September 10

Lean Management:
Fundamentals and Applications The Fundamentals of Lean

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

July, 24
24,, 2010

LEAN IS NOT

“The real voyage of discovery consists • A cookie cutter approach to improvement.

not in making new landscapes but in Companies must apply the appropriate Lean
having
g new eyes.”
y principles for their industry and specific
company situation.

–Marcel Proust (1871-1922), Novelist • Something that a company does once.

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

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 September 10

DEFINING LEAN KEY CONCEPTS

“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 • Waste Reduction
perfection” • Lead Time Reduction
--The MEP Lean Network • Variation Reduction
• Product Flow
ANOTHER DEFINITION • Pull of the Customer
“A manufacturing philosophy that shortens the time line • Continuous Improvement
between the customer order and the shipment by eliminating
waste (non-value-adding activities).”

What is the Lean Manufacturing?

Value Stream Focus & Lead Time Reduction of 7 kinds of waste (MUDA)

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 September 10

What is the Lean Manufacturing?

Reduction of 7 kinds of waste (MUDA)
Value
added LEAN = ELIMINATING THE WASTES
5
%
• Overproduction
• Defects
• Non value added processing
Non-value
& Underutilized people
• Waiting
• Excess motion
Non-value • Transportation
added • Excess inventory

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

REDUCING INVENTORY WITHOUT

INVENTORY HIDES PROBLEMS SOLVING PROBLEMS

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 September 10

Benefits of lean manufacturing

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

LEAN BUILDING BLOCKS Lean Tools: Value Stream Mapping

“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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 September 10

Lean Tools: Value Stream Mapping Lean Tools: Value Stream Mapping

Lean Tools: Value Stream Mapping Lean Tools: Value Stream Mapping
CURRENT VALUE STREAM MAP
May 2008 ~ April 2009
INDUSTRIAL METHODS DEPT.
MODEL 6 PRODUCTION LINE
Simplified Logical Flow Chart
PRODUCTION Design Project
Engineering Manager
PLANNER *Submittals
*Master Plan *In vo icing
*Delayin g *BOM
*Clarification
Rep o rt *EMR
*MMR
SUPPLIERS *ECN CUSTOMERS
Supply
Chain
*Purch ase
*IGI Req . Manager Quality Ord er
*Mat'l Req ./
Issuan ce Control
*Dlvry.Note *IGI Repo rt
*Packin g List *Defect Rp rt.
*P.O. *Fin al Inspn.
PRODUCTION *In co mplete
MANAGER Wo rk Report
*I.D. Card *NCR
*In p ro cess
In sp ection
*EOM

Receiving Bucket Bucket Panel Line- QC

5.8mon. QC IGI FAT Packing Delivery
material As s em bly 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/ To tal
Traveled time
distance Traveled
174.1m f rom WIP is distance 197m, I.E. = 22 %
more Fab'n to Panel
Nb of Operations : 56 Nb of Operations : 17 than wiring.

Nb of Inspections : 24 Nb of Inspections : 4 Metrics

Steps w/in Process
Total Consumed Reg.Time
Value
75
9527
UOM
steps
minutes
SO24444
5
96
8
200
14
546
15
6752
10
1048
5
300
7
300
10
270
1
15
Total Cons umed 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
Nb of Movements/ Day : 175 Nb of Movements/ Day : 21 Traveled time (distance)
No.of Workers
368
20
minutes
persons
193
2
30
1
48
2
0
7
6
2
46
1
0
2
30
2
15
1

Meters Walked / Day : 10 725 m Meters Walked / Day : 1 836 m 175 days ave. days 1 1 5 6 5 1 1 1 0.5
Production Lead Time (days)
21.5
From BOM to In-house Total Consumed Tim e in min
minutes 145 275 1916 2583 2164 376 163 150 30 7800
16.3 days

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 September 10

Lean Tools: Value Stream Mapping Lean Tools: Cell Continuous Flow
FUTURE VALUE STREAM MAP
2009 ~ 2010
INDUSTRIAL METHODS DEPT.
MODEL 6 PRODUCTION LINE

