Principles of Lean Bill Kerber CFPIM Strategic Information Group

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Principles of LeanBill Kerber CFPIMStrategic
Information Group
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Thanks to these guys for letting me use their
stuff

• Jim Womack www.Lean.org Value Stream Mapping
• Kevin Duggan www.Dugganinc.com, Mixed Model Value
  Streams
• Mike Rother and John Shook, Learning to See, LEI
• Mike Rother and Rick Harris, Creating Continuous
  Flow, LEI

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Lean

• What does it mean to you?

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What is the Value Stream?

• All the steps needed to proceed from
• Concept to launch (design)
• Order to delivery (build)
• Delivery to recycle (sustain)

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As We Search for the Perfect
Process

• In which every step in each process is
• Capable right every time (6 Sigma)
• Available always able to run (TPM)
• Adequate with capacity to avoid
  bottlenecks (right-sized tools lean
  manufacturing system design)

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Objective for Every Value Stream

• Correct specification of value
• Elimination of wasteful steps
• Flow where you can
• Pull where you cant
• Management toward perfection

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The Goal of Lean Manufacturing

• A continuous flow of material from raw material
  to finished goods
• Produce only what is needed
• Build to order (Production L.T. shorter than
  Demand L.T.)

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Building Blocks
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Waste

• An activity that consumes resources but creates
  no value for the customer

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Kaizen

• Continuously improving in incremental steps
• Usually a focused effort to remove waste from an
  activity, for example a machine set up

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5 Principles of Lean

• Value Stream Identify the value stream for each
  product or service, comprised of every action
  responsible for its design, order and provision.
  Eliminate actions that create no value.

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5 Principles of Lean

• Value Specify value from the perspective of the
  customer, not the firms, departments and
  facilities that comprise the supply chain.

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5 Principles of Lean, cont.

• Flow Align all value-creating steps so that the
  design, order and product itself move steadily
  and rapidly toward the customer with no detours,
  waiting or scrap.

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5 Principles of Lean, cont.

• Pull Make products flow only at the pull of the
  customer, so the exact good is provided at
  exactly the right time.

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5 Principles of Lean, cont.

• Perfection Re-evaluate every value stream to
  make value flow faster at the precise pull of the
  customer
• Old-school, we used to call this continuous
  improvement

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The 5 Ss
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Logical Steps

• Identify Product Families
• Map Value Stream
• Create flow
• Level
• Pull
• Perfect (Continuous Improvement)

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Product Families
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Product Families

• This process is reiterative, based on the process
  flow design and the volumes of the products.
• Products may be added or subtracted from the
  family as needed.

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Value Stream Mapping

• We will cover this in depth in the next section

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Flow

• Cell design
• Work Balancing
• Kaizen
• Product mix

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Level

• Plan for the demand
• Chase, Level or Hybrid?
• Always try for Chase
• We will call beginning of this process the Sales
  and Operations Plan (to be old school about it)

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Takt Time

• Pace of customer demand
• Takt time synchronizes pace of assembly to match
  pace of sales
• The system should be designed to produce slightly
  faster than takt time

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Takt Time

• In chase, it is the sales rate to the customer
• In Level, it is the replenishment rate to
  inventory

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EPEI

• Every Part Every Interval
• How long does it take to cycle through all of the
  products in the family
• Smaller is better

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Small intervals mean small lot sizes

• Shorter lead times
• Less inventory
• Less space
• Better quality

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Pull

• Push versus pull
• What are the advantages of pull?
• Where flow stops, add a supermarket
• Say what?

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Kanban is not the objective

• It is second best to continuous flow (assembly
  line-like production) of one piece moving at a
  time
• Only mismatched processes should use Kanban

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Pull systems work when

• Demands come in a preset pattern
• Production system is reliable
• Otherwise, these are reorder points on dependent
  demand items
• Use MRP instead, even though this is a bad word
  in these circles