Introduction to Lean   Manufacturing© 2009, Levinson Productivity Systems, P.C.   1           www.ct-yankee.com
One Page Overview• The purpose of lean is to  remove all forms of waste  from the value stream.  • Waste includes cycle ti...
Contents• Benefits of Lean Manufacturing• The Origins of Lean  Manufacturing• What Is Lean Manufacturing?• Waste, Friction...
Benefits of Lean      Manufacturing•     Lean manufacturing      delivers an insurmountable      competitive advantage    ...
Benefits of Lean            Manufacturing•       Lower production cost         higher profits and wages    •      Cost av...
Bottom Line and the  Language of Money• The first comprehensive  implementation of lean  manufacturing yielded:  • Stock a...
The Origin of Lean  Manufacturing  Discussion question: Who created the Toyota  Production System?© 2009, Levinson Product...
The Creator of the Toyota   Production System  © 2009, Levinson Productivity Systems, P.C.   8             www.ct-yankee.com
Origin of the Toyota  Production System• Taiichi Ohno said openly that  he got the idea from Henry  Fords books and the Am...
Bottom Line Results of       the TPS• The Ford Motor Companys  original stock grew 63% per  year (not counting dividends) ...
What is Lean    Manufacturing?A systematic approach tothe identification andelimination all forms ofwaste from the valuest...
Concept of Friction, Waste, or MudaUnderstanding of friction,waste, or muda is thefoundation of the leanManufacturing.© 20...
The First Step is to Recognize the Waste• This principle has been  stressed by:  • Henry Ford  • Taiichi Ohno (Toyota    p...
Waste Often Hides in     Plain View• We cannot eliminate the waste  of material, labor, or other  resources until we recog...
Waste is Often Built    Into Jobs    Pre-Gilbreth Bricklaying© 2009, Levinson Productivity Systems, P.C.   15           ww...
Post-Gilbreth Brick     Laying  The solution is obvious (in  retrospect), but first we have to  know that we have a proble...
Lessons so far• Waste often hides in plain  view.  • People become used to "living    with it" or "working around it."  • ...
TPS Definitions of         Waste1. Overproduction2. Waiting, including time in queue3. Transportation (between   workstati...
Waste (notes page)© 2009, Levinson Productivity Systems, P.C.   19           www.ct-yankee.com
Waiting as a Form of         Waste• Of the total cycle time or  lead time, how much  involves value-adding  work?  • How m...
The Value-Adding         "Bang!"• Masaaki Imai uses "Bang!"  to illustrate that the value-  adding moment may  consist of ...
Imais Golf Analogy• In a four hour golf game, the  golf club is in contact with the  ball for less than two seconds.  • Th...
The Value-Adding   "Bang," Continued• In a factory, the value-adding  "Bang!" takes place when, for  example, a stamping m...
Cycle Time Accounting• The basic idea is to attach  a "stopwatch" to each job  (or sample jobs) to  determine exactly how ...
Cycle Time Accounting,      Continued• The clock starts the instant a  job begins an activity and  stops the instant it en...
Gantt Chart                      Modification           WORKSTATION 1         Waiting for operator            Waiting for ...
Waste: Summary• This section has shown how  wastes of material, labor, and  cycle time can hide in plain  view.• Cycle tim...
Green is the Color of      Money"…we will not so lightly wastematerial simply because wecan reclaim it—for salvageinvolves...
The Birth of Green     Manufacturing• Henry Ford could probably  have met ISO 14001  requirements in an era when  he could...
Fords Green         Manufacturing• Recovery and reuse of  solvents• Distillation of waste wood for  chemicals yielded enou...
Identification of Material  and Energy Wastes• Material and energy waste can  easily be built into a job.• Elimination of ...
Control Surface        Approach Material Inputs                    Material Outputs                      Process Energy In...
Example: Spin Coating of Semiconductor Wafers                                 Photoresist  Wafers and  Photoresist        ...
Example: Machining Metal billets                  Metal turnings and cutting                      and cutting fluid       ...
Discussion Question• Do you know of processes in  which materials are thrown  away (or recycled)?  • If so, can the proces...
Lean Manufacturing   Techniques     Some principles and      activities for lean       manufacturing© 2009, Levinson Produ...
Design for Manufacture• Synergistic with ISO  9000:2000 7.3, Design Control.• Involve manufacturing,  customers, and other...
5S-CANDO• 5S-CANDO, a systematic approach  to cleaning and organizing the  workplace, suppresses friction.• Seiri = Cleari...
Visual Controls• "Basically, the intent is to make  the status of the operation  clearly visible to anyone  observing that...
Examples of Visual        Controls• 5S-CANDO (arranging)• Jidoka or autonomation  • Andon lights and buzzers announce    t...
Visible Management• A visible production  management system should  indicate:  (1)What the operation is trying to     make...
