Lean Manufacturing

Introduction & Background to Lean

Professor Trevor Spedding

P160

t.spedding@gre.ac.uk

01634 883425

Grahame Baker

P237

g.baker@gre.ac.uk

01634 883302

Sam Berkhauer

P345

BS983@gre.ac.uk

01634 883009

Matt Pepper

P345

M.P.Pepper@gre.ac.uk

01634 883473

Surgery Hours

Open surgery 4pm to 5pm each Friday (after lecture), other times to follow.

Book through

Engweb.gre.ac.uk

How the course works and is assessed

• An introduction to Lean Operations• An introduction to Value Stream Mapping

and Improvement tools to make a difference

• Assessment– Coursework – case study, 50%– Exam – 50%

The road to (and away from) Lean• 1931 – 1940

– Walter Shewhart – First book published on SPC – An engineer at General Motors coins the term ‘Use of automation’

• 1941 – 1950– Production flow of bombers at

Boeing plant 2 and Ford William Run – Shigeo Shingo Identifies that batch production is the main source of delays – Deming first sent to Japan, lectures on waste, is the prime source of quality problems – Juran first goes to Japan – Eiji Toyoda visits Ford’s River Rogue plant –Toyota financial crisis

• 1893 – 1910– F.W. Taylor works as an

consultant engineer, and begins time studies – cars built with interchangeable parts –Beginnings of motion study

• 1911 – 1920– Ford establish the Highland

Park plant using the moving assembly line (special case lean) – Wilson EOQ formula

• 1921 – 1930– Gantt chart – Mass Production –

Establishment of Toyota Motor

• 1951 – 1960– Ohno begins work on the Toyota

Production System is established in Japan – Deming Award – Juran publishes a ‘Handbook of Quality Control’ which also includes Perato analysis, SPC and the cost of quality

• 1961 – 1970– Shigeo Shingo devises and

defines “pokayoke” – Ishikawa devises quality circles & Juran introduces the concept to Europe– TQC

The road to (and away from) Lean• 1971 – 1980

– Mudge ‘Value Engineering: A Systematic Approach’ –Explanation of the ‘non stock production system’ by Shingo –MRP – ‘Group Technology’ is introduced by Burbidge – Apple initiate the theory of ‘Plant Layout & Materials Handling’ –JIT – oil crisis and adoption of TPS elsewhere in Japan

• 1981 – 1985– Deming studies quality and also

introduces the 14 points – 0 inventories – Toyota Production System – Shingo ‘SMED’

• 1996 – 2000– Womack & Jones introduce

‘Lean Thinking’ – Rajan Suri look at Quick ‘Response Manufacturing’ – Gates ‘Business at the Speed of Thought’ proposes ‘The digital Nervous System’.

• In 70’s& 80’s theories came and went – Quality & BPR

• The Lean Strategy is a whole package combines all

• Highlights where to pin point problems

• Therefore drives point through

The road to (and away from) Lean• 1986 – 1990

– Is suggested that ‘Kaizen – is the key to Japans success’ –Goldratt – Baldridge award is established – Boothroyd and Dewhurst commence ‘Design for Assembly’ - TPM – Ohno ‘The Toyota Production System’

• 1991 – 1995– Stuart Pugh introduces ‘Total

Design’ – Womack & Jones “The Machine that Changed the World” – www is established’ – Joseph Pine initiates ‘Mass Customisation’ – AME popularises the ‘Kaizen blitz’

Eiji Toyoda

• President of Toyota

• Instructed his workers to eliminate all waste.

• Waste being “anything other than the minimum amount of equipment, materials, parts, space and time which are absolutely essential to add value to the product”.

• Through a process of trial and error over a period of approximately fifteen years, this was achieved by the man asked to take on the job.

Taiichi Ohno

• Joined Toyota as a weaving loom operator and worked his way up through the company over a 20 year period to the position of assembly shop manager in Toyota's vehicle making operation.

• Given task of improving manufacturing efficiency by Eiji Toyoda

• Defined the now famous 7 muda or wastes

• Encapsulated the methodology that would ensure steady production, flexible resources, quick machine set-up times and most importantly of all, discipline to adhere to the philosophy.

Toyota Production System• Consists of 3 essential elements (plus many others acting

in support):

– 1. Produce only what the market demands.

– 2. Visual aids to highlight where action is needed.

– 3. Small batch sizes.

• The Toyota Production System has been widely recognised for its groundbreaking techniques and is now considered to be the next stage in the development of manufacturing after mass production.

Introduction

• Taken on by Western Industry under the title of Just-In-Time (JIT).

• JIT requires only necessary products to be provided in necessary quantities at necessary times.

• “If you produce what you need when you need it there is no room for error”.

JIT• JIT is an integrated management system that consists

of the following ten elements:

– Flexible resources– Cellular layout– Pull production system– Quick set-up times (to reduce overall lead time)– Kanban production control– Quality at the source (so that nothing of poor quality is passed

on to the next process)– Small-lot production – Total productive maintenance– Uniform production levels (in order to react to changes in

demand)– Supplier networks

Introduction• Womack & Jones

– Vision

Lean Thinking

• Womack & Jones renewed JIT message• Highlighted that Western Industry was slipping• Lean thinking extended to main different

industries, not just the car industry• Mass Production Lean Enterprise• Central theme is Muda• 3 types of activity Basis of value mapping

tools• Important to look at the whole stream to remove

all waste

Lean Thinking

• Need to understand what the customers sees as value – Value Added Activities

• Define the value stream and eliminate waste, what the customer does not wish to pay for – Non Value Added Activities

• Set targets to eliminate waste and strive for perfection

• Set the direction, fix targets and monitor change

Application of Lean

• Where do you start?• Is there a road map to follow?• What does lean thinking involve?• Who will I have to involve?• Is it only applicable to the shop floor?• It is only for manufacturing firms?• What resistances will I meet

Application of Lean

5 Lean Principles

• Fundamentals for the elimination of waste• Guideline for everyone involved

1) SPECIFY VALUE

• CUSTOMERS BUY RESULTS– Won’t pay for transportation, inventory etc.– Only that which changes the product can add value

• Who is the customer?

• Manufacturers’ mistakes

– Economic for manufacture

– Convenient to produce

2) IDENTIFY VALUE STREAM

• Processes from material – final customer• Concept – launch

• Follow experiences of material (and information) not operator

• Can extend to whole supply chain

3) FLOW

• Make value flow• Minimise batch and queue• Work towards 1 piece flow• Use concepts such as JIT, Cellular

Design, TPM, 5S

4) PULL

• Do not overproduce• Only make as is required/needed• Reduces time and waste• Supply chain transparency

– Reduces uncertainty

5) PERFECTION

• Not just about quality• What the customer wants, at the right

time, at the right price and with minimum waste

How to go Lean!

• Simplistic Overview

• Follows the lean principles

• Identifies how to apply

• Methodology used in Value Stream Mapping

Benefits of Lean

• Eliminated waste • Increased employee involvement • Reduced work in progress • Reduced lead time• Better utilisation of staff • Better product • Increased returns • Improved competitive position

Disadvantages of Lean• Implementation can sometimes be complex –

sounds easy, is difficult to do right

• Perceived as a fad

• Lack of management commitment

• Counter Intuitive

• Consultancy myth

Summary

• Lean Critics:– “We’re different”– Goldratt– “Humanist” viewpoint

• Not applicable to everything as yet