2. What is Lean?
• Fundamental objective:
– To create the most value while consuming the
fewest resources.
3. How is the objective
accomplished?
Lean production is aimed at the elimination of
waste in every area of production including
customer relations, product design, supplier
networks and factory management. Its goal is to
incorporate less human effort, less inventory,
less time to develop products, and less space to
become highly responsive to customer demand
while producing top quality products in the most
efficient and economical manner possible.
4. Cycle Time
“ One of the most noteworthy
accomplishments in keeping the price of
Ford products low is the gradual shortening
of the production cycle. The longer an article
is in the process of manufacture and the
more it is moved about, the greater is its
ultimate cost.”
Henry Ford, 1926
5. • Lean Production
• Eiji Toyoda visits Ford’s Rouge plant in 1950 and returns to
Japan to discuss his study with his production engineer,
Taiichi Ohno.
• Mass production techniques are determined to be
inappropriate for Japan because:
1. The market in Japan demanded a large variety of different
vehicles in relatively small quantities.
2. Unlike the practice in America, treating the workforce as a
variable cost was not possible in Japan. Management’s
right to lay off employees was severely restricted.
3. The Japanese economy was starved for capital after the
war, so purchasing the latest, expensive equipment was
not an option.
History of Lean Manufacturing
6. Source: The Machine That Changed The World, Womack, Jones, and Roos, p. 44.
Intro to Lean Mfg
7. Steps to Create a Lean Entreprise
1. Specify value in the eyes of the customer
2. Identify the value stream and eliminate
waste
3. Use a pull system that is triggered by the
customer
4. Involve and empower employees
5. Continuously improve in the pursuit of
perfection
(from “Lean Thinking” by Womack and Jones)
8. Lean is customer focused
• Make what the customer wants, when the
customer wants it, at a price the customer
is willing to pay
9. Value stream mapping
• Follow a “product” or “service” from
beginning to end
• Draw a visual representation of every
process in the material & information flow
10. Value Stream Mapping
Helps us see where value is created, and where waste
exists:
• A visual approach, by “product family”
• Shows flow of both material & information
• Helps us see which specific Lean tools can be
used to improve flow and eliminate waste
• Two maps will be made: Present State (“how it
is”) & Future State (“how it should be”)
• Will guide the creation of an action plan to
make the “should be” into a reality for that
product family
12. Definition of Value-Added
Value-Added
• Any activity that increases the market form or function
of the product or service. (These are things the
customer is willing to pay for.)
Non-Value Added (Waste or muda)
• Any activity or use of resources that does not add
market form or function or is not necessary. (These
activities should be reduced, integrated, simplified, or
eliminated.)
13. Using the Value Stream Map to Eliminate Waste
• Complexity
• Labor
• Overproduction
• Space
• Energy
• Defects
• Materials
• Idle Materials
•Transportation
•Time
Non-Value-Added: Hold
all waste in a “CLOSED
MITT”
Value-Added
Typically 95% of all lead time is non-value-added
14. Complexity
The waste of doing things the hard way!
• Excessive paperwork
• Excessive approvals
• Redundancy
Causes of complexity:
• Multiple “patches” on the process w/o fixing the
root cause.
• The “cool” factor of technology or machinery.
• Failing to look for the simple solutions.
15. Labor Waste
• Human effort that adds no value to the product or
service from the customers’ viewpoint.
• Not using people’s mental, creative, and physical
abilities
• Causes of labor waste
– Poor people/machine interface
– Inconsistent work methods
– Unfavorable workstation or cell layout
– Doing unnecessary/unneeded operations
– Poor workplace organization and housekeeping
– Redundant inspections/approvals
– Extra copies/excessive information
16. Overproduction
The waste of making too much, too soon, too
fast compared to the needs of the next
process.
• Causes of overproduction
– Just-in-case logic
– Misuse of automation
– Long process setup
– Non-level scheduling
– Unbalanced workload
– Misunderstood communications
– Reward system
– Unreliable shipment by suppliers
17. Space Waste
• Using more space than is required to build the
product to market demand.
• Causes of wasted space
– Poor layout
– Too much inventory, especially work in process
– Poor workplace organization
– Excess equipment
– Oversized equipment
18. Energy Waste
• Using more energy (people and machine)
than is required to build the product to
market demand.
• Causes of wasted energy
– Oversized or poorly maintained equipment
– Idle equipment
– Poor workplace organization
19. Defects
• Waste of inspection, repair and scrapping of
material to which value has already been added.
• Causes of defects
– Weak process control
– Poor quality system
– Deficient planned maintenance
– Inadequate education/training/work instructions
– Product design
– Customer needs not understood
– Defective information
20. Materials Waste
Any use of materials in excess of
what is needed to create value.
• Causes of material waste
–Not understanding the costs
–Inadequate
education/training/work
instructions
–Lack of standards
–Customer needs not understood
21. Idle Materials
The waste of having materials “sitting
around” in process without any value being
added to them.
• Causes of idle materials waste
– Unbalanced workload
– Unplanned maintenance
– Long process setup times
– Poor suppliers
– Upstream quality problems
– Unlevel scheduling
22. Transportation Waste
• Transporting parts and materials around
the plant, stacking and un-stacking, etc.
