Intro.
to Lean
Manufacturing
Craft Manufacturing
• Late 1800’s
• Car built on blocks in the barn as workers
walked around the car.
• Built by craftsmen with pride
• Components hand-crafted, hand-fitted
• Excellent quality
• Very expensive
• Few produced
2
Mass Manufacturing
• Assembly line - Henry Ford 1920s
• Low skilled labor, simplistic jobs,
no pride in work
• Interchangeable parts
• Lower quality
• Affordably priced for the average family
• Billions produced - identical
3
Lean Manufacturing
• Cells or flexible assembly lines
• Broader jobs, highly skilled
workers, proud of product
• Interchangeable parts,
even more variety
• Excellent quality mandatory
• Costs being decreased through process
improvements
• Global markets and competition
4
Influences That Trigger Change
highly rapid growth in tighter
configurable size & revenue quality
products standards
high cost of
insufficient
manufacturing
vendor
capabilities
fluctuations in
material
demands
shortages
increased inconsistent
long learning
competition processes
curves
5
In 1926 Henry Ford wrote
– “To standardize a method is to choose out of the many
methods the best one, and use it. Standardization means
nothing unless it means standardizing upward.
Today’s standardization, instead of being a barricade against
improvement, is the necessary foundation on which
tomorrow’s improvement will be based.
If you think of “standardization” as the best that you know
today, but which is to be improved tomorrow - you get
somewhere. But if you think of standards as confining, then
progress stops.”
6
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
Materials Labor Equipment Energy Methods
Products
Source: The Machine that Changed the World
Womack, Jones, Roos 1990 7
Lean Manufacturing
is a manufacturing philosophy which shortens the time line between
the customer order and the product shipment by eliminating waste.
Business as Usual
Customer Waste Product
Order Shipment
Time
Lean Manufacturing
Customer Product
Order Waste Shipment
Time (Shorter)
8
The 3 M’s of Lean
• muda – waste
• mura – inconsistency
• muri – unreasonableness
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7 Wastes
Defining Waste
Webster’s Dictionary:
“To Consume Carelessly”
“Squander”
“Fail to Take Advantage”
“Uncultivated Area”
“Junk”
“Loose Energy”
“Grow Weaker”
“Worthless Residue”
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Waste
“Anything
“Anything that
that adds
adds Cost
Cost
to
to the
the product
product
without
without adding
adding Value”
Value”
11
Waste
Eliminating waste is the greatest potential
source of improvement in corporate profit,
performance, and customer service.
For most production operations:
- 60% add no value at all
- 35% are “necessary” activities, but don’t add value
- only 5% of activities actually add value!
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7 Wastes
Identification and Elimination of Waste
Philosophy
• Identification and elimination of waste is the central theme of a
lean manufacturing production system
• Lean manufacturing is a dynamic and constantly improving
process dependent upon understanding and involvement by all
employees
• Successful implementation requires that all employees must be
trained to identify and eliminate waste from their work
• Waste exists in all work and at all levels in
the organization
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7 Wastes
Identification and Elimination of Waste
Philosophy
• Effectiveness is the result of the integration of:
- Man
- Method
- Material
- Machine
At the worksite
• Waste exists in all work and at all levels in the organization
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7 Wastes
Seven Types of Waste
Over-production
Wait time/Delays
Transportation
Processing
Inventory
Motion
Defects
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7 Forms of Waste
CORRECTION
Repair or MOTION
WAITING
Rework Any wasted motion
Any non-work time to pick up parts or
waiting for tools, stack parts. Also
supplies, parts, etc.. wasted walking
Types
PROCESSING of OVERPRODUCTION
Producing more
Doing more work than Waste than is needed
is necessary
before it is needed
INVENTORY
Maintaining excess CONVEYANCE
inventory of raw mat’ls, Wasted effort to transport
parts in process, or materials, parts, or
finished goods. finished goods into or
out of storage, or
between
processes.
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Lean Manufacturing
• A production philosophy in which materials flow
continuously from raw materials to finished
goods.
• Producing more with less…Time, Inventory,
Capital ($), and Resources.
• Highlights what needs to be changed. What is in
the way of continuous flow is waste.
• Principles apply to small and large
manufacturers.
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Lean Manufacturing
- Key Philosophies
• Streamline the production flow by eliminating
wasted time, wasted effort, and wasted
processing.
• Small batch (one piece lots).
• Redirect non-value added activity into value
added activity.
• Reduce cycle time, reduce non-value and
receive revenues ($) faster.
• Flow manufacturing – make one, move one.
• Product cells.
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Focus of Mass Manufacturing
vs. Lean Manufacturing
Mass Manufacturing Lean Manufacturing
Whole system
Economies of scale
improvement
Individual efficiency Total system efficiency
In Lean Manufacturing an individual part of the system
may be operating less efficiently, but at the same pace as
upstream and downstream processes.
