Lean Manufacturing Overview PDF

Lean Overview
Lean Manufacturing Series
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Contents
•  Introduction
•  Background and History
•  Components and Implementation
▫  5S & Visual Factory
▫  Cellular Manufacturing
▫  Jidoka
▫  Kaizen
▫  Poka Yoke & Mistake Proofing
▫  Quick Changeover & SMED
▫  Production Preparation Process (3P)
▫  Pull Manufacturing & Just In Time
▫  Standard Work
▫  Theory of Constraints
▫  Total Productive Maintenance
▫  Training Within Industry (TWI)
▫  Value Streams
•  Knowledge Check
Introduction
•  What is Lean?
▫  Lean focuses on eliminating waste in processes (i.e. the waste
of work in progress and finished good inventories)
▫  Lean is not about eliminating people
▫  Lean is about expanding capacity by reducing costs and
shortening cycle times
▫  Lean is about understanding what is important to the customer
•  Thinking Lean
▫  Specify value from the perspective of the ultimate customer
▫  Identify the value stream to expose waste
▫  Create flow to reduce batch size and work-in-process
▫  Make only what the customer has ordered
▫  Seek perfection by continuously improving quality and
eliminating waste
Types of Waste
•  Overproduction
•  Excess inventory
•  Defects
•  Non-value added processing
•  Waiting
•  Underutilized people
•  Excess motion
•  Transportation

Lean vs. Traditional Processes
•  Half the hours of engineering effort
•  Half the product development time
•  Half the investment in machinery, tools and equipment
•  Half the hours of human effort in the factory
•  Half the defects in the finished product
•  Half the factory space for the same output
•  A tenth or less of in-process inventories
•  Smaller lot sizes
•  Increased capacity / throughput
•  Higher inventory turns
•  More available floor space
Source: The Machine that Changed the World, Womack, Jones, and Roos, 1990.

Lean vs. Traditional Processes (cont.)
•  Improved workplace organization

•  Improved quality : reduced scrap / re-work
•  Reduced inventories : raw, WIP, FG
•  Reduced lead times
•  Greater gross margin
•  Improved participation & morale
Source: The Machine that Changed the World, Womack, Jones, and Roos, 1990.

Background and History
•  1574: King Henry III watches the Venice Arsenal
produce finished galley ships every hour using
continuous flow processes
•  1799: Whitney perfects the concept of interchangeable
parts
•  1902: Sakichi Toyoda establishes the jidoka concept
•  1910: Ford moves into Highland Park, the “birthplace
of lean manufacturing,” with continuous flow of parts
•  1938: JIT concept established at Toyota
•  1940: Consolidated Aircraft builds one B-24 bomber per
day, witnessed by Ford’s Charles Sorensen, who later
improves production to one B-24 per hour
Background and History (cont.)
•  1949: Taiichi Ohno promoted to shop manager at

Toyota, develops “elimination of waste” concept
•  1951: Ohno refines TPS to include visual control,
employee suggestions, TWI, batch size reduction, and
kanban
•  1965: Toyota receives Deming Prize for Quality
•  1975: First English translations of TPS are drafted
•  1980-83: First books on TPS by American authors:
Kanban and Zero Inventories
•  1990: Womack and Jones publish The Machine That
Changed the World, becoming the definitive text
creating the term “lean”, followed by Lean Thinking in
1996

Key figures in lean history
•  Henry Ford
▫  Founder of the Ford Motor Company and father of modern
assembly lines used in mass production.
•  Taiichi Ohno
▫  Long-time employee of Toyota, and author of several books
about the Toyota Production System.
•  Shigeo Shingo
▫  A Japanese industrial engineer who became a leading expert on
the Toyota Production System. More than a dozen of his books
were translated into English, resulting in him being better
known in the West than in Japan.
•  James Womack
▫  Author of The Machine That Changed the World and Lean
Thinking, which jump-started the lean movement in North
America

Components and Implementation
•  5S & Visual Factory
•  Cellular Manufacturing
•  Jidoka
•  Kaizen
•  Poka Yoke & Mistake Proofing
•  Quick Changeover & SMED
•  Production Preparation Process (3P)
•  Pull Manufacturing & Just In Time
•  Standard Work
•  Theory of Constraints
•  Total Productive Maintenance
•  Training Within Industry (TWI)
•  Value Streams
5S and Visual Factory
•  5S
▫  A method of workplace organization
▫  Reduces wastes due to clutter, time to find materials and
equipment, duplication of equipment, floorspace, inconsistency
•  Components of 5S
▫  Sort
▫  Straighten
▫  Shine
▫  Standardize
▫  Sustain
•  5S “+1” or “6S”
▫  Some companies add a sixth “S” for Safety

