AGENDA

 INTRODUCTIONS

 What is Lean Manufacturing

 WASTE, 5S, Visual Controls, Continuous

Flow Production, Pull Production, Value
Stream Mapping
 Open Discussion / Examples of Lean
 Responding to the Customer
Every morning in Africa, a Gazelle wakes up; it knows it
must run faster than the fastest lion or it will be killed.

Every morning in Africa, a lion wakes up; it knows it must

outrun the slowest Gazelle or it will starve to death.

It doesn’t matter whether you are a lion or a gazelle:

When the sun comes up, you had better be running!!!
 Strategy
• Produce our service
• Respond to customers

In order to:
• Attract and keep customers
• Be exceptionally tough to compete against
 Focus on Speed
• Accelerating job / work flows to and through the
shop

• The right things at the right place with the right

task being performed, all BLAZINGLY Fast!!!

• Accelerating information flows throughout the

operation

• Having the knowledge to do the above, constantly

How do we do this?
WORKING

HARDER
WORKING

FASTER
WORKING
SMARTER
!!!!!
 Meeting the Challenge
• Requires a new way of thinking.

• Training in new methods.

• Leadership and commitment at all levels.

• Implementation -
– Need to do more than talk.
– We learn by doing.
– Improvements don’t have to be expensive. JUST DO IT!
 Lean is...

A set of principles, concepts and techniques

designed to relentlessly eliminate waste and produce
an efficient, just-in-time production system, that will
deliver to customers

• exactly what they need

• when they need
• in the quantity they need
• in sequence
• without defects
• and at the lowest possible cost
FIRST PROCESS IMPROVEMENT
 Lean Tool / Process

KAIZEN: Continuous Improvement. (never

ending)

OR
Rapid
Improvement
Workshop
 Formal Rapid Improvement
(Kaizen) Event
• Are 5 days long (Can be very long days) or short
surgical strike of 3 days. In addition, there is a 1-
2 week preparation period before each event and
a 1-2 week follow up period after each event.

• During a Rapid Improvement (Kaizen) event, up

to 5 teams, of 2 to15 company employees focus
on specific topics with the following agenda:
 Weeks Agenda
• Day 1: Initial training on the Rapid Improvement
(Kaizen) tools, waste identification, Identification of
the current conditions, Application of the basic Rapid
Improvement (Kaizen) tools.

• Day 2: Brainstorming of solutions, Present to

leadership for concurrence, Start changes.

• Day 3: Implement changes. Run and debug the new

cell (system), continue use and application of the
Rapid Improvement (Kaizen) tools, Imprint new
methods on cell/operators.
 Weeks Agenda

• Day 4: Debug, Document and Standardize

on new method. Demonstrate continued
regular operation of cell and improvement
results.

• Day 5: Present results and review open

issues.
 Rapid Improvement (Kaizen)
• It is not unusual for a Layout or Productivity
Rapid Improvement (Kaizen) team to create
the following improvements by Friday of the
event week.

 25-35% improvement in
Productivity
 50% reduction in Floor Space
 75% reduction in Work in
Process Inventory
 Amazing Potential
• In 3-5 years, the following overall
performance gains are typical of a
Lean Conversion:
 Defects reduced by 20% per year, with zero defects
performance possible
 Delivery Lead Times reduced by more than 75%
 On Time Delivery improved to 99+%
 Productivity (sales per employee) increases of
15-35% per year
 Inventory (working capital) reductions of more
than 75%
 Return on Assets improvement of 100+%
 Lean - A set of tools that fit together

g ci n
Work

la e
mer Takt

Ba Lin
Custo lier

n
Supp hips Cells Multi-
e la t ions
R
Time
Process
y
Qualit
ation Lev u r ance
5S
Ma n om Ass
in t Auto el
en
an
ce
Dem
an d One Attack
Pie
c On
Flo e
ty

Spiri w Waste
fe

a ll t
Sa

Sm
Visual Lot
Size
Controls up t a ke
ys tem Set
Sta
nda Mi s
lS rd
Pul c t ion Wo f ing
u o
Red rk Pro
 The Spirit of Improvement
• Improvement is everyone's job.
• Think of ways to make ideas work.
• Don’t say “can’t.”
• 50% improvement is OK.
• Don’t substitute money for brains.
• Ask “Why?”, five times.
• Improvement is not made from a conference room.
• More ideas are better, especially from people close to the
problem.
• Follow up to make sure the idea is working.
• Improvement is endless.
WASTE
 Hold All WASTE In “CLOSED MITT”
Wastes in Manufacturing
“CLOSED MITT”
• Complexity
• Materials
• Labor
• Idle Materials
• Over production
• Time
• Energy
• Transportation
• Space
Lead time reduction is achieved by
• Defects identifying and eliminating waste.
Map The Process
 Waste Elimination
• All waste is lost profit
• Waste -
things we have paid for, but cannot sell!!!
• Define waste as:
– Any action which does not add value or is NOT
immediately needed
The Target:
WASTE
Your Weapon:
LEAN
MANUFACTURING
Your Implementation tool:
Kaizen or RIW
 Eliminating Waste
Requires a New Mind Set

• Categorize work in two ways:

»Tasks that add value
»Tasks that do not add value
Masking Supplies
Before
Masking Supplies

After
 VALUE ADDED
What does Value Added mean?

