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History of Lean
Manufacturing
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History of Lean
It started in Japan at the Toyota Motor Company

In 1902 Sakichi Toyoda, founder of the Toyota group, invented an
automated loom that stopped anytime a thread broke. As a result,
quality defects significantly decreased and one operator was able to
monitor several machines at one time.

Several decades later Taiichi Ohno, a production engineer at the
Toyota Motor Company applied the same concept as he sought to
eliminate waste, or non-value added activities, within the Toyota
organization. In addition to stopping production at every defect
(Jidoka), he employed another key concept, JIT (just in time).
Together, Jidoka and JIT are the pillars of the Toyota Production
System, supported by a foundation of Heijunka (level loading) …
the basis of Lean.
Leveraging from Toyota
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THE HOUSE OF TOYOTA
The house of Toyota is built on three main principles, the two pillars,
JIT (Just in Time) and Jidoka, and the foundation of Heijunka.
These concepts will be briefly explained in this overview and gone
over in more detail in the sections that follow.
e
(GE Production System)
To Make Products the Right
Way
JIT Jidoka
Heijunka
e
(GE Production System)
To Make Products the Right
Way
JIT Jidoka
Heijunka
TPS
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Stop @
Abnormality
Takt Time
Production
Single
Piece Flow
Pull
Production
Autonomation
Sequencing Leveling
THE HOUSE OF TOYOTA
e
(GE Production System)
To Make Products the Right
Way
JIT Jidoka
Heijunka
e
(GE Production System)
To Make Products the Right
Way
JIT Jidoka
Heijunka
TPS
(Toyota Production System)
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There are two main elements of Heijunka
1. Leveling: Overall leveling in the production schedule of the variety and volume of
items produced in a given time period.
2. Sequencing: The order in which the parts on the line or in the cell are processed.
What is Heijunka?
Heijunka is the process of level loading
and sequencing the timing of production.

JIT
Heijunka
JIT
Heijunka
Jidoka JIT
Heijunka
JIT
Heijunka
Jidoka
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There are three main elements of JIT
1. TAKT Time Available production time / required production (forecast & actual demand)
e.g. 1 shift = 1980 min/wk, forecast = 198 units/wk
TAKT Time = 1980 min/wk / 198 units/wk = 10 min/unit
2. Single Piece Flow


3. Pull
A system of manufacturing in which each process withdraws the parts it needs from the preceding process
when they need them, in the exact standardized amount needed.
What is JIT?
JIT (Just in time) is a theory of production
characterized by producing according to TAKT
time
(1)
, single piece flow
(2)
, and pulling
(3)
of
material from upstream process while keeping
inventory at minimum, established levels.
JIT
Heijunka
JIT
Heijunka
Jidoka JIT
Heijunka
JIT
Heijunka
Jidoka
Single piece or one piece flow is a means to primarily build Quality into the process. This is achieved by establishing a takt
Time, developing std work, and swip. The premise is that an Operator can only work on one piece at a time, and performs a
Quick quality check on the CTQs of the process before moving The part to the following process. If a defect is detected,
Jidoka is enacted…the line is stopped, and immediate action is taken To remediate the situation and take countermeasures
to prevent
reoccurence
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There are two main elements of Jidoka
1. Stop at Every Abnormality
2. Autonomation … Human intellegence
built into machines or systems
What is Jidoka?
Machines that have “human intelligence” built into
them, giving them the ability to shut down
automatically in the case of an abnormality to stop
defective products from flowing into the next
process. Jidoka measures are incorporated in the
assembly process by use of Andons and Pin-Pan-
Pon; stopping when abnormality is detected.

JIT
Heijunka
JIT
Heijunka
Jidoka
JIT
Heijunka
JIT
Heijunka
JIT
Heijunka
JIT
Heijunka
Jidoka
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• Lean production focuses on eliminating waste in processes (i.e. the waste
of work in progress and finished good inventories)

• Lean production is about expanding capacity by reducing costs and
shortening cycle times between order and ship date

• Lean is about understanding what is important to the customer

• Lean production is not about eliminating people
What is Lean?
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Defining Value
• Value Added Activity
• Any activity that changes the form, fit, or function of materials or
information to meet customer requirements
— OR —
• Something customers are willing to pay for

• Non-Value-Added Activity
• All other actions and unwanted features are by definition — WASTE
adding no value to the customer — simply raise costs in our business
Time
Value Added Work
After
Before
Non-Value Added Work
Tim
e
Eliminate Non-Value-Added Activity
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Understanding and
Eliminating Waste
“Begin by learning the FUNDAMENTALS. If you learn the wrong ideas
about fundamental matters, you are likely to continue to make mistakes
later, no matter how enthusiastic you are about implementing
improvements.”

 The Seven Types of Waste…
• Defective Parts
• Overproduction
• Inventory
• Motion
• Processing Transactions
• Transportation
• Waiting

Waste Exists In Every Process…Eliminate It
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1. Defects
• Creating and correcting defects robs resources, “chokes” flow, and
must be minimized or eliminated.