• Causes of transportation waste
– Poor plant layout
– Poor understanding of
production process flow
– Large batch size, long lead
times, large storage areas
23. Time Waste
Any activity that consumes time without
adding value, especially the waste of
waiting (equipment downtime, waiting
for materials, setup, etc.).
• Causes of wasted time:
• Poor machine maintenance.
• Line imbalances.
• Poor setup discipline.
• Poor communication between
processes.
24. Lean Building Blocks
Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S System Visual Plant Layout
POUS
Cellular/Flow
Pull/Kanban TPM
Value
Stream
Mapping
Continuous Improvement
25. Definition for Kaizen ―
Alternate name for Lean
• Kaizen: leadership philosophy, a
management methodology, and a set of
tools all wrapped into one.
– Indicates long-term betterment
– Makes “little improvements”
– Under Kaizen, the entire facility is orderly
– Visual keys are used to assist in ordering
the workplace
26. Visual Controls
• Simple signals that provide an immediate
understanding of a situation or condition. They
are efficient, self-regulating, and worker-managed.
• Examples:
– Kanban (stock signal) Cards
– Color-coded dies, tools, pallets
– Lines on the floor to delineate storage areas,
walkways, work areas etc.
– Lights to indicate production status
– Location signs on shop floor and in the office
– Identification labels everywhere
27. Standardized Work
Graphic = Good
• Tools are illustrated
• Parts are pictured and
numbered
• Spatial relationships
are clearly shown
• Small items enlarged
to show assembly detail
• All items are either
physically labeled or
identified by number in
assembly graphic
29. 5S - Workplace Organization
A safe, clean, neat, arrangement of the workplace
provides a specific location for everything, and
eliminates anything not required.
In Lean manufacturing, we refer to this as 5S.
Examples: EMT’s, fire department, etc.
30. Elements of a 5S Program
• Sort—Perform “Sort Through and Sort Out,” - red tag all
unneeded items and move them out to an established
“quarantine” area for disposition within a predetermined time.
“When in doubt, move it out!”
• Set in Order—Identify the best location for remaining items and
label them. “A place for everything & everything in its place”.
• Sweep (Systematic Cleaning)—Clean everything, inside and out.
Use visual sweeps to ensure everything is where it should be
and that junk is not accumulating.
• Standardize—Create the rules for maintaining and controlling
the first 3 S’s. Use visual controls.
• Sustain—Ensure adherence to the 5S standards through
communication, training, self-discipline and rewards.
37. Plant Layout for Flow
Raw Stock
QC Rec
Ship
Shear
Screw
Machine
QC
Stamp
Assembly
Brake Mill
Lathe
Weld Finish
Grind Parts Stock
Drill
38. Obstacles to Flow
• “Monuments”:
– Unmovable items in the plant, i.e., large pieces of
equipment, structural supports or walls, etc.
– Too expensive to move or replace, yet not in the
proper place to allow good product flow.
• What do we do about monuments?
– We have to leave them where they are (for now)!
– We do our best to work around them.
– Put in place the best flow given the monuments, but
must always be looking for a better way.
39. Impact of Batch Size Reduction
10 minutes
10 minutes
Batch & Queue Processing
Lead Time 30+ minutes for total order
21+ minutes for first piece
10 minutes
Process
A
Process
B
Process
C
Process
B
Process
A
Process
C
Continuous Flow Processing
12 min. for total order
3 min. for first part
40. The Ideal Lot Size
• Ideal lot size is one
• Velocity = The smaller the lot size,
the faster the parts will flow through
the manufacturing process
• Flexibility = The smaller the lot
size, the more variety in demand the
system can handle
41. More Lean Tools
• Setup Reduction or Quick Changeover
(SMED)
• Point of Use Storage (POUS)
• Quality at the Source
• Visual Inspection
• Pull (including Kanban, Two Bin,
Min/Max)
• Cellular Manufacturing
• Total Productive Maintenance
42. Change Over
• STEPS IN A CHANGEOVER:
1. Preparation
2. Remove/Install Tooling
3. Change Machine Settings
4. Make Trial Pieces & Adjust
43. Setup Reduction or Quick Changeover
• Definition: Minimizing the time from last
good piece of the current product run to
first good piece of the next (different)
product run.
Percent of time of changeover
Making trial pieces and adjusting
50%
15%
30%
15%
5%
Preparation, after-process adjustment,
checking, return to storage of parts,
tools, fixtures, move materials
Removing parts, blades, jigs, etc.;
mounting same for next lot, move
materials
Machine settings, measurements
44. Change Over
• Reduce the complexity and increase the efficiency of
setups by standardizing as much of the hardware and
methodology as possible.
50. Standardization & Setup
Reduction
• Common fasteners and fittings – standardize on the sizes
and types.
• Standardized carrier plates, fixtures, shut heights, etc.
• Standardized procedures along “product families”, where
the product families share common manufacturing
processes & equipment.
• Share information and communicate “best practices”
across all operations and shifts.
• Monitor & track setup times relative to standard time.
