Lean ManufacturingLean Manufacturing€¦ · Lean Life Cycle Mass production works as long as firms...

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Lean Manufacturing Lean Manufacturing “Although still in its early stages, a revolution in production management is already taking place in the United States. Japan must not be allowed to fall behind.” Shigeo Shingo to the JMA, 1990 Lecture 4 - PTTE 434, Quality Assurance, Management and Organization Jim Wixson, Instructor Overview of Lean Manufacturing

Transcript of Lean ManufacturingLean Manufacturing€¦ · Lean Life Cycle Mass production works as long as firms...

Page 1: Lean ManufacturingLean Manufacturing€¦ · Lean Life Cycle Mass production works as long as firms • (A) have superior product/process technology and/or, • (B) lead a high growth

Lean ManufacturingLean Manufacturing

“Although still in its early stages, a revolution in production management is already taking place in the United States.Japan must not be allowed to fall behind.” Shigeo Shingoto the JMA, 1990

Lecture 4 - PTTE 434, Quality Assurance, Management and Organization

Jim Wixson, Instructor

Overview of Lean Manufacturing

Page 2: Lean ManufacturingLean Manufacturing€¦ · Lean Life Cycle Mass production works as long as firms • (A) have superior product/process technology and/or, • (B) lead a high growth

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

PTTE 434: Quality Assurance Organization & Management

Outline– Lean Manufacturing

•Origins of Lean Manufacturing & Definitions

• Wastes in Manufacturing

•Discuss Lean Building Blocks:

•Standardized work

•5S System

•Visual Controls

•Plant Layout

•Teams

•Quick Changeover

•Batch Reduction

•Point of Use Storage (POUS)

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

The Evolution of Lean Manufacturing

and Lean Sigma – TBM Consulting

Click Here to See Click Here to See ““Evolution of Evolution of

Lean ManufacturingLean Manufacturing””

Click Here to See Click Here to See ““Lean SigmaLean Sigma””

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Key Points from Movie

� Fundamentals of Lean learned from the Japanese at Toyota

� Achieve productivity improvement in core business process.

� Better job rewards

� New thinking

� Measurement and powerful root cause analysis tools

� One piece flow – only way to have “waste speak to us.”

� Reduced inventory space – cell manufacturing

� Simplify, Simplify, Simplify!!!

� Retrained workers on other products

� Reduced inventory, reduced cost of quality, improved productivity

� Increased market share

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

PTTE 434: Quality Assurance Organization & Management

Outline-Lean Manufacturing (continued)

•Discuss Lean Building Blocks:

•Quality at the Source

•Pull/Kanban

•Cellular/Flow

•Total Productive Maintenance (TPM)

•Implementation

•Barriers to Improvement

•Keys to Success

•Benefits of Lean

•Conclusion

•Additional Resources

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Recommended Readings

� Lean Thinking, by Jim Womack

� Becoming Lean, by Jeffrey Liker

� The Machine That Changed the World, by Jim Womack and Daniel T. Jones

� The Goal, by Eli Goldratt

� World Class Manufacturing: The Next Decade, by Richard Schonberger

� Other books/material can be found on the LEI.com or ProductivityInc.com

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Objectives:

1. Know the difference between a push systems and pull system

2. Realize the importance of work standardization

3. Be able to identify manufacturing system wastes

4. Know relevant terminology; JIT, kaizen, pull, kanban,

etc.

5. Understand workplace organization and visual

manufacturing tools, i.e. (5S)

6. Understand and be able to apply value stream mapping

concepts

7. Understand the importance of setup reduction and batch size reduction

Understand the basics of lean manufacturing

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Objectives:

� Understand the benefits of point of use storage

� Understand total productive maintenance concepts and how to begin implementation of autonomous maintenance

