Lean Manufacturing

Agenda

Background Toyota Production System Key Lean Techniques Advantages and Disadvantages People and Customers Economics Changes in Lean Current Lean Practices Case Studies

Definition

Lean 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 waste Lean 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-Time

Lean 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 it With 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 perspective Products being stored, inspected or delayed, products waiting in queues, and defective products do not add value

Seven Wastes

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

Origins
Lean 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 TPS

Work shall be completely specified as to content, sequence, timing, and outcome Every customer-supplier connection, both internal and external, must be direct and specify personnel, methods, timing, and quantity of goods or services provided Product and service flows must be simple and direct goods and services are directed to a specific person or machine Any improvement in the system must be made in accordance with the scientific method at the lowest possible level in the organization

Toyota Production System

Since 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 Techniques

5S
Single Minute Exchange of Dies Kanban Cellular Manufacturing

5S
Strategy for creating a well organized, smoothly flowing manufacturing process

5S Examples
Before After

Benefits of 5S

Increases organization and efficiency Avoids wasted motion Increases safety Eliminates unnecessary inventory Offers improvements at an inexpensive cost

5S Drawbacks

If not fully implemented, may result in Jive S

Store things Stick to the rules Superficially clean Switch to new fixtures Serve reluctantly

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

Single Minute Exchange of Dies (SMED)

Method that focuses on the rapid conversion from manufacturing one product to the next

SMED and Lean

SMED needs to be treated as a constant improvement program Setup times can not be minimized overnight Continuous evaluation and exploration of further improvements is absolutely necessary

Simple CNC Example

New batch of parts arrives

Change over tools for the batch Set offsets for new tools Load NC program Validate Load part onto machine Cycle start and wait Unload and visually inspect (adjust if necessary)
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Run parts

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External elements of work can be completed while the machine is still running e.g. get the next tool, get all your clamps, get lifting equipment in place, put equipment away, etc. Internal elements of work can only be done while the machine is stopped e.g. change the tool, adjust the machine depth, sharpen a tool (which requires the machine to be stopped), etc..

SMED Examples

SMED Examples

SMED Examples

SMED Examples
For example: A slide clamp reduced the time required to load and unload parts to fixture.

2 hold-down clamps eliminated the need to tape parts during a glue-up operation. Set slide allows quick (temporary) alignment of 2 parts.

SMED Examples

Split thread bolts Handles Toggle clamps U-shaped washers

Make the tool part of the screw device -- you dont need a tool, and this will save time in disassembling and reassembling the 12/13/2012 and fixturing! tooling

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Reduce the amount of turns required in order to activate the screw.

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Reduce the amount of screw turns and eliminate the tool!

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Benefits of SMED

Increases throughput by reducing setup times Eliminates setup errors Increases safety Reduces the cost of setups Reduces waiting times and inventory buildups Decreases the required skill level of the operators

Kanban

A system that uses replenishment signals to simplify inventory management

Signals (usually cards) hold product details

What to make, when to make it, how much to make, and where to send it

Cards stay attached to a bin that holds the product When bin is empty, it is returned to the start of the assembly line for replenishment Full bins are returned to the customer, and the cycle continues

Kanban Example
Supermarket Ordering System

Benefits of Kanban

Highly visible systems Simple, effective, and inexpensive Reduces inventory and eliminates stockouts Improves the quality of service Improves lead times

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

Cellular Manufacturing Example

Functional Layout

Cellular Layout

Benefits of Cellular Manufacturing

Simplifies material flow and management Reduces interdepartmental travel Reduces throughput time Reduces lot sizes Simplifies scheduling

Lean Manufacturing Advantages and Disadvantages

Advantages:

Disadvantages:

Increased overall productivity Reduced amount of floor space required Reduced manufacturing lead time Improved flexibility to react to changes Improved quality

Difficulty involved with changing processes to implement lean principals Long term commitment required Very risky process expect supply chain issues while changing over to lean

People

Transition 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

Element
Communication Teamwork Motivation Skill Range Supervision

Traditional
Slow & Uncertain Inhibited Negative, Extrinsic Narrow Difficult and Fragmented

Lean
Fast & Positive Enhanced Positive, Intrinsic Broad Easy & Localized

Improvement
Quality & Coordination Effective Teams Strong Motivation Job Enrichment Fewer Supervisors

How Customers Benefit from Lean

Element
Response Customization

Traditional
Weeks Difficult

Lean
Hours Easy

Improvement
70-90% Competitive Advantage

Delivery Speed
Delivery Reliability Delivery Quantities Quality

Weeks-Months
Erratic Large Shipments Erratic

Days
Consistent & High JIT as Required Consistent & High

70-90%
Up to 90% Locks in JIT Customers Delighted Customers

House of Lean

Economics

Reduction of Inventory

Reduced Waste

Less space necessary to hold inventory

Decreased Production Cost Able to provide what the customer wants quickly Faster response to the customer Lower Cost Higher Quality

Increased market share

Increased competitive advantage

Changes in Lean since the beginning

Inventory Comparison

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

Quality Control

6 sigma process

Combination of old and new ideas Genuine focus on the customer Data- and fact-driven management Process focus, management, and improvement Proactive management Boundarlyless collaboration Drive for perfection, tolerance failure

6 ingredients

Lean Maintenance

A Simultaneous Approach

6 Tools for Lean Maintenance

Visual Controls 5S Seven Wastes Single Minute Exchange of Dies Poka-yoke Total Productive Maintenance

Other impacts of Lean

Bell South service industry

Management system and operations Control

Process management, work measurement, management control, and people development

Combines lean and 6 sigma Feed logistics Animal Resource Planning

Woburn Safari Parks

Background

Poli-film America Inc. a division of a German owned company. Manufactures protective masking that prevents abrasion and staining of exposed surfaces during manufacturing and delivery Industries Using Material:

Plastics Automotives Construction Electronics Laminates Furniture Textiles

High demand product 24/7 production

Problems

An enterprise resource planning system that encompassed an unstable database

Lack of frequency in supplies and storage errors in production and set limits Unable to trace items Main concern programs ability to adapt to changing processes and production goals while still maintaining inventory traceability real time data with multiple distribution sites

The database was untrustworthy account of inventory, hand counts were necessary to confirm the numbers counted by computers Led to many employees spending many hours and led to low processing and limit of work utilization

Results

Chose a new program to implement in later 2003 Greatest impact on companys inventory flow and order distribution

Real 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 Lean

Time and money has seen dramatic cuts

Allowed company to expand for more regional coverage Been simplified for reports Reduce time taken to accomplish certain tasks and add more responsibilities

Instead of 20 min to fill an order, takes less than 5 min currently