Lean - PPT (Lean manufacturing and six sigma)

Introduction to Lean
Prepared By:
Dr. K. Mathiyazhagan
.

GEMBA
GEMBA - "actual place”/ “shop floor” / “any place where value-creating work
actually occurs”
Also spelled “Genba”
Genchi Genbutsu = Go and See

1910: Henry Ford
Ford moves to Highland Park
Introduced assembly line technique of Mass production
Henry Ford
Founder – Ford Motor Company
T Model Ford

1911: Sakichi Toyoda
Sakichi Toyoda
Founder - Toyota
Training at the Ford Motor Company and Observation of
American Machinery Manufacturers
Eiji and Shoichi Saito
Managing Directors - Toyota
Conceptualization of
“Toyota Production System”

1938: Just in Time (JIT)
Just in Time (JIT)
▪ Making only “what we need, when we need it”.
▪ Downstream processes take what’s needed from upstream processes
JIT
JUST IN TIME
ZERO
LEAD
TIME
ZERO
INVENTORY
ZERO
FAILURE

Evolution of “Toyota Production System” (TPS)

1949: Taiichi Ohno- Promoted
Father of the Toyota Production System
Promoted as “Shop Floor Supervisor”
Devised the elimination seven wastes/ MUDA
First to implement KANBAN – To control the amount of work in processes
Why ? Why ?? Why ???
« Toyota Production System: Beyond Large-Scale Production »
« Workplace Management »

1975 : TPS Translated to English

1990 : James Wolmack
Conducted comparative studies on worldwide production
practices
Coined the term “Lean Manufacturing” [US] a.k.a
Toyota Production System
« The Machine That Changed the World,1990 »
Director -
International Motor Vehicle
Program
Founder &chairman-
Lean Enterprise Institute

The House of “Lean Manufacturing”

JIT Philosophy
The Just In Time (JIT) philosophy in the simplest form means getting the right
quantity of goods at the right place and at the right time (Reid and Sanders,
2007).
The philosophy is based on removing waste from business processes to achieve
a streamlined highly efficient system that provides low cost/high quality
products to support customer need.
Waste – Anything that does not add value.

Muda = "futility; uselessness; idleness; superfluity; waste"
Waste reduction is an effective way to increase profitability
MUDA

# 7 Wastes
Overproduction
Waiting
Inventory
Transportation
Motion
Over Processing
Rework
1
6
7
5 4
3
2
To produce sooner/faster
or in greater quantities
than customer demand.
Raw material, work in
progress or finished goods
which is not having value
added to it.
People or parts
that wait for
a work cycle to
be completed.
Unnecessary movement
of people, parts or
machines within
a process.
Unnecessary movement of people
or parts between processes.
Non right
first time.
Repetition
or correction
of a process.
Processing beyond
the standard
required by the
customer.
is the Japanese word for WASTE.
MUDA
Seek it out and get rid!
1
2
3
4
5
6
7
An 8th waste
is the wasted
potential
of people

Eliminating Waste
7 steps
1. Reduce lead time
2. Cut operations costs
3. Improve business performance visibility
4. Speed time to market
5. Fulfill customer expectations
6. Streamline outsourcing processes
7. Manage global operations

“The slower but consistent tortoise causes less waste and is
much more desirable than the speedy hare that races
ahead and then stops occasionally to doze. The Toyota
Production System can be realized only when all the
workers become tortoises.”
…. Taiichi Ohno
Taiichi Ohno

Three elements of JIT
Respect for
people
JIT
Manufacturing
Total Quality
Management
(TQM)

If you treat people right, they will treat you right ninety
percent of the time
…. Franklin D. Roosevelt
Respect

Business enterprises often forget their most important resource…their
EMPLOYEE’s
There is a waste of experience, talent and creativity when these “Human
Resources” are ignored.
People have good ideas.
Good ideas are the foundation of continuous improvement activities.
If the human element of JIT is not respected,
unnecessary costs are the consequences.
Respect for people – JIT human element

Key components of JIT
• Elimination of waste
• A broad view of operations
• Simplicity
• Continuous improvement (KAIZEN)
• Visibility of waste
• Flexibility to change based on customer needs

Tools of JIT
PULL system
(KANBAN)
Levelling Production
(Heijunka)
Flexible Resources
Cell Manufacturing
TQM System

Standardization
Standardization is a dynamic process by which we set standards
terminology, principles, methods, and processes within our organization.
The purpose of standardization is to stabilize , so as to achieve a base from
which to grow and improve.
Standardization elements:
• Management by TAKT time
• Workplace organization
• Standardized work
• Visual management

Steps in implementing JIT
1. Obtain commitment from the top management.
2. Gain Co-operation of the Work-force. Begin cross training of the work-
force.
3. Start with the Final Assembly. Reduce set-up time, level production,
achieve mixed model production.
4. Working backward from Final Assembly, reduces set-up times and lot sizes
in fabrication areas.
5. Balance fabrication rates with the final assembly production rates. This may
require correction of capacity shortfalls.

Steps in implementing JIT
6. Remove WIP inventories from the storage rooms and put it on the shop-
floor (Point of use storage).
7. Extend JIT to the vendors. First stabilize their delivery schedule and ask for
frequent deliveries. Help vendors with quality assurance, negotiate long
term contracts.
8. Remove purchased inventory from the store rooms & put it on the shop-
floor (Point of use storage).

Continuous improvement
A central theme of Just-in-Time is continuous improvement. This is a crucial
element because it stimulates 'improvement in all of the competitive variables
simultaneously.
In the JIT environment, achieving productivity and quality are seen as a
journey, and a continuous one at that.
The Japanese word Takumi means the continuous pursuit of, excellence.

Continuous improvement
The commitment to continuous improvement manifests in the activities of the
voluntary groups of employees known widely as “Quality Circles” (also called
by the name "Small Group Improvement Activities”).