� Understand pull systems & kanbans

� Be able to calculate takt times

� Understand manufacturing cell design, balancing and loading

� Be aware of current lean manufacturing efforts in industry

� Understand the roles of employees and managers

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The Past vs. NOW

� High unit volume, less variety

� High quality

Quality lost due to people, poor work ethic

Some defects acceptable

Higher quality means higher costs

Quality comes from inspection

Suppliers are adversaries

Quality is a function of manufacturing

� Delivery & service important

� Employees do what they’re told

The Past NOW

� Buyers market - international competition

� Flexibility required due to variety

� Higher quality

Low quality caused by management & systems

Zero defects is the goal

Higher quality means higher profits

Cannot inspect quality in

Suppliers are members of the team

Quality is everyone's job

� Delivery & service vital

� Employees want influence

� Maximize Asset utilization

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Values - Employee’s Role

NEW

Permission to be wrong

Conceptual

Productive

Creative

Communicative

Assertive

Educated

Posting of performance

Wit, humor

A vital problem solver

Experiment

Paid by skills

Never be satisfied

Innovative

OLD

Permission to be right

Rote

Orderly

Unimaginative

Quiet

Obedient

Trained

Be hidden

Somber

A commodity

Don’t make waves

Paid by position

Don’t rock the boat

Stable

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

OLD

Hold power

Authority figure

Go on hunch

Avoid blame

Quota set by manager

An obstacle to change

Holder of knowledge

Do

Status quo

Central control

Demand compliance

Boss knows best

Territory is everything

Restrict

Values -Manager’s Role

NEW

Give power

Role model

Get hard data

No excuses, no blame

Common goal - customer

Remove obstacles

Teacher

Delegate - follow up

Experimental

Decentralize wherever possible

Teach participation

Boss listens best

Territory is irrelevant

Cross train, enhance

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

OLD

Prescribed product

Treat like an account

Outsider

Win - who cares

Reactive contact

Special requests -ROI

Current sale

Remote

In the dark

On their own

Ridiculed

Tolerated

Values - Customers

NEW

Accommodate needs

Treat like a person

partner

Win-win

Proactive contact

Ok, if it doesn’t hurt other cust.

Lifetime value

Engaged

Informed

Supported

Respected

Enjoyed

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

OLD

Standardize

Focus - keep busy

Manager does stats

Automate anything

Rule by seat of pants

Price first

Quality inspectors

Quality costs

Buy new equipment

Productivity thru technology

Rigid

Push

Ignore setup time

Accept cycle time

Values - Production Process

NEW

Customize

Focus - value added

Stats controlled by line

Automate non-value added

Measure what you want to occur

Quality first

Build in quality

Quality is free

Improve equipment first

Productivity thru process

Flexible

Pull

Minimize setup time

Reduce cycle time

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Origins of Lean

Henry Ford, Ohno/Shingo & Deming;

Lean is Market Driven

Balanced Assembly Line

Group Technology - functional or process layout versus product or “Family of Parts” flow Layout

Toyota Production System

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

The Importance of a Vision

An idea that Ford Motor Company could build

a small, strong, simple automobile at lowest

cost, and pay high wages in its making.

First Model T Produced October 1, 1908

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Ford Invents an Industry!

� Leadership & Vision

� Standardization of Work

� Continuous Improvement

� Material Flow

� Employee Development?

� 1908 - First Model T

� 1915 - The One Millionth Car

� 1921 - The Five Millionth Car

� 1924 - The Ten Millionth Car

� By 1926:

� 52 Different Businesses

� 88 Operating Plants Worldwide

� 200,000 Employees

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Shortening the Production Cycle

One of the most noteworthy accomplishments in keeping the price of Ford products low is the gradual shortening of the production cycle. The longer an article is in the process of manufacture and the more it is moved about, the greater its ultimate cost.

Henry Ford, 1926

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Ford Production Cycle - 1926

MONDAY

7:00 PM Ore boat docks at the River Rouge plant

TUESDAY

10:55 AM Ore reduced to foundry iron 16 hours later

12:55 PM Cylinder block is cast

5:05 PM 58 machining operations on casting in 55 minutes

6:00 PM Motor assembly takes an average of 97 minutes

7:45 PM Finished motor loaded on railcars for the assembly plant.

