August 10

Lean Management:
Fundamentals and Applications

Prepared By:
Ashraf S. Youssef, Ph. D.
QA & Ind. Methods Manager
S.M. ASQ, L.A. BSI, M. ELI, M. EMS

July, 24, 2010

The Fundamentals of Lean

Lean Tools

Practical Examples

“The real voyage of discovery consists

not in making new landscapes but in
g new eyes.”
having y

–Marcel Proust (1871-1922), Novelist

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LEAN IS NOT

• A cookie cutter approach to improvement.

Companies must apply the appropriate Lean
principles for their industry and specific
company situation.

• Something that a company does once.

Lean is NOT an end point; it is a never
ending improvement process. Lean is a
journey.

DEFINING LEAN
“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”
--The MEP Lean Network

ANOTHER DEFINITION
“A manufacturing philosophy that shortens the time line
between the customer order and the shipment by eliminating
waste (non-value-adding activities).”

KEY CONCEPTS

• Waste Reduction
• Lead Time Reduction
• Variation Reduction
• Product Flow
• Pull of the Customer
• Continuous Improvement

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Value Stream Focus & Lead Time

What is the Lean Manufacturing?

Reduction of 7 kinds of waste (MUDA)

What is the Lean Manufacturing?

Reduction of 7 kinds of waste (MUDA)

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Value
added LEAN = ELIMINATING THE WASTES
5
%
• Overproduction
• Defects
• o a ue added processing
Non-value p ocess g
& Underutilized people
• Waiting
• Excess motion
Non-value • Transportation
added • Excess inventory

Typically 95% of Total Lead Time is Non-Value Added!!!

INVENTORY HIDES PROBLEMS

REDUCING INVENTORY WITHOUT

SOLVING PROBLEMS

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Benefits of lean manufacturing

• Reduced lead time, delivery time, cycle time and set-up time
• Eliminates waste
• Increases overall customer satisfaction
• Optimized space usage
• Increased
I d productivity
d ti it
• Improved product quality
• Improved on-time shipments
• Improve employee involvement, morale, and company culture.
• Seeks continuous improvement

The Fundamentals of Lean

Lean Tools

Practical Examples
p

LEAN BUILDING BLOCKS

“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”
--The MEP Lean Network
Continuous Improvement

Quick Quality at
Pull/ Kanban Cellular/Flow
Changeover Source

Plant Layout Batch Reduction TPM

Standardized Visual
5S System POUS
Work Systems
Value
Stream
Teams/Employee Involvement Mapping

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Lean Tools: Value Stream Mapping

Lean Tools: Value Stream Mapping

Lean Tools: Value Stream Mapping

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Lean Tools: Value Stream Mapping

Simplified Logical Flow Chart

Nb of Operations : 56 Nb of Operations : 17
Nb of Inspections : 24 Nb of Inspections : 4

Nb of Movements/ Day : 175 Nb of Movements/ Day : 21

Meters Walked / Day : 10 725 m Meters Walked / Day : 1 836 m

Lean Tools: Value Stream Mapping

CURRENT VALUE STREAM MAP
May 2008 ~ April 2009
INDUSTR IAL ME THODS DEP T.
MODEL 6 PRODUCTION LINE

PRODUCTION Design Project

Engineering Manager
*Master Plan
PLANNER *Submittals
*Invoicing
*Delay ing *BOM
*Clarifi cation
Report *EMR
*MMR
SUPPLIERS *ECN CUSTOMERS
Supply
Chain
*Purchase
*IGI Req. Manager Quality Order
*Mat'l Req./
Issuance Control
*Dlvry.Note *IGI Report
*Pac king List *Defect Rprt.
*P.O. *Final Inspn.
PRODUCTION *Inco mplete
MANAGER Work Report
*I.D. Card *NCR
*In process
Inspection
*EOM

Receiving Bucket Bucket Panel Line- QC

5.8mon. QC IGI FAT Packing Delivery
material Assembly Wiring up Testing

I I I I I I
Job Order J201706 (in 3 batches) 2nd Batch
No.of Shop orders 20 6 4 3 6 6 6
Sections # 204 52 51 43 52 52 52
Buckets # 365 77 75 68 77 77 77

Industrial Ef f iciency
= V.A.time/ Total
Traveled time
distance Traveled
174.1m f rom WIP is distance 197m, I.E. = 22 %
more Fab'n to Panel
than wiring .