Inventory
Inventory is at the minimum level necessary to keep operations running
JIT Inventory Tactics
• Use a pull system to move inventory
• Reduce lot sizes
• Develop just-in-time delivery systems with suppliers
• Deliver directly to point of use
• Perform to schedule
• Reduce setup time
• Use group technology

Reduce Variability
Inventory level
Process downtime
Scrap
Setup time
Late deliveries
Quality problems

Reduce Variability
Inventory level
Scrap
Setup time
Late deliveries
Quality problems
Process downtime

Lean Manufacturing
• Lean manufacturing is a methodology that focuses on
minimizing waste within manufacturing systems
while simultaneously maximizing productivity.
• Waste is seen as anything that customers do not
believe adds value and are not willing to pay for it.
• Some of the benefits of lean manufacturing can
include reduced lead times, reduced operating costs
and improved product quality

What Lean is NoT
• Laying off employees by the 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 to took lean

1. Defects
Defects impact time, money, resources and customer satisfaction. Examples
of Defects within a manufacturing environment include lack of proper
documentation or standards, large variances in inventory, poor design and
related design documentation changes and an overall lack of proper quality
control throughout the process workflow.
Formalized document control and design change documentation, thorough
and documented quality methods in all production phases and checklists that
have been audited to ensure proper adherence to the BOM are effective ways
to control defect waste. And standardized work at each production cell or
point in the production line will help reduce this type of waste as well.
• Specific Defect causes include:
• Poor quality control at the production level
• Poor machine repair
• Lack of proper documentation
• Lack of process standards
• Not understanding your customers’ needs
• Inaccurate inventory levels

2. Overproduction
• When components are produced before they are required by the next
downstream process, overproduction occurs. This has several negative effects.
It creates a “caterpillar” effect in the production flow and results in the creation
of excess WIP This leads to staging and therefore labor required to move the
WIP additional times. And it can hide defects that could have been caught with
less scrap if processes were balanced to allow detection earlier as earlier use of
the WIP components would have revealed the defect in time to correct the issue.
• Lean manufacturing systems utilize several tools to combat
overproduction. Takt time is used to balance production rates between cells or
departments. Measured and process-mapped jobs result in reduced setup time
allowing efficient small batch flow. And in many industries, “pull” systems
such as Kanban can be used to help control or eliminate WIP.
• Common causes of Overproduction include:
• Unreliable process
• Unstable production schedules
• Inaccurate forecast and demand information
• Customer needs are not clear
• Poor automation
• Long or delayed set-up times

3. Waiting
• Waiting can include people, material equipment (prior runs not finished) or
idle equipment (mechanical downtime or excess changeover time). All
waiting costs a company has in terms of direct labor dollars and additional
overhead costs can be incurred in terms of overtime, expediting costs and
parts. Waiting may also trigger additional waste in the form of defects if
the waiting triggers a flurry of activity to “catch up” that results in standard
work not being followed or shortcuts being taken.
• In many ways, waiting is the opposite of overproduction. However, it can
be mitigated or eliminated with many of the same remedies. Waiting is
often the result of poor process design and can be addressed through proper
measurement of takt time and the creation of standard work.
• Common causes of Waiting include:
• Unplanned downtime or Idle equipment
• Long or delayed set-up times
• Poor process communication
• Lack of process control
• Producing to a forecast
• Idle equipment

4. Non-Utilized Talent
• The eighth waste is the only lean manufacturing waste that is not
manufacturing-process specific. This type of manufacturing waste occurs
when management in a manufacturing environment fails to ensure that all
their potential employee talent is being utilized. This waste was added to
allow organizations to include the development of staff into the lean
ecosystem. As a waste, it may result in assigning employees the wrong tasks
or tasks for which they were never properly trained. It may also be the result
of poor management of communication.
• By engaging employees and incorporating their ideas, providing training and
growth opportunities and involving them in the creation of process
improvements that reflect the reality they experience and the skills they
possess, overall operational effectiveness is improved. The elimination of
this type of waste can improve all others.
• Examples of Non-Utilized Talent:
• Poor communication
• Failure to involve people in workplace design and development
• Lack of or inappropriate policies
• Incomplete measures
• Poor management
• Lack of team training

5. Transportation
• Poor plant design can cause waste in transportation. It can also
trigger other wastes such as waiting or motion and impact overhead
costs such as higher fuel and energy costs and higher overhead
labor in the form of lift drivers as well as adding wear and tear on
equipment. It may also result from poorly designed processes or
processes that have not been changed or updated as often as
required.
• Value stream mapping and partial or full changes in factory layout
can reduce transportation waste. This is a full documentation of all
aspects of the production flow and not just the mapping of a
specific production process. This results in changes to reduce or
eliminate transportation waste.
• Common types of Transportation Waste:
• Poor layouts – large distance between operations
• Long material handling systems
• Large Batch sizes
• Multiple storage facilities
• Poorly design production systems

6. Inventory
• Inventory is considered a form of waste because of the related
holding costs. This is true of raw materials, WIP and finished
goods. Over purchasing or poor forecasting and planning can lead to
inventory waste. It may also signal a broken or poorly designed
process link between manufacturing and purchasing/scheduling.
Lean Manufacturing does not just focus on the factory but also
requires process optimization and communication between support
functions.
• Purchasing, scheduling and forecasting can have a version of
standardized work in the form of defined minimums and maximums
and order points that are mapped to the process flow and takt
time. Purchasing raw materials only when needed and reducing
WIP and eliminating or narrowing the definition of “safety stock”
will reduce this type of waste.
• Common causes of Inventory Waste include:
• Overproduction of goods
• Delays in production or ‘waste of waiting’
• Inventory defects
• Excessive transportation

7. Motion
• Motion costs money. This not only includes raw materials but also people
and equipment. It may also include excess physical motion such as
reaching, lifting and bending. All unnecessary motion results in non-value-
added time and increases cost.
• Again, referencing core Lean Manufacturing methodology, process
mapping should include facility layout and optimized workplace design
that includes analysis of the distance of motion within the space as well as
the location of parts, supplies and tools within the space as well. As an
effective process map is developed, proper utilization of the space can be
captured with well designed and documented standard work.
• Common Motion Waste examples include:
• Poor workstation layout
• Poor production planning
• Poor process design
• Shared equipment and machines
• Siloed operations
• Lack of production standards

8. Excess Processing
• Excess processing is a sign of a poorly designed
process. This could be related to management or
administrative issues such as lack of communication,
duplication of data, overlapping areas of authority and human
error. It may also be the result of equipment design,
inadequate job station tooling or facility layout.
• Process mapping is a lean waste elimination tool that helps
define an optimized workflow that can eliminate over
processing. As a key method within lean production, process
mapping is not limited to the performance of production
tasks. It also includes reporting, signoff and document
control.
• Examples of Excess Processing include:
• Poor communication
• Not understanding your customers’ needs
• Human error
• Slow approval process or excessive reporting

Electric Drives
and Controls
Linear Motion and
Assembly Technologies Pneumatics Service
Hydraulics
Lean Manufacturing:
Principles, Tools and Methods
Improve productivity and increase profits through lean manufacturing
Version 2.5

