1. Lean Manufacturing Introduction
Prepared By
Value Stream-Improvement

2. Lean Manufacturing Introduction
Agenda
History
What is Lean Manufacturing
Seven Wastes + One
Visual Measures
Benefits of Lean
Appendix
Review agenda

3. History Lean Manufacturing comes from the Toyota Production System
Pioneered by Taiichi Ohno former vice president of Toyota
Reduce cost
Generate capital
Make money
More sales
Remain competitive in growing global market
Culture based on; working in every facet of the value-stream
Lean manufacturing comes from the Toyota Production System
Taiichi Ohno a VP of Toyota claimed that Toyota must;
Reduce cost
Generate capital
Make money
More sales
Remain competitive in a growing global market
That its culture leads to working within every facet of the value-stream

4. What is Lean Manufacturing
ACE
People
MRD
PREFERRED SUPPLIER
The lean manufacturing umbrella encompasses
People
Include the ACE (Achieving Competitive Excellence) tools and MRD (Market Rate of Demand)
To become a preferred supplier
ACE = Achieving Competitive Excellence
MRD = Market Rate of Demand

5. What is Lean Manufacturing
Suppliers
Hamilton
Sundstrand
Customers
Total Value-Stream
Feedback Mechanism
Top-level view of the total value-stream
Customers pull material from Hamilton
Hamilton pulls material from its suppliers
Feedback between customer and supplier
Course corrections

6. What is Lean Manufacturing
CUSTOMER
High - Quality
Least - Cost
On-Time Delivery
Value-Stream
To achieve what customers expect, it requires empowered teams to…
Identify and eliminate waste
Study value-stream and simplify
Understand EH&S issues and achieve excellent improvements
Provide high quality, least cost, and on-time deliveries
Customer focus
Excellent - EH&S
Simplification of Value-Stream
Systematic Elimination of All Waste
Employee Empowerment (Teams)

7. What is Lean Manufacturing
Customers
Expect
On-Time Deliveries
Least Cost
High Quality
Ask “What are three expectation of our customers?” (Get feedback)
On-time deliveries
Least cost
High Quality

8. What is Lean Manufacturing
Doing
wrong
things
right
Effectiveness
directly affect customer
Efficiency
indirectly affect customer
Customer
Satisfaction
Doing wrong things wrong
Unnecessary travel
Writing reports that contain errors - producing hardware with errors
Doing wrong things right
Waiting for approval
Following process without questioning/understanding
Doing right things wrong
Passing on defective work
Providing incomplete information
Doing right things right
Output is accurate, on-time, and valued by customer

9. What is Lean Manufacturing
System requires continuous improvement of the Value-Stream;
Marketing
Engineering
Materials management
Manufacturing process
Supply Chain
Customer service
Efficient and effective organizations with…Least-Cost and Zero-Waste...
Continuous improvement in all areas (example)
Marketing
Engineering
Materials management
Supply chain
Customer service
Efficient and effective organizations with - least-cost and zero-waste

10. What is Lean Manufacturing
“As–Is”
Eliminate
Non–Value
Added
“To-Be”
When redesigning the process;
Eliminate non–value added activities
Increase organizational spans of control
Reduce the number of decision points
Increase yields
Simplify and streamline

11. What is Lean Manufacturing
Traditional Manufacturing
Functional layout
Central Stores
Batch Manufacturing
Low-customer/supplier communication
Material
Turn
Drill
Mill
Customer
Assembly
Stores
Quality
Control
Production 7 8 2 3 1 5 6 4 9
Customer
Assembly
Drill
Turn
Material IN
OUT
Mill
Lean Manufacturing
Process layout
Short Cycle Times
Waste elimination
Visual Controls
Pull System
High-Customer/supplier communication 1 2 3 4 5 6
Traditional manufacturing layout
Functional layout
Central stores
Batch manufacturing
Low-customer/supplier communication
Lean manufacturing
Process layout
Short cycle times
Visual controls
Pull system
High-customer/supplier communication
> No stores
> Quality is process controlled
> Material is pulled via visual controls (kanbans)

12. What is Lean Manufacturing
Push Vs. Pull
Push System
Procuring or producing products in scheduled lot sizes, whether or not the total quantity is required…
Order start triggered by MRP system
Pull System
Procuring or producing products at the customer’s consumption rate…
Order start triggered by empty kanban signal
Push system
Product/material is scheduled in lot sizes, whether or not the total quantity is required
Triggered by MRP
Pull system
Product produced at customer’s consumption rate
Triggered by empty kanban
Example: Relate to how the bread man fills the bread aisle at a grocery store...

13. What is Lean Manufacturing Market Rate of Demand (MRD) Pull Signal) Definitions
Kanban: A trigger signal to produce/deliver parts/material.
Produce kanban: A kanban used to control production of an item
Raw Material kanban: A kanban used to control raw material availability.
Replenishable kanban: A type of kanban that is to be replenished (filled) when a trigger point is reached
(i.e. empty, redline, minimum quantity, etc.)
This type of kanban is typically used for frequently used material or frequently manufactured goods, and end-to-end supply chain products.
Non-replenishable kanban: A type of kanban that is not replenished (filled) when emptied.
This type of kanban is typically used for products with infrequent demand.
Note: The same part can be replenishable for some cells and non- replenishable for other cells within the same plant.

