Lean Manufacturing Overview by Operational Excellence Consulting

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“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.

NUMBER OF SLIDES: 150​

LEARNING OBJECTIVES

Explain how Lean principles and practices improve business performance
Describe the Lean philosophy and approach to continuous improvement
Define value and waste
Identify key Lean tools and techniques for waste elimination
Describe the process of Lean implementation
Explain the role of Lean leadership
Identify the critical success factors

CONTENTS
​​
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
Summary

To download this complete presentation, please go to: http://www.oeconsulting.com.sg

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Lean Manufacturing Overview by Operational Excellence Consulting

  1. 1. © Operational Excellence Consulting. All rights reserved. Lean Manufacturing
  2. 2. 2© Operational Excellence Consulting. All rights reserved. Learning Objectives 1. Understand the key concepts and principles of Lean 2. Acquire knowledge on the common Lean methods and tools and their applications to eliminate waste and create more value for customers 3. Identify ways to develop “Kaizen eyes” to look for improvement opportunities 4. Describe the various Lean roles 5. Define the critical success factors for sustaining a Lean culture Copyrights of all the pictures used in this presentation are held by their respective owners
  3. 3. 3© Operational Excellence Consulting. All rights reserved. Outline 1. Introduction to Lean Manufacturing 2. Key Concepts & Principles of Lean 3. Common Lean Methods & Tools 4. Ways to develop “Kaizen Eyes” 5. Lean Roles 6. Sustaining a Lean Culture NOTE: As this is a PREVIEW, only selected slides are shown. To download the complete presentation, please visit: http://www.oeconsulting.com.sg
  4. 4. 4© Operational Excellence Consulting. All rights reserved. What is Lean? • Value stream as primary work unit • Focused on improving process performance • Clear view of end state • Wide range of Lean tools are available • Learn-by-doing approach to performance improvement and capability-building • Lean is a management philosophy based on the Toyota Production System (TPS) • Eliminate everything that does not add value (waste) in the customer’s eyes Objective Focus and scope Approach and tools
  5. 5. 5© 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 • A cost reduction program • Just a set of “tools” like 5S, kaizen events, etc. • Automation or buying a monstrous ERP system • Winning a Shingo Prize so as to look Lean
  6. 6. 6© 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
  7. 7. 7© Operational Excellence Consulting. All rights reserved. Lean vs. Traditional Thinking Traditional Thinking  Large batches  Low unit costs  Work at full capacity  Tight Schedules  High WIP inventories  High level of specialization  Long cycle times Lean Thinking  Small batches  Total system cost  Work at necessary capacity  Flexible schedules  Low WIP inventories  Cross-training  Short cycle times
  8. 8. 8© Operational Excellence Consulting. All rights reserved. Lean Management Framework (a.k.a. Toyota Production System) Source: Adapted from Toyota Production System 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 Goals: highest quality, lowest cost, shortest lead times Involvement Stability Standardization Just-In-Time Jidoka Involvement 1 2 3 4 5 1 2 3 4 5 Focuses on Quantity and “Flow” Focuses on Quality and Prevention
  9. 9. 9© 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.”
  10. 10. 10© Operational Excellence Consulting. All rights reserved. Lean has been adopted in many different environments since its creation Toyota Automotive Industrial products High fashion Medical devices Consumer products Aerospace Shipbuilding Pharma Food production Pulp and paper Chemicals Airlines Railways Naval operations & maintenance Hospital Insurance Banking Retail Store Upstream E&P High Tech Consulting Law Firms Hospitality ITO/BPO Services Process industries Manufacturing Time Complexity
  11. 11. 11© Operational Excellence Consulting. All rights reserved. What does Lean in manufacturing and process industries look like? Automotive •Production •Inventory management Aerospace •Engine overhaul •Spare parts Application Common Issues Typical Solutions •Throughput •Equipment downtime •Rework and re- inspection •Inventory costs •Turnaround time •Obsolescence costs •One-piece Flow/Pull systems •Equipment reliability •Elimination of defects •Inventory optimization •Process streamlining •Standardized operating procedures •Spare parts management Process •Materials management •Asset management •Material wastages •Equipment availability •Elimination of defects •Reduction of unplanned downtime Source: Operational Excellence Consulting Research