Lean Manufacturing: Principles, Tools, and Methods
1
Bosch Rexroth Corporation
2
In today’s manufacturing environment,
assembly work is routinely character-
ized by short production cycles and
constantly diminishing batch sizes,
while the variety of product types and
models continues to increase. Constant
pressure to shorten lead times adds to
these demands and makes the mix truly
challenging, even for the most innovative
manufacturers.
The ability to respond quickly to rapidly
changing customer demands requires
the use of manufacturing systems that
can be re-configured and expanded on
the fly, and which can accommodate
advances in assembly techniques
without making any initial manufacturing
investments obsolete.
Lean manufacturing, an approach
that depends greatly on flexibility and
workplace organization, is an excellent
starting point for companies wanting
to take a fresh look at their current
manufacturing methods. Lean tech-
niques are also worthy of investigation
because they eliminate large capital
outlays for dedicated machinery until
automation becomes absolutely
necessary.
Indeed, the concept of lean manufactur-
ing represents a significant departure
from the automated factory so popular
in recent years. The “less is better”
approach to manufacturing leads to a
vastly simplified, remarkably uncluttered
environment that is carefully tuned to the
manufacturer’s demands. Products are
manufactured one at a time in response
to the customer’s requirements rather
than batch manufactured for stock. The
goal is to produce only the quantity
required and no more. And since limited
numbers of parts are produced, it may
be necessary to change processes
during the day--to accommodate differ-
1. Continuous
Flow
2. Lean Machines/
Simplicity
3. Workplace
Organization
4. Parts
Presentation
5. Reconfigurability
6. Product Quality
9. Ergonomics
8. Ease of Access
7. Maintainability
ent parts and to make maximum use of
personnel, equipment and floor space.
The flexibility inherent in manual assembly
cells is therefore preferable to automated
assembly. This requirement for maximum
flexibility creates unique demands on the
lean workcell and the components that
make up the lean workcell.
Granted, the lean approach is not the
solution for all manufacturing problems.
But it does offer a uniquely flexible
solution for assembling more complex
products. This guide describes 9 basic
lean manufacturing principles that should
help you evaluate lean manufacturing
solutions for your own applications.
The 9 principles discussed are:
Continuous Flow, Lean Machines/Sim-
plicity, Workplace Organization, Parts
Presentation, Reconfigurability, Product
Quality, Maintainability, Ease of Access,
and Ergonomics.
The 9 Principles
Introduction: The 9 Principles of Lean Manufacturing

3
A Typical U-Shaped Cell for Lean Manufacturing
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The preferred shape of the lean workcell
is U-shaped. Each subprocess is con-
nected to the next in order of process.
With the worker in the interior of the U,
minimum movement is required to move
the workpiece or assembly from one
workstation to the next.
Ultimately, one of the goals of the lean
workcell is to eliminate all non-value-add-
ed movement; hence its U-shape. When
the worker has finished the process, he
simply turns around and is back at step
one.
The workpiece may be carried from one
value-added operation to the next. How-
ever, there are times when the workpiece
or the fixture holding the workpiece is
too heavy and must be transferred me-
chanically between workstations.
Although very heavy parts may be trans-
ported on belt conveyors, manual push
or gravity conveyors are ideal for moving
parts between workstations. Their
minimum complexity makes them easy
to service and minimizes down time.
In addition, they are easy to connect
end-to-end, which makes it easy to move
workstations within a workcell.
The curved “corners” of the U-shaped
workcell can pose a problem. As
potential dead space, they may act as a
mini storage area, thereby encouraging a
return to batch processing. Instead, the
use of a ball roller transfer should facili-
tate part movement through the corners
of the U-shape.
Continuous Flow:
• U-shaped cell
• Connect sub-processes
• Value-add-to-value-add operation
• Machines in order of process
• Parts arrive as needed
• Counterclockwise flow
• One-piece flow (small lot flow)
• Non-cyclical work done outside
cell by support people
Benefits:
Elimination of non-value added move-
ments, work in process, and inventory.
Fig. 1b: Ball roller transfer
Fig. 1a: Simple roller conveyor for
movement of heavy parts.
1. Continuous Flow

5
Since continuous-flow, one-at-a-time
manufacturing is another goal of lean
manufacturing, it is important that each
workstation or machine be designed to fit
within a minimal envelope. The minimal
envelope ensures the elimination of
excess flat space at the workstation or
machine. This is done to avoid the pos-
sibility of storing parts or subassemblies
at the machine. Storing parts increases
work in process and results in “batch”
processing, which subsequently defeats
the purpose of lean manufacturing. In
addition, smaller, minimal size worksta-
tions and machines eliminate unneces-
sary steps taken by the worker between
subprocesses.
Finally, significant floor space may be
saved by properly sizing workstations
and machines. Although tempting for the
sake of conformity and standardization,
the deployment of standardized machine
bases or workstations for all processes
should be avoided. Each machine base
or workstation should be designed to
optimize assembly subprocesses, which
in most cases will vary from workstation
to workstation. This customization can
be achieved with virtually any structural
material. To save on cost, however, as
well as to minimize the environmental
considerations related to disposing of
inflexible welded steel structures, prefer-
ence should be given to material that is
reconfigurable and reusable. The modu-
lar characteristics of extruded aluminum,
bolt-together systems make them perfect
for the implementation of lean manufac-
turing concepts.
Moreover, in a continuous improvement
environment, all workstations and work-
cells must be easy to modify as process
improvements are identified. In addition
to their superior flexibility in layout and
design, lightweight aluminum structures
are easier to move when re-configuration
is necessary. Casters may be quickly
mounted to the T-slotted profiles to allow
movement without the use of fork trucks
or other lifting equipment.
Lean Machine Basics:
• Continuous flow
• Save factory floor space
• No excess production
• No extra shelf/drawer space
Benefits:
One-at-a-time manufacture, quick
production changeover, reduced
WIP, easily modified, customizable
production
Fig. 2a: Bolt-together structural framing
system
Fig. 2b: Any processes should take
place in a minimal work envelope
2. Lean Machines/Simplicity

