6.

LEAN
1.1 LEAN BASICS
 LEAN
Lean
• Lean is a business approach based on the
fundamental goal of reducing/eliminating
waste and maximizing flow versus
reducing/eliminating variation like Six Sigma.
 LEAN
Lean vs. Six Sigma
Lean Six Sigma

Primary Metric Cycle Time & Waste Defects & Variation

Change Agents Everyone, in Belt experts, with project teams
their natural work teams
Culture Empowerment Top down
Duration Prep work & a 3-5 day event Three months or longer.
 Five Lean Principles LEAN
Value
– Defined from the customer’s perspective
– What the customer is willing to pay for

Value Stream Mapping (Identify the value stream by)

– Understand the process flow in detail

– Understand the information flow in detail
– Actions that add value to the product or process.

Flow (Make the process flow)

– Reduce all forms of Waste
– The objective is continuous flow
– The continuous movement of product, favoring single-piece flow and work cells versus
production lines.

Pull (Pull from the customer)

– Provide only when needed
– Replacing only material that is used and eliminating excessive inventory.

Strive for Perfection

– Continuously pursue improvement
– A relentless elimination of waste on a never-ending basis.
 LEAN
Lean Benefits

Cost Productivity

Defects Customer satisfaction

Cycle time Profit

Lead time Customer responsiveness

DECREASE Capacity
Inventory

INCREASE
Space Quality

Waste! Cash flow

On time delivery
1.1 IDENTIFYING WASTE
 LEAN
What is Value
• The customer must be willing to pay for it
• It must transform the product
• It must be done right the first time
• If you pulled this step, would the customer miss it?

What is Waste
• Waste is anything that does not add value for
the customer.
• Anything your customer is not willing to pay
more for.
 LEAN
8 Types of Waste (Muda in Japanese)
Overproduction
Intellect Producing too much Conveyance
Any failure to fully utilize or too soon (Transportation)
the time and talents of Any conveyance of the
people product is waste
Motion Inventory
Any motion of the Any more than the
worker that does not minimum to get the job
add value done

Correction Waiting
Any repair or rework Waiting on parts,
waiting for information
Processing
Over-processing Process
Variability
1.1 LEAN TOOLS
 Common Lean Tools LEAN
(Used to address Waste)

1. Value Stream Mapping

2. Layout (Cellular Manufacturing)
3. Spaghetti Diagrams
4. 5S
5. Takt Time
6. Standard Work
7. Pull System (Kanban)
8. Batching and Single Piece Flow
9. Poka-Yoke (Mistake Proof)
 LEAN
1. Value Stream Map
– A detailed map that identifies all the activities, both value
added and non-value added, currently required to deliver a
product or service to the customer. It includes the flow of:
» People
» Raw Material (Transactions)
» Parts (Data Needed)
» Products (Value added Transactions)
» Equipment (Method of Transmitting)
» Information
» Engineering (Policy and Procedure)

– The detail also contains estimates of backlog (inventory),

defect rates, lead time, cycle time, etc.
 LEAN
Value Stream Map Example
Weekly Materials Planning Production Daily
Purchase Order Entry
Steel Orders
Control Ordering
Supplier Customer

Weekly
Info Flow
Schedule
(Adjusted
Daily)
Daily
Expediting
Weekly 1,000
Deliveries per Day

Stamp Press Weld Assembly Shipping Process Flow

I I I I I
2 Coils
(3,000 1,500 1,750 2,000 2,000
Pcs.) Pcs. Pcs. Pcs. Pcs.
C/T 1 Sec. C/T 10 Sec. C/T 20 Sec. C/T 45 Sec.
C/O 90 Mins. C/O 30 Mins. C/O 30 Mins. C/O 30 Mins.
1 Shift 1 Shift 1 Shift 1 Shift
85% Yield 100% Yield 90% Yield 100% Yield Time Line
3 Days 1.5 Days 1.75 Days 2 Days 2 Days 10.25 Days
1 Secs. 10 Secs. 20 Secs. 45 Secs. 76 Secs.
 Types of Activities on the LEAN
Value Stream Map
• Value added activity changes the product in a way that is meaningful to the
customer.