Metrics Value UOM SO24444

Steps w/in Process 75 steps 5 8 14 15 10 5 7 10 1
Total Consumed Reg.Time 9527 minutes 96 200 546 6752 1048 300 300 270 15
Total Consumed OT 17699 minutes 3218 11263 3218
Changeover Time 239 minutes 0 45 19 64 56 30 25 0 0
VA time 8315 minutes 0 0 1074 6049 1192 0 0 0 0
Traveled time (distance) 368 minutes 193 30 48 0 6 46 0 30 15
No.of Workers 20 persons 2 1 2 7 2 1 2 2 1

Production Lead Time (days)

175 days ave. days 1 1 5 6 5 1 1 1 0.5 21.5
From BOM to In-house Total Consumed Time in min
minutes 145 275 1916 2583 2164 376 163 150 30 7800
16.3 days

Lean Tools: Value Stream Mapping

FUTURE VALUE STREAM MAP
2009 ~ 2010
INDUS TRIA L ME THODS DEPT.
MODEL 6 PRODUCTION LINE

PRODUCTION Design Project

Engineering Manager
*Master Plan
PLANNER *Submittals
*Invoicing
*Delay ing *BOM
*Clarification
Report *EMR
*MMR
SUPPLIERS *ECN CUSTOMERS
Supply
Chain
*Purc hase
*IGI Req. Manager Quality Order
*Mat'l Req./
Issuanc e Control
*Dlvry.Note *IGI Report
____ *Packin g List *Defec t Rprt.
*P.O. *Final Inspn.
mon. PRODUCTION *Incomplete
MANAGER Work Report
*I.D. Card *NCR
*In process
Inspection
*EOM

Receiving Bucket Bucket Panel Line- QC

QC IGI FAT Packing Delivery
material Ass embly Wiring up Testing

Ne w Factory Layout of
Product Line s WIP I I I I I
should
Dista nce Tra veled MODEL6
1 1 1 1 1
CURRENT 538.9 m.
Increase
FUTURE 336.6 m.
to 10
Target Ind ustrial
Ef f iciency (I.E.) =
V.A.time/ Total
Traveled time
Traveled
distance distance 99.0
92.2m. f rom

Metrics Value UOM

Steps w/in Process 75 steps 5 8 14 15 10 5 7 10 1
Total Consumed Reg.Time 9527 minutes
Total Consumed OT 17699 minutes
Changeover Time 239 minutes
VA time 8315 minutes
Distance traveled 203 minutes 71 30 48 0 6.0 7 0 23 18
No.of W orkers 20 persons 2 1 2 7 2 1 2 2 1

Production Lead Time (days)

days 0 0 0 0 0 0 0 0 0 0.0
Total Consumed Time in min
minutes 0 0 0 0 0 0 0 0 0 0
0.0 days

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Lean Tools: Cell Continuous Flow

E F G

‰Cell
S/E

H
D
I
S/

S/E
E

J
C
‰Continuous Flow Production
S/
E
S/
E

K
B
L
S/
E

S/
E

A
M

Finished
Products

22

Lean Tools: Versatility & multi-skill

‰ Mixed Modeling

‰ Multi-function Workers

‰ Multi-skilled Workers

‰ Shojinka

23

Lean Tools: One Piece Flow

‰ One Piece Flow

‰ Order For Order

24

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Lean Tools: Kaizen Blitz

‰ Kaizen.
‰ Process Kaizen.

‰ System Kaizen.