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6
A smooth, uninterrupted flow of complet-
ed workpieces is the desired result of a
properly designed lean workcell. Nothing
can slow or stop this flow faster than the
loss or misplacement of tools. Thus, all
tools used at a workstation should have
their own holder. There should be exactly
as many holders as there are tools so
that the absence of a tool is quickly
noticed. Using a modular tool holder sys-
tem with a specific holder for each tool
is ideal. If holders can easily be added
to or taken away from a workstation, this
simply adds to the flexibility of the work-
station and increases its usefulness in a
lean manufacturing process.
To minimize downtime, backup tools
should also be available at any auto-
mated workstations. These tools should
be out of the worker’s way until a failure
occurs at the automated workstation. Of
maximum benefit are tool holding struc-
tures that allow tools to be swung or slid
into the work space and easily returned
to the storage position when no longer
needed.
Information Boards
Naturally, the ready availability of work-
critical information also adds to effi-
ciency in a workcell. Supplying the right
information at the workplace, such as
assembly processes, work instructions,
repair procedures, or even production
targets, allows workers to make the right
decisions and act on them on the spot,
limiting downtime often spent chasing
down a busy supervisor.
As with everything in a lean workcell, the
information board should be simple, easy
to reposition, and reusable.
Workplace Organization
Basics:
• Organize tools with appropriate
tool holders
• Provide back-up tools at automatic
stations
• Insist on flexible tool mounting
structures
• Put the right information where it’s
needed
Benefits:
Minimize downtime, reduce wasted
motion, uninterrupted workpiece flow,
improve quality
Fig. 3b: Modular tool holders
3. Workplace Organization
Fig. 3c: Information Board
Tool holders
Fig. 3a: Mount for backup tool

7
Naturally, during the average work shift,
additional parts will be required for the
workcell. Traditional methods of resup-
plying workstations are not useful in a
lean workcell. Each worker should go
about his work with the minimum number
of interruptions. Therefore, all parts
should be supplied to each workstation
from outside the workcell. The use of
gravity feed conveyors or bins fits the
simplified design of the lean workcell.
Parts bins should load from behind (out-
side the working area of the workcell) so
that the worker may continue production
without interruption. Gravity carries the
parts to the worker’s reach area. Bins
should also be reconfigurable. The bins
in the photo use a key stud to lock them
in position. Bins are easily stackable and
provide the ultimate in flexibility when
reconfiguring the workplace.
Although bins are ideal for small parts,
many assemblies require larger parts.
These may be delivered in bins or boxes.
Again the parts should be delivered to
the workcell without entering the work
space. Gravity feed conveyors serve this
purpose well. In the event that scrap or
containers must be removed from the
cell, an additional gravity feed conveyor
may be mounted in the reverse direction.
In instances where parts are very heavy,
lift assist devices are recommended.
Heavy parts or boxes of parts can be
loaded onto a case lifter and raised to
the proper work height with electric,
pneumatic, or hydraulic power.
Fig. 4a: Flow Rack
Fig. 4b: VarioGrab bins
Fig. 4c: Case Lifter
4. Parts Presentation
Parts Presentation Basics:
• Supply parts as needed
• Parts loaded from outside the cell
• Use gravity feed as the preferred
method
• FIFO parts presentation
Benefits:
Easy reconfiguration, reduce wasted
motion, uninterrupted production, quick
changeover

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A properly designed lean workcell must
be easy to reconfigure. In fact, the ability
to change the process and go from good
part to good part as quickly as possible
is a must. The faster the changeover, the
less production time is lost.
Quick-change fixtures are one way this
can be accomplished. With a good
quick-change fixture, changeover can be
accomplished in a matter of seconds.
A number of different fixtures may be
stored at the workstation and swapped
as the situation requires.
In Fig. 5a, for example, an assembly fix-
ture is locked to the T-slot at the front of
a workbench with a star knob and quarter
turn connector. Once the assembly of
a specific product is complete, a new
fixture can be easily positioned.
At times, due to process changes or
other factors, a lean cell must be quickly
reconfigured or even moved to accom-
modate assembly of a new product. In
the event that a machine or workstation
must be changed, the ability to move
each component of the workcell quickly
becomes extremely important. Lockable
casters on machines or workstations
provide the mobility necessary for rapid
and efficient changeover.
Reconfigurability Basics:
• Fixtures must be easy to change
• Mobility is critical
• Good part to good part as quickly
as possible
Benefits:
Minimize downtime, quick changeover,
uninterrupted workpiece flow
Fig. 5b: Casters on a machine stand
Fig. 5a: Quick change fixture
5. Reconfigurability

9
One of the results of one-at-a-time manu-
facturing is a decrease in quality prob-
lems. As each part is produced, visual
inspection by the worker can verify that it
is correctly assembled. If verification is
required through gages, they should be
mounted to the machine or workstation
and be easily replaced. Quick release of
fixtures using star knobs or locking levers
is a necessity.
There may be time when a quality
problem cannot be easily fixed. A flawed
process or malfunctioning machine may
be the source of the quality problems.
In the case of a flawed process, the
structural framing system allows chang-
es, no matter how great, in a minimum
amount of time. Once again, bolt-togeth-
er construction solves a major problem in
minimum time.
A malfunctioning machine may also
be easily replaced, particularly if quick
disconnects for all pneumatic or electric
lines are provided for when the lean cell
is designed. In addition, no pneumatic or
electrical connections should be present
between machines in the lean cell. These
would slow the changing of the machines
within the cell.
Once the machine has been discon-
nected from all power sources, it can be
easily transported if mounted on lockable
casters.
Ease of reconfiguration and changeover
eliminate any reluctance on the part
of the worker or management to try to
“make do” with machines or processes
that are “almost” right. This change in
attitude can contribute greatly to true
quality production.
Quality Basics:
• Visual inspection is the primary means of quality assurance
• Test fixtures & gages must be easy to replace or change out
• Easy reconfiguration encourages changes for quality’s sake
Benefits:
Immediate feedback on quality as workers inspect parts; platform for continuous
improvement; eliminate rework areas; encourage changeover to solve “minor” quality
problems; greater quality assurance by giving the responsibility to the assembler;
rapid change of quality gages as assembled product or process changes.
6. Quality
Fig. 6: Visual Inspection verifies parts are correctly assembled and function properly.