• Non value-added process steps are noted. NVA

• Steps that add no value but must be done

– Regulatory
– Business needs R NVA
• Reports (limited) B NVA
• Metrics accumulation
• Maintenance of equipment
• Others?
 2. Layout LEAN
(Cellular Manufacturing)
• Group dissimilar functions in a work cell that have input
and authority to make decisions for completing the
process, transaction, or decision
• Reduce transit time
• Send work in one direction through the cell
(resembling a small assembly line)
• Adjust cycle time by changing worker paths
 LEAN
Cellular Layout Benefit
• Benefits include reducing the amount of:
– Space
– Motion
– Conveyance
– Communication Lag Time
 LEAN
Cellular Design Overview
• Cell design layout involves
– Organizing cells around families of similar products
– Organizing the equipment needed for each step to minimize
part travel distances
– Eliminating any non-value-added steps (move, stage, store)
– Collapsing the sequence of cell operations so that the output
of the preceding step feeds directly into the following step
– Avoiding barriers that prevent complete visibility of all cell
operations
– Using the absolute minimum amount of space required for
machines, tools, operators and inventory
 LEAN
Cellular Manufacturing Example
BEFORE AFTER
Weekly
Materials Planning Production Daily Weekly
Purchase Order Entry Materials Planning Production Daily
Steel Orders
Control Ordering Purchase Order Entry
Customer Steel Orders
Control Ordering
Supplier Customer
Supplier

Weekly
Schedule
(Adjusted
Daily) Daily Ship
Daily Schedule
Expediting Coil
Weekly 1,000 Twice
Deliveries per Day 1,000
Weekly
per Day
Deliveries

Press, Weld and

250 Assembly Cell
250 Pcs. 250

Stamp Press Weld Assembly Shipping

Stamp Shipping
I I I I I
2 Coils
(3,000 1,500 1,750 2,000 2,000
Pcs.) Pcs. Pcs. Pcs. Pcs. 1,000
C/T 1 Sec. C/T 10 Sec. C/T 20 Sec. C/T 45 Sec. 2 Coils 1,000
(2,000 C/T 1 Sec. Pcs. C/T 45 Sec.
C/O 90 Mins. C/O 30 Mins. C/O 30 Mins. Pcs.
C/O 30 Mins. Pcs.) C/O 15 Mins. C/O 10 Mins.
1 Shift 1 Shift 1 Shift 1 Shift
1 Shift 1 Shift
85% Yield 100% Yield 90% Yield 100% Yield 95% Yield 99% Yield

3 Days 1.5 Days 1.75 Days 2 Days 2 Days 10.25 Days

2 Days 1 Day .25 Days 1 Day 4.25 Days
1 Secs. 10 Secs. 20 Secs. 45 Secs. 76 Secs.
1 Secs. 45 Secs. 46 Secs.
 LEAN
3. Spaghetti Diagram
• A map showing movement of people, product
and materials and can show total distance
traveled.

• Uses a continuous line to trace the path of an

entity through all steps.
•
• Exposes inefficient layouts and large distances
traveled between steps.
 LEAN
How to Create a Spaghetti Diagram
1. Use a facility layout of the area

2. Staple yourself to the worker(s) as they perform tasks.

• Draw the paths they walk
• Measure the distance covered
• Measure the time the worker takes

3. Analyze the diagram to expose value-added and non-value-added

activities.
 LEAN
Spaghetti Diagram Example
Current State (All Travel) Alternative / Improvement

Time Time
Required: Required:
57 min. 13 min.
Distance Distance
traveled: traveled:
3090 feet. 135 feet.
 LEAN
4. 5S
• 5S is the foundation of Lean.
• The goal of 5S is to eliminate waste.
• Benefits of 5S:
– Increased workplace safety
– Decreases space requirement
– Easier to spot abnormalities
– Decreases potential product contamination
– Motivates others to cleanliness.
– Less wasted time looking for things.
 LEAN
Eliminating Waste Through 5S
Step Japanese Literal Translation English

Step 1: Seiri Clearing Up Sorting

Step 2: Seiton Organizing Straightening

Step 3: Seiso Cleaning Shining

Step 4: Seketsu Standardizing Standardizing

Step 5: Shitsuke Training & Discipline Sustaining

 LEAN
5. Takt Time
• Takt time can be defined as the maximum time allowed to
produce a product in order to meet demand.
• Takt time provides and smooth even flow.