"Pull" Production     Control Systems• Just-In-Time (JIT)  • First described by Henry Ford in    My Life and Work (1922)• ...
Drawbacks of Batch       Processing• Running equipment (e.g. a heat  treatment furnace) at less than full  load wastes cap...
Single-Unit Processing   Reduces Cycle Time• Wayne Smith (1998) defines  manufacturing cycle efficiency  as (Value-adding ...
Single-Minute Exchange     of Die (SMED)• Left column: non-value-addingsetup and load/unload activities• Right column: val...
SMED Principles and       Benefits• Internal setup requires the  tool to stop.  • Reduce internal setup time, or    conver...
Error-Proofing          (Poka-Yoke)• Error-proofing makes it difficult  or impossible to do the job the  wrong way.• Slots...
Summary and       Conclusion         Most of lean       manufacturing is       common sense!© 2009, Levinson Productivity ...
Summary• Business activities can contain  enormous quantities of built-in  waste (muda, friction).• The greatest obstacle ...
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Lean Manufacturing

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  • As we proceed through the presentation, we will see many specific advantages of lean Manufacturing. Lower production costs and shorter cycle times encompass the key competitive advantages. "Insurmountable" is not an exaggeration . The only thing that can compete with a lean Manufacturing system is another lean Manufacturing system. Make-to-order (facilitated by shorter cycle times and JIT) crushes make-to-forecast through lower cost and better customer satisfaction. Comprehensive lean Manufacturing crushes cheap foreign labor. It was, in fact, developed with this issue in mind. Lean Manufacturing can thus preserve American manufacturing capability, upon which our nation's security and standard of living depend. (3) Comprehensive lean Manufacturing beats Six Sigma any day of the week. (Lean Manufacturing actually includes many elements of Six Sigma, such as standardization and best practice deployment.) The Ford Motor Company continued to expand its sales during the post-World War I depression by using lean Manufacturing. A lean company is secure even during "bad times." "What has Six Sigma done for Motorola lately (2000-2002)?" (4) Lean Manufacturing includes total quality management (TQM).
  • The Ford Motor Company (and the industries that grew to support it) was directly responsible for making the United States the wealthiest and most powerful nation on earth. The U.S. surpassed the British Empire some time during the 1910s. During the Model T's 19 years of production, it created more prosperity than the estimated wealth of 35 of the country's 48 states (Ford, 1930, Moving Forward ). This figure did not include railway workers, rubber workers, oil workers, and others for whom the Model T created jobs. When the going got tough, the Ford lean Manufacturing system kept going. "What has Six Sigma done for Motorola lately (2000-2002)?" The Ford Motor Company sold 1.25 million cars during the 1920-1921 depression that followed the First World War and the 1918 influenza epidemic: five times as many cars as the company sold during 1913-1914 . Lean Manufacturing is more comprehensive and global in outlook than Six Sigma. Lean Manufacturing's goal is to root out all forms of waste. Remember, however, that lean actually incorporates aspects of Six Sigma, so the two systems are compatible.
  • My Life and Work (1922) described all the basic principles of JIT: We have found in buying materials that it is not worth while to buy for other than immediate needs. We buy only enough to fit into the plan of production, taking into consideration the state of transportation at the time. If transportation were perfect and an even flow of materials could be assured, it would not be necessary to carry any stock whatsoever. The carloads of raw materials would arrive on schedule and in the planned order and amounts, and go from the railway cars into production. That would save a great deal of money, for it would give a very rapid turnover and thus decrease the amount of money tied up in materials. With bad transportation one has to carry larger stocks. Materials arrive exactly, and only, when the production line needs them. Materials go, not from dock to stock, but from dock to factory floor. JIT requires reliable transportation and a supporting logistics system. Bad transportation (e.g. lack of a good freight management system) requires the plant to keep more inventory. Inventory reduction frees capital. Cycle time reduction frees capital.
  • A dollar's worth of Ford stock purchased in 1903 returned $2500 when Ford bought his stockholders out in 1919.
  • Lean Manufacturing was directly responsible for making the United States the wealthiest and most powerful nation on earth during the early twentieth century. Enormous growth in U.S. productivity caused the United States to surpass the British Empire in wealth and military power. Lean Manufacturing is the only way to protect American manufacturing capability and preserve the nation's affluence and military security.
  • The brick weighs about five pounds (2.3 kg). How much does the worker actually raise and lower every time he bends over for another brick? This animation illustrates the virtue of videotaping workplace activities. The people who are doing the job may have become accustomed to the waste that is built into the job but, when they watch themselves in the videotape, the waste may become obvious.
  • "I believe that the average farmer puts to a really useful purpose only about 5 per cent. of the energy he expends. … Not only is everything done by hand, but seldom is a thought given to a logical arrangement. [Time for a kaizen blitz?] 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" (Henry Ford, 1922, My Life and Work ).
