1. Lean Manufacturing & Just-in-Time
"The most dangerous kind of waste is the waste we do not recognize." - Shigeo Shingo

2. Reducing Waste: Push versus Pull System
Material Flow
Information Flow
FGI
Customer
Raw
Material
Supplier
Final
Assembly
PUSH
FGI
Customer
Raw
Material
Supplier
Final
Assembly
PULL

3. Push System
Every worker maximizes own output, making as many products as possible
Pros and cons:
Focuses on keeping individual operators and workstations busy rather than efficient use of materials
Volumes of defective work may be produced
Throughput time will increase as work-in-process increases (Little’s Law)
Line bottlenecks and inventories of unfinished products will occur
Hard to respond to special orders and order changes due to long throughput time

4. Pull System
Production line is controlled by the last operation, Kanban cards control WIP
Pros and cons
Controls maximum WIP and eliminates WIP accumulating at bottlenecks
Keeps materials busy, not operators. Operators work only when there is a signal to produce.
If a problem arises, there is no slack in the system
Throughput time and WIP are decreased, faster reaction to defects and less opportunity to create defects

5. Features of Lean Production
Management philosophy
“Pull” system though the plant
WHAT IT IS
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT DOES
Stable environment
WHAT IT ASSUMES
Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT REQUIRES
Kaizen 13

6. A Little History! Ford: Design for manufacturing
Start with an article that suits and then study to find some way of eliminating the entirely useless parts. This applies to everything— a shoe, a dress, a house, a piece of machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut down the cost of making. ...But also it is to be remembered that all the parts are designed so that they can be most easily made."

7. A Little History! Ohno – put ideas into practice systematically
“When bombarded with questions from our group on what inspired his thinking, Ohno just laughed and said he learned it all from Henry Ford's book."

8. TPS: Toyota Production System
A system that continually searches for and eliminates waste throughout the value chain.
Views every enterprise activity as an operation and applies its waste reduction concepts to each activity - from Customers to the Board of Directors to Support Staff to Production Plants to Suppliers.

9. Muda Elimination of Waste Acronym – CLOSED MITT Complexity Labor
Overproduction
Space
Energy
Defects
Materials
Inventory
Time
Transportation

10. Elimination of Waste 5S Group technology Quality at the source
JIT production
Kanban production control system
Minimized setup times
Uniform plant loading
Focused factory networks 6

11. Minimizing Waste – 5S Japanese Translation English Seiri
“Good factories develop beginning with the 5S’s. Bad factories fall apart beginning with the 5 S’s.”
- Hirouki Hirano
Japanese
Translation
English
Seiri
Proper arrangement
Sort
Seiton
Orderliness
Simplify
Seiso
Cleanliness
Sweep
Seiketsu
Cleanup
Standardize
Shitsuke
Discipline
Sustain

12. Minimizing Waste – 5S
A place for everything and everything in its place
Not just a housekeeping issue
Critical foundation for
Setup reduction
Pull systems
Maintenance
Inventory management

13. Minimizing Waste: Group Technology
Using Departmental Specialization (Job Shop) for plant layout can cause a lot of unnecessary material movement
Note how the flow lines are going back and forth
Saw
Saw
Saw
Grinder
Grinder
Heat Treat
Lathe
Lathe
Lathe
Press
Press
Press 8

14. Minimizing Waste: Group Technology
Revising by using Group Technology Cells can reduce movement and improve product flow
Grinder 1 2
Lathe
Press
Saw
Lathe
Heat Treat
Grinder A B
Lathe
Press
Saw
Lathe 9

15. Minimizing Waste: JIT ??? Only produce what’s needed
The opposite of “Just In Case” philosophy
Ideal lot size is one
Minimize transit time
Frequent small deliveries
???
Pro’s
Minimal inventory
Less space
More visual
Easier to spot quality issues
Con’s
Requires discipline
Requires good problem solving
Suppliers or warehouses must be close
Requires high quality

16. Inventory Hides Problems
Minimizing Waste: JIT
Inventory Hides Problems
Work in
process
queues
(banks)
Change
orders
Engineering design
redundancies
Vendor
delinquencies
Scrap
Design
backlogs
Machine
downtime
Decision
Inspection
Paperwork
backlog 14

17. Minimizing Waste – Quality at the Source
“Do it right the first time”
Call for help
Immediately stop the process and correct it vs. passing it on to inspection or repair
Andon

18. Jidoka

19. Minimizing Waste – Kanban
Signaling device to control flow of material
Cards
Empty containers
Lights
Colored golf balls
Etc

20. Minimizing Waste – Setup Times
Long setup times drive:
Long production runs
Large lots
Long lead times
JIT requires small lots and minimum kanbans
Setup reduction
Focused efforts
Problem solving
Flexible equipment

21. Minimizing Waste – Plant Loading
Heijunka
Suppose we operate a production plant that produces a single product. The schedule of production for this product could be accomplished using either of the two plant loading schedules below.
Not uniform Jan. Units Feb. Units Mar. Units Total
1,200 3,500 4,300 9,000 or
Uniform Jan. Units Feb. Units Mar. Units Total
3,000 3,000 3,000 9,000
How does the uniform loading help save labor costs? 12

22. Minimizing Waste – Focused Factory Networks
These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility)
Coordination
System Integration 7

23. TPS – Respect for People
Level payrolls
Cooperative employee unions
Subcontractor networks
Bottom-up management style
Quality circles (Small Group Problem Solving)
Keiretsu 21

24. TPS – 4 Rules
All work shall be highly specified as to content, sequence, timing, and outcome
Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses
The pathway for every product and service must be simple and direct
Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization 21

25. Performance Measurement
Lean Implementation
Total Quality
Management
Product
Design
Flow
Process
Empowered Workforce
Problem Solving
Performance Measurement
Stable
Schedule
Continual Inventory
Reduction
Kanban
Pull
Involved
Suppliers

26. Summary and Conclusions…
Lean Production is the set of activities that achieves quality production at minimum cost and inventory
The flow of material is pulled through the process by downstream operations
Lean originated with the Toyota Production System and its two philosophies – elimination of waste, and respect for people
CLOSED MITT forms of waste