Lean Systems by  Sashi.Prabhu
Lean Systems The ability to make  exactly   what the  customer  wants as they  order  it.
Benefits:  Tangible  &  Intangible <ul><li>Improved Teamwork </li></ul><ul><li>Simpler Scheduling </li></ul><ul><li>Greate...
Time & Cost Relationship “ The longer an article is in the process of manufacture and the more it is moved about,  the gre...
History of Lean <ul><li>1910-1928  Ford Production Systems </li></ul><ul><li>1942-46  Kaiser’s Liberty Ships  </li></ul><u...
“Lean Thinking” <ul><li>A Continuous Improvement Approach focused on  eliminating waste  in the  entire operation </li></u...
Definition of Waste <ul><li>Anything More Than the  </li></ul><ul><li>Absolute Minimum Resources of  </li></ul><ul><li>Mat...
Value Added  vs. Non-value Added <ul><li>Value Added transforms raw material, components and  information into sellable it...
Total Order Lead Time Breakdown Value Added Ratio   = 0  1  2  3  4  5 Elapsed  Time Value Added Time Elapsed Time VA NVA
Value Added Ratio Calculation Value Added Ratio   = 5 VA NVA 1.1 5.3 = 20.7 % 0  1  2  3  4  5 Elapsed  Time
The Eight Process Wastes <ul><li>Overproduction-Large  Batches </li></ul><ul><li>Extra  Transportation   </li></ul><ul><li...
Eight Service Industry Wastes <ul><li>Errors  in documents </li></ul><ul><li>Transport  of documents </li></ul><ul><li>Doi...
The Lean Toolbox
5 S’s Campaign <ul><li>Sort   </li></ul><ul><li>Systematize   </li></ul><ul><li>Spic & Span </li></ul><ul><li>Standardize ...
With an Organized Workplace : <ul><li>Defects  are reduced </li></ul><ul><li>Safety  is improved </li></ul><ul><li>Workers...
Quick Changeover Traditional setup and large batches Setup Run Quick change and small batches Externalized & Streamlined T...
Why Reduce Set-ups? Remember:  nothing is being produced! So, set-up time is   Non Value Added Setups need to be  eliminat...
“Pull” Production versus “Push” Push: Schedule-based Pull: Consumption-based
Pull   Systems - Advantages <ul><li>Faster  response to the customer </li></ul><ul><li>Easier  scheduling, inventory and c...
Total Productive Maintenance <ul><li>A systematic approach to eliminating  unscheduled  equipment downtime  </li></ul><ul>...
Overall Equipment Effectiveness DOWNTIME Breakdowns Changeovers Adjustments SPEED Stoppages Slow-downs DEFECTS Process Def...
Types of Poka Yoke Devices <ul><li>Prevention </li></ul><ul><ul><li>The process is designed so that it is impossible to ma...
Summary:  Poka-Yoke… <ul><li>Does  not   replace   a quality system, but it  is  used to  supplement   a quality system. <...
Functional Layout Interrupted product flow Unbalanced operations Large batches Longer time to complete Complex material ha...
Cellular Workplaces FG RM Includes Every Step Source Inspection Point of Use Storage Flexible Output Reduced Lot Size Simp...
Original Office Layout
Cellular Office Layout
Value Stream Mapping
Value Stream Map Supplier I  20 Days Driver 2/Month Daily Customer Assemble  C/T=15sec  C/O=15-50min  Uptime=100% Package ...
Future State Goals Reduce  non-value added  activities Reduce  lead time Reduce  inventory  (especially WIP) Increase  thr...
Keys to Success <ul><li>Keep things  simple </li></ul><ul><li>Focus on your  process   </li></ul><ul><li>Look for all type...
Share the mutual benefits of <ul><li>Decreasing </li></ul><ul><ul><li>Inventory and batch sizes </li></ul></ul><ul><ul><li...
Thanks very much
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37022309 lean-simple-solutions

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  • Describe… This represents a 20% ratio, nationally, the ratio is commonly 5-10 % depending upon which industry we’re analyzing. Next, let’s look at the Wastes that are clogging the arteries of the factory operations
  • Describe… This represents a 20% ratio, nationally, the ratio is commonly 5-10 % depending upon which industry we’re analyzing. Next, let’s look at the Wastes that are clogging the arteries of the factory operations
  • Overproduce—Slow down the machine, off the shelf (got to stock the shelf) Waiting—downtime, balance, changeover, Transport—physical relocation eliminates most if not all.