  • (1) Overproduction "Just-in-case" production driven by long-term market forecasts, instead of just-in-time Dysfunctional performance measurements that demand that personnel and equipment keep busy. (2) Waiting: time in queue Aggravated by batch-and-queue operations. (Heat-treatment seems notorious for this.) Alleviated by single-unit processing (3) Transportation Hand trucks and forklifts for moving parts from one part of the factory to another: no value added, opportunity for handling damage. Transportation introduces cycle time and lead time, e.g. container ships from China add six or seven weeks . Mortal enemy of make-to-order, assemble-to-order, and JIT Defects are not discovered promptly
  • (4) Non-value-adding activities Paperwork and bureaucracy Value analysis: words like position, reorient, adjust, set up, and handle imply non-value-adding activities. (5) Inventory Carrying costs Inventory carrying costs add up to 25 percent to the cost of new cars. Obsolescence Opportunity for damage and loss Defects are not discovered until the inventory is used. Recall that a container ship is a warehouse in disguise (6) Waste Motion (next page) (7) Cost of Poor Quality Prevention: activities whose purpose is to prevent defects Appraisal: inspection or testing to protect the customer from defects Internal Failure: rework and scrap External Failure: failure in the customer's hands. Former Juran Institute CEO Blanton Godfrey ("Managing Key Suppliers." Quality Digest , September, 2000, p. 20.) ascribes 30 to 50 percent of health care expenditures to costs of poor quality —- and, given hospitals' slow adoption of industrial-style quality management systems, this is very easy to believe.
  • Imai, Masaaki. 1997. Gemba Kaizen . New York: McGraw-Hill
  • We recommend an understanding of this concept as a basic skill that everybody needs to know.
  • See Levinson, Beyond the Theory of Constraints (2007, Taylor-Francis) for more about cycle time accounting.
  • The importance of this observation cannot be overemphasized. Today, avoidance of disposal costs is an incentive for green manufacturing. Ford found it profitable to find uses for waste (or avoid its production in the first place) even though he could have legally dumped it into the atmosphere or river.
  • At the basic skill level, frontline workers need to recognize that anything that is thrown away represents wasted material, and possibly disposal costs. At the intermediate skill level, managers and engineers should understand the control surface concept, and the fact that all inputs and outputs must balance. Levinson, William A. "Waste Management: Using a bill of outputs to eliminate excess." APICS, The Performance Advantage , January 2005 (33-35) We recommend this as an intermediate-level tool for use by facilitators, engineers, and managers.
  • There is admittedly no guarantee that the waste can in fact be avoided or eliminated once it is recognized. The usual situation is, however, that there is NO chance to eliminate it because no one recognizes its presence in the first place.
  • At Henry Ford's River Rouge auto plant during the late 1920s or early 1930s, workers noticed that a machining process reduced 25 percent of the aluminum stock to chips. The product or process was redesigned to reduce the waste to 2 percent, even though the chips were presumably recyclable.
  • Example: power source regeneration means that, when machine tools stop, their motors act as generators by recovering the mechanical energy as electricity. The concept is similar to that of the Toyota Prius, but the technology has been available in machine tools before the Prius became available. See Koelsch, James R. "Machine Efficiency = Energy Efficiency," Manufacturing Engineering , September 2008, pp. 121-130.
  • Henry Ford, My Life and Work (1922), on DFM: "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." Ricoh Copier: an improvement during the design phase has a 100:1 payoff. A process improvement has a 10:1 payoff. Correction of a manufacturing problem has a 1:1 payoff. (Lorenzen, Jerry. 1992. "Quality Function Deployment." Presentation to the Mid-Hudson Chapter, ASQC, 05/26/92) DFM ties in with quality function deployment (QFD), also known as the "house of quality." QFD brings "the voice of the customer" into the design process.
