Introduction to Lean Manufacturing: An Executive Overview

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Introduction & History

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Henry Ford designed the original mass production system.
Devised Non-Craft Method of Production to Meet Market’s Needs

• In the 1920’s, the Rouge Complex in Dearborn became the benchmark for best-inthe-world manufacturing techniques. • These included just-in-time delivery and manufacturing. • It was replicated in England and Germany, and later taken as the model for Toyota City in Japan.
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Greatness of Henry Ford
Broke craft tradition by devising a production method to fill the needs of early 1900’s society.
American Mass Market

MASS PRODUCTION
Goal: “Economies of Scale”
Precision Machine Tools Division of Labor

Fantastic Success!

- Limited Product Variety

- Flow Production

Weaving Looms

Toyota Motor Corporation
1935

Poor Vehicles Little Success
WWII

1900

1915

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Ford’s original manufacturing philosophy (1926)
• Eliminate Waste

“The point is the saving of human labor so that it may be made more effective and more valuable.”

• Use Continuous Flow Manufacturing

Synchronization of main & subassembly lines – “Inventory Float” to serve outlying factories

• Practice Quality at the Source

Zero-defect production – Eliminating need for end-of-line quality checks

• Standardize & Continuously Improve
“We take it as our duty to use the public’s money to the advantage of the public by pressing always for a better and cheaper product.” – Standards are necessary, but “Standardization means nothing unless it means standardizing upwards.”

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Complex Vehicles & Diverse Customers
Mass Production spreads and tries to adapt to changes. Lean Manufacturing emerges as the alternative.

Increasingly Complex Vehicles and Diverse Market Postwar Boom (Mass ideas cemented in) Emphasis on Finance and Accounting
• Small Market • Few Resources • Need Cash • Lousy Quality

Large-Lot Production
Automation
Goals: Quality, Cost, Lead Time, Flexibility

U.S. Consumers look for smaller cars. Big 3 Market share decline begins.

1st Oil Shock

“Catch up with U.S.A!”
U.S. Quality & Productivity Seminars 1945

TOYOTA PRODUCTION SYSTEM
Supermarket System

Japanese industry, recognizes TPS & dissemination begins.

Fantastic Success!

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1973

1980

Lean Principles

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Lean Principles • People are involved and empowered. • Elimination of waste

Just-In-Time Production – In-Station Quality – Standardized Work & Continuous Improvement

The Customer

Defines value – Establishes the requirements (pull)
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Total Cost drives performance.

Mass Production - large lots, pushed ahead, an ”island” mentality
Material

GOAL: Maximize Economies of Scale
Receiving Warehouse

Storage

Weld
Shipping Warehouse

Storage

Stamping

Repair

Assemble
Ship

Order
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Actual Value-Added Time: Minutes Total Time in Plant: Weeks

Cash

Lean Manufacturing
Goal: Eliminate Waste

Material
Pu ll

“Next Process is the Customer”
Production Cards

Assemble

Pull Stamp Store

Pull Weld

Pull
Material

Pull

Stage & Ship

To fill customer order

Order

Time Line

Cash

“Reduce the time line by removing non-value added wastes.”
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JIT: Pull System
• Following processes withdraw what they need when they need it. • Preceding processes replenish what is taken away.
Production Cards

Withdrawal Cards
a b c d e f g h i j k l

Upstream Process

Pull

New Product

Downstream Process

Needed Product

Store
Wherever Continuous Flow is not possible.
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JIT: very frequent changeovers in feeder processes
Left Hand
changeover
changeover

Left Hand

changeover

Right Hand Left Hand

Right Hand
changeover

changeover

8 hrs

Right Hand
changeover

Left Hand
changeover

changeover

Left Hand

Right Hand
changeover

Right Hand
changeover

Left Hand
changeover

Right Hand

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Change over frequently, even with infrequent shipments • Risk of unsold goods • Quality/Cost/Space • Smooth demand on upstream suppliers • Approaches the lean ideal of one-piece flow

In-Station Quality

If you are using JIT production, what happens if there is a quality or machine problem?
B. Notify
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S T O P A L E R T

ANDON BOARD

2

C. Respond Immediately Contain / Fix Problem
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S T O P

A L E R T

TROUBLE

DEFECT BREAKDOWN CHANGE

Human

A.
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Never conceal or pass on a defect.

Find & Eliminate Causes

Machine

A.

