Lean Manufacturing Assessment

Lean Manufacturing
Assessment
Organisation: ____________
Assessment Date: __________
For Manufacturers and Jobshops
Combines the best of Lean Manufacturing, Agile and JIT Manufacturing concepts

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What Can I Expect from an Assessment?
Four results come from a detailed Lean Manufacturing assessment.
1. You will gain a clear understanding of what needs to be improved or corrected.
2. You will gain a snapshot view (baseline) of current conditions that can be
compared and monitored during the implementation of Lean Manufacturing
practices.
3. You will have the ability to prioritize Lean Manufacturing issues and provide for a
plan on which to base future resource commitment.
4. You will have a Lean Manufacturing direction upon which to continually reduce
costs.
Who Should Conduct the Assessment?
A variety of methods are available for conducting the assessment:
1. An internal team of employees can review work areas and score the assessment
in approximately four hours.
2. The Lean Manufacturing champion or plant manager can conduct the assessment
and review it with key stakeholders.
3. An outside Lean Manufacturing improvement consultant can do the assessment
and review it with the appropriate management team or stakeholders.
This method provides the most unbiased score on which to base future
resource allocations.
Whichever method is chosen, the person or team must have a thorough knowledge
of Lean Manufacturing practices and processes. If multiple work areas in an
organization are conducting an assessment, involving a Lean Manufacturing
champion or plant manager reduces variations in the final tally and provides a more
consistent approach to the scoring. Remember, this assessment can be completed for
an entire facility, a focused factory, or a specific area or value stream within the
organization.
How Will I Be Assessed?
The Lean Manufacturing assessment involves three parts:
Scoring Evaluation Planning
and Implementation
Each phase involves a variety of tasks, information and forms.
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World-class Tips – Score = 5
Cross-functional teaming is
effective and part of company
culture.
Top-to-bottom involvement.
The importance of
standardization and process
control is ingrained throughout
the organization.
Continuous Improvement Rating
Continuous Improvement Defined
Running a Lean Manufacturing organization embraces the
Lean Manufacturing philosophy of excellence that includes
the elimination of waste (non-value added activities) while
creating a process for continuous improvement. The
building blocks, tools and concepts used in this
assessment must be sustained in production, as well as
front office environments, providing people with
opportunities to contribute ideas for improvement on a
regular basis. It is this process of continuous improvement
that eliminates waste and allows companies to globally
compete.
Continuous Improvement Assessment Guidelines
1. Goals and Measurements (Non-Financials)
Job shops or small manufacturers that are leaders in providing quality goods and
services to customers at the lowest possible price understand the importance of
establishing individual and organizational goals. Without goals, it is impossible to
track and measure progress.
Posting goals and measurement results in appropriate areas keeps workers involved
in progress and continuous improvement activities, and encourages communication
for obtaining results.
2. Kaizen/Teaming
In the word kaizen, ’kai’ means to take apart, and ‘zen’ means to make good.
Therefore, kaizen is an event that looks at something in enough detail to make it
better - to improve. The most effective way to do this is through the utilization of the
people in teaming.
The goal of a world-class organization is to have kaizen and teaming be self-
initiating, so people are always striving to improve, constantly improving the process
or standards, and acknowledging their own team (or individual) successes with some
type of reward and/or recognition.
3. Cost Out
Cost out is a program that determines cost reduction goals and provides a formal
plan that strives to meet those goals. Lean Manufacturing is about removing waste in
production processes to reduce costs. Customers are constantly demanding cost
reductions, and world-class organizations must strive to implement a process to meet
customer demands.
4. Systematic Improvement Process
There is a continuous review of the process to further improve it through
benchmarking, activities, training and ideas from workforce members who are
involved in the process.

