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LEAN MANUFACTURING PRINCIPLES

© NCSU IES LEAP Group Rev 3/04

www.ies.ncsu.edu/lean

The Connection

North Carolina State University
Teaching, Research, Extension and Engagement

 College of Engineering
Industrial Extension Service (IES)

www.ies.ncsu.edu/lean

Industrial Extension Service
 Lean Enterprise Advancement Program (LEAP)
 In-plant applications, manufacturing networks, public
training, Shingo Prize

 Advanced Performance and Standards (APS)
 FORUMS, QS, ISO, Six Sigma, Project management,
NC Awards for Excellence

 Environmental, Health and Safety (EHS)
 Training, technical assistance, needs assessment in
ISO, HAZWOPER, HAZMAT, ergonomics and industrial hygiene

 Energy and Facilities Management
 Energy usage assessments

www.ies.ncsu.edu/lean

Lean Enterprise Advancement Program
Mission -

Improve the quality, cost and delivery of North Carolina manufacturing firms to improve their competitiveness by understanding and implementing lean enterprise business systems based on TPS model.

edu/lean The LEAP mission is accomplished through training facilitation manufacturing networks lean assessments .ies.ncsu.www.

1996 .organizing the Value Stream to be continuous  PULL . Womack and Jones.responding to downstream customer demand  PERFECTION .the steps that deliver value  FLOW .www.relentless continuous improvement (culture) --.Lean Thinking.ies.ncsu.what customers are willing to pay for  VALUE STREAM .edu/lean LEAN THINKING Key Principles of Lean Thinking  VALUE .

ncsu.ies.www.edu/lean Defining Lean Lean is: “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.” The MEP Lean Network .

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Lean Goals- TPS “True North”
   

Zero defects 100% value-add Lot size of one Pull of the customer

TSSC

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LEAN MANUFACTURING
Why Become Lean?
•PQCDSM •Improve Customer Satisfaction •Increase Sales and Profits •Insure Long-term Health of Company •Survival •Create Sustainable Competitive Advantage

www.ies.ncsu.edu/lean

Typical Results from Lean Conversions

Percentage of Benefits Achieved
0
Lead Time Reduction

25

50

75

100

Productivity Increase
WIP Reduction Quality Improvement Space Utilization

Flexibility

Skill Enhancement

Visual Management

www.ies.ncsu.edu/lean

LEAN MANUFACTURING
Where has Lean been successfully implemented?
•Manufacturing
Automotive Industrial Products Furniture Textiles and Apparel Printing and Packaging Consumer Products

•Service Industries •Military •Healthcare

ies.edu/lean Developing a Lean Factory The Goal and Getting There from Here •The Goal .ncsu.Lean Throughout the Entire Enterprise •Set Aggressive Improvement Goals •Measurements of Existing Operations •Recognize Current Problem Areas •Apply the Lean Production System Concepts •Commit to the Continuous Improvement Process •Just do it! .www.

edu/lean Value Added/Non-value Added  Value-added:  ANY ACTIVITY THAT PHYSICALLY CHANGES THE MATERIAL BEING WORKED ON (not rework/repair!)     Machining Drilling Assembly Painting Knitting Spreading/Cutting Dying Sewing  Non-value added:  ANY ACTIVITY THAT TAKES TIME.www.ies. OR SPACE BUT DOES NOT PHYSICALLY CHANGE THE MATERIAL   Sorting Counting Stacking Checking . MATERIAL.ncsu.

www.ies.edu/lean Lean = Eliminating the waste Value added 8 Wastes 5%      Non-value added    Overproduction Excess inventory Defects Non-value added processing Waiting Underutilized people Excess motion Transportation Typically 95% of Total Lead Time is Non-Value Added!!! .ncsu.