Ask: “Is this something the customer would be

willing to pay for”?

Better yet, ask: “Does this activity change the fit,

form or function of the product or service”?
 Product Lead Time

Typical Original
Company VA NVA Lead Time

Small
Traditional Original
NVA
Improvement
Manufacturing VA Lead Time
Improvement

Minor
Improvement
Lean Looks at the NVA
first
Lean Waste VA
Reduction NVA Major
Improvement
 Causes of Waste
• Layout (distance) • Historic supervisory roles
• Long setup time • Irrelevant performance measures
• Incapable processes • Ineffective production / effective production
• Poor maintenance practices • Lack of workplace organization
• Poor work methods • Suppler quality / reliability
• Lack of training • More . . . . .?
• Lack of adherence
 What Job is Next?

Over Production
Excess Inventory / WIP
 5S
A place for everything, and everything
in its place, clean and ready for use.
 The Five S’s
• The 5S Process

– 5S is a process designed to
organize the workplace, keep it
neat and clean, maintain
standardized conditions, and instill
the discipline required to enable
each individual to achieve and
maintain a world-class
environment.
Make Jobs Easier To Do
 5S
The Foundation for Improvement
The 5Ss:
SORT

SIMPLIFY

SWEEP

STANDARDIZE

SELF-DISCIPINE
 Pyramid For Success

g”
rin
tu
ac
Identifies

uf
an
how you build

“M
an and ship your “product”
without wasting resources...
Le

to increase your profit margin.

A campaign dedicated to
organizing your “Environment,”
s
5S

keeping it clean, orderly, standardized,

and disciplined…the foundation for a
WORLD CLASS operation.
5Ss
SIMPLIFYING SWEEPING SORTING 5S IS THE FOUNDATION FOR
STANDARDIZING SELF-DISCIPLINE IMPROVEMENT!
 5S : The Foundation for Improvement
Underlying principle:
A place for everything, and everything in its place,
clean and ready for use. Mistakes can be costly.

How is this principle employed here?

Why is it important?

Is it any less important regarding

your company? C IMSI

(Hint: Every second costs us money!)

 Sort

• Separates the necessary from the unnecessary.

• Unnecessary tools, equipment, and procedures

need to be removed from the workplace.

• Remove the clutter so you can see what is

happening.
 Simplify
• Puts everything in its place and organizes material
according to how frequently it is used.

• Visual aids are encouraged in order to aid

understanding and minimize complexity.
– Shadow boards.
– Labels (return addresses)
– Clearly marked places for items that are movable.
 Ongoing “Sweep”
Keep it neat, prevent messes from
happening.

• By identifying potential problems

with a regular physical and visual
sweep, unsafe and inefficient
conditions or damaged equipment
can be dealt with early in the
process.
 Standardize

• Defines how a task should be done and lets

everyone involved in the process know what
is the “best way” to do something.

• Process changes are documented and

shared as they occur.
 Self-Discipline

• Ensure that all 5S policies are

followed in daily work. This paves the
way for success in other continuous
quality improvement efforts.
 Visual Controls
Visual Controls Allow Us to
 Tell at a glance how we are
doing.

 See abnormal conditions as soon

as they occur.
Color Bins by Customer
Masking Supplies
Work Station
 Visual Controls Should:
• Show how to do the job (standard operations)
• Show how things are used
• Show where things are stored
• Control inventory storage levels
• Show production status
• Indicate when people need help
• Identify hazardous areas
• Mistake-proof the operation
Storage Cabinet

Labeled as to what is
in the cabinet

Return Address Labeled

Locations Marked
Colored Tape On Hose Connections
CONTINUOUS FLOW
PRODUCTION
 Continuous Flow Production
Definition:

• Flow of products in a level manner through the

production operations. The ideal situation is one
piece flow at and between processes.

• The intent of flow production is to increase

the velocity of products and make the
production cycle predictable.
 Steady Velocity
Traditional: Batch Production (like a meandering stream with many stagnant pools, waterfalls, and eddies)

When do we get our Parts? 2 WEEKS!

