Lean Manufacturing

Why Lean is the key to improved

manufacturing
 What is Lean?
• Fundamental objective:
– To create the most value while consuming the
fewest resources.
How is the objective accomplished?
Lean production is aimed at the elimination of
waste in every area of production including
customer relations, product design, supplier
networks and factory management. Its goal is to
incorporate less human effort, less inventory,
less time to develop products, and less space to
become highly responsive to customer demand
while producing top quality products in the most
efficient and economical manner possible.
 Cycle Time
“ One of the most noteworthy
accomplishments in keeping the price of
Ford products low is the gradual shortening
of the production cycle. The longer an
article is in the process of manufacture and
the more it is moved about, the greater is its
ultimate cost.”

Henry Ford, 1926

History of Lean Manufacturing
• Lean Production
• Eiji Toyoda visits Ford’s Rouge plant in 1950 and returns to
Japan to discuss his study with his production engineer,
Taiichi Ohno.
• Mass production techniques are determined to be
inappropriate for Japan because:
1. The market in Japan demanded a large variety of
different vehicles in relatively small quantities.
2. Unlike the practice in America, treating the workforce
as a variable cost was not possible in Japan.
Management’s right to lay off employees was severely
restricted.
3. The Japanese economy was starved for capital after
the war, so purchasing the latest, expensive equipment
was not an option.
Intro to Lean Mfg

Source: The Machine That Changed The World, Womack, Jones, and Roos, p. 44.
 Steps to Create a Lean Entreprise
1. Specify value in the eyes of the customer
2. Identify the value stream and eliminate
waste
3. Use a pull system that is triggered by the
customer
4. Involve and empower employees
5. Continuously improve in the pursuit of
perfection
(from “Lean Thinking” by Womack and Jones)
 Lean is customer focused
• Make what the customer wants, when the
customer wants it, at a price the customer
is willing to pay
 Value stream mapping
• Follow a “product” or “service” from
beginning to end
• Draw a visual representation of every
process in the material & information flow
 Value Stream Mapping
Helps us see where value is created, and where waste
exists:

• A visual approach, by “product family”

• Shows flow of both material & information
• Helps us see which specific Lean tools can be
used to improve flow and eliminate waste
• Two maps will be made: Present State (“how it
is”) & Future State (“how it should be”)
• Will guide the creation of an action plan to
make the “should be” into a reality for that
product family
Value stream map
 Definition of Value-Added
Value-Added
• Any activity that increases the market form or function
of the product or service. (These are things the
customer is willing to pay for.)

Non-Value Added (Waste or muda)

• Any activity or use of resources that does not add
market form or function or is not necessary. (These
activities should be reduced, integrated, simplified, or
eliminated.)
Using the Value Stream Map to Eliminate Waste
Non-Value-Added: Hold
all waste in a “CLOSED
Value-Added MITT”
• Complexity
• Labor
• Overproduction
• Space
• Energy
• Defects

• Materials
• Idle Materials
•Transportation
•Time
Typically 95% of all lead time is non-value-added
 Complexity
The waste of doing things the hard way!
• Excessive paperwork
• Excessive approvals
• Redundancy
Causes of complexity:
• Multiple “patches” on the process w/o fixing the
root cause.
• The “cool” factor of technology or machinery.
• Failing to look for the simple solutions.
 Labor Waste
• Human effort that adds no value to the product or
service from the customers’ viewpoint.

• Not using people’s mental, creative, and physical

abilities

• Causes of labor waste

– Poor people/machine interface
– Inconsistent work methods
– Unfavorable workstation or cell layout
– Doing unnecessary/unneeded operations
– Poor workplace organization and housekeeping
– Redundant inspections/approvals
– Extra copies/excessive information
 Overproduction
The waste of making too much, too soon, too
fast compared to the needs of the next
process.
• Causes of overproduction
– Just-in-case logic
– Misuse of automation
– Long process setup
– Non-level scheduling
– Unbalanced workload
– Misunderstood communications
– Reward system
– Unreliable shipment by suppliers
 Space Waste
• Using more space than is required to build the
product to market demand.

