GBE KPO 2 001 00 Lean Basics 1

1GBE-KPO-2-001-00 Lean Basics 1 Rev.04

Design. Build. Ship. Service.

Lean Training

Lean Basics 1Lean Basics 1

Business Excellence


APPROVALS NAME TITLE DEPT NAME DATE

Ganesh S Maniam Director Global Business Excellence

December 11, 2008

REVISION HISTORY

REVISION DESCRIPTION OF CHANGE ORIGINATOR RELEASE DATE 04 Document formatted as per DMS policy Chuah Khar Yee December 11, 2008

This document is proprietary and confidential property of Flextronics.

Document Title: Lean Basics 1

Document# GBE-KPO-2-001-00

Organization: Global Business Excellence

Revision: 04

Document Owner: Chuah Khar Yee

Effective Date: December 11, 2008


Contents Slide(s)

Table of Contents

Overview & Scope 3

Objectives 4

A Brief History of Lean 6

The Flextronics Lean Enterprise (FLE) 13

Waste Elimination 16

Value Stream Mapping (VSM) 29

5S & Visual Management 37

Super Market 55


Overview & Scope

Lean Manufacturing is a generic process management philosophy derived

mostly from the Toyota Production System (TPS) but also from other sources.

It is renowned for its focus on reduction of ‘Seven Wastes' in order to improve

overall customer value. *

Toyota's achievement made "Lean" a hot topic in management science in the

first decade of the 21st century.

Lean Manufacturing can be defined as:

"A systematic approach to identifying and eliminating waste (non-value-added

activities) through continuous improvement by flowing the product at the pull of

the customer in pursuit of perfection."

Info Source: http://en.wikipedia.org/wiki/Lean_manufacturing*


Objectives

Introduce Flextronics Lean Enterprise (FLE) and its elements

• Waste Elimination

• Value Stream Mapping (VSM)

• 5S & Visual Management

• Supermarket


98% of Organisations that engage with Lean, Fail!!

WHY??? Lean is HARD!!!

Excerpts from the book “Lean Machines”

Lean ThinkingIt’s a people issue. That’s why it’s so hard. Getting people to change – to do things differently than they have done them –is really, really hard.

Art Byrne, CEO Wiremold

If a company is really maniacal about Lean it takes two to three years to go from kindergarten to first grade. That’s how tough it is.

Mark DeLuzio, architect of the Danaher Business System, Danaher

What Executives (Really) Need to Know


A Brief History of Lean

Lean History TimelineThe Origins of Lean Manufacturing


Father of Management

Father of Motion-Time Study

Father of Assembly Line Concept

Industry Quality Transformation

Birth of TPS/Lean Concepts

“The Machine That Changed The World”“Lean Thinking”

Info Source: http://www.strategosinc.com

Ohno Shingo

Lean History Timeline


Lean Manufacturing has its’ root in the Toyota Production System (TPS). Several individuals at Toyota were instrumental in developing and systematizing TPS. Among the most important were:

Sakichi Toyoda (1867~1930)• Japan’s “King of Inventors.”• His concept of Jidoka (autonomation) is one of the foundational

principles of TPS.• First applied toToyoda Power Loom equipped with a new weft-breakage

automatic stopping device (developed in 1896).• World's first automatic loom with a non-stop shuttle-change motion, the

Type-G Toyoda Automatic Loom (developed in 1924).• Founded Toyota Motor Co. in 1937.For more info: http://en.wikipedia.org/wiki/Sakichi_Toyoda

Type G Automatic Loom Toyota Sedan Model AA

Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html

The Origins of Lean Manufacturing


Kiichiro Toyoda (1894~1952)• Sakichi’s son. • The TPS has evolved through may years of trial and error to improve efficiency

based on the Just–in–Time (JIT) concepts developed by Kiichiro Toyoda, the founder (and second president) of Toyota Motor Corporation.

