Lean Management

Introduction Day 1

M.Sc. Bui Minh Duc

Berlin 13.02.2017

Technische Universitt Berlin

Department of Machine Tools and Factory Management IWF TU Berlin
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 1
Contact person

M.Sc. Bui Minh Duc

Tel.: +49 (0)30 / 314-75835
Room PTZ 329

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 2
Lean Management

Objectives of the Lean Management

What is Lean Management?
Basic theory of simulation
Why is Lean important?
Lean principals and tools
Get familiar with Lean thinking and culture
A case-study: practice Lean principals and tools in factoties

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 3
Agenda

Schedule for the Lean Management Class

Organization of the exercises/evaluation
Introduction into value in customers perspective.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 4
Agenda

Schedule for the Lean Management Class

Organization of the exercises/evaluation
Introduction into value in customers perspective.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 5
Schedule Group 1 and 2
Monday Tuesday Wednesday Thursday Friday
Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2
Joint Lecture & Discussion Lecture & Exercise Lecture & Practical Lecture & Practical Lecture & Practical
- Introduction Discussion - First VSM Discussion workshop Discussion workshop Discussion workshop
- Lean principals - 7+ types of analysis - Process - Product - Material - Creating - 5S Workshop - Near Optium
waste of current state analysis variants control production - CIP solution
08:45 -
- Value Stream - Bacis - Product mix - Kanban flow - Simulation of
10:15
Mapping (VSM) (THAO) calculation simulation - Material - Simulation of flexible line
- Push vs. Pull - Flexibility supply production
(DUC) - Logistics flow
Morning

Practical Working Group Exercise Lecture & Practical Lecture & Practical Lecture & Practical Lecture &
workshop & Dicussion - First VSM Discussion workshop Discussion workshop Discussion workshop Discussion
- Current state - Development analysis - 7+ types of - Creating - Process - Kanban - Material - Near Optium - 5S Workshop
simulation of Lean of current state waste production analysis calculation control solution - CIP
10:30 -
- Observation Production - Value Stream flow - Bacis - Simulation of - Kanban - Simulation of
12:00
Mapping (VSM) - Simulation of calculation Material supply - Material flexible line
- Push vs. Pull production and logistics supply
flow - Logistics

lunch break
Working Group Practical Practical Working Group English class Working Group Practical Factory visit
& Dicussion workshop workshop & Dicussion & Dicussion workshop
- Development - Current state - Product Lean tools Lean tools - Kanban
of Lean simulation variants (Adon, Jidoka, (Adon, Jidoka, calculation
Afternoon

01:00 -
Production - Observation - Product mix heijunka,triz,S heijunka,triz,S - Simulation of
02:15
simulation MED, poka MED, poka Material supply
- Flexibility yoke) yoke) and logistics
(DUC)

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 6
Agenda

Schedule for the Lean Management Class

Organization of the exercises/evaluation
Introduction into value in customers perspective.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 7
Exercises and evaluation

VSM Resource Material supply Bonus Mid-term Examination

calculation calculation essay (in 1 hour)
% in total 15% 10% 10% 10% 15% 40%
Type Team of 2-4 Team of 2-4 Team of 2-4 Individual Individua Individual
Submit Wednesday Friday (3/3) Monday (6/3) Every day Monday l Friday (10/3)
(1/3) (6/3)

[%] Note
50 % 4.0
55 % 3.7
60 % 3.3
65 % 3.0
70 % 2.7
75 % 2.3
80 % 2.0
85 % 1.7
90 % 1.3

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 8
Agenda

Schedule for the Lean Management Class

Organization of the exercises/evaluation
Introduction
into value in customers perspective.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 9
What will we learn?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 10
Well know problems from the production

in day to day situations.

Technische Universitt Berlin
Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 11
What are we talking about?

Your customer requires 6R only:

Right product
Right amount
Right place
Right time
Right quality
Right price

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 12
What does it mean to us?

Target: The Factory from the spot of value creation

to customer satisfaction.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 13
What will we learn?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 14
Toyotas development

TMS Toyota Management System TDS Toyota Development System

Total TPS Total Toyota Production System TMSS Toyota Marketing & Sales System

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 15
We have two subject areas

Process Logistics

Process oriented line design Consumption driven material flow:

Link value adding Available what is needed
Speed Available when needed
Stable and flexible processes Replenishment by visual signal
High quality For all materials
Manufacture only on customer demand!

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 16
Understanding Toyota, not just copying
Start with Kaikaku, go on with Kaizen!

