Lean Manufacturing

An Overview
Dr. Richard A. Wysk
rwysk@psu.edu
http://www.engr.psu.edu/cim

August 12, 2002

 Agenda
• Review brief history of manufacturing
systems
• Distinguish between mass, craft and lean
manufacturing
• Introduce key Concepts of
Lean Manufacturing
• Review the kinds of changes needed to be
considered a lean manufacturer.
 Readings
• Chapter 18 of Computer Aided Manufacturing, Wang,
H.P., Chang, T.C. and Wysk, R. A., 3rd Edition (2004
expected)
http://www.engr.psu.edu/cim/ie450/ie450ho1.pdf
• “Building the Lean Machine,” Advanced Manufacturing,
January 2000.
http://www.engr.psu.edu/cim/ie450/buildingthelean.pdf
 Exercise
Readiness Assessment Test A.K.A. RAT

AS A INDIVIDUAL,
INDIVIDUAL prepare a detailed process plan
for the part shown noted in the course web page.
http://www.engr.psu.edu/cim/ie450/ie450rat.doc
Make sure the the time required to produce the part
(Process, locating and handling) is included in the plan.
This assignment will be collected in class and graded.

Open Book / Open Notes

 Exercise
Readiness Assessment Test A.K.A. RAT

AS A TEAM (4 members),
members) take 3 minutes
to provide a written to answer the following
questions:
• Were all the plans the same?
• Is one better than the others?
• Why?
Closed Book / Closed Notes
 Objectives
• To identify waste elements in a system
• To apply value stream analysis to a
complex engineering/manufacturing system
• To implement 3 M’s in a complex
engineering environment
• To be able to identify and implement the
5Ss of lean
 Craft Manufacturing
• Late 1800’s
• Car built on blocks in the barn as workers walked
around the car.
• Built by craftsmen with pride
• Components hand-crafted, hand-fitted
• Excellent quality
• Very expensive
• Few produced
 Mass Manufacturing
• Assembly line - Henry Ford 1920s
• Low skilled labor, simplistic jobs,
no pride in work
• Interchangeable parts
• Lower quality
• Affordably priced for the average family
• Billions produced - identical
Lean Manufacturing
• Cells or flexible assembly lines
• Broader jobs, highly skilled
workers, proud of product
• Interchangeable parts,
even more variety
• Excellent quality mandatory
• Costs being decreased through process improvements.
• Global markets and competition.
 In-class exercise
Individually, respond to the
following question (1-3
minutes)

What are the most prevalent

forms of waste in a job that
you’ve had or in a process
(or activity) that you are very
familiar with?
 Definition of “Lean”
• Half the hours of human effort in the factory
• Half the defects in the finished product
• One-third the hours of engineering effort
• Half the factory space for the same output
• A tenth or less of in-process inventories

Source: The Machine that Changed the World

Womack, Jones, Roos 1990
 Lean Manufacturing
 is a manufacturing philosophy which shortens the time line between the
customer order and the product shipment by eliminating waste.

Business as Usual
Customer Waste Product
Order Shipment

Time
Lean Manufacturing

Customer Product
Order Waste Shipment

Time (Shorter)
 The Nature of Lean Mfg
• What Lean Mfg is not
– JIT
– Kanban
• Characteristics
– Fundamental change
– Resources
– Continuous improvement
• Defined
– “A system which exists for the production of goods or
services, without wasting resources.”
13
New Paradigm: Non-Blaming Culture
Management creates a culture where:

• Problems are recognized as opportunities

• It’s 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
PROBLEMS instead of “who
SOLUTIONS

did it”
 What makes a manufacturing
system lean? – the 3 M’s of lean
• muda – waste
• mura - inconsistency
• muri - unreasonableness
What makes a manufacturing
system Lean?
 Definitions
• Systems
– Recognition
– Efficiencies
• Waste
– Muda
– 7 types
– Truly lean

17
 Waste
“Anything
“Anything that
that adds
adds Cost
Cost
to
to the
the product
product
without
without adding
adding Value”
Value”
 7 Types of Muda
• Excess (or early) production
• Delays
• Transportation (to/from processes)
• Inventory
• Inspection
• Defects or correction
• Process inefficiencies and other non-value added
movement (within processes)
19
 7 Forms of Waste
CORRECTION