Takt Time (Available minutes per working day)

=
Time Volume (Daily production requirement)

The objective is to pace production

to match the pace of sales.
 LEAN
Takt Time is NOT Cycle Time
• Cycle time = the actual interval of time to
complete a sequence of work.
– Cycle time is the voice of the process.

• Takt time = the pace needed to meet customer

demand
– Takt is the voice of the customer.
 LEAN
6. Standardized Work
• Standard Work is establishing a precise pattern, rhythm, or
a flow for each operator's work in a process. It is enforced
by operating standards and is based on three elements:
– Takt time, which is the rate at which products must be made in a
process to meet customer demand.
– The precise work sequence in which an operator performs tasks
within takt time.
– The standard inventory, including units in machines, required to
keep the process operating smoothly.
 LEAN
Why Standardized Work?
• Capture the know-how and expertise on the “current best” way to
do the work. This represents the intellectual capital of the process.
• Provides a basis for employee training.
• Establishing process stability
• Reveals clear start and stop points for each process
• Assists audit and problem solving
• Creates baseline for Kaizen
• Maintains organizational knowledge
 LEAN
7. Pull System (Kanban)
• Pull / Kanban is a method of controlling the
flow of production through the factory based
on a customer’s demand.
• Pull Systems control the flow of resources in
a production process by replacing only what
has been consumed.
• They are customer order-driven production
schedules based on actual demand and
consumption rather than forecasting.
 LEAN
Traditional (Push) Compared to Pull
Traditional Pull

Trash IN OUT

• Forecast Usage • Actual Usage

•
•
Large Lots
Hidden Problems
VS. •
•
Small Lots
Visible Management
• Waste • Minimum Waste
• Poor Communication • Good Communication
• Approximation • Precision
Make all we can, just In case we need it Make what we need, when we need it
 LEAN
A Pull System is Flexible and Simple
– Method of controlling and balancing the flow of
resources.
– Eliminate waste of handling, storage, expediting,
obsolescence, repair, rework, facilities, equipment,
excess inventory (Work-in-Process & Finished).
– Produce and ship only what has been consumed.
– Provides visual control of all resources.
 LEAN
Pull System Example
Provider Consumer
Visual Control

TOTE

Replaces Uses
Used Products Product
 LEAN
8. Batch and Single Piece Flow
• Batch Flow: Associates or functions are separated so that
each is producing at their own pace. Producing large quantities
of the same part.
• Single Piece Flow: Eliminate the stagnation of work in and
between processes carrying out one by one production.
Producing in sequence of what the customer wants, when they
want it, and in the right quantity they want.
Batch Processing – 1 minute per piece Continuous Flow – Make One Move One

A B C A B C
Cycle Time = 30+ min Cycle Time = 12 min

Work In Isolation Work As A Team

 LEAN
9. Poka-Yoke (Mistake Proof)
• Poka-Yoke is mistake-proofing the process
is to change the method or equipment to
ensure that a particular error cannot
happen.
 LEAN
Types of Human Error
1. New worker
– Not familiar with operation. Lack of Experience
1. Forgetfulness
– Lack of concentration and standards from one part to the next
1. Willful errors
– Operator thinks his/her way of doing things is best
1. Lack of standards
– No standardization of work implemented
1. Surprise errors - equipment
– Equipment failures or wrong setup
1. Misunderstanding
– Misinterpret
1. Intentional
– Sabotage
 LEAN
Benefits of Mistake Proofing
• Reduces defects
• Eliminates reliance on inspection
• Respects the intelligence of workers
• Takes over repetitive tasks
• Frees a worker’s mind to pursue
more creative and value added activities
 LEAN
Poka-Yoke Examples
For some file cabinets, opening one drawer locks
all the rest, reducing the chance of the file cabinet
tipping.

Even bathroom sinks have a mistake-proofing device.

It is the little hole near the top of the sink that helps
prevent overflows.