Lean Manufacturing

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Lean Manufacturing
Travis Porter Brian Milliken Dan Cook
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LEANS ORIGIN

• PIONEERED BY HENRY FORD FLOW PRODUCTION IN 1914
• TOYOTA BEGAN TESTING LEAN CONCEPTS IN THE 1940s

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• ORDER?PRODUCTION?DELIVERY
• PRODUCT AND PROCESS DEVELOPMENT
• CUSTOMER MANAGEMENT
• SUPPLIER MANAGEMENT
• ALL SYSTEMS MUST MESH TOGETHER TO BE EFFECTIVE?30
  YEARS FOR TOYOTA TO ACCOMPLISH
• LEAN MANUFACTURING DIDNT CATCH ON UNTIL THE
  1990s

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Dr. Demings 14 Points for Total Quality
Management

1. Create consistency of purpose for continual
   improvement
2. Adopt the new management philosophy focused on
   quality.
3. Eliminate the need for mass inspection by
   building quality into the product
4. End the practice of awarding business on the
   basis of price tag alone.

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Dr. Demings 14 Points for Total Quality
Management

1. Constantly improve every process for planning,
   production, and service
2. Institute modern training methods for all to make
   better use of every employee
3. Institute leadership aimed at helping people
   perform more quality work
4. Drive out fear throughout the organization by
   encouraging two way communication

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Dr. Demings 14 Points for Total Quality
Management

1. Break down inter-department barriers such that
   departments can work in teams to tackle problems
2. Eliminate the use of propoganda that demands high
   productivity and zero defects without providing
   methods.
3. Eliminate work standards based on numerical
   quotas.

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Dr. Demings 14 Points for Total Quality
Management

• Remove barriers that hinder a workers right to
  pride of workmanship, including the annual
  performance appraisal.
• Encourage self-improvement for everyone through
  continued education
• Define top managements permanent commitment to
  the preceding 13 points.

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DESCRIPTION

• CONCEPTS
• PUT IDEAS/INVENTION TO USE AT THE MOMENT OF
  INNOVATION
• VISUAL MANAGEMENT TOOLS (5S, CELLULAR
  ARRANGEMENT, TARGET COSTINGECT)

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• U-SHAPED PRODUCTION CELLS
• SMALL WORKBENCH LESS CLUTTER
• LABELS FOR FIXTURES, TOOLING RACKS, AND TOOLS
• FOLDER CONTAINING SETUP PHOTOS AND CYCLE TIMES
  NEAR THE MACHINE
• ON-DECK LIST-JOB FLOW

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• HORIZONTAL MANAGEMENT-MORE PEOPLE SEE THE WASTE
• EVERYBODY KNOWS WHO IS IN CHARGE OF WHAT
• KAIZEN AND FINDING HERBIE PRODUCTION BOTTLENECK

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DEFINE WHAT YOU-THE ORGANIZATION- AND THE
CUSTOMER WANT

• An employee should be able to walk through a
  work area one time and come away with 90 of the
  information about that area. Mr. Malone, RD
  Manufacturing Industries

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LEAN PRODUCTION vs. MASS PRODUCTION

• MASS-
• EXPENSIVE MACHINES DO MULTIPLE TASKS
• PEOPLE REQUIRED TO KEEP MACHINES BUSY
• BEST FOR SPECIALIZED PRODUCTS IN HIGH QUANTITIES
• LEAN-
• REMAINS FLEXIBLE
• EASIER TO ANALYZE COST
• FEW DEFECT, IMPROVED TIME, AND HIGHLY DETAILED
  PARTS

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Lean Implementation Case Study

• Boeing Machine Fabrication Business Unit (MBU)
• 1000 Different products produced
• 22,000 parts per month
• 650,000 square foot facility
• 700 employees

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Prior to Lean

• Shop was configured in a job shop layout
• Similar machines grouped together
• Work in progress (WIP) traveled great distances
  through various value adding operations.
• Success measured in terms of machine efficiency,
  and machine tool setup savings associated with
  batching parts

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The Lean Team

• Team of management, tooling, quality control, and
  safety personnel
• Told to identify waste in current process.
• Initiated Lean Manufacturing Assessment
• Analyzed total product cost, where the MBU spent
  resources and what products the MBU produced

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Four Key Areas

• The Lean Team focused on four key areas to make
  the transition to lean manufacturing
• Product focused cells
• Simplified scheduling system
• Improved shop floor control
• Organizational support structure

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Product Focused Cells

• Machines were moved from the typical job shop
  layout to a product based layout
• Reduced travel that parts would have to make
  between different processes.

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Simplified Scheduling System

• Processes that were considered bottle necks to
  the overall production process were consistently
  run to produce maximum efficiency.
• First in first out scheduling ensured products
  would get done in a logical order (first in,
  first to get done) and no products would be lost
  in inventory

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Improved Shop Floor Control

• Visual controls to replace existing information
  management system.
• Simplicity achieved through implementing product
  focused cells so parts dont move far from their
  respective cells until they are completed and
  shipped out.

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Organizational Support Structure

• Calls upon manufacturing engineers to focus more
  on production cells and providing support at the
  production level.
• Improved customer focus and production
  efficiency.
• Employee education programs run regularly (5-10
  times per month).

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General Results

• Reduced total overall cost by 30.
• Productivity increased by 39.
• Defects reduced from 1200/10,000 in 1996 to fewer
  than 300/10,000 today.
• Money lost due to defects reduced by 51.
• Product travel reduced by 1-3 miles per part.
• Shop size reduced from 650,000 sq-ft to 450,000
  sq-ft