The Beginners Guide to Lean

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by Daniel T Jones of the Lean Enterprise Academy shown at the Manufacture Live in Telford on 25th September 2003

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The Beginners Guide to Lean

  1. 1. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org THE BEGINNER’S GUIDE TO LEAN Professor Daniel T Jones Lean Enterprise Academy
  2. 2. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Who am I? • Writer – Machine and Lean Thinking books • Researcher – on how to do lean everywhere! • Founder of the non-profit Lean Enterprise Academy • Publish workbooks on the building blocks of lean, supported by advanced level workshops – Lean Lexicon, Learning to See, Seeing the Whole etc – Creating Continuous Flow, Making Material Flow, Product Families and Levelled Production, Creating Levelled Pull etc – Managing a Lean Transformation, Policy Management, Value Stream Leadership etc • Mentor to firms experimenting at the lean frontier • Story-teller via my monthly email letter! Sign up!
  3. 3. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Why Lean? • In an increasingly competitive world it is doubtful you will survive without it! • What started in automotive is rapidly spreading to every other sector • Finally we are gaining momentum in the UK – Foresight 2020, Manufacturing Strategy, Industry Forum, MAS • It is not a fad that will die away tomorrow • This is your chance to get on board!
  4. 4. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Early Steps • The Wake up Call – Can I survive? How far behind am I? • Clearing the decks – 5S and harvesting the low hanging fruit! • Falling in love with the tools – SMED, Kanban, TPM, 6Sigma etc. • Involving the shop floor in learning to see waste in continuous improvement teams • But this is just the start!
  5. 5. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Toyota’s Lean Strategy “Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.” And Toyota aims to be No 1 by 2010!
  6. 6. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Lean Business System • Lean is a business system focused on managing processes, and improving them by compressing time, rather than sweating assets • Every business is a collection of processes – primary processes that create value - and secondary processes that support them • Processes are sequences of steps that must be carried out to create value for customers and managed as a whole, not separately
  7. 7. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Next Steps • We must learn to see the process! • We must learn how to enable the product to flow quickly through the process • We must learn to trigger this flow at the pull of the customer • We must learn how to level the requirements on production • And someone has to take responsibility for reconfiguring this value stream!
  8. 8. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Current State Value Stream ShippingAssembly 2Assembly 1S. Weld 2S. Weld 1Stamping Production Control MRP Weekly Schedule Daily Ship Schedule State Street Assembly Forecast Daily Order Daily Michigan Steel Forecast Weekly Order 2 x Week II I I I I Production Lead Time = 23.5 days Value Added Time = 184 secs
  9. 9. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Current State Value Stream ShippingAssembly 2Assembly 1S. Weld 2S. Weld 1Stamping Production Control MRP Weekly Schedule Daily Ship Schedule State Street Assembly Forecast Daily Order Daily Michigan Steel Forecast Weekly Order 2 x Week II I I I I Does demandDoes demand vary a lot?vary a lot? How can youHow can you produce toproduce to demand?demand? Production Lead Time = 23.5 days Value Added Time = 184 secs Is thisIs this performanceperformance acceptable?acceptable? Why all theseWhy all these inventories?inventories? How could youHow could you create flow?create flow?
  10. 10. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Key Questions • What is the rate of demand – and hence the rhythm of production? • How much does demand vary – and how much should you flex or buffer? • How and where should you filter and level orders to release steady instructions to what point in production? • Where and how can you combine operations to create continuous flow? • Where will you need to pull to link disconnected operations to make just what is needed, and how? • How can you increase the frequency of production to make smaller batches of each product in line with demand? • What process and equipment improvements will be necessary to achieve and sustain the above? • Who will manage the transformation of this value stream and what support will they need from the functions?
  11. 11. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Future State Value Stream Production Lead Time = 4.5 days Value Added Time = 166 secs Shipping Production Control State Street Assembly Forecast Daily Order Daily Daily Order Weld and Assembly CellStamping Michigan Steel Forecast Daily Order Daily
  12. 12. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Implementation Plan Product Value Person Family Stream Measurable Monthly Schedule in Business Objective Goal Charge Objective 1 2 3 4 5 6 7 8 9 Improve Profitability In Steering Brackets V S Manager Jim Date 03/02/2003 Product Family Steering Brackets Pacemaker *Continuous flow from weld to assembly Zero WIP John *Kaizen to 168 secs < 168 s/t Dave *Eliminate weld changeover < 30 sec c/o Sam *Uptime weld #2 100% Mike *Finished goods pull 2 days FG Sue *Materials handler Pull Schedule James routes Stamping *Stamping Pull 1 day inventory Fred + pull schedule *Stamping changeover batch size Tim 300/160 pieces c/o < 10 min Supplier *Pull coils with daily delivery Graham daily deliveryr < 1.5 days of coils at press
  13. 13. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Further steps • Unscramble your product families so you can create flow and pull across every value stream • Do the same for all your office processes – the gains are even bigger! • Work with your suppliers and customers to compress the whole value stream • Build what you learnt into the design of the next generation product and tooling
  14. 14. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Current State 44d 55m 73 8 Steps Time Steel DELTA STEEL Stamping GAMMA STAMPING Warehouse Cross Dock Wipers BETA WIPERS Assembly Dist. Centre Cross Dock ALPHA MOTORS Amplification F E D C B A % 40 30 20 10 0 F E D C B A Quality & Delivery ppm 2000 1500 1000 500 0 F E C A % 10 5 0
  15. 15. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Amplification F E D C B A % 40 30 20 10 0 Quality & Delivery AssemblyWipersStamping Steel Dist. Centre 16d 55m 39 8 Steps Time ppm 2000 1500 1000 500 0 F E C A % 10 5 0 Future State 2 Flow and Pull between Plants F E D C B A DELTA STEEL GAMMA STAMPING BETA WIPERS ALPHA MOTORS
  16. 16. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Ideal State Value Stream Compression Amplification F E D C B A % 40 30 20 10 0 Quality & Delivery ppm 2000 1500 1000 500 0 F E C A % 10 5 0 Dist. Centre 3d 55m 30 8 Steps Time Steel EPSILON STEEL Assembly ALPHA MOTORSSUPPLIER PARK Wiper Cell Stamping Cell F E D C B A
  17. 17. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Current to Ideal State Box Score Current Future Future Ideal State State 1 State 2 State Total Lead Time 44.3 days 23.9 days 15.8 days 2.8 days Value Creating to Total Time 0.08% 0.16% 0.6% 1.5% Value Creating to Total Steps 11% 15% 21% 27% Inventory Turns 5 9 14 79 Quality Screen* 400 200 50 2.5 Delivery Screen* 8 8 3 1 Demand Amplification* 7 7 5 1 Travel Distance 5,300 miles 5,300 miles 4,300 miles 525 miles * Ratios of upstream over downstream scores
  18. 18. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Where are the gains? • Much improved quality and on time delivery - which customers expect today! • Lower inventories - but watch the balance sheet! • Freed up people, machines and space - which you are still paying for? • Lean is a great opportunity to grow your business without extra resources! • Learning by doing it is the only way!
  19. 19. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org Lean Enterprise Academy
  20. 20. The Manufacturer Live - Telford - 25 September 2003 www.leanuk.org THE BEGINNER’S GUIDE TO LEAN Professor Daniel T Jones Lean Enterprise Academy

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