Principles of Lean Manufacturing

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LEAN ENTERPRISE Participant Workbook

Principles of Lean Manufacturing

LEAN ENTERPRISE

Principles of Lean Manufacturing

Course Objectives By the end of this class you will be able to:
Define Lean Identify the eight wastes Differentiate between Value-Added and Non-Value-Added activities Apply various Lean implementation tools in a simulation setting Describe how Lean Principles can impact the success of your organization

Principles of Lean Manufacturing

Orientation

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Product Catalog

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The Bottom Line

Sells for $4

Materials cost $0.50

Sells for $4

Materials cost $0.50

Labor cost: Facilities cost:

$2.00/person/shift $10.00/table/shift

Production Process Orientation


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Sales Representative Production Scheduler Kitter(s) Material Handler 1st OP Blue 1st OP White 2nd OP Blue 2nd OP White Inspector Warehouse/Ship Clerk Trucker Production Supervisor Industrial Engineer Processes Customer Order Generates Factory Order from forecast Organizes raw materials for Factory Orders Moves product between ALL workstations Initial folding: Blue Initial folding: White Final folding : Blue Final folding: White Assures Quality Matches boats to Customer Orders Ships products to the customer Supervises production Monitors production process

Production Facility Orientation


Sales Office Production Control Kitting Area Shipping Dock Finished Goods Whse. WIP Storage Inspection Area 2nd OP White 2nd OP Blue

Rework Area 1st OP Blue 1st Op White

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Product Components Orientation


Blue Paper

White Paper

Product Routing

1 piece

1 piece

1 piece

1 piece

Production Batching

4 per batch

4 per batch

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Production Scheduling Process


Customer orders (demand) Customer order forms Shipments to customers

Production forecast

Factory order forms

Finished Goods Warehouse

Customer Service Targets Promised shipments to customers Promised shipments to customers


4 minutes after order 4 minutes after order

All orders are filled first-in, first-out (FIFO)

Company Policies

All shifts are 10 minutes Keep busy at all times Yell if you need parts Handle all parts first-in, first-out (FIFO) Only the Material Handler can move parts Stay at your workstation The boss is always right!

Principles of Lean Manufacturing

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Go to Work! Round 1
Principles of Lean Manufacturing

Round One: Debrief

Discuss results How did it feel? Relationship to real world

Principles of Lean Manufacturing

Principles of Lean

Introduction to Lean Manufacturing

Principles of Lean Manufacturing

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Defining Lean LEAN is: A systematic way to deliver the


highest quality, lowest cost products with the shortest lead-times through the relentless elimination of waste.
GOOD

PICK ANY TWO


FAST CHEAP

Principles of Lean Manufacturing

Definition of Value-Added

Value Added
Any activity that changes the market form or function of the product or service Things the customer is happy to pay for.

Non-Value Added
Any activity that does not change market form or function (although it may be necessary) These activities should be eliminated, simplified, reduced, or integrated when possible.
Principles of Lean Manufacturing

Lean = Eliminating Waste


Defects Overproduction Waiting Non-Value Added Processing Transportation Inventory Motion Employees: KSAs (Knowledge, Skills and Abilities) Non-Value-Added Value-Added 5%

Typically 95% of all lead time is non-value-added.


Principles of Lean Manufacturing

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Defects in the Factory


Inspection and repair of product Causes of defects
- Weak process control - Poor quality system - Deficient planned maintenance - Inadequate education/training/work instructions - Poor product design - Customer needs not understood

Principles of Lean Manufacturing

Overproduction in the Factory


Making more product than is required by the next process Making product earlier than is required by the next process Making product faster than is required by the next process Causes of overproduction - Just-in-case logic - Long process setup (encourages large lot runs) - Unbalanced workload (WIP) - Poor communication - Misuse of automation

Principles of Lean Manufacturing

Waiting in the Factory


Idle time created when waiting for? Causes of waiting waste
- Unbalanced workload - Unplanned maintenance - Long process setup times - Poor suppliers - Upstream quality problems

Principles of Lean Manufacturing

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Non Value-Added Processing in the Factory


Effort that adds no value to the product or service from the Causes of processing waste
- Product changes without process changes - Just-in-case logic - True customer requirements not clearly defined - Lack of communication customers viewpoint

Principles of Lean Manufacturing

Transportation in the Factory


Transporting parts and materials around the plant Causes of transportation waste
- Poor plant layout - Poor understanding of production process flow - Large batch size, long lead times, large storage areas