FLOW:Production: Pipeline with fast-flowing water or product

The right Job and it must keep moving

 Incoming Orders Flow
Planning Stations

Work coming In

Etch for Pent

Steel

Quick turn Decorative

Work is Pulled Into Anodize Line

FLOW
 Summary of Benefits
• Work flow levels are reduced and progress is visible at a glance
• The ability to cross train is enhanced
• Work team members take ownership of full process and can
help each other
• Quick problem identification and feedback
• Reduced Cycle Time
• Improved quality through cycle of learning
• Information flow and decision making enhanced
• Value-added ratio improved
• Reduces transportation waste
• Reduces material handling
• Helps to identify root causes of quality problems
• Allows for equipment dedication
• Drives set-up times down
 Kanban
Is a “signal” that: The signal can be a:
• Card
• Authorizes production • Square
• Authorizes movement • Box
• Pigeon hole
• Limits inventory
• Light
• Drives continuous
improvement • Etc.
• Electronic Signal
• Racks
• Shopping Carts
• MRK ( Manufacturing Ready Kit)
 Rules for Kanban Systems
1) Pull from the downstream process (or customer)
drives the system.
2) All product or inventory is under kanban control.
3) Only an “empty” kanban authorizes production.
4) Never pass a known defect downstream.
5) Use gradual kanban reductions to drive
improvement.
 Purpose of a Kanban System

1) Control of inventory movement.

2) Authorize production.

3) Regulate amount of inventory in the system.

4) A tool for driving continuous improvement.

Value Stream Mapping
 What is a Value Stream?

• The entire set of activities running from raw material to finished

product for a specific product (or in some cases product
family).

• Seek to optimize the whole process from the standpoint of the

final customer.
 What is Value Stream Mapping?
• A visual tool to help see and understand the flow of
material and information.

• It maps all actions required to deliver a product.

• A big picture perspective that focuses on improving

the whole not optimizing pieces of the process.

• A pencil and paper tool that requires physically

observing the factory floor.
 Why Map a Value Stream?

• To highlight sources of waste and put in place

a plan to eliminate them.
• Shows the linkage between the information
flow and material flow.
• To see across the functional boundaries over
which a product’s value stream flows.
 Value Stream Mapping Process

Product Family Define the Value Stream

Current State Drawing Understand how the value

currently flows

Future State Drawing Design a Lean flow

Repeat

Work Plan & Plan how to get there

Implementation and execute the plan
 How Value Stream Mapping Helps

• Helps visualize the whole flow… not an isolated

process.
• Provides roadmap for lean implementation.
• Excellent tool to describe what implementation is
needed to meet business goals.
 Uses for Value Stream Mapping

• A tool for establishing a vision and implementation

plan for your business.
• To help understand how your business actually
works (you don’t understand the current process if
you can’t draw it).
• A visual tool and common language for talking
about your manufacturing process.
 What is a Current State Map?

• A pictorial view showing how material

and information currently flow.
Step 7 90/60/30 day
forecasts
State Street
6 week Production Control Assembly
Michigan Steel
forecast
Company Daily 18400 pieces/month
Weekly Order
Fax -12000- L
500 ft coils MRP - 6400- R

Tray = 20 pieces
Daily Ship 2 shifts
Weekly
WeeklySchedule
Schedule Schedule
Tues. &
Thurs. 1x Daily

Ass’y #1 Ass’y #2
Stamping S. Weld #1 S. Weld #2
Shipping
I I I I I I
Coils
1 4600 L 1 1100 L 1 1600 L 1 1200 L 1 2700 L Staging
2400 R 850R 1440R
5 days 600R 640R
C/T=1 sec C/T=39 sec
C/T=46 sec C/T=62 sec C/T=40 sec
C/O=1 hour C/O=10 m
C/O=10 m C/O = 0 C/O = 0
Uptime Uptime =
Uptime = Uptime = Uptime =
=85% 100%
80% 100% 100%
27,600 27,600
sec. avail. 7.6 sec. avail. 1.8
27,600 2.7
27,600 2
27,600 4.5
5 days
days days
sec. avail. days
sec. avail. days
sec. avail. days PLT = 23.6 days
1 sec 39 sec 46 sec 62 sec 40 sec
VAT = 188 sec.
 What is a Future State Map?

• Visual of improved material and

information flow.

• Unites Lean concepts and techniques.

