XYZ Company 1

XYZ Company 2 Lean Manufacturing Is a way of life. It is a never ending process…… Its tools need to tailored to meet XYZ Company’s needs. Not a “one size fits all” method.

XYZ Company 3 Lean Manufacturing Defined “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection ” --The MEP Lean Network XYZ CompanyCUSTOMERSUPPLIER WASTE

XYZ Company 4 XYZ Company “Strealthy” growth OURCUSTOMER Satisfaction ASSEMBLYPROCESS Elimination of muda or waste Lean Manufacturing Objectives

XYZ Company 5 The Principles of Lean Manufacturing Focus on Value - Your customer determines value. Eliminate Waste - Eliminate all forms of waste. Build only what customer Pulls Quality, Quality, Quality …. Jim Womack

XYZ Company 6 What is Waste? “Anything that adds Cost to the product without adding Value” “Anything that adds Cost to the product without adding Value” Value = ? Ask yourself – IS MY CUSTOMER PAYING FOR THIS ? Yes – Can I do it faster, better, safer ? No – Why am I doing it ?!

XYZ Company 7 COSTS INCREASES PROFIT DECREASES V V V Cost – Profit Relationship

XYZ Company 8 The Never Ending Cycle….. Low Cost High Quality Availability Value !! XYZ Company OURCUSTOMER

9 How can we make/increase PROFITS ? P XYZ Company’s Cost Selling Price P Increase our selling price P Decrease our cost Decrease our cost !!! - HOW ? XYZ Company’s Cost

XYZ Company 10 7 Forms of Waste Value added Non-value added LEAN = ELIMINATING THE WASTES Value - Add Value added Value - Add

XYZ Company 11 Overproduction Overproduction – Producing faster than consumption Defects Defects – Variations and complexity Non-value added processing Non-value added processing – Lack of standard methods Waiting Waiting – Producing slower than consumption Transportation Transportation – Disconnected operations Excess motion Excess motion – Lack of better processes Excess inventory Excess inventory – Long lead times, …….. 7 Forms of Waste

XYZ Company 12 Bricklaying, through late Nineteenth Century The brick weighs about five pounds (2.3 kg). How much is the worker actually raising and lowering every time he bends over for another brick? Source: Levinson Productivity Systems, P.C.

XYZ Company 13 Bricklaying, after Frank Gilbreth The joke about the underachievers and the light bulb isn't so funny any more. Lesson: waste can, by long habit ("living with it," "working around it") become built into a job. Source: Levinson Productivity Systems, P.C.

XYZ Company 14 Inventory Level INVENTORY – Ship Analogy Raw Material Finished Goods Downtime Poor Training Poor Quality Long Lead Time Poor Communication Poor Layout Poor Scheduling No Standards Poor Housekeeping Supplier Relations Long Setups Scrap GOOD OR BAD ?

XYZ Company 15 Inventory Level Raw Material Finished Goods Downtime Poor Training Poor Quality Long Lead Time Poor Communication Poor Layout Poor Scheduling No Standards Poor Housekeeping Supplier Relations Long Setups Scrap Cannot reduce inventory instantaneously! INVENTORY – Ship Analogy

XYZ Company 16 Inventory Level Raw Material Finished Goods Downtime Poor Communication Poor Layout Poor Scheduling No Standards Poor Housekeeping Supplier Relations Long Setups Scrap Solve problems – Remove rocks before lowering inventory! INVENTORY – Ship Analogy

XYZ Company 17 Identify waste in your cell Counting Sorting Storing Invoices Rework Re-pack Scrap Load/Unload Containment Expedite

XYZ Company 18 Lean Manufacturing Tools Value stream mapping Quality at the source Workplace organization: 5S TPM Visual Management Set-up reduction (SMED) Batch size reduction (one-piece-flow) Cellular manufacturing Standardized work (CYCLE Time) Work balancing (TAKT Time) Production leveling / smoothing / Heijunka Point-of-use systems Kanban Kaizen

XYZ Company 19 Lean Building Blocks Quick Changeover Standardized Work Batch Reduction Teams/Employee Involvement Quality at Source 5S System Visual Systems Plant Layout POUS Cellular/Flow Pull/Kanban TPM Value Stream Mapping Continuous Improvement Source: The MEP Lean Network

XYZ Company 20 Toyota Production System Best Quality - Lowest Cost - Shortest Lead Time Through Eliminating Waste Just in Time “The right part at the right time in the right amount” Continuous Flow Pull System Level Production (Heijunka) Jidoka “Built in Quality” Manual / Automatic Line Stop Labor-Machine Efficiency Error Proofing Visual Control Flexible, Capable, Highly Motivated People Standardized Work Total Productive Maintenance Robust Products & Processes Supplier Involvement Operational Stability