Lean Operations

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Lean Operations
Eliminate Waste Through Continuous Improvement
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A Little History!

• Benjamin Franklin
• Poor Richards Almanac He that idly loses 5s.
  shillings worth of time, loses 5s., and might
  as prudently throw 5s. into the river. He that
  loses 5s. not only loses that sum, but all the
  other advantages that might be made by turning it
  in dealing, which, by the time a young man
  becomes old, amounts to a comfortable bag of
  money."

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A Little History!

• Gilbreth
• Saw that masons bent over to pick up bricks from
  the ground. The bricklayer was therefore lowering
  and raising his entire upper body to get a 5
  pound (2.3 kg) brick but this inefficiency had
  been built into the job through long practice.
  Introduction of a non-stooping scaffold, which
  delivered the bricks at waist level, allowed
  masons to work about three times as quickly, and
  with less effort.

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A Little History!

• Ford Eliminate Waste
• "I believe that the average farmer puts to a
  really useful purpose only about 5 . of the
  energy he expends. Not only is everything done
  by hand, but seldom is a thought given to a
  logical arrangement. A farmer doing his chores
  will walk up and down a rickety ladder a dozen
  times. He will carry water for years instead of
  putting in a few lengths of pipe. His whole idea,
  when there is extra work to do, is to hire extra
  men. He thinks of putting money into improvements
  as an expense. It is waste motion waste
  effort that makes farm prices high and profits
  low."

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A Little History!

• Ford Design for manufacturing
• Start with an article that suits and then study
  to find some way of eliminating the entirely
  useless parts. This applies to everything a
  shoe, a dress, a house, a piece of machinery, a
  railroad, a steamship, an airplane. As we cut out
  useless parts and simplify necessary ones, we
  also cut down the cost of making. ...But also it
  is to be remembered that all the parts are
  designed so that they can be most easily made."

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A Little History!

• Ohno put ideas into practice systematically
• When bombarded with questions from our group on
  what inspired his thinking, Ohno just laughed and
  said he learned it all from Henry Ford's book."

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Waste Classification

• Waste from overproduction
• Inventory waste
• Waste from waiting time
• Transportation waste
• Processing waste
• Waste of motion
• Waste from product defects

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TPS Toyota Production System

• A system that continually searches for and
  eliminates waste throughout the value chain.
• Views every enterprise activity as an operation
  and applies its waste reduction concepts to each
  activity - from Customers to the Board of
  Directors to Support Staff to Production Plants
  to Suppliers.

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Reducing Waste Quality at Source
TPS Toyota Production System

• Failsafe design (Poka-Yoke)
• Stopping work immediately when problem occurs
  (Jidoka)
• Line-stopping empowerment (Andon)

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Poka-Yoke
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Poka-Yoke

• Poka-yoke page http//csob.berry.edu/faculty/jgro
  ut/pokayoke.shtml

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Jidoka
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Andon
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Reducing Waste Quality at Source
Defects found at
Current Process
Next Process
End of Line
Final Inspection
End User
Impact to the Company
Very
Minor
Rework
Significant
Warranty





Minor
Delay
Rescheduling
Rework
Costs

of work
Delay in
Administrative


Delivery
Costs
Additional
Reputation


Inspection
Loss of

Market Share
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Reducing Waste Increase Problem Visibility
Inventory
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Reducing Waste Push versus Pull System
TPS System uses Kanbans
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Reducing Waste From Functional Layout
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...to Cell Layout
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Reducing Waste Cut Batch Sizes
Example Process
A
B
C
D
Batch Mfg. (Lot Size 4)
Flow Mfg. (Lot Size 1)
1
1
4
A
B
C
D
A
B
C
D
4
4
4
Time
Time
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Synchronize HeijunkaMixed, Level/Balanced
Production

• Batch Production Schedule
  Mixed Production Schedule
• (AAAABBBB...)
  (ABAB...)
• Apr/12.........15...............
  ...30 Apr/12..........15.......
  ............30
• Products
• A
• B

FGI
FGI
time
time
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Continuous Improvement Kaizen

• Increase visibility of waste
• Standardize work
• Targeted improvements
• Active worker involvement
• Supplier involvement
• Time for experimentation
• Exploratory stress

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TPS Toyota Production System

• A system that continually searches for and
  eliminates waste throughout the value chain.
• Poka-Yoke
• Jidoka
• Andon
• Kanban
• Heijunka
• Kaizen

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Management By Stress Does S in TPS Stand for
Stress (1)?

• Empower employees ? Employees responsible for
  errors.
• Drive out waste ? No slack in the human system.
• Kaizen ? Improvements discovered by workers are
  co-opted by management.
• Workers design their jobs ? Workers do
  industrial engineering jobs without the pay.

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Management By Stress Does S in TPS Stand for
Stress (2)?

• Reduce indirect labor ? Make workers do
  managements job.
• Reduced buffers ? More stress and less room for
  error or fatigue.
• Respect for workers ? As long as workers define
  their personal goals as satisfying managements
  agenda
• Productivity enhancements are dramatic ?
  Workers work real hard, with little spare time.

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If Youre Curious to know more..

• Lean Blog http//kanban.blogspot.com/
• Books
• Ohno, Taiichi (1988), Toyota Production System
  Beyond Large-Scale Production, Productivity
  Press.
• Womack, James P., Jones, Daniel T., and Roos,
  Daniel (1991), The Machine That Changed the
  World The Story of Lean Production, Harper
  Perennial
• Womack, James P. and Jones, Daniel T. (1998),
  Lean Thinking Free Press.
• Levinson, William A. (2002), Henry Ford's Lean
  Vision Enduring Principles from the First Ford
  Motor Plant, Productivity Press
• Ford, Henry and Crowther, Samuel (2003), My Life
  and Work, Kessinger Press.