  • Now, Push is the alternative, but since we have that now, let’s discuss PULL PRODUCTION SYSTEMS
  • Overproduce—Slow down the machine, off the shelf (got to stock the shelf) Waiting—downtime, balance, changeover, Transport—physical relocation eliminates most if not all.
  • Slide - PUSH VS. PULL A concept or topic that is always mentioned as part of Lean or associated with Lean, is this idea of a Pull System. So now I’d like to talk a little about what we mean by a pull system versus a push system. I have a few slides to go over this push versus pull idea; however, I feel that this title page kind of explains it all. In push production you make large batches and push them through the place to the next process. In pull production, you pull a controlled amount of WIP through the process. The operations are physically linked. ASK: Can anyone here relate to this fellow here? (Reference the PUSH view)
  • Looks pretty well organized until we introduce the product into the mix…. CLK Now it looks about right— What do you see now that wasn’t apparent at first????
  • Okay, here&apos;s the equipment layout that a Cell Design Kaizen Team. A U-shaped flow cycles from the Raw Material (RM) through the 8 Work-stations to the Finished Goods (FG). The cell works in a counter-clockwise U-shaped flow The next step is to populate the cell with raw materials, components, drums of coolant &amp; cleaners. All in labeled containers. Now, we need access aisles all around the cell for material replenishment, equipment servicing and quicker changeovers. Main aisles on both ends of the cell allow for material flow and personnel flow between cells. We&apos;ve right-sized the material containers, so we eventually run out of raw materials and the green diamond represents a Kanban Post that will play a vital role in material replenishment Now, the blue bin runs empty--no more parts--what happens next???? This rack on the backside of the cell contains a second set of components in a second set of labeled and right-sized containers. So the operator simply walks the side-aisle to the rack, picks up a new container of parts and puts it in the work-station But how do we get it replenished again?? Put the empty labeled bin on the Kanban Post and the Material Clerk who circulates throughout the shop will take the empty back and refill it before the backup container can be emptied....
  • Okay, here&apos;s the equipment layout that a Cell Design Kaizen Team. A U-shaped flow cycles from the Raw Material (RM) through the 8 Work-stations to the Finished Goods (FG). The cell works in a counter-clockwise U-shaped flow The next step is to populate the cell with raw materials, components, drums of coolant &amp; cleaners. All in labeled containers. Now, we need access aisles all around the cell for material replenishment, equipment servicing and quicker changeovers. Main aisles on both ends of the cell allow for material flow and personnel flow between cells. We&apos;ve right-sized the material containers, so we eventually run out of raw materials and the green diamond represents a Kanban Post that will play a vital role in material replenishment Now, the blue bin runs empty--no more parts--what happens next???? This rack on the backside of the cell contains a second set of components in a second set of labeled and right-sized containers. So the operator simply walks the side-aisle to the rack, picks up a new container of parts and puts it in the work-station But how do we get it replenished again?? Put the empty labeled bin on the Kanban Post and the Material Clerk who circulates throughout the shop will take the empty back and refill it before the backup container can be emptied....
  • Okay, here&apos;s the equipment layout that a Cell Design Kaizen Team. A U-shaped flow cycles from the Raw Material (RM) through the 8 Work-stations to the Finished Goods (FG). The cell works in a counter-clockwise U-shaped flow The next step is to populate the cell with raw materials, components, drums of coolant &amp; cleaners. All in labeled containers. Now, we need access aisles all around the cell for material replenishment, equipment servicing and quicker changeovers. Main aisles on both ends of the cell allow for material flow and personnel flow between cells. We&apos;ve right-sized the material containers, so we eventually run out of raw materials and the green diamond represents a Kanban Post that will play a vital role in material replenishment Now, the blue bin runs empty--no more parts--what happens next???? This rack on the backside of the cell contains a second set of components in a second set of labeled and right-sized containers. So the operator simply walks the side-aisle to the rack, picks up a new container of parts and puts it in the work-station But how do we get it replenished again?? Put the empty labeled bin on the Kanban Post and the Material Clerk who circulates throughout the shop will take the empty back and refill it before the backup container can be emptied....
