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Introduction to Lean

Manufacturing
Lean Manufacturing
Definition
Lean has been defined in many different ways.
Lean has been defined in many different ways.

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.

By The MEP Lean Network

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History Timeline for Lean Manufacturing

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Lean manufacturing is a
philosophy
In 1990 James Womack, Daniel T. Jones, and
Daniel Roos wrote a book called The
Machine That Changed the World:
The Story of Lean Production-- Toyota's Secret
Weapon in the Global Car Wars That Is Now
Revolutionizing World Industry

In this book, Womack introduced the Toyota


Production System to American.

What was new was a phrase


"Lean Manufacturing."
Intro-To-Lean
How to Increase Profit?

Intro-To-Lean
Muda (Waste)
Taiichi Ohno (1912-1990), the Toyota executive who was the most
ferocious foe of waste human history has produced, identified the
first seven types of muda in manufacturing system:

Storage
Transportation
Waiting
Motion
Process
Defects
Over-production
Muda is everywhere.

Intro-To-Lean
Lean Overview

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Lean Manufacturing Tools
5S
Value Stream Mapping
Standardized Work
Load Leveling
Kaizen
Kanban
Visual Workplace
Quick Changeover
Andon
Poka-yoke
One-piece flow
Cellular Manufacturing
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Production Planning System (Push
System)

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Push or Pull?

A push system
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Push or Pull?

A pull system
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Kanban Operation
Kanban Stage Kanban Stage
1 i

RM FG
Station Station Station Station Station
1 2 i i+1 N+1

WK(1) PK(1) WK(2) PK(2) WK(i) PK(i) WK(i+1) PK(i+1) WK(N) PK(N)

Intro-To-Lean
Raw materials
inventory

3
14
7
Semi-finished 11 Semi-finished Finished
parts parts goods

11 7
12
Station 3

RM RM RM
Station 1
11 Station 2
7 3
8 4
WK PK 8 WK PK WK PK
13 4
9 5
7
11
2

10 6
13

Material
handler Order
receiving 1

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Current State Map of A Case Study
Example

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At which stations, are parts withdrawn?
Future State MapAt which stations, are parts scheduled?

Intro-To-Lean
Which to Choose MRP
(ERP), or Kanban?
Where MRP (ERP) works best:

MRP is by its very nature a forward-looking


system.
MRP can be very effective in an environment
with a great deal of variability.
MRP is recognized an engine to drive an
integrated enterprise-wide information
system. Purchasing and logistics activities
were similarly being integrated with
fundamental internal materials management
principles into an enterprise-wide approach.
Intro-To-Lean
MRP or Lean Manufacturing?
Where MRP is not as effective.
MRP is a predictive system. It does not reflect to
customers demand (easy to get overproduction).
A company takes MRP suggestions and acts on them without
too much review is very risky.
MRP wont fully support the cost-cutting.
MRP needs lots of data for production management.
MRP generates high overhead.
MRP builds high work-in-process.
MRPs lead times are fixed.
MRP creates potential quality hazard.

Intro-To-Lean
Which to Choose MRP
(ERP), or Kanban?
Where Kanban works best.
Kanban is a very reactive system. Very little is
planned ahead. Instead, Kanban causes replacement of
material used in a totally reactive mode. Kanban works
best in a highly stable and predictable environment.

Where it is not as effective.


Kanban can quickly fail in a highly volatile
environment because of the reactive nature of the
system. Volatility in customer demand, processing
problems, and extensive changes in product designs
make it very difficult for a Kanban system to work
effectively.
Intro-To-Lean
Which to Choose MRP
(ERP), or Kanban?
Kanban and MRP Combination
The combination of these two systems is becoming quite
common. An MRP system is used for advanced planning,
including long lead-time purchased materials, adding
resources, and implementing product design changes. Once
the MRP has the materials and resources lined up,
however, Kanban is used as an execution system, bringing
with the characteristics of rapid response to customer order
and reduced inventory levels throughout the process.

Hybrid Systems
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The Objections to Lean
How should you deal with these objections to
lean?
It is very hard to deal with raw material
suppliers if we fully depend on customer
order.
It takes too much discipline.
It takes too long to implement.
My process is too complex; I have to deal
with too many uncontrollable variables, like
late supplier shipments, sick people, etc.
My process requires a large batch size.
It doesnt make sense in my industry.
Intro-To-Lean

Lean and Green
The environmental impacts due to
production and waste generation
have made its way into every day
society.
Consumers are becoming more
environmentally conscious.
With the Earths limited resources,
companies are more conscious of
their carbon footprint, and there has
been a movement to create more
environmentally friendly decisions.
Green engineering is the systems-level approach to product and
process design where environmental attributes are treated as
primary objectives or opportunities rather than simple constraints.
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lean manufacturing is a link
to green engineering
Lean manufacturing is the business model and collection of tactical
methods that emphasize eliminating non-value- added activities
(waste) while delivering quality products at lowest cost with greater
efficiency. In conjunction, six goals of green engineering are:
1. Select low environmental impact materials.
2. Avoid toxic or hazardous materials.
3. Choose cleaner production processes.
4. Maximize energy and water efficiencies.
5. Design for waste minimization.
6. Design for recyclability and reuse of material.

Intro-To-Lean
lean manufacturing is a link
to green engineering
Population grows
Wastes increase
Fossil fuels are diminishing and there is nothing replenishing them.
Consumers are becoming more aware of the environment and
prefer environmentally friendly companies.
Being lean and green is so important now to reduce the
consumption of natural resources and the CO2 concentration
in the Earths atmosphere.

The only real difference between lean and green manufacturing is


that green actually designs the product or process with the
environment as a constraint while lean creates a process with the
view of the environment as a valuable resource and not a
constraint.
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Key Steps in Transforming
a Company to the Lean
Approach
1. Establish a steering teamconduct strategic planning session
2. Train the steering team and the model line team in the
disciplines of lean
3. Perform PQR (product-quantity-routing) analysis
4. Identify value streamsselect a value stream
5. Calculate model line takt time
6. Value stream map the model lineassemble current state
map
7. Balance the lineassign standard work
8. Establish standard WIP (inventory levels)
9. Test the system (virtual cell)document results
10. Setup reduction event

Intro-To-Lean
Key Steps in Transforming
a Company to the Lean
Approach
11. Conduct 5S eventapply TPM techniques
12. Establish visual signalsreduce paperwork
13. Explore alternative flow patterns
14. Develop block layout
15. Develop detailed layout
16. Execute move
17. Select next value stream and repeat

Gary Conner, President of Lean Enterprise Training, Newport, OR, Road Map to
Lean for the Smaller Shop, Society of Manufacturing Engineers, Lean
Manufacturing 2007, Supplement to Manufacturing Engineering, 2007.
pp. 27-29.

Intro-To-Lean
References
Society of Manufacturing Engineers, Lean Manufacturing 2007,
Supplement to Manufacturing Engineering, 2007.
Society of Manufacturing Engineers, Lean Manufacturing 2008,
Supplement to Manufacturing Engineering, 2008.
Garrett Brown and Dara ORourke, Lean Manufacturing Comes to
China: A Case Study of its Impact on Workplace Health and Safety,
International Journal of Occupational and Environmental Health (IJOEH),
13(3), JUL/SEP 2007.
Challenges in Applying Lean Manufacturing in China, McKinsey
Quarterly, 2006 Special Edition available at Jackson Library. Friday,
October 12, 2007 | Posted by Simone Yu in International

Intro-To-Lean