Principles of Lean Manufacturing

LEAN ENTERPRISE Participant Workbook
Principles of Lean Manufacturing
LEAN ENTERPRISE
Course Objectives By the end of this class you will be able to:
Define Lean Identify the eight wastes Differentiate between Value-Added and Non-Value-Added activities Apply various Lean implementation tools in a simulation setting Describe how Lean Principles can impact the success of your organization
Orientation
TechHelp - Solutions for Manufacturers
208.426.3767 or www.techhelp.org
Product Catalog
The Bottom Line
Sells for $4
Materials cost $0.50
Sells for $4
Materials cost $0.50
Labor cost: Facilities cost:
$2.00/person/shift $10.00/table/shift
Production Process Orientation

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Sales Representative Production Scheduler Kitter(s) Material Handler 1st OP Blue 1st OP White 2nd OP Blue 2nd OP White Inspector Warehouse/Ship Clerk Trucker Production Supervisor Industrial Engineer Processes Customer Order Generates Factory Order from forecast Organizes raw materials for Factory Orders Moves product between ALL workstations Initial folding: Blue Initial folding: White Final folding : Blue Final folding: White Assures Quality Matches boats to Customer Orders Ships products to the customer Supervises production Monitors production process
Production Facility Orientation

Sales Office Production Control Kitting Area Shipping Dock Finished Goods Whse. WIP Storage Inspection Area 2nd OP White 2nd OP Blue
Rework Area 1st OP Blue 1st Op White
Product Components Orientation

Blue Paper
White Paper
Product Routing
1 piece
1 piece
1 piece
1 piece
Production Batching
4 per batch
4 per batch
Production Scheduling Process

Customer orders (demand) Customer order forms Shipments to customers
Production forecast
Factory order forms
Finished Goods Warehouse
Customer Service Targets Promised shipments to customers Promised shipments to customers

4 minutes after order 4 minutes after order
All orders are filled first-in, first-out (FIFO)
Company Policies

All shifts are 10 minutes Keep busy at all times Yell if you need parts Handle all parts first-in, first-out (FIFO) Only the Material Handler can move parts Stay at your workstation The boss is always right!
Go to Work! Round 1
Round One: Debrief
Discuss results How did it feel? Relationship to real world
Principles of Lean
Introduction to Lean Manufacturing
Defining Lean LEAN is: A systematic way to deliver the

highest quality, lowest cost products with the shortest lead-times through the relentless elimination of waste.
GOOD
PICK ANY TWO

FAST CHEAP
Definition of Value-Added
Value Added
Any activity that changes the market form or function of the product or service Things the customer is happy to pay for.
Non-Value Added
Any activity that does not change market form or function (although it may be necessary) These activities should be eliminated, simplified, reduced, or integrated when possible.
Lean = Eliminating Waste

Defects Overproduction Waiting Non-Value Added Processing Transportation Inventory Motion Employees: KSAs (Knowledge, Skills and Abilities) Non-Value-Added Value-Added 5%
Typically 95% of all lead time is non-value-added.

Defects in the Factory

Inspection and repair of product Causes of defects
- Weak process control - Poor quality system - Deficient planned maintenance - Inadequate education/training/work instructions - Poor product design - Customer needs not understood
Overproduction in the Factory

Making more product than is required by the next process Making product earlier than is required by the next process Making product faster than is required by the next process Causes of overproduction - Just-in-case logic - Long process setup (encourages large lot runs) - Unbalanced workload (WIP) - Poor communication - Misuse of automation
Waiting in the Factory

Idle time created when waiting for? Causes of waiting waste
- Unbalanced workload - Unplanned maintenance - Long process setup times - Poor suppliers - Upstream quality problems
Non Value-Added Processing in the Factory

Effort that adds no value to the product or service from the Causes of processing waste
- Product changes without process changes - Just-in-case logic - True customer requirements not clearly defined - Lack of communication customers viewpoint
Transportation in the Factory

Transporting parts and materials around the plant Causes of transportation waste
- Poor plant layout - Poor understanding of production process flow - Large batch size, long lead times, large storage areas
Inventory in the Factory

Any supply in excess of a one-piece flow through your
manufacturing process
Causes of excess inventory

- Misconception that this protects the company from inefficiencies and unexpected problems - Product complexity - Poor market forecast - Unbalanced workload - Misunderstood communications - Reward systems - Unreliable shipment by suppliers
Motion in the Factory

Any movement of people or machines that does not add
value to the product or service
Causes of motion waste

- Poor people/machine interface - Inconsistent work methods - Unfavorable workstation or cell layout - Poor workplace organization and housekeeping
Employee KSAs in the Factory

(Knowledge, Skills and Abilities)
The waste of not using peoples mental, creative, and

physical abilities
Causes of people waste

- Old guard thinking, politics, the business culture - Poor hiring practices - Low or no investment in training - Low pay, high turn-over strategy
Brainstorm Wastes What wastes were apparent?
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Lean Building Blocks
Continuous Improvement
Pull / Kanban Quality at Source Standardized Work 5S System POUS Cellular Flow TPM
Quick Set-up Teams Value Stream Mapping
Lot Size Reduction Visual
Plant Layout
Mass Production
Material 1st OP White 2nd OP Blue 2nd OP White
Receiving Warehouse
Shipping Warehouse
1st OP Blue Repair Value-Added Time Time in Plant :
Storage
Kitting
Testing Inspection :
ORDER
Minutes Weeks
Ship CASH
Work Place Organization (5S)

