INTRODUCTION TO LEAN

MANUFACTURING
Overview

Structure of Session
What is Lean and Lean Manufacturing
History of Lean
Lean Manufacturing and Waste
Techniques in Lean Manufacturing for
Waste Improvement
Learning Outcomes

Upon completion of this topic, you should be

able to:

1.Understand what is ‘Lean Manufacturing’

2.How to avoid the problems
3.The techniques apply in Lean
Manufacturing
What is Lean Manufacturing?

Philosophies Principles Methdologies Tools

FOCUS ON WASTE
The aim of Lean is the elimination of waste in every area of
the organization including:

What is Lean?
What is Lean Manufacturing?

Philosophies Principles Methdologies Tools

MANY NAMES, BUT THE SAME CONCEPT

Toyota Production System Pull Manufacturing
Just-In-Time
Lean Manufacturing
JIT/TQC/EI/TPM
Short Cycle Manufacturing
One-Piece-Flow
Cellular Manufacturing Demand Flow
Manufacturing
Stockless Production Focused Flow Manufacturing

Agility Value Adding Manufacturing

Group Technology Time Based Management

Synchronous Flow Manufacturing

End-Lining Operations Continuous Flow Manufacturing
What is Lean Manufacturing?

Philosophies Principles Methdologies Tools

It translates as “Agile Manufacturing”.

 Lean Manufacturing is a philosophy about the operation of a company.
 It means doing more with less: less effort and stress of people, less
equipment, fewer resources and in the shortest possible time.
 Lean is headed ever closer to what you want to offer customers with the
highest quality at the lowest cost and with the required delivery (not
before or after).
 Commonly, Toyota Production System (TPS) is synonymous with Lean
Manufacturing.
In summary:

"A systematic approach to identifying and eliminating waste (non-

value-added activities) through continuous improvement by flowing
the product through flow processes based on a signal from the
customer."
What is Lean Manufacturing?

Philosophies Principles Methdologies Tools

OTHER DEFINITIONS

“A team based approach to identifying and eliminating

waste (non-value-adding activities) through continuous
improvement by flowing the product at the pull of the
customer in pursuit of perfection”

“A manufacturing philosophy that shortens the time

line between the customer order and the shipment
by eliminating waste (non-value-adding activities).”
DEFINITION OF VALUE ADDED

Philosophies Principles Methdologies Tools

Value Added
Any activity that increases the market form or
function of the product or service. (These are things
the customer is willing to pay for.)

Non-Value Added = Waste

Any activity that does not add market form or
function or is not necessary. (These activities should
be eliminated, simplified, reduced or integrated.)
LEAN = ELIMINATING THE WASTES

Typically 95% of Total Lead Time is

Non-Value Added!!!

RUN Order Processing, Transport, Storage, Waiting, Rework,

TIME Machine Setup, Inspection, Machine Breakdowns, etc...

Total Lead Time

9
Brief History of Manufacturing

Philosophies Principles Methdologies Tools

1850 1900 1950 1990 2000

Eli Whitney (1799)
Interchangeable parts.
Lean Manufacturing
(1990)
Henry Ford (1908)
Implementation of production
lines and division of
activities.

Frederick Taylor Eiji Toyoda, Shigeo Shingo, Taiichi Ohno

& Frank Gilbreth (1890) (1950)

Study standardization and Creating the "Toyota Production System".

working methods World Class Manufacturig.
(scientific management).
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
Mass Manufacturing

Assembly line - Henry Ford 1920s

Low skilled labour, simplistic jobs,
no pride in work
Interchangeable parts
Lower quality
Affordably priced for the average family
Billions produced - identical
Toyota Production System (TPS)

In 1945, Toyoda challenged Taiichi Ohno to learn how to compete with US Automakers not
on building large volumes of similar models, but many models in low volume.
Ohno was given 3 years to develop a system to achieve this goal.
It took Ohno over 20 years to develop the system that became known as The Toyota
Production System (TPS)

Lean Manufacturing introduced to the

US and UK in 1990s and
Focused on Toyota Production System
Concepts and Why Toyota was able to be
so successful over US Auto Manufacturers

Toyota Production System (TPS)

The main objectives of the TPS are to
design out overburden (muri) and
inconsistency (mura), and to eliminate
waste (muda).
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.
Lean Manufacturing
Fundamentals
Philosophies Principles Methdologies Tools

Goal:
Customer Focus
Excellent quality, at the lowest cost,
in minimum turnaround time and eliminating movements continuously.

Just in Time Jidoka

(JIT)

Producing only Automation with a

what is needed, Involvement human inteligence.
when it is needed Motivated team members to
and in the amount continually seek the best way of
needed. doing things.

