IT-465

1
IT-465

• Introduction to
• Lean

2
Introduction

• Outcomes
• Discuss the origins of Lean
• Learn why Lean is important in manufacturing and
  service industries

3
Lean Operating Concepts

• Developed and refined by the Japanese
• The Toyota Production System (TPS) and later in
  the USA as Lean
• Based on the works of Taiichi Ohno, Taguchi,
  Shigeo Shingo, Deming, Juran, and others.
• The fathers of TQM, Lean, and Six Sigma have many
  common sources with modern Lean approaches

4
History of Lean Production System
5
Another Definition of Lean
6
Another Definition of Lean

• Lean Tool Box
• Introduction to Lean
• Prominent figures of Lean
• Lean is not just for manufacturing
• Value add and waste
• Waste walks
• Spaghetti charts
• Hoshin planning
• Value Stream Mapping
• 5S
• Poka-yoke, error proofing

• Total Productive Maintenance (TPM)
• Kaizen
• Quick change-over/SMED
• Pull systems/supermarket
• Standardized work
• Cellular manufacturing
• Theory of constraints
• Barriers to implementation
• Quick response mfg

7
History of Lean Production Systems

• A Lean Focus Continuous elimination of waste
  driven by customer satisfaction
• Customer Satisfaction
• Meeting (or exceeding) customer expectations for
  the cost, quality, delivery, and suitability of
  products and services provided
• Delighting the customer means providing the
  (benchmarked) best quality, service, and delivery
  at a fair market price.

8
Customer Satisfaction

• Conventional wisdom Satisfying customers costs
  more
• Wastes and Opportunities
• Wastes are any form of wasted resources or effort
  beyond the minimum required to satisfy customer
  perceived value-added activities in products and
  services provided
• Opportunities are revenue/value-generating
  activities that are being over-looked or not
  optimized in the current business system

9
Adding Value

• Value
• Anything the customer is willing to pay for
• Must satisfy all three of the following
• It changes the shape or form of the process or
  product
• The customer cares about it
• Its done right the first time
• The Paradox
• Waste elimination increases customer satisfaction
  while at the same time reduces costs to produce
  goods and services

10
Summary

• Lean has been around a long time
• Lean is based on the collective learning of many
  gurus and many thousands of companies over the
  last 100 years.
• Any kind of business can benefit by applying the
  concepts.
• Lean focus reducing time and wastes in
  processes, focus on the customer.

11
Prominent Figures of Lean

• Outcome
• Become familiar with the important figures in the
  history of Lean Six Sigma

12
The Origins of Lean

• Henry Ford
• The Father of Lean
• Considered human waste to be the worst form
• Used time and motion studies to develop assembly
  line
• Moving assembly line reduces operator motion and
  reduces lead time

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The Origins of Lean

• Sakichi Toyoda
• Noticed that if there was a problem in
  production, it was produced over and over,
  creating a lot of waste
• Developed the concept of Poka-yoke mistake
  proofing

14
The Origins of Lean

• Kiriichi Toyoda (Sakichis son)
• Wanted to create a car company
• Studied Ford Noticed that too much material
  created delays
• Created concept of Just-In-Time Producing the
  right part in the right place at the right time

15
The Origins of Lean Six Sigma

• Taiichi Ohno
• V.P. of Engineering at Toyota
• Founder of Toyota Production System (TPS)
• Believed in creating a profound image for people
  to grasp
• Challenged employees by telling them what to do,
  but not how to do it.

16
The Spread of Lean Six Sigma

• Shigeo Shingo
• Worked at Toyota with Taiichi Ohno
• Perfected the art of Single Minute Exchange of
  Dies (SMED)
• Promoted TPS principles and setup reduction
• Helped to create material replenishment based on
  US supermarket concepts kanban feed me next
• Sprea Lean principles around the world

17
The Spread of Lean Six Sigma

• Dr. William Edwards Deming
• Was sent to Japan after WWII to assist with
  quality issues
• Developed Plan-Do-Check-Act (PDCA) approach to
  defect reduction
• Change agent for Japans economy

18
Lean

• It is not only for manufacturing
• Principles apply to service and process
  industries also
• Based on the Toyota Production System
• Make sure that everything flows
• Look for waste at every step of the process,
  eliminate it, and make sure it never comes back

19
Lean

• Lean Service
• Focus on reducing service time
• Every process has waste, regardless of industry
• Lean Process
• Create product just-in-time
• Deliver what the customer needs, in the quantity
  needed, when the customer needs it.
• Continue to focus on improvement

20
Value Add and Waste

• Outcomes
• Understand the concept of value add
• Understand the types of waste
• What is Lean Manufacturing
• The fundamental principal of Lean Manufacturing
  is to eliminate waste
• Create flow, eliminate waste

21
What is Lean manufacturing
22
Five Steps of Lean Implementation

• Specify value identify what is value and what
  is not
• Anything the customer is willing to pay for
• The process object has to be physically changed
• Must be done right the first time
• Map the value stream
• Create flow
• Pull
• Pursue perfection
• Waste is not value added

23
Eight Types of Waste

• Downtime
• Defects
• Overproduction
• Waiting
• Non-utilized talent
• Transportation
• Inventory
• Motion
• Extra processing
• The 8 types of waste take up 95-98 of all lead
  time.