• Used to drive detailed implementation

plans.
 Material
NOTES:
• I/L Cure = In-Line Cure
Prox SA2 Asse
mbly
• O/L Cure = Off-Line Cure Current State
• Value Added Time = Cycle Time + In-Line Cure Time Takt Time: 2.0 min
(4-20-01) 900 Sensors /week
Process Box

XYZ
Corporation

Customer
Major Customers C/T = 60 sec

Major Suppliers Weekly Master C/O = 30 min

3 shifts
2% scrap

Schedule
Data Box

Boeing, Airbus, I
Inventory
Wire Harnesses Bombardier & Airlines
Killdeer Mtn. Mfg.
Shipment
OXOX
Push

Housings
Pitch = 30 min. Finished Goods
Absolute, Grindley, to Customer
Altek Kanban size = 15
Super
market
Cable Daily
Assy Pull

Connectors Information
Deutsch
Material Info flow
Daily Daily

Electronic Info flow

Weekly
Schedule

Information
Coil Wind, Induct Housing Assy, Cable Rear Cover, Cable Re-seat ATP, Part Mark Shippi
Bond, or Seat & Solder, Fine Sylgard, & & ng
Coarse Cal Solde Cal Weld & Burn -In Altitude Test Final Inspect Production Kanban
r

Withdrawal Kanban

Signal Kanban

420 420 105 0 300 FGS

C/T = 17.2 m C/T = 9.0 m C/T = 34.0 m C/T = 25.9 m C/T = 5.5 m (5 pitches x 4) C/T = 6.3 m C/T = 180 m
(7 pitches x 4) (7 pitches x 4)
C/O = 10.7 m C/O = 0 m C/O = 0 m C/O = 3.4 m C/O = 2.7 m C/O = 6.0 m C/O = 0 m Kanban Post
I/L Cure = 150 m I/L Cure = 0 m I/L Cure = 90 m I/L Cure = 190 m I/L Cure = 0 m I/L Cure = 0 m I/L Cure = 0 m
O/L Cure = 32 h O/L Cure = 0 h O/L Cure = 40 h O/L Cure = 5 h O/L Cure = 0 h O/L Cure = 0 h O/L Cure = 0 h
Kanban arriving
in batches
OXOX
2.3 Days 2.3 Days 0.6 Days 0 Days 1.7 Days
Load Leveling
167.2 min 9.0 min 124.0 min 215.9 min 5.5 min 6.3 min Lead Time: 6.9 Days
Operator
Value Added: 11.8 Hours
 Value Stream Implementation Plan Signatures

Date: Jan. 16, 2001 Plant

Mng.
Supervisor Lean
Black
Maint.

Belt.

Facility Mgr.

V.S. Manager
Manager
Colleen Strash / Ed Mudge
777 Value Stream Plan Page 1 of 3
V.S. Person in
Plant Loop Value Stream Objective Goal Weekly Schedule Support Review Schedule
Level (Measurable Charge
Objective ) Reviewer Date
1/19 1/26 2/2 2/9 2/16 2/23 3/2 3/9 3/16 3/23 3/30 4/ 6

Reduce 1 2 3 4 5 6 7 8 9 10 11 12
Lead * Area Layout N7 Factory Larry Hill Bruce Miller Rick
1 - Upgrade old
Time by Pace Space Black Belt Team Jones Feb. 26, 2001
66% Carousel Opened for
Maker
20% Cost - area (N7) New 777 Ed
Reduction - Move Stores Cell.
- Move Classic Prox Gordy
- Set up new 777 cell
Reduce
*Buy In Secure Black Belt
Lead 1
Pace
- Present to Mgmt Mgmt. Buy- Team
Time by Maker - Simulate in Barry
- Present to Stake and Team Bruce Feb. 26, 2001
66%
Holders Consensus
20% Cost - Form Teams
Eric Fast Tour 6 March Bruce
Reduction
Reduce
Lead  Process Improve Barry Black Belt
Time by 1 Team Team
66% Pace - Reduce 109 Cal Reduce Barry Feb. 26, 2001
Maker
time Lead Times March 29,2001
20% Cost - Enhance ICT to to 8 days Barry
Reduction eliminate Trace
- Assure 24hr PCC Barry
- N7 vibe By 30th Barry Vibe in mid
Mar. April

Reduce  Make It Flow / Reduce To

Lead 1 One Shift Black Belt Feb. 26, 2001
Layout Team
Pace
Time by Maker - Future State Map Op and Ed Team March 29,2001
66% - New Layout Map Reduce
Reduce - Define Pull Signals Labor From
Labor 10 to 7
hours - Update Routings employees. Ed
20% Cost - Address ICT
Reduction constraint Ed
 Post-it Note Exercise
• Divide into two teams (5 to 8 per team), batch team and a pull team
• Clear the table, so nothing is in the way
• Each team member needs a pen or pencil
• Object is to get 10 post-it notes completed with Lean
Manufacturing on each sheet, times the number of team
members
• Each person on the batch team is to write Lean Manufacturing
once on each sheet. When all 10 sheets are done then push to the
next person.
• Pull team writes Lean Manufacturing on one sheet at a time
using kanban rules.