  • Rudyard Kipling's The 'Eathen describes the general idea: The 'eathen in 'is blindness bows down to wood an' stone; 'E don't obey no orders unless they is 'is own; 'E keeps 'is side-arms awful: 'e leaves 'em all about, An' then comes up the regiment an' pokes the 'eathen out. All along o' dirtiness, all along o' mess, All along o' doin' things rather-more-or-less, All along of abby-nay, kul, an' hazar-ho, Mind you keep your rifle an' yourself jus' so! … Gettin' clear o' dirtiness, gettin' done with mess, Gettin' shut o' doin' things rather-more-or-less; Not so fond of abby-nay, kul, nor hazar-ho, Learns to keep 'is rifle an' 'isself jus' so! abby-nay = "Not now." kul = "Tomorrow." hazar-ho = "Wait a bit." (1) Clearing Up: Your wastebasket is your friend. Disney theme parks have plenty of waste receptacles. At Ford's River Rouge plant, a waste container was within six steps of any position (Norwood, 1931. Ford: Men and Methods ). Unwanted but serviceable equipment can be auctioned off on E-bay. Three-tier classification Frequently-used items at workstation Regular use: near workstation Rare use: keep outside the work area (2) Arranging: a place for everything, and everything in its place (3) Neatness: Keeping everything clean makes it easier to locate leaks and dropped parts. It also keeps dirt out of the equipment and the product. (4) Discipline: includes scheduled preventive maintenance: Described explicitly by Frederick Winslow Taylor in 1911 (5) Ongoing improvement: Holding the gains through standardization and best practice deployment
  • Smith, Wayne. 1998. Time Out: Using Visible Pull Systems to Drive Process Improvements . New York: John Wiley & Sons. Suzaki, Kyoshi. 1987. The New Manufacturing Challenge . New York: The Free Press Caravaggio, Michael: "Total Productive Maintenance" in Levinson, William (editor). 1998. Leading the Way to Competitive Excellence: The Harris Mountaintop Case Study . Milwaukee, WI: ASQ Quality Press. Principles for visual controls, per Caravaggio (in Levinson, 1998) Communication: written communications must be easily accessible. Visibility: communication uses pictures and signs. Consistency: every activity uses the same conventions. Traffic signs are an example. Stop signs are the only red octagonal signs, yield signs are triangular, and so on. Detection: alarms and warnings announce abnormalities. Fail-safing: this prevents mistakes and abnormalities.
  • See Levinson, William, and Rerick, Raymond. 2002. Lean Manufacturing: A Synergistic Approach to Minimizing Waste . Milwaukee: ASQ Quality Press Ford Highland Park plant (1915): the accumulation of inventory where it didn't belong, e.g. in a work slide or on a conveyor belt, was easily visible. It was evidence of a stoppage or other problem. "As soon as the roll-ways were placed the truckers were called off, the floor was cleared, and all the straw boss had to do to locate the shirk or operation tools in fault, was to glance along the line and see where the roll-way was filled up" (Arnold, Horace Lucien, and Faurote, Fay Leone. 1915. Ford Methods and the Ford Shops . New York: The Engineering Magazine. Reprinted 1998, North Stratford, NH: Ayer Company Publishers, Inc.).
  • Reference: Smith, Wayne. 1998. Time Out: Using Visible Pull Systems to Drive Process Improvements . New York: John Wiley & Sons. "For each constituent operation of an order an instruction card corresponding to the standard order is written at the time the work is planned, and, when issued to the workman, it is hung in plain sight in a tin rack at the workman's bench . To insure definitely the complete occupation of the employee's time three jobs are assigned him; he is working on one, the second is ready— all materials and appliances at hand, and the third is either ready or the stock is in the material or the milling department. When a job is completed, the mechanic hangs his card on a hook on the lower right hand corner, moves up the other two, and goes on with his work. … The rack always shows the foreman what the man is doing, and calls attention to the jobs ahead, so that it is of the very greatest value in coordinating the work of the various departments. " (Frederick G. Coburn, "Laying Out Work for Each Man," in The System Company. 1911. How to Get More Out of Your Factory . London: A. W. Shaw Company, Ltd.) Furthermore, "…it is also necessary that each man get through with his job in time for the next man to take it up, for that next man isn't going to be caught loafing if he values his job. [This wording reflects management attitudes of the early twentieth century, but note that inventory does not decouple downstream operations from stoppages.] And the work must be done right, or the next man will kick [complain], lest the boss find him with a piece of imperfect work. [There is little or no inventory in which defects can hide for long.] The whole thing becomes an interlocking and smoothly working mechanism if correctly planned and supervised: and the most trouble occurs under the conditions producing apparently the smoothest running under the old system ."
  • The chemical industry has some of the most easily-controllable processes in existence. They are (ideally) pure flow operations Chemical engineers prefer the plug flow reactor (PFR) and continuous stirred tank reactor (CSTR) over the batch reactor. They are amenable to automatic process controls, e.g. proportional-integral-derivative (PID) controllers. In discrete-item manufacture, single-unit processing is the closest approximation to a continuous flow operation.