Assessment Guidelines
1: Formal Training Plan
A training matrix showing all
employees and their current
training needs.
2: Percent of Employees
Trained
A system for tracking that shows
scheduled and completed
training.
3: Training Results Verified
Application of training skills in
the workplace is compared to
baseline
Training Rating
3. Training Results Verified
The application of training is what benefits the
organization. Training results are verified by
comparing skills after training to the baseline
measurements established prior to training.
Changes in organizational goals create training
gaps that need to be addressed either
through additional training or other forms of skill
development.
Training Scoring Sheet
Training includes a written plan that reconciles the gap between performance
improvements and company requirements for an individual,
Points
Formal Training
Plan
Percent of
Employees
Trained (for the
entire site)
Training Results
Verified (for the
entire site)
5 100% of employees 100% of employees 100% of employees
1 <25% of employees <25% of employees <25% of employees
Score
Average
Comments:

Takt time is known and work
pace is scheduled according to
takt
Machines and operations are
grouped by product family rather
than by departments
Machines are in order of process,
reducing waste of motion, travel
time, and floor space
Front office work (i.e., orders,
quotes, purchasing, etc.) flows
evenly and smoothly without
delays
Continuous Flow Rating
Continuous Flow Defined
Operations are continuously flowing when product
is pulled from the previous operation as it is
needed. Only quality parts are allowed to move to
the next operation.
Advantages to continuous flow processing include
shorter lead times, minimum or no
work-in-process inventory, and ease in identifying
defects and/or problems before they get to the
customer.
The goal of world-class organizations is having
processes linked with minimal WIP within the
main production flow.
Continuous Flow Assessment Guidelines
1. Processes Linked Through Value Stream Analysis
A value stream analysis consists of all the actions essential to the product or service,
both value-added and non-value-added, currently required to bring a product
through the main flow. It includes:
• The production flow, from raw material into the arms of the customer
• The office work flow (from concept to receiving payment)
Value Stream Mapping (VSM) is used to visually map a product’s production path
(materials and information) from door to door. VSM serves as a starting point to help
management, engineers, production associates, schedulers, suppliers and customers
recognize waste and identify its causes.
2. One-Piece or Optimal Lot Flow
One-piece flow produces and delivers one piece at a time to the downstream process
(the customer).Work flows from operation to operation in the smallest increment
possible. This philosophy looks upon batch, lot or mass processing as wasteful. For
example, batch manufacturing processes large numbers of parts throughout the
facility and uses machine utilization as a key metric for measuring productivity.
When one-piece flow is not practical, the alternative is optimal lot flow, which
establishes the least number of parts that can be moved between processes with
little or no wait time. This may equate to a portion of the customer ship quantity,
number of parts that can be tested, or a number of parts that can be processed at
any one time.
3. Time in Queue
Time in queue calculates the speed (or velocity) of the product to move through the
facility. The less time the parts wait in a queue to be further processed, the faster the
parts will be ready for shipment. The velocity of the part will become more and more
dependent upon removing non-value added activities as identified through the value
stream analysis.

1: Finished Goods
Utilising kanbans in the
downstream process to ensure
only parts sold will be
replenished.
2: Kanbans in Place
Utilising visual controls to signal
the need for replenishment
throughout the value stream.
3: Job Kitting
Packaging items needed for
production into complete kits and
delivering them to the worker.
4: On Time Delivery
Measuring and monitoring on-
time delivery performance to
reduce costs and improve
customer satisfaction.
Pull Systems Rating
Items in a kit might include: material, tools and fixtures,
gauging, prints, work orders, etc. Kits contain all the
materials that are required for a job to be run, and keep
the operator or assembler from having to wait for items.
4. On-Time-Delivery
Through the utilization of kanbans, as well as job kitting,
on-time-delivery performance improves. The
measurement of on-time-delivery is critical to the ability
to respond to quoted lead times. It is a beacon for the
facility to use to steer in additional customers (as with the
quality DPPM metric).
On-time delivery performance metrics ensure that all
areas improve. Work-in-process inventories are reduced,
and wastes are taken out of the value stream. The
continued reduction in lead times, product development
initiatives and mass customization efforts help
manufacturing companies become more Lean.
Pull Systems Scoring Sheet
The Pull System (Kanban) replenishes goods that are being consumed by the
downstream process to create a pull flow of material throughout all operations.
Points
Finished
Goods
Supplier
Kanbans in
place
Customer
Kanbans in
place
Job Kitting On Time Delivery
5 100% of parts
100% of
parts
100% of
parts
100% of areas 100% of parts
4 75% of parts 75% of parts 75% of parts 75% of areas 75% of parts
Score
Average
Comments:

