Lean Manufacturing

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Lean Manufacturing
Manufacturing - Making It 8th November 2006
Peter Skamperle
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Lean Manufacturing
What is Lean?
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Lean Manufacturing

• Lean is ?
• Eliminating waste
• Reducing costs
• Shorter lead times
• Understanding what is important to your customer

Average people managing brilliant processes to
achieve exceptional results.
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Lean Manufacturing
Lean History William Edwards Deming Joseph
M. Juran Toyota Production System
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Lean Manufacturing
Lean Defined A systematic approach to
identifying and eliminating waste
(non-value-added activities) through continuous
improvement by flowing the product at the pull of
the customer in pursuit of perfection
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Lean Manufacturing
Organisation Chart
Management
Engineering
Team Leaders
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1
Customer (External)
Production/Service
Internal customer/supplier relationships
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Lean Manufacturing

• Lean Tools
• Muda (waste identification) - an activity that
  consumes resources and creates no value.
• 5S Visual Workplace - a technique used to
  establish and maintain a safe, orderly and clean
  workplace. The basis of a competitive environment
  providing visual indicators and information in
  the work area and achieved with 5S disciplines.
• Kaizen - continuous, incremental improvement of
  an activity to eliminate waste
• Value Chain/Stream - the specific activities
  required to design, order, and provide a specific
  product.

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Lean Manufacturing

• Lean Tools
• Just-in-time - a system for producing and
  delivering the right items at the right time in
  the right amount.
• Kanban - a system to regulate the pull of
  products by signalling upstream production and
  delivery.
• Poka-yoke - a mistake-proofing device or process
  to prevent a defect occurring during manufacture.
• Six Sigma provides an emphasis on statistical
  techniques to isolate and quantify variations in
  process or product performance.
• Standard Work is a system for standardising the
  work procedures developed through competitive
  manufacturing.

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Barriers to Lean
Lean Manufacturing

• Implementing Lean can be difficult because it is
  counterintuitive from a traditional paradigm
• Shutting down equipment when there is no true
  customer demand
• Using work instructions/standards as platforms to
  continuous improvements
• Gaining top Management Buy In and support

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Progress toward Lean
Lean Manufacturing

• Smaller lot sizes
• More available floor space
• Improved workplace organisation
• Improved quality reduced scrap / re-work
• Reduced inventories raw, WIP, FG
• Reduced lead times
• Improved participation morale

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7 Types of Waste (Muda)
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Lean Manufacturing

• 1. Waste (Muda) of Waiting
• Whenever any employee is waiting for something,
  it is costing the company money.
• Unbalanced work load
• Unplanned maintenance
• Quality problems leading to uncertain activities

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Lean Manufacturing

• 2. Waste (Muda) of Inventory
• Inventory waste comes in the form of raw
  material work in process, and stored finished
  goods.
• Inventory has a chance to become obsolete. It
  takes up space and potentially causes inefficient
  operation.

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Lean Manufacturing

• 3. Waste (Muda) of Transportation
• Unnecessary movement of product through the
  plant. Going to one area and being put onto a
  shelf and then being picked up and moved to
  another area for processing.
• Mapping the flow of product helps identify some
  of the transportation waste, as the movement of
  product often requires transportation.

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Lean Manufacturing

• 4. Waste (Muda) of Overproduction
• If there is a lack of faith in the process to
  provide 100 yield we tend to produce more than
  what is necessary to compensate.
• Producing to unreliable schedules and forecasts
  may lead to overproduction.
• This leads to waste of
• Material
• Labour
• Equipment
• due to non-required product

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Lean Manufacturing

• 5. Waste (Muda) of Over Processing
• Occurs in many industries when there is
  insufficient knowledge and understanding of a
  customers true needs.
• Over processing adds more value or costs to the
  product than the customer wants, needs, or is
  willing to pay for.
• This could be in the form of raw materials,
  processes or packaging.