5S and Visual Factory
•  Visual Factory
▫  Make equipment, materials, tools visible and obvious
▫  Make information visible – metrics, goals, projects
•  Ideas for Visual Factory
▫  Develop a map identifying the “access ways”(aisles, entrances,
walkways etc.) and the “action” areas.
▫  Perform any necessary realignment of walkways, aisles, entrances.
▫  Assign an address to each of the major action areas.
▫  Mark off the walkways, aisles & entrances from the action areas
▫  Apply flow-direction arrows to aisles & walkways
▫  Perform any necessary realignment of action areas.
▫  Mark-off the inventory locations
▫  Mark-off equipment/machine locations
▫  Mark-off storage locations (cabinets, shelves, tables)
▫  Color-code the floors and respective action areas

Cellular Manufacturing
•  The cellular approach is to organize the entire
manufacturing process for particular or similar products into
one group of team members and machines known as a "Cell".
•  These "cells" are arranged in a U-shaped layout to easily
facilitate a variety of operations.
•  Parts or assemblies move one at a time (or in small batch
sizes).
•  The parts are handed off from operation to operation
without opportunity to build up between operations.
•  Fast setup and quick changeovers are essential to Cellular
Manufacturing systems since production runs are shorter.
•  Setup reduction principles are used to achieve one piece
flow and mixed model synchronization.
•  All cells concentrate on eliminating waste.

Advantages of Cellular Manufacturing
•  Increased machine utilization
•  Team attitude and job enlargement tend to occur
•  Compromise between product layout and process layout,
with associated advantages
•  Supports the use of general purpose equipment
•  Shorter travel distances and smoother flow lines than for
process layout
•  Reduced work-in-process inventory
•  Less floor space required
•  Reduced raw material and finished goods inventories
required
•  Reduced direct labor costs
•  Heightened sense of employee participation
•  Increased utilization of equipment machinery
•  Reduced investment in machinery and equipment

Jidoka
•  Jidoka is providing machines and operators the ability
to detect when an abnormal condition has occurred and
immediately stop work. This enables operations to
build-in quality at each process and to separate men
and machines for more efficient work.
•  Jidoka is one of the two pillars of the Toyota Production
System along with just-in-time.
•  Jidoka is sometimes called autonomation, meaning
“automation with human intelligence”.

The Four Steps in Jidoka
1.  Detect the abnormality
2.  Stop
3.  Fix or correct the immediate condition
4.  Investigate the root cause and install a
countermeasure

Kaizen
•  Kaizen (Ky’zen)
•  “Kai” means “change”
•  “zen” means “good (for the better)”
•  Gradual, orderly, and continuous improvement
•  Ongoing improvement involving everyone
•  One of the core components of lean

Kaizen “Blitz”
•  Total focus on a defined process to create radical
improvement in a short period of time
•  Dramatic improvements in productivity, quality,
delivery, lead-time, set-up time, space utilization,
work in process, workplace organization
•  Typically five days (one week) long

Poka Yoke and Mistake Proofing
•  The use of process or design features to prevent errors
or their negative impact.
•  Also known as Poka yoke, Japanese slang for “avoiding
inadvertent errors” which was formalized by Shigeo
Shingo.
•  Inexpensive
•  Very effective.
•  Based on simplicity and ingenuity.

Examples of Poka Yokes
•  3.5 inch diskettes cannot be inserted unless diskette is
oriented correctly. This is as far as a disk can be
inserted upside-down. The beveled corner of the
diskette along with the fact that the diskette is not
square, prohibit incorrect orientation.
•  Fueling area of car has three error-proofing devices:
1.  insert keeps leaded-fuel nozzle from being inserted
2.  tether does not allow loss of gas cap
3.  gas cap has ratchet to signal proper tightness and prevent
over-tightening.
•  New lawn mowers are required to have a safety bar on
the handle that must be pulled back in order to start
the engine. If you let go of the safety bar, the mower
blade stops in 3 seconds or less.
Quick Changeover and SMED
•  Changeover is the total process of converting a
machine or process from running one product to
another
•  Changeover time is the total elapsed time between the
last unit of good production of the previous run, at
normal line efficiency, to the first unit of good
production of the succeeding run, at full line efficiency.
•  Single Minute Exchange of Dies is changing over in 9
minutes or less.

