Lean ManufacturingEric HongShari SledgeMichelle Woeste

AgendaBackgroundToyota Production SystemKey Lean TechniquesAdvantages and DisadvantagesPeople and CustomersEconomicsChanges in LeanCurrent Lean PracticesCase Studies

DefinitionLean Manufacturing A way to eliminate waste and improve efficiency in a manufacturing environment Lean focuses on flow, the value stream and eliminating muda, the Japanese word for wasteLean manufacturing is the production of goods using less of everything compared to traditional mass production: less waste, human effort, manufacturing space, investment in tools, inventory, and engineering time to develop a new product

Lean and Just-in-TimeLean was generated from the Just-in-time (JIT) philosophy of continuous and forced problem solving Just-in-time is supplying customers with exactly what they want when they want itWith JIT, supplies and components are pulled through a system to arrive where they are needed when they are needed

What is Waste? Waste is anything that happens to a product that does not add value from the customers perspectiveProducts being stored, inspected or delayed, products waiting in queues, and defective products do not add value

Seven WastesOverproduction producing more than the customer orders or producing early. Inventory of any kind is usually waste. Queues idle time, storage, and waiting are wastesTransportation moving material between plants, between work centers, and handling more than once is wasteInventory unnecessary raw material, work-in-process (WIP), finished goods, and excess operating suppliesMotion movement of equipment or people Overprocessing work performed on product that adds no valueDefective product returns, warranty claims, rework and scrap

OriginsLean Manufacturing is sometimes called the Toyota Production System (TPS) because Toyota Motor Companys Eiji Toyoda and Taiichui Ohno are given credit for its approach and innovations

Underlying Principles to TPSWork shall be completely specified as to content, sequence, timing, and outcomeEvery customer-supplier connection, both internal and external, must be direct and specify personnel, methods, timing, and quantity of goods or services providedProduct and service flows must be simple and direct goods and services are directed to a specific person or machineAny improvement in the system must be made in accordance with the scientific method at the lowest possible level in the organization

Toyota Production SystemSince the Toyota Production System requires that activities, connections, and flow paths have built-in tests to signal problems automatically, gaps become immediately evident. Results of the TPS are improvements in reliability, flexibility, safety, and efficiency.These lead to increase in market share and profitability.

Timeline

Key Lean Manufacturing Techniques5S

Single Minute Exchange of Dies

Kanban

Cellular Manufacturing

5SStrategy for creating a well organized, smoothly flowing manufacturing process

5S ExamplesBeforeAfter

Benefits of 5SIncreases organization and efficiencyAvoids wasted motionIncreases safetyEliminates unnecessary inventoryOffers improvements at an inexpensive cost

5S DrawbacksIf not fully implemented, may result in Jive SStore thingsStick to the rulesSuperficially cleanSwitch to new fixturesServe reluctantly

Can not be considered an end goal must be part of a continuous improvement movement

Single Minute Exchange of Dies (SMED)Method that focuses on the rapid conversion from manufacturing one product to the next

SMED Examples

Benefits of SMEDIncreases throughput by reducing setup timesEliminates setup errorsIncreases safetyReduces the cost of setupsReduces waiting times and inventory buildupsDecreases the required skill level of the operators

KanbanA system that uses replenishment signals to simplify inventory managementSignals (usually cards) hold product detailsWhat to make, when to make it, how much to make, and where to send itCards stay attached to a bin that holds the productWhen bin is empty, it is returned to the start of the assembly line for replenishmentFull bins are returned to the customer, and the cycle continues

Kanban ExampleSupermarket Ordering System

Benefits of KanbanHighly visible systemsSimple, effective, and inexpensiveReduces inventory and eliminates stock-outsImproves the quality of serviceImproves lead times

Cellular ManufacturingDividing the manufacture of products into semi-autonomous and multi-skilled teams known as work cells

Cellular Manufacturing ExampleFunctional Layout

Cellular Layout

Benefits of Cellular ManufacturingSimplifies material flow and managementReduces interdepartmental travelReduces throughput timeReduces lot sizesSimplifies scheduling

Lean Manufacturing Advantages and DisadvantagesAdvantages:Increased overall productivityReduced amount of floor space requiredReduced manufacturing lead timeImproved flexibility to react to changesImproved qualityDisadvantages:Difficulty involved with changing processes to implement lean principalsLong term commitment requiredVery risky process - expect supply chain issues while changing over to lean

PeopleTransition to Lean is difficult since a company must build a culture where learning and continuous improvement are the norm. Success of lean requires the full commitment and involvement of all employees and of the companys suppliers.

