13. JIT Essence

15. TOOLS Develop Flow Charts Develop Product Routings
Data Collection/Organization
Time Studies
Layout Analysis
Ergonomics
Project Management
TOOLS

16. The House of Lean Production

17. Strategic Planning Vision / Mission / Measurements / Alignment
Top
Management
Vision
Strategic Planning   Vision / Mission / Measurements / Alignment
JIT:
One piece Flow
Cell design
Pull System
Cycle Time Reduction
Plant Layout
Material Handling
SIX SIGMA:
DMAIC Model
Roles & Responsibilities
Project Execution and Monitoring
TPM:
Cycle Time Reduction
Setup Reduction
Capacity Expansion
Skills Training
Continuous
Improvement
Engine
5S Project Planning Process Mapping
Visual Factory Standardization Work Flow
Scheduling Setup Reduction Work measurements
Kanban Benchmarking Communications
Waste Elimination Team Building Leadership skills
Problem Solving Performance Measurements Safety
Developing a
Strong Foundation
STABILITY

18. build the foundation first
Implementing the
Lean Production System
build the foundation first

19. IF STABILITY EXISTS IN A COMPANY….
Key Characteristics:
Departments / Work areas are clean and organized
Processes have a clear routing
Processes are standardized
Visual Management System is in place
Communicating performance measurements
Making out-of-standard conditions visible
Ongoing Training program
Soft / Technical skills

20. Opportunity for IE’s

21. Opportunity for IE’s (Lean Production World)
IE’s are trained professionals in:
Integrating systems (people/machines/methods)
Ergonomics / Simulation / Work Design / Project Management / Quality / …………..
IE’s
Experts in eliminating waste
Experts in improving profitability
However, IE’s enter the job market without confidence in their capabilities
What can you do about it?
Understand your role
Attack the “opportunities” systematically
Always Always Present the before and after

22. Understanding the Current Market
Competition is fierce
Survive only companies that continuously improve its:
Processes
Quality
Cost
Companies are always looking for qualified personnel that can improve its processes – it is not an option but a necessity to survive

23. Market Characteristics
PRESENT / FUTURE
SELLER’S MARKET
MARKET REDUCTION
FLEXIBILITY
BETTER QUALITY
GOOD SERVICE AND DELIVERY
EMPLOYEE PARTICIPATION
BUYER’S MARKET
Very competitive and multiple choices
SLOWER GROWTH/SHRINKING MARKETS
FLEXIBILITY
Be able to introduce new products or variations on products
HIGHER QUALITY
People are demanding higher quality
DELIVERY AND SERVICE
ASSET UTILIZATION
We can no longer afford throwing money away. This drives us to a
program to achieve World Class Manufacturing!

24. The Profit Equation
Price (Fixed) - Cost = Profit

25. PROBLEMS BECOME OPPORTUNITIES…………
WHEN WE HAVE THE ABILITY TO SOLVE IT

26. SUMMARY OPEN FLOOR FIU EPIC CONSULTANTS.COM
The Birth of Lean Production
Mass Production
Toyota System
Waste
The House of Lean Production
Foundation
Implementation Sequence
Opportunity for IE’s
Current Market Characteristics
The Profit Equation
Summary
Open Floor
OPEN FLOOR