The SMED Process
•  Step 1 – Observe and record.
•  Step 2 – Separate internal and external activities.
•  Step 3 – Convert internal activities to external
activities.
•  Step 4 – Streamline all activities.
•  Step 5 – Document internal and external procedures.

Production Preparation Process (3P)
•  Production Preparation Process (3P) is one part of an
overall Lean design approach that includes QFD, design
reviews, and post-start up monitoring by a cross
functional team to kaizen any bugs in the new system.
•  The benefits of Production Preparation Process are a
cross-functional team approach, rapid testing of ideas
and the embedding of Lean manufacturing principles
into process and product design.

3P Method
•  The goal is typically to develop a process or product
design that meets customer requirements best in the
"least waste way". The typical steps in 3P are:
1.  Define Product or Process Design Objectives/Needs
2.  Diagramming
3.  Find Alternatives
4.  Build, Present, and Select Process Prototypes
5.  Hold Design Review
6.  Develop Project Implementation plan

Pull Manufacturing and JIT
•  Lean is really about minimizing the need for overhead
▫  which is about concentrating precisely on only what is necessary
▫  which is about linking interdependent supply system decisions,
and actions
▫  which needs to be visual, responsive and simple to manage
▫  JIT – Just in Time
•  Push Scheduling
▫  traditional approach
▫  “move the job on when finished”
▫  problems - creates excessive inventory
•  Pull scheduling
▫  coordinated production
▫  driven by demand (pulled through system)
▫  extensive use of visual triggers (production/withdrawal
kanbans)
Pull Manufacturing and JIT
•  Objectives of JIT
•  Produce only the products the customer wants
•  Produce products only at the rate that the customer wants them
•  Produce with perfect quality
•  Produce with minimum lead time
•  Produce products with only those features the customer wants
•  Principles of JIT
•  Create flow production
•  One piece flow
•  Machines in order of processes
•  Small and inexpensive equipment
•  U cell layout, counter clockwise
•  Multi-process handling workers
•  Easy moving/standing operations
•  Standard operations defined
Standard Work
•  Each step in a process should be defined and must be
performed repeatedly in the same manner.
•  Variations in the process will create quality problems
requiring costly rework or scrap.
•  Defines the most efficient methods to produce product
using available equipment, people, and material.
•  Depicts the key process points, operator procedures,
production sequence, safety issues, and quality checks.
•  Identifies the amount and location of WIP inventory in
the cell.

Theory of Constraints
•  Maximum speed of the process is the speed of the
slowest operation
•  Any improvements will be wasted unless the bottleneck
is relieved
•  Purpose of TOC is to identify constraints and exploit
them to the extent possible
▫  Identification of constraints allows management to take action
to alleviate the constraint in the future
▫  What should be produced now, with current resources, to
maximize profits?
▫  Based on the concepts of drum, buffer and ropes

Theory of Constraints
•  5 Steps of TOC
1.  Identify the constraint
2.  Decide how to exploit the constraint
3.  Subordinate everything else to the decision in step 2
4.  Elevate the constraint
5.  Go back to step 1, but avoid inertia
•  Advantages
▫  Improves capacity decisions in the short-run
▫  Avoids build up of inventory
▫  Aids in process understanding
▫  Avoids local optimization
▫  Improves communication between departments

Total Productive Maintenance
•  A method for continuously improving the effectiveness
of production equipment and processes
•  The key difference between TPM and other
maintenance programs is that TPM requires the
involvement of all people in the organization
•  TPM aims to achieve a 100% on-demand equipment
availability by eliminating:
▫  Equipment breakdowns and other unplanned downtime
▫  Scrap and rework by poor equipment performance
▫  Reduced productivity due to running at reduced speeds, idling,
or stoppages requiring operator attention
▫  Equipment startup losses

Advantages of Total Productive Maintenance
•  Improved quality through equipment producing parts

with less variation
•  Improved productivity by eliminating equipment
downtime, stoppages, and reduced line speed
•  Improved delivery due to improved schedule
attainment
•  Reduced inventory from reduction in buffers designed
to accommodate equipment downtime
•  Improved employee satisfaction through successful
production

Training Within Industry (TWI)
•  An often forgotten core component of lean
•  TWI provides a systematic approach to sustain changes
and continuously improve by
▫  Indoctrinating people into an “improvement” frame of mind.
▫  Teaching people how to identify opportunities for improving
their jobs.
▫  Training people how to generate ideas to take advantage of
these opportunities.
▫  Showing people how to get these ideas into practice right away.
▫  Creating ownership for people to maintain standard work.