Principles of Lean Manufacturing

Inventory in the Factory


Any supply in excess of a one-piece flow through your
manufacturing process

Causes of excess inventory


- Misconception that this protects the company from inefficiencies and unexpected problems - Product complexity - Poor market forecast - Unbalanced workload - Misunderstood communications - Reward systems - Unreliable shipment by suppliers

Principles of Lean Manufacturing

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Motion in the Factory


Any movement of people or machines that does not add
value to the product or service

Causes of motion waste


- Poor people/machine interface - Inconsistent work methods - Unfavorable workstation or cell layout - Poor workplace organization and housekeeping

Principles of Lean Manufacturing

Employee KSAs in the Factory


(Knowledge, Skills and Abilities)

The waste of not using peoples mental, creative, and


physical abilities

Causes of people waste


- Old guard thinking, politics, the business culture - Poor hiring practices - Low or no investment in training - Low pay, high turn-over strategy

Principles of Lean Manufacturing

Brainstorm Wastes What wastes were apparent?

Principles of Lean Manufacturing

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Lean Building Blocks

Continuous Improvement
Pull / Kanban Quality at Source Standardized Work 5S System POUS Cellular Flow TPM

Quick Set-up Teams Value Stream Mapping

Lot Size Reduction Visual

Plant Layout

Principles of Lean Manufacturing

Mass Production
Material 1st OP White 2nd OP Blue 2nd OP White

Receiving Warehouse

Shipping Warehouse

1st OP Blue Repair Value-Added Time Time in Plant :

Storage

Kitting

Testing Inspection :

ORDER

Minutes Weeks

Ship CASH

Principles of Lean Manufacturing

Work Place Organization (5S)


Creates a safe, clean, neat arrangement of the workplace Provides a specific location for everything Eliminates anything not required

Principles of Lean Manufacturing

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Elements of a 5S Program

1. Sort
PLANT PLANT

2. Set in Order

5. Sustain 4. Standardize
Principles of Lean Manufacturing

3. Shine

Elements of a 5S Program

5S: Starts With Cluttered Areas

Principles of Lean Manufacturing

Elements of a 5S Program

Ends Up With Organized Areas

Principles of Lean Manufacturing

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Elements of a 5S Program

Example: Local Tool Board

Principles of Lean Manufacturing

Standardized Work
Defines operations safely carried out with all tasks organized in the best known sequence using the most effective combination of these resources: People Materials Methods Machines
Consistent Process Desired Results Inconsistent Process Inconsistent Results

Without Standardized Work there can be no sustained improvements


Principles of Lean Manufacturing

Traditional Plant Layout


Finishing Degrease Tool Crib Manual Drills Manual Mills N/C Mills Central Inspection Tool Crib Silver Solder Machine Assembly Stock/Staging

Sheet Metal

Deburr

Receiving

N/C Mills
N/C Lathes

N/C drill Manual Lathe Grind

Saws

Shears

Raw Stock

Plastics

Jigbore/ EDM

Principles of Lean Manufacturing

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Product Cell

Degreas Manual Drills Manual Mills N/C drill

Deburr

Machine Assembly

Stock/ Staging Silver Solder Raw Stock

Principles of Lean Manufacturing

Lean Workforce Practices Teams


Members rotate between highly specified jobs

Cross-trained and multi-skilled employees


Operators can work many operations within a cell and operations in different cells

A foundation of the continuous improvement philosophy


Principles of Lean Manufacturing

What needs to change?


5S System Standardized Work Visual Controls Plant Layout Teams POUS Batch Size Reduction

Principles of Lean Manufacturing

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Go to Work! Round 2
Principles of Lean Manufacturing

Round Two: Debrief

Discuss results How did it feel? Relationship to real world

Principles of Lean Manufacturing

Lean Building Blocks

Continuous Improvement
Pull/Kanban Quality at Source Standardized Work 5S System POUS Cellular/Flow TPM

Quick Changeover Teams Value Stream Mapping

Batch Reduction Visual

Plant Layout

Principles of Lean Manufacturing

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Impact of Batch Size Reduction


Batch & Queue Processing
Process

Process

Process

10 minutes 10 minutes

10 minutes

Lead Time 30+ minutes for total order 21+ minutes for first piece

Continuous Flow Processing


Process

Process

Process

12 min. for total order 3 min. for first part


Principles of Lean Manufacturing

Batch Size Reduction

The best batch size is one piece flow, or make one and move one!