Stop for abnormalities

Why In-Station Quality?
COST & IMPACT

HIGH

LOW
Own Process Next Process End of Line Final Inspection

ABILITY TO FIND & ELIMINATE CAUSES
Customer

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Abnormality Found At

The role of a Quality Control

•Develop a quality control plan. •Determine and monitor all inspection standards. •Establish and control boundary samples. •Control checking fixtures and calibration standards. •Manage the introduction of new parts, tooling (sample parts). •Control the revision and distribution of supplier parts. •Control change on the floor (monitor in-station quality trends). •Establish a system for Quality Problem Reporting (QPR). •Develop a reaction plan for quality issues. •Encourage problem solving/root cause analysis. •Provide data on warranty and customer issues.
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Standardized Work & Continuous Improvement of Processes
Examples: • Install flange onto part • Cycle Machine

Categories of Work Motion
Value Added
MOTION Work

Example: • Walking to get parts • Waiting time

Waste

Examples: • Pull down impact wrench • Unclamp and clamp
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Incidental Work

Standardized Work
Department/Section

Welding 05 rear panel robot OP-140

Date: 4-10-96 Worksheet # Opr

Standardized Work Sheet
Target Time Cycle Time

Process Part Name Part # Step #

05-140
Sup Maint Eng Safety

53 sec. 43 sec.

rear panel
3302246
Work Steps
Pick up bar Set bar and rear panel in welder Hold rear panel and reinforcement Place rear panel in robot welder Hold bracket Place bracket in robot welder Make (4) additional spot welds on rear panel Set rear panel in punch press and start press

WGL

Work Sequence Layout

Time Elements Manual Auto Walk

1

3 2
Spot Welder

5 7 4 6

Robotic Welder

2 3 4 5 6 7 8

2 8 2 1 3 12 2 2

0 12 0 0 0 21 8 11

1 3 1 1 1 1 2 1

watch for burrs on edges

Possible Hazards

Recommended Safe Job Procedures
welding glasses required

IN-PROCESS STOCK SAFETY/ ERGO DELTA CRITICAL QUALITY CHECK QUICK CHANGE OVER VISUAL FACTORY

welding glasses required welding glasses required

1

8
Punch Press

Q C

Total Prod. Maint. ZERO DEFECTS OTHER

Totals

32

52

11

welding

steel toe

kevlar

welding jacket

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Standardized Work and Continuous Improvement of Processes
Target Time (1 min.) 1 min.

Cycle Time
A
1 min.

B

C D Operators

E
Target Time (1 min.)

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A

B

C D Operators

E

Lean Shop-floor Organization Structure
GL GL

First Salary Level

Team & Team Leader

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The role of the Lean Supervisor: Safety

5-S: Develop and maintain a 5-S plan for the group, including audits. Evaluate condition daily. Heighten awareness and lead by example. Ergonomics: Observe and improve movement techniques to minimize ergonomic burden. Encourage team participation in elimination of ergonomic concerns. Accidents/near miss cases: Report all accidents and near misses. Work with operators and staff to develop countermeasures that will insure re-occurrence prevention.

