Your SlideShare is downloading. ×
0

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Lean Manufacturing Overview

1,773

Published on

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go …

This Slideshare presentation is a partial preview of the full business document. To view and download the full document, please go here:
http://flevy.com/browse/business-document/Lean-Manufacturing-Overview-160

"Lean" is a management philosophy based on the Toyota Production System (TPS). With Lean Thinking, you will be able to enhance value for your customers by improving and smoothing the process flow and eliminating waste. Simply put, with Lean, you will be able to increase productivity and create greater customer value with less resources.

By teaching this presentation, managers and employees will have a better understanding of the Lean principles and approach to eliminating waste, and will be more forthcoming to lead and participate in the Lean implementation process.

Published in: Business, Technology
1 Comment
9 Likes
Statistics
Notes
No Downloads
Views
Total Views
1,773
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
3
Comments
1
Likes
9
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. © Operational Excellence Consulting. All rights reserved. Lean Manufacturing Overview
  • 2. 4© Operational Excellence Consulting. All rights reserved. Program Outline • Introduction to Lean • Value & Waste • Lean Principles • Lean Manufacturing Framework (TPS) • Stability • Standardization • Just-In-Time • Jidoka • Employee Involvement • Value Stream Mapping • Problem Solving • Lean Implementation • Role of Lean Leadership • Developing "Kaizen Eyes" • Critical Success Factors • SummaryThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 3. 7© Operational Excellence Consulting. All rights reserved. What Lean IS NOT • Laying off employees by the bus load • Delivering less or working harder • Outsourcing or offshoring • Being mean to people • Automation or buying a monstrous ERP system • Narrow focus on unit cost management • Winning a Shingo Prize so as to look Lean This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 4. 10© Operational Excellence Consulting. All rights reserved. Toyota’s Philosophy • Provide world class quality and service • Develop employee potential through mutual trust and cooperation • Reduce cost through elimination of waste • Develop a flexible production system that can respond to changes in market demand This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 5. 13© Operational Excellence Consulting. All rights reserved. Lean Manufacturing System • TPS is built on two main pillars: Just-In-Time: It refers to the manufacturing and conveyance of only what is needed, when it is needed, and in the amount needed. Jidoka: The ability to stop production lines in the event of problems such as equipment malfunction, quality issues, or late work. Jidoka helps prevent the passing of defects, helps identify and correct problem areas using localization and isolation. Underlying this management philosophy is the concept that "Good Thinking Means Good Product." This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 6. 16© Operational Excellence Consulting. All rights reserved. Process Improvement Methodologies Custom and practice Capability Configuration Capacity Change- overInventoryDefects Intellect Over- processing Transportation Waiting Overproduction Motion Waste Variability Inflexibility Typical focus of Lean improvement Typical focus of “six sigma” improvement Typical focus of de-bottlenecking Sample distribution “Voice of the process” “Voice of the customer” +/- 3 Standard deviations This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 7. 19© Operational Excellence Consulting. All rights reserved. What does Lean in a service environment look like? Banks •Mergers and acquisitions •Loans application IT •Outsourced managed services Application Common Issues Typical Solutions •Differences in business practices •Loans approval process •Complicated tasks •Unbalanced capacity •Manpower utilization •Process integration and streamlining •Fast track processing for low-risk loans •Segmenting complexity •Pooling resources for economies of scale •Flexible manpower systems Telco • Procurement • Call centre operations •Cost-based and capex management •Customer service •Inventory management •Network sharing •Channels efficiency Source: Operational Excellence Consulting Research This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 8. 22© Operational Excellence Consulting. All rights reserved. Benefits of Lean • Improve customer satisfaction • Increase sales and profits • Improve quality and lower costs • See things differently than we do today • Optimally utilize resources while meeting customer’s needs • Enhance process flow • Improve throughput • Create sustainable competitive advantage This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 9. 25© Operational Excellence Consulting. All rights reserved. Methods to Increase Productivity How to Increase Productivity? Quantitative Approach More Staff More Machines Work Longer Qualitative Approach Work Harder Eliminate Waste & Simplify Focus of Lean Let’s work smarter! This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 10. 