Goals exist for all appropriate
machine areas with a program to
continually reduce changeover
times.
Standardized procedures exist for
all changeover activities.
Best and last changeover times
are posted and current.
All employees understand
differences between internal and
external changeover activities.
Quick Changeovers Rating
Quick Changeovers Defined
A key component of just-in-time manufacturing is
one-piece or optimal lot flow, which can require
frequent set-up and quick changeovers.
Production workers need to fully understand
internal and external operations with regard to
changeovers.
Quick Changeovers Assessment
Guidelines
1. Standard Processes and Procedures
A formal program that defines standards and
processes provides support for workers and includes
posted setup times encourages efforts for continuous
improvement.
Video, digital photos and task lists are used as methods to document procedures,
such as external changeover tasks that can be completed when the machine is
running, and internal operations, such as tasks that need to be completed when the
machine is down. Training provides support for workers to ensure no variation exists
between changeover operations.
Accurate and current documentation is provided and includes detailed instructions on
standard processes and procedures for completing changeovers effectively and
consistently.
2. Measuring and Tracking
Changeover time is measured starting with the last part produced to the first part
produced. Changeovers are measured and tracked for continuous improvement. Once
metrics are established, the best and last changeover times should be posted and
made visible. They should reflect current practices.
3. Processes to Reduce Set-ups
When processes are in place to accommodate quick changeovers, set-ups can be
done when ever needed. Products are manufactured in smaller lots, which provide
these advantages:
• Flexibility - meet changing customer needs without the expense of excess
inventory (raw or finished)
• Faster delivery - small-lot production means less lead-time and shorter customer
waiting time
• Better quality - less inventory storage means fewer storage-related defects. Quick
changeover methods lower defects by reducing set-up errors and eliminating trial
runs of the new product
• Higher productivity - shorter changeovers reduce downtime, which translates into
a higher equipment productivity rate

Step 1: Sorting
Sort through the contents of a work
area and remove unnecessary items
Step 2: Set in Order
Arrange necessary items for quick
identification, easy access and efficient
use
Step 3: Shine
Clean everything, keep it clean, and
use cleaning as a way to ensure your
area and equipment are maintained
Step 4: Standardize and Simplify
Communicate standards visually by
creating and posting guidelines for
keeping the area organized, orderly
and clean
Step 5: Sustain
Provide ongoing education,
communication, and monitoring to
ensure everyone follows the standards
5S Rating
Step Four: Standardize and Simplify
Continually look for ways to standardize and
simplify the operation. Develop a work structure
that supports the new practices and makes them
into full-time habits. Use signs as reminders of
the new practices, and hang posters with
storyboards, before and after pictures, etc.
Standardize to improve!
Step 5: Sustain
Sustain the benefits you derive from your 5S
system by creating a formal method of auditing
and monitoring results. Continue to educate
people about maintaining standards. Sustain for
success!
5S Scoring Sheet
The 5S system is the first building block to becoming a Lean Manufacturer. It gets
workspaces to eliminate waste, improve work flow, and provide workers greater
safety and control. 5S keeps customers coming back!
NOTE: 5S is a structured process and the steps follow a logical order. For maximum
effect you shouldn’t have a higher score for an upcoming step when a previous step
has not been completed. For example, if you scored Sorting at 50%, then Set-In-
Order cannot exceed 50%.
Points Sorting Set in Order Shine Standardize and
Simplify
Sustain
5 100% of areas 100% of areas 100% of areas 100% of areas 100% of areas
Score
Average
Comments:

Machines and equipment (when
appropriate) arranged in close
proximity to allow for good process
flow
Multi-skilled, capable operators
No queues between work stations,
and production paced to Takt time
Work areas in the front offices
organized for maximum efficiencies
Costs and margins are measured for
each cell/work area
Work Cell/Area Rating
Work Cells/Area Defined
Work cells are the heart of Lean Manufacturing
practices. A work cell is a work unit larger than
an individual machine or workstation but
smaller than the usual department.
Grouping processes or products to determine
associated costs and profitability creates a work
cell profit center. Allocating costs to small areas
of work tracks the efficiency of the cell and
relates it to a company’s profitability.
The table on the right compares key elements
related to functional and cellular production
layouts. Work cells offer many advantages over
conventional manufacturing approaches.
1. Well Defined Cells/Areas
An ideal work cell contains all necessary
equipment and resources to produce a
narrow range of highly similar products,
or family of products. Machines and
equipment are arranged in the correct
process sequence and operators remain
within their cell area.
All efforts in a cell or area are geared to
meet customer demand (or takt time).
Takt time is the time needed to produce
one quality part to meet customer
demand.
Material and work flows are better
managed and even accounting systems
are simplified, and productivity and quality increase, when related activities are
performed within a work cell. However, not every product and process is suitable for
cellular production.
2. Defined Part Families
A definition of family is: a group or collection of related things. In manufacturing,
part families are determined by grouping parts that share common equipment and
processing attributes. Members of a defined part family may or may not look alike.
For example, some parts determined to be part of a process may have threads or
grooves and other parts are smooth. An equipment grouping may have parts made of
different materials.
Key Element
Functional
Production
Layout
Cellular
Production
Layout
Interdependent Moves Many Few
Travel Distance 500’ - 4000’ 100’ - 400’
Route Structure Variable Fixed
Queues 12 - 30 Days 3-5 Hours
Through-put Time Days Hrs./Mins.
Response Time Days Hrs./Mins.
Inventory Turns/Year 3-10 15-30
Supervision Difficult Easy
Teamwork Inhibits Enhances