• Causes of wasted space

– Poor layout
– Too much inventory, especially work in process
– Poor workplace organization
– Excess equipment
– Oversized equipment
 Energy Waste
• Using more energy (people and machine)
than is required to build the product to
market demand.

• Causes of wasted energy

– Oversized or poorly maintained equipment
– Idle equipment
– Poor workplace organization
 Defects
• Waste of inspection, repair and scrapping of
material to which value has already been added.
• Causes of defects
– Weak process control
– Poor quality system
– Deficient planned maintenance
– Inadequate education/training/work instructions
– Product design
– Customer needs not understood
– Defective information
 Materials Waste
Any use of materials in excess of
what is needed to create value.
• Causes of material waste
– Not understanding the costs
– Inadequate
education/training/work
instructions
– Lack of standards
– Customer needs not understood
 Idle Materials
The waste of having materials “sitting
around” in process without any value
being added to them.

• Causes of idle materials waste

– Unbalanced workload
– Unplanned maintenance
– Long process setup times
– Poor suppliers
– Upstream quality problems
– Unlevel scheduling
 Transportation Waste
• Transporting parts and materials around
the plant, stacking and un-stacking, etc.
• Causes of transportation waste
– Poor plant layout
– Poor understanding of
production process flow
– Large batch size, long lead
times, large storage areas
 Time Waste
Any activity that consumes time without
adding value, especially the waste of
waiting (equipment downtime, waiting
for materials, setup, etc.).
• Causes of wasted time:
• Poor machine maintenance.
• Line imbalances.
• Poor setup discipline.
• Poor communication between
processes.
Lean Building Blocks

Continuous Improvement

Pull/Kanban Cellular/Flow TPM

Quality at POU Quick

Source S Changeover
Standardized Batch Team
Work Reduction s
Value
5S System Visual Plant Layout Stream
Mapping
 Definition for Kaizen ―
Alternate name for Lean
• Kaizen: leadership philosophy, a
management methodology, and a set of
tools all wrapped into one.
– Indicates long-term betterment
– Makes “little improvements”
– Under Kaizen, the entire facility is orderly
– Visual keys are used to assist in ordering
the workplace
 Visual Controls
• Simple signals that provide an immediate
understanding of a situation or condition. They
are efficient, self-regulating, and worker-managed.

• Examples:
– Kanban (stock signal) Cards
– Color-coded dies, tools, pallets
– Lines on the floor to delineate storage areas,
walkways, work areas etc.
– Lights to indicate production status
– Location signs on shop floor and in the office
–
 Standardized Work
Graphic = Good
• Tools are illustrated
• Parts are pictured and
numbered
• Spatial relationships
are clearly shown
• Small items enlarged
to show assembly detail
• All items are either
physically labeled or
identified by number in
assembly graphic
Standardized Work
 5S - Workplace Organization
A safe, clean, neat, arrangement of the workplace
provides a specific location for everything, and
eliminates anything not required.

In Lean manufacturing, we refer to this as 5S.

Examples: EMT’s, fire department, etc.

 Elements of a 5S Program
• Sort—Perform “Sort Through and Sort Out,” - red tag all
unneeded items and move them out to an established
“quarantine” area for disposition within a predetermined time.
“When in doubt, move it out!”
• Set in Order—Identify the best location for remaining items and
label them. “A place for everything & everything in its place”.
• Sweep (Systematic Cleaning)—Clean everything, inside and out.
Use visual sweeps to ensure everything is where it should be
and that junk is not accumulating.
• Standardize—Create the rules for maintaining and controlling
the first 3 S’s. Use visual controls.
• Sustain—Ensure adherence to the 5S standards through
communication, training, self-discipline and rewards.
Before 5S
Before 5S
After 5S
After 5S
After 5S
Traditional Plant Layout
 Plant Layout for Flow

QC Ship
Raw Stock Rec

Screw QC
Shear Stamp Machine

Lathe Drill
Brake Mill Assembly

Weld Grind Finish Parts Stock

 Obstacles to Flow
• “Monuments”:
– Unmovable items in the plant, i.e., large pieces of
equipment, structural supports or walls, etc.
– Too expensive to move or replace, yet not in the
proper place to allow good product flow.

