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Tools for Continuous

Improvement and LEAN
Manufacturing

An Introduction to the Principles of
Lean Manufacturing
25/06/15

Agenda

• Review brief history of manufacturing systems
• Distinguish between mass, craft and lean manufacturing
• Introduce key Concepts of
Lean Manufacturing
• Review the kinds of changes needed to be considered a
lean manufacturer.

Readings

• Chapter 18 of Computer Aided Manufacturing II, Wang, H.P., Chang,
T.C. and Wysk, R. A., Edition (2007 expected)
http://www.engr.psu.edu/cim/ie450/ie450ho1.pdf
• “Building the Lean Machine,” Advanced Manufacturing, January 2000.
http://www.engr.psu.edu/cim/ie450/buildingthelean.pdf

Objectives

• To identify waste elements in a system
• To apply value stream analysis to a complex
engineering/manufacturing system
• To implement 3 M’s in a complex engineering
environment
• To be able to identify and implement the 5Ss of lean

• Built by craftsmen with pride • Components hand-crafted. hand-fitted • Excellent quality • Very expensive • Few produced .Craft Manufacturing • Late 1800’s • Car built on blocks in the barn as workers walked around the car.

Henry Ford 1920s • Low skilled labor.identical . no pride in work • Interchangeable parts • Lower quality • Affordably priced for the average family • Billions produced . simplistic jobs.Mass Manufacturing • Assembly line .

.Lean Manufacturing • Cells or flexible assembly lines • Broader jobs. highly skilled workers. even more variety • Excellent quality mandatory • Costs being decreased through process improvements. proud of product • Interchangeable parts. • Global markets and competition.

respond to the following question (3-5 minutes) What are the most prevalent forms of waste in a job that you’ve had or in a process (or activity) that you are very familiar with? For the assignment that you are doing. would you expect all process plans to be the same? How different? .Exercise Individually.

Jones.Definition of “Lean” • Half the hours of human effort in the factory • Half the defects in the finished product • One-third the hours of engineering effort • Half the factory space for the same output • A tenth or less of in-process inventories Source: The Machine that Changed the World Womack. Roos 1990 .

religion or food. • Martial arts. • Within the business environment. . – Improvement tools (kaizen tools) – Production philosophies such as Just-in-time. • Just-in-time philosophy is also known as Lean Manufacturing.Presentation • Asian culture has had a significant impact on the rest of the world. – Many words used in our daily languages.

.Presentation • Another important philosophy is the concept developed by a Japanese consultant named Kobayashi. – In addition. the production core elements will be presented in order to focus on improvement actions. • Finally. a resource rate to measure improvement results is also explained. – Based on a methodology of 20 keys leading business on a course of continuous improvement (kaizen).

Introduction • Continuous improvement is a management philosophy based on employees’ suggestions. • When they combined these two ideas. kaizen was born. . – Japan was already utilizing tools such as quality circles. the most important improvements took place when this idea or philosophy arrived in Japan. – It was developed in the United States at the end of the 19th century. • Nevertheless.

is the necessary foundation on which tomorrow’s improvement will be based. Standardization means nothing unless it means standardizing upward. If you think of “standardization” as the best that you know today.Introduction • In 1926 Henry Ford wrote – “To standardize a method is to choose out of the many methods the best one. But if you think of standards as confining. then progress stops. but which is to be improved tomorrow . and use it.” .you get somewhere. instead of being a barricade against improvement. Today’s standardization.

Final situation productivity Kaizen Reengineering Initial situation time .Kaizen vs Reengineering • Creating an useable and meaningful standard is key to the success of any enterprise. – Those that suppose smaller benefits with less investment. • Businesses usually utilize two different kinds of improvements. – Those that suppose a revolution in the way of working.

• In the U.. – Require large investments and are based on process automation. these radical activities are frequently called “kaizen blitzes”. – Carried out by the utilization of process reengineering or a major product redesign.Kaizen vs Reengineering • The evolution consists of continuous improvements being made in both the product and process.S. • A rapid and radical change (kaikaku) process is sometimes used as a precursor to kaizen activities. .

the innovation effort required to make a major change can be reduced (discontinuous line in the left). – Otherwise. the process of reengineering can become very expensive (discontinuous line in the right). Final situation productivity Kaizen Reengineering Initial situation time .Kaizen vs Reengineering • If the process is constantly being improved (continuous line).

Improvement philosophies and methodologies • In order to find the source of a problem. • Problem -> Any deviation with respect to the standard value of a variable (quality and production rate). – It is necessary to know what the variable objective is (desired standard) and what is the starting situation in order to propose a realistic objective. it is important to define and understand the source and core of the problem. .

