Overview of Lean

Lean Management Program

Sept 2012
Conventional Vs Toyota

Technicians have to work. Products are made by Technicians.

We are here to control. All others are there to support / lead / teach.

Technicians
Top

Supervisors
Managers Lead /
Managers Support /
Teach
Supervisors
Top
Technicians

Conventional way Toyota way

 Definitions
Value - A capability provided to a
customer at the right time at an
appropriate price, as defined in each
case by the customer. Features of
the product or service, availability,
cost and performance are dimensions
of value.
Waste - Any activity that consumes
resources but creates no value.
 Definition of Lean
Lean is successively overcoming all
the obstacles to:
linking every step into a continuous flow
sequence,
precisely synchronized with the demand
of the end customer.
 What is Lean?
Lean production is about expanding
capacity by reducing costs and
shortening cycle times between order
and ship date
Lean is about understanding what is
important to the customer
 Thinking Lean
Specify Value Can only be defined by the
ultimate customer
Identify the Exposes the enormous
Value Stream amounts of waste
Create Flow Reduce batch size and WIP
Let the Customer Make only what the
pull product customer has ordered
through the
Value Stream
Seek Perfection Continuously improve
quality and eliminate waste
 Culture
New Paradigm: Non-Blaming Culture
Management creates a culture where:
Problems are recognized as opportunities
Its okay to make legitimate mistakes
Problems are exposed because of increased
trust
People are not problems - they are problem
solvers
Emphasis is placed on finding solutions
instead of who did it
 Progress Toward Lean
Smaller lot sizes
Increased capacity / throughput
Higher inventory turns
More available floor space
Improved workplace organization
Improved quality : reduced scrap / re-
work
Reduced inventories : RM, WIP, FG
Reduced lead times
Greater gross margin
Improved participation & morale
 Zero
Tolerance
for Waste
LEAN: An Attitude that drives Action
Zero Tolerance for Waste

Leadership, managers, supervisors.

Everyone just wont tolerate waste
Waste of all kinds:
Time, effort, money, materials, opportunities
Everything

Relentless pursuit of Waste

Everyone
Seeking out waste
Identifying where it is
Eliminating it
Everywhere
 WASTE

Anything the customer does

not want to pay for

Everything we can do without

The Toyota Production System
 TYPES OF WASTE
Challenge!!
Non-value-adding
work requested by
the customer
Profit
Non-value-adding
Type 3 work we complete
waste for our purposes
Waste:
Price to (hopefully Type 2
the Exagg- waste
customer erated)
Type 1
waste
Costs
that add
value Cost of raw
waste
 WASTE
Analysis of waste is generally fairly
obvious.
A general definition is any activity that
adds cost/time without value to the
service we offer to our customers
 Waste of Motion
Moving without working:
Any motion employees have to perform during
the course of their work other than adding value
to the part, such as reaching for, looking for, or
stacking parts, tools etc.
Also, walking is waste
 Waste of Delays
Waiting for anything:
Merely serving as watch persons for an
automated machine
Having to stand around waiting for the next
processing step, tool, part, etc.
Having no work because of no stock, batch
processing delays, equipment downtime, and
capacity bottlenecks
 Waste of Transporting
Moving products between work:
Moving WIP from place to place in a process,
even if it is only a short distance.
Having to move materials, parts, or finished
goods into or out of storage or between
processes.
 Waste of Defects
Not working right first time:
Production of defective parts or correction.
Repairing of rework, scrap, replacement
production, and inspection means wasteful
handling, time and effort.
 Waste of Over-Working
Doing work beyond what is needed:
Taking unneeded steps to process the parts.
Inefficiently processing due to poor tool and
product design, causing unnecessary motion
and producing defects.
Waste is generated when providing higher
quality products than is necessary.
At times extra work is done to fill excess
time rather than spend it waiting.
 Waste of Storing
Keeping products waiting:
Excess raw material, WIP, or finished goods
causing longer lead times, obsolescence,
damaged goods, transportation and storage
costs, and delay.
Also, extra inventory hides problems such as
production imbalances, late deliveries from
suppliers, defects, equipment downtime, and
long setup times.
 Waste of Over-Producing
Producing more parts than are needed:
Producing items earlier or in greater quantities
than needed by the customer.
Producing earlier or more than is needed
generates other wastes, such as overstaffing,
storage, and transportation costs because of
excess inventory.
Inventory can be physical inventory or a queue
of information.
 An Eighth Waste:
Waste of Unused Employee Creativity

