02 introduction to lean thinking

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Industrial Modernisation CentreIndustrial Modernisation Centre

Introduction to lean thinking

April 2010


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Customer

Low CostHigh Quality

Availability

Flexibility

Your Company

ProfitRepeat Business

Growth

Cash !!

Value !!

1- Who Wants What?

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S

ome Profit

Bigger Profit

Price to

Sell

Cost to

Produce 1

2

3

1

2

3

Cost + Profit = Price

2- Price Increase

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Some Profit

Bigger Profit2

3

1 1

2

3

Price - Profit = Cost

Price to

Sell

Cost to

Produce

3- Cost Reduction

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4- So, What is Lean ?

Lean is the part of meat thatconsists principally of lean

muscle.

( fat-free)

Lean Thinking is an approach that

aims to get rid of all the wastes

(fats) that burden the system.

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Time (Shorter)

Customer

OrderProduct

Shipment

Customer

OrderProduct

Shipment

Time

Business as Usual

Lean Manufacturing

Waste

Waste

4.1. Lean Manufacturing

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4.2. Eliminating the 8 Kinds of Waste in Production Environment

Overproduction

Producing too much orproducing too soon

Transportation

Any nonessentialtransport is waste

Intellect

Any failure to fully utilizethe time and talents of

people

Processing

Over-processing (toomany steps/touches or

false deadlines)

Rework

Any repair at any timein the process

Waiting

Waiting on parts,waiting for a machine

to finish cycle

Motion

Any motion that doesnot add value

Inventory

Any more than theminimum needed to

get the job done

Work = Value-added + Waste

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Waste Example - Spaghetti Diagram

Materials move 760 meters to reach a final productMaterials move 760 meters to reach a final product

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Waste Example - Inventory level

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VSM Comments

Process Cycle Efficiency = VA time Lead Time

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Value Stream Map - Video

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Line up all of the steps that truly create value sothey occur in a rapid sequence

Require that every step in the process be:

Capable right every time (SIX Sigma)

Available always able to run (TPM)

Adequate with capacity to avoid bottlenecks (right-sized tools)

4.4. Create Flow

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Station CStation A

Station B

Batch & Queue

Workcell

Continuous flow

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Flow Vs. Batch and Queue


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Film 1 (Film 1.flv)

Flow Vs. Batch and Queue - Video


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Through lead time compression & correct valuespecification, let customers get exactly whats

wanted exactly when its wanted: For the short term: Smooth pull loops to reduce inventory

For the near term: Make-to-order with rapid response time

For the long term: Diagnostics and prognostics in a stable

relationship to take out the surprises for consumers andproducers?

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4.5. Let Customer Pull (External Customer)


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Value should be Pulled through the system.

Value should be produced: When the next worker needs it

In the amount the next worker needs it

Where the next worker needs it.

Promotes: Higher quality

Lower costs (material and facilities)

Increased responsiveness to problem

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4.5. Let Customer Pull (Internal Customer)


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4.6. 5S - Definition


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4.6. 5S - Implementation

SAFTEY

Make a habit of maintainingestablished procedures

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3

2

4

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5s.

Cellular Manufacturing.

Kaizen.

Kanban and Pull system

Mistake Proofing. Policy Deployment.

Continuous Improvement.

SMED, Quick Changeover.

Standardized Work.

Supermarket. TPM.

Value Stream Mapping.

Visual Management.

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4.7. Adapted Lean Tools in The Industrial Community


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4.8. Lean Tools Deployment


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4.9. Traditional Vs. Lean

Item Traditional Lean

1- Tact Time No tact time Work to tact time

2- InventoryLarge No-standard

Inventory

Small Standard inventory

(eventually one-piece)

3- Work Flow Isolated islands Flow production

4- Push or Pull Push scheduling Pull scheduling

5- EquipmentLarger, faster and special

equipment

Even paced equipment

synchronized with tact time

6- Set-up Changes Less frequent More frequent

7- OperatorsOne person per machine

- Single skill operator

One person for many machines -

Multiple skill operator

8- Advance Production Allowed NOT allowed

9- Quality ControlQuality control-grouping,

sampling inspection

No/minimum inspection, Process

control


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DELL Corporation

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Lean Life Example


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Eagle life example

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Why change?!!


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Th y u I deed

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02 introduction to lean thinking

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