• Examples:
• Wrong parts from supplier
• Rework
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2. Over-Production
• Consumes valuable resources not immediately needed.
• Hides other process problems (bad quality, poor scheduling, poor
delivery).
• Builds inventory not needed.
• Examples:
• Assembling parts ahead of schedule while
delinquent parts wait
• Working on the wrong parts at the wrong time
• Making more parts than your customer needs

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3. Excess Inventory
 Ties up capital.

 Requires moving.

 Difficulty in finding material.

 Reduces customer responsiveness.

 Examples:

• Inventory on shelves, racks, and
floors
• Long queues in service operations
• High levels of safety stock
• Large deposits of material at each
operation
• Large delivery quantities instead of
frequent deliveries (in or out)

 Takes valuable space.

 Obsolescence.

 Losses due to damage.

 Multiplies quality problems.
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4. Unnecessary Motion
• Ergonomic concerns
• Labor efficiency
• Safety
• Wasted cycle time
climbing
sitting
???
searching
turning
around
walking
choosing
bending
over
lying down climbing climbing climbing
sitting sitting sitting
???
searching
???
searching
???
searching
turning
around
turning
around
turning
around
walking walking walking
choosing choosing choosing
bending
over
bending
over
bending
over
lying down lying down lying down
Before After
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5. Excessive Processing
• Consumes valuable resources.

• Creates delay.
• Opportunity for more defects.

• Examples:
• Unnecessary approvals
• Processing beyond specification limits
or customer requirements
• Unnecessary record retention
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6. Transportation and Conveyance
• Consumes valuable resource.
• Takes time.
• Safety concerns.
• Capital expenditures.
• Increases damage.

• Examples:
• Using crane to move material
• Using forklift truck to move material
• Moving material/tools to point of use
• Mailing of documents
• Unnecessary personnel travel
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7. Waiting
• Adds to cycle.
• Consumes valuable resources.
• Increases work in process.
• Slows response to customer.


• Examples:
• Waiting for shared equipment
• Operations not balanced, waiting for previous operation
• Idle time due to lack of “standard” operations
• Waiting for decisions (dispositions, inspection , materials…)
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Sorting Waste
Quick Reference Guide
Waste Lean Tool
Man
 Motion
 Walking
 Waiting
 Searching
 Standard Work
 5 S’s
 3P
Material

 Inventory  Pull System
When?
Where?
Why?
Machine

 Motion
 Setup/Change over
 Breakdown
 3P
 Setup Reduction
 TPM
Method

 Batch production
 Transportation
 Flow Production
 One Piece Flow


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NON-VALUE - ADDED OPERATIONS
… examples
- Deburring
- Cleaning
- Inspection
- Unnecessary approvals
Reduce Non-Value Added Operations Without
Incurring Unreasonable Costs
Eliminate the Waste,
It is Non-Value Added
• ASK YOURSELF — Is this operation something that the customer is
willing to pay for?

• BETTER YET — Does this operation change the Form, Fit, or Function
of the part?

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Summary Page
• Lean has defined elements to work
towards Elimination of waste in a process
• Lean is eliminating waste
• Waste is defined as Non-value activities
• Non-value activities are those which the
customer would not care about
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Elevating Lean…on Par with 6 Sigma
Lean

Drives Cycle Time Reduction
Leveraging Proven Solutions


…..Maximizes
Responsiveness With the
Least Inventory/Resources
6 Sigma

Drives Defect Reduction
Leveraging Analytical
Techniques

• DMAIC
• DFSS

….For Complex Problems with
Unclear Root Causes or
Design Variables
Complementary Efforts…In-Process
Defects Often Constrain Cycle Time
Reduction Efforts
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Typical Lean Solutions
Product Flow
• Component Cell Lines and Moving
Assembly Lines
• Kitting
• Supermarkets
• Pull Systems
• Standard Work
• Multi-skilled Labor
• Visual Management
• Right Sized Single Purpose
Machines
• Andon
Knowledge Flow
• Digitized Standardized Workflow

• Configurable Reusable Solutions
• Single Version of Truth
• Real Time Processing (vs. Batch)
• Standard Work
• Digitized Wizards
• Digital Cockpits
• Point-of-use Digital Tools
• Exception Alerts
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Benefits from
Lean
• All Metrics are Improved by “Leaning” Operations

• Environmental conditions improve with Lean

• Working Smarter not Harder is the Outcome

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Reduce Floor Space
Benefits from Lean
Freed Floor Space Freed Floor Space
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Benefits from Lean
Improved Ergonomics
sitting
climbing
lying down
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Benefits from Lean
Increase Velocity
Increase
Capacity
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Benefits from Lean
Improved Productivity
1 2 3 4 5 6
1 2 3
4 5 6
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737 Moving Line

Lean Success
•$500 MM Inv Reduction
•41% Cycle Reduction
•19 % Labor Productivity
•170K sq ft Space Reduction
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Lean Reference Material