.ies.www.ncsu. Value stream maps can be drawn for different points in time as a way to raise consciousness of opportunities for improvement.Lean Lexicon .edu/lean Value Stream Mapping A simple diagram of every step involved in the material and information flows needed to bring a product from order to delivery.

ies.ncsu.edu/lean .www.Learning to See .

ies.ncsu.edu/lean Lean Production System Goals . lowest cost.highest quality.www. shortest lead times Just-In-Time •continuous flow •takt time/pace •pull system •triggers Involvement Jidoka •separate man & machine work •identify abnormal conditions •poka yoke Heijunka Standardized Work Kaizen Stable Manufacturing Process .

ies.ncsu.www.edu/lean Toyota’s Philosophy • Customer first • People are the most valuable resource • Kaizen (continuous improvement) • Shop floor focus .

www.edu/lean Lean Production System Goals .ies. shortest lead times Just-In-Time •continuous flow •takt time/pace •pull system •triggers Involvement Jidoka •separate man & machine work •identify abnormal conditions •poka yoke Heijunka Standardized Work Kaizen Stable Manufacturing Process .ncsu. lowest cost.highest quality.

ncsu.ies.edu/lean Stability The Four Ms Operations safely carried out with all task organized in the best known sequence and by using the most effective combination of resources •huMans •Materials •Methods •Machines .www.

edu/lean Stability The 5S’s •Sort •Keep only what is needed in your area •Stabilize •A place for everything and everything in its place •Shine •Clean up the workplace •Standardize •Develop system (rules) to maintain what has been done •Sustain •Self discipline to maintain established procedures .ies.www.ncsu.

Before .ncsu.ies.www.edu/lean Stability The 5S’s .

ies.edu/lean Stability The 5S’s .www.ncsu.

ies.edu/lean Stability The 5S’s Courtesy of National Textiles .www.ncsu.

and worker managed.edu/lean Stability Visual Controls Visual Controls are simple signals that provide an immediate understanding of a situation or condition. tools.www. diagrams • Color coded dies. They are efficient. Examples include: • Pictures. work areas. • Improved lighting . pallets • Lines on the floor to delineate storage areas.ncsu. walk ways.ies. self regulating. etc.

www.ies.edu/lean Stability Visual Controls .ncsu.

www.ies.ncsu.edu/lean Plant Layout Raw Stock QC Stability Receiving Shipping Shear Stamp Screw Machine QC Lathe Brake Mill Drill Assembly Weld Grind Finish Parts Stock .

www.edu/lean Cellular Layout 1 Lathe 2 Drill 3 Mill 4 Mill 5 Inspect Stability 27 Seconds 27 Seconds 27 Seconds 6 Drill 10 Pack 9 Inspect 8 Drill 7 Test Market Demand = 220.ies.000 Units Per Year Takt Time = 27 Seconds .ncsu.

NC .ncsu.ies. Charlotte.www.edu/lean Stability Cellular Layout Courtesy of Duff-Norton.

edu/lean Stability Total Productive Maintenance Total Productive Maintenance (TPM) is a series of methods to keep equipment running The goals of the TPM process include: •Develop people who are equipment-knowledgeable •Create well-engineered equipment: building in safety and quality •Create an environment where enthusiasm and creativity flourish •Maximize equipment productivity and capacity as measured by Overall Equipment Effectiveness (OEE) .ies.ncsu.www.

ncsu.edu/lean Stability OEE = Availability × Performance Efficiency × Rate of Quality Availability Performance Efficiency Rate of Quality Do you manufacture quality products? Are your processes repeatable? When or how often do you Does your equipment lose total availability of start and stop a lot? your equipment? Does your equipment run How long are your setat 100% of its designed ups? speed? Does your equipment break down frequently? The Six Big Losses that downgrade Machine Effectiveness: Related Losses • Setup and Adjustment • Breakdowns Related Losses Related Losses • Startup • Defects and Rework • Idling and Minor Stoppages • Reduced Speed .ies.www.

