September 10

Lean Management: Fundamentals and Applications
Prepared By: Ashraf S. Youssef, Ph. D. QA & Ind. Methods Manager S.M. ASQ, L.A. BSI, M. ELI, M. EMS

The Fundamentals of Lean Lean Tools Practical Examples

July, 24, 2010 24,

LEAN IS NOT
“The real voyage of discovery consists not in making new landscapes but in having new eyes.” g y

• A cookie cutter approach to improvement.
Companies must apply the appropriate Lean principles for their industry and specific company situation.

–Marcel Proust (1871-1922), Novelist

• Something that a company does once.
Lean is NOT an end point; it is a never ending improvement process. Lean is a journey.

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September 10

DEFINING LEAN
“A systematic approach to identifying and eliminating waste (nonvalue-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” --The MEP Lean Network

KEY CONCEPTS • • • • • • Waste Reduction Lead Time Reduction Variation Reduction Product Flow Pull of the Customer Continuous Improvement

ANOTHER DEFINITION
“A manufacturing philosophy that shortens the time line between the customer order and the shipment by eliminating waste (non-value-adding activities).”

Value Stream Focus & Lead Time

What is the Lean Manufacturing?
Reduction of 7 kinds of waste (MUDA)

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September 10

What is the Lean Manufacturing?
Reduction of 7 kinds of waste (MUDA) Value added 5 %
• • • • • • • Overproduction Defects Non value Non-value added processing & Underutilized people Waiting Excess motion Transportation Excess inventory
LEAN = ELIMINATING THE WASTES

Non-value added

Typically 95% of Total Lead Time is Non-Value Added!!!

INVENTORY HIDES PROBLEMS

REDUCING INVENTORY WITHOUT SOLVING PROBLEMS

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September 10

Benefits of lean manufacturing
• Reduced lead time, delivery time, cycle time and set-up time • Eliminates waste • Increases overall customer satisfaction • Optimized space usage • I Increased productivity d d ti it • Improved product quality • Improved on-time shipments • Improve employee involvement, morale, and company culture. • Seeks continuous improvement

The Fundamentals of Lean Lean Tools Practical Examples p

LEAN BUILDING BLOCKS
“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”

Lean Tools: Value Stream Mapping

Continuous Improvement
Pull/ Kanban Plant Layout 5S System Cellular/Flow Quick Changeover Quality at Source TPM POUS

--The MEP Lean Network

Batch Reduction Standardized Work Visual Systems

Teams/Employee Involvement

Value Stream Mapping

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September 10

Lean Tools: Value Stream Mapping

Lean Tools: Value Stream Mapping

Lean Tools: Value Stream Mapping
Simplified Logical Flow Chart

Lean Tools: Value Stream Mapping
CURRENT VALUE STREAM MAP
May 2008 ~ April 2009

MODEL 6 PRODUCTION LINE
PRODUCTION PLANNER
Design Engineering *Submittals *BOM *EMR *MMR *ECN

INDUSTRIAL METHODS DEPT.

*Master Plan *Delayin g Rep o rt

Project Manager
*In vo icing *Clarification

SUPPLIERS
*IGI Req . *Mat'l Req ./ Issuan ce *Dlvry.Note *Packin g List *P.O.

Supply Chain Manager

CUSTOMERS
Quality Control
*Purch ase Ord er *IGI Repo rt *Defect Rp rt. *Fin al Inspn. *In co mplete Wo rk Report *NCR

PRODUCTION MANAGER

*I.D. Card *In p ro cess In sp ection *EOM

5.8mon.

Receiving material

QC IGI

Bucket As s em bly

Bucket Wiring

Panel Lineup

QC Testing

FAT

Packing

Delivery

I
Job Order No.of Shop orders Sections # Buckets # J201706 (in 3 batches) 20 204 365
2nd Batch

I 4 51 75

I 3 43 68

I 6 52 77

I 6 52 77

I 6 52 77 Industrial Ef f iciency = V.A.time/ To tal time

6 52 77

Traveled distance 174.1m f rom

Nb of Operations : 56 Nb of Inspections : 24 Nb of Movements/ Day : 175 Meters Walked / Day : 10 725 m

Nb of Operations : 17 Nb of Inspections : 4 Nb of Movements/ Day : 21 Meters Walked / Day : 1 836 m
Metrics Steps w/in Process
Total Consumed Reg.Time

WIP is more than

Traveled distance 197m, Fab'n to Panel wiring.

I.E. = 22 %

Total Cons umed OT

Changeover Time VA time
Traveled time (distance)

No.of Workers

Value 75 9527 17699 239 8315 368 20

UOM steps
minutes minutes minutes minutes minutes persons

SO24444 5 96 0 0 193 2

8 200 45 0 30 1

14 546 3218 19 1074 48 2

15 6752 11263 64 6049 0 7

10 1048 3218 56 1192 6 2

5 300 30 0 46 1

7 300 25 0 0 2

10 270 0 0 30 2

1 15 0 0 15 1
Production Lead Time (days)

175 days ave.
From BOM to In-house

days
minutes

1 145 275

1 1916

5 2583

6 2164

5 376

1 163

1 150

1

0.5 30

21.5
Total Consumed Tim e in min

7800 16.3 days

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September 10

Lean Tools: Value Stream Mapping
FUTURE VALUE STREAM MAP
2009 ~ 2010

Lean Tools: Cell Continuous Flow
E F
S/E

MODEL 6 PRODUCTION LINE
PRODUCTION PLANNER
Design Engineering *Submittals *BOM *EMR *MMR *ECN

INDUSTRIAL METHODS DEPT.

