Lean knowledge

DMA Kulasooriya ISL-Certified SixSigma Black Belt
Email: Kulasooriyadma@yahoo.com
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DoingMoreWithLess Lean
Knowledge
DMA Kulasooriya
Consultant – Six Sigma and Lean Practices
ISL Certified Six Sigma Black Belt

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Agenda
• Five Principles of lean
• Identify Value
• Value Stream Mapping
• Creating Flow
• Pull From the Customer
• Continual Improvement

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Non- Cost Principle of
Toyota
Traditional View: Cost + Profit = Sales Price
Lean View: Profit = Sales Price – Cost

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Compress the time
required to create value
(Look for one piece flow)
Produce only
what and when
needed
(Kanbans)
Pull
Relentlessly
eliminating
waste
Perfection
Specify
Value
Identify the
value stream
Flow
Continuously apply
the lean principles to
attack waste
Value defined by
the customer.
Agree what this is
Define the chain
of value adding
steps from raw
material to
Customer
‘Lean’ principles
1
2
3
4
5

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DoingMoreWithLess Learning to See
Whenever there is a product for a
customer, there is a value stream.
The Challenge lies in seeing it.

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DoingMoreWithLess Value Stream Mapping
VSM is visualization tool oriented to the
Toyota version of lean manufacturing
(Lean Production System)
It helps people to understand and
streamline work processes and then
apply certain tools of Toyota production
System

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DoingMoreWithLess Value Stream Mapping
A value stream is all the actions (both
value added and non-value added )
currently required to bring a product
through the main flows essential to every
product
1. Production flow from raw material in to the
arms of the customer
2. The design flow from concept to launch

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Value –Stream Mapping (VSM) is a
pencil and paper tool that helps you
to see and understand the flow of
material and information as a
product makes it way thorough the
value stream.

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What is Value Stream Mapping
A value stream is all the actions currently required to bring a product
service from raw form through to the arms of the customer.
Total Value Stream
Suppliers In-house activities Customer /end user
IMPORTANT
Always start at the customer
end of the stream.
-What do they see as value?
Value Stream Mapping

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Value –Stream Mapping Steps
Product
Family
Current-state Drawing
Future –State Drawing
Work plan & Implementation

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Current – State Map

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Drawing the Current-State
Map - Tips
• DIY – While walking along the actual
pathways of material and information flows
• Begin at the shipping end and work
upstream – Voice of Customers in Mind
• Always draw by hand in pencil
• Drawing by hand means that you can do it
yourself.

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Mix in Bowl Pour into Mould Cook in Microwave Present
Batch Size = 1
Cycle Time = 10
mins
No. Operators = 1
per shift
Shift =
Days/Nights
Batch Size = 1
Cycle Time = 2
mins
No. Operators = 1
per shift
Shift =
Days/Nights
Batch Size = 2
Cycle Time = 60
mins
No. Operators = 1
per shift
Shift =
Days/Nights
Require basic information at each of the stages.
Value Stream Mapping
How to Draw the Current State Map Material Flow

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Step - 01 Draw customer, supplier and production control icons.

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Step - 02 Enter customer requirements per month and per day
Step - 03 Calculate daily production and container requirements.

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Step - 04 Draw outbound shipping icon and truck with delivery frequency.
Step -05 Draw inbound shipping icon, truck and delivery frequency
Step - 06 Add process boxes in sequence, left to right.

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Step -07 Add data boxes below
Step -08 Add communication arrows and note methods and frequencies.

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Step -09 Obtain process attributes and add to data boxes.
Step -10 Add operator symbols and numbers.

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Step- 11. Add working hours.
Step- 12. Cycle and Lead Times
Step -13 Calculate Total Cycle Time and Lead Time

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Value Added:
Any process that changes the
nature, shape or characteristics
of the product, in line with
customer requirements e.g
welding, assembly
(Maximise)
Non Value Added:
Any work carried out, which
is necessary under current
conditions, but does not
increase product value e.g
setup, part movement,
tool changing, maintenance, etc
(Minimise)
Waste:
All other meaningless, non-
essential activities that don’t add
value to the product (Minimise)
Value Added, Non-Value Added and Waste
Value Analysis