Check heat exchanger air filter (change when dark) 5. Check coolant level through clear Plexiglas 2.edu/lean Sample Daily Operator PM Daily Operator PM          1. Check way lube reservoir (add when low) 7. Check servo drive air filter (change when dark) 6.www.ies. Check main motor cooling fan (string should move) 9. Check bar feeder hydraulic motor air filter  11. Check servo drive fans (string should be moving) 4.ncsu. Check mist collector motor and air filter (change when dark)  10. Check heat exchanger fans (strings should be moving) 3. Check main motor air filter (change when dark) 8. Check bar feeder hydraulic oil level (add when low) .

ncsu.ies.www.edu/lean Developing a Lean Factory Summary – Stability in Manufacturing Processes •4Ms •5S •Visual Controls •Plant Layout •Total Productive Maintenance .

ncsu.ies.www.edu/lean Lean Production System Goals . shortest lead times Just-In-Time •continuous flow •takt time/pace •pull system •triggers Involvement Jidoka •separate man & machine work •identify abnormal conditions •poka yoke Heijunka Standardized Work Kaizen Stable Manufacturing Process . lowest cost.highest quality.

excess inventory (work-in-process and finished).edu/lean Just-in-Time •Pull System is a flexible and simple method of controlling/balancing the flow of resources. repair.ies. expediting.www.ncsu. obsolescence. equipment. rework. Pull System •Pull System consists of: – Production based on actual consumption – Small Lots – Low inventories – Management by Sight – Better Communication . – Eliminating waste of handling. facilities. storage.

www.edu/lean Just-in-Time Pull System • Kanban .Card.A signal to indicate when more parts are needed (Order or Produce) .ncsu.ies. empty Bin. In Process Kanban (IPK) on plant floor .

ies.edu/lean Just-in-Time Pull System Courtesy of Ingersoll-Rand Co.www.ncsu. Southern Pines. NC ..

pull system. 5S .www. Kanban.ies.ncsu. but only brings what shelf can accommodate •the supermarket combines visual control.edu/lean Just-in-Time Supermarket Analogy • A carton of milk is removed from shelf •A stock person restocks the empty location.

edu/lean Just-in-Time Quick Changeover (Set-up Reduction) Single Minute Exchange of Dies (SMED) •a series of techniques for changeovers of production machinery in less than ten minutes (single digit minutes) Set-up Reduction Program Goals •To achieve smaller lots •To maintain consistent quality •To minimize inventory •To reduce lead times •To address frustration of setup personnel .ncsu.ies.www.

www.ies.edu/lean Just-in-Time Basic SMED Principles  Identify internal vs. external changeover tasks  Analyze each task’s real purpose and function  Focus on no/low cost solutions  Aim to eliminate changeover time .ncsu.

edu/lean Just-in-Time Positioning Pins Positioning Pins .www.ncsu.ies.

www.edu/lean Just-in-Time No/Low Cost Solution: One-Turn Methods Pear-Shaped Hole Method Tighten Here Attach and Remove Here .ies.ncsu.

ncsu.edu/lean Just-in-Time No/Low Cost Solution: One-Turn Methods Speed Nut .ies.www.

ncsu.www.ies.edu/lean Just-in-Time No/Low Cost Solution: One-Turn Methods Wing Nut Method .

ncsu.www.edu/lean Just-in-Time No/Low Cost Solution: One-Motion Methods Cam Method .ies.

www.edu/lean Just-in-Time Quick Changeover Not quick: Must heat molds and plates before changeover Quicker: Test stand with hot plates to pre-heat molds and plates Courtesy of Playtex Panama. Santo Domingo.ies. DR .ncsu.

lead time. cycle time.www. etc.edu/lean Just-in-Time Continuous Flow .ies.Batch Size Reduction •The best batch size is one .ncsu. or make one and move one! •Benefits: Reduces WIP.one piece flow. and improves quality .

for first part .edu/lean • Batch & Queue Processing Process Just-in-Time Process Process A 10 minutes B C 10 minutes 10 minutes Lead Time: 30+ minutes for total order 21+ minutes for first piece • Continuous Flow Processing ProcessProcessProcess A B C 12 min.ies.www.ncsu. for total order 3 min.

edu/lean Just-in-Time Takt Time = Demand Rate Takt Time = Work Time Available Number of Units Sold GOAL: Produce to Demand .ncsu.www.ies.