PRODUCTION Design Project

*Master Plan
PLANNER *Submittals
Engineering Manager
*Invoicing
E F G
*Delaying *BOM
*Clarification
Report *EMR
*MMR

‰Cell
SUPPLIERS *ECN CUSTOMERS
Supply S/E
Chain
*Purchase
*IGI Req. Manager Quality Order
*Mat'l Req./
Issuance Control
*Dlvry.Note *IGI Report
____
mo n.
*Packing List
*P.O.
PRODUCTION
*Defect Rprt.
*Final Inspn. H
*Incomplete
MANAGER
*I.D. Card
Work Report
*NCR D
I

S/

S/E
E
*In process

‰Continuous Flow Production

Inspection
*EOM
C
J

S/
S/

E
E
K
Receiving
QC IGI
Bucket Bucket Panel Line- QC
FAT Packing Delivery
B
L

S/
E
material As s em bly Wiring up Testing

S/
E
New Factory Layout of
Product Lines WIP I I I I I
A
Dista nce Travele d MODEL6
should M
1 1 1 1 1
CURRENT 538.9 m.
Increase
FUTURE 336.6 m.
to 10
Target Industrial
Ef f iciency (I.E.) =
V.A.time/ Total
Traveled time
Traveled
distance distance 99.0
92.2m. f ro m

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 Cons umed OT 17699 minutes
Changeover Time 239 minutes

Finished
VA time 8315 minutes
Distance traveled 203 minutes 71 30 48 0 6.0 7 0 23 18
No.of Workers 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

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

22

Lean Tools: Versatility & multi-skill Lean Tools: One Piece Flow

‰ Mixed Modeling

‰ Multi-function Workers ‰ One Piece Flow

‰ Multi-skilled Workers ‰ Order For Order

‰ Shojinka

23 24

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 September 10

Lean Tools: Kaizen Blitz Lean Tools: Push vs Pull

‰ Kaizen.
‰ Process Kaizen. ‰ Pull Signal.

‰ System Kaizen. ‰ Pull System.

‰ Kaizen Blitz. ‰ Push System

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

25 26

Push PUSH SYSTEM

Information Flow

WIP WIP Fin. Goods

Process Process Process
Supplier Raw Custome
A B C
Matl r

Part Flow

Pull 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

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 September 10

KANBAN : Kanban = Signal

PULL SYSTEM Kanban

Locations

Signals when to do work • Information Flow

Signals what work to do •

Signals when not to do •
Process Process Process
work S
Supplier
li Raw
Matl
A B C Fi Goods
Fin. G d C t
Customer

Controls inventory •

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

carts, golf balls, marked-off spaces (kanban squares),
Execution - Parts produced upstream as signaled from the downstream operation or customer
etc. 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

Lean Tools: Kanban System

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.

32

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 September 10

Lean Tools: 5S System Lean Tools: 5 S System

33

Lean Tools: Ergonomics Lean Tools: Poka Yoke

‰ What is Poka Yoke?

‰ Definition of
Ergonomics. “Zero Defect”:
Source Inspection and
‰ Ergonomics Zone. the Poka-Yoke System”
By Shigeo Shingo

Remember three rules

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

35

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 September 10

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
Lean Tools: Visual Management

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 September 10

Lean Vs. Six Sigma

LEAN MANUFACTURING
Optimizing industrial processes.
The Fundamentals of Lean

SIX SEGMA What is a Value Stream Map (VSM)

Mastering all processes in order to satisfy the
Practical Examples
p
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

Before and After of 5S system Reduce Transport/Motion

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IMPACT ON SURFACE
IMPACT ON SAVING
Manpower : 15 people
Production lead Time : 17.8 days
Process Time : 29 min
Safety issues : 13 issues
September 10
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 INDUSTRIAL EFFICIENCY
Manpower : 9 people
Production lead Time : 3 days
Process Time : 24.5 min
Safety : Rectified all 13 issues
IE= 29% in Year 2008 IE= 48% in Year 2009
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