Lean Manufacturing

Eric Hong
Shari Sledge
Michelle Woeste

Presentation layout
Background
Toyota Production System
Key Lean Techniques
Advantages and Disadvantages
People and Customers
Economics
Changes in Lean
Current Lean Practices
Case Studies
Definition
Lean Manufacturing A way to eliminate
waste and improve efficiency in a
manufacturing environment
Lean focuses on flow, the value stream and
eliminating muda, the Japanese word for
waste
Lean manufacturing is the production of
goods using less of everything compared to
traditional mass production: less waste,
human effort, manufacturing space,
investment in tools, inventory, and
engineering time to develop a new product

Lean and Just-in-Time
Lean was generated from the Just-in-
time (JIT) philosophy of continuous
and forced problem solving
Just-in-time is supplying customers
with exactly what they want when
they want it
With JIT, supplies and components
are pulled through a system to
arrive where they are needed when
they are needed

What is Waste?
Waste is anything that
happens to a product
that does not add
value from the
customers
perspective
Products being stored,
inspected or delayed,
products waiting in
queues, and defective
products do not add
value
Seven Wastes
Overproduction producing more than the
customer orders or producing early. Inventory of
any kind is usually waste.
Queues idle time, storage, and waiting are wastes
Transportation moving material between plants,
between work centers, and handling more than
once is waste
Inventory unnecessary raw material, work-in-
process (WIP), finished goods, and excess
operating supplies
Motion movement of equipment or people
Overprocessing work performed on product that
adds no value
Defective product returns, warranty claims,
rework and scrap
Origins
Lean Manufacturing
is sometimes
called the Toyota
Production System
(TPS) because
Toyota Motor
Companys Eiji
Toyoda and
Taiichui Ohno are
given credit for its
approach and
innovations

Underlying Principles to TPS
Work shall be completely specified as to
content, sequence, timing, and outcome
Every customer-supplier connection, both
internal and external, must be direct and
specify personnel, methods, timing, and
quantity of goods or services provided
Product and service flows must be simple
and direct goods and services are
directed to a specific person or machine
Any improvement in the system must be
made in accordance with the scientific
method at the lowest possible level in
the organization
Toyota Production System
Since the Toyota Production System
requires that activities, connections,
and flow paths have built-in tests to
signal problems automatically, gaps
become immediately evident.
Results of the TPS are
improvements in reliability,
flexibility, safety, and efficiency.
These lead to increase in market
share and profitability.
Timeline
Key Lean Manufacturing Techniques
5S

Single Minute Exchange of Dies

Kanban

Cellular Manufacturing
5S
Strategy for creating a well organized, smoothly
flowing manufacturing process



5S Examples
Before After
Benefits of 5S
Increases organization and
efficiency
Avoids wasted motion
Increases safety
Eliminates unnecessary inventory
Offers improvements at an
inexpensive cost
5S Drawbacks
If not fully implemented, may result in
Jive S
Store things
Stick to the rules
Superficially clean
Switch to new fixtures
Serve reluctantly

Can not be considered an end goal
must be part of a continuous
improvement movement
Single Minute Exchange of Dies (SMED)
Method that focuses on the rapid conversion
from manufacturing one product to the next
SMED Examples
Benefits of SMED
Increases throughput by reducing
setup times
Eliminates setup errors
Increases safety
Reduces the cost of setups
Reduces waiting times and
inventory buildups
Decreases the required skill level of
the operators
Kanban
A system that uses replenishment
signals to simplify inventory
management
Signals (usually cards) hold product details
What to make, when to make it, how much to
make, and where to send it
Cards stay attached to a bin that holds the
product
When bin is empty, it is returned to the start
of the assembly line for replenishment
Full bins are returned to the customer, and
the cycle continues
Kanban Example
Supermarket Ordering System
Benefits of Kanban
Highly visible systems
Simple, effective, and inexpensive
Reduces inventory and eliminates
stock-outs
Improves the quality of service
Improves lead times

Cellular Manufacturing
Dividing the manufacture of products
into semi-autonomous and multi-
skilled teams known as work cells
Cellular Manufacturing Example
Functional Layout