51. Point of Use Storage (POUS)
• Raw material, components used, and
information is present at workstation where
used
• Works best if vendor relationship permits
frequent, on-time replenishment and small
shipments
• Simplifies physical inventory tracking, storage,
and handling
52. Quality at the Source
• Source Inspection: Operators must be certain
that the product they are passing to the next
workstation is of acceptable quality.
• Operators must be given the means to perform
inspection at the source, before they pass it
along.
• Samples or established standards are visible
tools that can be used in the cell for such
purposes.
53. Visual Inspection Example
•No missing screws
•All screws seated
•Specify what to inspect
•Clear inspection criteria
•Don’t overload operator
with complex content or
criteria
54. Push vs. Pull Systems
• Push System
– Resources are provided to the consumer
based on forecasts or schedules
• Pull System
– A method of controlling the flow of
resources by replacing only what has been
consumed
55. Pull System
• Pull system consists of:
– Production based on actual consumption
– Small lots
– Low inventories
– Management by sight
– Better communication
57. Pull System Methods
• Kanban:
– A visual signal telling us what we
need to produce.
– Cards, “open spots”, etc.
• Two-bin System:
– Used for commonly produced items,
sub-assemblies.
– When a bin is empty, fill it.
– Ensures there is always material
available while minimizing inventory.
58. Cellular Manufacturing
Linking of manual and machine operations into the most
efficient combination to maximize value-added content while
minimizing waste.
Punch
Cut to size
De-burr
Sand
Form
Package
Advantages of cells: Communication and shared labor
59. Moving to Cellular Manufacturing/Flow Production
Inv Inv
Inv
Inv
C
D
E
B
Inv
A
A
Inv
A
A
Inv
A
Inv
Inv
Inv
Inv
B
B
Inv Inv
B Inv
C
C
C
C
Inv
Inv Inv Inv Inv
E
E
E
D
D
D
D
Dept “A” Dept “B” Dept “C”
Dept “E”
Dept “D”
D
E
C
B
A
D
E
C
B
A
Stage 1
Production in Specialized Departments
Stage 2
Production in Product Cell
Stage 4
Production in Compact Cell with One-Piece Flow
and Separation Man/Machine
Stage 3
Production in Compact Cell with One-Piece Flow
60. Total Productive Maintenance (TPM)
• Systematic approach to the elimination of
equipment downtime as a waste factor
• Enlisting the intelligence and skills of the
people who are MOST familiar with the
factory machines: the equipment operators
• Charting/analyzing equipment performance
to identify root cause of problems, and
implementing permanent corrective actions
61. Continuous Improvement
(CI)
Old Adage:
“If you always do what you always did, you’ll
always get what you always got.”
Competitive Corollary:
“If the other guy gets BETTER, you’re gonna
get LESS.”
62. Lean Workforce Practices
• Teams
– With identified goals and measured performance
– With rotation of highly specified jobs
• Cross-trained and multi-skilled employees
– Who can work many operations within a cell and
operations in different cells
• Continuous improvement philosophy
• Process quality, not inspection
• Use of participatory decision-making processes
– Gap analysis, team-based problem solving, project
management, etc.
63. Implementation Success Factors
• Unyielding leadership
• Strategic vision based on Lean enterprise as part
of company strategy
• Observe outside successes and failures
• Ability to question EVERYTHING
• Deep commitment to EXCELLENCE
• Consistency
• Clear channels of communication
64. Comparison of Traditional vs. Lean
Lean
• Simple and Visual
• Demand Driven
• Inventory as Needed
• Reduce Non-Value-
Added
• Small Lot Size
• Minimal Lead Time
• Quality Built-in
• Value Stream Managers
Traditional
• Complex
• Forecast Driven
• Excessive Inventory
• Speed Up Value-Added
Work
• Large Batch Production
• Long Lead Time
• Quality Inspected-in
• Functional Departments
65. Must Not Must
Go to the
Shop Floor
Think of at
least 7 ways
to do better
Kaizen your
Standard Work
Have a vision
Observe the process
Find the Waste
Provide the
right tools
Set goals
Communicate
direction
Hide in the
office
Create smoke
screens Grovel Be clueless
Throw fits
Give up
Blame the
worker
Blame the Measure
Tamper with
the Measure
Cover up
Stress out Throw People at Problems
Flex
Muscles
Show Boat
Empower the Team
Celebrate Success
Lead by Example
Intimidate
Quality of a GOOD Leader
66. Mapping the Future State
• Determine Available Time/Demand
• Determine where continuous flow is possible
• Determine what pull systems will be used
• Determine pacemaker operation
• Determine how pacemaker will be
scheduled/leveled
• Determine increment of work released at
pacemaker
• Identify necessary process improvements to
achieve future state flow
70. Places to look for waste
• Over-production
• Waiting time
• Transportation
• Processing
• Inventory
• Motion
• Scrap
71. Setup Time Drives Batch Size:
The Economic Order Quantities (EOQ) model determines the
most economic lot/batch size for a production run.
Fixed Cost
Increasing Lot/Batch Size
EOQ
Changeover Cost
Inventory Carrying Cost
Changeover Cost + Inventory Carrying Cost
Variable
Cost