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7. Maintainability
Maintainability Basics:
• Ease of service
• Manual back-up
• Put the operator manual on the
machine
• Standardize as many components
as possible
• Use common tools and fixtures
• No finish work required on system
components.
• Minimum spare parts necessary
Benefits:
Minimum down time, easy-to-source
replacement parts, quick service
Ease of service is another requirement of
a lean cell. Long down times cannot be
tolerated in a pull-through system. When
customer demand exists, the product
must be produced. A modular structural
framing system provides the ultimate in
maintainability.
Components can be replaced or recon-
figured in a matter of minutes. Bolt-
together construction ensures machine
stands, guards, workstations, or parts
presentation equipment can be serviced
in a matter of minutes. Even entire ma-
chine bases can be rebuilt in a minimum
amount of time.
The structural framing system also
provides a source for common com-
ponents for all machine bases, guards,
and workstations. With standardized
components, a minimum number of tools
is required to maintain a structure. With
a structural framing system, three or four
simple hand tools are sufficient to build
or repair any structure.
Another benefit is that common com-
ponents eliminate the need for a large
inventory of spare parts. It is possible
to standardize on one size of aluminum
profile, one or two connectors, and a
few accessories to create virtually any
structure.
Finally, no finish work is required with an
aluminum structure. No welding or paint-
ing is required. Repairs can be accom-
plished in the minimum amount of time.
Fig. 7: A lean cell constructed from
modular aluminum framing provides for
easy maintenance and repair

11
Using an aluminum framing system as the
foundation of a lean cell, all necessary
work components can be mounted in
easily accessible locations because each
surface is a potential mounting surface.
Parts bins, tools, shelves, and fixtures
can all be positioned in the optimum
location for efficient work. The T-slot on
the framing system’s surface also allows
quick repositioning of pneumatic or
hydraulic components if clearance space
is critical (Fig. 8a).
Components may be added quickly to
any workstation and easily repositioned
to insure accessibility for each worker.
In addition, entire guards or individual
panels (Fig. 8c) can be removed quickly
with simple hand tools, enabling service
technicians to perform maintenance in a
matter of minutes.
8. Ease of Access
Fig. 8a: Valves mounted to T-slot
Fig. 8c: Machine guard with sliding access doors and easy to remove panels
Fig. 8b: Accessibility in workstation
design
Accessibility Basics:
• All controls or fixtures positioned
with ergonomics in mind
• All serviceable components at rear
of machine/workstation to elimi-
nate interference of maintenance
personnel with production
• Clearance for all tools for ease of
use
• All guards easy to remove with
simple hand tools
Benefits:
Minimum down time, easy serviceabil-
ity, optimum ergonomic design.

1
12
Ergonomics Basics:
• Position workpiece at optimum
height for worker
• Use NIOSH standards to de-
termine maximum lifting loads
• Position all tools within the
worker’s field of reach
• Provide lighting sufficient to
accomplish the task
Benefits:
Fewer work-related injuries, lower
employee turnover, better work-
ing environment, fewer cumulative
trauma problems
9. Ergonomics
Fig. 9b: Case Lifter
Finally, the worker must be protected
from ergonomic problems. Any prop-
erly designed lean workcell must, by
definition, be ergonomically designed.
Maintaining the work at the ergonomically
correct height throughout the workcell is
always important. Although it is frequent-
ly not taken into consideration, designing
for the average worker height is also a
necessity. Since average heights vary
from country to country, the height of a
machine or workstation must be easily
changed if there is any chance that a
workstation may be shipped from country
to country.
Lifting
Lift assist devices must be considered
where the weight of parts or boxes of
parts exceeds lifting standards. In this
case, pneumatic, hydraulic, or electric
devices may be used, but it is important
to keep in mind that simpler is better in
lean manufacturing cells.
In order to prevent delays in manufactur-
ing caused by faulty design, a software
package that allows you to test the
ergonomics of a workcell before the
Fig. 9a: Proper height is critical in any
lean workcell
Height
workcell is constructed can be a power-
ful tool. Use of such a software package
lets you settle ergonomic issues in the
design stage rather than on the factory
floor, providing significant potential
savings in both time and money.
Fig. 9c: Software for Ergonomic
Workstation Layout

13
With all of its promise, the lean cell may
not be the answer to all assembly needs.
At times the U-shaped configuration
simply does not fit the existing facility or
process, and a change from automation
or semi-automation to lean cell manufac-
turing could be counterproductive.
In keeping with the flexibility requirement
for lean manufacturing, there may be
times when a hybrid system rather than a
pure lean system is best for the manufac-
turing process.
Hybrid manufacturing systems combine
the economies of the lean system with
the safety and efficiency of an automated
Final Considerations: Hybrid Systems
system. The result is a system in which
some assembly is done manually while
more dangerous or ergonomically difficult
tasks are accomplished by machine.
In a hybrid system, workstations or cells
may be combined with non-synchronous
assembly conveyor systems to achieve
desired production goals. The synergy
between these two technologies can
produce results far beyond the capabili-
ties of either technology alone.
It is also possible to accomplish assem-
bly in a lean cell and to have operations
which are purely automated take place
off line.
In this case, the automated portions of
the process supply sub-assemblies or
parts to the lean cell. Here, although the
technologies are separated, both are still
required to accomplish the task at hand.
The key to hybrid implementation is
construction with components which
are easily reconfigured. Bolt together
technology fits the description per-
fectly. Flexible assembly systems using
aluminum framing as the main structural
element allow companies to mix and
match manual and automatic operations
at will, and to change them at any time in
the future. The result is a worker-friendly,
economically-sound system designed for
optimum production.

1
14
Bosch Rexroth - Your Partner in Lean Manufacturing
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The Bosch Rexroth Structural Framing Network
BOSCH REXROTH
Buchanan, MI
A switch to lean or hybrid manufacturing may entail radical changes in plant layout and equipment design. To ensure that you
implement these changes smoothly and efficiently, you need a partner - Rexroth. Bosch Rexroth Corporation has a network of
stocking distributors nationwide. In addition to local inventory, each distributor has Rexroth design experts on staff to assist you
with your lean manufacturing projects.
Once your equipment is designed, your Rexroth distributor will provide machining, assembly, and other value-added services to
move your project to a successful conclusion. Each Rexroth distributor is backed by more than 100 years of experience and
quality. And worldwide availability of all Rexroth products ensures successful implementation even when lines are moved abroad.
For lean manufacturing solutions, count on Bosch Rexroth Corporation as your expert partner.

