1. © ABSL Power Solutions 2007 © STM Quality Limited STM Quality Limited Introduction to Lean Manufacturing TOTAL QUALITY MANAGEMENT Lean Manufacturing

2. © STM Quality Limited STM Quality Limited Definition of Lean Manufacturing “The production of goods using less of everything by reducing ‘waste’ and increasing value added activity” If it doesn’t add value, it adds cost!

3. © STM Quality Limited STM Quality Limited Preparing for Lean Manufacturing Five Lean Principles Specify Value Identify what the customer actually wants Would you pay for something you didn’t want? If it’s not adding value, it’s adding cost! Identify the Value Stream Identify the whole process (mapping) What are the facts about our process capability? What ‘waste’ is there in the process? Make product flow Eliminate bottlenecks or manage them better Reduce or avoid ‘batch & queue’ Get the maintenance right Let the customer pull Only make what the customer requires, when the customer wants it. Continuous Improvement Increasing personal & company knowledge to pursue the complete elimination of waste.

4. © STM Quality Limited STM Quality Limited Preparing for Lean Manufacturing Reduction & elimination of ‘waste’ elements in the process Equipment reliability – Planned Preventative Maintenance (P.P.M.) Autonomous Maintenance & Condition Monitoring Continuous flow - one part at a time (JIT) & pull ‘Kanban’ systems Inventory (WIP) reduction throughout the process Defect reduction - right first time, error proofing & training Visual management – simple measures (KPI’s) & drumbeat Quick machine changeovers (SMED) Teamwork & communication Point of use storage but not ‘nests’ Bottleneck management So what does ‘best’ look like?

5. © STM Quality Limited STM Quality Limited Preparing for Lean Manufacturing Disorganised Organised

6. © STM Quality Limited STM Quality Limited Process Mapping A process is… A set of activities which convert inputs to outputs to meet agreed customer requirements. “Draw a flow chart of what you do. Until you do, you do not fully understand what you are doing, you just have a job” Dr W.E.Deming

7. © STM Quality Limited STM Quality Limited Process Mapping Characteristics of an ideal process… – Each step adds value – Each step is carried out only once – Steps are carried out in the best sequence – Uses the optimum level of resource – Meets customer needs consistently – Minimum space requirements

8. © STM Quality Limited STM Quality Limited Why Process Map? Biggest tool in lean – all others are deployed from mapping output Big picture – detail comes later Establishes real priorities by those who do the work – action plans with names & dates Dramatic short & medium-term results Idea generation & team involvement in decision making

9. © STM Quality Limited STM Quality Limited Process Atlas Customer needs CORE PROCESSES Satisfied Customer KPI’s MANAGEMENT PROCESSES STRATEGY DATA SUPPORT PROCESSES RESOURCES

10. © STM Quality Limited STM Quality Limited Boundaries and Scope Start to finish… order enquiry to receipt of payment or tighter definition we can influence? All possible products or ‘runners’ only? Think flow & volume What functions do we need involved beyond this room both internal & external? Is there an obvious need for more information at this stage?

11. © STM Quality Limited STM Quality Limited Lean Wastes The ‘8 Lean Wastes’ (7 + 1) Introduction to ‘TIM WOODS’

12. © STM Quality Limited STM Quality Limited TIM WOODS T– Transport I– Inventory M– Movement W –Waiting O –Over-processing O –Over-production D -Defects S -Skill