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Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
Lesson 1   pe - lps introduction
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Lesson 1 pe - lps introduction

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INTRODUCTION TO LEAN PRODUCTION

INTRODUCTION TO LEAN PRODUCTION

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  • 1. LESSON 1 : INTRODUCTION TO LEAN PRODUCTION SYSTEM 1
  • 2. 2 1. Javier Santos, Richard Wysk, Jose Manuel Torres, Improving Production with Lean Thinking, J Wiley & Sons, Inc. 2006 2. Peter L.King, Lean for the Process Industry, Dealing with Complexity, CRC Press 2009 3. Katsundo Hitomi, Manufacturing System Engineering, CRC Press, 1996 4. Taiichi Ohno, Toyota Production System, Productivity Press, 1988 5. Jeffrey K. Liker, The Toyota Way, McGraw-Hill, 2004 References
  • 3. Definition of Manufacturing 1. Technical Definition Manufacturing is the application of physical and chemical processes to alter the geometry, properties and appearance of a material to make parts or products 3
  • 4. Definition of Manufacturing 2. Economic Definition Is the transformation of material into items of greater value by means of processing or assembly operations – adding value to the material 4
  • 5. Source: Groover, Fundamentals of Modern Manufacturing The PROCESSES AND METHODS employed to transform • tangible inputs (raw materials, semi finished goods, or subassemblies) and • intangible inputs (ideas, information ,knowledge) into goods or services. Definition of PRODUCTION SYSTEM 5
  • 6. Business Flow in a Manufacturing Company 6
  • 7. A. Craft Manufacturing • Late 1800’s • Car built on blocks in the barn as workers walked around the car. • Fixed position assembly • Built by craftsmen with pride • Components hand-crafted, hand-fitted • Excellent quality • Very expensive • Few produced 7
  • 8. B. Mass Manufacturing • Assembly line - Henry Ford 1920s • Low skilled labor, simplistic jobs, no pride in work • Interchangeable parts • Lower quality • Affordably priced for the average family • Billions produced - identical 8
  • 9. 9
  • 10. Ford Model T Mass Production Assembly Line 1908 10
  • 11. Ford Mass Production Manufacturing Assembly Plant - 1959 11
  • 12. C. Lean Manufacturing • Cells or flexible assembly lines • Broader jobs, highly skilled workers, proud of product • Interchangeable parts, even more variety • Excellent quality mandatory • Costs being decreased through process improvements. • Global markets and competition. 12
  • 13. Modern Assembly Line at Nissan 13
  • 14. Fiat Plant - Welding Line : 2009 14
  • 15. 15 The Nature of Lean Production • What Lean Production is not – JIT – Kanban • Characteristics – Fundamental change – Resources – Continuous improvement • Defined – “A system which exists for the production of goods or services, without wasting resources.”
  • 16. Objective of Lean Production System • Main objective of lean is to remove all forms of WASTE from the value stream. • Waste includes » cycle time, » labor, » materials & » energy 16
  • 17. Toyota Way Operational Excellence on a strategic weapon. - Toyota invented “Lean production” (also known as TPS) transformed a global transformation in every industry to Toyota’s manufacturing & supply chain philosophy & method. - Toyota is benchmarked by all peers and competitors for high quality, high productivity, manufacturing speed & feasibility. 17
  • 18. TOYOTA AUTOMOTIVE HINO Commercial PERODUA 42% Compact Asean DAIHATSU 51% Compact LEXUS 100% Luxury SCION (US) 100% Youth TOYOTA All Range 18
  • 19. •TOYOTA PRODUCTION SYSTEM • Lean Production System (LPS) is an assembly-line methodology developed originally for Toyota and the manufacturing of automobiles. • It is also known as the Toyota Production System or Just-In-Time production. • Engineer Taiichi Ohno is credited with developing the principles of lean production after World War II. His philosophy were: – focused on eliminating waste and – empowering workers, – reduced inventory and – improved productivity. 19
  • 20. TOYOTA TOP 10 – RANK BY SALES VOLUME Toyota – - #3 in 2003 - #2 in 2004 20
  • 21. http:/ 21
  • 22. TOYOTA WORLD MARKET SHARE 22
  • 23. USA MARKET SHARE in 2011 23
  • 24. -10 -8 -6 -4 -2 0 2 4 6 8 10 12 Net Margin % Porsche Toyota Nissan Renault Honda Hyundai BMW PSA DC VW GM Suzuki Ford Mitsubishi Mazda Fiat © autopolis/Economist Group/Cambridge University Press 2004. All rights reserved. Toyota Porsche Nissan TOYOTA CAR COMPANY RANK Profit Margin % Returns 24
  • 25. Toyota’s Globalization Process 25
  • 26. Building a TPS House WHAT MAKES TOYOTA SUCESSFUL & LEAN? 26
  • 27. What makes a PRODUCTION system Lean? 27