WEDNESDAY

8:00 AM 4-hour assembly time at standardized assembly plant

12:00 PM Dealer takes delivery of car

41 HOURS !

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Ford - Highland Park

250,000 Vehicles Per Year, One Model, No Options250,000 Vehicles Per Year, One Model, No Options

RunningBoardsRunningRunningBoardsBoards

CommutatorsCommutatorsCommutators Front AxlesFront AxlesFront Axles

RadiatorsRadiatorsRadiators Gas tanksGas tanksGas tanks Rear AxlesRear AxlesRear Axles

AssemblyAssembly

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Deming’s Management Principles

♦ FOCUS ON THE CUSTOMER and develop an all embracing concept of quality

♦ Managers must understand variation and its causes

♦ Managers must use collaborative work teams

♦ The CEO must become the leader as well as an

agent of change

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Deming: Improved Quality Leads To:

♦ Lower cost

♦ Which leads to productivity improvement

♦Which leads to market share growth

♦Which leads to a growing business

♦Which leads to more jobs

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

The Deming Cycle

1

23

4

PLAN - Plan a

change or a test

aimed at

improvement

DO - Carry it out

(preferably on a

small scale)

CHECK - study

the results. What

did we learn?

ACT *

* ACT - adopt the change

- or abandon it

- or run through the cycle again, possibly under

different environmental conditions.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Taiichi Ohno & Shigeo Shingo

� Fathers of the Toyota Production System saw the genius in Ford’s system of mass production but challenged the idea of large lot production

� Toyota, and Japan in general, is ruled by diversified small lot production

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Value-Added Time: MinutesTime in Plant: Weeks

ORDER CASH

ReceivingWarehouse

Kitting

Springs DiodesLEDs

Storage

Repair

Testing

ShippingWarehouse

Ship

Material

MASS PRODUCTION

Large Lots, Pushed Ahead, “Island” Mentality

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

� As firms grow, they:

� Spread their operations

� Obtain high-volume equipment & focus on utilization

� Analyze processes in terms of labor content & outsource and/or move to low labor-cost locations

� Eventually they arrive where they live today in…

Mass Production

James Womack; Dearborn Address 2001

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Assembly Components Piece Parts Process

Spaghetti World

James Womack; Dearborn Address 2001

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Life Cycle

� Mass production works as long as firms

• (A) have superior product/process technology and/or,

• (B) lead a high growth industry (e.g., Lucent & Dell), and/or

• (C) have no lean competitors!

� Eventually, as firms mature, they face the need to return to lean!

� The problem is that they have created firm boundaries, organizations, skills, assets, technologies, and management systems that are only suited for mass!

James Womack; Dearborn Address 2001

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

What is Lean Manufacturing?

1. Waste reduction

2. Commitment to perfect quality

3. Employee enfranchisement

4. Focus on value added

5. Focus on fast turnaround & on

time delivery

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Manufacturing – NIST, FORD

FORD - a lean, flexible and disciplined common

production system that is defined by a set

of principles and processes that employs

groups of capable and empowered people

who are learning and working safely

together to produce and deliver products

that consistently exceed customers'

expectations in quality, cost and time.

NIST - A systematic approach

to identifying and eliminating waste

through continuous improvement

by flowing the product

at the pull of the customer

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Manufacturing – Womack &

Jones1. Define value precisely from the perspective of the

end customer in terms of a specific product with specific capabilities offered at a specific price and time.

2. Identify the entire value stream for each product or product family and eliminate waste across three essential activities:

- product definition

- information management

- physical transformation3. Make the remaining value creating steps flow.

4. Design and provide what the customer wants only when the customer wants it.

5. Pursue perfection.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Jim Womack - What It Means to

Think Lean

Click here to View Jim

Womack movie #1Click here to View Jim Click here to View Jim

Womack movie #1Womack movie #1

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Thinking

1. Focus on each product and its value stream, rather than organizations, assets, technologies, and career paths

2. Ask which activities are waste and which truly create value

3. Enhance the value & eliminate the waste to optimize the whole!

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Is Market Driven

Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed. Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death.