• Inherited Sakichi Toyoda philosophy, set out to realize his belief that “the ideal conditions for making things are created when machine, facilities and people work together to add value without generating any waste“.

• Conceived methodologies and techniques for eliminating waste between operations, between lines, between processes. The result was the so called JIT method.

• Drawing on his experience of introducing a flow production method using a chain conveyor into the assembly line of a textile plant (completed in 1927) with a monthly production capacity of 300 units.

• Introduced this method into the body production line at Toyota Motor Co., Ltd.'s Koromo Plant (present day Honsha Plant), completed in 1938.

• He studied Ford’s production system and adapted it to the smaller, more diverse Japanese market.

For more info: http://en.wikipedia.org/wiki/Kiichiro_Toyoda





Eiji Toyoda (1913 ~)• By ensuring thorough implementation of Jidoka and the Just-in-Time method,

Eiji Toyoda increased workers' productivity in adding value and realized the Toyota Production System, which enabled Toyota to compete head-on with companies in Europe and the U.S.

For more info: http://en.wikipedia.org/wiki/Eiji_Toyoda

Taiichi Ohno (1912~1990)• With strong backing from Eiji Toyoda, Taiichi Ohno helped establish the

Toyota Production System, and built the foundation for the Toyota spirit of "making things" by, for example, creating the basic framework for the Just-in-Time method.

• Known as the “Architect of TPS.”• Systematized Jidoka, JIT, standardized work and kaizen into what we now

know as TPS. • Father of the supermarket system of inventory control.For more info: http://www.strategosinc.com/taiichi_ohno.htm

http://en.wikipedia.org/wiki/Taiichi_Ohno




Dr. Shigeo Shingo (1909~1990)• In 1930, after graduation from Yamanashi Technical College, he went to

work for the Taipei Railway Company.• In 1943, he was transferred to the Amano Manufacturing Plant in

Yokohama.• In 1945 and 1946 and also began a long association with the Japanese

Management Association (JMA).• In 1955, he began another long association, this time with Toyota. In

addition to his many consulting assignments in other industries. It is during this period that he first started work on setups by doubling the output of an engine bed planer at Mitsubishi's shipyard.

• In 1959, he left JMA to start his own consulting company. During the early 1960's, as an outgrowth of work with Matsushita, he developed his concepts of "Mistake-Proofing“ (Poka–Yoke).

• In 1969, SMED was originated when he cut the setup time on a 1000 ton press at Toyota from 4.0 hours to 3.0 minutes.

• During the 1970's, he traveled in Europe and North America on many lectures, visits and assignments. He began to see Toyota's efforts as an integrated system and began to assist several U.S. and European firms in implementation.

Info Source: http://www.strategosinc.com/shigeo_shingo.htm


• By practicing the philosophies of “daily improvements" and “good thinking, good products" the TPS has evolved into a world-renowned production system. Furthermore, all Toyota production divisions are making improvements to the TPS day and night to ensure its continued evolution.

• At least as important as the tools that these founders discovered, was the realization by top Toyota management that for the system to work, workers must be continuously trained, motivated, and properly supported at all times.




The Flextronics Lean Enterprise (FLE)

The Flextronics Lean Enterprise (FLE)Sequential Applications of Tools


Stop @ Abnormality

Takt Time Production

Single Piece Flow

Pull Production

Autonomation

SequencingLevel Loading

JidokaJIT

Heijunka

FLE

VSM, 5S, Supermarkets

Adding Value and Eliminating Waste

The Flextronics Lean Enterprise (FLE)


Value Stream is the FoundationValue Stream is the Foundation

6. Prod Prep Process (3P)5. JITTakt TimeSingle Piece FlowPull ProductionFlowKanban

Takt TimeStandard WIPOp Sequence

Standard work

7. JidokaStop at AbnormalitiesHuman Intelligence into machines

1. 5SSeiri - SortSeiton - Set In OrderSeiso – Shine / SweepSeikets - StandardizeShitsuke - Sustain

2. Material PresentationReceivingBreak BulkSupermarketKitting

4. HeijunkaLevel LoadingSequencing

Time

Degreeof

Change+

Impact

3. VSMCurrent StateFuture State

Sequential Application of Tools


Seven Wastes (TIMWOOD)

Waste Elimination


Waste Exists In Every Process…Eliminate It!Waste Exists In Every Process…Eliminate It!

