September 10
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Lean Management: Lean Management: Fundamentals and ApplicationsFundamentals and Applications
Prepared By:Prepared By:
Ashraf S. Youssef, Ph. D.Ashraf S. Youssef, Ph. D.
July, July, 2424, , 20102010
QA & Ind. Methods ManagerQA & Ind. Methods Manager
S.M. ASQ, L.A. BSI, M. ELI, M. EMSS.M. ASQ, L.A. BSI, M. ELI, M. EMS
Practical Examples
Lean Tools
The Fundamentals of Lean
“The real voyage of discovery consists
not in making new landscapes but in
having new eyes.”g y
–Marcel Proust (1871-1922), Novelist
• A cookie cutter approach to improvement.
Companies must apply the appropriate Lean principles for their industry and specific
LEAN IS NOT
company situation.
• Something that a company does once.Lean is NOT an end point; it is a never
ending improvement process. Lean is a journey.
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“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”
--The MEP Lean Network
DEFINING LEAN
ANOTHER DEFINITION“A manufacturing philosophy that shortens the time line
between the customer order and the shipment by eliminating waste (non-value-adding activities).”
KEY CONCEPTS
• Waste Reduction• Lead Time Reduction• Variation Reduction• Product Flow• Product Flow • Pull of the Customer• Continuous Improvement
Value Stream Focus & Lead TimeWhat is the Lean Manufacturing?Reduction of 7 kinds of waste (MUDA)
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What is the Lean Manufacturing?Reduction of 7 kinds of waste (MUDA)
• Overproduction• Defects • Non-value added processing
Value added
5%
LEAN = ELIMINATING THE WASTES
Non value added processing & Underutilized people
• Waiting • Excess motion• Transportation• Excess inventory
Value Added!!!-is NonTotal Lead Time% of 95Typically
Non-value added
INVENTORY HIDES PROBLEMSREDUCING INVENTORY WITHOUT
SOLVING PROBLEMS
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Benefits of lean manufacturing
• Reduced lead time, delivery time, cycle time and set-up time
• Eliminates waste
• Increases overall customer satisfaction
• Optimized space usage
I d d ti it• Increased productivity
• Improved product quality
• Improved on-time shipments
• Improve employee involvement, morale, and company culture.
• Seeks continuous improvement
Practical Examples
Lean Tools
The Fundamentals of Lean
p
Quick Changeover
Quality at SourceCellular/FlowPull/ Kanban
Continuous Improvement
LEAN BUILDING BLOCKS“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”
--The MEP Lean Network
Standardized Work
Batch Reduction
Teams/Employee Involvement
5S System Visual Systems
Plant Layout
POUS
TPM
ValueStream
Mapping
Lean Tools: Value Stream Mapping
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Lean Tools: Value Stream Mapping Lean Tools: Value Stream Mapping
Simplified Logical Flow Chart
Lean Tools: Value Stream Mapping
Nb of Operations : 17
Nb of Inspections : 4
Nb of Movements/ Day : 21
Meters Walked / Day : 1 836 m
Nb of Operations : 56
Nb of Inspections : 24
Nb of Movements/ Day : 175
Meters Walked / Day : 10 725 m
Lean Tools: Value Stream Mapping
PRODUCTION MANAGER
Project Manager
Supply Chain
Manager Quality Control
INDUSTRIAL METHODS DEPT.May 2008 ~ April 2009
PRODUCTION PLANNER
MODEL 6 PRODUCTION LINE
Design Engineering
CURRENT VALUE STREAM MAP
SUPPLIERS CUSTOMERS
*IGI Req.*Mat'l Req./Issuance*Dlvry.Note*Packing List*P.O.
