Lean Manufacturing

Why Lean is the key to improved

manufacturing
 What is Lean?
• Fundamental objective:
– To create the most value while consuming the
fewest resources.
How is the objective accomplished?
Lean production is aimed at the elimination of
waste in every area of production including
customer relations, product design, supplier
networks and factory management. Its goal is to
incorporate less human effort, less inventory,
less time to develop products, and less space to
become highly responsive to customer demand
while producing top quality products in the most
efficient and economical manner possible.
 Cycle Time
“ One of the most noteworthy
accomplishments in keeping
the price of Ford products low
is the gradual shortening of
the production cycle. The
longer an article is in the
process of manufacture and
the more it is moved about,
the greater is its ultimate
History of Lean Manufacturing
• Lean Production
• Eiji Toyoda visits Ford’s Rouge plant in 1950 and
returns to Japan to discuss his study with his
production engineer, Taiichi Ohno.
• Mass production techniques are determined to be
inappropriate for Japan because:
1. The market in Japan demanded a large variety
of different vehicles in relatively small
quantities.
2. Unlike the practice in America, treating the
workforce as a variable cost was not possible in
Japan. Management’s right to lay off employees
was severely restricted.
3. The Japanese economy was starved for capital
after the war, so purchasing the latest,
expensive equipment was not an option.
 Intro to Lean Mfg

Source: The Machine That Changed The World, Womack, Jones, and Roos, p. 44.
 Steps to Create a Lean Entreprise
• Specify value in the eyes of the customer
• Identify the value stream and eliminate
waste
• Use a pull system that is triggered by the
customer
• Involve and empower employees
• Continuously improve in the pursuit of
perfection
(from “Lean Thinking” by Womack and Jones)
 Lean is customer focused
• Make what the customer wants, when the
customer wants it, at a price the customer
is willing to pay
 Value stream mapping
• Follow a “product” or “service” from
beginning to end
• Draw a visual representation of every
process in the material & information flow
 Value Stream Mapping
Helps us see where value is created, and
where waste exists:

• A visual approach, by “product family”

• Shows flow of both material & information
• Helps us see which specific Lean tools can be
used to improve flow and eliminate waste
• Two maps will be made: Present State (“how it
is”) & Future State (“how it should be”)
• Will guide the creation of an action plan to
make the “should be” into a reality for that
product family
Value stream map
 Definition of Value-Added
Value-Added
• Any activity that increases the market form or function
of the product or service. (These are things the
customer is willing to pay for.)

Non-Value Added (Waste or muda)

• Any activity or use of resources that does not add
market form or function or is not necessary. (These
activities should be reduced, integrated, simplified, or
eliminated.)
Using the Value Stream Map to
Eliminate Waste
Non-Value-
Added: Hold all
Value-Added waste in a
• Complexity
“CLOSED MITT”
• Labor
• Overproduction
• Space
• Energy
• Defects

• Materials
• Idle Materials
•Transportation
•Time

Typically 95% of all lead time is non-

value-added
 Complexity
The waste of doing things the hard way!
• Excessive paperwork
• Excessive approvals
• Redundancy
Causes of complexity:
• Multiple “patches” on the process w/o fixing the
root cause.
• The “cool” factor of technology or machinery.
• Failing to look for the simple solutions.
 Labor Waste
• Human effort that adds no value
to the product or service from the
customers’ viewpoint.

• Not using people’s mental,

creative, and physical abilities

• Causes of labor waste

– Poor people/machine interface
– Inconsistent work methods
– Unfavorable workstation or cell layout
– Doing unnecessary/unneeded operations
– Poor workplace organization and housekeeping
– Redundant inspections/approvals
 Overproduction
The waste of making too much,
too soon, too fast compared to
the needs of the next process.
• Causes of overproduction
– Just-in-case logic
– Misuse of automation
– Long process setup
– Non-level scheduling
– Unbalanced workload
– Misunderstood communications
– Reward system
– Unreliable shipment by suppliers
 Space Waste
• Using more space than is
required to build the product to
market demand.