ncsu.www.Just-in-Time •Pull Systems/Kanban •Point Of Use Storage •Quick Changeover/Setup Reduction •Continuous Flow •Takt Time .edu/lean Developing a Lean Factory Summary .ies.

highest quality.edu/lean Lean Production System Goals . shortest lead times Just-In-Time •continuous flow •takt time/pace •pull system •triggers Involvement Jidoka •separate man & machine work •identify abnormal conditions •poka yoke Heijunka Standardized Work Kaizen Stable Manufacturing Process .ies. lowest cost.www.ncsu.

before they pass it along. .edu/lean Jidoka Quality at the Source •Source Inspection: Operators must be certain that the product they are passing to the next work station is of acceptable quality. •Operators must be given the means to perform inspection at the source.ies.www.ncsu.

ies.www.ncsu. Honduras . Villanueva.edu/lean Jidoka Quality at the Source Source Inspection at Molding Courtesy Sara Lee Intimate Apparel.

ncsu.edu/lean Jidoka “Bull’s Eye” for checking package size Courtesy of National Textiles .www.ies.

ies.edu/lean Jidoka Quality at the Source •Samples or established standards are visible tools that can be used in the cell for such purposes •Process Documentation defining quality inspection requirements for each work station may need to be developed .www.ncsu.

ncsu. . can ensure that proper operating conditions exist prior to actual production. . .used with source inspection.can reduce the time and cost of informative inspection to near zero.ies.perform well when corrective action involves trying to eliminate oversights and omissions.www. Poka-yoke devices: .edu/lean Jidoka Poka-Yoke (Mistake Proofing) A Poka-yoke device is any mechanism that either prevents a mistake from being made or makes the mistake obvious at a glance.

gas cap tether does not allow the motorist to drive off without the cap 3.gas cap is fitted with ratchet to signal proper tightness and prevent overtightening.www.edu/lean Jidoka Poka-Yoke (Mistake Proofing) Examples: Fueling area of car has three mistakeproofing devices: 1.ncsu. leadedfuel nozzle from being inserted 2.filling pipe insert keeps larger.ies. .

edu/lean Jidoka Poka-Yoke (Mistake Proofing) .ies.ncsu.www.

ies. --.ncsu. An andon can indicate production status (for example. machine downtime. An andon can also be used to display the status of production in terms of the number of units planned versus actual output. which machines are operating). an abnormality (for example. tooling faults. operator delays. and needed actions. a quality problem.edu/lean Jidoka Andon A visual management tool that highlights the status of operations in an area at a single glance and that signals whenever an abnormality occurs. and material shortages). such as changeovers.www.The Lean Lexicon .

edu/lean Jidoka Andon Courtesy of Sara Lee Intimate Apparel .ies.www.ncsu.

‟” At this moment.ies.From JIT Kakumei no Shogeki by Kiyoshi Suzaki. And I said so when it was my turn to report. --. when you say you do not have a problem. that is the problem.edu/lean Jidoka Identifying Problems “When I was asked to attend the general manager‟s meeting the first time.ncsu. I was happy to attend because I thought I could say that there were no problems in my department. „Steve. 14. Then. this General Manager from Toyota looked straight into my eyes and said. I realized that in order to succeed in this business.www. . p. I have to change my way of thinking totally.

ncsu.ies.www.edu/lean Jidoka Identifying Problems .Trystorming Before After Courtesy of National Textiles .

ies.ncsu.edu/lean Jidoka .www.

ies.www.edu/lean Developing a Lean Factory Summary .ncsu.Jidoka •Quality at the Source •Poka Yoke •Andons •Effective Problem Solving .

lowest cost.www.ncsu. shortest lead times Just-In-Time •continuous flow •takt time/pace •pull system •triggers Involvement Jidoka •separate man & machine work •identify abnormal conditions •poka yoke Heijunka Standardized Work Kaizen Stable Manufacturing Process .ies.highest quality.edu/lean Lean Production System Goals .