24
Defects

• Definition
• Any part not made, or service rendered, to the
  customers specifications the first time
• Money and time wasted
• Causes
• Lack of process controls
• Poor quality of incoming materials
• Inadequate operator training
• Poor work instructions

25
Overproduction

• Faster than needed
• Sooner than needed
• More than needed

26
Waiting

• Time lost when people, material or machines are
  waiting
• Causes
• Unbalanced workload
• Equipment breakdowns
• Long set-up times
• Poor material handling practices

27
Non-Utilized Talent

• Wasted potential for improvement results when
  people doing the work are not consulted for ideas
  on improving the methods of work
• Causes
• Old guard thinking, politics, business culture
• Low or no investment in training

28
Transportation

• Transportation of parts and materials around a
  facility creates waste
• Causes
• Poor plant layout
• Large batch sizes
• Large storage areas

29
Inventory

• Any material in excess of the one piece required
  for the next step in production
• Three Types
• Raw material
• Work-in-progress
• Finished goods
• Causes
• Inventory held just-in-case problems arise
• Unreliable shipments by suppliers

30
Motion

• Movement of people or machines that does not add
  value to product
• Causes
• Poor plant or workstation layout
• Poor workplace organization and housekeeping
• Sorting/looking for items

31
Extra Processing

• Doing more than minimum required to transform
  material into an acceptable product
• Causes
• Accommodate perceived customer needs
• Redundant approvals/inspections required
• Unnecessary reports produced
• Examples
• Duplication
• Rework
• Engineering changes

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Wrap Up

• 8 types of waste
• D.O.W.N.T.I.M.E.
• 3 parts to Value Add
• Customer willing to pay for it
• Changes the process object
• Done right the first time

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Five Steps of Lean Implementation

• Specify value
• Map the value stream
• Create flow address defects to create flow
• Pull
• Pursue perfection
• Poka-yoke (mistake proofing)
• The removal of all potential causes of error
  through design, process, or mistake-proofing
  devices, to ensure consistent process results
• Poka-yoke helps build quality into processes to
  achieve zero defects

34
Zero Defects

• The goal is to understand the concept and
  practice of zero defects and how to develop
  Poka-yoke to eliminate these defects
• If 99.9 were acceptable, you would not mind if..
• Connection post offices would lose 10,271 pieces
  of mail per day
• OHare International Airport would have 1,264
  unsafe arrivals/departures per year
• Doctors at New York hospitals would drop 288
  newborn babies per year.

35
Tracking Defects

• Typically defect rates are tracked by
• Quantity
• Kind
• Percent
• With zero defects thinking they are tracked at
• The point at which defect is discovered
• The point at which defect occurred
• Attitude
• I do not ACCEPT defects
• I do not MAKE defects
• I do not PASS ON defects

36
Defects vs. Errors

• Poka-yoke methods or devices to improve product
  quality and ensure consistent process results
• These devices
• Prompt feedback and action as soon as the defect
  or error occurs
• Perform 100 auto-inspection
• The first step to Source Inspection is to
  distinguish between errors and defects
• Defects are the results
• Errors are the causes of the results

37
Cause-Errors

• The most common manufacturing errors
• Processing errors or omissions
• Assembly omissions or inclusion of the wrong part
• Processing wrong work piece
• Conventional Approach to Human Error
• Make excuses
• Place blame and/or expect defects
• Catch at final or sampling inspection
• Mistake-proofing Approach to Human Error
• Eliminate the possibility of the mistake
• Find the root cause and eliminate
• Ask why the process failed
• Apply mistake-proofing device for 100 inspection
• No defects generated

38
Machine/Equipment Error

• Recognize that machines make errors (drills
  break, tools become dull, fixtures wear, etc.)
• A methodology for developing Poka-yoke
• A reliable method
• A standard a work method or procedure
• A reliable method an effective standard
• A reliable method includes only those elements
  which, when followed, cause a predictable/desirabl
  e result, and when not followed, result in a
  predictable defect.

39
Summary

• Error Proofing
• Poka-yoke Japanese for error proofing
• To achieve zero defects
• Make it impossible to produce defects