• Causes of wasted space

– Poor layout
– Too much inventory, especially work in process
– Poor workplace organization
– Excess equipment
– Oversized equipment
 Energy Waste
• Using more energy (people
and machine) than is
required to build the product
to market demand.

• Causes of wasted energy

– Oversized or poorly maintained equipment
– Idle equipment
– Poor workplace organization
 Defects
• Waste of inspection, repair and
scrapping of material to which
value has already been added.
• Causes of defects
– Weak process control
– Poor quality system
– Deficient planned maintenance
– Inadequate education/training/work instructions
– Product design
– Customer needs not understood
– Defective information
 Materials Waste
Any use of materials in
excess of what is
needed to create value.
•Causes of material
waste
– Not understanding the costs
– Inadequate
education/training/work
instructions
 Idle Materials
The waste of having materials
“sitting around” in process
without any value being
added to them.

• Causes of idle materials

waste
– Unbalanced workload
– Unplanned maintenance
– Long process setup times
– Poor suppliers
 Transportation Waste
• Transporting parts and
materials around the plant,
stacking and un-stacking,
etc.
• Causes of transportation waste
– Poor plant layout
– Poor understanding of
production process flow
 Time Waste
Any activity that consumes
time without adding value,
especially the waste of
waiting (equipment
downtime, waiting for
materials, setup, etc.).
• Causes of wasted time:
• Poor machine maintenance.
• Line imbalances.
• Poor setup discipline.
Lean Building Blocks

Continuous Improvement
Cellular/Flo
Pull/Kanban TPM
w
Quality at P Quick
Source OUS Changeover
T
Standardized Batch
eam
Work Reduction s
Plant Value
5S System Visual Stream
Layout Mapping
 Definition for Kaizen ―
Alternate name for Lean
• Kaizen: leadership philosophy, a
management methodology, and a set
of tools all wrapped into one.
– Indicates long-term betterment
– Makes “little improvements”
– Under Kaizen, the entire facility is orderly
– Visual keys are used to assist in ordering
the workplace
 Visual Controls
• Simple signals that provide an
immediate understanding of a
situation or condition. They are
efficient, self-regulating, and
worker-managed.

• Examples:
– Kanban (stock signal) Cards
– Color-coded dies, tools, pallets
– Lines on the floor to delineate storage areas,
walkways, work areas etc.
– Lights to indicate production status
 Standardized Work
Graphic = Good
• Tools are illustrated
• Parts are pictured
and
numbered
• Spatial relationships
are clearly shown
• Small items enlarged
to show assembly
detail
• All items are either
physically labeled or
identified by number
in
assembly graphic
Standardized Work
 5S - Workplace Organization
A safe, clean, neat, arrangement of
the workplace provides a specific
location for everything, and
eliminates anything not required.

In Lean manufacturing, we refer to

this as 5S.

Examples: EMT’s, fire department, etc.

 Elements of a 5S Program
• Sort—Perform “Sort Through and Sort Out,”
- red tag all unneeded items and move them
out to an established “quarantine” area for
disposition within a predetermined time.
“When in doubt, move it out!”
• Set in Order—Identify the best location for
remaining items and label them. “A place for
everything & everything in its place”.
• Sweep (Systematic Cleaning)—Clean
everything, inside and out. Use visual
sweeps to ensure everything is where it
should be and that junk is not
accumulating.
• Standardize—Create the rules for
maintaining and controlling the first 3 S’s.
Before 5S
Before 5S
After 5S
After 5S
After 5S
Traditional Plant Layout
 Plant Layout for Flow

QC Ship
Raw Stock Rec

Screw QC
Shea Stam Machin
r p e

Lath Drill
Brak Mill e Assembl
e y

Weld Grind Finish Parts

Stock
 Obstacles to Flow
• “Monuments”:
– Unmovable items in the plant, i.e., large pieces of
equipment, structural supports or walls, etc.
– Too expensive to move or replace, yet not in the
proper place to allow good product flow.

