IDT'20 Consulting Lean Committee Introduction

IDT’20 Consulting Lean Committee

LEAN INTRO.
Session 1

Outlines
• What is lean & lean manufacturing?
• Lean History
• TPS
• Lean thinking 5 Principles
• How to think lean ?
• Types of Processes ( VA Vs. NVA )
• Why lean Manufacturing ?
• Batch & Queue sys. Vs. One Piece Flow
• Flow Example
• Cellular Mfg. & One-Piece Flow
• 7 Wastes

What is lean & lean manufacturing?

Value
– Anything a customer is willing to pay for.
Waste
– Any activity in the process of production that does not add value.

Other Definitions
• “A systematic approach to identify and eliminate
waste (non-value-added activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection.”
– MEP Lean Network
• “Using the minimum amount of total resources (man,
materials, money, machines, etc.) to
produce a product and deliver it on time.”
– Deborah Lucia, Practice manager @ Global Executive Solutions Group

Lean History

Lean History:

• Henry Ford optimized production through
efficiency and productivity.
• For example, in a motor block, different holes
have to be drilled ,a different drill was used for
every different hole, meaning each hole was
drilled separately. Henry Ford, however, built a
drilling machine that had twenty drill bits in the
right places, at the right length, and with the
right diameter. That means that on the motor
block, with one down-and-up movement,
twenty holes were drilled perfectly.
Henry Ford
Lean History:

Henry Ford
Lean History:
• Installed the line assembly.
• Workers on assembly line works in a row.
• Ford could regulate the speed and could give each
worker a smaller task.
• With a small amount of work and a predetermined
speed, the people learned faster, worked faster, and it
became faster, better, and cheaper.
• Ford was producing nearly 8,000 a day.

Toyoda Saki chi
• His son, Kiichiro Toyoda, would later establish the world's largest
automaker, Toyoda is referred to as the "King of Japanese Inventors".
• His most famous invention was the automatic power loom in
which he implemented the principle of jidoka (autonomous
automation) which means that the machine stops itself when a
problem occurs, became later a part of the TPS
Lean History:

Taiichi Ohno
• He is considered to be the father of the TPS,
which became Lean Manufacturing in the
U.S. He devised the seven wastes
(or muda in Japanese) as part of this system.
• He wrote several books about the system,
including Toyota Production System
Lean History:

Taiichi Ohno
Ohno is also known for his "Ten Precepts" to think and act to win.
1. You are a cost. First reduce waste.
2. First say, "I can do it." And try before everything.
3. The workplace is a teacher. You can find answers only in the workplace.
4. Do anything immediately. Starting something right now is the only way to win.
5. Once you start something, persevere with it. Do not give up until you finish it.
6. Explain difficult things in an easy-to-understand manner. Repeat things that are
easy to understand.
7. Waste is hidden. Do not hide it. Make problems visible.
8. Valueless motions are equal to shortening one's life.
9. Re-improve what was improved for further improvement.
10. Wisdom is given equally to everybody. The point is whether one can exercise it.
Lean History:

TPS
Four prominent gentlemen developed the system
1. Sakichi Toyoda, who founded the Toyoda Group in 1902
2. Kiichiro Toyoda, son of Sakichi, who headed the
automobile manufacturing operation between 1936 and
1950
3. Eiji Toyoda, Managing Director between 1950 and 1981
4. Taiichi Ohno, the Father of the Kanban System.

TPS House

James Womack and Daniel Jones
1990
Lean History

Lean Thinking

Lean thinking 5 principles
Identify
value
Value Stream
mapping
Create Flow
Establish Pull
Seek
perfection

Identify Value
Identify the
value of a
specific
product
from the
customer’s
perspective
Value Stream
mapping
Set Steps that
create value,
steps that
create no
value but are
unavoidable,
and nonvalue-
adding steps
that can be
eliminated
Create Flow
Making work
elements
flow
continuously
with minimal
queues and
no rework or
stoppages
Establish Pull
The ability to
deliver only
what is
wanted by
your
customer,
and only
when they
want it
Seek perfection
specify
value,
identify the
value stream
and remove
wasteful
steps, create
flow, and let
customers
pull value ..
perfection
becomes
attainable
Lean thinking 5 principles
Continue

Pull System
Response to the customer’s rate of demand i.e. the
actual customer demand that drives the supply chain.
Based on a supply chain view from downstream to
upstream activities where
nothing is produced by the upstream supplier until the downstream
customer signals a need.
Toyota Production System

How to think Lean ?
Look at manufacturing as three primary
processes that create value for customers
 Product development
 Order to delivery
 Service through the product’s life cycle.
Asking what value really is from the standpoint of the
Customer (The purpose of the process).
Asking how the process currently performs and how
it could perform better (The process itself).
Asking what people are
needed to support the value creating processes (people).
Aligning purpose, process, and people in search of
the perfect process.
James P. Womack, Lean Mfg. Conference
Dearborn, Michigan, USA 2004

Types of processes

Adding-Value Step
• The customer must care about it or
be affected by it.
• It must change the product or service.
• It must be done right at the first time.

Value added Vs. Non value added
Time
Raw
Material
Finished
Parts
Waiting
Staging
Transportation Inventory Staging
= Value
Added Time
= Non-Value
Added Time
(WASTE)
Machining Assembly
Casting
Value Added Time is
only a very small
percentage of the Lead
time
Traditional Cost
Savings focused on
only Value Added Items
 LEAN FOCUSES ON
NON-VALUE ADDING
Processes

Many studies have shown that we only add value for around 5% of the time within our operations, the
remaining 95% is waste! Imagine if you could remove that 95% wasted time and effort; what would it do
for your operations? IDT’20 Consulting Lean Committee

Process Step Value Added Non Value Added
Storing raw material in warehouses
Stamping paintings on the T-shirt
Transforming textile threads into cloth
Ironing of the T-shirt
Packing T-shirts

Why lean manufacturing ?
1. Added value
2. Expanding capacity
3. Understanding customer needs
4. Customer satisfaction
1. Waste
2. Production time
3. Production cost
4. Manufacturing cycle time
5. Inventory
Decreases
Increases

Batch & queue Vs. One-piece flow

Bad Layout Cellular Layout
Flow Example

CELLULAR
MANUFACTURING
• An alignment of
machines in correct
process sequence,
where operators remain
within the cell and
materials are presented
to them from outside.
ONE-PIECE FLOW
• Manufacturing philosophy
which supports the
movement of product
from one workstation to
the next, one piece at a
time, without allowing
inventory to build up in
between.
Cellular Mfg. & One-piece flow

Lean is ..
“A long journey that needs
commitment, patience, long-term
thinking, positive mindset and attitude,
and continuous improvement which are
merged together as a strategic
weapon.”

7 Wastes
7
wastes
Transportation
Inventory
Motion
Waiting
Over-
production
Over-
processing
Defects

Questions ?

IDT'20 Consulting Lean Committee Introduction

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