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The role of the Lean Supervisor: Quality

• Standardized Work: Observe processes regularly to insure adherence to standardized work. After any continuous improvement activity, insure documentation is updated. • Defects & scrap: Heighten awareness in looking for defects from current and previous processes. Conform to response and follow-up procedures for improvement and feedback. • Training: Insure all training is carried out completely using safe and approved methods. Document training progress and encourage multi-functional job training.
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The role of the Lean Supervisor: Production

• Build to the Schedule: Insure daily requirements are met without the introduction of “over production”. Monitor production by the hour, and react in a timely manner. • Support and encourage continuous improvement: Always look for ways to remove waste from the process with the help of the operators. • Monitor the Inventory System: Control work in process and insure the workgroup is operating within established min & max levels on the line. Report and react to abnormalities as they occur.
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The role of the Lean Supervisor: Cost

• Identify and eliminate scrap and waste: Work towards continuous improvement in all facets of the surrounding environment. Document improvements and capture best practices to insure standardization. • Monitor the use of Operating Supplies: Control the use of indirect material; use a budget/checkbook system where possible to prevent “free spending” on non value added items. Encourage the teams to control these items.

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The role of the Lean Supervisor: Problem Resolution

• Use root cause analysis to address problems: Use the “five why’s” to identify root cause and develop permanent solutions. Avoid the “five who’s”. Foster a “problems are good” environment. • Serve as advisor and resource for workgroup improvement focused activities: Provide the setting for continuous improvement and problem solving activities, without directing the efforts. Support the group by providing the necessary resources to implement a problem solving environment.
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Additional roles for the Lean Supervisor
• Monitor arrival and departure times: Greet and send-off operators each day. Observe behavior trends. • Adjust for manpower abnormalities: Visually confirm attendance and adjust as required based on current skill level. • Conduct pre-shift checks: Check area for safety, proper set-up for the day, tools, supplies, 5-S, ect. Complete any audit sheets. • Communicate: Read logbooks, leave info for the next shift, communicate current situation to the workgroup, conduct meetings as required. • Complete the day: verify paperwork is complete, 5-S is acceptable, make notes for tomorrow and reflect on the days happenings.
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Model for Lean Manufacturing

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What we need

Reliable equipment  Just in time production  In-station quality control  Empowered people

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What is meant by Lean Manufacturing?

Today, there are many terms being spoken within the industry: • Kanban • Pull Systems • Batch-of-One Production • Andon • Total Productive Maintenance (TPM) • Kaizen • Worker Empowerment
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Defining Lean Manufacturing Many people refer to the Toyota Production System when discussing Lean Manufacturing.
For our discussion, we will define lean manufacturing as “the process of identifying and eliminating waste within our operations including manufacturing, engineering and administration.”

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The evolution of the manufacturing system. The process of manufacturing and supplying products has evolved from simple craft production to a fast-paced, global-oriented arena.
Evolution

Craft

Mass

Lean

Time and Resources force transition

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Less individual control; Responsibilities distributed over many people.

Customer demand is the universal driver in change.
Conditions that were satisfactory yesterday are not acceptable today. Tomorrow’s demands will be even greater.
Customer Order
Time

Waste

Product Shipment

X

Customer Order
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Product Shipment
WASTE

X

Time (shorter)

Lean Manufacturing helps to shorten the timeline between the customer order and the product shipment.

Why make the change to Lean Manufacturing? Lean Manufacturing implementation has been shown to aid companies in the following areas: •Improves productivity
•People stop wasting effort on non-value added tasks
•Predictable and stabile environment

•Increases Quality Assurance
•Tools designed to eliminate defects, not detect them

•Increases Flexibility
•Quicker response to changes in customer orders
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•Reduces Costs

Look who’s making the change.

Many industry-leading companies have determined that they must change their business practices to maintain their markets….

• • • • •
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Ford Motor Company Chrysler Corporation General Motors US Military Sara Lee

• Nestle • Tyson’s Foods • Many other in all industries

So, what is Lean Manufacturing?
• Remember our definition: • “The process of identifying and eliminating waste within our operations including manufacturing, engineering and administration.” • For this conversation, we will limit our scope to the manufacturing/ remanufacturing operation.
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The reality of profit in our market environment

• Price = costs + profit • Price is fixed by the customer • Cost reduction is the only way to make profit

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How do you deliver value as an organization?