*Master Plan *Delaying Report

Project Manager
*Invoicing *Clarification

G

SUPPLIERS
*IGI Req. *Mat'l Req./ Issuance *Dlvry.Note *Packing List *P.O.

Supply Chain Manager

CUSTOMERS
Quality Control
*Purchase Order *IGI Report *Defect Rprt. *Final Inspn. *Incomplete Work Report *NCR

Cell
D C
S/E

____ mo n.

PRODUCTION MANAGER

H I J
S/ E S/ E S/ E

*I.D. Card *In process Inspection *EOM

Continuous Flow Production

K
S/ E
Receiving material New Factory Layout of Product Lines Dista nce Travele d CURRENT FUTURE MODEL6 538.9 m. 336.6 m. Increase to 10 QC IGI
Bucket As s em bly

Bucket Wiring

Panel Lineup

QC Testing

FAT

Packing

Delivery

L M

B
S/ E

WIP should

I 1

I 1

I 1

I 1

I 1

A

Traveled distance 92.2m. f ro m

Traveled distance 99.0

Target Industrial Ef f iciency (I.E.) = V.A.time/ Total time

Metrics Steps w/in Process
Total Consumed Reg.Time

Total Cons umed OT

Changeover Time VA time Distance traveled No.of Workers

Value 75 9527 17699 239 8315 203 20

UOM steps
minutes minutes minutes minutes minutes persons

5

8

14

15

10

5

7

10

1

71 2

30 1

48 2

0 7

6.0 2

7 1

0 2

23 2

18 1
Production Lead Time (days)

days
minutes

0 0 0

0 0

0 0

0 0

0 0

0 0

0 0

0

0 0

0.0
Total Consumed Time in min

0 0.0

days

Finished Products
22

Lean Tools: Versatility & multi-skill

Lean Tools: One Piece Flow

Mixed Modeling Multi-function Workers Multi-skilled Workers Shojinka One Piece Flow Order For Order

23

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September 10

Lean Tools: Kaizen Blitz
Kaizen.
Process Kaizen. System Kaizen.

Lean Tools: Push vs Pull
Pull Signal. Pull System. Push System

Kaizen Blitz.

Typical Examples: Batch to one piece flow. Total Cycle time reduction Elimination of “x” defect. Standard Operation Improvement.
25 26

Push
Supplier Raw Matl

PUSH SYSTEM
Information Flow
WIP WIP Fin. Goods

Process A

Process B

Process C

Custome r

Part Flow

Pull

Execution - Parts completed to schedule without any downstream considerations Replenishment - Based on projected demand (forecasts) Shop Floor Control - System, transactions, paperwork Problems - Hidden Reaction to changes and problems - Through system - rescheduling Linkage - Operations are NOT physically linked

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September 10

KANBAN : Kanban = Signal PULL SYSTEM
Signals when to do work • Signals what work to do • Signals when not to do • work Controls inventory •
Kanban signaling device, “kanban,” can be cards, carts, golf balls, marked-off spaces (kanban squares), etc.
Information Flow Kanban Locations

Supplier S li

Raw Matl

Process A

Process B

Process C

Fin. Goods Fi G d

Customer C t

Part Flow
Execution - Parts produced upstream as signaled from the downstream operation or customer Replenishment - Based on consumption Shop Floor Control - Automatic - visible Problems - Exposed - creates urgency Reaction to changes and problems - Immediate - on-line and visible Linkage - Operations ARE physically linked

Lean Tools: Kanban System
PULL SYSTEM
Information Flow Kanban Locations

Supplier

Raw Matl

Process A

Process B

Process C

Customer

Part Flow

Make to Order and Engineer to Order Shops, by definition, operate by PULL since nothing is produced until an order from the customer is received.
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September 10

Lean Tools: 5S System

Lean Tools: 5 S System

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Lean Tools: Ergonomics
Definition of Ergonomics. Ergonomics Zone.

Lean Tools: Poka Yoke
What is Poka Yoke? “Zero Defect”: Source Inspection and the Poka-Yoke System” By Shigeo Shingo Remember three rules
Don’t Accept Defects Don’t make defects Don’t pass defects

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September 10

Lean Tools: Poka Yoke

VISUAL CONTROLS
Simple signals that provide an immediate understanding of a situation or condition. Examples: • Shadow boards for tools, supplies, and safety equipment • C l coding Color di • Lines on the floor to delineate storage areas, walk ways, work areas, etc. • Marks to indicate correct machine settings • Andon lights

• Kanban cards

VISUAL MEASUREMENT

Lean Tools: Visual Management

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September 10

Lean Vs. Six Sigma
LEAN MANUFACTURING Optimizing industrial processes. SIX SEGMA Mastering all processes in order to satisfy the Customer’s needs and to reduce Non Quality Costs.
LEAN Target of Lean
• Increase the productivity • Reduce wastes & delays • Improve shop floor Managerial relationship Target of 6 Sigma

The Fundamentals of Lean What is a Value Stream Map (VSM) Practical Examples p

6 SIGMA

• Assure the Quality of process: Customer Satisfaction & Reduction NQC • Reduce the process variability • Improve the control process

Before and After of 5S system

Reduce Transport/Motion

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September 10

IMPACT ON SURFACE

IMPACT ON PROCESS FLOW

Nb of Movements/ Day : 29 Meters Walked / Day : 10,190 m

Nb of Movements/ Day : 8 Meters Walked / Day : 495 m

IMPACT ON SAVING

IMPACT ON INDUSTRIAL EFFICIENCY

Manpower : 15 people Production lead Time : 17.8 days Process Time : 29 min Safety issues : 13 issues

Manpower : 9 people Production lead Time : 3 days Process Time : 24.5 min Safety : Rectified all 13 issues

IE= 29% in Year 2008

IE= 48% in Year 2009
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