Session 5 – Lean Management and agileManufacturing

2/9/2018

Operations Management

What is Lean?

• Lean manufacturing, as management philosophy, came mostly from theToyota Production System (TPS).

• Lean production or lean manufacturing is a systematic method for theelimination of wastes within a manufacturing process.

• This is to revise or cutting out steps that do not create value in the process

• “Incremental” improvement over time in order to increase efficiency andquality

• Lean manufacturing, as management philosophy, came mostly from theToyota Production System (TPS).

• Lean production or lean manufacturing is a systematic method for theelimination of wastes within a manufacturing process.

• This is to revise or cutting out steps that do not create value in the process

• “Incremental” improvement over time in order to increase efficiency andquality

Guiding principles for lean management include:

1. Defining value from the standpoint of the end customer.2. Identifying each step in a business process and eliminating

those steps that do not create value.3. Making the value-creating steps occur in tight sequence.4. Repeating the first three steps on a continuous basis until

all waste has been eliminated

Elimination of wastes

• Toyota’s view is that the main method of lean is notthe tools, but the reduction of three types of waste:

•Muda - (“non-value-adding work”)•Muri - (“overburden”)•Mura - (“unevenness”)

The (7) seven wastes (Muda) to improve overall customer value.

The Lean Management Tools

• 5S

• Kanban (pull systems)

• Value Stream Mapping

• SMED

• Poka-yoke (error-proofing)

• Elimination of Time Batching

• Total Productive Maintenance

• Mixed Model Processing

• Single Point Scheduling

• Rank Order Clustering

• Multi-process Handling

• Redesigning Working Cells

• Control Charts (for checking mura)

5S has become a fundamental business measure and key driverfor Kaizen. 5s describe ways of workspace organization forachieving the effectiveness and efficiency.There are 5 steps in this approach.

.

Sort: Sort out and separate what is needed and not neededwithin the area.

Set in Order: Arrange items that are needed so that they are readyand easy to use and return them once the task iscompleted.

Shine: Clean the workplace and equipment on a regular basis

Standardize: Revisit the first three of the 5S on a frequent basis

Sustain: Keep to the rules in order to maintain the standard andcontinuously improve every day.

KAIZAN - 5S Framework5S has become a fundamental business measure and key driverfor Kaizen. 5s describe ways of workspace organization forachieving the effectiveness and efficiency.There are 5 steps in this approach.

Kanban• Kanban is a visual signal that's used to trigger an action. It is a

Just-in-Time (JIT) method of inventory control. Kanban issometimes referred to as a "pull system."

• Kanban system was invented In 1952 by, Taiichi Ohno(TOYOTA) as a waste reduction system to improve and maintaina high level of production

• One of the main benefits of Kanban system is to establish anupper limit to the work in progress inventory.

• In manufacturing, Kanban starts with the customer’s order andfollows production downstream.

Kanban cardexample

Six simple rules for KNBAN

• A Later process picks up the number of items indicated by thekanban at the earlier process.

• The Earlier process produces items in the quantity andsequence indicated by the kanban.

• No items are made or transported without a kanban.• Always attach a kanban to the goods.• Defective products are not sent on to the subsequent process.

The result is 100% defect-free goods.• Reducing the number of kanban increases the sensitivity.

Value Stream Mapping (VSM)

• VSM – a powerful method to reduce waste in any process• Value stream mapping is a flowchart method to illustrate,

analyze and improve the steps required to deliver a product orservice.

• VSM reviews the flow of process steps and information fromorigin to delivery to the customer.

• VSM, as with other good visualizations, serves as an effectivetool for communication, collaboration and even culturechange.

Value Stream Mapping (VSM) - an example

SMED -Example

https://youtu.be/kc2QJmod-64

Changing allfour tires in1.92 seconds.

Single-minute exchange of die (SMED)

• SMED is one of the many lean production methods for reducingwaste in a manufacturing process.

• It provides a rapid and efficient way of converting amanufacturing process from running the current product torunning the next product.

• It is a process of reducing changeover (setup) time by classifyingelements as internal or external to a machine’s operating time

• Example : Toyota engineers on a method that reduced a four-hour Changeover on a thousand ton press to less than threeminutes.

Poka-yoke (error-proofing)

• Errors and defects???

• Error-proofing refers to the implementation of fail-safemechanisms to prevent a process from producing defects.

• Error-proofing becomes a method 100% inspection at thesource rather than down the line.

• There are (3) three basic categories of error - proofing:• Warnings• Automatic shutdown• Auto correction

Elimination of Time Batching• Time batching is a simple time-management productivity

technique that allows you to take advantage of your fullconcentration by grouping a bunch of similar activitiestogether and doing them all at the same time.

• An example. Imagine you like to use some time each day tomanage your spending. To do this, you need to collect thebills of the day, turn on your home computer every time.What about the setting up time for each entry?

• Time batching is a simple time-management productivitytechnique that allows you to take advantage of your fullconcentration by grouping a bunch of similar activitiestogether and doing them all at the same time.

Total Productive Maintenance (TPM)

• TPM is a maintenance program which involves a newly definedconcept for maintaining plants and equipment.

• Down time for maintenance is scheduled as a part of themanufacturing day and, in some cases, as an integral part of themanufacturing process.

TPM was introduced to achieve the following objectives:

• Avoid wastage in a quickly changing economic environment.• Producing goods without reducing product quality.• Reduce cost.• Produce a low batch quantity at the earliest possible time.• Goods send to the customers must be non defective.

TPM Objectives

• Achieve Zero Defects, Zero Breakdown and Zeroaccidents in all functional areas of the organization.

• Involve people in all levels of organization.

• Form different teams to reduce defects and SelfMaintenance

The differences between TQM and TPM

Direct benefits of TPM

• Increase productivity and OPE ( Overall Plant Efficiency ) by1.5 or 2 times.

• Rectify customer complaints.• Reduce the manufacturing cost by 30%.• Satisfy the customers needs by 100 % ( Delivering the right

quantity at the right time, in the required quality. )• Reduce accidents.• Follow pollution control measures.

Agile Manufacturing

•What is Agile manufacturing?

Agile manufacturing is a term applied to an organization thathas created the processes, tools, and training to enable it torespond quickly to customer needs and market changes whilestill controlling costs and quality.

•What is Agile manufacturing?

Agile manufacturing is a term applied to an organization thathas created the processes, tools, and training to enable it torespond quickly to customer needs and market changes whilestill controlling costs and quality.

Why is agile manufacturing an effective strategy?

• Consumers like instant satisfaction. For example if you haveordered a product with overnight shipping…waiting in eageranticipation?

• Consumers like choices . They prefer to get a product exactly asthey want it…without compromise.

• Consumers are unpredictable. Their interests shift and move inunpredictable ways.

There are four key elements for agilemanufacturing:

• Modular Product Design ( Effective SCM)• Information Technology (automating the rapid dissemination of

information throughout the company to enable lightning fastresponse to orders- Ex: Dell computers)

• Corporate Partners (creating virtual short-term alliances withother companies that enable improved time-to-market forselected product segments)

• Knowledge Culture (investing in employee training to achieve aculture that supports rapid change and ongoing adaptation)

How Agile manufacturing relationship to leanManagement

• Lean manufacturing is generally considered to be aprecursor to agile. Many lean practices are also enablersfor agile manufacturing.

• For example, manufacturing in small batches, fastchangeovers, and a culture of continuous improvement areall foundations that pave the road to agile manufacturing.