*Master Plan*Delaying Report
*IGI Report*Defect Rprt.*Final Inspn.*Incomplete Work Report*NCR
*Submittals*BOM*EMR*MMR*ECN
*I.D. Card*In process Inspection*EOM
*Invoicing*Clarification
*Purchase Order
Job Order J201706 (in 3 batches) 2nd BatchNo.of Shop orders 20 6 4 3 6 6 6
Sections # 204 52 51 43 52 52 52Buckets # 365 77 75 68 77 77 77
Metrics Value UOM SO24444Steps w/in Process 75 steps 5 8 14 15 10 5 7 10 1Total Consumed Reg.Time 9527 minutes 96 200 546 6752 1048 300 300 270 15Total Consumed OT 17699 minutes 3218 11263 3218Changeover Time 239 minutes 0 45 19 64 56 30 25 0 0VA time 8315 minutes 0 0 1074 6049 1192 0 0 0 0Traveled time (distance) 368 minutes 193 30 48 0 6 46 0 30 15No.of Workers 20 persons 2 1 2 7 2 1 2 2 1
Production Lead Time (days)days 1 1 5 6 5 1 1 1 0.5 21.5
Total Consumed Time in minminutes 145 275 1916 2583 2164 376 163 150 30 7800
16.3 days
From BOM to In-house
DeliveryReceiving material
QC IGI Bucket Assembly
Bucket Wiring
QC Testing
PackingPanel Line-up
175 days ave.
FAT
Traveled distance 174.1m from
II I I II
WIP is more than
Traveled distance 197m, Fab'n to Panel wiring.
5.8mon.
Industrial Eff iciency = V.A.time/ Total time
I.E. = 22 %
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Lean Tools: Value Stream Mapping
Supply Chain
Manager Quality Control
PRODUCTION MANAGER
FUTURE VALUE STREAM MAPINDUSTRIAL METHODS DEPT.2009 ~ 2010
MODEL 6 PRODUCTION LINE
PRODUCTION PLANNER
Design Engineering
Project Manager
SUPPLIERS CUSTOMERS
*IGI Req.*Mat'l Req./Issuance*Dlvry.Note*Packing List*P.O.
*Master Plan*Delaying Report
*IGI Report*Defect Rprt.*Final Inspn.*Incomplete Work Report*NCR
*Submittals*BOM*EMR*MMR*ECN
*I.D. Card*In process Inspection*EOM
*Invoicing*Clarification
*Purchase Order
____ mon.
1 1 1 1 1
Metrics Value UOMSteps w/in Process 75 steps 5 8 14 15 10 5 7 10 1Total Consumed Reg.Time 9527 minutesTotal Consumed OT 17699 minutesChangeover Time 239 minutesVA time 8315 minutesDistance traveled 203 minutes 71 30 48 0 6.0 7 0 23 18No.of Workers 20 persons 2 1 2 7 2 1 2 2 1
Production Lead Time (days)days 0 0 0 0 0 0 0 0 0 0.0
Total Consumed Time in minminutes 0 0 0 0 0 0 0 0 0 0
0.0 days
FUTURE 336.6 m.
Delivery
New Factory Layout of Product Lines
Distance Traveled MODEL6
CURRENT 538.9 m.
Panel Line-up
QC Testing
FAT PackingReceiving material
QC IGI Bucket Assembly
Bucket Wiring
Traveled distance 92.2m. from
II I I IWIP should
Traveled distance 99.0
Target Industrial Ef f iciency (I.E.) = V.A.time/ Total time
Increase to 10
Cell
Continuous Flow Production
S/E
S/ E
S/E
E F G
S/ E
S/E
DH
CJ
I
K
Lean Tools: Cell Continuous Flow
22
S/ E S/E B
A
K
M
L
FinishedProducts
Mixed Modeling
Multi-function Workers
Multi-skilled Workers
Lean Tools: Versatility & multi-skill
23
Multi-skilled Workers
Shojinka
Lean Tools: One Piece Flow
One Piece Flow
Order For Order
24
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Lean Tools: Kaizen BlitzKaizen.
Process Kaizen.
System Kaizen.
Kaizen Blitz.
