1. CONTINUAL IMPROVEMENT
LEAN MANUFACTURE
AND
CONTINUAL IMPROVEMENT
By Dr David J Horton
Copyright© 2011 Beta Management Systems - All Rights Reserved

2. The Need for Continual Improvement
The need to reduce costs

3. CONTINUAL IMPROVEMENT
THE CUSTOMER WANTS:
ONLY what is needed
AS much as is needed
WHEN it is needed
ANYTHING MORE IS WASTE

4. What we need to do: 100% right first time
The right cost that affords the company a reasonable profit
100% on time

5. What is lean Manufacturing
AIM
Lean production is aimed at the elimination of waste in every area of production including workshop management
GOAL
To incorporate less human effort, less inventory & less space
To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

6. Lean Manufacturing Objectives
Lower the cost of production by streamlining the process
Reduce time spent on “NON VALUE ADDING” activities
Focus on “VALUE ADDING “ activities
Eliminate all forms of waste from the process
Understand and move towards the concept of “ZERO”
Zero defects
Zero inventory
Zero delay
Zero downtime
Aim:

7. Lean Manufacturing Objectives
GOAL
To become highly responsive to customer demand while producing top quality products in the most efficient and economical manner possible.

8. Three Divisions of Work
VALUE ADDED:
Any process that changes the nature, shape or characteristics of the product, in line with customer requirements.
(Maximise)
WASTE:
All other meaningless,
non essential activities
(Eliminate)
NON VALUE ADDED:
Any work carried out which is necessary under current conditions but does not increase product value (Minimise)

9. Quality Cost Delivery Q C D
The 3 criteria for assessing the production performance of a company:
Quality
Cost
Delivery

10. The 7 Q C D Measures The 7 measures of Quality, Cost and Delivery are:
1. Not Right First Time
2. Delivery Schedule Achievement
3. People Productivity
4. Stock Turns
5. Overall Equipment Effectiveness
6. Value Added per Person
7. Floor Space Utilisation
Primary impact
Secondary impact

11. Process Improvement Spirit
Challenge all fixed ideas
Do it now! No excuses
Get to the root cause by repeatedly asking why? (5 Whys)
Improvement is infinite
Better is not good enough
(Continual Improvement)

12. The first building block of continual improvement
5S Made Easy:
Seiri = Sort
Seiton = Set in Order
Seiso = Shine
Seketsu = Standardise
Shitsuke = Sustain
The first building block of
continual improvement

13. Continuous Improvement
Improvement Activity
Standard Ops.
Visual Management
7 Wastes 5S
The first building block of
continual improvement

14. Workplace Organisation and 5S
Sort
Only have in the area that which is required
Set in Order
A place for everything & everything in its place
Shine
Determine the current condition of a machine or area and maintain it in good clean working order
Standardise
Ensure the current standard is maintained & improved
Sustain
Every employee understands the benefits & contributes to the improvement and endeavours to continually do so

15. 5S – The Aim Sustainable Continual Improvement
To promote a safe working environment
To improve the organisation & standards of the workplace
Create the best environment in which to produce a product
Leads to a more efficient operation of the workshop or office
Sustainable Continual Improvement

16. 5S - Sort

17. Workplace Organisation; 5S
Set in Order
“A place for everything & everything in its place”.
Aim: To Create the best environment in which to produce a product.

18. 5S - Shine (Clean & Check)
Aim: To determine the current condition of a machine or area and maintain it in good working order
How: Manually clean from top down, identify/tag concerns
Safety Critical items
Quality Critical items
Broken items etc.
Equipment:
Rags, Brushes, Brooms, Buff tags, Degreaser, Gloves, Safety Glasses, Photographs

19. 5S - Standardise
Aim: Ensure that the current standard is maintained and improved
How: Make it easy to maintain
Daily checklist and visual standards
Establish clear responsibilities
Audits
Introduce to other operators/shifts
Equipment:
Photographs
Checklist

20. 5S - Sustain
Every employee follows the rules and understands the benefits and contributes to the improvement.

21. Line Before 5S

22. Line After 5S

23. Visual Management

24. Continual Improvement
The 7 Wastes

25. The 7 Wastes The second building block of continual improvement
Improvement Activity
Standard Ops.
Visual management
7 Wastes 5S
The second building block of
continual improvement

26. 7W – 7 Types of Waste Overproduction Inventory Transportation Process
Producing more than the customer demands
Inventory
Stocks of raw material, work in progress and finished goods
Transportation
Unnecessary moving or handling of parts
Process
Excessive movement in process cycle
Idle Time
Operator inactivity during cycle
Operator Motion
Any unnecessary or walking, bending, turning and reaching
Bad Quality
Producing scrap parts & Reworking of parts

27. 7W – The Elimination of Waste
Identify, Categorise and Eliminate all waste and reduce costs
How: Identify bottlenecks and remove them Reduce set-up times (SMED) Reduce downtime (TPM) Reduce – rework Reduce “dead” time Produce and purchase only what is needed (JIT)

28. 7W - Overproduction What? Examples: Why?
Producing more than the customer demands
Examples:
Manufacturing ahead of customers schedule
Over running an unstable process
Why?
Hides manufacturing problems
Creates inventory resulting in ALL other wastes
Consumes resources ahead of schedule

29. (Stocks of raw material, work in progress and finished goods)
7W - Inventory
(Stocks of raw material, work in progress and finished goods)
After
Before

30. 7W - Transportation What? Why? Unnecessary moving or handling of parts
Handling equipment moving with no parts
Raw material batch sizes not matching production batch size
Why?
Transportation does not add value

31. Previously 8 Journeys reduced to 2 Journeys
7W - Transportation
(Unnecessary moving or handling of parts)
Paint Shop can now spray everything on the trailers.
Previously 8 Journeys reduced to 2 Journeys

32. 7W - Process What? Why? Excessive set-up or downtime (SMED)
Inappropriate processes
Excessive movement in process cycle
Why?
Because it does not add value

33. 7W – Idle Time What? Why? Operator inactivity during cycle
Machine inactivity during cycle
Why?
When an operator or machine is idle, no value is being added to the product

34. 7W – Operator Motion What? Why?
Any unnecessary or walking, bending, turning and reaching
Why?
These activities do not add value to the product

35. (Any unnecessary or walking, bending, turning and reaching)
7W – Operator Motion
(Any unnecessary or walking, bending, turning and reaching)
OLD WAY
NEW WAY

36. 7W – Bad Quality What? Why? Producing scrap parts Reworking of parts
It interrupts scheduled production
It consumes resources
Extra overtime to replace bad quality production

37. If you would like to know more about Lean Production systems please contact us for a no obligation discussion
Beta Management Systems
Copyright© 2011 Beta Management Systems - All Rights Reserved