Lean Thinking and Lean Manufacturing System

Starting with Toyota in the late 50s and catching on

in the mid 80s in the reminder of the industrial
world, Lean Manufacturing has become a key
strategy for manufacturers

205080

Marketing Competition and Globalization

Shorter lead time and on time delivery

Grow the mixspecial configurations

Maintain / improve quality and reduce price

Total life cycle of product becoming shorter and shorter

No boundarybusiness globalize village

Marketing Competition and Globalization

Life Cycle in year

Life Cycle Change/

30
25
20
15
10
5
0

50

Product Styles In Supermarket

60000
40000
20000
0
1970

1980

1990

2000

Lean Thinking and Lean Manufacturing System

The are two ways to think about the relationship of

Price, Cost and Profit

1
= +
2
=

The Cost / Lean Relationship

LEAN

C
o
s
t

Life Cycle Cost In Different System

$/piece

$/ piece

Manufacturing Evolution
Henry Ford
Assembly line mass production
Produce in high volume with low variety
Single skill

Toyota Production System (TPS)

Just-In-Time Production (produce only what is needed)
Pull System
Produce enough volume to meet customers needs
High variety to meet customers wants

Key Points for Manufacturing System

Craft

Low volume
Customized

Mass

Large batches of
similar products
Inflexible
machinery
Manufacture of
goods by process

Synchronous

Focused on total
elimination of
waste
Ongoing efforts to
improve Quality,
Productivity, and
Responsiveness
Attention to detail
Recognition of
employee abilities

Lean

Agile

Builds on
Remove constraints to
synchronous
respond to customer
manufacturing
demand through the
Emphasize on lead
entire supply pipeline
time reduction
(supplier-customer)
Improve asset
Capable plants linked to
utilization
lean concepts
Built to customer
demand

Lean -

1 a b
2
3
4

What is Lean Manufacturing

-
Value

Perfect

Value Stream

Demand Pull

Lean
Manufacturing

BTR-

Flow

Whatever You Call It

Lean Manufacturing
Flow Manufacturing
Continuous Flow
Demand Pull
Demand Flow Technology
Toyota Production System
_____ Production System
etc?..

______
...

Lean Manufacturing - Key Characteristics

-
Focus on SPEED and SIMPLIFICATION
Pull materials through the process
Balanced operations based on customer demand
Minimal build unless tied to customer order
Extend to Supplier Base

What is Flow Manufacturing?

A Developed Flow is Less Disruptive

A time based system that pulls material through a production

system with no interruptions

Time and Impact

L/T

/
//

Time in Manufacturing
= 200 (2 )

1000
400
400
200
200
1.5

= 2200/200
= 11
= 1.5/(11*16)

= 0.85%

With Lean Manufacturing You Can Get

90%
90%
50%
50%
50%
The amount of human effort, time, space, tools, and
inventories can typically be cut in half very quickly, and
steady progress can be maintained from this point onward to
cut inputs in half again within a few years.

-, Womack & Jones

Best Plant

- 98%
- 10
(5) - 56%
(5) - 60%
- 3
- 3/10 = .30
- 12.0
(5) - 35%
- 80
- 96%

1997 IWeek Survey of 2,900 manufacturers

1998 IWeek Survey of 2,100 additional manufacturers

Benchmark Results
60%
50%

5
35

()

