1. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 1 LEAN SYSTEMS TOOLS AND PROCEDURES

2. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2 Module Objectives Understand and apply the major tools and procedures that lean systems philosophy draws upon in achieving its objectives Learn how to use such calculations as TAKT time to synchronize and balance flows and to achieve the objectives of one-piece part flow Understand how developments such as improvement can be made to generate real benefits for management and for the value-driven operations management system

3. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 3 Lean Systems’ Objectives Produce only the products (goods or services) that customers want. Produce products only as quickly as customers want to use them. Produce products with perfect quality. Produce in the minimum possible lead times. Produce products with features that customers want, and no others. Produce with no waste of labor, materials, or equipment; designate a purpose for every movement to leave zero idle inventory. Produce with methods that reinforce the occupational development of workers.

4. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 4 Lean Systems Tools and Techniques

5. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 5 Technology Layout - Example Raw Materials SawLathe Mill Heat Treat LathePress Finished Parts Start of production End of production Worker in motion

6. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 6 Focused Factories Plants-within-a-plant Market-focused factory Process-focused factory

7. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 7 Total Productive Maintenance 1.Downtime due to equipment failure 2.Downtime for setups and adjustments 3.Speed losses due to idling and minor stoppages 4.Speed losses due to discrepancies between designates and actual speeds of equipment 5.Defect losses due to process defects that cause scrap and quality problems 6.Defect losses due to reduced yields in the time between machine startup and stable production

8. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 8 TPM Principles 1.Maximize equipment effectiveness 2.Establish a thorough system of preventive maintenance for the entire life span of equipment 3.Implement maintenance programs in all organizational areas 4.Involve every single member of the organization 5.Assign responsibility for preventive maintenance to small, autonomous groups of employees rather than managers

9. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 9 Five Components of TPM 1.Regulating basic conditions 2.Adhering to proper operating procedures 3.Restoring deterioration 4.Improving weaknesses in design 5.Improving operation and maintenance skills

10. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 10 TAKT Time 1.Calculate the Net Available Operating Time (NAOT) 2.Calculate the customer requirements per period 3.Calculate the TAKT time 4.Calculate the operator cycle time and the machine cycle time 5.Adjust the process capacity to achieve balance between the rate of demand and the rate of supply

11. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 11 Kanban (Pull) Scheduling In lean systems, kanban is a name for a system of signals or control cards that govern material movements through an OM system

12. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 12 Kanban - Examples

13. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 13 Pull versus Push Scheduling Kanbans are used to create a pull scheduling system that begins production only when an internal or external customer sends a signal. A push scheduling system directs a worker to produce according to a schedule and to move output to the next worker center in its route when it is completed

14. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 14 Kanbans in Operation Work Center A Status: Idle Withdrawal Kanban Production Kanban Work Center B Status: Busy

15. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 15 Kanbans in Operation Use of Withdrawal Kanban Work Center A Status: Idle Withdrawal Kanban Production Kanban Work Center B Status: Busy Movement of empty bin with withdrawal kanban

16. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 16 Kanbans in Operation Work Center A Status: Busy Withdrawal Kanban Production Kanban Work Center B Status: Busy Empty bin Movement of bin after filled Impact of Production Kanban

17. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 17 Benefits of Kanban Reduced inventory levels Less confusion over sequences of activities Less obsolescence of inventories while in storage Smaller floor-space requirements for storing inventory Reduced lead times Improved quality Higher employee productivity Greater system flexibility

18. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 18 Mixed Model Scheduling - Example

19. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 19 Mixed Model Scheduling - Example

20. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 20 Benefits of Level, Mixed-Model Scheduling Smoother response to market demand Simpler coordination of supply Flatter learning curves Less inventory

21. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 21 Setup Reduction Process teardown time Learning time Process preparation time

22. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 22 Reducing Setup Times Evolve toward lot sizes of one unit Run every part every day Make the first piece right every time Keep setup times to 10 minutes

23. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 23 Setup Times - Example

24. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 24 Techniques to Reduce Setup Times Process flow analysis of setup times Housekeeping Practiced teamwork Single-minute exchange of dies (SMED)

25. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 25 Quality at the Source Jidoka Stop-and-fix/Line-stop systems Andons/Trouble lights

26. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 26 Poka-Yoke Prevents the worker from making an error that leads to a defect before starting a process, or Gives rapid feedback of abnormalities in the process to the worker in time to correct it

27. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 27 The 5-S Program

28. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 5 S’s or Kaizen (Yasuhiro Monden, 1993, Toyota Production System) Seiri - Proper arrangement & organization –separate necessary items from unnecessary items eliminate unnecessary items (clear up space) Seiton - Orderliness. Arrange and identify things organize items Seiso - Clean up. Specify cleanup procedures. cleaning Seiketsu - Cleanliness. Maintain the 3S above standardize Shitsuke - Discipline. Habitually conform training and discipline (i.e., visual control)

29. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 29 Benefits of the 5-S’s An environment that encourages standard work Creation of the conditions for perfect quality Visual control A high value on safety Increased employee satisfaction

30. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 30 Standardization/Simplification Cycle of Improvement Standardize Expose Problems Solve Problems Implement New Methods

31. McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 31 Kaizen/Continuous Improvement Short term Team-oriented Highly focused Action-oriented Verifiable metrics Repetitive