LEAN MANUFACTURING

How to Achieve World Class Performance

The Principle Goal of Business

To Deliver Value to the Customer

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What Stands in the Way ? Companies typically spend over 95% of their time and money doing things that DO NOT ADD VALUE

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a d u M
Means “Waste”
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WASTE
Any activity that consumes resources But does not create or add value

Non-Value Added

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FORMS OF WASTE
• • • Overproduction: making items to fast or too soon Processing: unnecessary steps Transportation and Motion: Movement of employees and materials without adding value

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FORMS OF WASTE
• • • Errors and defects Underutilized human resources Waiting for processing

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How Much Waste? In the average company over 95% of what goes on is waste in some form

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What is the Effect
• • • • • • • • Limits to capacity Longer lead times Higher costs Cash tied up in the business Mistakes Late deliveries Customer defections Employee frustration
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What is World Class Performance ?

• • • • • • • •

99% on-time delivery 12+ Inventory Turns Single digit set-up times (SMED) COPQ < 2% OEE > 95% (Availability) 100% Pull; No MRP One Piece Flow Kaizen Culture
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THE SOLUTION
Lean Manufacturing A powerful, systematic approach which quickly yields dramatic improvements in cycle time, WIP inventory, throughput, productivity and quality.
The key is to reduce or eliminate non-value added steps achieving smooth, continuous flow in response to customer demand
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Lean is a Different Way
FLOW VALUE STREAM EMPOWERED PEOPLE PERFECTION
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PULL

A Lean Enterprise is Organized Differently
A “Lean Enterprise” is focused on creating flow in a “Value Stream”
This is fundamentally different than traditional organizations that are organized along functional boundaries devised in the early part of the last century. Most of the effort is expended in managing the interface between the boundaries

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What Does the Lean Enterprise Look Like?
LEAN ENTERPRISE PRINCIPLES
Workplace Order and Cleanliness JIT Production Six Sigma Quality Pursuit of Perfection Empowered Teams Visual Management

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A Brief History of Lean Thinking

• •

• •

Ford originated the idea of “flow” Toyota figured out how to flow with low volume and high variety Ohno created the Toyota Production System (TPS) Total Quality and JIT grew naturally from TPS

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More History
• • Nummi gave us the first complete picture (1984) Toyota Motor Manufacturing of America (Kentucky) launched the lean movement in America (1988) American success stories broke down the barriers
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Documented Success
• • • • • The Machine that Changed the World, Womack, 1991 Lean Thinking, Womack, 1995 Becoming Lean, Liker, 1998 Lean Enterprise Institute, 1999 Industrial Solutions, Inc., 2000+
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LEAN TOOLS
• • • • • • Workplace Organization, Visual Controls, the 5-S System Point of Use Storage Quick Changeover Continuous flow in cells Standard work Pull/Kanban Systems

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Flavor of the Month???
• • • • • • Lean Six Sigma Lean Six Sigma Lean Six Sigma Logistics Lean this …. Lean that……….

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Pull System
• •
Pull System is a flexible and simple method of controlling/balancing the flow of resources. Pull System consists of:
– – – – – Production based on actual consumption Small lots Low inventories Management by sight Better communication

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Pull System Flow Diagram
Information Flow

Supplie r

Raw Matl

Process A

Process B

Process C

Fin. Goods

Customer

Parts Flow

Kanban Locations
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What Does ISI Do?
• • • • • Brings years of practical experience to the transformation effort Develop a strategic vision Deploy the vision to the value streams Train and facilitate Develop your internal leaders
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Strategy Deployment • • Most companies do not have a clear strategy Most companies that have a strategic plan do not effectively communicate the strategy to the workforce Your improvement efforts must be linked to your strategic plan
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ISI Strategy Deployment Template

Corporate Goals

Value Stream 1 Value Stream 2 Cell Level

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Roadmap for Change
• • • • • • • • Management commitment Develop a “Vision” Strategy Deployment Session Train the employees Conduct shop floor events Select and train facilitators Lean Accounting Lean Office
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SUSTAINABILITY
• • • • Management Commitment Front Line Supervisory Skills Lean Performance Measures Long Term Strategy

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MANAGEMENT COMMITMENT “People will listen to what you say but they will only believe your actions” The time it takes to implement a full lean conversion requires that it be part of a strategic vision. This requires top level involvement and commitment

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FRONT LINE SUPERVISORS
• • The Missing Link Measurable Management Program

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LEAN ACCOUNTING
• Traditional cost accounting works contrary to Lean Thinking We need a new set of internal performance measures that support lean Association with BMA

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Why Is the Success Rate So Low

• • • • •

Wrong Assumptions
– People don’t like change

People Do Not Act Rationally Company Culture is Powerful Mixed Signals from Management Measurements not tied to Strategy
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TRAINING
The people who will make it work must be given the training to understand and apply Lean Tools

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Instruction in Lean Tools
• • • • • • • • Lean Manufacturing Simulation Value Stream Mapping Cellular/Flow Manufacturing Quick Change Over Total Productive Maintenance 5-S Performance Measurement Facilitator & Leadership Training
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LEAN MANUFACTURING SIMULATION

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Value Stream Map
• • • • Helps to visualize flow Helps to find waste Provides a common language Ties together lean techniques; information and materials Provides implementation plan
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VS MAPPING WORKSHOP
• • • • 2-Days 5-15 People On Site Event Practical exercises using your actual process flows

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Drawing The Future State
Supplier Productio n Control
MRP System Daily Order

Customer
32 Pcs/ day

A
C/T: 12 min C/O: 1 Hr U/T: 100% 2 days 12 3 days 14

B
C/T: 14 C/O: 2 Hr U/T: 80%

5 days 26 min Industrial Solutions,

Other Workshops
• • • • • • • 5-S QuickChangeover Cellular Flow Pull Systems TPM Performance Measures Lean Accounting
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THE PILOT PROJECT A “Kaizen” Event
• • • Demonstrate the concepts in action Allows opportunity to test ideas Does not disrupt entire plant

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PROJECT CHARACTERISTICS • • • • • • Management Selected Balance Ease with Impact Representative of Typical Production Visible and Frequent Cycle Low Cost Solution Options Immediate Implementation
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Typical 1st Stage Projects
• • • • • Waste elimination Creating continuous flow work cells Setting up point of use storage Reducing set-up time Balancing operations to TAKT

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Typical 2nd Stage Projects • • • • Setting up pull systems Setting up supermarkets Eliminating work orders Creating single-piece flow

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Pilot Project Portfolio
• • • Cellular Flow 5-S Set-up Reduction

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Thank You

Industrial Solutions, Inc 918-280-9051 www.isiworld.net
!

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