30

55%

40%

25

40%

20

30%

15

20%

10

10%

0%

0
Electronic &
Electrical

98%
96%
94%
92%
90%
88%
86%
84%
82%
80%

Industrial
Equipment

Handtools and
Hardware

Electronic &
Electrical

Controls &
Measuring

12

Industrial
Equipment

Handtools and
Hardware

10

Controls &
Measuring

40%

8
6

44%

4
2
0

Electronic &
Electrical

Industrial Equipment

Handtools and
Hardware

Controls &
Measuring

Electronic &
Electrical

Industrial
Equipment

Handtools and
Hardware

Controls &
Measuring

Benchmark Results
5
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%

40%
35%
30%
25%

52%

10%
5%
Industrial
Equipment

Handtools and
Hardware

Controls &
Measuring

650%

Electronic &
Electrical

Industrial
Equipment

Handtools and
Hardware

Controls &
Measuring

1.00%

0.50%
0.00%

-1.00%

0%

1.50%

-0.50%

40%

20%
15%

3.00%

2.00%

45%

Electronic &
Electrical

2.50%

50%

Electronic &
Electrical

Industrial
Equipment

Handtools and
Hardware

Controls &
Measuring

Lean Manufacturing Foundations

Eliminate Wastes
5S and Visual Workplace
Error Proofing
People Involvement

Eliminate Wastes

Correction
Overproduction
Conveyance
Motion
Waiting
Inventory
Processing

Definition of Wastes
Anything other than absolute minimum resource of
material machine and manpower required to add
value to the product

Anything Other Than Necessary

Waste of Overproduction

Producing More
Than Needed

Producing Faster
Than Needed

Waste of Correction /
Definition:
Rework of a Product
or Service to Meet
Customer
Requirements

Waste of Material Movement / Conveyance

Definition:
Any movement
of material that does not directly

support a lean system

Waste of Processing

DEFINITION:
Effort which adds no value

to a product or service

Waste of Inventory
Definition:
Any supply
in excess
of process requirements
necessary to
produce goods

Waste of Waiting
Definition:
Idle Time That Is Produced When
Two Dependent Variables
Are Not Fully
Synchronized

Waste of Motion

Definition:
Any movement which does not contribute value to the product
or service

Workplace Organization

TOOLS

T O

L S

G L O

V E S

Workplace Organization Requirements

5S or 6S Activity 5S 6S
Address System
Operational Sheet
Boundary Samples /
Non-conforming parts containers
Tool change / Ready stations /
Issues / Concerns Boards
Information Center

Workplace Organization - 5S
- 5S

WHAT IS 5S /6S

Seiri
Seiton
Seiso
+ Safety
Shitsuke
Seiketsu

Sort
Straighten
Shine
Standardize
Sustain

Workplace Organization - 5S
- 5S

Sort

Workplace Organization - 5S
- 5S

5S

1
2ID
3
4
5
6
7

Workplace Organization - 5S
- 5S
Straighten

SU PPLIES

M axim um
M inim um

PN
102102

1
924924
PN

10
1

PN
516 516
10

10

Workplace Organization - 5S
- 5S

Step 3: Shine
TARGETS
ASSIGNMENTS

METHODS

TOOLS

IMPLEMENT

Workplace Organization - 5S
- 5S
Step 4: Standardize
12

10

12
8

12
10

10

Workplace Organization - 5S
- 5S
Step 5: Sustain or Discipline Always follow
/
the specified
and
Standardized
procedures.

5S

Workplace Organization - Color Coding

-

Yellow

Blue

Red

White

Grey

Workplace Organization - Visual Aids

-

Everything has its place

and everything in its place

TOOLS

Workplace Organization - Address System

-
2
20

3
30

4
40

5
50

DBA01010

DBA01020

DBA01030

DBA01040

DBA01050

DBA01100

DBA01090

100

90
9

DBA01080

80
8

DBA01070

P54

DBA01060

10

606

7
70

P54-A

FA-OP54/55-L01

O54

N
W

E
S

2
20

3
30

4
40

5
50

DBA02010

DBA02020

DBA02030

DBA02040

DBA02050

DBA02100

100

O55

DBA02090

DBA02080

90
9

80
8

DBA02070

DBA02060

FA-OP54/55-L02

10

606

7
70

P55

Workplace Organization - Operational Sheet

-

Error Proofing

People CAN and WILL make inadvertent mistakes!

If one person makes a mistake ANYONE can!

ONE mistake out the door is too many!!

Mistakes CAN be eliminated and MUST be eliminated for us to

become COMPETITIVE!!!

