Going LeanGoing LeanAn Introduction to Lean

Principles

Purpose

• Introduce Lean Manufacturing

• Define waste and value

• Communicate the types of waste

• Introduce basic “lean tools”

• Agree on a path forward

What is Lean Manufacturing?

• The relentless identification and elimination of waste (non-value added activities and resources) that get in the way of providing customers exactly what they need when they need it

• Optimizing the flow of value in our Value Stream to match customer demand

How Will Lean Help Us?

• Reduce Lead Time to our customers by eliminating waste from our system

• See things differently than we do today

• Optimally utilize resources while meeting our customer’s needs

• Enhance our process flow

• Improve quality and lower costs

What is Waste?

• Consuming more resources than are necessary to produce the goods, or service, that the customer wants

• Pure Waste: Actions that could be stopped without effecting the customer

• Incidental Waste: Actions that need to be done based on how the current system operates but do not add value

Pure Waste

IncidentalWasteValue

Waste – The Simple Part …

Being Able to See IT!

The Real Challenge …

Knowing How to ProperlyRemove IT!

Types of Waste We’d See In Our Cell

Over ProductionInventoryWaitingTransportationMotionOver ProcessingQuality / DefectsPeople’s Skills

• Overproduction - Supplying the process with more than is needed to meet order requirements, sooner and faster than it is needed, causes almost all other types of waste

• Inventory – Raw materials, work-in-progress, finished goods; extra inventory is used to hide other wastes

Inventory Hides Waste

Sea of Inventory

Long Transportation

CommunicationProblems

MachineDowntime

EmployeeAvailability

Poor Scheduling

QualityProblems

LineImbalance

LongSetups

Supplierissues

HouseKeeping

EmployeeAvailability

Finished Goods

Raw Materials

Reducing Inventory Uncovers Opportunities to Improve

Waiting Watching machines run or cycle, waiting for parts, instructions, approval, information, maintenance or decisions

Transportation Double or triple handling, moving in and out of storage areas and warehouses, poor layouts, poor housekeeping

Motion Walking without working; searching for tools, materials or information; reaching, bending or unnecessary motion due to poor housekeeping or workplace layout

Process Repair or rework steps, extra setup steps, over-specification of the process, extra processing steps

Defects Defective or scrap materials,

OOS control processes, low yield, incorrect schedules, engineering documents or information

People’s Skills A source of labor only, not seen as true process experts; do not involve in finding solutions

5 Lean Principles make up the 5 Lean Principles make up the Lean Strategy for Our CellLean Strategy for Our Cell

1. Specify value

2. Map the flow of value

3. Make value flow

4. Pull from the customer

5. Seek perfection

1. Specify Value for Our Customer(s)

• Providing the right product, at the right time, in the right quantity, at the right quality, at the right price, in the right place in accordance to the customers requirements

• Usually value added steps lead to a transformation of the material from one form to another which gets the product closer to the customer’s specifications

A value stream is all of the value-adding activity AND all of the non-value adding activity (pure waste and incidental waste) required to provide a product/service to a customer

2. Map the Flow of Value in Our Cell

Process A Process B Process CRawMaterial

CustomerFinished Product

Value Stream

3. Make Value Flow in Our Cell

Continuous Flow - Make One - Move One

Batch Processing How long to make a pack of 10 units?

How long to make a pack of 10 units?

4. Establish Pull from Our Cell’s Customer(s)

Okay!One more

please!

CustomerSupplier

5. Seek Perfection in Our Cell5. Seek Perfection in Our Cell

PDCA

Lean Tools

Hoshin PlanA planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision.

• Enables everyone to ‘see’ where we’re going and our plans to get there

• Build plan and strategies as a team

• Shared responsibility for getting results

VisionKey Result AreasKey Result MeasuresKey Strategies

5SFocuses on effective workplace organization and standardization it allows us to easily spot variation from standard operating conditions.

• Cleaner, safer work environment

• Organized, user friendly workstations

• Open up space and reduce clutter

Total Productive MaintenanceShifts basic maintenance work to operators, freeing up maintenance personnel to work on planned maintenance or equipment improvements.

• Workers have ownership of the machine & process

• Maximize equipment effectiveness

• Increase employee skill set

• Reduced manufacturing costs through continuous monitoring

ImproveReliability &Operability

DefectDetection &

Removal

DefectPrevention

DefectAwareness

ImprovedEquipment

Effectiveness

MaintenanceSkills

Development

AutonomousMaintenance

PlannedMaintenance

MaintenanceReliability

Visual FactoryVisual elements on the production floor allow everyone to “know the score” and they make out of standard situations immediately obvious.

• Enables everyone to ‘see’ how we’re performing

• Helps highlight problems, or variances from standard

• Encourages employee involvement and open discussions

Workforce FlexibilityThe ability of the workforce to “flex” to other jobs as demand fluctuates within the system, and the efforts the organization undertakes to ensure this occurs.

• Improve worker skill set

• Maximize organizational flexibility

• Focused training and development plans

• Allow the ability to flex to our customer’s demands

Standardized WorkA step-by-step description of work activity used every time by everyone to safely complete a task based on best known practices.

• Operators involved in determining best practices

• Minimizes and highlights process variability

• Everyone learns best practice

1

3

2

4

5

6

Proper PPE must be worn at all times.

Standard Work Sheet

KanbanA visual system that easily communicates the need for parts to be either replenished or consumed. Designed to improve material flow and control inventory levels.

• Workers produce product based on actual usage

• Minimizes inventory by tying production to consumptionX X X

(make one move one)

Quick ChangeoverChangeover is defined as the time elapsed between when the last good piece of product A comes off and the first good piece of product B starts.

• Improve repeatability through standardized processes

• Improved flow of material

• Reduction in inventory

• Standardize expectations

Zero Defect QualityThe principle that defects are prevented by controlling the performance of a process so that it cannot produce defects through mistake proofing and failsafe methods.

• Improved quality and customer satisfaction

• Solutions at the source – employees aid in problem solving and in developing creative, more effective corrective actions

KaizenA system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made.

• Continuous small improvements

• Changes are implemented quickly

• Everyone gets involved

Recap

Value-Added Activities Transforms or shapes material or information Customer wants it Done right the first time

Incidental Waste No value created but required by current technology

No value created but required by current thinking

No value created but required by process limitations

No value created but required by current process

Pure Waste Consume resources but creates no value for the customer Could be stopped and it would be invisible to the customer

Value Defined

Resource distribution

Opportunity for improvement by reducing waste and creating additional value

Opportunity for improvement by reducing waste and creating additional value

Lean Emphasis

Value WasteInitialProcess

Value WasteGeneralProcess

Reduction

Waste and Value Both Decrease

Waste Only Reduction Value Waste

Target & Reduce Waste Maintain Value

Value MaintainedResources Decrease

ValueCreation Value Waste

Apply Resources to Create More Value

Value IncreasedResources Focused

How Do We Succeed with Lean?• As a team – open minded, supportive• Understand the concepts and accept all aspects of

the lean process, including those that may cause undesirable effect in the short term

• Aligned focus from the top to the bottom• Effectively use lean methodologies• Carefully plan implementation to remove waste• Allocate the proper resources• Becoming truly lean is a journey and will not be

made without some discomfort

Expected Lean ResultsCostsDefects (99%)Inventory (10 fold)Lead Time (90%)Machine DowntimeSpace (50%)

Capacity Customer ResponsivenessEfficiencyEmployee SatisfactionFlexibility – Demand Flux

Attitude is Critical

“If you think you can or you think you can’t. You’re Right.” Henry Ford