1. Lean Operations “ Eliminate Waste Through Continuous Improvement ”

2. A Little History!  Benjamin Franklin  Poor Richard’s Almanac: He that idly loses 5s. [shillings] worth of time, loses 5s., and might as prudently throw 5s. into the river. He that loses 5s. not only loses that sum, but all the other advantages that might be made by turning it in dealing, which, by the time a young man becomes old, amounts to a comfortable bag of money."

3. A Little History!  Gilbreth  Saw that masons bent over to pick up bricks from the ground. The bricklayer was therefore lowering and raising his entire upper body to get a 5 pound (2.3 kg) brick but this inefficiency had been built into the job through long practice. Introduction of a non-stooping scaffold, which delivered the bricks at waist level, allowed masons to work about three times as quickly, and with less effort.

4. A Little History!  Ford: Eliminate Waste  "I believe that the average farmer puts to a really useful purpose only about 5 %. of the energy he expends. … Not only is everything done by hand, but seldom is a thought given to a logical arrangement. A farmer doing his chores will walk up and down a rickety ladder a dozen times. He will carry water for years instead of putting in a few lengths of pipe. His whole idea, when there is extra work to do, is to hire extra men. He thinks of putting money into improvements as an expense. … It is waste motion— waste effort— that makes farm prices high and profits low."

5. A Little History!  Ford: Design for manufacturing  Start with an article that suits and then study to find some way of eliminating the entirely useless parts. This applies to everything— a shoe, a dress, a house, a piece of machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut down the cost of making....But also it is to be remembered that all the parts are designed so that they can be most easily made."

6. A Little History!  Ohno – put ideas into practice systematically  “When bombarded with questions from our group on what inspired his thinking, Ohno just laughed and said he learned it all from Henry Ford's book."

7. Waste: Classification  Waste from overproduction  Inventory waste  Waste from waiting time  Transportation waste  Processing waste  Waste of motion  Waste from product defects

8.  A system that continually searches for and eliminates waste throughout the value chain.  Views every enterprise activity as an operation and applies its waste reduction concepts to each activity - from Customers to the Board of Directors to Support Staff to Production Plants to Suppliers. TPS: Toyota Production System

9. Reducing Waste: Quality at Source  Failsafe design ( Poka-Yoke )  Stopping work immediately when problem occurs ( Jidoka )  Line-stopping empowerment ( Andon ) TPS: Toyota Production System

10. Poka-Yoke

11.  Poka-yoke page: http://csob.berry.edu/faculty/jgrout/pokayoke.shtml

12. Jidoka

13. Andon

14. Defects found at: Current Process Next Process End of Line Final Inspection End User Impact to the Company: · Very Minor · Delay · Rework · Rescheduling of work · Significant Rework · Delay in Delivery · Additional Inspection · Warranty Costs · Administrative Costs · Reputation · Loss of Market Share Reducing Waste: Quality at Source

15. Reducing Waste: Increase Problem Visibility Missed Due Dates Scrap & Rework Machine Downtime Supply Fluctuations Excessive Paperwork Inventory

16. Material Flow Information Flow FGI Customer Raw Material Supplier Final Assembly PUSH FGI Customer Raw Material Supplier Final Assembly PULL TPS System uses Kanbans Reducing Waste: Push versus Pull System

17. Reducing Waste: From Functional Layout…

18. Production Control FA Base Cut Roof Cut Base Assy Production Control FA Base Cut Roof Cut Base Assy Production Control FA Base Cut Roof Cut Base Assy...to Cell Layout

19. Batch Mfg. (Lot Size = 4) Flow Mfg. (Lot Size = 1) 0123401234 8 16 Time Example Process: A B C D 1 min/job A B C D 4 4 4 4 A B C D Time 1 1 1 1 0123401234 8 16 Reducing Waste: Cut Batch Sizes

20. Batch Production Schedule Mixed Production Schedule (AAAABBBB...) (ABAB...) Apr/12.........15..................30 Apr/12..........15...................30 Products A B time FGI time FGI Synchronize: Heijunka Mixed, Level/Balanced Production

21.  Increase visibility of waste  Standardize work  Targeted improvements  Active worker involvement  Supplier involvement  Time for experimentation  Exploratory stress Continuous Improvement: Kaizen

22. A system that continually searches for and eliminates waste throughout the value chain.  Poka-Yoke  Jidoka  Andon  Kanban  Heijunka  Kaizen TPS: Toyota Production System

23. Management By Stress: Does “S” in TPS Stand for Stress (1)?  “Empower employees”  Employees responsible for errors.  “Drive out waste”  No slack in the human system.  “Kaizen”  Improvements discovered by workers are co-opted by management.  “Workers design their jobs”  Workers do industrial engineering jobs without the pay.

24.  “Reduce indirect labor”  Make workers do management’s job.  “Reduced buffers”  More stress and less room for error or fatigue.  “Respect for workers”  As long as workers define their personal goals as satisfying management’s agenda…  “Productivity enhancements are dramatic”  Workers work real hard, with little spare time. Management By Stress: Does “S” in TPS Stand for Stress (2)?

25. If You’re Curious to know more..  Lean Blog: http://kanban.blogspot.com/http://kanban.blogspot.com/  Books:  Ohno, Taiichi (1988), Toyota Production System: Beyond Large-Scale Production, Productivity Press.  Womack, James P., Jones, Daniel T., and Roos, Daniel (1991), The Machine That Changed the World: The Story of Lean Production, Harper Perennial  Womack, James P. and Jones, Daniel T. (1998), Lean Thinking Free Press.  Levinson, William A. (2002), Henry Ford's Lean Vision: Enduring Principles from the First Ford Motor Plant, Productivity Press  Ford, Henry and Crowther, Samuel (2003), My Life and Work, Kessinger Press.