Lean Manufacturing Overview

1
Lean Manufacturing Overview
2
Objectives

• Review brief history of manufacturing systems
• Distinguish between mass and lean manufacturing
• Introduce key Concepts of Lean Manufacturing
• Review the kinds of changes needed to be
  considered a lean manufacturer.

3
Craft Manufacturing

• Late 1800s
• Car built on blocks in the barn as workers walked
  around the car.
• Built by craftsmen with pride
• Components hand-crafted, hand-fitted
• Excellent quality
• Very expensive
• Few produced

4
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

5
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.

6
Benefits 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

Source The Machine that Changed the World
Womack, Jones, Roos 1990
7
Toyota Production System
Best Quality - Lowest Cost - Shortest Lead
TimeThrough shortening the Production Flow by
Eliminating Waste
Just in TimeThe right partat the right timein
the right amount
JidokaBuilt 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
8
New Paradigm Non-Blaming Culture

• Management creates a culture where
• Problems are recognized as opportunities
• Its okay to make legitimate mistakes
• Problems are exposed because of increased trust
• People are not problems - they are problem
  solvers
• Emphasis is placed on finding solutions instead
  of who did it

SOLUTIONS
PROBLEMS
9
Lean Manufacturing

• is a manufacturing philosophy which shortens the
  time line between the customer order and the
  product shipment by eliminating waste.

Business as Usual
Customer Order
Waste
Time
Lean Manufacturing
Customer Order
Waste
Time (Shorter)
10
Waste

• Anything that adds Cost
• to the product
• without adding Value

11
Storing
Counting
Sorting
Moving
Acknowledgments
Invoices

• What value is
• Added by

Expediting
Rework
Inspecting
Loading / Unloading
Scrap
Returns to Suppliers
Receiving Report
Repackaging
12
7 Forms of Waste
CORRECTION
MOTION
Repair or Rework
WAITING
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
INVENTORY
MOVEMENT
Maintaining excess inventory of raw matls, parts
in process, or finished goods.
Wasted effort to transport materials, parts, or
finished goods into or out of storage, or
between processes.
13
Who wants what...

Cash !!
Value !!
Customer Low Cost High Quality Availability
Your Company Profit Repeat Business Growth
14
Price Increase
Price to Sell
Bigger Profit
Some Profit
Cost to Produce
Cost Profit Price
15
Cost Reduction
Price to Sell
Some Profit
Bigger Profit
Cost to Produce
Price - Cost Profit
16
Just in Time Manufacturing

• Produce according to customer demands
• What is needed
• When it is needed
• In the quantity it is needed
• Utilize - Continuous flow processing
• - Pull system

17
JIT Element - Continuous Flow Processing
Batch Processing
10 minutes
10 minutes
10 minutes
Total Batch A processing time 30 minutes
Continuous Flow Processing
Total Batch A processing time 12 minutesOnly 3
minutes for 1st part

• Product requires three processes that take one
  minute each
• Processing first batch in batches of 10 requires
  30 minutes
• Processing first batch one-at-a-time requires
  only 12 minutes

18
JIT Element - Pull System

• Following processes withdraw what they need when
  they need it.
• Preceding processes replenish what is taken away.

Production Kanban
Withdrawal Kanban
Upstream Processes
Downstream Processes
Pull
New Product
Needed Product
19
Production Scheduling Assumptions

• Production Schedules will always change
• Production will never go according to schedule.

20
Takt Time
Time (Available seconds per working day)

Takt Time
Volume (Daily production requirement)
Sets pace of production to match pace of sales.
Actual time required for a worker to complete
one cycle of his process

Cycle Time
21
Very Frequent Change-overs
8 hours
22
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

23
Quality Processes Yield Quality Results
Inconsistent Process
Inconsistent Results
Traditional People doing whatever they can to
get results
Consistent Process
Desired Results
Lean People using standard process to get
results
24
Henry Ford - Standards

• 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.
• Todays standardization, instead of being a
  barricade against improvement, is the necessary
  foundation on which tomorrows 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.
• Henry Ford, 1926
• Today Tomorrow

25
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

26
Continuous Improvement
Takt Time (1 min.)
1 min.
Cycle Time
Operators
A
D
E
C
B
Takt Time (1 min.)
1 min.
Operators
A
D
E
C
B
27
Other Tools

• Visual Factory
• Error Proofing
• Quick Change-over
• Total Productive Maintenance

28
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)

29
Cascade
30
Error Proofing

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

31
Quick Change Over

• QCO is used to
• Reduce time needed to change over from one set-up
  to another.
• Improve first time capability.
• Improve repeatability of change over operations

32
Total Productive Maintenance

• TPM is a structured approach to maintaining
  equipment and insuring stable manufacturing
  processes.
• Everybody gets involved.

33
Impact on You!!

• First Time Quality
• Standardized Work
• Error Proofing
• Root Cause Analysis
• Problem Solving
• Change Request Forms
• Predictable Processes
• Machine Reliability
• Total Productive Maintenance
• Improved up-time
• Reduced scrap repairs

• People
• Skilled, multi-function workers
• Training
• Employee development
• Small Group Activity
• Quality
• Safety
• Productivity
• Cost
• Structured feedback meetings
• Empowerment
• Involvement
• Accountability
• Responsibility
• Authority
• Safety Ergonomics

• Just in Time
• Kanban production
• Min / Max levels
• Smaller Lots
• Quick Change Over
• Less inventory
• Less reliance on schedules

34
What to Expect in the Future

• Training
• Communication
• Elimination of Waste (NVA)
• Continuous Improvement
• Visual Factory
• More efficient layouts
• Roles Responsibilities
• More involvement / ownership
• Long term GROWTH!!

35
Evidence of Progress toward Lean

• Smaller lot sizes
• Increased capacity / throughput
• Higher inventory turns
• More available floor space
• Improved workplace organization
• Improved quality reduced scrap / re-work
• Reduced inventories raw, WIP, FG
• Reduced lead times
• Greater gross margin
• Improved participation morale