Losing time, ideas, skills,

improvements, and learning
opportunities by not engaging or
listening to your employees.
 WASTE
Work density analyses show that
eliminating these seven wastes
release huge amounts of time, effort
and resources
In our work these types of waste
probably represent more than 95%
of the time / internal effort as seen
by the customer
 Muda, Muri and Mura
MURI overburden:
Pushing a machine or a person beyond natural
limits
Overburdening people leads to safety and
quality problems
Overburdening a machine is a direct cause of
breakdowns and defects
MURA unevenness:
Is a combination of Muda and Muri
Due to unevenness in production levels,
sometimes there is excess capacity (Muda)
and at other times there is oveburden (Muri)
5 S:Everyone has what they
need to do a good job
Imagine that each person might waste 5 minutes
each hour:
Looking for things
Asking for help
Borrowing tools
.

5 mins x 8 hours x 300 days x 100 people

60mins/hr x 8 hrs x 300 days

5 mins x 16 hours/day x 150 day dock to dock lead-time

60 mins/hour x 16 hours/day
 THE WAY WE WORK :
WORKABLE WORK
Specific
Priorities/
technical
expectations
information/
of performance
instructions

All material
RELIABLE
and parts
Special tools WORK Quality
Delivery
and fixtures
Cost
People with the
required skills
Standard work instructions
Standard tools and fixtures
Machines that work

Providing everything that is needed for

the person doing the work to be able to do it without waste
5S: The Origins

SEIRI SORTING
SEITON SIMPLIFYING
SEISO SWEEPING
SEIKETSU STANDARDIZING
SHITSUKE SELF-DISCIPLINE

FIVE Ss

+
WITH DEDICATION
5 S: Taking Back those 5 Minutes
Un-peel
1 minute/hour The
Not sorting
through unneeded Onion
stuff

1 minute/hour
Having the self-
1 minute/hour discipline to work
Being able to work to 5 S principles
in the simplest way
Value-Adding
Work
1 minute/hour 1 minute/hour
Do work in a sure Being able to see
and standardized by a visual sweep
manner that everything
needed is there
THE WAY WE WORK: DENSITY

2) Lay the work 3) The work

1) Make the
out in the cannot help
work flow
minimum space but move fast!
 VELOCITY - EXAMPLE
500

450

400

350

The common snail travels at
Speed (inches/hour)

300
Mach 0.0000094 (0.007 mph)
250

This is more than ten times the
200
average velocity of the fastest
part flowing through a typical
150 supersonic fighter aircraft
supply system
100

50

Source:
Snail Composite Parts Aluminum Fabricated Miscellaneous Titanium PurchasedAluminum Purchased
Parts Parts Parts
James Womack
 The Continuous Improvement
Circle
Establish Standardized
Way of Working

Implement corrective
actions to resolve the Visual Controls show
root cause of the Any abnormality in
abnormality following the standard

Ask the 5 Whys to

establish why the
standard is not followed
The Importance of Standards
A standard becomes a reference for
improvement
 LEAN: Implementing
Solutions
Problem known in completely known
detail through through TPS tools
good documenting matrix
reality

Known
Unknown problem Known problem
Known solution Known solution
Solutions The Salesman Kaizen Implementation

Unknown problem Known problem

Un-Known Unknown solution Unknown solution
The Swamp Research

Un-Known Known
Problems
 Zero
Tolerance
for Waste
 Thank You!
venkatanaga@yahoo.com