28© Operational Excellence Consulting. All rights reserved. Examples of Value-Added Activities • Entering orders • Translating materials • Creating codes • Preparing drawings or artwork • Laying foundations • Assembling goods • Shipping to customersThis document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 11. 31© Operational Excellence Consulting. All rights reserved. Eight Types of Waste Over-production Producing more than what the customer needs Inventory Building and storing extra services/products the customer has not ordered Transportation Moving product from one place to another Rework Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process or a machine/tool WasteWaste This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 12. 34© Operational Excellence Consulting. All rights reserved. Types of Waste • Searching for tools, materials • Searching for information in shared drive • Lack of or sub-optimal standard operating procedures (SOPs) • Reaching, bending or unnecessary motion due to poor ergonomics and workplace layout • Unnecessary walking • Providing higher quality than is necessary • Unnecessary part/system replacement • Multiple formats for the same information • Redundant approvals (checkers checking on checkers) • Making extra copies and excessive reporting • Excessive documentation Unnecessary Movement Over-processing 5 6 This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 13. © Operational Excellence Consulting. All rights reserved. Lean Principles This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 14. 40© Operational Excellence Consulting. All rights reserved. A value stream is all of the value-adding activities AND all of the non-value adding activities (pure waste and incidental waste) required to provide a product/service to a customer Process A Process B Process CCustomer Order Customer Finished Product Value Stream Principle 2: Map the Value Stream This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 15. 43© Operational Excellence Consulting. All rights reserved. Principle 4: Establish Pull from Our Customer(s) Traditional System • When Process A completes its work, it hands the product off to Process B, where it is stored until needed. Pull System • Process B is responsible for getting parts and supplies from Process A as they are needed. There is no intermediate storage. A B C INVENTORY INVENTORY INVENTORY MATERIALS FINISHED PRODUCTS FINISHED PRODUCTS A CB MATERIALS This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 16. 46© Operational Excellence Consulting. All rights reserved. Systems Approach to Lean “Most companies have focused too heavily on tools…without understanding Lean as an entire system that must permeate an organization’s culture.” - Dr. Jeffrey K. Liker Author of “The Toyota Way” Stability This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 17. 49© Operational Excellence Consulting. All rights reserved. 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 Sort Set In Order Shine Standardize Sustain Stability This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 18. 52© Operational Excellence Consulting. All rights reserved. Market Demand = 220,000 Units Per Year Takt Time = 27 Seconds Lathe Mill Mill InspectDrill Drill TestDrillPack 1 2 3 4 5 10 9 8 7 6 27 Seconds 27 Seconds Inspect 27 Seconds Cellular Layout Stability This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 19. © Operational Excellence Consulting. All rights reserved. Lean Methodologies & Tools Standardization: • Standardized Work • Heijunka / Load Leveling • Supermarket • Kaizen This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 20. 58© Operational Excellence Consulting. All rights reserved. Subjects for Standardization Standardization This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 21. 61© Operational Excellence Consulting. All rights reserved. Heijunka (Load Leveling) Level out the workload - Work like the tortoise, not the hare Standardization This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 22. 64© Operational Excellence Consulting. All rights reserved. Production Instruction Kanban with Heijunka Box Standardization This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 23. 67© Operational Excellence Consulting. All rights reserved. Kaizen “Blitz” • Total focus on a defined process to create radical improvement in a short period of time • Dramatic improvements in productivity, quality, delivery, lead-time, set-up time, space utilization, work in process, workplace organization • Typically five days (one week) long Standardization This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 24. 70© Operational Excellence Consulting. All rights reserved. Just-in-Time (not Just-in-Case) Pillar • The right material • At the right time • At the right place • In the exact amount Stability Heijunka Standardized Work Kaizen Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke • Visual Control Goals: highest quality, lowest cost, shortest lead times Involvement Just-In-Time This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 25. 73© Operational Excellence Consulting. All rights reserved. Pull System • Pull System is a flexible and simple method of controlling/balancing the flow of resources Eliminate waste of handling, storage, expediting, obsolescence, repair, rework, facilities, equipment, excess inventory, etc. • Pull System consists of: Production based on actual consumption Small Lots Low inventories Management by sight (visual management) Better communication Just-In-Time This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 26. 