1. INTRODUCTION TO LEAN MANUFACTURING
Achieving World-Class
Organizational
Results

2. Introduction To Lean WHAT IS LEAN MANUFACTURING?
Lean Manufacturing can be defined as:
"A systematic approach to identifying and eliminating waste
(non-value-added activities)
through continuous improvement by flowing the
product through flow processes based on a signal from the customer."

3. What is Lean Manufacturing?
Introduction To Lean
What is Lean Manufacturing?
Lean manufacturing is the process of analyzing the flow of information and materials in an environment and continuously improving the process to achieve enhanced value for the enterprise.
It uses the building blocks of: standardized work, workplace organization, visual controls, effective plant layout, quality at the source, batch reduction, teams, customer demand-based manufacturing, point-of-use storage, quick changeover, one-piece flow, cellular manufacturing, and Takt time. Lean manufacturing also applies the modern elements and technologies of scrap reduction, process improvements in machining and tool selection as well as material selection, set-up reduction, Just-In-Time, Kaizan, world class manufacturing, synchronous manufacturing, and inventory management.

4. Introduction To Lean CUSTOMER FOCUS
A lean manufacturing enterprise thinks more about
its customers (internal & external)
than it does about running machines
fast to absorb labor and overhead.
Ensuring Internal and External customer input and
feedback assures quality and customer satisfaction,

5. Introduction To Lean FOCUS ON WASTE
The aim of Lean Manufacturing is the elimination of waste
in every area of the organization
including
Customer relations (Sales)
Accounting
Product design
Supplier Networks
Quality HR
Safety
Manufacturing
Engineering .

6. Introduction To Lean LEAN GOALS
Goal is to IMPROVE EVERY PROCESS WITHIN AN ORGANIZATION REQUIRING:
Less human effort
Less materials
Less inventory
Less time
Less space
To become highly responsive to
customer demand while producing top quality
products in the most efficient and economical manner possible

7. Introduction To Lean
In 1945, Toyoda challenged Taiichi Ohno to learn how to compete with US Automakers not on building large volumes of similar models, but many models in low volume.
Ohno was given 3 years to develop a system to achieve this goal.

8. Introduction To Lean
Ohno went to the US and studied Ford mass assembly processes at the Rouge River Plant.
Ohno learned a lot from this experience, but felt Ford stopped short of a better system.
Ohno also studied the supermarket concept of ordering and replenishing stock by a signal system. This resulted in Ohno applying the KANBAN concept to the system he would develop.

9. Introduction To Lean
It took Ohno over 20 years to develop the system that became known as The Toyota Production System (TPS)
It took until the 1974 Oil Crisis before outsiders and others in Japan really took notice of the TPS system that Ohno built and the way it was allowing Toyota to compete when others were faltering.

10. Introduction To Lean

11. Introduction To Lean
Typical use of automation which results in running parts faster and faster but result in increased inventory as downstream cells cannot use the product as fast as the upstream equipment is producing the parts. Increases inventory which is waste

12. Introduction To Lean
Lean Manufacturing came to the US with James Womack’s Book, “ The Machine That Changed The World” in 1990.
Focused on Toyota Production System Concepts and Why Toyota was able to so successful over US Auto Manufacturers.

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14. Introduction To Lean Glossary of Lean Manufacturing Terms
Following is a short list of terms often used in explaining lean manufacturing techniques. Cellular Manufacturing - linking of manual and machine operations into the most efficient combination to maximize value-added activities while minimizing waste. A cell layout is typically U-shaped and utilizes one-piece flow. Kanban System - a pull system that uses color-coded cards attached to parts or part containers to regulate the upstream production and delivery flow. Lean Manufacturing - the process of analyzing the flow of information and materials in a manufacturing environment and continuously improving the process to achieve enhanced value to the customer. Non-Value Added - Any activity that does not add market form or function or is not necessary. (These activities should be eliminated, simplified, reduced or integrated.)

15. Introduction To Lean
Pull System - method of controlling the flow of resources by replacing only what has been consumed. A pull system relies on customer demand. Push System - resources are provided to the consumer based on forecasts or schedules. (Lean manufacturing encourages the elimination of push systems.) Takt Time - customer demand rate. Takt time sets the pace of production to match the rate of customer demand and becomes the heartbeat of any lean system. It is calculated by taking the work time available and dividing it by the number of units sold. Value Added - Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.)