• Eliminate non value-added elements of work. • Create the flow of value at the pull of the customer. • Focus on eliminating waste.
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How should we define “waste”?

Waste (wast)n. - anything that takes time, resources or space but does not add to the value of the product or service delivered to the customer.

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While products differ, the typical wastes found in each factory are similar:

• • • • • • •
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Correction Conveyance Motion Over-production Over-processing Waiting Inventory

WASTE

Waste - Process Defects
• When defects occur at one station, operators at subsequent stations waste time waiting, thereby adding cost to the product and adding production lead time. • Furthermore, rework may be required or the defective products are scrapped. • If a defect occurs in assembly, additional labor is required to disassemble and additional parts are required to reassemble.
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Waste - Waiting
People and/or Machines waiting on Product
Time 0 Processing Time = 1 minute / unit A B C D

3

A

B

C

D

6

A

B

C

D

9
12
40

A

B

C

D

A

B

C

D

Waste - Waiting (continued)
Time 0 A

Processing Time = 1 minute / unit B C D

1

A

B

C

D

2

A

B

C

D

3

A

B

C

D

7
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A

B

C

D

Waste - Conveyance
Example: Raw material being stored away from the place of use. Result: We must inform tracking personnel where to pick up material. We will need additional storage location other than point of use. We need additional material movement personnel and equipment. Processing Waste: Performing operations that are not required to manufacture or assemble the product to the customers’ quality expectations.

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Waste - Motion
• Whatever time not spent in adding value to the product should be eliminated as much as possible. • Movement does not necessarily indicate valueadded work. Categories of Work
•Value Added - something the customer will pay for •Incidental - something which has to be done •Waste - provides no value or service

Motion

“Eliminate Waste: Reduce Incidental Work”
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Waste - Over-production

Created by producing goods above the amount required by the market. • extra defects
• extra handling • extra space

OverProduction

• extra machining • extra paperwork

• extra people
• extra overhead
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Waste - Excess Inventory
• As shown with over-production, excess inventory requires extra cost to handle and maintain. • Excess inventory also covers problems in the operation….

Sea of Inventory
Poor Scheduling
Machine

Quality

Line

Problems

Imbalance
Vendor Long SetUp Time

Lack of HouseKeeping Commun-

Breakdown
Long

ication

Delivery

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Transportation

Problem Absenteeism

Lessons Learned

• • • • • •

Map the value stream just like manufacturing. Make the process very visible. Focus on the non value-added tasks. Use standardized work to organize tasks. Look for rework loops and delays for decisions. Lean principles apply to administration and engineering, as well as process and repair.

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Lean Tools

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Many companies utilize the Five Phase Approach.
Stability
Brings process variables under control Provides an environment to eliminate waste Shows quick business impact Reduces WIP inventory, time loss and defects Increases process flexibility Creates repeatability between workstations Synchronizes operations with customer requirements (takt time) Creates disciplined process repeatability Creates an environment where material replenishment links operation with customer demand. Reduces response times or changes in demand Reduces upstream schedule variability

Continuous Flow Synchronous Production Pull System Level Production
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LEAN Five Phase Approach , Continued
As for LEAN IMPLEMENTATION Approach it is worthwhile to say that:
LEAN IMPLEMENTATION IS A JOURNEY NOT A DESTINATION During the Journey you need TOOLS, Generally some Tools suite certain Phases better than Others

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Summary

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Summary

• The challenge for today’s manufacturers is great. Many companies are struggling to regain a competitive edge in manufacturing. • Lean Manufacturing offers many organizations a proven methodology to help reduce waste in their operations. • However, unless you are committed to making such a significant change, Lean Manufacturing may cause you more headaches than you wish to handle.

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Questions and Discussion

• What are your impressions?

THANK YOU