1: Signal Systems
Lights, flags, alarms, etc indicate
current conditions in the area,
and in particular warnings of
abnormalities
2: Visual Displays
Colour coding and markings,
lines, labels, signs for identifying
work conditions
3: Clear Action Procedures
Standard operating procedures
are defined for use when
abnormal conditions are
encountered
4: Up to Date Metrics
Trends, progress, and areas of
improvement are measured and
posted frequently
Visual Controls Rating
4. Up-To-Date Metrics
Measurements are used to identify scrap, lead time,
industrial safety, trends in quality, and setup time
reduction programs. Key personnel must determine
the most appropriate measurements to calculate for
their work areas.
Metrics are displayed in areas where they are
relevant. Data is updated on a daily, if not hourly
basis, and metrics are reviewed regularly.
Visual Control Scoring Sheet
Visual Controls help identify abnormal conditions and recommend appropriate
actions.
Points Signal Systems Visual Displays Clear Action
Procedures
Up to Date Metrics
5 100% of areas 100% of areas 100% of areas 100% of areas
Score
Average
Comments:

Everyone within the facility is
involved in equipment
maintenance and has standards
to meet
A checklist is used for standard
maintenance and operations in
each department and is visually
posted
Solid technical training for
everyone, especially
maintenance, is part of the TPM
development program
Critical equipment is identified
and measured on a daily basis for
performance improvement trends
Well documented preventative
maintenance program is in place
for major equipment
Total Productive Maintenance
(TPM) Rating
Total Productive Maintenance Defined
TPM (Total Productive Maintenance) is used to
maintain and sustain a manufacturing process that
ensures a high level first-time capability, minimizes
unscheduled machine downtime, and promotes
process efficiency. If the production equipment
breaks down or fails to produce at the expected
rate or quality, Lean Manufacturing product lines
can suffer.
Total Productive Maintenance goals are:
• maximize equipment effectiveness
• develop a system of productive maintenance for
the life of the equipment
• involve al/departments that plan, design, use or
maintain equipment
• promote TPM through autonomous small group
activities
TPM Assessment Guidelines
1. Autonomous Standards
Changing the way operators view their equipment is the first objective in
implementing autonomous maintenance. They are taught to:
• implement workplace organization and housekeeping
• develop lubrication and inspection standards for equipment
• eliminate causes of contamination and inaccessible areas
• understand basics in machine’s functions and controls to enable effective general
inspections
A prescribed operator standard is developed for each cell/work area. Digital pictures,
along with a small narrative with each picture, detail what is expected. A checklist
and sign-off sheet ensure the process is completed by the operator.
2. Scheduled Preventive Maintenance
Equipment generally has a detailed maintenance schedule that is provided in a
manual. It’s important the maintenance organization puts this schedule in a
systematic maintenance program and follows the recommendations of the equipment
manufacturer. The process may include general inspections, lubrications,
replacement of certain components, etc.

Lean Manufacturing Results
Work Area: Date:
Assessment Date: Current
Score
Importance
H M L
Target Score
A. Performance Excellence
1. Continuous Improvement
2. Training
3. Supplier/Customer Alliances
B. Work Flow
4. Continuous Flow
5. Pull Systems
6. Leveling
7. Quick Changeovers
D. Operational Excellence
8. 5S
9. Quality Process
10. Work Cell/Area as a Profit Centre
11. Visual Controls
12. Standard Work
13. Total Productive Maintenance

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Lean Manufacturing Assessment