“Begin by learning the FUNDAMENTALS. If you learn the wrong ideasabout fundamental matters, you are likely to continue to make mistakes

later, no matter how enthusiastic you are about implementing improvements.”

The Seven Types of Waste…

• Transportation• Inventory• Motion• Waiting• Overproduction• Over Processing• Defects

TIMWOOD

Understanding & Eliminating Waste


ValueCorrectly Specify Value of Product/Service with

Customer in mind

Value StreamIdentify the wastes in the Value

Stream and remove all the wastes

FlowMake the Product and Value Flow Smoothly

PullProduce only to the Pull of Customer Demand

Pursue Perfection

Wastes Elimination as an Ongoing Process towards Perfection

Info Source: http://www.lean.org/WhatsLean/Principles.cfmThe Universal Lean Principle


Eliminate Non-Value Added ActivityEliminate Non-Value Added Activity

Defining Value

Time

After

Before

Value Added Work

After

Before

Non Value Added Work

Time

Value Added ActivitySomething customers are willing to pay for…- AND -changes the form, fit, or function of materials or information …- AND -Is being done right the first time.

Non -Value Added ActivityAll other actions and unwanted features are by definition…WASTEadding no value to the customer….simply raise costs in our business!


“It”…Either Adds Value or Does Not“It”…Either Adds Value or Does Not

Understanding & Eliminating Waste

Observe that 2 Things are ALWAYS happeningconcurrently. . . . . .

Things that should be done

Things that should not be done WASTE

WORK

Time

After

Before

Value Added Work

After

Before

Non Value Added Work

Time


This is what you are striving for…

• Requires Equipment• Increases Handling Damage• Necessary … Must Minimize

End FinishWeldEnd FinishWeldOrbital Weld

Hydro TestMarkMech.Clean

TorchBraze

Mech.Clean

Flex

End FinishWeldEnd FinishWeldOrbital Weld

Hydro TestMarkMech.Clean

TorchBraze

Mech.Clean

Flex

Machines Next to Each Other …Transport Time MinimizedMachines Next to Each Other …Transport Time Minimized

Waste #1 - Transportation


Waste Asks For More WasteWaste Asks For More Waste

• Ties Up Working Capital • Takes Valuable Space • Risk of Obsolescence

Inventory levels

High spoilage

Poor product quality

Slow running

Frequent breakdowns

Long changeovers

Unplanned stoppages

Waste #2 - Inventory


• Ergonomic Concerns • Labor Efficiency • Wasted Cycle Time

climbingclimbingclimbingclimbing

sittingsitting searching

???

searchingturning aroundturning around walkingwalking

choosing bendingbending lying downlying down

Before After

Treat Operators as Surgeons…Everything Within ReachTreat Operators as Surgeons…Everything Within Reach

Waste #3 - Motion


When Inventory Waits Your Customer WaitsWhen Inventory Waits Your Customer Waits

• Increases Lead Time• Increases Work in Process• Slows Response to Customer

Waste #4 - Waiting


Do Not Produce What the Customer Does Not NeedDo Not Produce What the Customer Does Not Need

Waste #5 – Overproduction

• Ties Up Working Capital• Takes Up Floor Space• Hides Process Problems


Match Physical Movement With Systemic Transaction…Strive for 1:1 RatioMatch Physical Movement With Systemic Transaction…Strive for 1:1 Ratio

• Create Delay• Increase Opportunity for More Defects• Do not Add Value By Definition

Manual Entry of Information

Waste #6 – Overprocessing


Reworking Defects Is Wasteful…Sending Them to Customers is OutrageousReworking Defects Is Wasteful…Sending Them to Customers is Outrageous

• Upset Customers• Consume Resources• Choke Flow

Waste #7 - Defects


Skills not UtilizedSkills not Utilized

(7 Wastes) + 1 Waste – Skills (Unutilized Skills)

• Unutilized resources of skill/knowledge from the shop floor worker


Value Stream Mapping (VSM)

Current State MapFuture State Map


See the Whole Process from Start to FinishSee the Whole Process from Start to Finish

What is the Value Stream?