  12. 12. 12© Operational Excellence Consulting. All rights reserved. Lean & Six Sigma • Lean improves the “flow” by eliminating waste • Six Sigma improves the process by reducing variation Combining Lean with Six Sigma results in smooth and steady flow
  13. 13. 13© 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!
  14. 14. 14© Operational Excellence Consulting. All rights reserved. Work versus Waste Value Add Non-Value Add: Incidental Waste Non-Value Add: Pure Waste Focus here for improvement
  15. 15. 15© Operational Excellence Consulting. All rights reserved. Value Defined Value-Added Activities  An activity that changes the size, shape, fit, form or function of the material or information  Customer wants it (meets customer requirements)  Done right the first time Non-Value Add: Incidental Waste  No value created but required by current thinking  No value created but required by process limitations  No value created but required by current technology  No value created but required by government/business regulations Non-Value Add: Pure Waste  Consume resources but creates no value for the customer  Could be stopped and it would be invisible to the customer
  16. 16. 16© Operational Excellence Consulting. All rights reserved. Cost Reduction Principle Cost Plus Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Cost Reduction Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Higher profit is achieved by increasing sales price Higher profit is achieved by reducing cost (waste) while maintaining sales price
  17. 17. 17© Operational Excellence Consulting. All rights reserved. Eight Lean Wastes in Manufacturing Over-production Producing sooner, faster or in greater quantities than customer demand Inventory Raw material, WIP or finished goods which is not having value added to it Transportation Unnecessary movement of people or parts between processes Defects Work not done right the first time such as scrap and rework Over-processing Processing beyond the standard required by the customer Motion Unnecessary movement of people, parts or machines within a process Intellect Not using employees full intellectual contribution Waiting People or parts that wait for a work cycle to be completed Waste
  18. 18. 18© Operational Excellence Consulting. All rights reserved. Lean Thinking Philosophy Identify and eliminate all activities that are waste. Focus on optimal flow throughout the process. Focus on creating value for customers. Current State Future State Identify Waste “True North” Value Added Time = Lead Time Full of Waste, Variation, and Rigidity Eliminate Waste
  19. 19. 19© Operational Excellence Consulting. All rights reserved. Lean Principles 1. Specify value – from the standpoint of the end customer 2. Identify the value stream – all process steps across departmental boundaries (the value stream), eliminating steps that do not create value 3. Make value flow continuously – eliminate causes of delay, such as batches and quality problems 4. Let customers pull value – avoid pushing work onto the next process or department; let work and supplies be pulled as needed 5. Pursue perfection – through continuous improvement
  20. 20. 20© Operational Excellence Consulting. All rights reserved. 4Ms • Operations safely carried out with all task organized in the best known sequence and by using the most effective combination of resources  Man  Machine  Method  Material Man MachineMaterial Method Stability
  21. 21. 21© 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 Stability Sort Set In OrderShine Standardize Sustain
  22. 22. 22© Operational Excellence Consulting. All rights reserved. Visual Controls • Visual elements on the production floor allow everyone to “know the score” and they make out of standard situations immediately obvious. • Enables everyone to ‘see’ how we’re performing • Helps highlight problems, or variances from standard • Encourages employee involvement and open discussions Process Costs Product Profitability 100% Revenue Rework On TimeCycle Time Reduction WIP Backlog Internal Quality Stability
  23. 23. 23© 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
  24. 24. 24© Operational Excellence Consulting. All rights reserved. Total Productive Maintenance (TPM) • Total Productive Maintenance (TPM) is a series of methods to keep equipment running • The goals of TPM include:  Zero unplanned downtime  Zero speed losses  Zero defects  Zero accidents  Minimum life cycle cost TPMintheOffice Safety&Environmental Management AutonomousMaintenance PlannedMaintenance FocusedImprovement EarlyEquipment Management QualityMaintenance Education&Training 5S & Visual Management TPM Goals: Zero Defects, Zero Breakdowns, Zero Accidents Stability