Improvement philosophies and methodologies • Three main factors that production managers fear. – Poor quality. – Increase of production cost. . – Increase in the lead time. • Production improvements should be based on the improvements of processes as well as operations. – Problems can appear in any of the basic elements that constitute the production area.

several improvement approaches can be identified. poorly coached workers. – Defects. obsolete work methods. • By analyzing the production management history.Improvement philosophies and methodologies • Some example of problems. • The keys to the Japanese success are. low rates of performance in machines and materials. – Simple improvement methodologies. – Workers respect. . – Just-in-time Methodologies (Lean Manufacturing). energy waste. – 20 Keys to Workplace Improvement (Kobayashi). – Teamwork.

not tomorrow. • Product obsolescence can make in-process and finished goods inventory worthless. fulfilling the customer requirements – “I need it today. – It is critical that inventory is minimized.Just-in-Time. not yesterday. and is never fully obtained.” • The plant flexibility required to respond to this kind of demand is total. nothing is manufactured until it is demanded. . Introduction • In accordance with this philosophy principle.

Introduction • In 1949 Toyota was on the brink of bankruptcy. presented a challenge to the members of his executive team. Kiichiro Toyoda.Just-in-Time. “invented” the Just-in-time method.” • Taiichi Ohno. – “To achieve the same rate of production as the United States in three years. – Inspired by the way that an American supermarket works. . accepted his challenge. • With the aid of Shigeo Shingo and Hiroyuki Hirano. vice president of Toyota. • The president of Toyota. – While in the United States Ford’s car production was at least 8 times more efficient than Toyota’s.

The 5S . in the right place just before it is needed”.Just-in-Time. Visual Control Deliver the right material. with perfect quality. Poka-Yoke Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization • They developed different methodologies. Introduction Thinking revolution • Ohno and Shingo wrote their goal. in the exact quantity.

Just-in-Time. • The philosophy developed in Toyota was not accepted until the end of the sixties. Japan has been the pioneer of work improvement methodologies. Introduction Thinking revolution • The systematic application of all the methodologies create a new management philosophy. The 5S Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization Visual Control Poka-Yoke – The real value is the knowledge acquired during its implementation. – Japan in 1973 benefited from the petroleum crisis and started to export fuel efficient cars to the United States. – Since the 1970s. .

mainly Toyota. – Price = Cost + Profit. this formula is used worldwide. . Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization Visual Control Poka-Yoke • In order to make sure that Toyota would work like the supermarket it was necessary to identify and eliminate all business and production wastes. Thinking Revolution • The Western world employed the following formula to obtain the price of a product.JIT. – In Japan. Thinking revolution The 5S – Today. • Profit = Price – Cost. employed the following expression.

manufacturers. let the seed (cost) grow as big as a tree. • Managers try to decrease the cost by cutting some leaves out. . • Reducing the tree to a smaller size is equivalent to planting a smaller seed.JIT.” Thinking revolution The 5S Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization Visual Control Poka-Yoke – In some cases. it is more efficient to eliminate tasks that do not add value to the product. • The goal of Toyota’s executives was to find this plum tree seed and work hard to reduce the cost. Thinking Revolution • The real cost is “as big as a seed of a plum tree. – In reality.

. • Shigeo Shingo identified 7 main wastes common to factories. Thinking revolution • He also defined work as “any task that adds value to the product”.JIT. they required between 5 to 10 times more operations to produce the same car. The 5S Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization Visual Control Poka-Yoke – In Toyota’s factories outside of Japan.” – Few operations are safe from elimination. Seven types of Waste • Hiroyuki Hirano defined waste as “everything that is not absolutely essential.

when they are not needed and in a greater quantities than required. . • Defects. – Material handling between internal sections.JIT. The 5S Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization Visual Control Poka-Yoke • Transportation. – Material stored as raw material. – Irregular products that interfere with productivity stopping the flow of high quality products. Thinking revolution • Inventory. Seven types of Waste • Overproduction – Producing unnecessary products. work-inprocess and final products.

JIT. – Tasks accepted as necessary. Seven types of Waste • Processes. The 5S Standard operations Jidoka TPM One-Piece flow Multifunctional workers Kanban Leveling Production SMED JUST IN TIME Workforce optimization Visual Control Poka-Yoke Inventory is considered the type of waste with greater impact . – Not all operations add value to the product. • Operations. Thinking revolution • Inactivities. – Correspond to machines idle time or operator’s idle time.

JIT. get stored. in order to cope with the problem of poor process quality. – For example. Inventory • Inventory is a sign of an ill factory because it hides the problems instead of resolving them. the size of production lots is typically increased. • Products that will probably never be used. .

Inventory • If the problem that produces the low quality is solved inventory could be reduced without affecting service. – Then. the work method can be changed.JIT. . • Sometimes it is necessary to force a decrease in inventory in order to identify the production variability that necessitated it.

– The Japanesse systematized the development and evolution of improvement tools. MUDA means waste. • Lean Manufacturing is one way to define Toyota’s production system.Lean Manufacturing • Lean Manufacturing is the systematic elimination of waste. • Many of the tools used in lean can be traced back to Taylor. • Lean has also been successfully applied to administrative and engineering activities as well. . In Japanese. Ford and the Gilbreths. – Lean is focused at cutting “fat” from production activities. – MUDA is the term chosen when referring to lean.