Standardization

Stability
Lean Manufacturing
Philosophy

Philosophies Principles Methdologies Tools

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)
Lean Manufacturing
Philosophy

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 PROBLEMS
solutions instead of
SOLUTIONS

“who did it”

Lean Manufacturing
Principles
Philosophies Principles Methodologies Tools

Lean Manufacturing works on five principles which are:

1. Define what is valuable to the customer, not us.

2. Optimizing the value chain.

3. Set streams and synchronized processes and information systems.

4. Pull the product to the rhythm of customer demand.

5. Continually seek perfection in all our activities.

What makes a manufacturing system lean?
– the 3 M’s of lean

muda - waste
mura - inconsistency
muri - unreasonableness
Muda

Philosophies Principles Methodologies Tools

“Muda is a Japanese word that we know. Sounds disgusting when speak and
should be, because moving means 'waste', and specifically any human
activity that consumes resources but creates no value for the customer”.
James Womak
Author of Lean Thinking

Receipt of work order LEAD TIME Product Shipping

So ... Lean Manufacturing is a philosophy of work focused on eliminating all waste
in an organization
Punching … Weld Polish Assemble Paint Pack

Receive Store Inspection Wait Store

…What is a waste? Move Repair

Operation of Value Added to Product

Time of No Value Added (Muda)

Ratio of value added activities in a manufacturing

company (typically) Applying Lean Manufacturing

5%
95% NVA VA 50% NVA 50% VA
Muda
7 Wastes
Philosophies Principles Methodologies Tools

All Muda found within a value chain can be included within the following
seven major wastes:

Overproduction

Defects Inventory

Over Processing Waiting

Transportation Movement
Muda
7 Wastes
Philosophies Principles Methodologies Tools

T - Transport
I - Inventory
M - Movement
W - Waiting
O - Over-processing
O - Over-production
D - Defects
Understanding Waste (Shingo)

Waste Description
1. Overproduction Producing too soon or too much, resulting in poor flow of
information or goods and leading to excess inventory.
2. Defects Frequent errors in paperwork, product quality problems, or
poor delivery performance.
3. Unnecessary Excessive storage and delay of information or products,
inventory resulting in excessive cost and poor customer service.
4. Inappropriate Using the wrong tools, procedures or systems in a
processing process, when a simpler approach may be more effective.
5. Excessive Excessive movement of goods, information or people,
transportation resulting in wasted time, effort and cost.
6. Waiting Long periods of inactivity for goods, people or information,
resulting in poor flow and long lead times.
7. Unnecessary Poor ergonomics in the workplace resulting in bending
motion stretching etc.

23
Waste in a Manufacturing
Enterprise can be disguised as
 Lost Time/Injury Accidents
 Scrap/Rework
 Machine Setups
 Machine Downtime
 Calibrations
 Inventory Storage
 …
24
Muda
Transportation - TIM WOOD
Philosophies Principles Methodologies Tools

• Moving or transporting materials more than is required is the simple

definition.
• This can actually have much greater consequences for a manufacturing
organisation.
• Require handling mechanisms such as pallet or
fork trucks
• Trucks need servicing and a driver
• Trucks need space to operate
• Trucks need insurance and use energy
• Trucks require containers to move components
• All of the above is Non Value Added
Causes of transportation waste
Muda
Transportation - TIM WOOD
Philosophies Principles Methodologies Tools

Wasted effort to transport materials, parts, or finished goods into or out of

storage, or between processes.

With application of Lean

Manufacturing?

Demonstrated the
reduction between 70 to
95%!
Muda
Inventory - TIM WOOD
Philosophies Principles Methodologies Tools

Material in warehouses or production lines waiting to be processed.

With application of Lean
Manufacturing?
Demonstrated reduction
between 60 and 90%!

reliability
Defects
Machinery Lack of
slow ability to
Inadequate
demand Lack of process
Quality teamwork
forecast
Problems
Long product Supply
changes time unbalanced
Machine fault lines Problems

The inventory is like a river. When the level drops, the rocks appear.
Reduce inventory raises issues to the surface increasing the need of
improvement.
Muda
Inventory - TIM WOOD
Philosophies Principles Methodologies Tools

• Inventory in large numbers can carry inherent quality

problems that would have been picked up much earlier in
small batches
• Inventory could become obsolete or require further work due
to a design change if not used quickly enough
• Inventory in storage can become damaged or degrade if
perishable
• All inventory costs money for materials and labour.
• This can cause cash flow problems.
Muda
Movement - TIM WOOD
Philosophies Principles Methodologies Tools

• Unnecessary movement of people, examples being long

distances between workstations, double-handling of
materials or having to stretch to reach materials or tools.
• As well as the waste associated with the unnecessary
movement it can lead to the following:-
• Fatigue of the operator
• Risk of injury due to not working in the preferred work space
• Damage to components or assemblies due to the poor handling
• Less output due to wasted effort.
Muda
Movement - TIM WOOD
Philosophies Principles Methodologies Tools

Any unnecessary movement that does not add value to the product.