Components of TWI
•  Job Instruction Training (JI)
▫  teaches supervisors how to quickly train employees to do a job
correctly, safely, and conscientiously.
•  Job Methods Training (JM)
▫  teaches supervisors how to continuously improve the way jobs
are done.
•  Job Relations Training (JR)
▫  teaches supervisors how to develop and maintain positive
employee relations to prevent problems from happening and
how to effectively resolve conflicts that arise.

Value Streams
•  A Value Stream is the set of all actions (both value
added and non value added) required to bring a specific
product or service from raw material through to the
customer.
•  Examples of enterprise value streams:
▫  Raw Materials to Customer – Manufacturing
▫  Concept to Launch – Engineering
▫  Order to Cash - Administrative Functions

Value Streams
•  Value Stream Mapping
▫  Helps you visualize more than the single process level
▫  Links the material and information flows
▫  Provides a common language
▫  Provides a blueprint for implementation
▫  More useful than quantitative tools
▫  Ties together lean concepts and techniques
•  The Mapping Process
▫  Follow a “product” or “service” from beginning to end, and
draw a visual representation of every process in the material &
information flow
▫  Then, draw (using icons) a “future state” map of how value
should flow
▫  Develop and implement a plan to create the future state
Knowledge Check
© 2013 Gemba Academy LLC. All rights reserved.

Which of the following are key figures in lean
history? (Mark all that apply)
A.  Henry Ford

B.  Taiichi Ohno
C.  Jack Welch
D.  Shigeo Shingo
E.  James Womack

What are some of the advantages of lean?
(mark all that apply)
A.  Half the product development time

B.  Half the factory space for the same output
C.  Increased capacity / throughput
D.  Increased inventory
E.  Improved workplace organization

Value is defined from what perspective?
o  A) Customer
o  B) Company
o  C) Management
o  D) Worker

Match the core component or tool of lean with its
description by dragging the description to the
component or tool.
Description
A.  Providing machines and
Component or Tool operators the ability to
□ 
detect when an abnormal
condition has occurred and
□ 
D stop work.
5S
B.  Change for the better.
□ 
C Ongoing improvement
Visual Factory involving everyone
□ 
E C.  Make equipment, materials,
Cellular Manufacturing tools visible and obvious.
D.  A method of workplace
□ 
A
Jidoka organization that reduces
B waste
Kaizen E.  Organize the entire
manufacturing process for
particular or similar products
into one group of team
members and machines

Match the core component or tool of lean with
its description by dragging the description to
the component or tool.
Component or Tool Description
A.  A design approach that
□ 
E
includes QFD, design
reviews, and post-start up
□ 
Poka Yoke & Mistake Proofing monitoring
D B.  Continuously improving the
□ 
SMED effectiveness of production
equipment and processes
A C.  Depicts key process points,
Production Preparation Process
operator procedures,
production sequence, safety
□ 
(3P)
issues, and quality checks.
C D.  Rapidly changing over
□ 
Standard Work machines
B E.  The use of process or design
Total Productive Maintenance features to prevent errors

Where and how can you use lean in your current
organization?

Congratulations!!!
•  You have completed the course.
•  Visit Superfactory (www.superfactory.com) for more

information on manufacturing excellence.

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Lean Overview

Lean Manufacturing Series

Gemba Academy provides over 750 online Lean and Six

© 2013 Gemba Academy LLC. All rights reserved.

• Current contact information can be found at: GembaAcademy.com

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• Improved workplace organization

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• 1949: Taiichi Ohno promoted to shop manager at

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• Improved quality through equipment producing parts

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A. Henry Ford

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A. Half the product development time

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• Visit Superfactory (www.superfactory.com) for more

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•  Current contact information can be found at: GembaAcademy.com

•  Improved workplace organization

•  1949: Taiichi Ohno promoted to shop manager at

•  Improved quality through equipment producing parts

A.  Henry Ford

A.  Half the product development time

•  Visit Superfactory (www.superfactory.com) for more