TOTAL Value Stream

Flextronics :Suppliers

Flextronics Ops : Plant/Service Repair Shop

Flextronics : Customer Customer

Supplier


Process LevelProcess Level

Single Plant(door to door)Single Plant

(door to door)

Multiple PlantsMultiple Plants

Across CompaniesAcross Companies

Can Be Used at Any Level in the BusinessCan Be Used at Any Level in the Business

Levels of Mapping


• Understand current state - Big picture point of view

• Shows the ratio of Non-Value Added to Value Added Time

• Exposes sources of waste - not just waste

• Shows linkage between the seven types of flow

Forms the Blueprint for a Lean Implementation PlanForms the Blueprint for a Lean Implementation Plan

Why do Value Stream Mapping?


How do we start?

Product FamilyProduct Family

Implementation Plan

Implementation Plan

Current StateDrawing

Current StateDrawing

Future StateDrawing

Future StateDrawing

2

3

4

1

Note: VE is Value Enabler, e.g. ISO, OSHA, ANSI/ESD S20.20, MSC, RoHS, etc

Identify the Value Stream for every major product family / program Concept to launch - Order to delivery

Develop metrics & determine goals … How success will be measured?Develop actions and drive toward future state

Map the current state - Identify all the actions that don’t create value (VA/NVA/VE*)

Develop and map concepts for the future state as a management team & communicate your vision to your team


The Problems as well as the Answers Lie Within the FlowThe Problems as well as the Answers Lie Within the Flow

What will be seen?

The 7 Types of ‘Flow’

1. Material – Raw2. Material – WIP3. Material – Finished Goods4. Information

• Act on material • Load into machine• Move it from 1 bucket to another

5. People• Standard Work• Takt Time

6. Equipment • Carts• Conveyors• Andons• Racks• TPM

7. Engineering / Tools• Quality• Tooling• Cutting tools• Programs


• Start at the customer and work backwards• Walk the actual flows• Don’t Map the Organization but the flow through it• Don’t be too detailed this is an overview• Use pencil not power point … quick and crude

Pretend you are the ‘product’ … And follow the ‘product’ path flowsPretend you are the ‘product’ … And follow the ‘product’ path flows

Guidelines for Mapping


Example of Current State VSM

: Supplier

: Manual Transport

: Fork lift

: Store

: Picking cart

: Truck

: MaterialFlow(Blue)

: ProcessFlow(Black)

: Inventory: Receipts : PC

: Process : Elevator EV: Information

Flow(Black)MLT : Manufacturing Lead TimePT: Processing Time

SMT-WAVEYield: 90%

Firm Weekly

Loading Plan (Weekly, Daily)

Suppliers

CoatingYield: 90%

FVMIYield: 90%

FQAYield: 90%

1 day

7200 secProcessing Time

MLT Total:MLT: 5 DaysPT: 43200

ProductionControl

MaterialSpecialist

Program Administrator

MENLO

Customer

Customer

Forecast

DailyShipment

Plan

Forecast 3-mths Firm Monthly

Supplier

ICTYield: 96%

Suppliers

PackingYield: 90%

Hub

1 day

7200 sec

1 day

7200 sec

1 day

7200 sec

1 day

7200 sec 7200 sec


Sort Set in Order Shine Standardize Sustain

5S’s & Visual Management


Sort (Seiri) …

Set in Order (Seiton) …

Shine/Sweep (Seiso) …

Standardize (Seiketsu) …

Sustain (Shitsuke) …

Proper Arrangement

Simplify/Clean up

Cleanliness

Orderliness

Self Discipline

Introduction to the 5S’


• Establish standards to detect an abnormality

• Create and maintain an organized, clean and safe work area

• Conditioning discipline for Action Workout

What is the 5S?