--. including units in machines. The precise work sequence. Takt time. which is the rate at which products must be made in a process in order to meet customer demand.www.edu/lean Standardization Standardized Work Establishing precise procedures for each operator’s work in a production process. in which an operator performs tasks within takt time. required to keep the process operating smoothly. The standard inventory. 3.ncsu.ies. 2. based on three elements: 1.The Lean Lexicon .

ies.www.ncsu.edu/lean Standardization .

Southern Pines.www.edu/lean Standardization Standard Work Board Courtesy of Ingersoll-Rand Co. NC ..ncsu.ies.

ies.www.ncsu.edu/lean Standardization Takt Time = 10 seconds .

.ncsu. manpower. capital costs.edu/lean Standardization Heijunka Leveling the type and quantity of production over a fixed period of time.ies.www. This enables production to efficiently meet customer demands while avoiding batching and results in minimum inventories. and production lead ---The Lean Lexicon time through the whole value stream.

A load-leveling box has a column of kanban slots for each pitch interval.www.edu/lean Standardization Heijunka Box A tool used to level the mix and volume of production by distributing kanban within a facility at fixed intervals. and a row of kanban slots for each product type. Also called a leveling box. ---Learning to See .ncsu.ies.

edu/lean Standardization Paced Withdrawal The practice of releasing production instructions to work areas and withdrawing completed product from work areas at a fixed.www.ies. frequent pace. performs a route through a facility at precisely determined time intervals. ---Learning to See . In this type of handling system. a material handler.ncsu. or waterstrider.

edu/lean Standardization Courtesy of Duff-Norton. Charlotte. NC .ies.ncsu.www.

ies.ncsu. Supermarkets are ordinarily located near the supplying process to help that process see customer usage and requirements.edu/lean Standardization Supermarket The location where a predetermined standard inventory is kept to supply downstream processes.www. ---Learning to See .

ies.www.ncsu. PR . Humacao.edu/lean Standardization Supermarket Pull System Courtesy of Seamless Textiles.

p. Process kaizen focusing on individual processes (kaizen for work teams and team leaders).Lean Lexicon . There are two levels of kaizen (Rother and Shook 1999. 2.www. .ncsu.ies. System or flow kaizen focusing on the overall value stream (kaizen for management).edu/lean Standardization Kaizen Continuous improvement of an entire value stream or an individual process to create more value with less waste.8): 1.

ies.www.ncsu.Standardization •Standardized Work •Heijunka/Leveling •Paced Withdrawal •Supermarket •Kaizen .edu/lean Developing a Lean Factory Summary .

lowest cost. shortest lead times Just-In-Time •continuous flow •takt time/pace •pull system •triggers Involvement Jidoka •separate man & machine work •identify abnormal conditions •poka yoke Heijunka Standardized Work Kaizen Stable Manufacturing Process .ncsu.ies.edu/lean Lean Production System Goals .www.highest quality.

www.ies.ncsu. team-based problem solving. etc. . not inspection •Use of participatory decision making –Quality Control Circles. suggestion systems. •Cross trained and multi-skilled employees –who can work many operations within a cell and even operations in different cells •Continuous improvement philosophy •Process quality.edu/lean Involvement Workplace Practices •Teams –with rotation of highly specified jobs.

edu/lean Keys To Success  Focus on the goal.ies.ncsu.www.eliminate waste!  Gather baseline information and measure results   Get everyone involved Keep it simple .

www. Mike Rother. Kent Bowen. John Shook. Inc. 1998. September-October 1999. “Decoding the DNA of the Toyota Production System” by Stephen Spear and H. Harvard Business Review.ies. The Lean Enterprise Institute.ncsu. 96-106 . pp.edu/lean Reference Materials • Lean Thinking by Jim Womack and Daniel Jones • Lean Production Simplified by Pascal Dennis • • Learning to See.

www.ies.ncsu.ncsu.edu/lean .ies.edu/lean Lean Enterprise Advancement Program (LEAP) www.