15
Bosch Rexroth Corporation supplies the U.S. market with flexible manufacturing equipment for every manufacturing need.
All Rexroth components are modular to provide maximum flexibility for easy reconfiguration and rapid manufacturing
changeovers.
For years, Rexroth has supplied manufacturers worldwide with a broad range of ergonomic components ideally suited for
lean manufacturing: easily customized workstations, tool holders, information boards, parts bins, and a broad range of work-
station accessories. Combined with the Rexroth Aluminum Structural Framing System, these components let manufactur-
ers build exactly the work environment required to match the parts, workers and workcells to their manufacturing processes.
If you’ve never used our aluminum structural framing before, you’ll be surprised how easy it is. And our customer support
system makes it even easier. For fastest service, order from your distributor on-line at www.boschrexroth-us.com/framing.
It’s a fully functional online catalog, now with an easy-to-use workstation configurator.
Bosch Rexroth Corporation is also the world’s leading supplier of power and free non-synchronous assembly conveyors.
These conveyors, in concert with the workplace equipment and structural framing system products, place Rexroth in a
unique position as a supplier of overall factory automation. With this family of products, hybrid lean manufacturing systems
are available from a single source, with completely interchangeable structural components.
When you’re ready to order, you have several options. Call us toll-free at 1-800-REXROTH (739-7684) for the name of your
local distributor, or follow the step-by-step ordering instructions at our website. A nearby Rexroth distributor will ship your
order promptly. The Rexroth customer support system gives you tremendous flexibility to meet tight schedules and budgets.
Bosch Rexroth invites you to specify the leader in lean manufacturing - Specify Rexroth!
NEW! Visit our lean resource center on the web: www.boschrexroth-us.com/lean
Bosch Rexroth, the world brand leader in structural framing
systems, ergonomic workstations and flexible assembly conveyors

Corporate Headquarters
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Telephone (847) 645-3600
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Hydraulics
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Telephone (610) 694-8300
Facsimile (610) 694-8467
Electric Drives and Controls
5150 Prairie Stone Parkway
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Facsimile (847) 645-6201
Pneumatics
1953 Mercer Road
Lexington, KY 40511-1021
Telephone (859) 254-8031
Facsimile (859) 281-3491
Hydraulics
8 Southchase Court
Fountain Inn, SC 29644-9018
Telephone (864) 967-2777
Facsimile (864) 967-8900
Printed in the United States
8981 500 246 (11.2009)
Linear Motion and
Assembly Technologies
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Telephone (269) 695-0151
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www.boschrexroth-us.com

Value & Non Value added activities

Documentation of the
non-value-added steps

Layouts & Cellular
Manufacturing

Factors influencing Plant Layout
• Factory Building
• Nature of Product
• Production Processes
• Types of machinery
• Repair & Maintenance
• Human Needs
• Plant Environment
• Management Policies

The production process normally determines the
type of plant layout to be applied to the facility:
• Fixed position plant layout
Product stays and resources move to it.
• Product oriented plant layout
Machinery and Materials are placed following the product
path.
• Process oriented plant layout (Functional Layout).
Machinery is placed according to what they do and materials
go to them.
• Combined Layout
Combine aspects of both process and product layouts

Logic of Product Layout
This type of plant layout is useful when the production
process is organized in a continuous or repetitive way.
Continuous flow : The correct operations flow is reached
through the layout design and the equipment and
machinery specifications.
Repetitive flow (assembly line): The correct operations
flow will be based in a line balancing exercise, in order to
avoid problems generated by bottle necks.
The plant layout will be based in allocating a machine
as close as possible to the next one in line, in the correct
sequence to manufacture the product.

Advantages of Product Layout
1. Low material handling cost per unit
2. Less work in process
3. Total production time per unit is short
4. Low unit cost due to high volume
5. Less skill is required
6. Smooth, simple and direct flow
7. Inspection can be reduced
8. Delays time is reduced
9. Effective supervision and control
10. Better utilization of men and machines

Disadvantages
• Morale problems and to repetitive stress injuries.
• Lack of maintaining equipment or quality of output.
• Inflexible for output or design
• Highly susceptible to shutdowns
• A high utilization of labor and equipment
• Preventive maintenance, the capacity for quick repairs,
and spare-parts inventories are necessary expenses
• Incentive plans tied to individual output are impractical

Process layout
Process layouts are designed to process items or provide
services that involve a variety of processing requirements.

Logic of Process Layout
• This type of plant layout is useful when the production
process is organized in batches.
• Personnel and equipment to perform the same function
are allocated in the same area.
• The different items must move from one area to another
one, according to the sequence of operations previously
established.
• The variety of products to produce will lead to a diversity
of flows through the facility.
• The variations in the production volumes from one
period to the next one (short periods of time) may lead to
modifications in the manufactured quantities as well as
the types of products to be produced.

Product & Process layout comparison

Types of layout based on quantity

Group technology/ Cellular Layout

Cellular manufacturing
Organizing the production equipment into machine
cells, where each cell specialize in the production of
a part family is called cellular manufacturing.
➢It is an application of group technology in
manufacturing.
➢Cellular manufacturing can be implemented by
manual or automated methods.
➢When automated, the term flexible
manufacturing is applied.

Cellular Manufacturing
Product A, B, C different part families.
Cell 1,2,3-set of machines to produce part
families.

SINGLE MINUTE EXCHANGE OF
DIES (SMED)
OR
QUICK CHANGEOVER

SMED
SMED (Single-Minute Exchange of Die) is a system for
dramatically reducing the time it takes to complete equipment
changeovers. The essence of the SMED system is to convert as many
changeover steps as possible to “external” (performed while the equipment
is running), and to simplify and streamline the remaining steps. The name
Single-Minute Exchange of Die comes from the goal of reducing
changeover times to the “single” digits (i.e., less than 10 minutes).

Before & After SMED
Before
After

History of SMED
• Single Minute Exchange of Dies
• Developed by Shigeo Shingo
• A system designed to radically reduce the amount of time to perform a changeover or
setup
The concept arose in the late 1950s and early 1960s, when Shigeo Shingo, was consulting to
a variety of companies including Toyota, and was contemplating their inability to eliminate
bottlenecks at car body moulding presses.
• 1950-Forms first stage of SMED : Involves splitting a setup operation into internal and
external set ups
• 1956-58—Worked for Mitsubishi Ship buildings
• Invents a new system for hull assembly of 65,000 ton super-tanker
• Cut time from four months down to three and than two months
• 1970-Originated SMED system at Toyota
• Wrote more than 14 books
• Including Toyota Production System

Applying the methodology to business
example the externalization of an area of
business

SMED process
1. Observe the current methodology.
2. Separate internal and external Operations.
3. Identify the tasks which can be eliminated.
4. Convert maximum internal operations to external
Operations.
5. Streamline the remaining Internal activities.
6. Streamline External activities.
7. Document the new procedure and the actions that are
yet to be completed.
8. Do it all again.

