Going Lean An Introduction to Lean Principles

Purpose Introduce Lean Manufacturing Define waste and value Communicate the types of waste Introduce basic “lean tools” Agree on a path forward

Introduce Lean Manufacturing

Define waste and value

Communicate the types of waste

Introduce basic “lean tools”

Agree on a path forward

What is Lean Manufacturing? The relentless identification and elimination of waste (non-value added activities and resources) that get in the way of providing customers exactly what they need when they need it Optimizing the flow of value in our Value Stream to match customer demand

The relentless identification and elimination of waste (non-value added activities and resources) that get in the way of providing customers exactly what they need when they need it

Optimizing the flow of value in our Value Stream to match customer demand

How Will Lean Help Us? Reduce Lead Time to our customers by eliminating waste from our system See things differently than we do today Optimally utilize resources while meeting our customer’s needs Enhance our process flow Improve quality and lower costs

Reduce Lead Time to our customers by eliminating waste from our system

See things differently than we do today

Optimally utilize resources while meeting our customer’s needs

Enhance our process flow

Improve quality and lower costs

What is Waste? Consuming more resources than are necessary to produce the goods, or service, that the customer wants Pure Waste : Actions that could be stopped without effecting the customer Incidental Waste : Actions that need to be done based on how the current system operates but do not add value

Consuming more resources than are necessary to produce the goods, or service, that the customer wants

Pure Waste : Actions that could be stopped without effecting the customer

Incidental Waste : Actions that need to be done based on how the current system operates but do not add value

Waste – The Simple Part … Being Able to See IT! The Real Challenge … Knowing How to Properly Remove IT!

Waste – The Simple Part …

Being Able to See IT!

Types of Waste We’d See In Our Cell Over Production Inventory Waiting Transportation Motion Over Processing Quality / Defects People’s Skills

Over Production

Inventory

Waiting

Transportation

Motion

Over Processing

Quality / Defects

People’s Skills

Overproduction - Supplying the process with more than is needed to meet order requirements, sooner and faster than it is needed, causes almost all other types of waste Inventory – Raw materials, work-in-progress, finished goods; extra inventory is used to hide other wastes

Overproduction - Supplying the process with more than is needed to meet order requirements, sooner and faster than it is needed, causes almost all other types of waste

Inventory – Raw materials, work-in-progress, finished goods; extra inventory is used to hide other wastes

Inventory Hides Waste Sea of Inventory Long Transportation Communication Problems Machine Downtime Employee Availability Poor Scheduling Quality Problems Line Imbalance Long Setups Supplier issues House Keeping Employee Availability Finished Goods Raw Materials

Reducing Inventory Uncovers Opportunities to Improve Opportunities Converted into Cash!

Walking without working; searching for tools, materials or information; reaching, bending or unnecessary motion due to poor housekeeping or workplace layout Motion Double or triple handling, moving in and out of storage areas and warehouses, poor layouts, poor housekeeping Transportation Watching machines run or cycle, waiting for parts, instructions, approval, information, maintenance or decisions Waiting

A source of labor only, not seen as true process experts; do not involve in finding solutions People’s Skills Defective or scrap materials, OOS control processes, low yield, incorrect schedules, engineering documents or information Defects Repair or rework steps, extra setup steps, over-specification of the process, extra processing steps Process

5 Lean Principles make up the Lean Strategy for Our Cell Specify value Map the flow of value Make value flow Pull from the customer Seek perfection

Specify value

Map the flow of value

Make value flow

Pull from the customer

Seek perfection

1. Specify Value for Our Customer(s) Providing the right product, at the right time, in the right quantity, at the right quality, at the right price, in the right place in accordance to the customers requirements Usually value added steps lead to a transformation of the material from one form to another which gets the product closer to the customer’s specifications

Providing the right product, at the right time, in the right quantity, at the right quality, at the right price, in the right place in accordance to the customers requirements

Usually value added steps lead to a transformation of the material from one form to another which gets the product closer to the customer’s specifications

A value stream is all of the value-adding activity AND all of the non-value adding activity (pure waste and incidental waste) required to provide a product/service to a customer 2. Map the Flow of Value in Our Cell Process A Process B Process C Raw Material Customer Finished Product Value Stream

3. Make Value Flow in Our Cell Continuous Flow - Make One - Move One Batch Processing How long to make a pack of 10 units? How long to make a pack of 10 units?

4. Establish Pull from Our Cell’s Customer(s) Okay! One more please! Customer Supplier

5. Seek Perfection in Our Cell PDCA

Lean Tools

Hoshin Plan A planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision. Enables everyone to ‘see’ where we’re going and our plans to get there Build plan and strategies as a team Shared responsibility for getting results Vision Key Result Areas Key Result Measures Key Strategies

A planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision.

Enables everyone to ‘see’ where we’re going and our plans to get there

Build plan and strategies as a team

Shared responsibility for getting results

5S Focuses on effective workplace organization and standardization it allows us to easily spot variation from standard operating conditions. Cleaner, safer work environment Organized, user friendly workstations Open up space and reduce clutter

Focuses on effective workplace organization and standardization it allows us to easily spot variation from standard operating conditions.

Cleaner, safer work environment

Organized, user friendly workstations

Open up space and reduce clutter

Total Productive Maintenance Shifts basic maintenance work to operators, freeing up maintenance personnel to work on planned maintenance or equipment improvements. Workers have ownership of the machine & process Maximize equipment effectiveness Increase employee skill set Reduced manufacturing costs through continuous monitoring Improve Reliability & Operability Defect Detection & Removal Defect Prevention Defect Awareness Improved Equipment Effectiveness Maintenance Skills Development Autonomous Maintenance Planned Maintenance Maintenance Reliability

Shifts basic maintenance work to operators, freeing up maintenance personnel to work on planned maintenance or equipment improvements.