  • 28. UNDERSTANDING WASTE Waste Often Hides in Plain View • The chief obstacle to removing waste is that waste often hides in plain sight, or is built into activities. • We cannot eliminate the waste of material, labor, or other resources until we recognize it as waste. • A job can consist of 75 percent waste (or even more). • Classic example: brick laying in the late 19th century 28 Pre-Gilbreth Bricklaying
  • 29. Real Example in 1911 • Top: "The usual method of providing the bricklayer with material" (Gilbreth, Motion Study, 1911). • Bottom: "Non-stooping scaffold designed so that uprights are out of the bricklayer's way whenever reaching for brick and cement at the same time." 29
  • 30. Post-Gilbreth Brick Laying 30 The solution is obvious (in retrospect), but first we have to know that we have a problem!
  • 31. Material Waste Hides in Plain Sight 31 Cleaning Tank 1 Cleaning Tank 2 Dirty parts Clean parts Clean Water Discard water Clean Water The parts get clean, so no one questions this. What is wrong with this picture?
  • 32. Why Not Make the Water Work Twice? 32 Cleaning Tank 1 Cleaning Tank 2 Dirty parts Clean parts Discard water Clean Water The almost clean water from the second tank is good enough for use in the first tank. Water usage can be cut 50 percent.
  • 33. Definition of “Lean” – according to womack, jones & roos 1990 • Half the hours of human effort in the factory • Half the defects in the finished product • One-third the hours of engineering effort • Half the factory space for the same output • A tenth or less of in-process inventories 33 Source: The Machine that Changed the World Womack, Jones, Roos 1990
  • 34. Lean Manufacturing  is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. 34 Customer Order Waste Product Shipment Time Customer Order Product Shipment Time (Shorter) Business as Usual Waste Lean Manufacturing
  • 35. COMPARISON OF LEAN TO TRADITIONAL MANUFACTURING SYSTEM 35
  • 36. Case Studies – Boeing Manufacturing Business Unit - Issues • Average job moved to 30 different stations • Pieces travelled miles throughout the shop • Most space was used for storage of work in progress • Large inventory
  • 37. Changes and Results • Product based cells • Wheels on equipment for flexibility • Storage spaces stocked to max/min • Overall travel was reduced between 1 and 3 miles • Reduced need for forklifts and trucks
  • 38. Changes and Results • Reductions of bulk purchasing • Manufacturing occurs in ship sets • Just-in-time scheduling • 100,000 square feet of storage space reduced • Off-site storage no loner needed
  • 39. Boeing - Overall results • Reduced total cost of 30% • Productivity improved by 39% • Defects reduced from 12% to 3% • Production flexibility increased 40-50%
  • 40. 40
  • 41. BENEFITS OF LEAN PRODUCTION TO MANUFACTURING PLANT 41 1. Improved workstation layouts. 2. Connected processes with reduced work in progress between them. 3. Line-side inventory reduction. 4. Warehouse inventory reduction. 5. Improved operational availability on equipment. 6. Change over techniques increase throughput. 7. Make work stations visible, to show up problems, clearly showing the status of work orders or batches of work. 8. Improved safety in the workplace. 9. Line side storage systems with self managing replenishment. 10. People will be able to manage these systems for you on the floor with a very minimum of supervision
  • 42. Benefits of Lean Manufacturing to the Organization Lean manufacturing delivers an insurmountable competitive advantage over competitors who don't use it effectively. (1) Lower production cost  higher profits and wages – Cost avoidance flows directly to the bottom line. (2) Supports ISO 14001 and "green" manufacturing – Reduction of material waste and associated disposal costs  higher profits (3) Shorter cycle times: make-to-order vs. make-to- stock 42
  • 43. Lean Manufacturing: waste elimination as a continuous process The process change are ergonomic improvements and continuous reduction of packaging sizes and lots. 1 2 3 43
  • 44. Current Situation - high non value added activities 44 1. Rack unnecessarily oversized taking up too much space on the line. 2. Example of wasted non-value-creating space. 3. Onerous operator task. 4. Unnecessary motions. 5. Operator idleness.
  • 45. STEP 1 1. New logistics 2. Small containers 3. Compression of spaces 4. “Zoning” of cleared spaces: nothing happens here - no mudas. 5. Parts within immediate reach of the operators. 45
  • 46. 46 STEP 2: 1. Integration of a new model and its parts on the existing line. 2. Compressed line side, elimination of a several mudas: Flexibility of the production tool with a considerable increase in productivity.
  • 47. The Lean Factory 47
  • 48. Summary 1. Business activities can contain enormous quantities of built-in waste (muda, friction). 2. The greatest obstacle to the waste's removal is usually failure to recognize it. 3. Lean manufacturing includes techniques for recognition and removal of the waste. 4. This delivers an overwhelming competitive advantage. 48

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