How do we use SMED in industry

Benefits of SMED
A successful SMED program will have the following benefits:
• Lower Manufacturing Cost: faster changeovers mean less
equipment downtime
• Smaller Lot Sizes: faster changeovers enable more frequent
product changes
• Improved Responsiveness to Customer Demand: smaller lot
sizes enable more flexible scheduling
• Lower Inventory Levels: smaller lot sizes result in lower
inventory levels
• Smoother Startups: standardized changeover processes improve
consistency and quality

Example for SMED (F1 Car race)
Pit stop in F1 Race

Example of SMED (Daiquiri is a family of
cocktails)

Lean Material Handling & Control
What is Lean Material Handling?
• The concept of lean manufacturing boils down to a core purpose, and
that purpose is to strive towards eliminating waste from the
manufacturing process relentlessly.
• To fully understand this straightforward and seemingly simplistic
definition, you need to be aware of what is referred to as “waste” in this
context. “Waste” is any activity during the manufacturing process that
doesn’t add value for the customer and the manufacturer.
• Getting rid of this “waste” is the ultimate goal of lean manufacturing
techniques. In a nutshell, lean manufacturing is a systematic method of
minimizing waste without sacrificing productivity.
• Lean manufacturing is considered one of the most important solutions
for lean material handling.

The Importance of Lean Manufacturing
and Material Handling
• Simply put, lean manufacturing and material handling are critical in the
sense that these are focused on the recognition and elimination of wasteful
activities with the goal of increasing product flow and speed.
• They also improve productivity. Many companies implement concepts of
lean manufacturing and material handling with the core intention of
doubling or even tripling their productivity.
• Lean manufacturing also offers a wide array of other benefits. It improves
customer service.
• It brings down manufacturing costs. And it reduces the manufacturing
department’s impact on the natural environment.
• Material handling is “the movement, protection, control, and storage of
products and materials”. This process means that it plays a role in critical
processes like “manufacturing, warehousing, distribution, consumption,
and product disposal”. The applications used during material handling
help with the following: forecasting, production planning, inventory
management, and control, after sales support and service, resource
allocation, flow and process management, and custom delivery.

Why Lean Material handling?
• Lean in material handling and control, from the shop floor and out
into the extended supply chain, needs to be reexamined for two
reasons.
• First, the majority of lean efforts to date have been based on tools
and their deployment. Instead, lean should be about principles, or
thinking, including the constant progress toward an image of the
ideal state of the process. Many companies state this in training but
in practice the focus is still on the tools.
• The second reason is that lean in material management has always
been an extension of lean in manufacturing. Just copying or
extending lean manufacturing can be a mistake. Instead, material-
handling managers need to take a fresh look at what lean material
management is all about. Five key concepts must be integrated into
any lean approach to material management.
• Concept No. 1: Avoid the information blizzard
• Concept No. 2: Eliminate white space
• Concept No. 3: Right-size everything
• Concept No. 4: One inch is still transport
• Concept No. 5: Eliminate functional tunnel vision

Concept No. 1: Avoid the information
blizzard
• Most material management systems are similar in nature.
People, companies and machines make many independent
decisions.
• But each needs only a few critical pieces of information to
make effective decisions, for example, when the person in
front of them puts on their brakes.
• Material managers should design systems that give people
exactly what information they need to determine their next
action and nothing more.

Concept No. 2: Eliminate white space
• Every activity, whether it involves handling material or information,
has both a beginning and an end.
• But the next person's activity often does not pick up exactly where
the previous activity left off.
• There is white space in between. If you fill out section A of a form
and send it to have section B completed, anywhere from one to 20
people may touch it in between. This is where the waste can be
found.

Concept No. 3: Right-size everything
• I hardly enter a warehouse or distribution operation without hearing
someone say, "We need updated software, more space and more
capable equipment." While life may be easier with all of these things,
it doesn't make you any better if you improve expenses by 10 percent
but add 300 percent to capital requirements.
• Likewise, if someone buys a piece of software and only uses half of
the features, that is waste. The person who bought the software will
insist that they have to use more of the features. But if those features
don't add value, they shouldn't be used and more importantly, they
shouldn't be bought.

Concept No. 4: One inch is still
transport
• In the telecommunications industry tremendous bandwidth was
created throughout the infrastructure except for one nagging link,
"the last mile" into homes and businesses.
• While much of the infrastructure was there it wasn't well utilized
because people could not get the data in or out very quickly.
• That problem has been mostly solved now, but a similar problem
exists in material management.

Concept No. 5: Eliminate functional tunnel
vision
• Current reality is not always what it seems. I once asked a plant
management team to describe what lean means to them. The quality
manager said "error proofing and firsttime through capability."
• The industrial engineering manager responded "efficient job layout and
standard work instructions." The maintenance manager mentioned
"total productive maintenance" while the controller focused on cost
reduction.
• The materials manager had an answer that was as narrowly focused:
"it's about pulling material and reduction of inventory." None of these
answers were wrong, they were simply incomplete.

Principles of Material handling
• Planning Principle
• Standardization Principle
• Work Principle
• Ergonomics Principle
• Unit Load Principle
• Space Utilization Principle
• System Principle
• Environment Principle
• Automation Principle
• Life Cycle Cost Principle

Lean Purchasing
• The idea was to produce enough to meet the country's needs, but by
using minimal resources. With this in mind, the basic foundations of
industrial methods, principles and tools were established and are still in use
today, such as visual management, for example.
• In the 1980s, MIT (Massachusetts Institute of Technology) reworked and
refined these concepts to turn them into internationally renowned methods
that we are all aware of today.
• Today, lean purchasing goes hand in hand with operational excellence.
Initially used to manage physical fluctuations, the concept can now be
applied to any situation, even procurement departments.
This philosophy is based on two major factors:
• Buying less: carefully controlled and optimised consumption in line with the
real needs of both the company and internal customers
• Buying better: simplification and standardisation of processes, optimisation
of productivity and services (deadlines, punctuality etc.)

• While cost reduction and efficiency is always an area of focus for procurement, technology
can help enable a Lean procurement strategy to reap the full reward.
• A growing number of companies are adopting innovative procurement technologies to
increase efficiency in these uncertain times, according to a 2016 Deloitte Global CPO
Survey.
• Most procurement executives said they were investing heavily in innovative technology
solutions:
• 70% were investing in self-service portals
• 45% were investing in cloud based computing
• 42% were investing in mobile technologies
• 16% were investing in social media technology
• Spend analysis is the largest focus for technology investments (38% of executives
responding to the survey said this area is most likely to receive investment), followed by
contract management (37%), e-sourcing tools (30%), supplier relationship management
technology (29%), and requisition-to-pay solutions (24%).
• However, the majority of procurement organizations do not have a clear digital strategy in
place—60% of procurement executives stated that they hadn't yet formulated such a
strategy.
• Surprisingly, while involvement in risk management and mitigation is a growing area of
focus for procurement executives, only 25% are involved in it now.