Cellular Layout
Benefits of Cellular Manufacturing
Simplifies material flow and
management
Reduces interdepartmental travel
Reduces throughput time
Reduces lot sizes
Simplifies scheduling

Lean Manufacturing
Advantages and Disadvantages
Advantages:
Increased overall
productivity
Reduced amount of
floor space required
Reduced
manufacturing lead
time
Improved flexibility
to react to changes
Improved quality
Disadvantages:
Difficulty involved
with changing
processes to
implement lean
principals
Long term
commitment required
Very risky process -
expect supply chain
issues while changing
over to lean
People
Transition to Lean is
difficult since a
company must build a
culture where learning
and continuous
improvement are the
norm.
Success of lean
requires the full
commitment and
involvement of all
employees and of the
companys suppliers.

How People Benefit from Lean
Element Traditional Lean Improvement
Communication Slow & Uncertain Fast & Positive Quality &
Coordination
Teamwork Inhibited Enhanced Effective Teams
Motivation Negative, Extrinsic Positive, Intrinsic Strong Motivation
Skill Range Narrow Broad Job Enrichment
Supervision Difficult and
Fragmented
Easy & Localized Fewer Supervisors
How Customers Benefit from Lean
Element Traditional Lean Improvement
Response Weeks Hours 70-90%
Customization Difficult Easy Competitive
Advantage
Delivery Speed Weeks-Months Days 70-90%
Delivery
Reliability
Erratic Consistent & High Up to 90%
Delivery
Quantities
Large Shipments JIT as Required Locks in JIT
Customers
Quality Erratic Consistent & High Delighted
Customers
House of Lean
Economics
Reduction of Inventory
Less space necessary to hold inventory
Reduced Waste
Decreased Production Cost
Increased market share
Able to provide what the customer wants
quickly
Increased competitive advantage
Faster response to the customer
Lower Cost
Higher Quality


Changes in Lean since the beginning

Inventory Comparison
Inventory Turnover annual cost of
goods sold from the income statement
divided by the value of inventory from
the balance sheet

Quality Control
6 sigma process
Combination of old and new ideas
6 ingredients
Genuine focus on the customer
Data- and fact-driven management
Process focus, management, and improvement
Proactive management
Boundarlyless collaboration
Drive for perfection, tolerance failure

Lean Maintenance
A Simultaneous Approach

6 Tools for Lean Maintenance
Visual Controls
5S
Seven Wastes
Single Minute Exchange of Dies
Poka-yoke
Total Productive Maintenance

Other impacts of Lean
Bell South service industry
Management system and operations
Control
Process management, work
measurement, management control, and
people development
Combines lean and 6 sigma
Woburn Safari Parks
Feed logistics
Animal Resource Planning
Background
Poli-film America Inc. a division of a German owned
company.
Manufactures protective masking that prevents
abrasion and staining of exposed surfaces during
manufacturing and delivery
Industries Using Material:
Plastics
Automotives
Construction
Electronics
Laminates
Furniture
Textiles
High demand product
24/7 production
Problems
An enterprise resource planning system that
encompassed an unstable database
The database was untrustworthy account of inventory,
hand counts were necessary to confirm the numbers
counted by computers
Led to many employees spending many hours and led
to low processing and limit of work utilization
Lack of frequency in supplies and storage errors in
production and set limits
Unable to trace items
Main concern programs ability to adapt to
changing processes and production goals while still
maintaining inventory traceability real time data
with multiple distribution sites
Results
Chose a new program to implement in later 2003

Greatest impact on companys inventory flow and order
distribution
Real time traceability allowed him to cut down on the 2 mil
lbs of film and other materials by more than half and
maintain a sufficient safety stock for when its time to
reorder and restock

Benefits through Lean
Time and money has seen dramatic cuts
Instead of 20 min to fill an order, takes less than 5 min
currently
Allowed company to expand for more regional coverage
Been simplified for reports
Reduce time taken to accomplish certain tasks and add
more responsibilities