The document discusses the application of Lean Manufacturing principles to companies of various sizes. It argues that Lean can benefit both small and large companies by reducing waste, improving efficiency, quality and customer satisfaction. Specific Lean tools like 5S, Pareto charts and A3 reports are applicable regardless of company size. Case studies show how both large corporations and small businesses have successfully implemented Lean to improve profits, productivity and competitiveness.

1. Can we apply Lean Manufacturing to any size company? Coralie BAILLY
LEAN MANUFACTURING APPLICATIONS

2. EXECUTIVE SUMMARY
SUCCESS STORY
TOOLS AND APPLICATION
CASE OF BIG COMPANIES
CASE OF SMALL COMPANIES
CONCLUSION
BIBLIOGRAPHY
CONTENT
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3. Developed in the automotive industry by Toyota after the Second World War, the Lean approach aims process optimization by reducing sources of inefficiencies and waste. It is applicable in all industry sectors (including pharmaceutical or food) and all activities (production, service organizations, support functions).
Today's successful companies are flexible, efficient and responsive to change. They produce only what their customers need, precisely when they need it, with zero defects. They have efficient processes, and a safe working environment for employees who are engaged and committed to results.
Lean has proven its worth in big companies, but it is a very interesting tool for start- ups and small companies.
EXECUTIVE SUMMARY
Lean approach is rapidly increasing worldwide, as a possible anti-crisis solution. Lean manufacturing tends to be associated with large-scale, mass- production manufacturing. But can smaller businesses benefit from such process-improvement programs as well?
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4. How a company in difficulty became successful thanks to Lean Manufacturing. This large division of a vertically integrated steel mill had been losing money for several years and the parent company was seriously considering closing it down. In addition, the division had too much cash tied-up in inventory and had lead time and delivery performance problems. This company decided to contact a consultant in Lean solutions (American corporation “ThroughPut Solutions”) After ten months, here are the results:
• $16 million (U.S.) cash was generated via inventory reduction
• Lead times were cut by 60%
• Average lot size was cut by 65%
• Average coil mass increased by 9% (yield improvement)
• On-time delivery soared, from 55% to 95%, the best in their industry
• Customer complaints dropped by more than half
• Cost of quality plummeted
• Profitability improved by $5 million per month
SUCCESS STORY
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5. How did they achieve these results ?
SUCCESS STORY
The number one issue faced when attempting to convert any large business is its legacy of historical doctrine. This company’s measurement and reward systems were typical, i.e. all geared to maximizing the efficiency of the individual operating units (tons per hour), but not necessarily the entire process.
Overview of the situation
The results were different set of operating rules at each unit. The easiest way to accomplish these conflicting objectives is to keep a huge pile of inventory in front of every unit so that they can put together an optimal run schedule. Note that this “optimal” schedule can, and often does, lose sight of the customer promise date. Also note that these queues extend lead times, hide defects, increase handling damage, add difficulty to the scheduling process, tie up cash and space, and cause excessive expediting.
Identification of problems
Inventory reduction goals were pushed down through the organization. These were readily understood at the unit level: Kanban limits (number of coils allowed in front of an operating unit) were to be reduced an agreed amount over a specific period of time. Another key factor in achieving World Class operating performance is to control the order book. Strict capacity loading rules were put in place to assure that we did not overload the mill.
Action
They began with an education session for top management. Inventory reduction and on-time delivery goals were set, and commitment attained. Brief overview education/introduction classes were provided for all employees. Then scheduling rules were attacked, blitzes were held to resolve obstacles, internal teams were formed to propagate the process, kanban controls were initiated.
Education
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6. The Lean manufacturing strategy depends on a lot of data, but is applicable everywhere. Here are some of the most efficient tools to apply lean.
This technique helps to identify the top portion of causes that need to be addressed to resolve the majority of problems. It is common to refer to Pareto as "80/20" rule, under the assumption that, in all situations, 20% of causes determine 80% of problems.
Pareto Diagram
TOOLS AND APPLICATION
Example :
2 main problems, on wich it is effective to work.
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7. This method consists in maintaining a clean and organized workspace to promote greater efficiency, fonctionality and higher level of production.
5S
TOOLS AND APPLICATION
Set in order
Shine
Sort
Sustain
Standardize
•Sort : remove unnecessary items from the workplace that are not needed for current production operations.
•Set in order : creating efficient and effective storage methods to arrange items so that they are easy to use.
•Shine : clean the work area daily, that enables workers to notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments.
•Standardize : make the 3 first S easy to maintain.
•Sustain : making a habit of properly maintaining correct procedures.
Everyone and all types of business benefit from having a 5S program. Manufacturing and industrial plants come to mind first, as those are the business that can realize the greatest benefits.
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8. This diagram in “fish bones” shape identifies many possible causes for an effect or problem.
Ishikawa
TOOLS AND APPLICATION
•People: Anyone involved with the process.
