LEAN MANUFACTURING OVERVIEW

July 2013

1

TYPES OF PRODUCTION BATCH & QUE

2

THE PERFECT FACTORY

3

Defects and the Hidden Factory

4

Shipped on time and customer happy We Made $$$$

Production Material

Ship order CUSTOMER

• No Wasted Time

• No Wasted Money

• No Wasted Resources

• No Wasted Material

90% Customer Quality

Defects and the Hidden Factory

5

Yield After Inspection or Test

.

Scrap

Rework

Hidden Factory

NOT OK

Production Material Inspect First Time Yield

OK

• Wasted Time

• Wasted Money

• Wasted Resources

• Wasted Floor space

66% not 90% Customer Quality

Defining Lean

• “A systematic approach to identifying & ELIMINATING WASTE

(NON-VALUE-ADDED ACTIVITIES) through the implementation

of CUSTOMER PULL SYSTEM, CONTINUOUS ONE PIECE FLOW

AND IDENTIFYING AND IMPROVING PROCESS BOTTLENECKS.”

Lean has been defined in many different ways.

Leading to Leading to Eliminate

Waste Reduced Cycle

Times Increased Capacity

HURRY UP AND WAIT

7

Definition of Value Added

Value Added

Any activity that is adding value to the part and the customer is paying for. Example: any process where you are doing something

to the part (cutting, welding, riveting, bending)

Non-Value Added

Any activity that does not add Value to the part. Example: moving parts from one area to another, reworking parts, set-up/change-overs, repairs

Lean = Eliminating the Wastes

Value Added

Typically 95% of all lead time is non-value added

1. Overproduction

2. Waiting

3. Transportation

4. Non-Value Added Processing

5. Excess Inventory/Material

6. Defects

7. Excess Motion

8. Underutilized People

Non-Value Added

5%

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1. Producing Defects (SCRAP)

2. Reworking parts due to process problems

3. OVER-TIME to make up lost time (In-efficiencies)

4. Time Waiting i.e. Set-Up/Change-Over time, delivery of supplier materials

5. Wasting time walking around and looking for tools, material, people,

6. Moving parts from one area to another & staging them into (WIP)

7. Carrying excess Inventories of parts more than needed ($$ tied up)

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Not utilizing operators to their full potential

Over relying on a select few while others

are Inadequately trained Operators are unable to rotate and help

each other out to balance the work-load High overtime, increased pressure/stress

Benefits of cross functionally trained workers

• Workers can do each others work, help out when someone is sick, on holidays, quit

• Workers help improve bottleneck operations by helping out each other

• Variety in work making it more full-filling

• Training new workers

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Basic Lean Concepts

Pull Systems

• Production scheduling method used to link downstream activities to upstream activities

• Nothing is produced until the customer signals a need

• Work begins when Customer Order is received

• Material is ordered based upon a demand signal (KANBAN) based on usage

• Avoids overproduction, work backlog, and defects

TAKT TIME

• TAKT TIME

– Beat of the Drum in production

CUSTOMER DEMAND

TIME TAKT TIME =

QUESTION ON CYCLE TIME

40 min

20 min 25 min

15 min

30 min

1

5 4

3

2

•What is the process cycle time? •What is the process bottleneck?

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