1. Concentrated Overview of Lean Concepts and Processes
Bill Motley, CEM, PMP Program Director, Production, Quality & Mfg
Curricula Development and Support Center

2. E-MFG SCM LEAN zero waste, max flexibility, max value stream
the use of the Internet and all other electronic means to manage the entire manufacturing
enterprise
SCM
all activities associated with the flow and transformation of materials and its related information from source to end user

3. WHAT IS LEAN ? Lean is the Toyota Production System
Lean systems use less of everything…half the people…half the space…half the inventory…half the investment…half the engineering effort…
Lean means right thing, right place, right time, right quantity
A lean system adds value by eliminating waste, being responsive to change, focuses on quality and enhancing the effectiveness of the workforce
Lean systems focus on maximizing the value stream while eliminating all waste
Lean is a way of thinking that focuses on constantly shortening the order to delivery time by maximizing the flow of information and material while reducing cycle time.

4. VALUE The customer must be willing to pay for it
It must transform the product
It must be done right the first time
If you pulled this step, would the customer miss it? If no, then why are you doing it?

5. CONTINUOUS IMPROVEMENT
CONCERN FOR PEOPLE
and
CONTINUOUS IMPROVEMENT

6. Lean is a System Product Development -3P- Manufacturing -Partnering-
Supply Chain

7. PRODUCTION PREPARATION PROCESS 3P
PRODUCIBILITY, MISTAKE PROOFING & QUALITY ARE DESIGNED-IN
THE PRODUCTION SYSTEM IS CONSIDERED A PRIMARY DESIGN CONSTRAINT. ANY LIMITATIONS ARE CORRECTED OR THE DESIGN IS CHANGED.
THE PRODUCTION SYSTEM (LAYOUTS, MACHINE CONFIGURATIONS, AND MAT’L MOVEMENT) IS PLANNED, SIMULATED, EVALUATED AND IMPROVED USING 3D MODELS AND COMPUTER MODELS BEFORE PRODUCTION STARTS – VIRTUAL KAIZEN
3P IS PLANNED AND MANAGED USING THE IPPD PROCESS – CROSS FUNCTIONAL PARTICIPATION FROM ALL INVOLVED FROM THE SHOP FLOOR TO THE CHIEF DESIGN ENGINEER
Production Preparation Process (3P)
3P is a technical process used to transition a new design into production. 3P may also be used when introducing a new manufacturing process, modifying an existing process or when a substantial change in the production rate of an existing process is required.
3P is a formal, standardized process that is an integral part of the product development process and begins when product requirements have been finalized. In effect, 3P becomes a design requirement that requires that the design can actually be produced given the capabilities of the manufacturing operation. 3P is used to create a lean operation before the organization buys any equipment, facilities, commits to a plant lay-out or hires any personnel. 3P is a joint effort between design and manufacturing engineers and managers.
The end result of a 3P effort is a lean operation whose output meets customer requirements and work flows in the shortest possible time.
The 3 Principles of the Production Preparation Process
Quality is designed into the product and the manufacturing process
Producibility is key design requirement. Design engineers make a determined effort to ensure the product is easy to manufacture. Standardized parts are used wherever possible. Tight tolerances are used only on components deemed to possess critical characteristics. The parts count is minimized as well as the number of different types of parts. Special processes, special materials and special tooling are minimized. The design takes into account how workers will be required to access and work on the product. Producibility is the responsibility of the design function with heavy input from the manufacturing function.
Manufacturing processes are evaluated for cost, availability, capability to meet product tolerances and their inherent variability (are they repeatable?) Do new processes need to be developed? If new materials are being used, have they been adequately characterized, and tested at production representative rates and quantities, using proven processes? Manufacturing feasibility studies are conducted to identity risk and potential risk mitigation actions arising from the use of new processes and materials.
The role of outside suppliers and required competencies and capacities are also evaluated at this time. How many suppliers will be needed? How will they be selected? How will the supply chain be organized and managed?
The Production System is Designed to meet the customer’s requirements in terms of Performance, quality, cost and schedule using lean concepts
Integrated product teams of design and manufacturing personnel meet regularly to identify barriers to quality, process flow, cost and schedule. These teams may even visit their major production facilities to ensure they have a true understanding of the environment in which the product will be produced.
Lean concepts, such as machine layouts in cellular configurations and single piece flow, are evaluated using computer simulations or even life-size cardboard cut-outs which can be quickly and easily changed to evaluate worker motions and material flows. The shop floor workers who will be actually involved during production are involved in these simulations as much as possible. Iterative kaizen events are conducted on these simulated layouts, worker motions, and material flows to generate improvements before any real work commences.
3. The Use of Cross-Functional Integrated Product Teams using an Integrated Product Process Development Philosophy
All parties involved in production should be involved. These functional groups include design, manufacturing, tooling, purchasing, quality assurance, outside suppliers and the end-user. This approach is used to ensure that, to the greatest extent possible, all requirements and possible problems are surfaced well before production starts.