• What do we do about monuments?

– We have to leave them where they are (for now)!
– We do our best to work around them.
– Put in place the best flow given the monuments, but
must always be looking for a better way.
 Impact of Batch Size Reduction
Batch & Queue Processing
Process Process Process
A B C

10 minutes 10 minutes
10 minutes

Lead 30+ minutes for total order

21+ minutes for first piece
Time
Continuous Flow Processing

Process
ProcessProcess
A B C

12 min. for total order

3 min. for first part
 The Ideal Lot Size
• Ideal lot size is one
• Velocity = The smaller the lot
size, the faster the parts will flow
through the manufacturing process
• Flexibility = The smaller the lot
size, the more variety in demand the
system can handle
 More Lean Tools
• Setup Reduction or Quick Changeover
(SMED)
• Point of Use Storage (POUS)
• Quality at the Source
• Visual Inspection
• Pull (including Kanban, Two Bin,
Min/Max)
• Cellular Manufacturing
• Total Productive Maintenance
 Change Over
• STEPS IN A CHANGEOVER:
1. Preparation
2. Remove/Install Tooling
3. Change Machine Settings
4. Make Trial Pieces & Adjust
Setup Reduction or Quick Changeover
• Definition: Minimizing the time from last
good piece of the current product run to
first good piece of the next (different)
product run.
Percent of time of changeover
Making trial pieces and adjusting
30% Preparation, after-process
50% adjustment, checking, return to
storage of parts, tools, fixtures,
15%
15%
5% move materials
Removing parts, blades, jigs,
etc.; mounting same for next lot,
move materials
Machine settings, measurements
 Change Over
• Reduce the complexity and increase the efficiency of
setups by standardizing as much of the hardware and
methodology as possible.
No/Low Cost Solution: Use of
Positioning Pins
Positioning
Pins

Positioning
Pins
No/Low Cost Solution:
One-Turn Methods
Pear-Shaped Hole Method

Tighten Here

Attach and
Remove
Here
Other Functional Clamps
Quick Changeover: Visual Controls
Quick Changeover
Clearly labeled
cutter size and
style

All regular router

cuts needed in this
workcell stored at
router table.
 Standardization & Setup
Reduction

• Common fasteners and fittings – standardize on the

sizes and types.
• Standardized carrier plates, fixtures, shut heights,
etc.
• Standardized procedures along “product families”,
where the product families share common
manufacturing processes & equipment.
• Share information and communicate “best practices”
across all operations and shifts.
• Monitor & track setup times relative to standard time.
 Point of Use Storage (POUS)
• Raw material, components used, and
information is present at workstation where
used

• Works best if vendor relationship permits

frequent, on-time replenishment and small
shipments

• Simplifies physical inventory tracking, storage,

and handling
 Quality at the Source
• Source Inspection: Operators must be certain
that the product they are passing to the next
workstation is of acceptable quality.

• Operators must be given the means to perform

inspection at the source, before they pass it
along.

• Samples or established standards are visible

tools that can be used in the cell for such
purposes.
 Visual Inspection Example

• Specify what to inspect

• Clear inspection criteria
• Don’t overload operator
with complex content or
criteria

•No missing screws

•All screws seated
 Push vs. Pull Systems
• Push System
– Resources are provided to the consumer
based on forecasts or schedules

• Pull System
– A method of controlling the flow of
resources by replacing only what has been
consumed
 Pull System
• Pull system consists of:
– Production based on actual consumption
– Small lots
– Low inventories
– Management by sight
– Better communication
 Pull System Flow
Diagram
Information Flow

Raw Process Process Process Fin. Customer

Supplier Matl A B C Goods

Parts Flow

Kanban
Locations
 Pull System Methods
• Kanban:
– A visual signal telling us what we need to produce.
– Cards, “open spots”, etc.
• Two-bin System:
– Used for commonly produced items, sub-assemblies.
– When a bin is empty, fill it.
– Ensures there is always material available while
minimizing inventory.
• Supermarket or ‘Grocery Store’ System:
– Controlled & limited “shelf” space.
– Replenish items to the shelf as needed.
 Cellular Manufacturing
Linking of manual and machine operations into the
most efficient combination to maximize value-
added content while minimizing waste.

