Lecture (Nine)

Lean Management (Chapter 3-13)

 History of Toyota
 The founder of Toyota, Sakichi Toyoda was born in 1867.

 In 1902 he invented the G-Type Automatic Loom ( Jidoka) .

 His next dream was to develop a car.

 Kiichiro Toyoda developed the first Toyota prototype, the A1 car in May 1935.

 He provided the “(JIT) production system”.

 "Let's give it a try"

 “Don't be afraid to make mistakes”.

Taiichi Ohno made “Toyota Production System (TPS)” in 1950 based on.

1.Each line become the Supermarket for the following line (“Pull System”).

2.The “Kanban System” and

3.“Takt Time”
 Toyota Production System (TPS)

“A high efficient continuous flow assembly process, which builds quality into the product and achieves

cost reduction through elimination of waste”.

 The Flow

"Sell-one-buy-one“.
 Smoothing The Flow
 Ensuring that information and products flow smoothly with “minimal waste and minimal lead time”.
 Deliver the product to the customer Just In Time.
 Establish a time frame for linking the pace of work in every process to the pace of demand in the market
place.
 Eliminate overproduction and excessive inventory storage.

 Arrange people and equipment in a continuous flow

 Apply Kanban

 Apply Pull System

 Apply Heijunka
 Lean
 Lean is a Philosophy / Management System by which to run an organization.

 Lean manufacturing is a strategy for remaining competitive through the endless pursuit of waste elimination.

 Lean is a Set of Tools organizations use to remove all Non ­Value Added from their processes to improve

the flow of information and material”.

 Lean Principles
1-Value Act on what's important to the customer of the process

2-Value Stream Understand which steps in the process add value & which don't

3-Flow Keep the work moving at all times and eliminate waste that creates delay

4-Pull Avoid making more or ordering more inputs for customer demand you don't have

5- Strive For Perfection There is no optimum level of performance just continuously follow improvements
People Utilization

Before
Before

After
After
Time
Value Added Work
Non Value Added Work
Work processes
 1- Over Production

 Is the “worst of all wastes”.

 It is producing “more” than is required to meet customer demand or producing it at “faster “ speed than is
necessary.
 Causes Inflexibility in production system, poor quality, etc.

 Example : Running bottom side faster than top side

 Solution : Produce only what the customers want, when they want it.
 2- Waiting
 “Waiting for anything” such as people, material, machine or information causes work flow to stop.

 The waste of waiting is “low hanging fruit”.

 Causes of it:
1. Poor work balance

2. Poor communication

3. High setup time

4. Breakdown
 3-Transportation

 Any transportation not required for JIT production is a waste.

 It can be minimized by locating sequential operations as close together as possible.

 Caused due to distance between operations, Poor Layout, batch processing, etc.
 4- Inventory
 Inventory such as final products, semi finished products and parts which need some place in the factory to
be stored is a waste.

 Results from overproduction, Inflexibility in production system, lack of balance.

 Using a pull system, Takt time or paced withdrawal will reduce inventory waste.
 5- Motion
 Unnecessary movement of people, material, or machinery that does not add value within a process is waste
of motion.

 Poor equipment layout , poor placed parts or, dies & tools , poor work arrangement, etc.

 Arrange people and parts around stations with work content that has been standardized to minimize motion
 6- Defects

 This category of waste refers to all processing needed to correct defects.

 Defects results in additional time, materials energy, capability & labor cost.

 Poor training, non-standard operations, difficult or lack of quality at the source.

 7- Over Processing
 This is the most difficult of the wastes to find out.

 Putting more work or effort into a part / process than is required by the customer.

 Inspection after inspection due to lack of confidence

 Poor communications between customer and supplier, Lack of procedure, etc.

 8-People Utilization
This waste related to not using people's skills to their fullest.
 Causes of Waste
Set up time Poor Layout Poor maintenance lack of training

Poor suppliers Lack of Poor design Poor

control standardized work process communication

Ineffective work Incorrect kanban Poor schedule

method calculation
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 Questions
1- What is meant by:
•Lean management
•Lean Principles
•Waste
•Kaizen
2- Identify the major causes of Waste?

3- Put () in front of the correct sentence and (x) in front of the incorrect sentence
•Not using people's skills to their fullest is waste
•Standardized work causes waste
•Inspection after inspection due to lack of confidence is waste
•Poor equipment layout is waste
•Long setup time is waste
•Using a pull system will reduce inventory waste
•Lean is a set of tools organizations use to remove all Non ­Value Added from their processes