1. Lean Manufacturing - An Overview. Dr. Richard A. Wysk. rwysk@psu. edu
Lean Manufacturing - An Overview Dr. Richard A. Wysk Fall 2008
There are two parts to the Lean Manufacturing module. Part 1 focuses on a basic overview of Lean Principles, and describes “waste” in some detail. Part #2 deals more with the “flow” component of Lean.
The background required for these modules is limited to “an understanding of manufacturing systems”. Two approaches can be taken for this presentation. If a more senior audience is the focus, senior undergraduates, graduate students or industry practitioners, then the focus of implementation roadblocks can be maintained. For a less experienced audience, principles concerning more common examples (like office work and McDonalds) will make a more interesting “case” for examples. There is a Case Study that is used to illustrate Waste Reduction and Value Stream Mapping principles.

2. Broad Agenda Overview of Lean Manufacturing Case Study
Lean according to R. Wysk Set-up reduction and rapid response production systems
Changing in order to change more quickly
Case Study
Lean at home in the kitchen
Some models and discussions
Learning/forgetting
6 sigma in rapid response systems

3. Agenda Review brief history of manufacturing systems
Distinguish between mass, craft and lean manufacturing
Introduce key Concepts of Lean Manufacturing
Review the kinds of changes needed to be considered a lean manufacturer.
The focus here is on the trends towards smaller lot sizes, more frequent change over and higher flexibility required today.

4. Readings
Chapter 18 of Computer Aided Manufacturing, Wang, H.P., Chang, T.C. and Wysk, R. A., 4th Edition (2008 expected)
There is no good reference here. The web site is not operational at this time. Hopefully by August 2002, the introductory chapter will be available.

5. 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

6. 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
Good quality
Very expensive
Few produced

7. 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
Time & Motion studies - Fredrick Taylor
Interchangeable parts - Eli Whitney

8. 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.

9. 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
Term “lean” coined by John Krafcik, one of the research members on Jim Womack’s MIT team for the 5 year study.
Materials Labor Equipment Energy Methods Products
Source: The Machine that Changed the World Womack, Jones, Roos 1990

10. Lean Manufacturing Product Shipment Customer Order Waste Time Customer
is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste.
Business as Usual
Product
Shipment
Customer
Order
Waste
Time
Lean Manufacturing
The sooner product ships, the sooner Cedar Works gets paid
The faster material moves through the system
Less money tied up in inventory in the system
Customer
Order
Product
Shipment
Waste
Time (Shorter)

11. The Nature of Lean Mfg What Lean Mfg is not Characteristics Defined
JIT
Kanban
Six sigma
Characteristics
Fundamental change
Resources
Continuous improvement
Defined
“A system which exists for the production of goods or services, without wasting resources.”

12. Introduction In 1926 Henry Ford wrote
“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.”

13. Kaizen vs Reengineering
Creating an useable and meaningful standard is key to the success of any enterprise.
Businesses usually utilize two different kinds of improvements.
Those that suppose a revolution in the way of working.
Those that suppose smaller benefits with less investment.
Kaizen
Final situation
Initial situation
time
Reengineering
productivity

14. Kaizen vs Reengineering
The evolution consists of continuous improvements being made in both the product and process.
A rapid and radical change (kaikaku) process is sometimes used as a precursor to kaizen activities.
Carried out by the utilization of process reengineering or a major product redesign.
Require large investments and are based on process automation.
In the U.S., these radical activities are frequently called “kaizen blitzes”.

15. Kaizen vs Reengineering
If the process is constantly being improved (continuous line), the innovation effort required to make a major change can be reduced (discontinuous line in the left).
Otherwise, the process of reengineering can become very expensive (discontinuous line in the right).
Kaizen
Final situation
Initial situation
time
Reengineering
productivity

16. What makes a manufacturing system lean? – the 3 M’s of lean
muda – waste
mura - inconsistency
muri - unreasonableness

17. What makes a manufacturing system Lean?

18. Definitions Systems Waste Recognition Efficiencies Muda 7 types
Truly lean

19. “Anything that adds Cost
Waste
“Anything that adds Cost
to the product
without adding Value”
Who decides what is valuable? ---->>> Customer

