Lean Manufacturing

Professor Deborah Nightingale

September 26, 2005

TPS
Cost control through the
elimination of waste
J
Right Qty I Perfect
J D
I Right Mix Quality
Right Time O
T K
A

Standardized Leveled & Balanced Kaizen

Work Production

Engaged and Creative Workforce

 Content

• General lean concepts in factory design

• Manufacturing Video

• Manufacturing System Design Framework

• Conclusions

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 2
 Lean from the Toyota Production
System Shows How It All Relates

TPS
Cost control through the
elimination of waste
J
Right Qty I Perfect
J D
I Right Mix Quality
Right Time O
T K
A

Standardized Leveled & Balanced Kaizen

Work Production

Engaged and Creative Workforce

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 3
 Aerospace Factory Designs
Have Many Things to Consider
Inputs
• Production volume
Outputs
• Product mix
• Cost
• Product design
• Quality
• Frequency of changes Factory • Performance
• Complexity Design
• Delivery
• Process capability • Flexibility
• Type of organization • Innovativeness
• Worker skill/knowledge Focus
Here

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 4
 Benefits from a Focus on Process
Rather Than Operation Improvements
• Operations O
p
• Value adding e
• Transportation r X X Part B
a
• Delay (2 types) t X X Part A
i Store at
• Inspection o
Store in Move to
Warehouse Staging Staging
Move By
AGV
Machine

n
• Factory Design Factory Design
• Layout choices
Types of Operations
• Operation policies
• Process Technology Storage

• Tapping human Value Adding

knowledge I Inspection
X Transport

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 5
 Traditional Manufacturing
Receiving, Injection Molding Center
Incoming Inspection, 2
and Shipping
1
D D D L L

13 MC
D D D L L
4
3

Machining L L5
Final Center 10
Assembly
Center
G G G 11 7 M M
MC 6

G G G 8 M M
12

9
Heat
Inspection and Component Subassembly
Treat
Test Center

The material flow could take up to millions of different paths,

creating waste of transportation and waiting at virtually every step.

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 6
 Cellular Manufacturing
Receiving,
Injection Molding Center
Incoming Inspection,
and Shipping
D D MC MC

D
G M

M
G
D L

G
M G

L
G

M
Work Flow
M
G

G M
M
G

L
M
G

G
G

Heat
L

D L
G
L

G
M
L
D

Treat
D

D
M G

D
D D

Rather than route the materials required through the entire plant, materials flow
to the head of each work cell, through each process in the cell, then to final
assembly. This eliminates most of the transportation and waiting we would see
in the traditional approach.

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 7
 Only Understood Processes
Can Be Improved
• Establish models and/or simulations to permit understanding
• Ensure process capability & maturation
• Maintain challenge of existing processes

Tools
• Five Whys
• Process flow charts
• Value stream mapping
• Statistical tools
• Data collection and discipline

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 8
 Definite Boundaries Exist
Between Flow and Pull
Flow Pull
• MRP used for planning • Takt time
and control
• Balanced production
• Group technology
• Level production
• Reduce the number of
flow paths • Response time less than
lead time
• Batch or single items
• Standard work
• Inventory to buffer flow
• Single item flow
• Process control
• Correct problems
• Minimize space & distance immediately - STOP if
traveled with contiguous necessary
processing established

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 9
 Lean Tools Can Apply even if
JIT System Not Logical
• Value stream mapping
• Work groups to implement
change
• Visual displays and
controls
• Error proofing
• Standardized work
• Quick changeover
• Total productive
maintenance
• Rapid problem solving
• Self inspection Source: J. Miltonburg, Manufacturing Strategy ©1995, p31.

• Five Sʼs
ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 10
 Content

• General lean concepts in factory design

• Manufacturing Video

• Manufacturing System Design Framework

• Conclusions

Source: Tom Shields, Lean Aerospace Initiative

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 11
 Production Operations Transition-To-Lean Roadmap
Supply Chain/External Environment
• Legal • Government Reqd. Systems
• Environmental (MMAS, EVMS, etc.)