Definition


When In Doubt . . . Throw It OutWhen In Doubt . . . Throw It Out

Step 1 : Sort (Seiri)

Eliminate all unnecessary items …Items not needed now for production

What do we need? What can we remove?

PURPOSE

ASK YOURSELF


Everything you REALLY Need at your FingertipsEverything you REALLY Need at your Fingertips

Step 2 : Set in Order (Seiton)

Organize and arrange what you need

What do we need to use 1st, 2nd … Where should it be?

PURPOSE

ASK YOURSELF


Be able to quickly detect an abnormalityBe able to quickly detect an abnormality

Step 3 : Shine (Seiso)

Identify abnormalities by visually sweeping the area

Does this belong here? Is it needed right now?

PURPOSE

ASK YOURSELF


Anyone should be able to easily understand proper arrangement and abnormalitiesAnyone should be able to easily understand proper arrangement and abnormalities

Step 4 : Standardize (Seiketsu)

Arrange items so that they can be found quickly by anybody

Does everything has a place? Is everything in its place?

PURPOSE

ASK YOURSELF


Step 5 : Sustain (Shitsuke)

Steps of Implementation

Area team leadersidentified andresponsibilitiesdocumented.

LevelAnything not required for immediate production is removed from the line.

Immediate actions taken against abnormalities; Shop kept orderly on a continuous basis.

Non-utilized cabinets,benches, tables, etc.identified andremoved from area.

Unneeded materialsremoved from plant; not stored away.

Needed and unneededmaterials have beenidentified andseparated.

Needed and unneeded materials are mixed throughout the work area.

Daily cleanliness inspection ofequipment, toolsand supplies.

Visual controls established and well marked for work area.

Work areas unkept; Novisual controls in place.Information is “hidden”in the computer system.

Level4

Level3

Level2

Level1

Immediate actions takenagainst assemblyabnormalities.

Area’s individuals take ownership; standards are followed.

Daily checks performedby area leaders;standards are regularlyreviewed and updated.

Periodic checks are performed by area leaders.

No area checks areperformed; standards are not established.

Self DisciplineSort Sweep5S’s

Establish & follow standard procedures.Theyare clear, up-to-date, anddisplayed in work areas.

Material layout, assembly,& communications aredocumented, standardized& followed rigorously.

Labeling of items withrequired quantities arestandardized.

Procedures aredocumented, but notconsistently followed.

No procedures in place.

StandardizeAll items can be easily retrieved by anyone;they are clearly marked.

Standardized item quantities are established;Shadow boards are utilized.

Needed items have dedicated locations which are clearly labeled.

Needed items havebeen safely storedand organized.

Items are placedrandomly throughoutthe work place.

Simplify

5

Leve

l Of I

mpr

ovem

ent

Leadership responsibility to sustain the first 4S’s

Are the actions clearly defined? Clear ownership?

PURPOSE

ASK YOURSELF

Easy To Measure … Stay FocusedEasy To Measure … Stay Focused


(5S) +1 : Safety

• Safety must be in everyone mind all time.• Safety is the 1st item when you are doing any kind of Improvement • Safety cannot be compromised with all the other 5S’s activities.• Zero tolerance to any industry


• Get everyone involved.

• Integrate 5S Principles into daily work requirements.

• Communicate need for 5S, roles of all participants, how it is implemented.

• Be consistent in following 5S Principles in all areas

• Business Team Leader involvement is a must!

• Follow through -finish what is started - 5S takes effort and persistence.

• Link 5S activity with all other Action Workout initiatives.