How People Benefit from Lean

ElementTraditionalLeanImprovementCommunicationSlow & UncertainFast & PositiveQuality & CoordinationTeamworkInhibited EnhancedEffective TeamsMotivationNegative, ExtrinsicPositive, IntrinsicStrong MotivationSkill RangeNarrowBroadJob EnrichmentSupervisionDifficult and FragmentedEasy & LocalizedFewer Supervisors

How Customers Benefit from Lean

House of Lean

EconomicsReduction of InventoryLess space necessary to hold inventoryReduced Waste Decreased Production CostIncreased market share Able to provide what the customer wants quicklyIncreased competitive advantage Faster response to the customer Lower CostHigher Quality

Changes in Lean since the beginning

Inventory ComparisonInventory Turnover annual cost of goods sold from the income statement divided by the value of inventory from the balance sheet

Quality Control6 sigma processCombination of old and new ideas6 ingredientsGenuine focus on the customerData- and fact-driven managementProcess focus, management, and improvementProactive managementBoundarlyless collaborationDrive for perfection, tolerance failure

Lean Maintenance

A Simultaneous Approach

6 Tools for Lean MaintenanceVisual Controls5SSeven WastesSingle Minute Exchange of DiesPoka-yokeTotal Productive Maintenance

Other impacts of LeanBell South service industryManagement system and operations ControlProcess management, work measurement, management control, and people developmentCombines lean and 6 sigmaWoburn Safari ParksFeed logisticsAnimal Resource Planning

BackgroundPoli-film America Inc. a division of a German owned company. Manufactures protective masking that prevents abrasion and staining of exposed surfaces during manufacturing and deliveryIndustries Using Material:PlasticsAutomotivesConstructionElectronicsLaminatesFurnitureTextilesHigh demand product24/7 production

ProblemsAn enterprise resource planning system that encompassed an unstable databaseThe database was untrustworthy account of inventory, hand counts were necessary to confirm the numbers counted by computersLed to many employees spending many hours and led to low processing and limit of work utilization Lack of frequency in supplies and storage errors in production and set limitsUnable to trace itemsMain concern programs ability to adapt to changing processes and production goals while still maintaining inventory traceability real time data with multiple distribution sites

ResultsChose a new program to implement in later 2003

Greatest impact on companys inventory flow and order distributionReal time traceability allowed him to cut down on the 2 mil lbs of film and other materials by more than half and maintain a sufficient safety stock for when its time to reorder and restock

Benefits through LeanTime and money has seen dramatic cuts Instead of 20 min to fill an order, takes less than 5 min currentlyAllowed company to expand for more regional coverageBeen simplified for reportsReduce time taken to accomplish certain tasks and add more responsibilities

Questions?

***Usually moves in a u shape**Figure 1 page 27 dec 2005

Best feature (company to company collaboration)Internal collaboration

Toyota vs. dell/wal-mart

Kanban converting to RFid?Show Figure 2

Toyota still most respected for quality and popularity, inventory results suggest that things are missing from the company's lean tool setDell has annual improvement

Strategies for optimizing asset performanceFinancial value generated or enabled by physical assets.Physical assets industrial facilities, manufacturing facilities, and equipment

In stead of demanding financial improvements, cut heads and le those figure out, proper way is to find work process improvements to drive improved results and financial

Best approach is to focus on lean, maintenance, and reliability improvements simultaneously

Stabilize production processes through equipment and process reliability while we challenge WIP , raw material and finished good buffers

Process stability - By improving enable tight alignment btwn takt time and flow times, converted into smaller buffers, smaller overall cycle times and higher machine utilization

Visual controls visible indicators for status, workorder, etc.5s - Sorting. Refers to the practice of going through all the tools, materials, etc., in the work area and keeping only essential items. Everything else is stored or discarded. Simplifying. Focuses on the need for an orderly workplace. Sweeping, Systematic Cleaning, or Shining Standardizing. This refers to standardized work practices. Sustaining. Refers to maintaining and reviewing standards. Seven Wastes anything customer wont pay for is a waste:SMED Poka-yoke mistake proofingTPM preventive maintenance, total QC, employee involvement, task sharing and maintenance

Challenged buffers smaller buffers, fewer defects process yield will increase creating complementary reduction in mtfg costs. Focus planted in the management of people processes within the maintenance function to eliminate waste and drive process reliability.

Unable to maintain the automatic efficiency needed throughout the manufacturing processInaccuracies in information slowed production time and created inconsistencies for final productGot to a point where couldnt trust system