76© Operational Excellence Consulting. All rights reserved. Supermarket Analogy 1. A carton of milk is removed from shelf 2. A stock person restocks the empty location, but only brings what shelf can accommodate 3. The supermarket combines visual control, pull system, Kanban and 5S Just-In-Time This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 27. 79© Operational Excellence Consulting. All rights reserved. Quick Changeover: Basic SMED Principles • Identify internal vs. external changeover tasks • Analyze each task’s real purpose and function • Focus on no/low cost solutions • Aim to eliminate changeover time Just-In-Time This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 28. 82© Operational Excellence Consulting. All rights reserved. Takt Time Calculation • Calculation: Total work time = 440 Minutes (7 hours/20 minutes), 20 days a month Total demand = 17,600 units per month Takt time = 17,600/8,800 = two per minute or one piece every 30 seconds Just-In-Time This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 29. © Operational Excellence Consulting. All rights reserved. Lean Methodologies & Tools Jidoka: • Quality at the Source • Poka-Yoke • Andons • Problem Solving This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 30. 88© Operational Excellence Consulting. All rights reserved. Why Jidoka? • Increase quality • Lower costs • Reduce lead time • Improve customer service Jidoka This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 31. 91© Operational Excellence Consulting. All rights reserved. Jidoka - Prevention Techniques • Poka-Yoke (Mistake Proofing) Visual control of quality Prevents defects from happening • Andons Commonly lights to signal production line status Red: line stopped Yellow: call for help Green: all normal Andon signals require immediate attention Jidoka This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 32. 94© Operational Excellence Consulting. All rights reserved. Andon • A visual control device in a production area Typically a lighted overhead display Gives the current status of the production system Alerts team members to emerging problems • Serves as warning system to signal and identify problems in the process Jidoka This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 33. 97© Operational Excellence Consulting. All rights reserved. Eight Steps of Problem Solving Identify the problem Understand Present Situation Identify Root Cause Plan Improvement Implement Improvement Confirm Results Standardise Improvement Review & Follow-up PLAN ACT CHECK DO Jidoka This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 34. 100© Operational Excellence Consulting. All rights reserved. Total Employee Involvement • The essence of Lean is engaging everyone in identifying and solving problems Stability Heijunka Standardized Work Kaizen Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce Jidoka • Separate man & machine work • Abnormality Identification • Poka yoke •Visual Control Goals: highest quality, lowest cost, shortest lead times Involvement Involvement This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 35. 103© Operational Excellence Consulting. All rights reserved. Suggestion System • One of the cornerstones of Small Group Activities • Suggestions are job-oriented and implemented by the employee Process Equipment Safety & Environment • A key measure of morale – number of suggestions per employee Involvement This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 36. 106© Operational Excellence Consulting. All rights reserved. Hoshin Kanri Process Direction of information flow Catchball: Negotiation & Alignment between two levels MD/ Business Unit GM Dept Manager Section Manager Engineer Customer Satisfaction Feedback Feedback Feedback Feedback Set up & lead Kaizen team to reduce rejects in Line A-1 To improve quality Improve overall yield Reduce defects Reduce rejects in Line A-1 Policy Owner Objective Means To improve quality Improve overall yield Reduce defects Involvement This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 37. 109© Operational Excellence Consulting. All rights reserved. Purpose of Value Stream Mapping • Identify opportunities or processes where Lean tools can be applied • To free up resources or improve capacity • Eliminate process waste • Help reduce / eliminate waiting time • Reduce cycle and processing time • Understand process linkages and dependencies • Create the basis for Lean implementation plan This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 38. 112© Operational Excellence Consulting. All rights reserved. Value Stream Mapping Steps Define and Pick the Product/ Service Family Create Current State Value Stream Map Create Future State Value Stream Map Develop an Implementation Plan & Execution This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 39. 115© Operational Excellence Consulting. All rights reserved. Eight Steps of Problem Solving Identify the problem Understand Present Situation Identify Root Cause Plan Improvement Implement Improvement Confirm Results Standardise Improvement Review & Follow-up PLAN ACT CHECK DO This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 40. 