Causes of wasted motion:

• Poor people/machine effectiveness
• Inconsistent work methods
• Poor facility or cell layout
• Poor workplace organization and housekeeping
• …..

With application of Lean

Manufacturing?

Reduction of movements
between 50 and 80%!

With application of Lean

Manufacturing?

Reduction of space
between 75 and 100%!
Muda
Waiting - TIM WOOD
Philosophies Principles Methodologies Tools

Operations or equipment remain in standby or wasted, due to material or

flow problems.

Waiting also brings with it the following problems:

– Sign of bad planning on behalf of management
– Could be due to poor maintenance of machines causing breakdowns
– Material shortages
– Operator dissatisfaction.

With application of Lean

Manufacturing?

Demonstrated reduction of
waiting time up to 95%!
Muda
Overproduction - TIM WOOD
Philosophies Principles Methodologies Tools

It is the first and greatest of all waste.

Produce more or earlier than the client requires.

I need
twenty pieces
Thirty?
Do you think 40...
Highest order is 50

With application of Lean

Manufacturing?

Demonstrated reduction
of between 70 and 95%!
Muda
Over Processing - TIM WOOD
Philosophies Principles Methodologies Tools

Efforts or additional operations that do not add value to the product.

• Extra cost of machinery and equipment

• Introduction of control procedures that are not appropriate
• Could also be producing components out of tolerance due to a very
unprecise piece of processing equipment which requires further work
afterwards or increases defects
• Doing more processing to the parts than the customer really requires
• Over processing waste can be minimized by asking why a specific
processing step is needed and why a specific product is produced
• All unnecessary processing steps should be eliminated

With application of Lean

Manufacturing?

Reduction shown between

70 and 100%!
Muda
Defects - TIM WOOD
Philosophies Principles Methodologies Tools

• Making products that are not suitable for sale, or require reprocessing
to bring them up to standard.
• The production of defects or rework can occur due to the following
reasons:-
– Badly maintained machines
– Poorly trained operators
– Bad product design
– Poor layout of work area
– Inappropriate processing.

• Requires additional resources and time to correct defects before

shipping or replace parts that are scrapped due to defects.
Muda
Defects - TIM WOOD
Philosophies Principles Methodologies Tools

Inspection, Rework, Repair, Scrap.

With application of Lean

Manufacturing?
With application of Lean
Manufacturing? Scrap reduction of between
80 and 100%!
Quality improvement between
50 and 90% in the line!

With application of Lean

Manufacturing?

Rework reduction between

70 and 90%!
Dealing with 7 wastes

Dealing with the 7 Deadly Wastes (Lean Manufacturing)

Lean Manufacturing
Definitions
Philosophies Principles Methodologies Tools

Takt Time (TT)

- It is the pace of customer demand which can be defined as an indicator on
the amount of time required to deliver a product.
Available time (in seconds)
Takt Time =
Demand

Cycle Time (CT)

- It is the time required to perform an operation within the manufacturing
process. Ideally, the cycle time must be less or equal to the Takt Time.

Process Time (PT)

- It is the time of the operation considering only value-added activities.

Flow Time (FT)

- The time it takes to perform all the operations of the manufacturing process.
From incoming raw materials to the finished product comes out.

The goal of Lean is to reduce the flow time to eliminate all waste found!!
Lean Manufacturing
Tools
Philosophies Principles Methodologies Tools

Various commercial tools based on Lean Manufacturing can be used to

eliminate or minimize waste found within an organization.

Usually these tools are applied during Kaizen events.

Kanban
TPM
And how you can eliminate these
5’S seven wastes?

Jidoka
Andon
Takt Time

VSM Standard Work

3P
Heijunka JIT

Hoshin Kanri Poka Yoke

SMED

Cell Manufacturing
What makes a manufacturing system Lean?
Traditional Manufacturing vs Lean Manufacturing

Traditional Lean
Manufacturing Manufacturing
Scheduling Forecast - push Customer Order - pull

Production Stock Customer Order

Lead Time Long Short

Batch Size Large - Batch & Queue Small - Continuous Flow

Inspection Sampling - by inspectors 100% - at source by workers

Layout Functional Product Flow

Empowerment Low High

Inventory Turns Low - <7 turns High - 10+

Flexibility Low High

Cost of Goods Sold High and Rising Lower and Decreasing

(COGS)

40
Summary

What is Lean manufacturing

History of Lean
Lean and Waste
End of Part I