Hochschule fr Technik und Wirtschaft des Saarlandes University of Applied Sciences

LEAN MANAGEMENT
Prof. Dr. Udo Venitz

Lean Management

Contents
Fundamentals
Origin and History of Lean Management The Toyota Production System Targets of a Lean System

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Origin an History of Lean Management

Lean Management is derived mostly from the Toyota Production System.

Production System (TPS)

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The Toyota Production System (TPS)

The TPS is build on the two pillars Just-In-Time and Jidoka.

Source: www.swmas.co.uk

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The Toyota Production System (TPS)

Quality must be built in during the manufacturing process! (Toyoda Sakichi)

Jidoka = Autonomation = Automation with a human touch

Toyoda Sakichi (1876 ~ 1930)

Type-G Toyoda Automatic Loom (developed in 1924)

1929 Kiichiro Toyoda sold the Patent in England 1930 Toyota Motor Corporation founded

Source: www.toyota.co.jp/en/
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Targets of a Lean System

The main target of every company is to generate Profit.

Profit
Satisfy customer demand

Best Prices

Supply on time

Costs

Lowest Costs

Shortest Lead Time

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Best Quality

Contents
Fundamentals
Origin and History of Lean Management The Toyota Production System Targets of a Lean System

Basic Elements
Muda 7 types of waste KAIZEN CIP Standards Visual Management

Wheel of Improvement

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Basic Elements - MUDA

Wastes in all our processes lead to higher costs and longer lead times.
Muda the 7 types of waste

Inventory Overproduction Transport Correction/ Scrap (Over-)Processing

Motion

Waiting

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Basic Elements - KAIZEN

We are continuously eliminating wastes by KAIZEN.
KAIZEN = Continuous Improvement (CIP)

Wheel of Improvement

CI P

improvement

KAI = change
Standard

time

ZEN = for the better

Source: KAIZEN-Institute
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Basic Element - Standards

Without standards there can be no improvement (Taiichi Ohno)

Wheel of Improvement

CIP

improvement

Standard

time

Source: KAIZEN-Institute
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Basic Elements Standards

Standards should be used everywhere in our work environment!

Source: ixetic GmbH

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Basic Elements Visual Management

Visual management is an important method for a shop floor manager to manage the daily business easily

Visual management shows any difference between normal and abnormal production processes
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Basic Elements Visual Management

Easy means can show us important informations!
Traffic Light Systems Machine Conditions

Source: KAIZEN-Institute

Source: ixetic GmbH

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Contents

Fundamentals Basic Elements Just-In-Time (JIT)

Flow One-Piece-Flow Pull-System Kanban Supermarkets Heijunka - Production Leveling
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Just-In-Time (JIT)
Making only what is needed, when it is needed, and in the amount needed!"

Ohno Taiichi (1912 ~ 1990)

o rd e r

T im e lin e

cash

Waste
Overproduction

Inventory

Value Added

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Just-In-Time Flow
Job-Shop Production is often full of waste, since there is no flow.
Overproduction

Job-Shop Production
Inventory

Transport

Waiting

Motion

(Over-)Processing
Correction/ Scrap
Source: Liker Jeffrey K.: The Toyota Way, McGraw-Hill, New York 2004

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Just-In-Time One Piece Flow

Wherever possible establish a One Piece Flow.
Overproduction

Flow in a U-Shaped Production Line

Inventory

Transport
Motion

Waiting

(Over-)Processing
Correction/ Scrap
Source: Liker Jeffrey K.: The Toyota Way, McGraw-Hill, New York 2004

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Just-In-Time Pull Principle

When it is not possible to let the material flow pull the material!
Synchronized Production One Piece Flow / Continuous Flow Pull - Principle

Source: Syncro Consult GmbH & Co. KG

Source: Syncro Consult GmbH & Co. KG

Inventory in the production

Closed Loop
Source: Eidenmller
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Just-In-Time Kanban
The Kanban System is a easy mean to control the material flow.

Kanban System

Source: www.ebz-beratungszentrum.de

Source: www.shelftagsupply.com

Source: www.orgatex.de

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Just-In-Time Kanban
The parts retrieval kanban controls quantity and transport of the finished parts.

parts retrieval kanban Varnishing

Mounting

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Just-In-Time Supermarket
The previous process can be seen as a Supermarket.

Source: ixetic GmbH

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Just-In-Time Supermarket
Supermarkets assure a supply of the next process!

Supermarket

Supplier

Customer

defined place with minimum, maximum and reorder level high visualization of inventory

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Just-In-Time Production Leveling

Variable customer demand makes a utilisation of Supermarkets difficult.

Source: Syncro Consult GmbH & Co. KG

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Just-In-Time Production Leveling

By batch production we try to reduce the frequency of change over.
Batch Production

Thursday Wednesday Tuesday Monday

8:00 10:00 12:00

D C B A
14:00 16:00

Change Over

Change Over

Change Over

Change Over

17:00

Total Number of Change Over Procedures:

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Just-In-Time Production Leveling

The target of production leveling: Every Part every Day!
Heijunka = Production Leveling

Thursday Wednesday Tuesday Monday

8:00 10:00

A A A A
12:00

B B B B
14:00

C I JK C D H C F G C D E
16:00 17:00

Total Number of Change Over Procedures:

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Summary
We need all the methods to build up a lean system!
Just-In-Time (JIT)
Flow One-Piece-Flow Push-System Pull-System Kanban Supermarkets Production Leveling
Donnerstag Mittwoch Dienstag Montag
8:00 10:00

Highest Quality, Lowest Cost, Shortest Lead Time

JIT

Jidoka

A A A A
12:00

B B B B
14:00

C I JK C D H C F G C D E
16:00 17:00

Basic Elements

Basics Elements
Muda 7 types of waste KAIZEN CIP Standards Visual Management

Overproduction
Wheel of Improvement

CIP

improvement

Standard

time

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