Week 1 Introduction Lean Manufacturing

Objectives

Appreciation of the historical context for lean thinkingAwareness of the contrast between “mass” and “lean”Ability to define customer value and 7 wastes with respect to application examples Describe the power of kaizen events

Agenda

Supply Chain ManagementHistory of LeanLean vs Traditional ThinkingWaste and ValueSand cone

Literature

What Is The Problem?

History of Lean

Why were Dutch-traders so successful?

History of Lean

Arsenal in Venice

Assembly line (T-Ford)

JIT at Toyota

Lean Manufacturing

Lean Thinking

Muda (Waste)

Muri (Overburden)

Mura (Oneveness)

1

2

3

“Lean Vs.Traditional”0 25 50 75 100

Productivity improvements

WIP Reduction

Quality improvements

Space savings

Lead time reduction

Assignment “Lean Vs.Traditional”

Buying

Business strategy

Sourcing

Supply chain

Sales price

Manufacturing

Planning

Quality

A Buy cheapest in the worldB. Buy to achieve lowest total costA. Economic of scaleB. Flexibility and adaptabilityA. Buy in country where manufacturing is performedB. Support with dual sourcingC. Minimize Number of SuppliersA. Keep supply chain short as possibleB. Supply chain is as strong as its weakest supplierA. Sales price = Cost + ProfitB. Profit = Sales price – CostA. One piece flowB. Batch and queueA. Mix of push and pullB. PushA. Inclusion (built-in by design and methods)B. Inspection after production

It is all about People ….

What is Lean?

•Philosophy•The endless pursuit of waste elimination•Delivers value to the customer, with little or no

unnecessary consumption of resources•Makes work more satisfying (because we spend more time on doing the “right things”).

•Can create more capacity by creating efficiency.

Lean focuses on value- as defined by the customer- by eliminating waste.

What is Value?

Three criteria:1. Transformation of goods or information2. The customer wants it

What, When, Where, How3. Do it right the first time

.

PRINCIPLES OF LEAN-7 WASTES

What are the WASTES of Lean?•Transportation•Inventory•Motion•Waiting•Overproduction•Overprocessing•Defects

PEOPLE

TYPESOF

WASTE

Processing

Motion

Waiting

FixingDefects

Making TooMuch

MovingThings

Inventory

What kind of Waste is displayed here?

Assignment

Observe the video about a grocery. What kinds of waste do you think are eliminated or reduced ?

Batch Processing vs One Piece Flow

Inventory Hides Problems

Poor Quality

UnreliableSupplier

MachineBreakdownInefficient

Layout

BadDesign

LengthySetups

Lower Levels Of Inventory To Expose Problems

Poor Quality

UnreliableSupplier

MachineBreakdownInefficient

Layout

BadDesign

LengthySetups

Sand Cone Model

Assignment

Paradigm Shift (see BB)