16. Introduction To Lean Cellular Manufacturing Takt Time Kanban
Most waste is invisible. Nor is elimination easy. A set of techniques  that identify and eliminate waste has evolved into "Lean Manufacturing."
Cellular Manufacturing
Takt Time
Kanban
Setup Reduction
Implementing
Kaizen
Group Technology
Small and frequent Lot Sizing

17. Introduction To Lean

18. TOOLS ASSOCIATED WITH LEAN
Introduction to Lean
TOOLS ASSOCIATED WITH LEAN
                                                                                                                          
Transforming small manufacturers to high performance requires that they address

19. Introduction to Lean
                                                                                                                   
Understand the Current State
                                                                                                                          
Start

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21. Present State Value Stream Map
Introduction To Lean
Present State Value Stream Map
                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

22. Future State Value Stream Map
Introduction To Lean
Future State Value Stream Map
                                                                                                                                                                                                                                                                                                                                                                                                                                                   

23. Introduction To Lean
Improve processes (manufacturing; engineering; HR; Safety; Quality; Sales; Accounting) by looking at building “cells” of operations that are small complete factories of their own instead of moving products, materials and information by large lots throughout a large facility or office- Quick response Processing results

24. Introduction To Lean
A work cell is a work unit larger than an individual machine or workstation but smaller than the usual department. Typically, it has 3-12 people and 5-15 workstations in a compact arrangement.
An ideal cell manufactures a narrow range of highly similar products/information/procdesses. Such an ideal cell is self-contained with all necessary equipment and resources.
Cellular layouts organize departments around a product/information/process or a narrow range of similar products. Materials sit in an initial queue when they enter the cell.

25. Introduction To Lean
Once processing begins, they move directly from process to process (or sit in mini-queues). The result is very fast throughput.
Communication is easy since every person is close to the others. This improves quality and coordination. Proximity and a common mission enhance teamwork.
Simplicity is an underlying theme throughout cellular design. Notice the simplicity of material/information/process flow. Simpler Scheduling, supervision and many other elements also reflect this underlying simplicity.

26. Introduction To Lean
This complicated flow becomes a much improves and simpler flow between areas that are adding value

27. Introduction To Lean Key Element Functional Cellular
Inter-department Moves
Many
Few
Travel Distance
500'-4000'
100'-400'
Route Structure
Variable
Fixed
Queues
12-30
3-5
Throughput Time
Weeks
Hours
Response Time
Inventory Turns
3-10
15-60
Supervision
Difficult
Easy
Teamwork
Inhibits
Enhances
Quality Feedback
Days
Minutes
Skill Range
Narrow
Broad
Scheduling
Complex
Simple
Equipment Utilization
85%-95%
70%-80

28. Introduction To Lean An Example
A firm that assembles air-handling products faced high inventories and erratic delivery. They originally assembled units on a traditional line. Long setups and logistics required long production runs. Often, they pulled products from finished goods and rebuilt them for custom orders.
Twelve small (1-3 person) assembly work cells that were always set up and ready. People worked in different cells each day and assembled to customer order. Finished Goods Inventory dropped by 96%. Lead-time was 24 hours. Productivity improved by 20%-30%.

29. Introduction To Lean

30. Introduction To Lean Traditional Manufacturing Lean Scheduling
Forecast - push
Customer Order - pull
Production
Stock
Customer Order
Lead Time
Long
Short
Batch Size
Large - Batch & Queue
Small - Continuous Flow
Inspection
Sampling - by inspectors
100% - at source by workers
Layout
Functional
Product Flow
Empowerment
Low
High
Inventory Turns
Low - <7 turns
High - 10+
Flexibility
COGS
High and Rising
Lower and Decreasing

31. Continuous Improvement Firm (CIF) versus Mass Production (MP) firm
Introduction To Lean
Continuous Improvement Firm (CIF) versus Mass Production (MP) firm
Issues MP
CIF
Strategic advantage
Large volume of homogenous output
Production flexibility
Workforce
Narrow specialization
Multi-skilled
Output based on
Forecasted demand
Real demand
Productivity success factors
Quality of management; its ability to plan and to direct the implementation of those plans
The ability of the entire work force, not just management, to constantly improve both the product and the processes whereby it is produced