Error Proofing
What Means 99.9% Right? 99.9%

One unsafe landing at Beijing airport each day

20,000 incorrect drug prescriptions per year

50 newborn babies dropped each day 50

22,000 checks per hour deducted from wrong accounts

32,000 missed heartbeats per person each year

Error Proofing

Preventing or detecting errors at the source

FMEAs provide basis for error proofing

zz

Team Building and People Involvement

/

People doing the work know the operation best

Decisions need to be made at all levels where the

work is being done

Those people affected by a change (line design)

need to participate in making that change

Team Building and People Involvement

/

Change is exciting when it is

done by us, threatening when it
is done to us.

Team Building and People Involvement

/

Three ways of communication

Horizontal
Top to bottom
Bottom to top

Team Building and People Involvement

/
Idea

Participation rate 90% adopted 90 days

As the NWG regular activities
90%
90

Informal / formal recognition

Recognition program is related to plant objectives GOOD

JOB!

Value Stream Mapping

Understand the process...see the

valueenvision the future state

From Learning to See

by Mike Rother & John Shook
WWW.LEAN.ORG

Lean Implementation- Some Lesson Learned

Cherry-picking the tools

is not enough

Focus on the flow of value

to create a system

Value Stream Mapping

1 week

SO

Supplier
MUSK

PO

Baoan
PC&L

Follow up

HK

PO

HK

PO

Customer
MUSK

SO

SO

PO copy

1 -2 day

Weekly Master Shipping Schedule

Lead Time
2 wks

HK

1 day
IQC

2d

grind
260,000 CT=6.17s
op=2
c/o=25m
Up=95%
10.5d
6.17s

20

I
I
wash
dry
CT=0.2s
CT=0.5s
9,000
9,000
9,000
op=?
op=?
c/o=
c/o=
Up=100%
Up=100%
0.37d
0.37d
0.37d
0.2s

T&R
CT=5.2s
op=1
c/o=40m
Up=95%
5.2s

In Process 2.8 d

21

22

I
I
QC
pack
CT=0.45s
CT=0.1s
2,000
5,000
12,000
op=0.5
op=0.5
c/o=
c/o=
Up=95%
Up=100%
0.08d
0.45s
0.20d
0.49d
0.1s

I
13,000

0.54d

NVA=16.8d
VA=170.3s

VSM - Understand The Work

Data collecting
Understand Sequence
Understand Cycle Time
Capture Waiting Time

Without DataIts Just An Opinion!

Value Stream Mapping - TAKT Time

TAKT Time determines the rate at which work must

be accomplished at each operation (Operational Cycle
Time) based on the line rate.

TAKT is the rhythm or beat of the flow line.

Value Stream Mapping - TAKT Time

Takt

(60 X /) - & &

Takt =

ABC

(60 x 17.0) - ((15+15+30+20)x2)

258
860 x 60 /
258

320

860
258

200 /

Operation Effectiveness

OEE - Overall Equipment Effectiveness

TPM - Total Preventive Maintenance
QCO - Quick Change Over

1 2 3 4 5 6 7 8

ANDON
.....657....700..........

Production Reporting & Charting

- Monitors the status of production at any given moment in time.

- Provides the historical data necessary to continuously improve

operational availability

- Production (hour by hour)

- Down time
- Change over
- Planned down time
- Quality loss
- Speed loss
- Other lost timepeoplematerialetc

Capability Loss In Production

NO

YES
YES

NO

NO

NO

YES
YES

NO

NO

YES
YES

IN GOOD
PRODUCTION

OEE Calculation Example - Cutting Operation

-

450

100%

- 2 @ 25 min

400

89%

- 2 @ 30 min

340

85%

30 min

310

91%

80%

248

80%

2%

243

98%

-15 min

228

94%

51%

Improve Overall Equipment Effectiveness

L O S T T IM E (JUNE)
1400
1124

1200

M IN U T ES

PARETO

1000
800
600

616

534

Minutes
414

400

235

200
0
Hy d.
Clean-up

W ait f or
Cas tings

W eld Tip
Changes

Quality
Chec ks

Clear
Bow l
Feeder

DEPT . 230

DOW N TIME (JUNE)