8. Customer Focus at the CORPORATE LEVEL
HIGHEST QUALITY as defined by the customer
LOWEST MFG COST
SHORTEST LEAD TIME

9. Lean Priorities at the FACILITY Level
1. Environmental Safety and Occupational Health
2. QUALITY
3. PRODUCTIVITY
4. COST

10. Operating Philosophies on the SHOP FLOOR
MAKE ONLY WHAT IS NEEDED
NEVER PRODUCE A DEFECT – NEVER PASS A DEFECT ON
ELIMINATE ALL WASTE
FOCUS ON FLOW AND CYCLE TIME REDUCTION

11. What is Waste?
Waste is anything that does not add value for the customer or ………
Anything your customer is not willing to pay more for.

12. The Seven Wastes in Manufacturing (Muda)
1. Over Production--Producing more material than is needed before it is needed is the fundamental waste in lean manufacturing.
2. Excess Inventories--Material sits taking up space, costing money, and potentially being damaged. Problems are not visible.
3. Waiting--Material waiting increases lead time and cost without adding value to the product.
4. Producing Defective Products--Defective products cause rework, impede work flow and lead to wasteful handling, time, and effort.
5. Wasted Employee Motion--Toolrooms.
6. Transportation--Moving material between work sites does not add value.
7. Over-Processing--Over engineering, inspections, layers of document review, unnecessary requirements.
How does this apply in the Navy Maintenance community?
1. All known material in the Shipyard by A-0
2. Engineering paper produced in abundance very early which drives the need for reworked paper
3. Ditto
4. Inspecting quality in through inspection versus building quality into the process
5. Let’s see now… EVERYWHERE I look! Pile material for later dig through to obtain. Move pallet to get to another. Inspections due to lack of faith in the process.
6. Processes that work in a back-shop that could be worked in place. Palletized material in the way of other material, multiple handling
7. Much in our processes that is non-Value Added. What value is added by writing an engineering request. Also, see later Value Stream Mapping

13. House of Lean Stability Standardized Work Just in Time
Jidoka (Autonomation)
Involvement by all
Hoshin Planning

14. STABILITY
5S (6S)
TOTAL PRODUCTIVE MAINTENANCE

15. And Disciplined Manner
Lockheed Martin’s “6S” Visual Factory & Japanese 5S
SERI
IDENTIFY/SEPARATE NECESSARY FROM UNNECESSARY
SEITON
PLACEMENT/IDENTIFICATION OF NEEDED WORK ITEMS
SORT
Clearly Distinguish
Needed Items From
Unneeded Items
And Eliminate
The Latter
STRAIGHTEN
Keep Needed Items
In The Correct Place
To Allow For
Easy And
Immediate
Retrieval
SAFETY
Identify
Danger And
Hazard
SUSTAIN
SHINE
SEISON
MAINTAINING A
CLEAN WORK PLACE
SHITSUKE
NOTATIONAL METHOD FOR THE CONFORMANCE TO RULES
Maintaining
Established
Procedures
Keep The
Workshop
Swept And
Clean
Consistently
Applying 6S
Methods In A Uniform
And Disciplined Manner
STANDARDIZE
SEIKETSU
STANDARDIZATION
FOR EASE OF USE

16. Total Productive Maintenance
The Goals:
- Zero breakdowns
- Zero defects
- All machines functioning optimally
How:
- Operator-centered maintenance
- Scheduled maintenance that is always conducted
- Proper operation & set-up of machinery
- Proper selection of machinery
- Use of FMEA to know how machines could fail and the effects

17. STANDARDIZED WORK TAKT TIME CELLULAR PLANT FLOOR LAYOUTS
STANDARDIZED WORK PROCESSES

18. TAKT TIME
The available daily production time divided by the rate of daily Customer demand. Takt time sets the pace of the production process to match the rate of customer demand and becomes the “heartbeat” of the production system.
If our daily order is 900 units and we operate two 450 minute shifts, our Takt time is 900/900 = 1 minute. We should see a product moving past every one minute. We want our cycle time and takt time to be the same.
Takt time is the German word for musical meter which the Japanese picked up on during the 1930’s from German aerospace engineers while they were learning aircraft production. Takt time is a tool that enables production to link up with customer demand thereby matching the pace of production to the pace of actual final sales. Takt time is based upon the pace that customers buy the product and is needed for capacity planning. This planning needs to reflect a balanced capacity across the value chain so that all operations in the value stream produce to takt time. You calculate the actual takt time for each product and part. You take the number of seconds required for each product and part to determine the number of seconds that should be allocated to each actual process in the entire production chain. Production balancing across and among numerous processes is what determines the heartbeat of a lean system.