• What do we do about
monuments?
– We have to leave them where they are (for now)!
– We do our best to work around them.
– Put in place the best flow given the monuments, but
must always be looking for a better way.
 Impact of Batch Size Reduction
Batch & Queue Processing
Process Process Process
A B C

10 minutes 10 minutes
10 minutes

30+ minutes for total order

Lead
21+ minutes for first piece
Time
Continuous Flow Processing

Process
Process
Process
A B C

12 min. for total order

3 min. for first part
 The Ideal Lot Size
• Ideal lot size is one
• Vel oci ty = The smaller the lot
size, the faster the parts will flow
through the manufacturing process
• Fl exi bi li ty = The smaller the lot
size, the more variety in demand the
system can handle
 More Lean Tools
• Setup Reduction or Quick Changeover
(SMED)
• Point of Use Storage (POUS)
• Quality at the Source
• Visual Inspection
• Pull (including Kanban, Two Bin,
Min/Max)
• Cellular Manufacturing
• Total Productive Maintenance
 Change Over
• STEPS IN A CHANGEOVER:
1. Preparation
2. Remove/Install Tooling
3. Change Machine Settings
4. Make Trial Pieces & Adjust
Setup Reduction or Quick Changeover
• Definition: Minimizing the
time from last good piece of
the current product run to
first good piece of the next
(different)
Percent product run.
of time of changeover
Making trial pieces and
30% adjusting
Preparation, after-process
50% adjustment, checking,
return to storage of parts,
15%
15%
5% tools, fixtures, move
Removing parts, blades,
materials
jigs, etc.; mounting same
for next lot, move materials
Machine settings,
measurements
 Change Over
• Reduce the complexity and increase the efficiency of
setups by standardizing as much of the hardware and
methodology as possible.
No/Low Cost Solution: Use of
Positioning Pins
Positioning
Pins

Positioning
Pins
No/Low Cost Solution:
One-Turn Methods
Pear-Shaped Hole Method

Tighten Here

Attach
and
Remove
Here
Other Functional Clamps
Quick Changeover: Visual Controls
Quick Changeover
Clearly
labeled
cutter size
and style

All regular
router cuts
needed in
this workcell
stored at
router table.
 Standardization & Setup
Reduction

•Common fasteners and fittings – standardize

on the sizes and types.
•Standardized carrier plates, fixtures, shut
heights, etc.
•Standardized procedures along “product
families”, where the product families share
common manufacturing processes &
equipment.
•Share information and communicate “best
practices” across all operations and shifts.
•Monitor & track setup times relative to
 Point of Use Storage (POUS)
• Raw material, components used,
and information is present at
workstation where used

• Works best if vendor relationship

permits frequent, on-time
replenishment and small
shipments

• Simplifies physical inventory

tracking, storage, and handling
 Quality at the Source
• Source Inspection: Operators
must be certain that the product
they are passing to the next
workstation is of acceptable
quality.

• Operators must be given the

means to perform inspection at
the source, before they pass it
along.
 Visual Inspection Example

•Specify what to
inspect
•Clear inspection
criteria
•Don’t overload
operator with
complex content
or criteria
•No missing
screws
•All screws
seated
 Push vs. Pull Systems
• Push System
– Resources are provided to the consumer
based on forecasts or schedules

• Pull System
– A method of controlling the flow of
resources by replacing only what has been
consumed
 Pull System
• Pull system consists of:
– Production based on actual consumption
– Small lots
– Low inventories
– Management by sight
– Better communication
 Pull System Flow
Diagram
Information Flow