20. 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)

21. 7 Forms of Waste Types of Waste CORRECTION MOTION WAITING PROCESSING
Repair or
Rework
Any wasted motion
to pick up parts or
stack parts. Also
wasted walking
Any non-work time
waiting for tools,
supplies, parts, etc..
Types of
Waste
PROCESSING
OVERPRODUCTION
Producing more
than is needed
before it is needed
Doing more work than
is necessary
Discuss each
Ask for examples of each type from different work areas at Cedar Works.
Transition to Mercury Marine video.
After video, tee up introduction of Cedar Works Production System and Lean Manufacturing.
“So what do you think it will take for Cedar Works to steadily eliminate waste, or NVA from their operations??
Discussion
INVENTORY
CONVEYANCE
Maintaining excess
inventory of raw mat’ls,
parts in process, or
finished goods.
Wasted effort to transport
materials, parts, or
finished goods into or
out of storage, or
between
processes.

22. Let’s use lean for something we know about – cooking for a party

23. Excess /Over-production – As applied to fast food preparation
________________

24. Waiting/Delays
__________

25. Transportation/Movement
_________

26. Layout efficiency

27. Inventory
_________

28. Inspection
__________________
______________

29. Corrections and defects
____________

30. Processing inefficiencies
__________________

31. Processing inefficiencies
Automatics vs. manual

32. Over-Processing inefficiencies
Automatics vs. manual
Two people doing some thing that one could do
Workplace layout
Congestion
Labeling

33. Over-Processing inefficiencies
Material waste

34. Manufacturing inefficiencies
Processes (value added)
Inefficient process selection
Inefficient process operation
Too much direct labor
Delays
Schedules
Blocking
Congestion
Quality
Any defects
Rework
Set-up
Setting up a machine instead of running it
Accumulation of tooling and other processing needs

35. Machining example CNC versus manual Tool changer
Pallet changer/bar feeder

36. How do CAD/CAM systems work?
Developing NC code requires an understanding of:
Part geometry
Tooling
Process plans
Tolerances
Fixturing
Most CAD/CAM systems provide access to:

37. Instructions can be generated for a generic NC machine
A set of tool paths and positions can be automatically generated
These paths can be edited and modified
These paths and instructions can then be “posted” to a specific machine

38. The Design Process : Then and Now
Before CAD
After CAD

39. Exercise (3-5 minutes)
Discuss how CAD/CAM helps in Lean Manufacturing? Elaborate on any one aspect.
What advantages does CAD/CAM approach offer in NC Programming?

40. CAD/CAM Support
AutoCAD
Pro Engineer
Solidworks
MasterCAM

41. What do I need to begin MasterCAM?
Part geometry
Draw or import
Tooling
Library or create
Process plans
Fixtures
Define orientation and location

42. $ Who wants what... Cash !! Value !! Customer Low Cost Your Company
High Quality
Availability
What we have here is a pretty fundamental relationship. Each party wants something; the customer and Cascade.
The essential ingredients that make the whole thing go are:
Value to the Customer
Profit to Cascade
These are the two fundamentals that MUST be there for a company to grow and thrive. If only one side of this flow takes place, the company will soon be out of business;
if the customer does not receive adequate value
if the company doesn’t make sufficient profit
As for value to the customer, what determines if the customer is getting good value?
Answer: Desired product and features at low cost.
As for Cascade, what determines how much profit you make?
Answer: Sales Price - Cost to produce
Transition to next slide
Your Company
Profit
Repeat Business
Growth

43. Elements of Lean Manufacturing
Waste reduction
Continuous flow
Customer pull
50, 25, 25 (80,10,10) Percent gains

44. Benefits of Lean Manufacturing
% Waste reduction
WIP
Inventory
Space
Personnel
Product lead times
Travel
Quality, costs, delivery

45. 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

46. Tools of Lean Mfg/Production
Waste reduction
Full involvement, training, learning
Cellular mfg
Flexible mfg
Kaikaku (radical change)
Kaizen (continuous improvement) & standard work 5S
Jidoka (autonomation)
Poka-yoke (visual signals)
Shojinka (dynamic optimization of # of workers)
Teien systems (worker suggestions)
Six sigma

