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Understanding Lean Principles

Evandro MINATO, MS

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Different names same aims

Kaizen
Project
Mngt

BPM

TOC

Six
Sigma
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TPS

Lean

VT Session: Understanding Lean Principles

Different names same aims

DMAIC

8D

?
A3

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Kaizen

Gantt

VT Session: Understanding Lean Principles

Timeline
1776

1931

Adam Smith

1961

Walter Shewhart

The Wealth of
Nations

Tagushi

Statistic Process Control

Six Sigma

Quality Circles

Vilfredo Pareto

1934

Paretos Law (80-20)

1951

Maynard MOST

1913

J. Juran

Maynard Operation
Sequence Technic

Henry Ford

Quality
Control
Handbook

Highland Park
Moving LIne

1909

Henry Gantt

1st motion study

Feigenbaum

1990

TQC

Jim Womack
Lean

Forrester

Eli Whitney

Gantt Chart

1946
ISO

Ishikawa
Root Cause Chart

1973

Taiichi Ohno

JIPM

1971

Edwards Deming

Wilson EOQ Formula

PDCA in JJapan

Friedrich Taylor
Principle of Scientific Mngt

Shingo
SMED

Visit Ford Factory

Ford Harris

Interchangeable
Parts

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TPM

1985

Eiji Toyoda

1915

1911

BPM

Industraial Dynamics

TPS strikes

1801

2001

1950

1922

Gilbreth

The Machine
That Changes
the World

Bill Smith

Ishikawa

1883

1991

1983

DOE

Walmart

1955
1945

Toyota JIT Concept

Point of Safe
EDI, QR, FMG

1984

Goldratt
TOC
The Goal

2000

Hajime Yamashina
WCM

J. Juran
TQC in Japan

Just In TIME

VT Session: Understanding Lean Principles

What is the target?

QCD

Quality
Cost
Delivery
See: http://www.rtdonline.com/BMA/MM/qcd.htm

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VT Session: Understanding Lean Principles

How reach the Goal?

Lean Manufacturing

Or
Six Sigma

Lean Manufacturing

Lean Six Sigma

TOC
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Lean Culture
Lean management

WCM

Quality Assurance

TPM
TQM

VT Session: Understanding Lean Principles

Digitization
BPM
7

Origins
Shewhart
Deming

TPS

Ford
Taylor
JAPANESE CULTURE
FOCUSED IN TEAM
WORKING AND
RESOURSES SAVING

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VT Session: Understanding Lean Principles

JAPANESE
MANAGEMENT
MODEL

Origins

QUALITY

PRODUCTIVITY

TPS

TEAM WORK

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VT Session: Understanding Lean Principles

Origins

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Goals

Zero Accidents

Zero Defects

Zero Breakdowns

Zero Delays

Zero Changeovers

Zero Inventory

Zero Waste

See: http://journal-archieves36.webs.com/263-276dec.pdf
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The 3 Ms: Muri, Mura, Muda

Muda (waste), Muri (overburden) and Mura (un-evenness)

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Losses and Wastes Definitions

Losses

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not effectively used INPUTS

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Losses and Wastes Definitions

Wastes

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Excess amount of INPUT

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The 7 Classical Wastes meet Tim Wood!

Transportation

Waiting
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Inventory

Over-Production

Motions

Over-Processing

VT Session: Understanding Lean Principles

Defects
15

The 7 Classical Wastes meet Tim Wood!

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The MAIN Villain - Inventory

INVENTORY =SAFETY!

Movements

Movements

OverProduction

OverProduction
OverProcessing

Transportation
Defects

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OverProcessing

Transportation
Defects

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And it worked very

well for Toyota
Motors and the
Japanese Culture!
and everyone lived happily ever after!

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Ocidental Origins

TPS

OCIDENTAL
CULTURE

JAPANESE
MANAGEMENT
MODEL

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UNIVERSAL
MODEL OF
COMPETITIVE
MANAGEMENT

OTHER INGREDIENTES :
ISO 9000, VDA, European
Quality Models...
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Ocidental Origins
Work Content Division
(A. Smith)
Interchangeable Parts
(E. Withney)

LEAN
(J. Womack)
Mass Production
(H. Ford)

Standardized Work
(F. Taylor)
PDCA
(E. Deming)

Autonomation
(Sakichi Toyoda)

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TPS
(T. Ohno)

Toyota Motors
(Kiichiro Toyoda)
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So, What is Lean?

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VT Session: Understanding Lean Principles

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So, What is Lean?

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So, What is Lean?

A production system derived from TPS;
That uses concepts, tools and technics known in most companies such as:

SMED

Visual Management

Production Cells

TPM

So, What is the Difference??

Lean manufacturing uses the concepts in an integrated way.
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Lean Results
Lean works with a wide range of concepts, creating a wide range of results.
Some direct result of the elimination of waste:

-time delivery to the end customer;

the Labor productivity;
the equipment availability;
the flexibility of the production process;
the in-process inventory and release of working capital;
the final product quality.

Magnitude of improvement may vary obtained 15% to 50% depending on the indicator.

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VT Session: Understanding Lean Principles

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Lean Results
The project returns can be observed in 2 ways:
Hard Savings - Savings for the company measured financially :
Labor;
Manufacturing Area;
Stocks in Process (WIP);
Time Machine;
And others.

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Lean Results
The project returns can be observed in 2 ways:

Soft Savings - Advantages that the company gets that are not subject to
financial measure or resources that are not used at the time :

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Management Facility;
Preparation of the team;
Organization of the work environment;
Gain unused area;
Increase in the value stream;
And others.

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The Value Stream

Information
Material
$$$$$
Reverse
Flow

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Time is Money
Lean for Lead Time Reduction!
Make each process produces only what and at what time the next process needs.
Coordinate operations to approach this ideal increasingly continuously reducing the
lead time.
ORDER

REVENUES

"All we're trying to do is reduce the timeline

Taiichi Ohno
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Time is Money

Raw
Material
Payment

Revenue
from
Sales
Tempo

Raw
Material
Purchased

Raw
Material
Received

Start of
Production

Finished
Goods

Produc
t Sell

Available
for the
Client

Leat Time Reductin reduces the need for working capital, with no changes in purchasing
payment terms and sales receipts.
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Company

Customers

Supliers

Working Together (TOC Lean Sigma)

Value Stream System

Grandi (2013)
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Working Together (TOC Lean Sigma)

Customers

Company

Material Flow

Supliers

Lead Time

My Real System
Grandi (2013)
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Company

Desired System
99.9999997% OK
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VT Session: Understanding Lean Principles

Customers

Supliers

Working Together (TOC Lean Sigma)

Grandi (2013)
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Supliers

Customers

Working Together (TOC Lean Sigma)

Desired System
Greater Flow
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VT Session: Understanding Lean Principles

Grandi (2013)
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Supliers

Customers

Working Together (TOC Lean Sigma)

Desired System
Shorter Lead Time
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VT Session: Understanding Lean Principles

Grandi (2013)
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Company
Company

Desired System
Shorter Lead Time
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VT Session: Understanding Lean Principles

Customers

Supliers

Working Together (TOC Lean Sigma)

Grandi (2013)
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Working Together (TOC Lean Sigma)

Philosofy

Technics

Tools

System

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Examples .

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How to Start Lean Implementation?

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Thanks!

Evandro MINATO
minato@lmlab.us
540 209 1557
www.linkedin.com/in/evandrominato

www.facebook.com/LMLab.br/

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