• Toyota expands the meaning of Jidoka to include the responsibility of all workers to function similarly. • Machinery automatically inspects each item after producing it. ceasing production and notifying humans if a defect is detected. . – Just-in-time – Kaizen (continuous improvements) – Jidoka.Lean Manufacturing • Lean Manufacturing is supported by three philosophies. • Translates as autonomation.

Lean Manufacturing • Traditional approximations improves the lead time by reducing waste in the activities that add value (AV). • Lean Manufacturing reduces the lead time by eliminating operations that do not add value to the product (MUDA). 95% MUDA 5% VA Lead Time 98% MUDA Lead Time 95% MUDA 5% VA Lead Time 2% VA 90% MUDA 10% VA Lead Time .

15 3 – Shows the relations between the keys and their influence on the three main factors. • Quality. published a book explaining 20 keys to Workplace improvement. .20 Keys to workplace improvement 1 7 20 16 14 5 6 4 17 18 2 9 11 12 – They all must be considered in order to achieve continuous improvement. 8 19 10 13 • Iwao Kobayashi. • These 20 keys are arranged in a circle. cost and lead time. in 1988.

16 Production Scheduling 8 Coupled Manufacturing 15 Cross Training 19 Conserving Energy and Materials 10 Time Control And Commitment 13 Eliminating Waste 3 Improvement Team Activities – Keys 1. . – Key number 20 is the result of implementing the other 19 keys.20 Keys to workplace improvement 1 Cleaning and Organizing 9 Maintaining Equipment 11 Quaility Assurance System 20 Leading Technology 12 Developing your Suppliers 7 Zero Monitor Manufacturing 14 Empowering Workers to Make improvements 5 Quick Changeover Technology Quality 4 Reducing Inventory 6 Method Improvement Cost Lead time 17 Efficiency Control 18 Using Information systems 2 Rationalizing the system • There are four keys outside the circle. 2 and 3 must be implemented before the rest.

. – Kobayashi offers the steps to reach the final level gradually rather than attempting to directly reach the top.20 Keys to workplace improvement • Kobayashi divided each key into five levels and set some criteria to rise from one level to the next.

the factory’s scoring will grow concentrically. 5 16 6 15 7 14 8 13 9 12 10 11 • Kobayashi recommends to improve all the keys equally.20 Keys to workplace improvement 1 20 • Kobayashi presents a radar graphic to show the evolution of the factory 2 19 3 18 4 17 – The scoring of each key is represented. . – In the radar graphic.

• The rest of the time is considered load time. operators break.Overall Equipment Efficiency • To improve the productivity of production equipment Nakajima summarized the main time losses for equipment based on the value of three activities. Load time Calendar time Planned stops . • Available work time -> Calendar time. – Fixed time for planned stops -> Preventive maintenance.

• Caused by the wear of components. – Breakdowns. • Loss time caused by the processes´ randomness or by the workermachine cycle complexity. • Low quality products. – Setup and changeovers. – Starting losses. . – Reduced speed. or between products of the same model. • The time that the machine is stopped by repairs. – Idling and minor stoppage. – Defects and reworks.Overall Equipment Efficiency • Six main causes that reduce valid operation time. • Machine produces defects until it reaches the operation steady state. • Corresponds to the change time between models.

Overall Equipment Efficiency • These six main losses are grouped. Load time Operating time Useful time Defects and rework Starting losses Idling and minor stoppages Reduced speed Breakdowns Setup and changeover .

Overall Equipment Efficiency • The previous grouped losses define three basic indicator. – Overall Equipment Efficiency (OEE) = A · P · Q Load time Operating time Overall Equipment  A P Q Effeciency (OEE) Useful time Q  Quality  processed units  defective units  100 processed units P  Performanc e  stardard cycle time  processed units  100 operating time A  Availabili ty  load time  breakdown and setup time  100 load time . performance and quality. – Availability.

– More than 95% in the rate of performance. • The main advantage of the implementation of these rates is that they can show how the improvements carried out affect directly the equipment efficiency. – More than 90% in the availability. . – More than 99% in the rate of quality.Overall Equipment Efficiency • Objectives predicted for each indicator by Nakajima.

Overall Equipment Efficiency .

Other Tools • Visual Factory • Error Proofing • Quick Change-over • Total Productive Maintenance .

cont. improvement) Shitsuke (sustain. cleanliness) Seiketsu (standardize. necessary items) Seiton (set-in-order. discipline) .5S Programs • • • • • Seiri (sort. efficient placement) Seison (sweep.

” • 5-S – – – – – 1S 2S 3S 4S 5S Sift and Sort Stabilize Shine Standardize Sustain (Organize) (Orderliness) (Cleanliness) (Adherence) (Self-discipline) .Visual Factory • “Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.

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Questions? .