Raw Process Process Process Fin. Customer

Suppli Matl A B C Goods
er

Parts Flow

Kanban
Locations
 Pull System Methods
• Kanban:
– A visual signal telling us what we
need to produce.
– Cards, “open spots”, etc.
• Two-bin System:
– Used for commonly produced items,
sub-assemblies.
– When a bin is empty, fill it.
– Ensures there is always material
available while minimizing inventory.
 Cellular Manufacturing
Linking of manual and machine operations
into the most efficient combination to
maximize value-added content while
minimizing waste.
Punch
De-burr
Cut to size

Package Form

Sand

Advantages of cells: Communication and shared labor

Moving to Cellular Manufacturing/Flow Production
Stage 1 Stage 2
Production in Specialized Departments Production in Product Cell
Dept “A” Dept “B” Dept “C”
A Inv B Inv C
A C E D Inv
Inv
A
Inv Inv B Inv Inv Inv Inv Inv
C

A Inv B Inv C

Dept “D”
D
Dept “E” C
E

Inv
D
Inv Inv E Inv A
D
D E
Inv B Inv

Stage 3 Stage 4
Production in Compact Cell with One-Piece Flow Production in Compact Cell with One-Piece Flow
and Separation Man/Machine
E D
E D

C C

A B A B
Total Productive Maintenance (TPM)
• Systematic approach to the
elimination of equipment
downtime as a waste factor

• Enlisting the intelligence and

skills of the people who are
MOST familiar with the factory
machines: the equipment
operators

• Charting/analyzing equipment
performance to identify root
Continuous Improvement
(CI)
Old Adage:
“If you always do what you
always did, you’ll always get
what you always got.”

Competitive Corollary:
“If the other guy gets BETTER,
you’re gonna get LESS.”
 Lean Workforce Practices
• Teams
– With identified goals and measured performance
– With rotation of highly specified jobs

• Cross-trained and multi-skilled

employees
– Who can work many operations within a cell and
operations in different cells

• Continuous improvement
philosophy

• Process quality, not inspection

• Use of participatory decision-
Implementation Success Factors
• Unyielding leadership
• Strategic vision based on Lean
enterprise as part of company
strategy

• Observe outside successes and

failures

• Ability to question EVERYTHING

• Deep commitment to EXCELLENCE
• Consistency
Comparison of Traditional vs. Lean
Traditional Lean
• Complex • Simple and
• Forecast Driven Visual
• Excessive • Demand Driven
Inventory • Inventory as
• Speed Up Value- Needed
Added Work • Reduce Non-
• Large Batch Value-Added
Production • Small Lot Size
• Long Lead Time • Minimal Lead
• Quality Time
Inspected-in • Quality Built-in
 Quality of a GOOD Leader
Must Not Must

Flex Blame the

Give up Muscles worker Think of at Go to the Kaizen your
Throw fits least 7 ways Shop Floor Standard Work
Blame the Measure to do better

Show Boat
Empower the Team
Tamper with Intimidate Lead by Example
Cover up the Measure

Hide in the Set goals Have a vision

Celebrate Success
office
Stress out Throw People at Problems

Provide the
Create smoke Observe the process
Communicate
Be clueless right tools
screens Grovel Find the Waste direction
 Mapping the Future State
• Determine Available Time/Demand
• Determine where continuous flow is possible
• Determine what pull systems will be used
• Determine pacemaker operation
• Determine how pacemaker will be
scheduled/leveled
• Determine increment of work released at
pacemaker
• Identify necessary process improvements to
achieve future state flow
Future State Value Stream Map
 Results
Old New
• Production lead time 23.5 days 4.5 days
LEAN
ENTERPRISE

Thank You.
 Places to look for waste
• Over-production
• Waiting time
• Transportation
• Processing
• Inventory
• Motion
• Scrap
Setup Time Drives Batch Size:
The Economic Order Quantities (EOQ) model
determines the most economic lot/batch size for a
production run.

Changeover Cost + Inventory

Carrying Cost

Variabl
e Inventory Carrying Cost
Cost

Changeover Cost

Fixed
Cost EOQ Increasing
Lot/Batch Size