Workers have ownership of the machine & process

Maximize equipment effectiveness

Increase employee skill set

Reduced manufacturing costs through continuous monitoring

Visual Factory Visual elements on the production floor allow everyone to “know the score” and they make out of standard situations immediately obvious. Enables everyone to ‘see’ how we’re performing Helps highlight problems, or variances from standard Encourages employee involvement and open discussions

Visual elements on the production floor allow everyone to “know the score” and they make out of standard situations immediately obvious.

Enables everyone to ‘see’ how we’re performing

Helps highlight problems, or variances from standard

Encourages employee involvement and open discussions

Workforce Flexibility The ability of the workforce to “flex” to other jobs as demand fluctuates within the system, and the efforts the organization undertakes to ensure this occurs. Improve worker skill set Maximize organizational flexibility Focused training and development plans Allow the ability to flex to our customer’s demands

The ability of the workforce to “flex” to other jobs as demand fluctuates within the system, and the efforts the organization undertakes to ensure this occurs.

Improve worker skill set

Maximize organizational flexibility

Focused training and development plans

Allow the ability to flex to our customer’s demands

Standardized Work A step-by-step description of work activity used every time by everyone to safely complete a task based on best known practices. Operators involved in determining best practices Minimizes and highlights process variability Everyone learns best practice 1 3 2 4 5 6 Proper PPE must be worn at all times. Standard Work Sheet

A step-by-step description of work activity used every time by everyone to safely complete a task based on best known practices.

Operators involved in determining best practices

Minimizes and highlights process variability

Everyone learns best practice

Kanban A visual system that easily communicates the need for parts to be either replenished or consumed. Designed to improve material flow and control inventory levels. Workers produce product based on actual usage Minimizes inventory by tying production to consumption X X X (make one move one)

A visual system that easily communicates the need for parts to be either replenished or consumed. Designed to improve material flow and control inventory levels.

Workers produce product based on actual usage

Minimizes inventory by tying production to consumption

Quick Changeover Changeover is defined as the time elapsed between when the last good piece of product A comes off and the first good piece of product B starts. Improve repeatability through standardized processes Improved flow of material Reduction in inventory Standardize expectations

Changeover is defined as the time elapsed between when the last good piece of product A comes off and the first good piece of product B starts.

Improve repeatability through standardized processes

Improved flow of material

Reduction in inventory

Standardize expectations

Zero Defect Quality The principle that defects are prevented by controlling the performance of a process so that it cannot produce defects through mistake proofing and failsafe methods. Improved quality and customer satisfaction Solutions at the source – employees aid in problem solving and in developing creative, more effective corrective actions

The principle that defects are prevented by controlling the performance of a process so that it cannot produce defects through mistake proofing and failsafe methods.

Improved quality and customer satisfaction

Solutions at the source – employees aid in problem solving and in developing creative, more effective corrective actions

Kaizen A system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made. Continuous small improvements Changes are implemented quickly Everyone gets involved

A system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made.

Continuous small improvements

Changes are implemented quickly

Everyone gets involved

Recap

Value Defined Value-Added Activities Transforms or shapes material or information Customer wants it Done right the first time Incidental Waste No value created but required by current technology No value created but required by current thinking No value created but required by process limitations No value created but required by current process Pure Waste Consume resources but creates no value for the customer Could be stopped and it would be invisible to the customer

Value-Added Activities

Transforms or shapes material or information

Customer wants it

Done right the first time

Incidental Waste

No value created but required by current technology

No value created but required by current thinking

No value created but required by process limitations

No value created but required by current process

Pure Waste

Consume resources but creates no value for the customer

Could be stopped and it would be invisible to the customer

Lean Emphasis Resource distribution Opportunity for improvement by reducing waste and creating additional value Value Waste Initial Process Value Waste General Process Reduction Waste and Value Both Decrease Waste Only Reduction Value Waste Target & Reduce Waste Maintain Value Value Maintained Resources Decrease Value Creation Value Waste Apply Resources to Create More Value Value Increased Resources Focused

How Do We Succeed with Lean? As a team – open minded, supportive Understand the concepts and accept all aspects of the lean process, including those that may cause undesirable effect in the short term Aligned focus from the top to the bottom Effectively use lean methodologies Carefully plan implementation to remove waste Allocate the proper resources Becoming truly lean is a journey and will not be made without some discomfort

As a team – open minded, supportive

Understand the concepts and accept all aspects of the lean process, including those that may cause undesirable effect in the short term

Aligned focus from the top to the bottom

Effectively use lean methodologies

Carefully plan implementation to remove waste

Allocate the proper resources

Becoming truly lean is a journey and will not be made without some discomfort

Expected Lean Results Costs Defects (99%) Inventory (10 fold) Lead Time (90%) Machine Downtime Space (50%) Capacity Customer Responsiveness Efficiency Employee Satisfaction Flexibility – Demand Flux

Resources Internally John Schwendy, Darrell Bryant, Dennis Dempsey and Harold Philbrick Lewis salary personnel trained Externally CITEC – training more people in 2008 Jim Myers – consulting throughout process

Internally

John Schwendy, Darrell Bryant, Dennis Dempsey and Harold Philbrick

Lewis salary personnel trained

Externally

CITEC – training more people in 2008

Jim Myers – consulting throughout process

Attitude is Critical “ If you think you can or you think you can’t. You’re Right.” Henry Ford

“ If you think you can or you think you can’t. You’re Right.” Henry Ford