19. Cell Concept
Theory: One piece continuous flow with all required tools and parts at each work station
Benefits:
Improved cycle time
Improved quality
Reduced WIP
Reduced artisan ‘travel’ time
Eliminating NVA activities 2 1 3 4
Raw material
Finished goods
Flow comes first by developing a production system that gets to as close as possible to making only what the customer wants when the customer wants it throughout the production chain
The foundation of the house of lean is to make the material flow continuously with minimal set-up time between change over of machinery. The ideal flow is single piece flow in work cells. Single piece flow is not always achievable but the closer one gets to single piece flow the greater the benefits. Here are some guidelines and benefits in working with cells:
Work cells can be designed to significantly reduce waste associated with wasted motion and inventory
Once the part enters, work never stops until it is completed.
May require more, smaller equipment, but what is more important machine efficiency or system efficiency.

20. Standardized Work Processes: reduces process variability and allows you to find the root causes of problems easier.
Improve the current process using IE methods, and new technology, if appropriate.
Train everyone. Re-train regularly.
Everyone performs the process the same way, every time using detailed work instructions and job aids. No exceptions.
Repeat continuously.

21. Only make what is needed (Sold) When it is needed
Just-In-Time
Only make what is needed (Sold)
When it is needed
In the smallest amount needed
(with the Minimum Materials, Equipment, Labor and Space)
Just-In-Time is
NOT a Zero
Inventory System.

22. Benefits of Creating Flow
A. Quality:
Work is passed directly to next Process with
no defects
B. Productivity:
Minimize wasted movement, warehouses, and double handling
C. Productivity:
Problems are identified and solved real time
D. Lead Time:
Shortest supply chain, highest flexibility to satisfy customer demand
E. Team Member Morale:
Value of work is more visible, recognized
F. Cost:
Reduced Inventory Levels
By creating flow the intent is pass work directly to the next process without any defects. The worker in the cell the is responsible for quality and has made a commitment not to pass defective product on to the next process. If defects or problems are detected by the worker these problems are identified immediately because the work is more visible. Workers are encouraged to find the root cause of the problem by using a process called the 5 why’s. The 5 whys is simply asking why the defect occurred until you trace the problem all the way back to the root cause. Here is an illustration of the 5 why’s. Rather than a manufacturing root cause analysis we will use the simple illustration of a worker arriving for work late.
Lt Col Snodgrass was late for work today. Why?
- His car broke down.
2) Why did his car break down?
- He lost electrical power
3) Why did he lose electrical power?
- His battery went dead.
4) Why did his battery go dead?
- His alternator failed to recharge the battery
5) Why did his alternator fail?
- The crystals inside the alternator wore out.
So the solution here for this analysis is to fix the crystals inside the alternator to restore the alternator's ability to recharge the battery.
Source: Toyota

23. JIT Requires: Pull instead of Push Heijunka – Production Leveling
Kanban – a signal to produce
Delivery to point of use
World class suppliers
Very high quality
Little cycle time and product variability

24. Production Leveling/Smoothing The daily production schedule reflects demand by product variant %. Example: The requirement is fuzes per month (20 days). There are 3 variants of this fuze. We will need to produce 500 per day.
5000 Mod A, 5/10= x 500 = 250 per day
4000 Mod B, 4/10= x 500 = 200 per day
1000 Mod C, 1/10= x 500 = 50 per day
This prevents bulges in our inventory levels and our suppliers’ levels. If we produce defects in one model, it reduces the number of defects produced before they are detected. This helps prevent worker boredom. Small set-up/change-over time makes this technique possible.