Enterprise / Production System Interface

• Financial • Procurement • Quality • Training and Human Resources
• Information • Engineering • Safety • Workforce/Management Partnership
Phase 0 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6
Adopt Lean Define Identify Design Implement Total
Paradigm Prepare Value Value Stream Production System Implement Flow System Pull
• Build vision • Integrate with • Select initial • Record current • Develop a future • Standardize • Select
• Build vision • Integrate with • Select initial • Record current • Develop a future • Standardize • Select
• Establish need Enterprise Level implementation state value state value operations appropriate
• Establish need Enterprise Level implementation state value state value operations appropriate
• Foster lean Top • Establish an Lean scope stream stream map • Mistake proof production
• Foster lean • Establish an scope stream stream map • Mistake proof production
learning Leadership Operations Roadmap • Define • Chart product • Identify takt time processes system control
learning Operations • Define • Chart product • Identify takt time processes system control
• Make the Lean customer and requirements • Achieve process mechanism
• Make the Lean customer and requirements • Achieve process mechanism
commitment Implementation • Define value - information • Review control • Strive for single
commitment Implementation
Commitment Team(s) • Define value - information • Review control • Strive for single
• Obtain Sr. Quality, flow make/buy • Implement TPM item flow
• Obtain Sr. Team(s) Quality, flow make/buy • Implement TPM item flow
Mgmt. buy-in • Develop Schedule, and • Chart operator decisions • Implement self- • Level and
Mgmt. buy-in • Develop Schedule, and • Chart operator decisions • Implement self- • Level and
implementation Target Cost movement • Plan new layout inspection balance
implementation Target Cost movement • Plan new layout inspection balance
strategy • Chart tool • Integrate • Eliminate/ production flow
strategy • Chart tool • Integrate • Eliminate/ production flow
• Develop a plan movement suppliers reduce waste • Link with
• Develop a plan movement suppliers reduce waste • Link with
to address • Collect • Design visual • Cross train suppliers
to address • Collect • Design visual • Cross train suppliers
workforce baseline data control system workforce • Draw down
workforce baseline data control system workforce • Draw down
changes • Estimate and • Reduce set-up inventories
changes • Estimate and • Reduce set-up inventories
• Address Site justify costs times • Reassign people
• Address Site justify costs times • Reassign people
Specific Cultural • Plan TPM • Implement cell • Re-deploy/
Specific Cultural • Plan TPM • Implement cell • Re-deploy/
Issues system layout dispose assets
Issues system layout dispose assets
• Train key
• Train key
people
+ • Implement visual
• Implement visual
controls
people controls
• Establish target
• Establish target +
objectives
objectives
(metrics)
(metrics) +
+ +
Phase 7
Strive for Perfection
• Team development • Institutionalize 5S • Expand TPM • Evaluate progress
• Optimize quality • Institute Kaizen events • Evaluate against using lean maturity
Expand • Remove system barriers target metrics matrices
Internally/Externally
ENTRY
IMPROVED
© 2000 Massachusetts Institute of Techn
ology COMPETITIVE
POSITION
6/5/00
 Content

• General lean concepts in factory design

• Manufacturing Video

• Manufacturing System Design Framework

• Conclusions

Source: Tom Shields, Lean Aerospace Initiative

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 13
 Background

• Matured aerospace industry

• Industrial innovation theory

• Implications on the aerospace industry

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 14
 Matured Aerospace Industry

• Customers
demanding specific
capabilities
• Cost and
affordability more
prominent
• Innovation
characteristics
have changed
ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 15
 Utterbackʼs Dynamics of
Innovation Model
• Rate of product
innovation highest
during formative years
• As product matures rate
of process innovation
overcomes product
innovation
• Very mature products
have low levels of both
product & process
innovations

Source: William Abernathy & James Utterback, 1978

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 16
 Theory in Application
Utterbach's Dynamics of Innovation

Emergence of the
Dominant Design

Fluid Phase:
Rapid technology Transition Phase:
Number of Firms

innovation, Shakeout, competition

many firms shifts to process
founded
Specific Phase:
Stable, small number of firms
competition shifts to price

Destabilizing changes in technology

or process can destroy industry!