Creates a safe, clean, neat arrangement of the workplace Provides a specific location for everything Eliminates anything not required
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Elements of a 5S Program
1. Sort
PLANT PLANT
2. Set in Order
5. Sustain 4. Standardize
3. Shine
5S: Starts With Cluttered Areas
Ends Up With Organized Areas
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Example: Local Tool Board
Standardized Work
Defines operations safely carried out with all tasks organized in the best known sequence using the most effective combination of these resources: People Materials Methods Machines
Consistent Process Desired Results Inconsistent Process Inconsistent Results
Without Standardized Work there can be no sustained improvements

Traditional Plant Layout

Finishing Degrease Tool Crib Manual Drills Manual Mills N/C Mills Central Inspection Tool Crib Silver Solder Machine Assembly Stock/Staging
Sheet Metal
Deburr
Receiving
N/C Mills
N/C Lathes
N/C drill Manual Lathe Grind
Saws
Shears
Raw Stock
Plastics
Jigbore/ EDM
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Product Cell
Degreas Manual Drills Manual Mills N/C drill
Deburr
Machine Assembly
Stock/ Staging Silver Solder Raw Stock
Lean Workforce Practices Teams

Members rotate between highly specified jobs
Cross-trained and multi-skilled employees

Operators can work many operations within a cell and operations in different cells
A foundation of the continuous improvement philosophy

What needs to change?

5S System Standardized Work Visual Controls Plant Layout Teams POUS Batch Size Reduction
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Go to Work! Round 2
Round Two: Debrief
Pull/Kanban Quality at Source Standardized Work 5S System POUS Cellular/Flow TPM
Quick Changeover Teams Value Stream Mapping
Batch Reduction Visual
Plant Layout
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Impact of Batch Size Reduction

Batch & Queue Processing
Process
Process
Process
10 minutes 10 minutes
10 minutes
Lead Time 30+ minutes for total order 21+ minutes for first piece
Continuous Flow Processing

Process
Process
Process
12 min. for total order 3 min. for first part

Batch Size Reduction
The best batch size is one piece flow, or make one and move one!
Set-up Definition
SET-UP: The time required to remove the old tools, dies or fixtures; attach new tools, dies or fixtures and run the machine until a new part, without defects, is produced.
Changeover
Make Adjustments Make Adjustments
Completion of last good part
Locate tools, dies or fixtures
Remove old tools, dies or fixtures
Clean, sanitize, attach new tools, dies or fixtures
Run
Run
Part
First good part
1st piece inspection
Set-up time
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Transition Steps to Quick Changeover

Preliminary
Internal and External Setup not differentiated
Step 1
Separate Internal and External Setup
Step 2
Convert Internal Setup to External Setup
Step 3
Streamline all aspects of Setup operations
Int Ext Int Ext Ext Int Int Ext
Ext
Process Walk Analysis
Ext Preparation
Standardization Jigs
Ext
Management of parts and tools
Int Int Int Int
Quality at the Source

Source Inspection: Operators only pass work of acceptable quality to next work station. Visual Tools: Use samples, pictures, templates or established standards. Tools and Training: Give operators the tools and training to perform inspection at the source before they pass it along.
Total Productive Maintenance (TPM)
What causes equipment downtime/losses?

Set-up and adjustment Breakdowns Idling and minor stoppages Reduced speed Startup Defects and rework
How can downtime/losses be eliminated?

Identify root cause of problems Implement sustainable improvements.
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Cellular Manufacturing
Linking of manual and machine operations into the most efficient combination to maximize value-added content while minimizing waste. 1st OP Raw Material 2nd OP
Shipping 3rd OP Inspection

4th OP
Push vs. Pull Systems Push System
Based on forecasts or schedules

Pull System
Production and resource flow based on actual

consumption Small lots Low inventories Visual management Better communication
Pull System Flow Diagram

Information Flow
Supplier
Raw Process Matl A
Process B
Process C
Fin. Goods
Customer
Parts Flow Kanban Locations
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Plant Layout
What needs to change?

TPM Quick Changeover Cellular Flow Pull/Kanban Quality @ Source
5S System Standardized Work Visual Controls Plant Layout Teams
Batch Size Reduction POUS
Go to Work! Round 3
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Round Three: Debrief
Action Plan
Implementation Value Stream Mapping Train workers with appropriate skills Solve problems using Lean tools Continuous Improvement
Plant Layout
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Course Objectives
Can you now:

Define Lean? Identify the eight wastes? Differentiate between Value Added and Non-Value Added activities? Apply various Lean implementation tools in a simulation setting? Describe how Lean Principles can impact the success of your organization?
Benefits of Lean
Percentage of Benefits Achieved 0 Lead Time Productivity Increase WIP Reduction Quality Improvement Space Utilization 25 50 75 100
Continuous Improvement (CI)

Old Adage: If you always do what you always did, youll always get what you always got.
Competitive Corollary: If the other guy gets BETTER, youre gonna get LESS.
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LEAN ENTERPRISE
Thank You.
Recommended Readings
Lean Thinking by Jim Womack Becoming Lean by Jeffrey Liker The Machine That Changed the World by Jim Womack
and Daniel T. Jones
The Goal by Eli Goldratt World Class Manufacturing: The Next Decade by
Richard Schonberger
Lean Production Simplified by Pascal Dennis Others can be found on bookstore sites key word
Lean
Lean Web Sites

MEP Lean Sites: www.techhelp.org www.mepcenters.nist.gov Other Lean Sites: www.lean.org www.productivityinc.com www.superfactory.com www.nwlean.net www.sme.org www.apics.org
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LEAN ENTERPRISE Participant Workbook