14. Flow lines fed by kanban signals
What is Lean Manufacturing The Vision: End-to-End Supply Chain C u s t o m e r
Sub Assy’s
Cell#1
Cell#2
Cell#4
Cell#3 K b
Shop Cells
PULL
Raw Mat’l
Components K b
Supplier
PULL K b
Assembly
PULL
PULL
PULL
PULL
PULL
PULL
PULL
PULL
Flow lines fed by kanban signals

15. Seven Wastes + One
WASTE = Anything other than what is absolutely essential to Add Value to the Product...
1. Overproduction
2. Delay or waiting for processing
3. Transportation
4. Manufacturing processing waste
5. Excess inventory
6. Waste of motion
7. Shipping defective hardware
Waste = Anything that is not essential in adding-value to the product
Shop
) Overproduction - making more than required
) Delay or waiting for processing - waiting for operation to complete
) Transportation - moving hardware more than what is required
) Mfg. processing waste - producing defective hardware or turn-backs
Excess inventory - more inventory than what’s required
) Waste of motion - excess movements in production
) Shipping defective hardware - quality escapes at customer
Office
) Passing on work that contains errors
) Inefficient business operations
) Cycle time Vs. lead time (Approvals)
) Walking, reaching bending
) Distribution; mail, air/car travel
) Copies, files
) Excess documentation, procedures, work backlogs
> Not utilizing talent/knowledge of people
Not utilizing the talent and knowledge of human resources

16. Seven Wastes + One Customer Feedback Satisfy Customer Needs
Process 1 3
Customer
Process 2
Satisfy Customer Needs
Teams Eliminate Process Waste... “Based on Process Feedback”
In this example
Process 3 provided feedback of a problem from process 2
Process 2 - Team studies process inputs and outputs, then makes changes
So basically the team eliminates process waste…Based on process feedback...

17. Employee Satisfaction Customer Satisfaction
Visual Measures
Employee Satisfaction
Intergration
Communication
Quality
EH&S
Customer Satisfaction
Cost
Delivery
Visual measures
Employee satisfaction
EH&S
Quality
Delivery
Cost
Customer satisfaction
Communication…Communication...
Respect

18. Benefits of Lean Open Communications (Internally - Externally)
Customer Satisfaction
Preferred Supplier - Equals more sales and future work...
Investable Business
Preferred Employer
Eliminate Waste
Create Flexibility - Ability to respond quickly to change with less waste and rework
Open Communications (Internally - Externally)

19. Q & A

20. Appendix

21. Visual Measures - Examples
Employee Satisfaction
5S Level
% Cross-trained
Training hours/employee
Employee survey
360 reviews
Labor turnover%
EH&S
OSHA recordables
Incidence rate
Near miss count
Ergonomic rating
Pound of air emissions
Delivery
Daily deliver performance
Takt time to cycle time performance

22. Visual Measures - Examples
Quality
Cost of quality
First-time-yield
PPM and Escapes
% of Certified suppliers
Warranty % of sales
Cost
Total Cost
Manufacturing overhead rate
Cycle time (days)
Cost reduction/unit
Warranty $
Inventory turns
Overall equipment effectiveness (OEE)
Sales per employee
Customer lead-time
Value-add/Non value-add
Customer Satisfaction
On-Time delivery %
Warranty Claims

23. Improvement Activities
Supply Chain
Management Systems
People Systems
Leadership
Operating Environment
Areas
Review the five areas

24. Improvement Activities - Examples
Leadership
Vision, Values, Beliefs
Balance Scorecard
Product teams manage value-stream
Benchmarking
Policy deployment
People Systems
Skill assessment
Training needs
Career development planning
Mentoring
Management Systems
ACE (Achieving Competitive Excellence)
Value-stream mapping
MRD (Market Rate of Demand)
Capacity planning
Resource allocation
TPM (Total Predictive Maintenance)
Leadership
Management systems
People systems

25. Improvement Activities - Examples
Operating Environment 5S
Visual controls
Value-add analysis
Waste elimination
Group technology
Flexible layout
Cellular manufacturing
Standardization
QCPC
Safety improvements
TPM (Total Predictive Maintenance)
Kaizen
Takt time/Cycle time
Standard work
Pull system
One - piece flow
Establish supermarkets
Kanban
Mix model production
Mistake proofing
Setup reduction
BPM (Business Process Management)
Operating environment - “Not just shop areas”

26. Improvement Activities - Examples
Supply Chain
Supplier reduction
Long-term partnering
Certify suppliers
Internet technologies
Supplier development
Supplier report card
Communication process
Kanban links

27. Supply Chain Activities
Supplier Hierarchy
PARTNER
Selected Suppliers
Sub Tier Sourcing
Co-location
Asset Management
ACTIVE
DEVELOPMENT
Priority
Suppliers
ACE Tools
Lean Mfg/Kaizen/VSI
QUALITY
All
Suppliers
Supplier Report Card
All suppliers
Supplier report card
ASQR01 (Aerospace Supplier Quality Requirements)
ESILK
Priority suppliers
ACE tools
Lean mfg/kaizen/value-stream improvement
HSM9 / UTC QR09.0 (Process Certification Specifications)
Selected suppliers
Sub tire sourcing
Co-location
Asset management

28. Supply Chain Activities
Internet technologies
Supplier Web
Schedule Visibility
Delivery Promises
SDS (Supplier Direct Ship)
KDS (Kanban Direct Ship)
Intellimet
Supplier self-assessment tool
Supplier Report Card
Nonconforming Parts (PPM) Parts Per Million
Escapes
On-Time Performance
Internet technology
Supplier web
Intellimet
Supplier report card