1400
1134

1200

M INUTE S

1000

TOP 5

955
786

800
Minutes
600

427

345

400
200
0
Prox. Sw itch

Thermocouple

Hyd. Leak
DEPT. 230

Broken
Gripper

Repack
Bearings

Total Preventive Maintenance

Total Preventive Maintenance is the total activities of

all employees work to increase uptime, improve quality
of output, improve safety, and reduce costs through the
continuous improvement of equipment operation

Some Key Maintenance Data

MTBF -

MTTR -
PM% -
70%

TPM: Owner / Operator Concept

/
The operator will be empowered to: monitor the equipment,
notify maintenance prior to any machine downtime occurrence,
assure that housekeeping is maintained, perform minor repairs
and aid maintenance personnel with the suggestion

TPM Is A Paradigm Shift

TPM
I operate you fix
I fixyou design

I designyou operate

We are all responsible for

our equipmentour plant

and our future

TPM Goals

Zero accidents
Zero unplanned down time
Zero speed losses
Zero defects
Minimum life cycle cost

Continue Improvement - 5 Why

5 Why

QCO - Quick Change Over

TOOLS

Benefits:

1.
2.
3.
4.
5.

Reduced machine downtime

Flexibility in scheduling
Reduced cost of scrap
Reduced inventory holding costs
Increased capacity

QCO - Opportunities for Improvement

80% Workplace organization

10% Equipment
5% Tooling
5% Product design
80%
10%
5%
5%

Flow Cell Design

WIP

Why Design U - Shape Cell Layout

U

6
6
7

5
5

10

10

Flexible Line Capacity

One - Piece Flow
Communication
Save Space


/
/

ABC
ABC
5/ 1/ 98

:
:

4/ 30/ 99

4/ 20/ 99

4/ 8/ 99

3/ 29/ 99

3/ 17/ 99

3/ 5/ 99

2/ 23/ 99

2/ 11/ 99

2/ 1/ 99

1/ 20/ 99

1/ 8/ 99

12/ 28/ 98

12/ 15/ 98

12/ 3/ 98

11/ 20/ 98

11/ 10/ 98

10/ 29/ 98

10/ 19/ 98

10/ 7/ 98

9/ 25/ 98

9/ 15/ 98

9/ 2/ 98

8/ 21/ 98

8/ 11/ 98

7/ 30/ 98

7/ 20/ 98

7/ 8/ 98

6/ 26/ 98

6/ 16/ 98

6/ 4/ 98

5/ 25/ 98

5/ 13/ 98

Uni t s

Flow Cell Design - Demand Management

160

140

120

100

80

60

40

20

S hipm ents

/:
/:

Line Rate Change to Takt Time

?
350

300

Rate 1: 290

250

Rate 2: 200

200
150
100
50
0
1st
Qtr

2nd
Qtr

3rd
Qtr

4th
Qtr

U - Shape Cell - High Rate Status

U -
TAKT

5
0

6
7
8
9

4
3

10

10

20

30

40

50

60

TAKT

10

20

30

40

50

60

TAKT

10

20

30

40

50

60

TAKT

10

20

30

40

50

60

10

20

30

40

50

60

10

20

30

40

50

60

10

20

30

40

50

60

TAKT

2
0

10

TAKT

10

20

30

40

50

60

TAKT

TAKT

10

20

30

40

50

60

TAKT

TAKT

10

20

30

40

50

60

U - Shape Cell - Middle Rate Status

U -

TAKT
6
6
7

5
5

10

10

10

20

30

40

50

60

20

30

40

50

60

20

30

40

50

60

TAKT

3
2

10

TAKT
1

10

U - Shape Cell - Middle Rate Status

U -

6
6
7

5
5

TAKT
4

4
3

3
2

10

10

2
0

10

20

30

40

50

60

Machine Cycle Time Analysis

Takt Time Line

Scrap
Changeover
Downtime

Cycle Time

Load/Unload /

Sequence & Balance

Operator Balance Chart

Operator Balance Chart

Project: L-6 PCM Header Assembly

1
2
3
4
3

OPERATION NAME
Retainers & Electrical
Filters & Leak Test
Pin Insertion
Ferrite, Sealant, DIPG