‰ Kaizen Blitz.
‰Typical Examples:
‰ Batch to one piece flow.
‰ Total Cycle time reduction
‰ Elimination of “x” defect.
‰ Standard Operation Improvement.

25

Lean Tools: Push vs Pull

‰ Pull Signal.

‰ Pull System.

‰ Push System

26

Push

Pull

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PUSH SYSTEM
Information Flow

WIP WIP Fin. Goods

Process Process Process
Supplier Raw Custome
Matl A B C
r

Part Flow

Execution - Parts completed to schedule without any downstream

considerations
Replenishment - Based on projected demand (forecasts)
Shop Floor Control - System, transactions, paperwork
Problems - Hidden
Reaction to changes and problems - Through system - rescheduling
Linkage - Operations are NOT physically linked

KANBAN : Kanban = Signal

Signals when to do work •

Signals what work to do •
Signals when not to do •
work
Controls inventory •

Kanban signaling device, “kanban,” can be cards,

carts, golf balls, marked-off spaces (kanban squares),
etc.

PULL SYSTEM Kanban

Locations
Information Flow

Process Process Process

S
Supplier
li Raw Fi Goods
Fin. G d C t
Customer
A B C
Matl

Part Flow

Execution - Parts produced upstream as signaled from the downstream operation or customer
Replenishment - Based on consumption
Shop Floor Control - Automatic - visible
Problems - Exposed - creates urgency
Reaction to changes and problems - Immediate - on-line and visible
Linkage - Operations ARE physically linked

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PULL SYSTEM Kanban

Locations

Information Flow

Process Process Process

Supplier Raw Customer
A B C
Matl

Part Flow

Make to Order and Engineer to Order Shops, by

definition, operate by PULL since nothing is produced
until an order from the customer is received.

Lean Tools: Kanban System

32

Lean Tools: 5S System

33

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Lean Tools: 5 S System

Lean Tools: Ergonomics

‰ Definition of
Ergonomics.

‰ Ergonomics Zone.

35

Lean Tools: Poka Yoke

‰ What is Poka Yoke?

“Zero Defect”:
Source Inspection and
the Poka-Yoke System”
By Shigeo Shingo

Remember three rules

Don’t Accept
Don’t make defects Don’t pass defects
Defects

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Lean Tools: Poka Yoke

VISUAL CONTROLS

Simple signals that provide an immediate understanding

of a situation or condition.
Examples:
• Shadow boards for tools, supplies, and safety
equipment
• Color
C l codingdi
• Lines on the floor to delineate storage areas, walk
ways, work areas, etc.
• Marks to indicate correct machine settings
• Andon lights
• Kanban cards

VISUAL MEASUREMENT

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Lean Tools: Visual Management

Lean Vs. Six Sigma

LEAN MANUFACTURING
Optimizing industrial processes.

SIX SEGMA
Mastering all processes in order to satisfy the
Customer’s needs and to reduce Non Quality
Costs.
LEAN Target of Lean Target of 6 Sigma 6 SIGMA
• Increase the productivity • Assure the Quality of process:
Customer Satisfaction & Reduction
• Reduce wastes & delays NQC
• Improve shop floor Managerial • Reduce the process variability
relationship
• Improve the control process

The Fundamentals of Lean

What is a Value Stream Map (VSM)

Practical Examples
p

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Before and After of 5S system

43

Reduce Transport/Motion

IMPACT ON SURFACE

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IMPACT ON PROCESS FLOW

Nb of Movements/ Day : 29 Nb of Movements/ Day : 8

Meters Walked / Day : 10,190 m Meters Walked / Day : 495 m

IMPACT ON SAVING

Manpower : 15 people Manpower : 9 people

Production lead Time : 17.8 days Production lead Time : 3 days
Process Time : 29 min Process Time : 24.5 min
Safety issues : 13 issues Safety : Rectified all 13 issues

IMPACT ON INDUSTRIAL EFFICIENCY

IE= 29% in Year 2008 IE= 48% in Year 2009

48

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