  25. 25. 25© Operational Excellence Consulting. All rights reserved. Heijunka (Load Leveling) Level out the workload - Work like the tortoise, not the hare Standardization
  26. 26. 26© Operational Excellence Consulting. All rights reserved. Kaizen (Continuous Improvements) • A system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made. • Continuous small improvements • Changes are implemented quickly • Everyone gets involved Source: "The Idea Generator” by Norman Bodek Standardization
  27. 27. 27© Operational Excellence Consulting. All rights reserved. One-Piece Flow/Pull system • The optimally Lean process is characterized by “One- Piece Flow”  No work-in-progress inventory costs  No quality defect  Shortest cycle time  No waste Just-In-Time
  28. 28. 28© Operational Excellence Consulting. All rights reserved. Quick Changeover (Set-up Reduction) • Single Minute Exchange of Dies (SMED)  A series of techniques for changeovers of production machinery in less than ten minutes (single digit minutes) • Set-up Reduction Program Goals  To achieve smaller lots  To maintain consistent quality  To minimize inventory  To reduce lead times  To address frustration of setup personnel Just-In-Time
  29. 29. 29© 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
  30. 30. 30© Operational Excellence Consulting. All rights reserved. Flexible Workforce • The ability of the workforce to “flex” to other jobs as demand fluctuates within the system, and the efforts the organization undertakes to ensure this occurs • Improve worker skill set • Maximize organizational flexibility • Focused training and development plans • Allow the ability to flex to our customer’s demands Just-In-Time
  31. 31. 31© Operational Excellence Consulting. All rights reserved. Poka-Yoke (Mistake Proofing) • Poka-yoke is a Japanese term that means "mistake- proofing" • Poka-yoke refers to techniques that make it impossible to make mistakes. • Poka-yoke helps people and processes work right the first time. Jidoka
  32. 32. 32© 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
  33. 33. 33© Operational Excellence Consulting. All rights reserved. Hoshin Kanri (Policy Deployment) • A planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision. • Enables everyone to ‘see’ where we’re going and our plans to get there • Build plan and strategies as a team • Shared responsibility for getting results Vision Key Result Areas Key Result Measures Key Strategies Involvement
  34. 34. 34© Operational Excellence Consulting. All rights reserved. • Creates an end-to-end view of the system • Demonstrates interaction between material/work and information flow • Provides a common visual language for understanding a complex system Supplier Management Control Customer Work & Information Flow Information flow Value stream mapping provides an overview of the end-to-end production process
  35. 35. 35© 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
  36. 36. 36© Operational Excellence Consulting. All rights reserved. Lean Leadership & Kaizen Flow Kaizen (Value Stream Improvement) Process Kaizen (Waste Elimination) Senior Management Front Lines Focus Plan DoCheck Act
  37. 37. 37© 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.” Fujio Cho Chairman of Toyota Motor Corporation
  38. 38. 38© Operational Excellence Consulting. All rights reserved. A Simple Lean Implementation Roadmap Create Awareness Build Capability Operations Management & Improvement Lean Thinking Training Lean Leadership Training Build Lean Activity Board Kaizen #1: 5S Kaizen #2: Waste Elimination Value Stream Mapping for Key Processes Train-the- Trainer Training Information Sessions for Whole Organization Senior Management Awareness Kaizen #3: Standardization Month 1 Lean Methods & Tools Training Month 3Month 2 Daily Management Meeting Lean Update in Monthly Newsletter & Intranet
  39. 39. 39© Operational Excellence Consulting. All rights reserved. Sustaining a Lean Culture • Management commitment • Alignment to vision and mission • Availability of resources • Address “what is in it for me” • Success measures and KPIs • Management review • Rewards and recognition
  40. 40. © Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting
  41. 41. 41© Operational Excellence Consulting. All rights reserved. About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. • The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. • OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg
  42. 42. © Operational Excellence Consulting. All rights reserved. END OF PRESENTATION For more presentations and guides, please visit: www.oeconsulting.com.sg

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