Repair or MOTION
WAITING
Rework Any wasted motion
Any non-work time to pick up parts or
waiting for tools, stack parts. Also
supplies, parts, etc.. wasted walking

Types
PROCESSING of OVERPRODUCTION
Producing more
Doing more work than Waste than is needed
is necessary
before it is needed

INVENTORY
Maintaining excess CONVEYANCE
inventory of raw mat’ls, Wasted effort to transport
parts in process, or materials, parts, or
finished goods. finished goods into or
out of storage, or
between
processes.
 Who wants what...

$ Cash
Cash !!!!

Value
Value !!!!
Customer
Low Cost Your Company
High Quality Profit
Availability Repeat Business
Growth
Elements of Lean Manufacturing
• Waste reduction
• Continuous flow
• Customer pull
• 50, 25, 25 (80,10,10) Percent gains

22
 Benefits of Lean Manufacturing
• 50 - 80% Waste reduction
– WIP
– Inventory
– Space
– Personnel
– Product lead times
– Travel
– Quality, costs, delivery

23
 Setting the Foundation
• Evaluating your organization
– Management culture
– Manufacturing culture
• Lean Manufacturing Analysis
– Value stream (from customer prospective)
– Headcount
– WIP
– Inventory
– Capacity, new business, supply chain
24
 Tools of Lean Mfg/Production
• Waste reduction
– Full involvement, training, learning
– Cellular mfg
– Flexible mfg
– Kaikaku (radical change)
– Kaizen (continuous improvement) & standard work
– 5S
– Jidoka (autonomation)
– Poka-yoke (visual signals)
– Shojinka (dynamic optimization of # of workers)
– Teien systems (worker suggestions)
25
 Tools (cont.)
• Continuous Flow (10% - 25%)
– SMED (Shingo)
– Andon
– Takt time
– Line balancing
– Nagara (smooth production flow)

26
 Tools (cont.)
• Customer pull (10%- 25%)
– Just-in-time
– Kanban

27
 Henry Ford - Standards
“To standardize a method is to choose out of the many
methods the best one, and use it. Standardization means
nothing unless it means standardizing upward.
Today’s standardization, instead of being a barricade against
improvement, is the necessary foundation on which
tomorrow’s improvement will be based.
If you think of “standardization” as the best that you know
today, but which is to be improved tomorrow - you get
somewhere. But if you think of standards as confining, then
progress stops.”
Henry Ford, 1926
Today & Tomorrow
 Standardized Work
• Captures best practices
• Posted at the work station
• Visual aid
• Reference document
– work sequence
– job layout
– time elements
– safety
• Developed with operators
• Basis for Continuous Improvement
 Other Tools

• Visual Factory

• Error Proofing

• Quick Change-over

• Total Productive Maintenance

 5S Programs
• Seiri (sort, necessary items)
• Seiton (set-in-order, efficient placement)
• Seison (sweep, cleanliness)
• Seiketsu (standardize, cont. improvement)
• Shitsuke (sustain, discipline)

31
 Visual Factory
• “Ability to understand the status of a production area
in 5 minutes or less by simple observation without use
of computers or speaking to anyone.”
• 5-S
– 1S Sift and Sort (Organize)
– 2S Stabilize (Orderliness)
– 3S Shine (Cleanliness)
– 4S Standardize (Adherence)
– 5S Sustain (Self-discipline)
 Error Proofing
• Preventing accidental errors in the
manufacturing process
– Error detection
– Error prevention
• A way to achieve zero defects.
 Exercise (3 – 5 minutes)
• Individually, identify an area or system that
you feel lends itself to improvement using
the 5S.

• What S’s can be easily applied (low

hanging fruit)?
 Exercise (3 – 5 minutes)
• As a group, discuss the recommendations
made by each group member.
– Can other recommendations be made?
• What activities do you feel will make the
most significant impact?
End part #1 – Waste Elimination

Questions?