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Value-Add (VA) vs. Non-Value-Add
(NVA) Analysis
• Purpose is to distinguish process steps
that customers are willing to pay for from
those they are not
• Objectives
• Identify and eliminate the hidden costs that do not add value for
the customer
• Reduce unnecessary process complexity, and thus errors
• Reduce the process lead time, improve PCE
• Increase capacity by better utilizing resources

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Value Classifications
CVA- Any activity in a process that
is essential to deliver the service or
product to the customer
( customers would be willing to pay for
this work if they knew you were doing
it)

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BNVA– Activities that are
required by the business to execute
VA work, but add no real value from
a customer standpoint.
NVA – Activities that add no value
from the customer's perspective and
are not required for financial, legal, or
other reasons

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Future – State Mapping
The Purpose of value-Stream Mapping is
to highlight sources of waste and
eliminate them by implementation of a
future-state value stream that can
become a reality within a short period
of time.
The Goal is to build a chain of production where the
individual processes are linked to their customers either by
continuous flow or pull, and each process gets as close
as possible to producing only what its customers need
when they need it.

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Some Test to asses the Leanness
• Calculate Stock Productivity
• Calculate OEE
• Process Cycle Efficiency (PCE)
• Changeover Time (COT)
• Competencies of People – Multi –Skilled

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Stock Productivity
Stock Productivity = Stock Turnover * Gross Profit Margin
PCE = (Total Processing Time/Lead Time)* 100
Process Cycle Efficiency
Overall Equipment Effectiveness (OEE)
OEE = Available time* Performance * Quality Rate

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Overall Equipment Effectiveness (OEE)
OEE = Available time* Performance * Quality Rate
Available time = Scheduled Time – Down time
Scheduled time
Performance Efficiency = Standard CT * Total Production
Actual Cycle time * Total Production
Quality Rate = Total Production – Total Rejected
Total Production

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1.What is the takt time based on the available working time of
your downstream processes that are closest to the customer?
2. Will you build to a finished good supermarket from which the
customer pulls or directly to shipping?
3. Where can you use continuous flow processing?
4. Where will you need to use supermarket pull systems in
order to control production upstream processes
Motto:
What can we do with what we have?
(Don’t think about Product design, Processing Machinery,
Remote location etc.)
Key Questions for the Future State..

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Lean Manufacturing is to get one process to make only what the
next process needs when it needs it. – Linking all processes –
from the final customer back to raw material – in a smooth flow
without detours that generates the shortest lead time, highest
quality, and lower cost
Takt Time – Synchronizes pace of production to match pace of
sales
TT = Available working time per day/ Customer demand rate
per day
Guideline -01: Produce to your takt time
What Makes a Value Stream Lean?

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PDF file –Takt time

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20
10
48
22
30
66
40
Line Balancing - Current State
TAKT 30’m
A B C D E F G Operation
1 1 1 1 1 1 1 # Operators
Total CT= 214’m
50
40
30
20
10
0

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20
10
24 22
30 28 30
Line Balancing – Future State
TAKT 30’m
AB C D E F G Operation
1 2 1 1 1 1 # Operators
Total CT= 164’m
Combined Operation
Increase labour + jig
Add shift
SMED, 5S
50
40
30
20
10
0

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DoingMoreWithLess History of Takt Time
Takt is a German word which refers to the
beat of music. It can also mean cycle, rhythm or
repetition time. Sometimes it refers to the baton
of an orchestra leader.
During the 1930's, Germany and Japan were part
of the Axis and German engineers helped
organize the Japanese aircraft industry. They
used the analogy of a conductor's baton setting
rhythm for the entire orchestra. After the war,
Toyota picked up the word and concept for its
Just In Time or TPS.

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Takt Time Pre-Requisites
• Provide fast response (with in takt) to
problems
• Eliminate causes of unplanned
downtime
• Eliminate changeover time in down
stream, assembly type processes
• High process capability – Low defect
rate

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Benefits of Takt Time
Production Stability- by limiting
overproduction, it stabilizes the system and
prevents buildups of inventory and the
subsequent stops and starts.
Workcell Design- Takt time helps cell
designers. In an ideal workcell, all tasks are
balanced, they all require the same time to
execute and that time equals the Takt time. If
any operation requires more than the Takt time,
the cell cannot produce at the necessary rate.

