Lean 101, Introduction to Lean

1. Lean Concepts Inc.Establishing World Class Manufacturing Practices (Please Turn Off or Silence Cell Phones) John Veatch Lean Concepts Inc. 17710 Willowcreek Way Westfield, IN 46074 johnveatch@lean-concepts.com All Material Herein © 1998 Lean Concepts Inc. Revised 2010 1

2. Lean 101 John Veatch Lean Concepts Inc. 17710 Willow Creek Way Westfield, In 46074 johnveatch@lean-concepts.com 2

4. History

5. Need for Change

6. Lean Overview

8. A Chronology of Lean Eli Whitney 1799 Part Standardization Frederick W. Taylor 1890 Time Study Henry Ford 1910 Mass Production W. Edwards Deming 1950 SPC/14 Pts & 7 Sins Joseph Juran 1952 TQM Taiichi Ohno 1950 - 1972 JIT/TPS

9. Change 6

11. Pull Process

12. Near -zero Idle Inventory

13. Synchronized Feeder Processes

14. Prevent Quality Problems

15. Problems are Made Obvious

17. Push Process

18. Excessive Idle Inventory

19. Remote Subassemblies

20. Quality Problems are Hidden

22. Just In Time Producing just what is needed, when it is needed, in the amount needed, with the minimum material, equipment, labor, and space.

23. JIT Principles Create flow production Establish “TAKT” time Incorporate pull production

25. Small and inexpensive equipment

26. One piece flow production

27. Multi-process handling workers

28. Easy moving/standing operations

29. U Cell Layout, counter clockwise

30. Production paced to “Takt” time

32. 3 Elements “Stop the Line” authority for workers; find the root cause of problems Machines can detect abnormalities; only one defect can be made Separate human from machine work; multi-process handling Jidoka

33. Production Leveling The process of adapting production to variable demand so as to utilize minimum material, labor, equipment, and space Results in Cost Reduction!!

34. Kanban is a “Pull System” which was developed by Toyota to encourage rapid response to the next process (customer) in terms of requirements and changes in market demand Reduction of inventory and cost are the “Result” of Kanban, not the Purpose Kanban highlights opportunities to Kaizen the process Kanban Philosophy

35. Prevents waste created by overproduction Promotes small lot size production (less storage space) Promotes reduced lead times Visualizes problems for further Kaizen Communicates production information (visual control) Benefits of Kanban

36. Value Added Activity An activity that transforms or shapes raw material or information to meet customer requirements. Value Added Test: The customer must recognize the value. (Be willing to pay for it) The product must physically change during the process. The activity must be done right the first time.

37. Non Value Added Activity Any activity that consumes time, resources, (manpower, material, machinery), and /or space, but does not add value to the product or service itself. Activities that do not meet all of the three test rules. Some non-value added work may be necessary.

38. Current State/Future State Learning to See

39. What is Value Stream Mapping? A Value Stream is all the actions (both value added and non-value added), currently required to bring a product through the main flows essential to every product. The production flow from raw material into the arms of the customer. The design flow from concept to launch.

40. Standardized Work Objectives To establish and clarify the guidelines for manufacturing QUALITY, QUANTITY, COST, MANNING, INVENTORY, AND SAFETY Provides a tool for Kaizen YOU CANNOT MANAGE WHAT YOU DO NOT MEASURE WHERE THERE IS NO STANDARD, THERE CAN BE NO KAIZEN

42. “Takt” time / Cycle time

43. Work Sequence

44. Standard WIP

45. Four Tools

46. Time Observation

47. Process Capacity

48. Standard Work Combination Sheet

50. Symptoms of Traditional Companies Trash on the floor People doing troublesome work Too much Inventory Parts on the Floor Dirty bathrooms Information not shared

51. Symptoms of World-Class Companies Measurement Scoreboards Use of Charts, Graphs, Pictures Mechanism to Expose Problems Use of Standard Procedures Absenteeism Declining Number of Suggestions Housekeeping and Organization Top Management on Shop Floor Top Management’s Participation Information Shared Meetings on the Floor

52. Workplace Organization A work area where anyone can enter and in 5 minutes or less know the Who, What, When, Where, How, and Why of the Work area WITHOUT TALKING TO ANYONE OR OPENING A BOOK OR TURNING ON A COMPUTER

53. Visual Management Visual Management Types Production Analysis Boards Quality Measurables DPPM RPPM Set-up Times Standardized Work Tables Kaizen Work Sheets / 30 Day Goals Delivery Performance Safety / Attendance

54. Tools to Organize the Workplace 5s Sort Set Shine Standardize cleanup Sustain Visual Management

55. Sort-The separation of the necessary items from the unnecessary items and removing the unnecessary items from the work area. Sort S1

56. Set S2 Organize shop floor items and information with the physical flow of work in order to accelerate the flow. Better Organization Better Work Habits Improved Productivity Reduce Lead Time

57. Shine S3 Clean both the Internal and External surfaces Use Cleaning as an Inspection Establish a Regular Cleaning Routine Cleaning for Throughput A clean work area enhances equipment utilization, quality, safety, pride Integrate it into the PM process.

58. Locate All Items Based on the “Can-Be” Map Put Borders in Place for: Traffic Moveable and Non-Moveable Floor Items Walkways/Work Areas Work Surface Items Give Each Item a Home Address Give Each Item an Identification Label Standardize S4

59. 5s Check List 5s Audit Teams The 5s Cabinet Management Reviews Visual Management Sustain S5

61. O verproduction

62. M otion

63. D efects

64. W aiting

65. I nventory

66. P rocessing34

67. Waste of Overproduction Extra Inventory Extra Space Extra Handling Extra Machinery Extra Overhead Extra Paperwork Extra Defects

68. Sea of Inventory Line Long Transportation Housekeeping Lack of Balance Communication Problems Poor Scheduling Long Setup Time Absenteeism Quality Delivery Supplier Problems Breakdown Machine Excess Inventory Hides Problems

69. Review John Veatch Lean Concepts Inc. 17710 Willowcreek Way Westfield, IN 46074 johnveatch@lean-concepts.com

70. 38 Lean Concepts, Inc THANKS YOU for your attendance, attention, and participation John A Veatch 888-314-3684 johnveatch@lean-concepts.com www.lean-concepts.com