47. Tools (cont.) Continuous Flow (10% - 25%) SMED (Shingo) Andon
Takt time
Line balancing
Nagara (smooth production flow)

48. Tools (cont.)
Customer pull (10%- 25%)
Just-in-time
Kanban

49. Standardized Work 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
Show sample Standardized Work from Cedar Works
Bring training manual

50. Other Tools Visual Factory Error Proofing Quick Change-over
Total Productive Maintenance

51. 5S Programs Seiri (sort, necessary items)
Seiton (set-in-order, efficient placement)
Seison (sweep, cleanliness)
Seiketsu (standardize, cont. improvement)
Shitsuke (sustain, discipline)

52. Visual Factory
“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
1S Sift and Sort (Organize)
2S Stabilize (Orderliness)
3S Shine (Cleanliness)
4S Standardize (Adherence)
5S Sustain (Self-discipline)

54. Price Increase Bigger Profit Cost + Profit = Price Some Profit 3
Price to Sell 1 2 3
Bigger Profit 2
Some Profit
Cost to Produce 1
Show left hand side first,
1. Determine Cost to produce an item
2. Add profit you want
3. This gives you Price to the customer
If you want to increase your profit under this system, how do you do it? >>> Raise the price to the customer. reveal right hand side
This is what most companies operated in the 60’s and 70’s, just pass the cost along to the customer.
But as the markets get more and more competitive, do you think this strategy will still work?? NO!!
So if Cascade wants to increase their profits now a days, how could they do it??
Discussion
Transition to next slide......
Cost + Profit = Price

55. Cost Reduction Bigger Profit Price - Cost = Profit Some Profit
Price to Sell 1 1
Some Profit 3
Bigger Profit 3
Cost to Produce 2 2
Show left hand side first,
1. Determine Price customer is willing to pay
2. Subtract the Cost to produce an item
3. This leaves your profit
Under this system if you want to increase your profit, how do you do it? >>> Lower Cost.
How do you suppose you lower Cost??
Elimination of Non-Value Added Activity.
Elimination of Waste !!
What exactly is waste? Discussion
Price - Cost = Profit

56. What value is Added by: Storing Counting Sorting Moving
Acknowledgments
Invoices
What value is
Added by:
Expediting
Rework
Inspecting
Discussion
None of these activities adds Value.
Some are important or necessary, but None add value.
Loading / Unloading
Scrap
Returns to Suppliers
Receiving Report
Repackaging

57. Toyota Production System
Best Quality - Lowest Cost - Shortest Lead Time Through shortening the Production Flow by Eliminating Waste
Just in Time “The right part at the right time in the right amount”
Jidoka “Built in Quality”
Manual / Automatic Line Stop
Labor-Machine Efficiency
Error Proofing
Visual Control
Continuous Flow
Pull System
Level Production (Heijunka)
Flexible, Capable, Highly Motivated
People
Operational Stability
Standardized Work
Total Productive Maintenance
Robust Products & Processes
Supplier Involvement

58. Very Frequent Change-over
Right Hand
Left Hand
Left Hand
change over
Right Hand
8 hours

59. Building in Quality JIDOKA
Machines intelligence to be self-operating and self-stopping
People served by machines, not vice versa
Quality built-in, not inspected-in
Efficiency human work separated from machine work, people freed to do value-added work

60. Quality as part complexity increases
Number of features P{Good Part} P{Good Part}
3 sigma sigma
% %
% %
% %
% %
P{good part} = [P{good dimension and good location}]# of features

61. Planning for Quality
Plan for control limits well outside process variability
Monitor the process; not the product
Make sure that process/procedures do not go out of control

62. Error Proofing
Preventing accidental errors in the manufacturing process
Error detection
Error prevention
A way to achieve zero defects.

63. Performance barriers
Arrivals 60 minutes between parts Service 55 minutes/part

64. Performance barriers (con’t)
Arrivals Service Wait in system
Constant Constant 0 minutes
Random (Poisson) Constant minutes
Random (Poisson) Random (Poisson) minutes

65. End - Waste Elimination
Questions?