25
Typical Examples:Batch to one piece flow.
Total Cycle time reduction Elimination of “x” defect.Standard Operation Improvement.
Pull Signal.
Pull System.
Push System
Lean Tools: Push vs Pull
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Push
Pull
Process B
Process A
Fin. Goods
Raw Matl
Supplier Customer
Process C
PUSH SYSTEMInformation Flow
WIPWIP
Part Flow
Execution - Parts completed to schedule without any downstream considerations
Replenishment - Based on projected demand (forecasts)Shop Floor Control - System, transactions, paperwork
Problems - HiddenReaction to changes and problems - Through system - rescheduling
Linkage - Operations are NOT physically linked
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KANBAN : Kanban = Signal
•Signals when to do work •Signals what work to do•Signals when not to do
work
Kanban signaling device, “kanban,” can be cards, carts, golf balls, marked-off spaces (kanban squares),
etc.
work•Controls inventory
Process B
Process Fi G dRawS li C t
Information Flow
Kanban Locations
Process
PULL SYSTEM
BA Fin. GoodsRaw Matl
Supplier Customer
Part Flow
C
Execution - Parts produced upstream as signaled from the downstream operation or customerReplenishment - Based on consumptionShop Floor Control - Automatic - visibleProblems - Exposed - creates urgency
Reaction to changes and problems - Immediate - on-line and visibleLinkage - Operations ARE physically linked
ProcessProcess
Information Flow
Kanban Locations
Process
PULL SYSTEM
Process B
Process ARaw
MatlSupplier Customer
Part Flow
Process C
Make to Order and Engineer to Order Shops, by definition, operate by PULL since nothing is produced
until an order from the customer is received.
Lean Tools: Kanban System
32
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Lean Tools: 5S System
33
Lean Tools: 5 S System
Lean Tools: Ergonomics
Definition of
Ergonomics.
Ergonomics Zone.
35
Lean Tools: Poka Yoke
What is Poka Yoke?
“Zero Defect”:Source Inspection and the Poka-Yoke System”
Don’t Accept Defects Don’t make defects Don’t pass defects
Remember three rules
By Shigeo Shingo
September 10
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Lean Tools: Poka Yoke
Simple signals that provide an immediate understanding of a situation or condition.
Examples:• Shadow boards for tools, supplies, and safety
equipmentC l di
VISUAL CONTROLS
• Color coding• Lines on the floor to delineate storage areas, walk
ways, work areas, etc.• Marks to indicate correct machine settings• Andon lights• Kanban cards
VISUAL MEASUREMENT Lean Tools: Visual Management
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LEAN MANUFACTURINGOptimizing industrial processes.
SIX SEGMAMastering all processes in order to satisfy the Customer’s needs and to reduce Non Quality
Lean Vs. Six Sigma
Customer’s needs and to reduce Non Quality Costs.
LEAN Target of Lean• Increase the productivity
• Reduce wastes & delays
• Improve shop floor Managerial relationship
6 SIGMATarget of 6 Sigma
• Assure the Quality of process: Customer Satisfaction & Reduction
NQC
• Reduce the process variability
• Improve the control process
Practical Examples
What is a Value Stream Map (VSM)
The Fundamentals of Lean
p
Before and After of 5S system
43
Reduce Transport/Motion
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IMPACT ON SURFACE IMPACT ON PROCESS FLOW
Nb of Movements/ Day : 29Meters Walked / Day : 10,190 m
Nb of Movements/ Day : 8Meters Walked / Day : 495 m
IMPACT ON SAVING
Manpower : 15 peopleProduction lead Time : 17.8 days
Manpower : 9 peopleProduction lead Time : 3 days
Safety issues : 13 issues Safety : Rectified all 13 issuesProcess Time : 29 min Process Time : 24.5 min
IMPACT ON INDUSTRIAL EFFICIENCY
48
IE= 29% in Year 2008 IE= 48% in Year 2009
September 10
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