It doesn’t matter whether you are a lion or a gazelle—when the sun comes up, you had better be running.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Definition of Value added

Value Added Activities

� Activities that transform the product.

� Activities that develop its form, fit, & function.

� Activities that customers are willing to pay for.

Non-Value Added� Activities that should be eliminated or minimized.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean = Eliminating waste

Typically 95% of Total Lead Time is

Non-Value Added!!!

Total Lead Time

Customer Order Processing

Raw Material Procurement

RM Receiving

RM Storage Machine Setup

Production Inspection Rework Shipping

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Manufacturing’s Deadly Sins

� Overproduction

� Inventory Waste

� Waiting Time

� Transportation Waste

� Processing Waste

� Waste of Motion

� Product Defects

� Underutilized People

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Overproduction

� If you make more product than is required by the next process, make it earlier than is required by the next process, or make product faster than is required by the next process, you overproduce.

� Causes:

� Just-in-case logic & misuse of automation

� Long process set-up

� Unlevel scheduling & unbalanced work load

� Over engineered

� Redundant inspections.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Overproduction

Waste of Overproduction

Extra handling

Extra space

Extra interest charges

Extra machinery

Extra defects

Extra overheadExtra people

Extra paperwork

Extra inventory

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Inventory Waste

� Any supply in excess of a one-piece flow through your manufacturing process

� Causes of excess inventory

� Protects the company from inefficiencies and unexpected problems.

� Product complexity

� Unbalanced workload, unleveled scheduling

� Poor Market forecast

� Unreliable shipments by suppliers

� Misunderstood communications

� Reward system.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Waiting

� Idle time created when waiting for…?

� Causes of Waiting Waste

� Unbalanced work load & un-level scheduling

� Unplanned maintenance

� Long process set-up times

� Misuses of automation

� Upstream quality problem.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Waste of Transportation

� Transporting parts and materials around the plant without adding value

� Causes:� Poor plant layout

� Poor understanding of the process flow for production

� Large batch sizes, long lead times, and large

storage areas.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Processing Waste

� Effort that adds no value to the product or service from the customers’ viewpoint

� Causes:

� Product changes without process changes

� Just-in-case logic

� True customer requirements undefined

� Over processing to accommodate downtime

� Lack of communications & redundant

approvals

� Extra copies/excessive information.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Motion Waste

� Any movement of people or machines without adding value

� Causes:

� Poor people/machine effectiveness

� Inconsistent work methods

� Unfavorable facility or cell layout

� Poor workplace organization and housekeeping

� Extra “busy” movements while waiting.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Defects

� Inspection and repair of material in inventory

� Causes:

� Weak process control

� Poor product & process design

� Unbalanced inventory level

� Deficient planned maintenance

� Inadequate education/training/work instructions

� Misunderstood Customer needs.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

People Waste

� Not using people’s (mental, creative, physical, skill) abilities.

� Causes:

� Management by fear and directive, politics

� Poor hiring practices

� Low or no investment in training

� Low pay, high turn over strategy.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Jim Womack - “This Too Shall

Pass”

Click Here for MovieClick Here for MovieClick Here for Movie

Page 48: Lean ManufacturingLean Manufacturing€¦ · Lean Life Cycle Mass production works as long as firms • (A) have superior product/process technology and/or, • (B) lead a high growth

Building Blocks of Lean

Value

Stream

Mapping

Visual

Controls

The Lean FactoryThe Lean FactoryThe Lean FactoryThe Lean Factory

5S System

Quick Changeover

Teams

Quality @ Source

PULL / Kanban Cellular / Flow TPM

Standardized

Work

Plant

Layout

Batch Reduction

POUS

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Definition of Standardized Work

Operations safely carried out with all tasks organized in the best known sequence and by using the most effective combination of resources:

� Manpower

� Materials

� Methods

� Machinery

� Measurements

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Work Place Organization

A safe, clean, neat, arrangement of the workplace

which provides a specific location for everything, and eliminates anything not required.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Elements of a 5S Program

� Sort - Everything in the work area. Sort through, then sort out. “When in doubt, throw it out!”

