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What is Lean? 5S & Visual Controls Kaizen Value Streams Pull Manufacturing Mistake Proofing Quick Changeover Six Sigma Lean Accounting Theory of Constraints Human Factors
Thinking Lean
Specify value can only be defined by the ultimate customer Identify the value stream exposes the enormous amounts of waste Create flow reduce batch size and WIP Let the customer pull product through the value stream make only what the customer has ordered Seek perfection continuously improve quality and eliminate waste
Benefits
Lean provides tangible benefits Reduces costs not just selling price Reduces delivery time, cycle time, set-up time Eliminates waste Seeks continuous improvement Improves quality Improves customer ratings and perceptions Increases overall customer satisfaction Improves employee involvement, morale, and company culture Helps transform organizations
Errors in documents Transport of documents Doing unnecessary work not requested Waiting for the next process step Process of getting approvals Unnecessary motions Backlog in work queues Underutilized employees
Too many signature levels Unclear job descriptions Obsolete databases/files/folders Purchase Orders not matching quotation Errors typos, misspelling, wrong data Waiting for information, at meetings, etc. Poor office layout Unnecessary E-mails
Major reduction in sales-order cycle time by 59 percent (from 23 hours to 9 hours) Engineering change-order cycle time by 91 percent (from two hours to two) Response time to customers quote requests by 83 percent (from 66 hours to 11 hours) Errors by company employees were reduced by 69 percent
(Tonya, 2004)
After 5S
Clear, shiny aisles Color-coded areas Slogans & banners No work in process
Push Scheduling traditional approach move the job on when finished problems - creates excessive inventory Pull scheduling coordinated driven by demand (pulled through system) extensive use of visual triggers (production/withdrawal kanbans)
10
11
Sigma = = Deviation
( Square root of variance )
-2
-6
-5
-4
-3
-7
-1
63 ppm
0.57 ppm
0.002 ppm
12
Constraints
Any system can produce only as much as its critically constrained resource
Constraint
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