  • The golf analogy is a very good one. Remember that a punch adds value to the part only during the split second in which it actually strikes the part. A drill or lathe adds value only when the tool is in contact with the piece and is cutting metal. Theory of Constraints (Goldratt): you can increase capacity only by elevating the constraint operation. Cycle time can, however, be reduced anywhere in the process. Eliminate batching and queuing Transportation adds cycle time but no value. Single-minute exchange of die (SMED) reduces setup times and allows smaller batches to be run economically Processes can be changed to reduce cycle time. Selection of the right alloy can eliminate a heat-treatment step. The advantages of a short cycle time can be enormous. Make-to-order instead of make-to-forecast! No need to guess what customers will want several months from now. Adams Citrus Nursery's continuous flow greenhouse, using "Citripots." Lead time 9 months instead of 3 years, trees could be grown to order for orchards. Better responsiveness to customer needs
  • "Instruction Card for Lathe Work," from Frederick Winslow Taylor's Shop Management (1911). The left-hand column is for "operations connected with preparing to machine work on lathes and with removing work to floor after it has been machined." It therefore includes setting up the lathe, and loading and unloading the work. These are non-value-adding and, per SMED, should be reduced or externalized. The right-hand column is for "operations connected with machining work on lathes." Taylor apparently focused his efforts on making these activities more efficient (as opposed to reducing setup). The value-adding operations of his era suffered, however, from the false economy of trying to maximize the tool's life at the expense of productivity. Taylor said to machine the work as quickly as possible, and regrind the tools as necessary. Taylor and J. Maunsel White developed the Taylor-White process for treating tool steel. Per Taylor's Shop Management (1911), When one realizes that the cutting speed of the best treated air hardening steel is for a given depth of cut, feed, and quality of metal being cut, say sixty feet per minute, while with the same shaped tool made from the best carbon steel and with the same conditions, the cutting speed will be only twelve feet per minute, it becomes apparent how little the necessity for rigid standards is appreciated.
  • SMED also increases the tool's capacity by reducing setup time. Per Goldratt's Theory of Constraints, however, this does not improve factory capacity unless the tool in question is the constraint. Note SMED's central role in cycle time reduction . When setup times are long, the factory is almost compelled to run large batches of parts to avoid breaking setups. Batch-and-queue is the mortal enemy of short cycle times because the parts spend most of their time waiting to be processed. Historical example of SMED: the preloaded musket cartridge. Measuring out the black powder charge from a powder horn is internal setup ; a hunter could not use his firearm while he was doing this. This aspect of setup could, however, be externalized by measuring the appropriate charge into a wooden cartridge. Sixteenth-century woodcuts show soldiers using such cartridges, and performing loading drills that incorporated motion efficiency principles. The paper-wrapped cartridge reduced non-value-adding handling even further by incorporating the powder charge, bullet, and wadding (the paper wrapping itself) into one package. It eliminated the need for the soldier to reach for the cartridge, bullet, and wadding separately. The ability to shoot more rapidly at targets that shot back was doubtlessly an incentive to develop methods that industry adopted centuries later, and Frank Gilbreth recognized this in his Motion Study (1911).
  • Seen at a health clinic at O'Hare Airport while getting a flu shot (October 2002): syringes have needle caps attached to them. After the injection is given, the needle is capped immediately. The nurse does not have to go to a sharp-object disposal unit to make the needle safe. It's estimated that handwritten prescriptions kill up to 25,000 patients per year ("Message to physicians: Better read than dead." 2000. Wilkes-Barre Times Leader , 25 October 2000). ISO 9000 does not allow any uncontrolled handwritten work instructions. Recommendation (being done in some hospitals): the physician must enter the prescription into a computer. Check for unusual dosages (e.g. 100 instead of 10) Check for interactions Send unambiguous instructions to the pharmacy and possibly issue a bar code for the medication
  • Lean Manufacturing

    1. 1. Introduction to Lean Manufacturing© 2009, Levinson Productivity Systems, P.C. 1 www.ct-yankee.com
    2. 2. One Page Overview• The purpose of lean is to remove all forms of waste from the value stream. • Waste includes cycle time, labor, materials, and energy.• The chief obstacle is the fact that waste often hides in plain sight, or is built into activities. © 2009, Levinson Productivity Systems, P.C. 2 www.ct-yankee.com
