Lean Manufacturing: Improve Productivity, Quality, and Lead-Time

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Lean Manufacturing is a system of continuous improvement to improve productivity, quality, and lead-time.

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Lean Manufacturing: Improve Productivity, Quality, and Lead-Time

  1. 1. Lean OverviewCopyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  2. 2. Lean Overview• What is Lean?• What is the Toyota Production System?• What are the Benefits of Lean? Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  3. 3. What Is Lean?“A systematic approach to identifying and eliminating waste (non-value- added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” James Womack (Lean Thinking) Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  4. 4. The Rise of Toyota• Taiichi Ohno’s situation after WWII: – no money – a small diverse market – productivity - one-tenth that of Detroit – production - less than one-hundredth that of Ford• Ohno’s marching orders in the 1950’s: – “Catch up with Detroit in three years”• Ohno’s solution – after studying Ford for years, created a manufacturing system to reduce cost through eliminating waste Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  5. 5. Goal: Highest Quality, Lowest Cost, Shortest Lead Time Best Safety, High Morale Just In Time Jidoka Right part- Quality at the Source Right amount- Right Time •Line Stop •Visual •Flow Controls •Takt Time •Error Proofing •Pull •Andon •Quick •5 Whys Changeover Operational Stability Standardized Work PM/ TPM 5S Leveled ProductionToyota Production SystemCopyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  6. 6. Thinking Lean 5 Principles of Lean (Womack and Jones, Lean Thinking)• Specify value – can only be defined by the ultimate customer• Identify/Map the value stream – exposes waste and sources of waste• Create one piece flow – reduce WIP and delays• Let the customer pull product through the value stream – make only what the customer has ordered• Seek perfection – Continuously improve quality and eliminate waste Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  7. 7. What does Lean do? Total Lead Time LeanTransformation “All we are doing is looking at the time line from the moment the customer gives us an order to the point Total Lead Time when we collect the cash. And we are reducing that time lineValue-Creating Time by removing non-Non-Value-Creating value-added wastes.” Time (waste) – Taiichi Ohno Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  8. 8. Lean Benefits• Applying lean principles will create the following: – Shorter Lead-Times to Customers and Shorter Production Lead-Times – Net Decrease In Inventory Lead-Time Inventory- Frees Up Cash – Productivity Growth- increases capacity – Quality Improvement- lowers costs and Quality attracts additional Productivity business Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved
  9. 9. Lean Benefits Measure Initial Lean Conversion Continuous Improvement Labor Productivity Double Double Again Production Throughput 90% reduction 50% reduction TimesInventories Throughout 90% reduction 50% reduction Errors Reaching 50% reduction 50% reduction Customers Scrap 50% reduction 50% reduction Time to Market / New 50% reduction 50% reduction Product DevelopmentLean Thinking, Womack and Jones, 1996 Copyright © 2003-2009 EMS Consulting Group Inc. All Rights Reserved

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