Punch
De-burr
Cut to size

Package Form

Sand

Advantages of cells: Communication and shared labor

Moving to Cellular Manufacturing/Flow Production
Stage 1 Stage 2
Production in Specialized Departments Production in Product Cell
Dept “A” Dept “B” Dept “C”
A Inv B Inv C
A C E D Inv
Inv
A
Inv Inv B Inv Inv Inv Inv Inv
C

A Inv B Inv C

Dept “D”
D
Dept “E” C
E

Inv
D
Inv Inv E Inv A
D
D E
Inv B Inv

Stage 3 Stage 4
Production in Compact Cell with One-Piece Flow Production in Compact Cell with One-Piece Flow
and Separation Man/Machine
E D
E D

C C

A B A B
Total Productive Maintenance (TPM)
• Systematic approach to the elimination of
equipment downtime as a waste factor

• Enlisting the intelligence and skills of the

people who are MOST familiar with the
factory machines: the equipment operators

• Charting/analyzing equipment performance

to identify root cause of problems, and
implementing permanent corrective actions
Continuous Improvement
(CI)
Old Adage:
“If you always do what you always did, you’ll
always get what you always got.”

Competitive Corollary:
“If the other guy gets BETTER, you’re gonna
get LESS.”
 Lean Workforce Practices
• Teams
– With identified goals and measured performance
– With rotation of highly specified jobs

• Cross-trained and multi-skilled employees

– Who can work many operations within a cell and
operations in different cells

• Continuous improvement philosophy

• Process quality, not inspection
• Use of participatory decision-making processes
– Gap analysis, team-based problem solving, project
management, etc.
Implementation Success Factors
• Unyielding leadership
• Strategic vision based on Lean enterprise as part
of company strategy

• Observe outside successes and failures

• Ability to question EVERYTHING
• Deep commitment to EXCELLENCE
• Consistency
• Clear channels of communication
Comparison of Traditional vs. Lean
Traditional Lean
• Complex • Simple and Visual
• Forecast Driven • Demand Driven
• Excessive Inventory • Inventory as Needed
• Speed Up Value-Added • Reduce Non-Value-
Work Added
• Large Batch Production • Small Lot Size
• Long Lead Time • Minimal Lead Time
• Quality Inspected-in • Quality Built-in
• Functional Departments • Value Stream Managers
 Quality of a GOOD Leader
Must Not Must

Flex Blame the

Give up Muscles worker Think of at Go to the Kaizen your
Throw fits least 7 ways Shop Floor Standard Work
Blame the Measure to do better

Show Boat
Empower the Team
Tamper with Intimidate Lead by Example
Cover up the Measure

Hide in the Set goals Have a vision Celebrate Success

office
Stress out Throw People at Problems

Provide the
Create smoke Observe the process Communicate
Be clueless right tools
screens Grovel Find the Waste direction
 Mapping the Future State
• Determine Available Time/Demand
• Determine where continuous flow is possible
• Determine what pull systems will be used
• Determine pacemaker operation
• Determine how pacemaker will be
scheduled/leveled
• Determine increment of work released at
pacemaker
• Identify necessary process improvements to
achieve future state flow
Future State Value Stream Map
 Results
Old New
• Production lead time 23.5 days 4.5 days
LEAN
ENTERPRISE

Thank You.
 Places to look for waste
• Over-production
• Waiting time
• Transportation
• Processing
• Inventory
• Motion
• Scrap
Setup Time Drives Batch Size:
The Economic Order Quantities (EOQ) model determines
the most economic lot/batch size for a production run.

Changeover Cost + Inventory Carrying

Cost

Variable
Cost Inventory Carrying Cost

Changeover Cost

Fixed
Cost EOQ Increasing Lot/Batch
Size