Time
Source: Data (cars), from Entry and Exit of Firms in the U.S. Auto Industry: 1894-1992. National Academy of Science: theory concepts from
Utterback, Dynamics of Innovation, 1994

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 17
 Dominant Design?

1958

1995

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 18
 Dominant Design?

1953

1972

2002

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 19

 Extension of Theory to the

Aerospace Industry
Industrial evolution and the emergence
of the dominant design
50 35

Typewriters: Cars: enclosed Aeronautics:

Open, moving carriage steel body Jet transport and 30
40 80 jet fighter-bomber

25

Aerospace companies
Number of major U.S.
automobile companies
typewriter companies

Government intervention
60
Number of major

Number of major

30 motivated by cold war

20

15
20 40

10
10 20 Natural
progression? 5

0 0
1860 1880 1900 1920 1940 1960 1980 2000
Source: Murman, et al., Lean Enterprise Value, 2002 Year

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 20
 Implications for the Aerospace
Industry
• Producibility and cost are more competitive factors
• Manufacturing inputs should carry more weight
• Emphasis should be on process innovation
• Firm core competencies must match industrial maturity
• Manufacturing strategy cannot be stepchild to platform
strategy

Result:
Result: Heritage
Heritage equipment,
equipment, facilities
facilities and
and
mindsets
mindsets drive
drive manufacturing
manufacturing system
system design
design

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 21
 Proposal
AAholistic
holisticmanufacturing
manufacturingsystem
systemdesign
designframework
framework
to
toensure
ensure process
processconsiderations
considerationsare
are integra l
integral
to
tothe
the product
productdevelopment
developmentprocess
process
Characteristics
• Uses principles of systems engineering
• Visual depiction of “design beyond factory floor” ideas
• Manufacturing as part of the product strategy
• Manufacturing system design is strategy driven, not product
design driven
• Combines multiple useful tools
• Provides insights into order and interactions

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 22
 Manufacturing System Design

• Manufacturing system “infrastructure” design

• Manufacturing strategy
• Operating policy
• Partnerships (suppliers)
• Organization structure details

• Manufacturing system “structure” design

• Buildings, location, capacity

• Machine selection
• Layout
• WIP

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 23
 Stakeholders
Society Suppliers Customers Employees Stockholders Mgmt Govt.
Manufacturing System Design
Corporate Level(Corporate Strategy)
[Seek approval]
[Interpret]
(Business Strategy)
Business Unit

Product Strategy
Suppliers Product Design Manufacturing Marketing

Requirements/Considerations/Constraints

Optimizing
Manufacturing System Design/Selection

Modifications
Implement (pilot)

Evaluate/Validate

Stakeholders
Manufacturing System Design
Corporate Level
[Seek approval]
[Interpret]

Business Unit

Product Strategy
Suppliers Product Design Manufacturing
Customer Needs
Marketing
Make/Buy
DFMA, IPT
3-DCE Technical Feasibility
Risk-sharing Partnerships Concurrent Engineering Feasible performance guarantees

- Miltenburg, - 3P, - 2D plots,

Requirements/Considerations/Constraints
- MSDD - AMSDD - design Kaizen

Modifications
- Analytical Tools,
- Simulation Tools
Manufacturing System Design/Selection
• VSM
Fine Tune • Kaizen
• Trial & Error
Implement (pilot) • Kaikaku

Finalized Product Design

Evaluate/Validate
 Insights from the Framework

• Linkage of strategy and manufacturing

system design
• Three important characteristics

• Phase presence
• Phase timing
• Breadth across functions

Following
Followingthe
the framework
framework process
processwill
willresult
resultin
inthe
the
development
developmentof ofeffective
effective manufacturing
manufacturingsystem
systemthat
that
meets
meetsthe
the goals
goalsof ofthe corporation(Vaughn
the corporation (Vaughn&&Shields)
Shields)

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 26
 Conclusions
• Competitive advantage from manufacturing
excellence (enterprise strategy)

• Performance more closely related to how

system designed (not production volume)

• Manufacturing as a true participating partner

with the other functions (coequal status)

ESD.61J / 16.852J: Integrating the Lean Enterprise © Deborah Nightingale, 2005 Massachusetts Institute of Technology Page 27