  • Now, Push is the alternative, but since we have that now, let’s discuss PULL PRODUCTION SYSTEMS
  • Current Demand = 200,000/yr = 833/day Available Time = 1 Shift = 433m = 25,800s Takt Time = Avail Time/#units/day = 25,800s/833 units = 31 sec
  • 37022309 lean-simple-solutions

    1. 1. Lean Systems by Sashi.Prabhu
    2. 2. Lean Systems The ability to make exactly what the customer wants as they order it.
    3. 3. Benefits: Tangible & Intangible <ul><li>Improved Teamwork </li></ul><ul><li>Simpler Scheduling </li></ul><ul><li>Greater Flexibility </li></ul><ul><li>Market Responsiveness </li></ul><ul><li>Increased Sales </li></ul>0 100 Lead Time Reduction Productivity Increase WIP Reduction Quality Improvement Space Utilization
    4. 4. Time & Cost Relationship “ The longer an article is in the process of manufacture and the more it is moved about, the greater its ultimate cost.” --Henry Ford, 1926
    5. 5. History of Lean <ul><li>1910-1928 Ford Production Systems </li></ul><ul><li>1942-46 Kaiser’s Liberty Ships </li></ul><ul><li>1970 Toyota Production System </li></ul><ul><li>1980 If Japan Can, Why Can’t We </li></ul><ul><li>1980 JIT, Cellular, TOC </li></ul><ul><li>1989 Machine That Changed the World </li></ul><ul><li>1995 Lean Enterprises </li></ul><ul><li>1998 Lean Service Organizations </li></ul>
    6. 6. “Lean Thinking” <ul><li>A Continuous Improvement Approach focused on eliminating waste in the entire operation </li></ul><ul><li>Breaking the status quo by making a series of small immediate changes using conventional wisdom ( common sense ) </li></ul><ul><li>Involvement of stakeholders in the process </li></ul><ul><li>Measuring the results of the changes - </li></ul>
    7. 7. Definition of Waste <ul><li>Anything More Than the </li></ul><ul><li>Absolute Minimum Resources of </li></ul><ul><li>Material, Equipment and Personnel to </li></ul><ul><li>Add Value for the Customer. </li></ul>
    8. 8. Value Added vs. Non-value Added <ul><li>Value Added transforms raw material, components and information into sellable items </li></ul><ul><li>Non-Value Added consumes resources but does not contribute directly to the value of sellable items. </li></ul><ul><li>These should be eliminated, integrated, or simplified </li></ul>
    9. 9. Total Order Lead Time Breakdown Value Added Ratio = 0 1 2 3 4 5 Elapsed Time Value Added Time Elapsed Time VA NVA
    10. 10. Value Added Ratio Calculation Value Added Ratio = 5 VA NVA 1.1 5.3 = 20.7 % 0 1 2 3 4 5 Elapsed Time
    11. 11. The Eight Process Wastes <ul><li>Overproduction-Large Batches </li></ul><ul><li>Extra Transportation </li></ul><ul><li>Excess Inventory </li></ul><ul><li>Employees Waiting </li></ul><ul><li>NVA Processing </li></ul><ul><li>Excess Motion </li></ul><ul><li>Defects & Rework </li></ul><ul><li>Underutilized Brainpower </li></ul>
    12. 12. Eight Service Industry Wastes <ul><li>Errors in documents </li></ul><ul><li>Transport of documents </li></ul><ul><li>Doing unnecessary work not requested </li></ul><ul><li>Waiting for the next process step </li></ul><ul><li>Process of getting approvals </li></ul><ul><li>Unnecessary motions </li></ul><ul><li>Backlog in work queues </li></ul><ul><li>Underutilized employees </li></ul>
    13. 13. The Lean Toolbox
    14. 14. 5 S’s Campaign <ul><li>Sort </li></ul><ul><li>Systematize </li></ul><ul><li>Spic & Span </li></ul><ul><li>Standardize </li></ul><ul><li>Self –discipline. </li></ul>
    15. 15. With an Organized Workplace : <ul><li>Defects are reduced </li></ul><ul><li>Safety is improved </li></ul><ul><li>Workers are more efficient </li></ul><ul><li>Inventory is reduced </li></ul><ul><li>Maintenance is improved </li></ul><ul><li>Cleanup time is minimized - </li></ul>