Challenges of Lean Purchasing
A disproportionate amount of waste in a value chain is directly linked to
procurement processes not working properly. Companies often lack clarity over
their supply chain and therefore struggle to localise and differentiate value from
waste.
Balancing procurement related activities that are “necessary waste” with those that
create value presents an ongoing struggle for companies of all sizes. The benefits of
applying Lean Principles for procurement managers and purchasing activities can
dramatically affect a company’s cash flow and its bottom line.
APPLYING LEAN TO QUESTIONS LIKE THESE, CAN ENSURE A
COMPETITIVE EDGE:
• How do you prevent production disruptions due to inventory or material
shortages and still remain flexible to meet changes in customer demand or cope
with market volatility?
• How does a company reduce its working capital investment in carrying inventory
at the right levels while at the same time maximising reaction time?
• How does a company optimise buying quantity?
• How can a company move from reactive to proactive purchasing operations?

Lean Solutions for purchasing
• Designing and implementing a Lean procurement management process can
dramatically change the way a company does business. A clear and
standardized process to source materials or parts and just-in-time inventory
policies reduces the burden on the balance sheet as well as stabilizes the entire
value chain.
• Suppliers selected and assessed the same way will have the same purchasing
structure and can be more easily integrated into flexible production processes.
Being reliable and flexible means a competitive edge.
• We implement Lean Solutions in procurement functions in a similar way to
other functions. The solutions must fit the challenges without sacrificing
quality, increasing lead time and costs.
• PULL
• ONE PIECE FLOW
• TAKT
• ZERO DEFECTS

Lean Solutions
PULL
• Enable FIFO at the batch level
• Reduce inventory levels throughout processes
• Avoid over-production
• Increase visibility of bottlenecks in the
process
ONE PIECE FLOW
• Enable FIFO to a single product / service
level
• Create transparency of the real process lead
time
• Reduce lead time
• Reduce inventory levels throughout process
• Increase quality
• Reorganise the processes in the right sequence
TAKT
• Process transparency
• Balanced distribution of the workload across
resources
• Process flexibility
• Ability to plan resource capacity and / or
improve
forecasting
• Optimal efficiency in resource utilisation
ZERO DEFECTS
• Enables problem root cause analysis and
solving
• Prevents problems snowballing through the
process
• Increases quality
• Enables an open culture of problem solving
vs. finger pointing

Tangible Improvements
LEAD TIME
• Implementing inventory reporting and accuracy standards allowed for faster decision
making and ordering reducing lead time for non-standard items by four hours - 50%
• Optimising an insurances claims process decreased average throughput time from
nine business days to just under four business days (-56%)
COSTS
• Inventory accuracy improvements from Lean MRP solution reduced inventory by
EUR 2.5 million
QUALITY
• Optimising and standardising B2B data exchange process decreased supplier caused
defects 98% over the entire process
• Lean MRP solutions helped inventory reconciliation to be minimised to an annual
activity increasing inventory data quality
• Optimising an insurances claims process decreased errors by 98% over the entire
process

What is Lean Transformation
• Lean transformation is a term used to describe the strategic, tactical,
and operational improvements that organizations undergo in order to
create more value for their customers.
• These improvements represent a fundamental, collective shift in
business mentalities away from traditional business practices toward a
more value-driven, streamlined approach.
• There is no single approach to Lean transformation: In some
organizations, Lean begins as a grassroots effort, led by a single team or
department, and eventually spreads throughout the organization. In
others, the call for Lean transformation comes from the top, and
involves a strategic, coordinated effort to embrace Lean practices,
principles, and business structures.
• However, the goal for all Lean initiatives tends to be consistent: To
enable organizations to sustainably deliver more value for their
customers.

Why is Lean Transformation
Important?
• In the fast-paced, ever-evolving world we live in, the ability to
deliver value efficiently and predictably is more important than
ever. And the efficient, predictable delivery of value is what Lean
is all about.
• Lean transformation enables companies to make that fundamental
shift from surviving to thriving by removing those organizational
structures, practices, and modes of thinking that inhibit the
efficient delivery of value.

The Lean Transformation Model
• Although not every organization approaches Lean transformation in
the same way, there are five key components that all successful
transformations share. They are:
• A value-driven purpose
• Continuous process improvement
• Sustainable capability development
• Lean management system
• Lean thinking, mindset, assumptions

Lean Role
Difference between Six Sigma & Lean
Lean Six Sigma and Six Sigma are both systems for streamlining
business processes and reducing waste, but they're not identical.
• Six Sigma reduces variation and Lean reduces waste.
• In simple, the focus of Six Sigma is on the customer and the end
product, while Lean Six Sigma focuses on waste and production
methods. If you are an experienced professional and have supported
quality improvement projects, Six Sigma Green Belt is good for you.

Lean Role
General Expectations
• Incremental improvements are better than no improvements
• Lean methods/tools are used to create capacity (where people state they are too
busy)
• Lean is used to solve a wide variety of operational problems
Use Lean methods and tools as part of a career development:
• Frontline employees learn effective problem solving skills
• Managers can use Lean projects to help give their staff leadership opportunities
• Leaders can use Lean to align and focus the organization’s operations
• A Lean culture (culture of continuous improvement) takes 5 – 10 years to
develop
• Lean Champions lead by example; they take initiative to identity and solve
problems.
• Without clear expectations, it is difficult to maintain accountability.

Warning Signs You May Be Ignoring
Lean Economics
• Warning signs that you might not be considering the economics of
product development include:
• Many things started, but very little finished recently
• Heavy multitasking
• Costly context switching
• Slow, painful deliveries
• Lack of accuracy when predicting delivery scope and dates
• Low product quality and constant rework

Lean Economic
Lean economics is the means of maintaining the stability of an
economy which does not grow. Its institutions are designed as essential
means to manage and protect its small scale.

A Seven Point Protocol for Lean Economics
• The stabilised local economy—the economics of the Wheel of Life—
will violate all seven of the conditions listed above. All economies do
so to some extent, but in the Lean Economy the impediments to
perfect competition will be greater than ever, and this will be
intentional.
• The ideal conditions of the post-market economy—those
of intelligent imperfect competition—are summarised in this
alternative seven point protocol:
1. Local Intervention: Intervention to protect the local economy, and to build trust
2. Product Diversity: no product is quite what it seems
3. A Small Number of Sellers and Buyers: with a lot of influence over the local
market
4. Barriers to Entry and Exit: a helping hand for loyalty
5. Multiple Aims: beyond profit maximization
6. Barriers to Mobility: of the factors of production
7. Imperfect Knowledge: making a virtue out of ignorance

Lean - PPT (Lean manufacturing and six sigma)

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