5 Principles of Lean Thinking

The 5 Principles of Lean Thinking

• Define value from the customer perspective

• Identify the value stream• Make the process flow• Pull from the customer• Head toward perfection

Welding ex.•

The 5 Principles of Lean Thinking

• Define value from the customer perspective

– How do we define value?Must pass all three criteria;

1) Customer has to care (willing to pay for)

2) Must change the thing,

3) Done right the first time.

95% Waste•

Seven Forms of WasteAdd Costs but Not Value!

• Transportation• Inventory (Unnecessary)

• Motion (Unnecessary)

• Waiting• Overproduction• Overprocessing (Inappropriate)

• Defects

“I had to go across the street!"

TransportationExcessive movement of people, information or materials.

Courtesy of Vansco Electronics Ltd.

Spaghetti•

“We’re running out of room. We need to expand!"

Unnecessary InventoryExcessive storage and delay of information or products.

Courtesy of Vansco Electronics Ltd.

Dell Costs•

“There’s got to be an easier way!"

Unnecessary MotionAny motion that does not add value

to the product or process.

5S- 90% Fail

“The parts were supposed to be here yesterday!"

WaitingLong periods of inactivity for people, information,

machinery or materials.

Courtesy of Vansco Electronics Ltd.

"What do you mean the design's been changed!"

OverproductionProducing more/sooner than the Internal

or External customer needs.

Courtesy of Vansco Electronics Ltd.

Dell-today•

“Bigger is not necessarily better!"

Inappropriate ProcessingUsing the wrong set of tools, procedures or systems.

Courtesy of Vansco Electronics Ltd.

“Of course it’s taking a long time!"

DefectsFrequent errors in paperwork, product quality problems etc.

Courtesy of Vansco Electronics Ltd.

CAR•

The 5 Principles of Lean Thinking

• Define value from the customer perspective

• Identify the value stream

CustomerSteel

Supplier

1,000per Day

Daily Ordering

PlanningMaterialsOrder Entry

ProductionControl

WeeklyPurchase

Orders

Weekly Schedule (Adjusted

Daily)Daily

Expediting

I

WeeklyDeliveries

2 Coils(3,000 Pcs.)

1,500 Pcs.

1,750 Pcs.

2,000 Pcs.

3 Days 1.5 Days 1.75 Days 2 Days

1 Secs. 10 Secs. 20 Secs. 45 Secs.

10.25 Days

76 Secs.

I I I I

Stamp Press Weld Assembly

Shipping

1 Shift

85% Yield

C/T 1 Sec.

C/O 90 Mins.

C/T 10 Sec.

C/O 30 Mins.

1 Shift

100% Yield

C/T 20 Sec.

1 Shift

90% Yield

C/O 30 Mins.

C/T 45 Sec.

C/O 30 Mins.

1 Shift

100% Yield

2 Days

2,000 Pcs.

The 5 Principles of Lean Thinking

• Define value from the customer perspective

• Identify the value stream• Make the process flow

CustomerSteel

Supplier

1,000per Day

Daily Ordering

PlanningMaterialsOrder Entry

ProductionControl

WeeklyPurchase

Orders

Twice Weekly

Deliveries

2 Coils(2,000 Pcs.)

1,000 Pcs.

1,000 Pcs.

2 Days 1 Day .25 Days 1 Day

1 Secs. 45 Secs.

4.25 Days

46 Secs.

Stamp Shipping

Press, Weld and Assembly Cell

250

250

C/T 45 Sec.

C/O 10 Mins.

1 Shift

99% Yield

1 Shift

95% Yield

C/T 1 Sec.

C/O 15 Mins.

250 Pcs.

Coil

Daily ShipSchedule

How long-PLT

The 5 Principles of Lean Thinking

• Define value from the customer perspective

• Identify the value stream• Make the process flow• Pull from the customer

The 5 Principles of Lean Thinking

• Define value from the customer perspective

• Identify the value stream• Make the process flow• Pull from the customer• Head toward perfection

Then• 1924: Iron ore turned into cash in 41 hrs - Henry

Ford… time included 13 hr. non-value added time floating down the Rouge River in Michigan

• 1943: 17 B-17 Bombers built every day – 1/hour built by area farmers using Lean thinking

“Lean”…

…Just Do It

THANKYOU