Lean Manufacturing

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Lean Manufacturing

• Team Topic Presentation
• By
• Shane Uecker

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Definition of Lean Manufacturing

• Lean manufacturing is a comprehensive term
  referring to manufacturing methodologies based on
  maximizing value and minimizing waste in the
  manufacturing process.
• Value is defined as an item or feature for which
  a customer is willing to pay. All other aspects
  of the manufacturing process are deemed waste.
• Lean manufacturing is used as a tool to focus
  resources and energies on producing the
  value-added features while identifying and
  eliminating non value added activities.

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Goals of Lean Manufacturing

• Get ever closer to zero process times
• Setups
• Sales quotes
• Delivery date promising
• Sales order delivery
• Production process time
• Purchase order lead times
• Outsourcing
• Engineering changes
• Time to market
• Returns
• Repairs
• Data collection
• Data analysis
• Period end close

• Get ever closer to zero
• Zero waste
• Zero defects
• Zero scrap
• Zero rework
• Zero receiving rejections
• Zero downtime
• Zero inventory
• Zero handling
• Zero paperwork
• Zero mistakes

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Origin Of Lean Manufacturing

• The Industrial Revolution marked the emergence of
  lean thinking in operational practices, such as
  standardization of methods and materials,
  interchangeability of parts, specialization of
  labor, large batch operations, and dedicated
  machinery. These operational practices were used
  only in manufacturing processes for high-volume
  products.
• Henry Ford provided the first industrial firm
  that had traces of lean manufacturing (main
  assembly line and key subassemblies).
• Originally a Japanese methodology known as the
  Toyota Production System designed by Sakichi
  Toyoda, lean manufacturing centers around placing
  small stockpiles of inventory in strategic
  locations around the assembly line, instead of in
  centralized warehouses. These small stockpiles
  are known as kanban, and the use of the kanban
  significantly lowers waste and enhances
  productivity on the factory floor.

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Mass Production Vs. Lean Production
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Waste associated with Mass Production

• Over-Production Waste
• Fixing Defects Waste
• Unnecessary Motion Waste
• Inventory Waste
• Over-Processing Waste
• Transportation Waste
• Waiting Waste

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Steps to reduce or eliminate wasteLean
Manufacturing

• Organize the workplace (5S)
• Arrange everything to flow
• Make small batches (ideal lot size is 1)
• Introduce pull systems (self-correcting control)
• Never stop continuous improvement

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5S to organize the workplace

• Sort - Unneeded items are identified and removed.
  Only needed parts, tools, instructions remain.
• Simplify - Once a place is established,
  everything is then put in its place.
• Standardize - Do an initial spring cleaning.
  Maybe some painting, and Brillo pad scouring.
• Sweep Shine - Everything has a place
  everything is in its place. Visual Scoreboard and
  other visual controls.
• Sustain - Routine cleaning becomes a way of life.
  Preventative maintenance is routinely performed.

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Flow

• Unnecessary motion can be best described as any
  motion that does not add value to the product,
  thus something that your customers and you are
  not willing to pay for.  
• Such examples can be found both on the shop
  floor, as well as in the office.  On the shop
  floor, unnecessary motion can be something as
  simple as additional parts handling, struggling
  with product assemblies (poor product designs),
  rework, duplicated efforts or even walking
  across the building to make a copy on a copy
  machine.  
• In the office, unnecessary motion can be walking
  across the office to printers or copy machines,
  over-handling of information, looking for office
  supplies, etc.

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Make small batches

• When a company has a problem with extremely long
  lead times and high inventory costs, they are
  usually producing too many parts that are not
  required at that particular moment in time.  This
  often happens when batch sizes are too big and
  when push systems are in place.  
• Problems with High Inventory
• Insurance
• Space
• Loss due to damage and obsolescence
• Cost to count it (over and over)
• Cost to move it (over and over)
• Inventory is not an asset
• Inventory is a liability
• If overproduction waste is to be eliminated,
  production quantities should be based strictly on
  customer demand.

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Why are small batches better?

• Shorter lead times
• Less inventory and obsolescence
• More flexibility to meet demand variability
• Higher quality with lower scrap rework
• Less floor space in production and storage

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Benefits of pull

• Little or no waste doing things that no one will
  ever pay for
• Little or no finished goods inventory
• Little or no reliance on sales forecast
• Radically short lead times for radically
  customized deliverables

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Relationship Between Lean and Six SigmaImportant
point for companies is to first determine goal,
and then adopt and apply the appropriate strategy
in order to achieve the goal.
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Why is Lean Manufacturing Important?

• Many companies have turned to lean techniques as
  a way to achieve lower costs and more factory
  throughput. The most progressive companies,
  seeing the astonishing success that lean provides
  on the shop floor, have begun to apply lean
  methods to the entire supply chain.
• Companies that understand the evolving enterprise
  know that every step in the supply chain, even
  those that occur at the customer or supplier, has
  to be examined using lean techniques in order to
  achieve the maximum benefits. These companies
  find that they not only survive in difficult
  times, but they actually thrive and gain market
  share as their competition falls behind.

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How does Lean affect Project Management?

• As interest in lean production grows, this
  vocabulary engineering is also accompanied by
  scope creep what started out with a focus on the
  factory expands to cover product design, office
  work, distribution, and services. And new terms
  follow
• Lean Management
• Lean Enterprise
• Lean Thinking
• Lean Performance Project Management
• Lean Product Development

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References

• http//www.mmt-inst.com/Meaning_of_lean.htm
• http//rockfordconsulting.com/lean.htm
• http//www.vorne.com/solutions/learning_center/lea
  n_manufacturing.htm
• http//www.advancedmanufacturing.com/Sept04/colDes
  ignInsight.htm
• Brian J. Carroll, Lean Performance ERP Project
  Management. The St. Lucie Press, 2002
• Clifford Fiore, Accelerated Product Development.
  Productivity Press, 2005