Lean Thinking

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Lean Thinking
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Lean Thinking

• Waste (Muda) any human activity which absorbs
  resources but creates no value.
• Waste is everywhere in organisations
• There is a powerful antidote to waste
• Lean Thinking
• Lean Thinking provides a way to do more and more
  with less and less while coming closer to
  providing customers with exactly what they want.

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Lean Thinking Specify Value

• Value can only be defined by the ultimate
  customer
• Specifying value accurately is the critical first
  step in Lean thinking

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What is Lean?
Lean is a manufacturing philosophy that
recognizes WASTE as the primary driver of cycle
time, and employs techniques to continually drive
out the waste in processes.
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What is Lean ?
Lean is not about...
Lean is about...

• Balancing the production rate to the customer
  demand.
• Using the correct number of people for the
  required production rate.
• Running equipment only at the rate of demand.
• Keeping only enough stock to maintain a smooth
  flow.
• Building quality control into the production
  process.

• Keeping finished products stock and sending them
  to the customer just when required........
• Keeping the people working by making... well
  anything.........
• Keeping the machines running to keep their
  utilization high......
• Keeping stock of components so that if something
  goes wrong it doesn't matter...weve got loads
  of.........

Lean means getting the dynamics of the factory
right to enable Continuous Flow Manufacturing
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What is Lean ?

• Integrated single piece production (i.e. a
  continuous flow of work) with minimal inventories
  at each stage of the production process.
• Production capability that is synchronized to
  customer demand.
• Defect prevention rather than inspection and
  rework by building quality in the process and
  implementing real time quality feedback
  procedures.
• Manufacturing execution that is driven by
  customer demand or pull, not on forecasts or
  push.
• Team based work organizations with multi-skilled
  operators empowered to make decisions and improve
  operations with fewer indirect staff.
• Active involvement by workers in trouble shooting
  and problem solving to improve quality and
  eliminate waste.
• Close integration of the whole value stream from
  raw material to finished product through
  partnership oriented relations with suppliers and
  distributors.

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History - Mass Production to Lean
American Mass Market
MASS PRODUCTION
Fantastic Success!
Goal Economies of Scale
Precision Machine Tools

• Limited Product Variety
• Flow Production

Division of Labor
Poor Vehicles Little Success
TOYOTA
Weaving Looms
Toyota Motor Corporation
1900
1915
1935
WWII
Henry Ford broke craft tradition by devising a
production method to fill the needs of early
1900s society.
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History - Mass Production to Lean
Increasingly Complex Vehicles and Diverse Market
U.S. Consumers look for smaller cars. Big 3
Market share decline begins.
Large-Lot Production
Postwar Boom (Mass ideas cemented in)
Emphasis on Finance and Accounting
Automation

• Small Market
• Few Resources
• Need Cash
• Lousy Quality

Goals Quality, Cost, Lead Time, Flexibility
1st Oil Shock
TOYOTA
Japanese industry, recognizes TPS dissemination
begins.
Catch up with U.S.A!
TOYOTA PRODUCTION SYSTEM
Fantastic Success!
U.S. Quality Productivity Seminars
Supermarket System
1945
1973
1980
Mass Production spreads and tries to adapt to
changes. Lean Manufacturing emerges as the
alternative.
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What is Possible?
What has been achieved in manufacturing by
adopting Lean Manufacturing?

• Half the hours of human effort in the factory
• Half the defects in the finished product
• One-third the hours of engineering effort
• Half the factory space for the same output

Source The Machine that Changed the World, by
Womack, Jones, and Roos, 1990.
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WasteIdentification and Elimination
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What is Waste?
VALUE An activity that transforms or shapes raw
materials or information to meet customer
needs WASTE Activities that consume time,
resources and space, but do not contribute to
satisfying customer needs
Customers will pay for value, increasingly they
will not pay for waste.
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Working Harder Vs Working Smarter
Waste




Value More Work More Waste
HARDER
Value
Waste
SMARTER
Work - Waste More Value
Value
Work Content
Waste
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The 8 Wastes
In general, we can classify Waste into 8
categories.

• Over-production
• Inventory
• Transportation
• Waiting
• Motion
• Over-processing
• Correction
• Not utilizing human resources

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Over - Production

• Producing over customer requirements, producing
  unnecessary materials and products
• Examples
• Producing parts on Monday that are not shipped to
  the customer until Friday
• Building Economic Batch Qunatity (EBQ) when parts
  not required by customer
• Producing parts because the machines and people
  are available

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Excess Inventory

• Holding or purchasing unnecessary raw supplies,
  work-in-process, finished goods
• Examples
• 10 Days of raw material supply
• Waiting for a trolley to be filled before
  shipping parts to next process
• A box containing 1000 parts waiting to be
  assembled after being machined

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Transportation

• Multiple handling, delay in material handling,
  unnecessary handling
• Examples
• Moving parts to and from storage areas
• Having a robot to transport parts between
  equipment because the equipment is not co-located
• Transporting parts from the machining area to the
  final assembly area

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Waiting

• Time delays, idle time, stop time (non value
  added time NVAT)
• Examples
• Waiting for raw material to be delivered
• Waiting for PM activity to be completed
• Waiting for a machine to complete its cycle

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Motion

• Unnecessary movement or actions of people or
  equipment that do not add value to the product
• Examples
• Turning around to pick up a part
• Stretching, bending, lifting
• Sorting through a box of parts to find the right
  one

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Over - Processing

• Unnecessary processing steps or work
  elements/procedures (non value added work)
• Examples
• Painting an automotive seat frame that is covered
  in cloth and the customer never sees
• Inspection, deburring, washing, etc.

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Correction

• Producing a part that is scrapped, corrected or
  requires rework
• Examples
• Scrapping parts that failed final inspection
• Repairing a surface that was scratched during
  assembly
• Sending parts back through the process due to
  test failure

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Not Utilizing Human Resources

• Not implementing ideas/suggestions
• Examples
• Making changes on the floor without getting the
  operators input
• Not involving or listening to operators
• Not using operators to the maximum of their
  ability
• Not implementing good ideas across shifts