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Work Cell Design
Psychological- immediate feedback of performance
is a powerful motivator. When a workcell team tracks
takt time, they have a heightened awareness of
output rates and potential problems. They attempt to
achieve the Takt time on each cycle and immediately
make necessary corrections

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Guideline 02: Develop Continuous
FLOW wherever possible
Continuous flow refers to producing
one piece at a time, with each item
passed immediately from one process
step to the next without stagnation in
between.

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Cell Manufacturing
The concept of a small group of operators
performing all work necessary to make a
part , component or assembly is called cell
manufacturing.
The place where they work is called a
manufacturing cell.
There are both manual and automated cell

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Work Cell Operations
• Manual Process -An operator picks up the
material at the in box, walks from one station to
the next , performing the operation at each , then
drops off the completed material at the out box .
•The operator is able to produce one complete
unit with each circuit around the cell. The
process runs smoothly and continuously
producing as many as needed.

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Cell Operations – Cell with one operator
and Six Workstations
Operator
path
Raw materials – In box
Finished Items – out box

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Work Cell operations
•Typically cell is arranged in a U or L shaped
layout so the operator can easily reach
everything and step quickly from one station to
the next.
•The operator must be capable of performing the
operations at every workstation, including parts
inspection, equipment set up, and routine
maintenance

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One Piece Flow
One-Piece Flow is the
opposite of batch production.
Instead of building many
products and then holding
them in queue for the next
step in the process, products
go through each step in the
process one at a time,
without interruption.
Producing products one at a
time continuously improves
quality and lowers costs.

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Cell with two operator – Rabbit chase
In
out
1
2
1
5
4
3
2
6

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Cell with two operator – Divided Cells
In out
2
1
1
5
4
3
2
6

Cell Design
Work Cell Size:
Answer depends on the number and kinds of
operations required to make a part or product and
on the number of operators required to staff the
cell: Multi skills need only a fewer number
Number of Operators : e.g. 10-15
Number of Operations: e.g.5-8

Cycle Time and Cell Capacity
Takt Time : is the target – It is the rate at which the cell
should produce
Cycle time : is the rate at which the cell actually
produces
The actual cycle time of an assembly cell is determined entirely by the
amount of time operators in the cell need to perform assembly tasks and
move between stations
When the cell has only one operator, the actual cycle
time
CT = € Task times + € Walk times
Cell Capacity = Time Available/ CT

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Guideline 03: Use Supermarkets to control
Production where continuous flow does not
extend upstream
There are often spots in the value stream
where continuous flow is not possible and
batching is necessary

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• Some processes are designed to operate
at very fast or slow cycle times and need to
change over to serve multiple product
families
• Some processes , such as those at
suppliers are far away and shipping one
piece at a time is not realistic
• Some processes have too much lead time
or are too unreliable to couple directly to
other processes in a continuous flow

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Product Product
Supermarket
“Production”
Kanban
“Withdrawal”
Kanban
Supplier
Process
Customer
Process
A B
• Customer Process goes to supermarket and withdraws what it needs when it
needs it
• Supplying process produces to replenish what was withdrawn
• Purpose: Controls production at supplying process without trying to schedule
Use of Supermarket to Control Production

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Guideline 04: Try to send the customer
schedule to only one production process
By using supermarket pull systems, you will
need to schedule only one point in your door-
to-door value stream. This point is called the
Pacemaker Process, because how you control
production at this process sets the pace for all
the upstream processes.
The pacemaker process is frequently the most
downstream continuous flow process in the
door-to-door value stream.

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How to Implement
Lean

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How to make a Process Lean
• Asses the degree of Leanness
•Calculate Takt Time
• Identify Pace Maker
• Line Balancing
• Create a Continuous Flow
• Design Pull where it is necessary
• Scheduling and Load Leveling
• Identify Kaizen Projects

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Assessing the Degree Leanness
Category Score
Leadership 0%
Culture 0%
Communication 0%
Visual Workplace and Visual Manufacturing 0%
Operator Flexibility 0%
Continual Improvement 0%
Source Inspection(Poka Yoke) 0%
SMED/Quick Changeover 0%
Quality 0%
Supply Chain 0%
Balanced Production 0%
Total Productive Maintenance 0%
Pull Systems 0%
Standardized Work 0%
Accounting Systems 0%
Engineering 0%
Performance Measurement 0%
Customer Communication/ Satisfaction 0%

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