VALUE
ADDED
26.0
24.0
34.0
10.0

Date:

TYPE 1 NON
VALUE
10.0
10.0

TYPE 2 NON
VALUE
5.0
5.0

15.0

10.0

WAIT FOR
CYCLE

9/29 - 9/30/98

OPERATOR
TOTAL
41.0
39.0
34.0
35.0
0.0

SECONDS / PIECE

SEC / PC

OPERATOR BALANCE CHART

WAIT FOR CYCLE

50.0

TYPE 2 NON VALUE

45.0

TYPE 1 NON VALUE

40.0

VALUE ADDED

35.0

TAKT

Takt

30.0
25.0
20.0

15.0
10.0
5.0
0.0
Retainers & Electrical

Filters & Leak Test

Pin Insertion

Ferrite, Sealant, DIPG

Time - to - Takt

How Many Operators Needed

The

number of operator is calculated by dividing the

sum of the operator work value added + non value
added by the Module Takt Time

VA + NVA

Material Movement and Pull System

0017-0010-002R

Material Movement and Pull System

What are the goals ?

Pull System - How Kanban Works

When the operations are balanced to the TAKT time, KANBAN

quares?are used as signals to do work and pull parts through the
process.

#1

#2

#3

K =

Pull System - Replenishment KB System

D E

OD

PART
#

PROCESS

C-0087

Run /

NAME

PISTON RING

MACH
MG-3

QUAN

LOC

200

5
OF
7

ASSEMBLY - L-4

Supply Chain Mapping

MRP

4
9

Lean Supply Chain Mapping

Waste in the Supply ChainCost

OSEOverall Supplier Effectiveness

OSE = Q x C x D
Q = Quality
C = Cost
D = Delivery

OSE = 96% x 95% x 90% = 82%

81 -90%
80%
95%

Different Stages On Supply Chain Development

Conventional Approach
Adversarial relations
Price is the priority
Formal certification
CultureSuppliers are Expendable

SCM
Longer - term relationship
Quality is the priority
Reduce in number of suppliers
CultureWork with supplier to improve quality cost and
lead time

Different Stages On Supply Chain Development

Operational Alignment
Time is the priority
Focus on core process Capability
Joined R&D pilot program
CultureProduction begins in suppliers department

Strategic Alignment
Joined business and process control
Agreements on strategiespolices
E- CommerceeLean info flow
CultureStrategic business partnership with suppliers

Different Stages On Supply Chain Development

World Class Attainment

End - to - End Lean enterpriseeLean practice become
standard operating procedure

World class enterprise pursue dynamic supply chain

management in new ways that stretch the existing rules of
competition

CultureStriving for continuous improvement throughout the entire

value stream together

Lean Implementation Strategy

Why Our Company have to Be In Lean

Roles and Education
Gap Assessment and Measures
Time Frame for Lean Journey

Key Performance Indicators

CUSTOMER/

Delivered Quality
Product Reliability
On-Time Delivery
Lead Time
Flexibility
Price

Manufacturer/

Material Cost Containment

Labor Cost Containment
Productivity
Inventory
Cost of Quality
Capacity

Supporting the change wall-to-wall

Supporting the change wall-to-wall

Supporting the change wall-to-wall

Supporting the change wall-to-wall

Lean Manufacturing Training

Approximately 10% of an organization need sound

education base
Key Flow leaders and implementers need advanced
training
Everyone eventually needs awareness
10%

Lean Journey - The Preparation

Without INCENTIVE -- Gradual Change

--
Without VISION -- Confusion
--
Without ACTION PLAN -- False starts
--
Without SKILLS -- Anxiety
--
Without RESOURCES -- Frustration
--

Lean Journey - Hong Long

Will differ in each environment

Suggest aggressive schedules; perhaps faster than normal projects

Depends on pace of culture change

Typical
Pilot area - 12 weeks
First wall-to-Wall line half to one year
Plant 3-5 years

3

3 - 5

Lean Implementation-The Path

;;
;

-
- /
- /
-
-

()

5S -

Kaizen()
6