32. OLD INDUSTRIAL ECONOMY
ISSUE
OLD INDUSTRIAL ECONOMY
NEW ECONOMY
Economic Development
Steady and linear, quite predictable
Volatile - extremely fast change, sudden downturns, and chaotic - the direction of the changes is not perfectly clear4
Market changes
Slow and linear
Fast and unpredictable
Economy
Supplier-driven
Customer-driven
Lifecycle of Products and Technologies
Long
Short
Key Economy Drivers
Large industrial firms
Innovative firms
Scope of Competition
Local
Global hyper-competition
Competition: Name of the Game
Size: The big eats the small
Speed
Marketing: Name of the Game
Mass marketing
Differentiation

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39. Introduction To Lean
DEFINITION OF WASTE
Essentially, "waste" is anything that the customer is not willing to pay for.

40. Introduction To Lean 8 TYPES OF WASTE TRANSPORTATION WASTED MOTIONS
EXCESS INVENTORY
WAIT TIME
SCRAP OR REWORK
OVER-PROCESSING
OVER-PRODUCTION
UNDERUTILIZED HUMAN RESOURCES.

41. Waste In Organizations
is Usually Disguised as:
Lost Time/Injury Accidents
Scrap/Rework
Machine Setups
Machine Downtime
3rd Party Inspection
Calibrations
Inventory Storage
Counting Inventory
Supplier Lead-times
Product Test
Profit Reductions
Falling Market Share

42. Waste In the Office Is Disguised As
Administrative Waste
Conflicting Department Goals – not everyone on the same page
Traditional Accounting Methods – rewarding people for creating waste, for example; inventory
Poor Product Design – designs which do not include the needs of the internal and external customers
Long Order Processing Time
Searching, Hunting, Looking – for files, orders, invoices, reports, memos etc.
Waiting Time – waiting for batched paperwork, instructions, supervision etc.
Purchasing Reorders, Transactions
Authorizations

43. What Types of Waste Do You Have in Your Facility?
Introduction To Lean
What Types of Waste Do You Have in Your Facility?

44. Eliminating Waste Improves our ability to
provide customer satisfaction,
while reducing our overall costs!

45. - Making earlier than is required by the next process, or
Introduction To Lean
Overproduction
To produce more than is sold or produce it before it is needed.
It is visible as storage of material.
Overproduction means making more than is:
- Required by the next process
- Making earlier than is required by the next process, or
- Making faster than is required by the next process.

46. Introduction To Lean Causes for Over Production Just-in-case logic
Misuse of automation
Long process setup
Unleveled scheduling
Unbalanced work load
Over engineered
Redundant inspections

47. Introduction To Lean WAIT TIME
Any time that is non-value added where the operator must stop producing good parts and wait for: materials; instructions; Team Leader; equipment downtime.

48. Introduction To Lean Causes of Wait Time Waste Unbalanced work load
Unplanned maintenance
Long process set-up times
Misuses of automation
Upstream quality problems
Unleveled scheduling
Poor Communication

49. Introduction To Lean Inventory or Work in Process (WIP) Waste
Represents the material between operations due to large lot production or processes with long cycle times
One of the most frequent types of waste and one of the most expensive to have

50. Introduction To Lean Causes of Excess Inventory
Compensating for inefficiencies and unexpected problems
Product complexity
Unleveled scheduling
Poor market forecast
Unbalanced workload
Unreliable shipments by suppliers
Misunderstood communications
Reward systems

51. Introduction to Lean Over Processing Waste
Doing more processing to the parts than the customer really requires .
Over processing waste can be minimized by asking why a specific processing step is needed and why a specific product is produced.
All unnecessary processing steps should be eliminated.

52. Introduction To Lean Causes for Over Processing Waste
Product changes without process changes
Just-in-case logic
True customer requirements undefined
Over processing to accommodate expected downtime
Lack of communication
Redundant approvals
Extra copies/excessive information

53. Introduction To Lean Transportation Waste
Excess Material Handling either to production area or within production areas.
Does not add any value to the product. Instead of improving the transportation, it should be minimized or eliminated (e.g. forming cells)

54. Introduction To Lean Causes of Transportation Waste Poor plant layout
Poor understanding of the process flow for production
Large batch sizes, long lead times, and large storage areas

55. Introduction To Lean WASTED MOTIONS
Any movement that does not add value.
Examples: looking for tools; walking many steps to get parts or place parts into finished goods; more movements than necessary to perform an operation.