� Set In Order - Organize everything that remains.

� Shine - Clean everything; ceilings, walls, floors, equipment, cabinets, desks, tooling, etc.

� Standardize - Make it obvious where things belong, using lines, labels, signs, shadow boxes, shadow

boards, etc.

� Sustain - Create rules, guidelines, cleaning charts, action lists, etc. Use display boards, newsletters, and give recognition to sustain successes.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Visual Controls

Simple signals that provide an immediate

understanding of a situation or condition.

Efficient, self regulating, and worker managed.

� Kan Ban cards

� Color coded dies, tools, pallets

� Lines on the floor to delineate storage

areas, walk ways, work areas, etc.

� Andon lights

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Raw StockRaw StockRaw StockRaw Stock Q CQ CQ CQ C RecRecRecRec ShipShipShipShip

ShearShearShearShear Screw Screw Screw Screw MachineMachineMachineMachine

Q CQ CQ CQ CStampStampStampStamp

AssemblyAssemblyAssemblyAssemblyBrakeBrakeBrakeBrake MillMillMillMillLatheLatheLatheLathe

WeldWeldWeldWeld FinishFinishFinishFinishGrindGrindGrindGrind Parts StockParts StockParts StockParts Stock

DrillDrillDrillDrill

Plant Layout

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

� A Visual Workplace includes:

� Visual Orders

� Visual Standards

� Visual Measures

� Visual Controls

� Work is performed with clarity, precision and confidence. The end of your “No’s”:

� No Wandering

� No Waiting

� No Wondering

� No Detours

� No Extras

� No Injuries

� No Waste

The Visual Workplace

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Value

Stream

Mapping

Visual

Controls

The Lean FactoryThe Lean FactoryThe Lean FactoryThe Lean Factory

5S System

Quick Changeover

Teams

Quality @ Source

PULL / Kanban Cellular / Flow TPM

Standardized

Work

Plant

Layout

Batch Reduction

POUS

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Workforce Practices include:

Teams

� With rotation of highly specified jobs.

Cross trained and multi-skilled employees

� Who can work many operations within a cell and even operations in different cells

Continuous improvement philosophy.

Process quality, not inspection.

Use of participatory decision making

� Quality Control Circles, team-based problem solving, suggestion systems, etc.

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Quick Changeover

• Definition: Changing over a process to produce a different product in the most efficient manner.

• STEPS IN A CHANGEOVER (taken from Shigeo Shingo’s Single Minute Exchange of Dies)

Percent of time of changeover

50%

15%

30%

5%

Preparation, after-process adjustment, checking, return to storage of parts, tools, fixtures, move materials

Removing parts, blades, jigs, etc.; mounting same for next lot, move materials

Machine settings, measurements

Making trial pieces and adjusting

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

10 minutes

10 minutes

• Batch & Queue Processing

10 minutes

ProcessA

ProcessB

ProcessC

Lead Time: 30+ minutes for total order21+ minutes for first piece

12 min. for total order3 min. for first part

ProcessB

ProcessA

ProcessC

• Continuous Flow Processing

Impact of Batch Size Reduction

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Batch Size Reduction

Batch Size Reduction

� The best batch size is one piece flow, or make

one and move one!

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

� Raw material is stored where used

� Works best if vendor relationship permits frequent, on-

time, small shipments

� Simplifies physical inventory tracking, storage, and

handling

Point of Use Storage

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Quality at the Source

� Source Inspection: Operators must not pass poor quality on to the next operation.

� Operators must understand quality and be given the means to verify it.

- Samples or established standards are visible tools that can be used for such purposes.