25. Setup Reduction
Setup time is the time from the last good part of the previous setup to the first good part of the new setup.
Single minute exchange of die – doing it in less than 10 minutes.
Move from internal to external setups. Do as much as possible while a machine is running.
What is set up time? Well if we are talking about fabricating a part it’s the time from the last good part of the previous setup to the first good part of the new set up. To illustrate the concept we will use a punch press operation, but the same approach can be applied to all kinds of machines. The first thing to do is separate the internal setup from the external setup. The internal setup are those actions that are required when the machine is stopped like removal and setting of dies. The external setup are those actions that can be taken while the machine is still operating. After the machine is stopped the worker should never have to leave to handle any part of the external set up. The external set up involves having the jigs, fixtures, tools, materials, and new die perfectly prepared in advance and waiting beside the machine. This involves standardizing the routine for change over and having them written or visually available for the worker. Many times internal set up actions can be eliminated and converted to external. For example the die heights of a punch press or a molding machine could be eliminated by using a spacer to so the stroke adjustment will not be required. Another way would be to standardize the die height at a certain size so the stroking adjustment could be eliminated. Where lot production is necessary for technological and economic reasons lean plants try to reduce setup change time to enable flexible production of multiple products. Rather than optimizing the lot size with a static assumption for setup change cost and inventory carrying cost ( i.e., the economic order quantity analysis) the pressing shops try to reduce die setup cost. They reduce the lot size of stamping operations without sacrificing total manufacturing cost. Between the period of 1945 to 1954 at Toyota setup time of the pressing department was two to three hours. In the period of 1964 to 1970 this time was reduced to 15 minutes. Today they have single-digit setup changes of less than 10 minutes. In many cases today changes take place in less than 3 minutes. Lot sizes for these press shops is very small according to automotive industry standards.
Large lot sizes are the single largest impediment to flow!
To reduce lot sizes, we must make small lot sizes economically
feasible by reducing setup time.

26. SET UP TIME TOYOTA PRESSING DEPARTMENT
1970- Present
2- 3 hours
15 minutes
< 3 minutes

27. Autonomation
JIDOKA 2 A L E R T S O P
DEFECT
BREAKDOWN
CHANGE
Machine
Production Machines and Systems can DETECT Abnormalities and will STOP Automatically

28. The Benefits of Jidoka Defects are NOT PASSED on to the next process
Equipment breakdown is prevented because problems and their causes become immediately apparent
Machine work is separated from human work so that team members can operate multiple machines (savings in manpower)

29. Machine Andon GREEN - NORMAL OPERATION RED - MACHINE PROBLEM
YELLOW - TOOL CHANGE, QUALITY CHECK, ETC.

30. What is Mistake Proofing?
(Poka-Yoke)
A control function assisted by internal devices that detect abnormal conditions and errors.
A device or procedure to prevent a defect during order-taking or manufacturing.
Mistake Proofing consists of more than just devices. It is a philosophy of design and manufacturing.

31. Poka Yoke (Mistake Proofing)
Fueling area of a car has three error-proofing devices:
1. Insert keeps leaded-fuel nozzle from
being inserted
2. Tether does not allow loss of gas cap
3. Gas cap has ratchet to signal proper
tightness and prevent over tightening
New lawn mowers are required to have a a safety bar on the handle that must be
pulled back in order to start the engine.
If you let go of the safety bar, the mower
blade stops in 3 seconds or less.

32. Employee Involvement Kaizen – incremental, continuous improvement
Hoshin Planning – everyone, at all levels is involved in goal setting and resource allocation. No unfunded mandates.

33. Concern for People Servant Based Leadership
- A happy employee means a happy customer
- Management creates most problems
- Open Book Management – show everyone the big picture
Consensus Management (Hoshin & Nemawashi Processes)
- All levels involved in goal setting & resource allocation
- Make decisions slowly by consensus; implement rapidly and correctly the first time you do it.
- Consensus means all are involved, heard and understood (“catchball”). Decisions start at the bottom.
Empowerment & Trust
- People closest to the work make the decisions
- Teams have authority to make decisions within predetermined bounds without prior approval
- Layoffs are used as the very last resort to business downturns
- Wide spans of control

34. Summary of the TPS (Lean)
It always begins with the customer
The customer wants the right thing, at the right time, right place, right price, with perfect quality: value
Value is always the end result of a process
Each process step must contain zero waste
To achieve zero waste, each process step much be valuable, capable, available, adequate and flexible
A truly lean process is a perfect process
Perfection is not possible, but lean enterprises behave as if it is

35. Lean is a way of thinking – not a list of things to do.
Take a long term perspective. It took 60 years to develop and is still developing, plus it was based on all the pioneering work of Henry Ford.
Don’t tailor out the hard parts, or it won’t work.
People make it happen, not the tools. You may have to change your paradigm about how you manage people.

36. Lean and Six Sigma Toyota does not have a Six Sigma program
Toyota starts with asking “Why?” 5 times
- they consider the Why?5X to be the most powerful problem solving tool
- they are well schooled in all the tools of Six Sigma