    3. 3. Contents• Benefits of Lean Manufacturing• The Origins of Lean Manufacturing• What Is Lean Manufacturing?• Waste, Friction, or Muda• Lean Manufacturing and Green Manufacturing/ ISO 14001• Some Lean Manufacturing Techniques• Conclusion © 2009, Levinson Productivity Systems, P.C. 3 www.ct-yankee.com
    4. 4. Benefits of Lean Manufacturing• Lean manufacturing delivers an insurmountable competitive advantage over competitors who dont use it effectively. © 2009, Levinson Productivity Systems, P.C. 4 www.ct-yankee.com
    5. 5. Benefits of Lean Manufacturing• Lower production cost  higher profits and wages • Cost avoidance flows directly to the bottom line.(2) Supports ISO 14001 and "green" manufacturing • Reduction of material waste and associated disposal costs  higher profits(3) Shorter cycle times: make-to- order vs. make-to-stock © 2009, Levinson Productivity Systems, P.C. 5 www.ct-yankee.com
    6. 6. Bottom Line and the Language of Money• The first comprehensive implementation of lean manufacturing yielded: • Stock appreciation of 63 percent per year, for 16 years (not counting dividends) • 7.2 percent annual wage growth• The next section will discuss lean manufacturings origins. © 2009, Levinson Productivity Systems, P.C. 6 www.ct-yankee.com
    7. 7. The Origin of Lean Manufacturing Discussion question: Who created the Toyota Production System?© 2009, Levinson Productivity Systems, P.C. 7 www.ct-yankee.com
    8. 8. The Creator of the Toyota Production System © 2009, Levinson Productivity Systems, P.C. 8 www.ct-yankee.com
    9. 9. Origin of the Toyota Production System• Taiichi Ohno said openly that he got the idea from Henry Fords books and the American supermarket. • Fords My Life and Work (1922) describes just-in-time (JIT) and other lean concepts explicitly. • Depletion of supermarket shelf stock triggers replenishment; it is a "pull" system like kanban or Drum-Buffer-Rope. © 2009, Levinson Productivity Systems, P.C. 9 www.ct-yankee.com
    10. 10. Bottom Line Results of the TPS• The Ford Motor Companys original stock grew 63% per year (not counting dividends) and 7.2% annual wage growth.• Toyota recently superseded General Motors as the worlds largest automobile company.• The next section will show how the TPS delivers these results. © 2009, Levinson Productivity Systems, P.C. 10 www.ct-yankee.com
    11. 11. What is Lean Manufacturing?A systematic approach tothe identification andelimination all forms ofwaste from the valuestream.© 2009, Levinson Productivity Systems, P.C. 11 www.ct-yankee.com
    12. 12. Concept of Friction, Waste, or MudaUnderstanding of friction,waste, or muda is thefoundation of the leanManufacturing.© 2009, Levinson Productivity Systems, P.C. 12 www.ct-yankee.com
    13. 13. The First Step is to Recognize the Waste• This principle has been stressed by: • Henry Ford • Taiichi Ohno (Toyota production system) • Tom Peters (Thriving On Chaos) • Shigeo Shingo • J. F. Halpin (Zero Defects) © 2009, Levinson Productivity Systems, P.C. 13 www.ct-yankee.com
    14. 14. Waste Often Hides in Plain View• We cannot eliminate the waste of material, labor, or other resources until we recognize it as waste. • A job can consist of 75 percent waste (or even more).• Classic example: brick laying in the late 19th century © 2009, Levinson Productivity Systems, P.C. 14 www.ct-yankee.com
    15. 15. Waste is Often Built Into Jobs Pre-Gilbreth Bricklaying© 2009, Levinson Productivity Systems, P.C. 15 www.ct-yankee.com
    16. 16. Post-Gilbreth Brick Laying The solution is obvious (in retrospect), but first we have to know that we have a problem!© 2009, Levinson Productivity Systems, P.C. 16 www.ct-yankee.com
    17. 17. Lessons so far• Waste often hides in plain view. • People become used to "living with it" or "working around it." • Definition for employees at all levels: If its frustrating, a chronic annoyance, or a chronic inefficiency, its friction. (Levinson and Tumbelty, 1997, SPC Essentials and Productivity Improvement, ASQ Quality Press) © 2009, Levinson Productivity Systems, P.C. 17 www.ct-yankee.com
    18. 18. TPS Definitions of Waste1. Overproduction2. Waiting, including time in queue3. Transportation (between workstations, or between supplier and customer)4. Non-value-adding activities5. Inventory6. Waste motion7. Cost of poor quality: scrap, rework, and inspection © 2009, Levinson Productivity Systems, P.C. 18 www.ct-yankee.com
    19. 19. Waste (notes page)© 2009, Levinson Productivity Systems, P.C. 19 www.ct-yankee.com
    20. 20. Waiting as a Form of Waste• Of the total cycle time or lead time, how much involves value-adding work? • How much consists of waiting? © 2009, Levinson Productivity Systems, P.C. 20 www.ct-yankee.com
    21. 21. The Value-Adding "Bang!"• Masaaki Imai uses "Bang!" to illustrate that the value- adding moment may consist of a literal "Bang!" • Contact between tool and work • Contact between golf club and ball © 2009, Levinson Productivity Systems, P.C. 21 www.ct-yankee.com