Kaikaku
Step-by-step but radical reorganization of the
manufacturing and support organization to
flow and pull logic
Anchor deep understanding of lean in
workforce through education (= information)
+ learning by doing (= learning process)
Include all employees of all levels and
organizational areas
Kaizen
Punctual optimization of performance in all
areas of the company by eliminating waste
Kaizen as permanent changing process
Setting-up a lean culture by consistency in
leading and doing/action according to lean
standards on all enterprise levels

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 17
Were looking for simple solutions

But simple solutions are stigmatized But important scientific findings are based on
Many people think about LEAN, that it is simple formulas

Not enough
Trivial
Playful
E = mc2
Provincial
Narrow-minded
Low-budget

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 18
The base are the Toyota (Lean) principles and their tools
Principles Content Tools
Process and customer Flow in customer takt analyze and improve all processes Value stream mapping &
orientation according to customer needs and world class standards design

Pull Produce only what's demanded by customers Kanban, milk run

Zero defects Avoid defects by preventing them and by In Process 5S, Poka Yoke, Jidoka,
Quality Controls TPM
Flexibility Ensure flexibility in terms of lot size, quantities, variance, Mixed model line, SMED
capacity and time flexible employees
CIP/Kaizen Eliminate und avoid waste and place the thinking of Training, workshops and
continuous improvements into the corporate culture Kaizen organization
Visualization & Indicate states and deviations by visual systems IPK, metrics boards,
transparency traffic light, Andon
Personal responsibility Sponsor employees by increasing their responsibility -> Cells organization and
reasonable system support and common sense self controlling
Integration Eliminate -> optimize interfaces all over the organization Use tools at all
and the supply chain interfaces

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 19
From looking to all levels of hierarchy

The journey towards a lean enterprise (Lean Production and Business system) is far more than the
application of single Kaizen methods and tools.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 20
 to different tasks.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 21
Typical scenario: Functional separation is dominating the organization

The complexity of a company is exponential increasing by the numbers of interfaces within the
organization due to separation of company functions.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 22
3 points of contact at the value stream to the customer

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 23
By all that

Macro view
Step 4: Complexity in the supply chain
Step 3: Complexity in the factory
Step 2: Complexity in the department
Step 1: Complexity in the cell
Step 0: Complexity on/around the machine

Micro view

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 24
By all that

We rather tend to handle complexity

or to optimize value-adding and bring
it to perfection, instead of leaving out
all of the non-value-adding and to
simplify the process.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 25
The 7+ kinds of waste in manufacturing (Mfg.) and office areas

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 26
Transportation and inventory

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 27
Overproduction

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 28
Floor spare?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 29
Rework

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 30
Waiting, waiting, waiting of materials

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 31
 and once again waiting of employees

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 32
Inefficient processes

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 33
Value adding processes often look like this?!

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 34
Separation of value adding and non-value adding

The target is to link all value adding processes and to drop out all non value adding activities.

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 35
Alternative: Flow manufacturing

Release customer order

Sequencing of orders
Work
Test
Rework
Completed

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 36
Traditional way of manufacturing: Batch Production

There are 4 processes: Sawing, Drilling, Painting, Assembly. Each process takes 2 mins

Sawing Drilling Painting Assembly

How long it takes to produce 5 chairs?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 37
Traditional way of manufacturing: Batch Production

There are 4 processes: Sawing, Drilling, Painting, Assembly. Each process takes 2 mins

Sawing Drilling Painting Assembly

How long it takes to produce 5 chairs?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 38
Traditional way of manufacturing: Batch Production

There are 4 processes: Sawing, Drilling, Painting, Assembly. Each process takes 2 mins

Sawing Drilling Painting Assembly

How long it takes to produce 5 chairs?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 39
Traditional way of manufacturing: Batch Production

There are 4 processes: Sawing, Drilling, Painting, Assembly. Each process takes 2 mins

Sawing Drilling Painting Assembly

How long it takes to produce 5 chairs?

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 40
Traditional way of manufacturing: Batch Production

Batch processing and transfer to the next process step increases the individual lead time.
In each stage, each product has to wait for the others to be finished.

Sawing Drilling Painting Assembly

Work content per process: = 2 min

Manufacturing lead time: 5x2x4 = 40 min

Result: After 40 Minutes 5 chairs has been finished

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 41
Technische Universitt Berlin
Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 42
Lean way of manufacturing: One-Piece-Flow

The continuous transfer of single products reduces the waiting time and therefore the lead
time.

Work content per process: = 2 min

Manufacturing lead time: = 2 min per process
fter 8 minutes, well get the 1st chair, then every 2 minutes the next one

Result: After 16 minutes, 5 chairs have been finished

Improvement: Manufacturing lead time reduced by 24 minutes

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 43
Conclusion

If you want to have something,

what you never had,
you have to do something,
what you never did!

(Nossrat Peseschkian)

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 44
Implementation tools for flow

To develop a continuous product flow, several tool are used to define how the manufacturing
needs to be set up.

Process synchronization
Value stream mapping
Product matrix
Sequence of events
Operational method sheets
Takt time calculation
Resources calculation
Product mix calculation
In Process Kanban
Value stream design

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 45
Value Stream Map (current state)

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 46
Value Stream Design (future state) Kaikaku

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 47
A real example

Technische Universitt Berlin

Department of Machine Tools and Factory Management
Univ.-Prof. Dr.-Ing. Gnther Seliger Page 48