Principles of Lean Manufacturing

Set-up Definition

SET-UP: The time required to remove the old tools, dies or fixtures; attach new tools, dies or fixtures and run the machine until a new part, without defects, is produced.
Changeover
Make Adjustments Make Adjustments

Completion of last good part

Locate tools, dies or fixtures

Remove old tools, dies or fixtures

Clean, sanitize, attach new tools, dies or fixtures

Run

Run

Part

First good part

1st piece inspection

Set-up time
Principles of Lean Manufacturing

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Transition Steps to Quick Changeover


Preliminary
Internal and External Setup not differentiated

Step 1
Separate Internal and External Setup

Step 2
Convert Internal Setup to External Setup

Step 3
Streamline all aspects of Setup operations

Int Ext Int Ext Ext Int Int Ext

Ext

Process Walk Analysis

Ext Preparation
Standardization Jigs

Ext

Management of parts and tools

Int Int Int Int

Principles of Lean Manufacturing

Quality at the Source


Source Inspection: Operators only pass work of acceptable quality to next work station. Visual Tools: Use samples, pictures, templates or established standards. Tools and Training: Give operators the tools and training to perform inspection at the source before they pass it along.
Principles of Lean Manufacturing

Total Productive Maintenance (TPM)

What causes equipment downtime/losses?


Set-up and adjustment Breakdowns Idling and minor stoppages Reduced speed Startup Defects and rework

How can downtime/losses be eliminated?


Identify root cause of problems Implement sustainable improvements.
Principles of Lean Manufacturing

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Cellular Manufacturing

Linking of manual and machine operations into the most efficient combination to maximize value-added content while minimizing waste. 1st OP Raw Material 2nd OP

Shipping 3rd OP Inspection


Principles of Lean Manufacturing

4th OP

Push vs. Pull Systems Push System

Based on forecasts or schedules


Pull System

Production and resource flow based on actual


consumption Small lots Low inventories Visual management Better communication
Principles of Lean Manufacturing

Pull System Flow Diagram


Continuous Improvement
Information Flow

Supplier

Raw Process Matl A

Process B

Process C

Fin. Goods

Customer

Parts Flow Kanban Locations

Principles of Lean Manufacturing

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Lean Building Blocks

Continuous Improvement
Pull/Kanban Quality at Source Standardized Work 5S System POUS Cellular/Flow TPM

Quick Changeover Teams Value Stream Mapping

Batch Reduction Visual

Plant Layout

Principles of Lean Manufacturing

What needs to change?


TPM Quick Changeover Cellular Flow Pull/Kanban Quality @ Source
5S System Standardized Work Visual Controls Plant Layout Teams
Principles of Lean Manufacturing

Batch Size Reduction POUS

Go to Work! Round 3
Principles of Lean Manufacturing

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Round Three: Debrief

Discuss results How did it feel? Relationship to real world

Principles of Lean Manufacturing

Action Plan

Implementation Value Stream Mapping Train workers with appropriate skills Solve problems using Lean tools Continuous Improvement
Principles of Lean Manufacturing

Lean Building Blocks

Continuous Improvement
Pull/Kanban Quality at Source Standardized Work 5S System POUS Cellular/Flow TPM

Quick Changeover Teams Value Stream Mapping

Batch Reduction Visual

Plant Layout

Principles of Lean Manufacturing

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Course Objectives

Can you now:


Define Lean? Identify the eight wastes? Differentiate between Value Added and Non-Value Added activities? Apply various Lean implementation tools in a simulation setting? Describe how Lean Principles can impact the success of your organization?
Principles of Lean Manufacturing

Benefits of Lean
Percentage of Benefits Achieved 0 Lead Time Productivity Increase WIP Reduction Quality Improvement Space Utilization 25 50 75 100

Principles of Lean Manufacturing

Continuous Improvement (CI)


Old Adage: If you always do what you always did, youll always get what you always got.

Competitive Corollary: If the other guy gets BETTER, youre gonna get LESS.

Principles of Lean Manufacturing

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LEAN ENTERPRISE

Thank You.

Recommended Readings
Lean Thinking by Jim Womack Becoming Lean by Jeffrey Liker The Machine That Changed the World by Jim Womack
and Daniel T. Jones

The Goal by Eli Goldratt World Class Manufacturing: The Next Decade by
Richard Schonberger

Lean Production Simplified by Pascal Dennis Others can be found on bookstore sites key word
Lean
Principles of Lean Manufacturing

Lean Web Sites


MEP Lean Sites: www.techhelp.org www.mepcenters.nist.gov Other Lean Sites: www.lean.org www.productivityinc.com www.superfactory.com www.nwlean.net www.sme.org www.apics.org

Principles of Lean Manufacturing

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