    22. 22. Imais Golf Analogy• In a four hour golf game, the golf club is in contact with the ball for less than two seconds. • The same proportion of value- adding to non-value-adding time prevails in many factories.• Additional analogies: • Waiting for other players = waiting for tools • Walking = transportation • Selecting a club and addressing the ball = setup © 2009, Levinson Productivity Systems, P.C. 22 www.ct-yankee.com
    23. 23. The Value-Adding "Bang," Continued• In a factory, the value-adding "Bang!" takes place when, for example, a stamping machine makes contact with the part. • All other time, such as waiting, transportation, and setup, is non- value-adding. • The proportion of value-adding to non-value-adding time may in fact be similar to that in a typical golf game! © 2009, Levinson Productivity Systems, P.C. 23 www.ct-yankee.com
    24. 24. Cycle Time Accounting• The basic idea is to attach a "stopwatch" to each job (or sample jobs) to determine exactly how the work spends its time. • In practice, the production control system should handle this. • The Gantt Chart may be modified to display the times by category. © 2009, Levinson Productivity Systems, P.C. 24 www.ct-yankee.com
    25. 25. Cycle Time Accounting, Continued• The clock starts the instant a job begins an activity and stops the instant it ends. • If the work waits for a tool or operator, this is a delay and not processing. • When work is gated out of an operation, it usually waits for transportation (delay) or is in transit (transportation). • Placement of the work in the tool is handling, not processing. © 2009, Levinson Productivity Systems, P.C. 25 www.ct-yankee.com
    26. 26. Gantt Chart Modification WORKSTATION 1 Waiting for operator Waiting for setup MachiningWaiting to form transfer batch Waiting for cart Transportation Waiting for tool (unbatching) WORKSTATION 2 MachiningWaiting to form transfer batch Waiting for cart Transportation 0 50 100 150 200 250 Only machining is value-adding time. This Gantt format of the cycle time makes non-value-adding time highly visible. © 2009, Levinson Productivity Systems, P.C. 26 www.ct-yankee.com
    27. 27. Waste: Summary• This section has shown how wastes of material, labor, and cycle time can hide in plain view.• Cycle time reduction can yield decisive competitive advantages, including make to order as opposed to make to forecast.• The next section will cover "Green" manufacturing. © 2009, Levinson Productivity Systems, P.C. 27 www.ct-yankee.com
    28. 28. Green is the Color of Money"…we will not so lightly wastematerial simply because wecan reclaim it—for salvageinvolves labour. The ideal is tohave nothing to salvage." —Henry Ford, Today and Tomorrow © 2009, Levinson Productivity Systems, P.C. 28 www.ct-yankee.com
    29. 29. The Birth of Green Manufacturing• Henry Ford could probably have met ISO 14001 requirements in an era when he could have legally thrown into the river whatever wouldnt go up the smokestack. • "He perfected new processes— the very smoke which had once poured from his chimneys was now made into automobile parts." Upton Sinclair, The Flivver King © 2009, Levinson Productivity Systems, P.C. 29 www.ct-yankee.com
    30. 30. Fords Green Manufacturing• Recovery and reuse of solvents• Distillation of waste wood for chemicals yielded enough money to pay 2000 workers. • Kingsford charcoal• Design of parts and processes to minimize machining waste• Reuse of packaging materials• Slag  paving materials and cement © 2009, Levinson Productivity Systems, P.C. 30 www.ct-yankee.com
    31. 31. Identification of Material and Energy Wastes• Material and energy waste can easily be built into a job.• Elimination of these wastes is central to "green" manufacturing and the ISO 14001 standard and, more importantly, very profitable.• We cannot, however, remove this waste before we identify it. © 2009, Levinson Productivity Systems, P.C. 31 www.ct-yankee.com
    32. 32. Control Surface Approach Material Inputs Material Outputs Process Energy Inputs Energy Outputs Control SurfaceThe material and energy balance isstandard practice for chemical processdesign. Outputs must equal inputs. Material outputs, for example, include everything that is thrown away, as well as the product. © 2009, Levinson Productivity Systems, P.C. 32 www.ct-yankee.com
    33. 33. Example: Spin Coating of Semiconductor Wafers Photoresist Wafers and Photoresist Process Coated Wafers Control SurfaceThe control surface analysisforces the waste to becomevisible, and causes people toask if there is a practical way toavoid it. © 2009, Levinson Productivity Systems, P.C. 33 www.ct-yankee.com
    34. 34. Example: Machining Metal billets Metal turnings and cutting and cutting fluid fluid Process Product Control SurfaceThe waste that is usually takenfor granted (metal chips andused cutting fluid) suggestsproduct or process redesign toreduce machining. © 2009, Levinson Productivity Systems, P.C. 34 www.ct-yankee.com
    35. 35. Discussion Question• Do you know of processes in which materials are thrown away (or recycled)? • If so, can the process or product be redesigned to reduce the waste? • Could the discarded materials be reused or recycled in some manner?• Can energy-intensive processes be made more efficient? © 2009, Levinson Productivity Systems, P.C. 35 www.ct-yankee.com