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Lean Manufacturing

• 6. Waste (Muda) of Intelligence
• When we do not involve everyone in the business
  for improvement activities.
• Operators often have years of experience and know
  what could be done to improve the business, but
  often are never involved.
• Lean Manufacturing implementation is most
  successful when everyone is involved in the
  business improvement activities.

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Lean Manufacturing

• 7. Waste (Muda) of Motion
• This could be when someone has to go looking for
  tools, fixtures or information.
• Could be a result of poor production layout.
• Poor Housekeeping
• Inconsistent work methods

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5S Visual Control
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5 Elements of 5S
Lean Manufacturing

• Sort
• Shape
• Shine
• Standardise
• Sustain

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The Bad and the Ugly
Lean Manufacturing
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The Good After 5S
Lean Manufacturing
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Sort
Lean Manufacturing

• When in doubt, move it out
• Red Tag program

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Shape
Lean Manufacturing

• Make it obvious where things belong
• Lines
• Labels
• Color coding
• Signs

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Shine
Lean Manufacturing

• Clean everything, inside and out
• Prevent dirt, and contamination from reoccurring
• Results in
• Fewer breakdowns
• Greater safety
• Improved quality
• More satisfying work environment.

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Standardise
Lean Manufacturing

• Establish guidelines for the team 5S conditions
• Make the standards and 5S guidelines visual
• Maintain and monitor those conditions.

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Sustain
Lean Manufacturing

• Determine the methods your team will use to
  maintain adherence to the standards
• 5S communication board
• Visual standards and procedures
• Daily 5 minute 5S activities/meetings
• Weekly/Monthly 5S audits.

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Kaizen
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What is Kaizen?
Lean Manufacturing

• Kaizen (Kyzen)
• Kai means change
• zen means good (for the better)
• Gradual, orderly, and continuous improvement
• Ongoing improvement involving everyone.

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Kaizen or Innovation?
Lean Manufacturing
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How to Kaizen
Lean Manufacturing
The PDCA Cycle
Plan What to do? How to do it? Do Do what
was planned Check Did it happen according to
plan? Act How to improve next time?
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Value Chains/Streams
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Value Chain
Lean Manufacturing

• Details the importance of the link between
  information and material flow
• Shows all activities, both value added and
  non-value added that are currently performed to
  provide a product or service.
• Is a tool that can be used as a platform for
  future development
• It aids in the identification of waste

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Lean Manufacturing
Value Chain

• Value added Transforms raw materials,
  components and information into parts and
  products.
• Non-value added Consumes resources but does not
  contribute directly to the production of
  materials or product.
• Some non-valued added activity is necessary
  waste (NVA-R)
• Regulatory
• Legal.

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Lean Manufacturing

• Value Chain value adding and non-value adding

Scrap
Scrap
Purchasing
Rework?
Rework?
Shortages?
Sales Order
Material Issued
Packing Area
Planning
Production 1st Stage
Production 2nd Stage
Dispatch
Insp
Insp
Capacity? Delivery Date?
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Lean Manufacturing

• Value Chain value adding and non-value adding

NV
NV
NV
Scrap
Scrap
Purchasing
Rework?
Rework?
Shortages?
NV
NV
NV
Sales Order
Material Issued
Packing Area
Planning
Production 1st Stage
Production 2nd Stage
Dispatch
Insp
Insp
NV
NV
NV
Capacity? Delivery Date?
NV
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Lean Manufacturing

• Typical Value-added of Lead Time

Value-added activities 5
Non-value added activities 95
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Pull Manufacturing
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Inventory Hides Problems
Lean Manufacturing

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Lowering Inventory Reveals Problems
Lean Manufacturing

• Accommodate lower inventory levels by
• Reducing variability
• Eliminating waste
• Streamlining production and material flows
• Accurate information

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Objective of JIT
Lean Manufacturing

• Produce only the products the customer wants
• Produce products only at the rate that the
  customer wants them
• Produce with perfect quality
• Produce with minimum lead time
• Produce products with only those features the
  customer wants