- Process Documentation defining quality inspection requirements for each work station is needed.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Value

Stream

Mapping

Visual

Controls

The Lean FactoryThe Lean FactoryThe Lean FactoryThe Lean Factory

5S System

Quick Changeover

Teams

Quality @ Source

PULL / Kanban Cellular / Flow TPM

Standardized

Work

Plant

Layout

Batch Reduction

POUS

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63

University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

“Push” Manufacturing

The Traditional Factory/functional layout – A batch process where resources are provided to the consumer based on forecasts or schedules

� Complex schedule and material handling

� Excessive inventory

� Poor communication

� Long lead times

� Large lots

� Specialized workers

Raw StockRaw StockRaw StockRaw Stock Q CQ CQ CQ C ReceReceReceReceivingivingivingiving

ShipShipShipShip

ShearShearShearShearScrew Screw Screw Screw

MachineMachineMachineMachineQ CQ CQ CQ C

StaStaStaStampmpmpmp

AssemblyAssemblyAssemblyAssemblyBrakBrakBrakBrakeeee

MillMillMillMillLathLathLathLath

eeee

WeldWeldWeldWeld FinishFinishFinishFinishGrindGrindGrindGrind Parts StockParts StockParts StockParts Stock

DrillDrillDrillDrill

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Push vs. Pull Systems

� Push system

� resources are provided to the consumer based on forecasts or schedules.

� Pull system

� controlling the flow of resources by replacing only what has been consumed.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Pull System

� A simple, flexible method of controlling & balancing the flow of resources.

� Eliminating waste of handling, storage, expediting, obsolescence, repair, rework, facilities, equipment, excess inventory (work-in-process and finished).

� Pull System consists of:

- Production based on actual consumption

- Small Lots

- Low Inventories

- Management by Sight

- Better Communication

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Pull System Flow Diagram

Information Flow

Kanban Locations

Supplier

RawMat'l

ProcessA

ProcessB

Fin. Goods

ProcessC

Customer

Parts Flow

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Cellular Manufacturing

Linking machines and operators

flexibly together into work cells

to minimize waste

and maximize productivity.

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Building the Cell: 5 step process

Step 1: Group products

Step 2: Measure Demand - Establish Takt Time

Step 3: Review Work Sequence

Step 4: Combine Work to Balance Process

Step 5: Design Cell layout

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Products with similar processing requirements are Products with similar processing requirements are grouped into product familiesgrouped into product families

Step 1: Group productsStep 1: Group products

HarrisHarris

HB2HB2

HB3HB3

HB7HB7

HB4HB4

21D21D

ME1 AOS Cutter DCI Drill Bind Shrink PackME1 AOS Cutter DCI Drill Bind Shrink PackWrapWrap

XX

XX

XX

XX XX

XX

XX

XX

XX

XX XX XX XX

XX

XX

XX

XX

XX

Processing Processing StepsSteps

ProductProduct

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Step 2 -- Establish Takt Time

Takt Time = Demand RateTakt Time = Demand Rate

GOAL: Produce to Demand

= 10.4 Sec/board

1200 Seconds1200 Seconds

115 boards115 boards=

==Work Time AvailableWork Time Available

Number of Units SoldNumber of Units Sold

Cycle Time = Minimum # of PeopleCycle Time = Minimum # of People

Takt timeTakt time

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Step 3: Review Work Sequence

� Observe Sequence of Tasks Each Worker

Performs

� Break Operations into Observable

Elements

� Identify Value Added Versus Non Value

Added Elements and Minimize NVA

� Study Machine Capacity, Lead Times and

Change Over Times

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Step 4 :Combine Work to Balance

Process

0

5

10

15

20

A B C D E

Operation

Unbalanced Line

0

12

34

56

78

910

A B C D E

Operation

Balanced Line

Takt Time = 10 seconds

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Cell Step 5 - Plant Layout Design &

Construct

Design Goals� Flexible layout, Lot size = 1, Point of use storage, Visual

Management

� By product family

� Simplify Flows

� Integrate process operations, materials flow one way

Minimize Materials Handling� Concentrate on value-added motion

� Establish material replenishment procedure

Make use of people 100 percent� Promote visibility, flexibility, ergonomics

� Operators stand for Flexibility

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

HistoricalHistoricalHistoricalHistorical

OptimalOptimalOptimalOptimal

Flexible Layouts for Variable Work

Cycles

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Total Productive Maintenance

(TPM)

� A Systematic approach to eliminate

equipment downtime as a waste factor.

