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 cost.
Henry
Ford, 1926

History of Lean Manufacturing

Lean Production

Eiji Toyoda visits Fords 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. Managements 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

1. Specify value in the eyes of the customer
2. Identify the value stream and eliminate
waste
3. Use a pull system that is triggered by the
customer
4. Involve and empower employees
5. 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

Value-Added

Non-Value-Added: Hold
all waste in a CLOSED
MITT
Complexity
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 peoples 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
Extra copies/excessive information

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
Lack of standards
Customer needs not understood

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
Upstream quality problems
Unlevel scheduling

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
Large batch size, long lead
times, large storage areas

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.
Poor communication between
processes.

Lean Building Blocks

Continuous Improvement
Cellular/Flo
TPM
w
Quality at
POU
Quick
Source
S
Changeover
Tea
Standardized
Batch
ms
Work
Reduction
Plant
5S System
Visual
Layout
Pull/Kanban

Value
Stream
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
Location signs on shop floor and in the office
Identification labels everywhere

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: EMTs, fire department, etc.

Elements of a 5S Program
SortPerform 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 OrderIdentify 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.

StandardizeCreate the rules for maintaining and controlling

the first 3 Ss. Use visual controls.

SustainEnsure adherence to the 5S standards through

communication, training, self-discipline and rewards.

Before 5S

Before 5S

After 5S

After 5S

After 5S

Traditional Plant Layout

Plant Layout for Flow

QC

Raw Stock

Shea
r
Brak
e

Stam
p

Mill

Weld Grind

Screw
Machin
e
Lath
e

Drill

Finish

Ship

Rec

QC

Assembl
y

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
A

Process
B

10 minutes

Process
C
10 minutes

10 minutes

Lead
Time

30+ minutes for total order

21+ minutes for first piece

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
Velocity = The smaller the lot
size, the faster the parts will flow
through the manufacturing process
Flexibility = 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)
product run.
Percent of time of changeover
30%
50%
15%
15%

5%

Making trial pieces and

adjusting
Preparation, after-process
adjustment, checking,
return to storage of parts,
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.

Samples or established standards are visible tools that can

be used in the cell for such purposes.

Process documentation defining quality inspection

requirements for each workstation needs to be developed.

Visual Inspection Example

Specify what to inspect
Clear inspection criteria
Dont 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

RawProcess
Suppli Matl
A
er

Process
B

Parts Flow
Kanban
Locations

Process Fin. Customer

Goods
C

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.

Supermarket or Grocery Store System:

Controlled & limited shelf space.
Replenish items to the shelf as needed.

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

A
A

Inv

Inv
Inv

Inv
B

Inv

Dept C

Inv
Inv

C
C

Inv

Inv

Inv

Dept E

Inv

Inv

Inv

D
E

Stage 3

Inv

Production in Compact Cell with One-Piece Flow

and Separation Man/Machine

C
B

Inv

Stage 4

Production in Compact Cell with One-Piece Flow

Inv

Inv

Dept D

Inv

Inv

C
A

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 cause of problems, and

implementing permanent corrective actions

Continuous Improvement
(CI)
Old Adage:

If you always do what you always did, youll

always get what you always got.

Competitive Corollary:
If the other guy gets BETTER, youre 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-making processes
Gap analysis, team-based problem solving, project
management, etc.

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
Clear channels of communication

Comparison of Traditional vs. Lean

Traditional

Lean

Complex
Forecast Driven
Excessive Inventory
Speed Up Value-Added
Work
Large Batch Production
Long Lead Time
Quality Inspected-in
Functional Departments

Simple and Visual

Demand Driven
Inventory as Needed
Reduce Non-Value-Added
Small Lot Size
Minimal Lead Time
Quality Built-in
Value Stream Managers

Quality of a GOOD Leader

Must Not
Must
Blame the
worker

Flex
Muscles

Give up
Throw fits

Blame the Measure

Think of at
least 7 ways
to do better

Go to the
Shop Floor

Show Boat
Tamper with
the Measure

Cover up

Stress out

Hide in the
office

Create smoke
screens

Intimidate

Lead by Example

Set goals

Kaizen your
Standard Work

Empower the Team

Have a vision Celebrate Success

Throw People at Problems

Grovel

Be clueless

Provide the
right tools

Observe the process

Find the Waste

Communicate
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
Production lead time

Old

23.5 days

New

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
Cost

Inventory Carrying Cost

Changeover Cost
Fixed
Cost

EOQ

Increasing
Lot/Batch Size