56. Introduction To Lean Causes of Motion Waste
Poor people/machine effectiveness
Inconsistent work methods
Failure to take ergonomic issues into consideration
Poor facility or cell layout
Poor workplace organization and housekeeping
Extra "busy" movements while waiting

57. Introduction To Lean SCRAP OR REWORK
Requires additional resources and time to correct defects before shipping or replace parts that are scrapped due to defects.

58. Introduction To Lean Causes of Scrap or Rework
Little or no process control
Poor quality standards or inconsistent quality standards
Lack of or little planned equipment preventive maintenance
Inadequate education/training/work instructions
Product design (Process cannot produce to quality)
Customer needs not understood

59. Introduction To Lean UNDER-UTILIZED HUMAN RESOURCES
The lack of involvement and participation of the employees in improving operations; quality and safety.

60. Introduction To Lean Causes of People Waste
Old guard thinking, politics, the business culture
Poor hiring practices
Low or no investment in training
Low pay, high turnover strategy
Management thinking it has to “drive” everything instead of involving those who know the process the best

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62. Introduction To Lean SOME BASIC ELEMENTS OF LEAN Elimination of waste
Equipment reliability
Process capability
Continuous flow
Material flows one part at a time
Less inventory required throughout the production process,
raw material, WIP, and finished goods
Defect reduction
Lead time reduction
Error proofing
                     

63. Introduction To Lean Stop the Line quality system Kanban systems
Standard work
Visual management
In station process control
Level production
Takt Time
Quick Changeover
Teamwork
Point of use storage

64. Introduction To Lean The definition of Kaizen is "improvement"
and particularly------"Continuous Improvement"-- slow, incremental but constant
Small-scale improvements are easier and faster.
The risks are lower because they generally have
limited effect.
However, the accumulated effect  is often greater
than a single large improvement

65. Introduction To Lean Takt Time
The desired time between units of production and output, synchronized to customer demand.
The concept carries backward through a process stream. Ideally, every step synchronizes with the final output. Takt Time is fundamental to Lean Manufacturing.

66. Introduction To Lean
Takt time is useful for lean cells  These are typical of the work cells at Toyota and what most people think of when they picture a cell.
Such cells have:
Minimal Setups
A Single Routing
Identical Work Times for All Products
Job-shops and other low-volume, high-variety operations can also use cellular manufacturing, it's just a bit more complicated

67. Introduction To Lean
Small lot production (ideally one piece) is an important component of any Lean strategy.
Lot size directly affects inventory and scheduling
The larger the lot size the more time, materials, money, inventory, lead time, scrap is produced and lead time and scheduling is extended.

68. Introduction To Lean
Batching has an even greater effect on inventory. This chart shows the minimum inventory on hand downstream of the work center. A lot size of 20 units generates an average inventory of 15 units. A lot size of 200 generates an average inventory of 93 units with wide fluctuations. This is a 600% increase!  Actual inventory would be much larger than shown here because of the uncertainty of fluctuations, the difficulty of correcting a stock out and the need for coping with other contingencies.

69. Introduction To Lean
The chart above shows the effect of large and small lots on one particular work center's production. A green line shows daily demand from the customer. It averages 50 units/day and does not vary more than about 20%. The black line shows the actual production if units are made in lots of 20 or about 0.4 days of demand. With this small lot size, required production tracks demand and even smoothes the demand a bit. Output is quite linear.

70. Introduction To Lean
A lot size of 200 units is about 4.0 days of demand. The purple line shows production requirements. Here there are large, intermittent swings between 200 units and 0 units-- very non-linear. 
This kind of pattern complicates scheduling, precludes the use of kanban and generates large inventories. The slightest glitch can cause stock outs

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73. Introduction To Lean
Leaders must lead! Everyone must be involved without exception! Lean applies to the office and shop floor and it “paves the approach” necessary for all other improvements which are the long-term hope for a company’s survival.
“You will achieve the level of excellence that you demonstrate you want to achieve.”
Dupont

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