118© Operational Excellence Consulting. All rights reserved. "As much as 95% of quality related problems in the factory can be solved with seven fundamental quantitative tools." - Dr. Kaoru Ishikawa This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 41. 121© Operational Excellence Consulting. All rights reserved. 4 Key Activities 1. Make a Commitment 2. Plan for Lean deployment 3. Put Lean systems in motion 4. Keep Lean going Flow Kaizen (Value Stream Improvement) Process Kaizen (Waste Elimination) Four Key Activities Plan DoCheck Act This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 42. 124© Operational Excellence Consulting. All rights reserved. 3. Put Lean Systems in Motion 3.1 Set up work process measurements 3.2 Measure waste, cost of quality, etc. 3.3 Form Kaizen teams for solving problems 3.4 Recognize participation This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 43. 127© Operational Excellence Consulting. All rights reserved. What is Leadership? Peter Drucker on Leadership: “The greatest leaders of the 20th century were Hitler, Stalin and Mao: If that is “leadership”, I want nothing to do with it.” This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 44. 130© Operational Excellence Consulting. All rights reserved. Leadership at Toyota - From managing numbers to managing the process • Leaders at Toyota, like leaders anywhere, want to see measurable results. • But they know that the financial result is a result of a process. • They also realize that the financial results reflect the past performance of that process. • Far better is to create a process that can be managed right NOW. This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 45. 133© Operational Excellence Consulting. All rights reserved. Leadership at Toyota - P-D-C-A • Toyota would say this is essentially the P-D-C-A management cycle they learned from Dr. Deming. • Yet, my own observations say this is precisely the thing that most companies can’t seem to do. • Why? • Surely one major reason for this is the way we lead and manage.This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 46. 136© Operational Excellence Consulting. All rights reserved. Chairman Cho of Toyota: Three Keys to Lean Leadership • Go See “Sr. Mgmt. must spend time on the plant floor.” • Ask Why “Use the “Why?” technique daily.” • Show Respect “Respect your people.” This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 47. © Operational Excellence Consulting. All rights reserved. Ways To Develop “Kaizen Eyes” This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 48. 142© Operational Excellence Consulting. All rights reserved. Ways to Develop “Kaizen Eyes” 3 41.Take something apart 42.Do a walkthrough with someone else 43.Study problem solving 44.Quiz suppliers 45.Listen to customers 46.What would you do with unlimited budget? 47.Search help forums 48.Create a checklist Always be looking for opportunities Source: Tom Curtis This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 49. 145© Operational Excellence Consulting. All rights reserved. Critical Success Factors 2 • Select a few projects to work on instead of trying to “boil the ocean” • Lean should be considered a long-term philosophy, even at the expense of short-term financial gains • Build culture of stopping the line to fix problems • Standardize tasks and processes • Use simple visual control systems to bring problems to the fore This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 50. 148© Operational Excellence Consulting. All rights reserved. Critical Success Factors 5 • People must be adaptive and flexible • Proper allocation of resources • Trust between the organization and trade union • Line management must always retain the authority and responsibility for Lean implementation • Regular review and measurement of progress against pre-determined targets and expectations This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 51. 151© Operational Excellence Consulting. All rights reserved. Breakthrough Thinking Needed “Everything should be made as simple as possible, but not simpler.” - Albert Einstein This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 52. © Operational Excellence Consulting. All rights reserved. End of Presentation To view the full list of training presentations, please visit us at: Operational Excellence Consulting http://www.oeconsulting.com.sg This document is a partial preview. Full document download can be found on Flevy: http://flevy.com/browse/document/lean-manufacturing-overview-160
  • 53. 1 Flevy (www.flevy.com) is the marketplace for premium documents. These documents can range from Business Frameworks to Financial Models to PowerPoint Templates. Flevy was founded under the principle that companies waste a lot of time and money recreating the same foundational business documents. Our vision is for Flevy to become a comprehensive knowledge base of business documents. All organizations, from startups to large enterprises, can use Flevy— whether it's to jumpstart projects, to find reference or comparison materials, or just to learn. Contact Us Please contact us with any questions you may have about our company. • General Inquiries support@flevy.com • Media/PR press@flevy.com • Billing billing@flevy.com

×