� Enlisting the intelligence and skills of the

people who are MOST familiar with the factory machines: the equipment operators.

� Charting/analyzing equipment performance

to identify root cause of problems, and

implementing permanent corrective actions.

Page 76: Lean ManufacturingLean Manufacturing€¦ · Lean Life Cycle Mass production works as long as firms • (A) have superior product/process technology and/or, • (B) lead a high growth

Continuous Improvement

Value

Stream

Mapping

Visual

Controls

The Lean FactoryThe Lean FactoryThe Lean FactoryThe Lean Factory

5S System

Quick Changeover

Teams

Quality @ Source

PULL / Kanban Cellular / Flow TPM

Standardized

Work

Plant

Layout

Batch Reduction

POUS

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Continuous Improvement (CI)

Old Adage:

“you If always do what you always did, you’ll always get what you always got.”

Competitive Corollary:

“If the other guy gets BETTER, you’re gonna get LESS.”

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Barriers to Improvement

If we all know we need to improve, the

question becomes: why don’t we?

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Keys to CI Success

Prepare and motivate people

– Widespread orientation to CI, quality, training and recruiting workers with appropriate skills

– Create common understanding of need to change to Lean

Employee involvement

– Push decision-making and system development down to the “lowest levels”

– Trained and truly empowered people

Share information and manage expectations

Identify and empower champions, particularly operations managers

– Remove roadblocks (i.e., people, layout, systems)

– Make system both directive yet empowering

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Keys to Success (Continued)

Atmosphere of experimentation

– Tolerating mistakes, patience, etc.

– Willingness to take risks (safety nets)

Installing “enlightened” and realistic performance measures, evaluation, and reward systems

– Do away with rigid performance goals during implementation

– Measure results and not number activities/events

– Tie improvements (long-term) to key macro level performance targets (i.e., inventory turns, quality, delivery, overall cost reductions)

The need to execute pilot projects prior to rolling culture out across organization is also essential (e.g., model lines, kaizen blitzes)

– After early wins in operations, extend across ENTIRE organization

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Implementation Success Factors

�Unyielding leadership

�Strategic vision based on Lean enterprise as part of company strategy

�Observe outside successes and failures

�Ability to question EVERYTHING

�Deep commitment to EXCELLENCE

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Benefits of Lean

Lead Time Reduction

0000 25252525 50505050 75757575 100100100100

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Typical Objections

How should you deal with these objections to Lean?

• “It takes too much discipline.”

• “It takes too long to implement.”

• “My process is too complex; I have to deal with too many uncontrollable variables, like late supplier shipments, sick people, etc.”

• “My process requires a large batch size.”

• “It doesn’t make sense in my industry.”

• “It’s unclear to me how Lean will work with my MRP system.”

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Jim Womack - “Affording Lean”

Click Here for MovieClick Here for MovieClick Here for Movie

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

• A simple, visual approach to:

– Focusing on a “product family”

– Creating a clear picture of current material and information flow associated with that product family

– Identifying Lean tools and techniques that can improve flow and eliminate waste

– Incorporating those ideas in a new picture of how material and information “should” flow for that product group

– Creating an action plan that makes the new picture a reality forthat product family

Value Stream Mapping

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Lean Building Blocks

Quick Changeover

Standardized Work Batch Reduction Teams

Quality at Source

5S System Visual Plant Layout

POUS

Cellular/FlowPull/Kanban TPM

ValueStreamMapping

Continuous Improvement

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University of Idaho, Idaho Falls, ID, Industrial Technology Program, PTTE434, J.R. Wixson - Instructor

Conclusion

• Simple and Visual

• Demand Driven

• Inventory as Needed

• Reduce Non-Value Added

• Small Lot Size

• Minimal Lead Time

• Quality Built-in

• Value Stream Managers

LeanLeanLeanLean TraditionalTraditionalTraditionalTraditional

• Complex

• Forecast Driven

• Excessive Inventory

• Speed Up Value Added Work

• Batch Production

• Long Lead Time

• Quality Inspected-in

• Functional Departments