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Kanban
Lean Manufacturing

• Japanese word for card
• Authorises production from downstream operations
  based on physical consumption
• May be a card, flag, verbal signal, etc.
• Kanban quantities are a function of lead-time and
  consumption rate of the item being replenished

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Lean Manufacturing
Production Schedule
Leveled assembly instructions
A
C
A
Fab
Vendor
B
A
Fab
Vendor
Final Assy
Customers
Fab
Vendor
Vendor
Fab
Vendor
....
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Mistake Proofing(Poka Yoke and Error Proofing)
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What is Mistake Proofing?
Lean Manufacturing

• The use of process or design features to prevent
  errors or their negative impact.
• Also known as Poka yoke, Japanese slang for
  avoiding inadvertent errors which was
  formalised by Shigeo Shingo.

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Everyday Example
Lean Manufacturing
Fueling area of car has three error-proofing
devices 1. filler tube keeps leaded fuel
nozzle from being inserted 2. tether
does not allow loss of petrol cap 3.
petrol cap has ratchet to signal proper
tightness and prevent overtightening.
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Lean Manufacturing
3 Rules of POKA YOKE

• Dont wait for the perfect POKA YOKE
• ..Do it now
• If your POKA YOKE idea has a better
• than 50 chance to succeedDo it
• Do it now . Improve later

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Six Sigma
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What is Six Sigma?
Lean Manufacturing

• A Vision and Philosophical commitment to our
  consumers to offer the highest quality, lowest
  cost products
• A Metric that demonstrates quality levels at
  99.9997 performance for products and processs
• A practical application of statistical Tools and
  Methods to help us measure, analyse, improve, and
  control our process

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Phases of Six Sigma
Lean Manufacturing

• Define
• Measure
• Analyse / Evaluate
• Improve
• Control
• Performed using Green Belts, Black Belts
  Master Black Belts

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Measuring Performance
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Graphs, Charts Diagrams
Lean Manufacturing

• Graphs, charts diagrams can be used to
  visually represent data to communicate
  information.     
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• Sales figures
• Lost time incidents
• Manufacturing errors
• On time deliveries
• Product quality variance

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Lean Manufacturing

• Every process varies. There is an inherent
  variation, but it varies between predictable
  limits.
• Common Causes
• Random variation (usual)
• No pattern
• Inherent in process
• Special Causes
• Non-random variation (unusual)
• May exhibit a pattern
• Assignable, explainable, controllable

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Lean Manufacturing

• Measurement Tools
• Run Charts
• Control Charts
• Pareto Charts
• Histograms
• X bar (average) Charts
• R (range) Charts

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Human Factors
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What Makes an Effective Program?
Lean Manufacturing

• Management commitment and employee involvement
  are essential.
• Management can provide
• Resources ( Time, people,
  financial )
• Managing motivating forces
  behind effort
• Employees can provide
• Intimate knowledge of the jobs
  performed
• Identification of existing
  potential hazards
• Together they provide the solutions to the
  issues.

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Your Organisation Can Benefit from Teams
Lean Manufacturing

• Team output usually exceeds individual output.
• Complex problems can be solved more effectively.
• Creative ideas usually are stimulated in the
  presence of other individuals who have the same
  focus, passion, and excitement.
• Support arises among team members.

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The Importance of Creating High Performance Teams
Lean Manufacturing

• Characteristics of High Performing Teams
• Small Size
• Complimentary Skills
• Common Purpose
• Specific Goals
• Mutual Accountability

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Lean Manufacturing

• Implementing Change
• Lean is never-ending improvements based on
  customer focus and waste elimination.  There are
  many principles, ideas, and tools that are used
  to make up this system.  A good way to understand
  Lean is to remember these principles
• Empower people
• Eliminate waste
• Make it as simple as possible
• Do one thing at a time
• Keep it flowing
• Make it visual
• Build in quality
• The important thing is to get everyone thinking
  everyday about ways to improve so that lean
  thinking becomes part of the fabric of your
  organisation.

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The End(or really only the beginning)
Thank You