Keys to 5S’s Success


The 5The 5SS is the foundation for is the foundation for Flextronics Lean Enterprise.Flextronics Lean Enterprise.

In order to In order to visually detectvisually detectany any abnormal conditionabnormal condition, ,

we need to establish we need to establish Visual Management & Standards.Visual Management & Standards.

The Foundation


• Management at all levels must be committed to establishing and maintaining the 5S process.

• Before people leave work for the day, everyone must ensure that the cell meets 5S principles.

• The use of checklist for monitoring adherence, quantifying results of cell inspections and prominent display of each area’s results are tools which management can use to help sustain the process.

• Management must lead by example.

• Walk the Talk!

5S’s Leadership Responsibility


Don’t “Manage” a Standard … Detect the AbnormalityDon’t “Manage” a Standard … Detect the Abnormality

• 5 cowboys to drive 1000 cattle

• Should take one look and understand the situation

• Clearly differentiate between what is “Normal” and “Abnormal”

• Detect what is “Abnormal”

Look here …

Not here …

Create Standards….. Detect Abnormalities


Very Easy to Detect Abnormalities !Very Easy to Detect Abnormalities !



Which Situation is Easier to Manage ?Which Situation is Easier to Manage ?




Horizontal Limit

All small partshave defined place

Vertical Limit


Visual Management FIFO

Supermarket


Supermarket is a stocking location for raw material/WIP/FG with the following characteristics:

• Enables Visual Management.

• Right size to support level loaded plan.

• FIFO Material Flow.

• Controlled Entry/ Exit of Parts “locked” (as required…initially)

• 5 No's - No thinking, No searching, No counting, No checking, No waiting

What do I look for in a Supermarket?What do I look for in a Supermarket?

Supermarket


Example of Supermarket


4

2

InIn

OutOut



1. Set break bulk area for Supermarket2. Right Size of Supermarket

• Supermarket physical set-up should meet “Supermarket Evaluation Checklist”(Refer to page 64) and the score should be 100%

• Start with “Right size of bin” which is based on consumption rate and condition required by customer (production line)

• Min-Max and Re Order Point (ROP) shall be clearly defined and visually trigger• Replenishment should be based on consumption pull

3. Right Size of Inventory• Utilize the “Inventory Tracking Sheet” (refer page 68)• Calculate right size of Inventory – Ideal Inventory (Min-Max / RoP)• Isolate and Visualize excess inventory

4. Right Purchase Method• Use Kanban as delivery control• Trigger PO and delivery signal to supplier only if kanban issued

Steps to Set-up Supermarket


1. Height Requirements: Rack height is limited to human height or reachable with eliminated motion climbing, searching and sorting

2. Address: Location, Part Number, ROP (Min/Max) 3. FIFO: Demonstrate an auto gravity pull gradient design FIFO mechanism 4. Pull Material: Shop floor providing Sequential pull systems. Supermarket issuing only what is

requested to replenish Production Material usage5. Visual Management: Enable material order personal react to inventory level6. No Waiting Transaction: All activities between raw material receiving and build on board

have been evaluated; eliminate non-value-creating waste such as waiting7. Return Flow: Material return to supermarket flow as pre-define processes, Excess material

return to warehouse is under standard work control. An Integrated flow to abolish over-process of re-verification/inspection, waiting along the returning process

8. Water Strider: Identify a group of operators work as Water Strider. Separated the job function from normal assembly line operator

9. Work Standard and Combination Sheet: Define the work instructions and work route for all Water-Strider

10. 5 No's - No thinking, No searching, No counting, No checking, No waiting

How to Track Supermarket Implementation?


Supermarket Evaluation Check-list


Self Assessment for Supermarket


Inventory Tracking Sheet

Inventory Tracking Sheet


Discussed in “Lean Thinking” by James Womack

Further developed and documented by theLean Enterprise Institute of Brookline, Ma. as “Learning to See”

Find additional information at: www.Lean.Org

Where to Learn More

69

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