    36. 36. Lean Manufacturing Techniques Some principles and activities for lean manufacturing© 2009, Levinson Productivity Systems, P.C. 36 www.ct-yankee.com
    37. 37. Design for Manufacture• Synergistic with ISO 9000:2000 7.3, Design Control.• Involve manufacturing, customers, and other related departments in the design process. • Dont "throw the design over the wall" to manufacturing. The design must be manufacturable by the equipment in the factory. • Process capability: Design for Six Sigma © 2009, Levinson Productivity Systems, P.C. 37 www.ct-yankee.com
    38. 38. 5S-CANDO• 5S-CANDO, a systematic approach to cleaning and organizing the workplace, suppresses friction.• Seiri = Clearing up • "When in doubt, throw it out."• Seitori = Organizing (Arranging) • "A place for everything and everything in its place."• Seiso = Cleaning (Neatness)• Shitsuke = Discipline• Seiketsu = Standardization (Ongoing improvement, holding the gains) © 2009, Levinson Productivity Systems, P.C. 38 www.ct-yankee.com
    39. 39. Visual Controls• "Basically, the intent is to make the status of the operation clearly visible to anyone observing that operation" (Wayne Smith, 1998).• Visual controls are like a nervous system (Suzaki, 1987)• "Visual controls identify waste, abnormalities, or departures from standards" (Caravaggio, in Levinson, 1998) © 2009, Levinson Productivity Systems, P.C. 39 www.ct-yankee.com
    40. 40. Examples of Visual Controls• 5S-CANDO (arranging)• Jidoka or autonomation • Andon lights and buzzers announce tool status.• JIT: kanban squares, cards, containers. • Lines on the floor to mark reorder points• Safety: colored labels for materials• Statistical process control charts: should be clearly visible. © 2009, Levinson Productivity Systems, P.C. 40 www.ct-yankee.com
    41. 41. Visible Management• A visible production management system should indicate: (1)What the operation is trying to make • Measure the takt rate, or desired production per unit time. (2)What the operation is achieving (3)What problems hinder the production goal?• American workplaces used such controls prior to 1911. © 2009, Levinson Productivity Systems, P.C. 41 www.ct-yankee.com
    42. 42. "Pull" Production Control Systems• Just-In-Time (JIT) • First described by Henry Ford in My Life and Work (1922)• Kanban• Drum-Buffer-Rope (Goldratt)• All reduce inventory and its carrying costs, along with cycle time.• Tie-in with small lot and single unit processing © 2009, Levinson Productivity Systems, P.C. 42 www.ct-yankee.com
    43. 43. Drawbacks of Batch Processing• Running equipment (e.g. a heat treatment furnace) at less than full load wastes capacity. Waiting for a full load wastes time. • Waste of capacity is not a problem except at a constraint operation (Goldratts Theory of Constraints).• Batches introduce waiting time when they arrive at single-unit tools en masse. • Batch-and-queue forces extra cycle time (waiting) into the operation. © 2009, Levinson Productivity Systems, P.C. 43 www.ct-yankee.com
    44. 44. Single-Unit Processing Reduces Cycle Time• Wayne Smith (1998) defines manufacturing cycle efficiency as (Value-adding time)÷(Total cycle time) • This is often less than 1 percent. • Remember Masaaki Imais "value-adding Bang!" concept • Golf analogy: the club head is in contact with the ball for less than two seconds in a typical game. © 2009, Levinson Productivity Systems, P.C. 44 www.ct-yankee.com
    45. 45. Single-Minute Exchange of Die (SMED)• Left column: non-value-addingsetup and load/unload activities• Right column: value-addingmachining activities © 2009, Levinson Productivity Systems, P.C. 45 www.ct-yankee.com
    46. 46. SMED Principles and Benefits• Internal setup requires the tool to stop. • Reduce internal setup time, or convert internal to external setup.• External setup can be performed while the tool is working on another job.• SMED reduces cycle time by facilitating smaller lot sizes, mixed model production, and/ or single-unit flow © 2009, Levinson Productivity Systems, P.C. 46 www.ct-yankee.com
    47. 47. Error-Proofing (Poka-Yoke)• Error-proofing makes it difficult or impossible to do the job the wrong way.• Slots and keys, for example, prevent parts from being assembled the wrong way.• Process recipes and data entry also can be error-proofed. © 2009, Levinson Productivity Systems, P.C. 47 www.ct-yankee.com
    48. 48. Summary and Conclusion Most of lean manufacturing is common sense!© 2009, Levinson Productivity Systems, P.C. 48 www.ct-yankee.com
    49. 49. Summary• Business activities can contain enormous quantities of built-in waste (muda, friction).• The greatest obstacle to the wastes removal is usually failure to recognize it.• Lean manufacturing includes techniques for recognition and removal of the waste.• This delivers an overwhelming competitive advantage. © 2009, Levinson Productivity Systems, P.C. 49 www.ct-yankee.com

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