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Lean Manufacturing
– Common Traits
Methods Common traits
Status boards
Visual Management Right size storage space
Goal: Highlight problems Andon lights
Colored bins, areas
Standardized Work Simple workstation documentation
Flexible layout
Flexible Work
Flexible work centers
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Lean Manufacturing
– Common Traits
Methods Common traits
Production based on consumption
Triggers:
- Kanban cards
Pull Production - Bins
- Marked space
- Dedicated containers
- Computer system
Minimum disruption
Quality at the Source
Quicker cause effect identification
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Lean Manufacturing
– Common Traits
Methods Common traits
Decision tools, not tracking tools
Inventory
Performance Measures
Disruption in material flow
Dock to dock time
Common awareness to business
Operating Environment goals
Commitment of management
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The Nature of Lean
Manufacturing
• What Lean Manufacturing is not
– JIT
– Kanban
• Characteristics
– Fundamental change
– Resources
– Continuous improvement
• Defined
– “A system which exists for the production of goods or
services, without wasting resources.”
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New Paradigm: Non-blaming
Culture
Management creates a culture where:
• Problems are recognized as opportunities
• It’s okay to make legitimate mistakes
• Problems are exposed because of
increased trust
• People are not problems - they
are problem solvers
• Emphasis is placed on finding solutions instead
of “who did it”
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What Makes a Manufacturing
System Lean?
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Who wants what...
$ Cash
Cash !!!!
Value
Value !!!!
Customer
Low Cost Your Company
High Quality Profit
Availability Repeat Business
Growth
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Price Increase
3
Price to
Sell 3
2
Bigger
Bigger Profit
Profit 2
Some
Some Profit
Profit
Cost to
Produce 1 1
Cost
Cost ++ Profit
Profit == Price
Price
Cost Reduction
Price to
Sell 1 1
Some
Some Profit
Profit 3
Cost to
2 Bigger
Bigger Profit
Profit 3
Produce
Price
Price-- Cost
Cost == Profit
Profit
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Elements of Lean Manufacturing
• Waste reduction
• Continuous flow
• Customer pull
• 50, 25, 25 (80,10,10) Percent gains
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Benefits of Lean Manufacturing
• 50 - 80% Waste reduction
– WIP
– Inventory
– Space
– Personnel
– Product lead times
– Travel
– Quality, costs, delivery
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Setting the Foundation
• Evaluating your organization
– Management culture
– Manufacturing culture
• Lean Manufacturing Analysis
– Value stream (from customer perspective)
– Headcount
– WIP
– Inventory
– Capacity, new business, supply chain
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How to go lean
Objective Method
Setting the direction,
Understand customers
1 and what value they want
targets and checking
results
Define the internal value An internal framework for
2
stream delivering value
Eliminate waste, make
Appropriate method to
3 info & products flow,
make necessary change
pulled by customer needs
Extend the definition of Externalise the value
4 value outside your focus to the whole value
company stream
Strive for perfection in the
Continually aim for
5 product and in all
perfection
processes and systems
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Tools of Lean Manufacturing
• Waste reduction
– Full involvement, training, learning
– Cellular manufacturing
– Flexible manufacturing
– Kaikaku (radical change)
– Kaizen (continuous improvement) & standard work
– 5S
– Jidoka (autonomation)
– Poka-yoke (error proofing)
– Shojinka (dynamic optimization of # of workers)
– Teien systems (worker suggestions)
33
Kaizen vs Reengineering
• The evolution consists of continuous improvements being made
in both the product and process.
• A rapid and radical change (kaikaku) process is sometimes
used as a precursor to kaizen activities.
– Carried out by the utilization of process reengineering or a
major product redesign.
– Require large investments and are based on process
automation.
• In the U.S., these radical activities are frequently called
“kaizen blitzes”.
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Kaizen vs Reengineering
• Creating an useable and meaningful standard is key to
the success of any enterprise.
• Businesses usually utilize two different kinds of
improvements.
– Those that suppose a revolution in the way of
working.
– Those that suppose smaller benefits with less
investment.
Final situation
productivity
Kaizen
Reengineering
Initial situation
time 35
Kaizen vs Reengineering
• If the process is constantly being improved (continuous line), 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
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Tools of Lean Manufacturing
• Continuous Flow (10% - 25%)
– SMED (Shingo)
– Andon
– Takt time
– Line balancing
– Nagara (smooth production flow)
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Tools of Lean Manufacturing
• Customer pull (10%- 25%)
– Just-in-time
– Kanban
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Other Tools
• Visual Factory
• Error Proofing
• Quick Changeover
• Total Productive Maintenance
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Evidence of Progress
toward Lean
• Smaller lot sizes
• Increased capacity / throughput
• Higher inventory turns
• More available floor space
• Improved workplace organization
• Improved quality: reduced scrap / re-work
• Reduced inventories: raw, WIP, FG
• Reduced lead times
• Greater gross margin
• Improved participation & morale
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