    16. 16. Quick Changeover Traditional setup and large batches Setup Run Quick change and small batches Externalized & Streamlined Tasks
    17. 17. Why Reduce Set-ups? Remember: nothing is being produced! So, set-up time is Non Value Added Setups need to be eliminated, integrated, or simplified
    18. 18. “Pull” Production versus “Push” Push: Schedule-based Pull: Consumption-based
    19. 19. Pull Systems - Advantages <ul><li>Faster response to the customer </li></ul><ul><li>Easier scheduling, inventory and control </li></ul><ul><li>Reduced effort, space, cost and investment </li></ul><ul><li>But….. A different way of doing things </li></ul>
    20. 20. Total Productive Maintenance <ul><li>A systematic approach to eliminating unscheduled equipment downtime </li></ul><ul><li>Enlists the intelligence of the operators </li></ul><ul><li>Provides a structure for any company to: </li></ul><ul><ul><li>chart & analyze equipment issues </li></ul></ul><ul><ul><li>identify root causes of problems </li></ul></ul><ul><ul><li>implement permanent corrections </li></ul></ul>
    21. 21. Overall Equipment Effectiveness DOWNTIME Breakdowns Changeovers Adjustments SPEED Stoppages Slow-downs DEFECTS Process Defects Reduced Yields
    22. 22. Types of Poka Yoke Devices <ul><li>Prevention </li></ul><ul><ul><li>The process is designed so that it is impossible to make an error </li></ul></ul><ul><ul><li>Removes any need to correct a error </li></ul></ul><ul><li>Detection </li></ul><ul><ul><li>Signals the user an error has been made so the user can quickly correct the problem </li></ul></ul><ul><ul><li>Stops defects from reaching customer </li></ul></ul>
    23. 23. Summary: Poka-Yoke… <ul><li>Does not replace a quality system, but it is used to supplement a quality system. </li></ul><ul><li>Avoids Important Wastes </li></ul><ul><ul><li>- rework in downstream operations </li></ul></ul><ul><ul><li>- defects from reaching customers </li></ul></ul>
    24. 24. Functional Layout Interrupted product flow Unbalanced operations Large batches Longer time to complete Complex material handling -
    25. 25. Cellular Workplaces FG RM Includes Every Step Source Inspection Point of Use Storage Flexible Output Reduced Lot Size Simplified Handling Visual Goals & Metrics
    26. 26. Original Office Layout
    27. 27. Cellular Office Layout
    28. 28. Value Stream Mapping
    29. 29. Value Stream Map Supplier I 20 Days Driver 2/Month Daily Customer Assemble C/T=15sec C/O=15-50min Uptime=100% Package C/T=190sec C/O=10min Uptime=90% Test C/T=45sec C/O=20-70min Uptime=80% I Total Cycle = 250 Seconds, and Total Lead = 29 Days Production Control Orders Shop Orders Ship Schedule Daily Priorities 60-Day Forecast Weekly Orders 4 Days I 5 Days 20 Days 4 Days 5 Days 15 Sec 45 Sec 190 Sec
    30. 30. Future State Goals Reduce non-value added activities Reduce lead time Reduce inventory (especially WIP) Increase throughput (capacity) Reduced batches sizes Improve overall productivity
    31. 31. Keys to Success <ul><li>Keep things simple </li></ul><ul><li>Focus on your process </li></ul><ul><li>Look for all types of waste </li></ul><ul><li>Break old habits </li></ul><ul><li>Work through mistakes </li></ul><ul><li>When problems occur, be flexible </li></ul><ul><li>Keep improving— everyday - </li></ul>55
    32. 32. Share the mutual benefits of <ul><li>Decreasing </li></ul><ul><ul><li>Inventory and batch sizes </li></ul></ul><ul><ul><li>Labor costs and overtime </li></ul></ul><ul><ul><li>Capital investments </li></ul></ul><ul><li>Increasing </li></ul><ul><ul><li>Customer response </li></ul></ul><ul><ul><li>Productivity </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Quality </li></ul></ul>
    33. 33. Thanks very much
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