Lean Manufacturing

Chapter 15pp. 438-466

June 29, 2012

Lean Manufacturing

• Definition– Elimination– Waste– Continuous improvement

• 3 pronged approach– “Relentless” focus on quality– Eliminate waste– Involve employees

Lean Manufacturing

• “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.”

Lean Manufacturing

• Key principles– Value– Value stream

• “mapping”

– Flow– Pull– Perfection

• culture

Lean Manufacturing

• Benefits– Lead time reduction– WIP reduction

1 day

2 days1 day

14 days

45 minutes

60 minutes

30 minutes

Lean Manufacturing

• Benefits– Lead time reduction– WIP reduction– Quality improvement– Space utilization – Greater customer satisfaction

“A systematic approach to identifying and eliminating….”

• Value stream mapping

“A systematic approach to identifying and eliminating….”

• Value stream mapping

“…waste (non-value added activities) …”

• 8 wastes of lean– Overproduction– Inventory– Waiting– Defects– Extra processing– Excessive motion– Transportation– Underutilized employees

“…waste (non-value added activities) …”

• 8 wastes of lean– Overproduction– Inventory– Transportation– Excessive motion– Extra processing– Defects– Waiting– Underutilized talents

“non-value added activities”

• Value-added activities– Transforms or shapes material or information– Customer wants it– Done right the first time

• Machining• Assembly• Painting• Sewing

“non-value added activities”

• Non-value added activities– Consume resources but create no value for customers– Could be stopped and it would be invisible to the

customer

“…through continuous improvement …”• kaizen• Satisfying the customer• People = most important resource• Quality at the source

“…through continuous improvement …”• 5S’s

– Sort– Stabilize (set in order)– Shine– Standardize– Sustain

(Stabilize)

Stability

Stability

Stability

Stability

• Traditional layout• Cellular layout

Stability

Lathe Mill Mill InspectDrill

Drill

TestDrillPack

1 2 3 4 5

10 9 8 7

6

27 Seconds 27

Seconds

Inspect

27 Seconds

(Stabilize)

“…by flowing the product at the pull of the customer…”

• Just-in time– Pull system (vs push)– Quick changeover (Set-up Reduction)

“…by flowing the product at the pull of the customer…”

• Pull system– Production based on actual consumption– Small lots– Low inventories– Management by sight– Better communication

Pull System

• Kanban

Pull System

• Kanban• Supermarket

Quick Changeover (Set-up Reduction)

Single minute exchange of dies (SMED)

Quality at the Source

• Source inspection• Means to inspect• Samples or established standards• Process documentation• Mistake proofing

Quality at the Source

• Source inspection• Means• Samples or established standards• Process documentation• Mistake proofing• Andon

Standardization

• Standardized work

Involvement

• Teams– with rotation of highly specified jobs

• Cross trained/multi-skilled employees– can work many operations within a cell and

operations in different cells

Stability

Lathe Mill Mill InspectDrill

Drill

TestDrillPack

1 2 3 4 5

10 9 8 7

6

27 Seconds 27

Seconds

Inspect

27 Seconds

Involvement

• Teams– with rotation of highly specified jobs

• Cross trained/multi-skilled employees– can work many operations within a cell and

operations in different cells• Continuous improvement philosophy• Process quality, not inspection• Use of participatory decision making

Why do it?

• Reduced inventory• Improved quality• Lower costs• Shorter lead time• Increased productivity• Greater flexibility• Greater customer satisfaction

Last comment

• Lean and Six Sigma• “hand and glove”