•Process: How the process is performed and the specific requirements for doing it, such as policies, procedures, rules, regulations and laws.
•Equipment: Any equipment, computers, tools, required to accomplish the job.
•Materials: Raw materials, parts, pens, paper, etc. used to produce the final product.
•Measurements: Data generated from the process that are used to evaluate its quality.
•Environment: The conditions, such as location, time, temperature, and culture in which the process operates.
Measurements
Common uses of the Ishikawa diagram are product design and quality defect prevention.
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9. Big companies that have implemented Lean manufacturing have improved :
• Quality performance, fewer defects and rework (in house and at customer)
• Fewer Machine and Process Breakdowns
• Lower levels of Inventory
• Greater levels of Stock Turnover
• Less Space Required
• Higher efficiencies, more output per man hour
• Improved delivery performance
• Faster Development
• Greater Customer Satisfaction
• Improved employee morale and involvement
• Improved Supplier Relations
• HIGHER PROFITS and INCREASED BUSINESS ! Among these companies, we find he vast majority of automotive companies (Toyota, General motors, Chrysler, BMW, Ford, Bosch-Rexroth…) and aerospace companies (Boeing, Airbus) . Giant companies in various fields are using Lean: Merck (pharmaceuticals), Exxon Mobil (Oil and Gas), General Electric, Nike, Mc Donalds, Coca Cola, and many other.
CASE OF BIG COMPANIES
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10. Most manufacturers are smaller enterprises. Nearly three-quarters of manufacturing firms have fewer than 20 employees, according to data from the U.S. Census bureau. Such businesses often tend toward contract work and lower-volume production. To remain competitive, the business has to be flexible and resilient, prepared to retool efficiently and move quickly from one job to the next. This flexibility is an advantage, but it should not be synonymous with desorganization. Lean brings both.
CASE OF SMALL COMPANIES
Benefits of Lean manufacturing in small companies
• Manage a few people helps a better communication and involvement. The education about the Lean approach will be faster than in a big company and there is less resistance to change.
• It is easy to apply 5S in small companies, and the results are much more fast and impressive.
• Lean approach can be adapted to what you want to do of the company and to the culture.
• Focusing on creating continuous flow production, in which items are processed and moved immediately to the next step, results in very short lead times, rapid identification of problems, quick communication between steps, increased productivity, higher output and conservation of resources.
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11. The purchase of the first models can be done without fear while in the case of "No Lean", these products are experiencing significant problems with reliability, performance or functionality.
Immediately be reliable
A key to good health and performance in industry often is its ability to initiate regular and timely good new products or new versions of good product. But what criteria or characteristics do the company need for this ?
The time between the first series and stabilized production is still short, they do not exhibit incompatibility with the existing production resources and they are excellent at once.
Easy manufacturing
Launches are on schedule, without development cost overruns and without loss of functionality compared to those expected by the client.
Demonstrate the expected quality and functionality
CASE OF SMALL COMPANIES
A new approach: the Lean Startup
Lean startup is a method for developing businesses and products proposed in 2011 by Eric Ries. Based on his previous experience working in several U.S. startups, he claims that startups can shorten their product development cycles by adopting a combination of business-hypothesis-driven experimentation and iterative product releases. If startups invest their time into iteratively building products or services to meet the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures. This approach starts to be adapted for big companies…
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12. CONCLUSION
Lean is not only a specific tool for large production but can be applied in every company, whatever its size.
W.Edwards Deming once said: “It is not necessary to change, survival is not mandatory!” Companies can stay as they are and hope that no one out there makes better cheaper products that better meet customers needs.
However we are now in a global market, and if you have a business, small or large, someone out there is looking at your share of the market and working out how to win it from you. All competitors will improve, they will evolve, they may even revolutionize your industry, you need to be there first or you will lose your business.
It is not enough to just make improvements when a crisis hits, you need to have a program of continual business improvement to ensure that your business will thrive, not just struggle to survive.
Implementing Lean Manufacturing and Lean Tools are a proven method to improve business, satisfy clients and beat the competition.
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13. Coralie Bailly cbailly9@gmail.com http://www.linkedin.com/in/coraliebailly

14. •“The goal : The Goal, A process of ongoing improvement ”- Eliyahu M. GOLDRATT & Jeff COX, 2004
•“Lean, an anti-crisis solution ?” – Techniques de l’ingénieur, 2010
•“The secret to lean innovation in make learning a priority”– Harvard Business Review, 01/23/2014
•Pareto Chart - http://asq.org/learn-about-quality/cause-analysis-tools/overview/pareto.html
•Lean thinking and methods - http://www.epa.gov/lean/environment/methods/fives.htm
•“The lean enterprise experiment canvas” – Lean Analytics, 04/22/2014
•“Does lean manufacturing work for small run job shops” – Thomasnet.com-Industry News, 10/30/2013
•“Lean manufacturing can save American manufacturing” - http://www.reliableplant.com/Read/137/lean- manufacturing-american
•“How GE Applies Lean Startup Practices” – HarvardBusiness Review, 04/23/2014
BIBLIOGRAPHY
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