LEAN MANUFACTURING

Reimon Doblon
February 26, 2016
Any idea about LEAN?

?
World’s best manufacturer
What’s this Lean stuff about?

r d ers aid
er O ts P
to m t Ge
Cu the Par
s
pany
Com
Waste
LEAN
• LEAN focuses on eliminating or reducing waste to maximize or fully
utilize activities that add value from customer’s perspective.

• Value-Added: An activity that changes the size, shape, fit, form,

function of material or information to meet the customer
requirement. The customer is willing to pay for it.

• Non-Value-Added: Activities that take time and resources but do not

add to customer requirements.
CURRENT STATE
Manufacturing Lead Time

Processing Time
Value No Value
Added Added

Manufacturing Cost
IDEAL STATE
Manufacturing Lead Time

Processing Time
Value
Added

Manufacturing Cost

When we take out the non-value adding activities,

we shorten the lead time and lessen the cost!
In other words…

Shorter Lead Time = Happy Customers = More Orders

Lower Cost = More Revenue = More Sustainable Business

ve !
c hi e
A
Why Implement LEAN?

• Deal with Global Competition

• Fight the Status Quo
• Involves Everyone
• Improve Quality, Cost, and Delivery
• Win new business
Types of Waste: 1) Transportation

• Multiple handling, delay in material handling, unnecessary handling

• Example:
• Multiple handling and transport of product
• Multiple signatories for approval
2) Inventory

• Holding or purchasing unnecessary raw material supplies, work-in-

process, finished goods

• Example:
• Slow moving materials
• Lots of WIP
• Lots of extra supplies or spare parts
• Old files
3) Motion

• Actions of people or equipment that do not add value to the product

• Example:
• Sorting through a box/crate of parts to find the right one
• Excessive walking from one area to another area
• Hand delivering reports
• Poor work station set-up
4) Waiting

• Time delays, idle time (non value added time)

• Example:
• Waiting for raw material to be delivered
• Waiting for WIP
• Waiting for eqpt. spare parts to be replaced.
• Waiting for approvals
• Waiting for a meeting to start
5) Over-Production

• Producing over customer requirement, producing unnecessary

materials/products

• Example:
• Building to forecast not demand
• Putting 100 pcs sample parts on a 13’ reel
• Generating unused reports everyday
6) Over-Processing

• Unnecessary processing steps or work elements/procedures (non

value-added work)

• Example:
• Multiple inspections
• Multiple data entry
• Extra signature for approvals
7) Defects

• Producing a part that is scrapped or requires rework

• Example:
• Repairing bent leads caused by improper handling of units
• Scrapping of parts due to mis-process
• Payroll mistakes
 Have you seen any waste?
T ransportation
I nventory
M otion
W aiting
O verproduction
O verprocessing
D efects
ELIMINATING WASTE MEANS WORKING
SMARTER, NOT HARDER

More
Work More Value
Value
Waste + Same Waste
Value = More Work

WASTE

More Value
Value + Less Waste
Waste = Same Work
Toast Kaizen
Kaizen Toast
Type of Waste Waste Improvement
Transportation
Inventory
Motion
Waiting
Overprocessing
Overproduction
Defects