Lean Manufacturing Introduction

Prepared By Value Stream-Improvement

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Lean Manufacturing Introduction

Agenda
History What

is Lean Manufacturing Seven Wastes !ne Visual Measures Benefits of Lean Appendi"

History

Lean Manufacturing comes from the #oyota Production System Pioneered $y #aiichi !hno former vice president of #oyota
%educe

cost &enerate capital Ma'e money More sales %emain competitive in gro(ing glo$al mar'et

)ulture $ased on* (or'ing in every facet of the value-stream

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What is Lean Manufacturing

People ACE MRD

P%+,+%%+- S.PPLI+%
A)+ / Achieving )ompetitive +"cellence M%- / Mar'et %ate of -emand

What is Lean Manufacturing

Total Value-Stream
Feedback Mechanism Hamilton Sundstrand

Suppliers

Customers

What is Lean Manufacturing

C+ST(ME,
(n-Time )eli*ery 'east - Cost Hi%h - &uality m a e r E#cellent - EH$S St Simpli ication o Value-Stream

Va

eu l

Systematic Elimination o !ll "aste Employee Empowerment (Teams)

What is Lean Manufacturing

(n-Time )eli*eries Customers E#pect 'east Cost Hi%h &uality

What is Lean Manufacturing

Customer Satisfaction )oin% wron% thin%s ri%ht )oin% wron% thin%s wron% )oin% ri%ht thin%s ri%ht )oin% ri%ht thin%s wron%

Efficiency
indirectly affect customer

Effectiveness
directly affect customer

What is Lean Manufacturing

System re0uires continuous improvement of the Value-Stream*

Mar'eting +ngineering Materials

management Manufacturing process Supply )hain )ustomer service

+fficient and effective organi1ations (ith2Least)ost and 3ero-Waste444

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What is Lean Manufacturing

-!s./s0

Eliminate 4on.Value !dded

-To-1e0

"hen redesi%nin% the process2

Eliminate non.*alue added acti*ities /ncrease or%ani3ational spans o control ,educe the number o decision points /ncrease yields Simpli y and streamline

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What is Lean Manufacturing

Traditional Manu acturin%
Material Turn Drill Material

'ean Manu acturin% "# $%T

1 6

Customer

1
Mill

Assembly Production Control

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Quality Control Stores

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Customer

Turn

5 Assembly

,unctional layout
)entral Stores Batch Manufacturing Lo(-customer5supplier communication

Process layout

Drill

Mill

Short )ycle #imes Waste elimination Visual )ontrols Pull System High-)ustomer5supplier communication

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What is Lean Manufacturing

Push Vs4 Pull

5ush System

Procuring or producing products in scheduled lot si1es6 (hether or not the total 0uantity is re0uired2 !rder start triggered $y M%P system

5ull System

Procuring or producing products at the customer7s consumption rate2 !rder start triggered $y empty 'an$an signal

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What is Lean Manufacturing

Market Rate of Demand (MRD) Pull Signal) Definitions 8an$an9 A trigger signal to produce5deliver parts5material4

Produce 'an$an9 A 'an$an used to control production of an item %a( Material 'an$an9 A 'an$an used to control ra( material availa$ility4 %eplenisha$le 'an$an9 A type of 'an$an that is to $e replenished
:filled; (hen a trigger point is reached

:i4e4 empty6 redline6 minimum 0uantity6 etc4; #his type of 'an$an is typically used for fre0uently used material or fre0uently manufactured goods6 and end-to-end supply chain products4

<on-replenisha$le 'an$an9 A type of 'an$an that is not replenished

:filled; (hen emptied4

#his type of 'an$an is typically used for products (ith infre0uent demand4

4ote6 The same part can be replenishable or some cells and nonreplenishable or other cells within the same plant7

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What is Lean Manufacturing

The Vision: End-to-End Supply hain

Supplier
K b P.LL

Shop Cells
K b K b K b
P.LL

Assembly
P.LL

Cell#1 Cell#2 Cell#3

P.LL

K b K b K b

P.

K b K b K b

P.LL

K b K b K b

P.LL

LL

K b

P.LL

P.LL

P.LL

Cell#4 K P.LL b
P.LL

P.LL

P.LL

P.LL

P.LL

K b

P.LL

P.LL

P.LL

P.LL

P.LL

C u s t o m e r

K b

P.LL

Raw Matl Components

Sub Assys

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Seven Wastes

!ne

"!STE 8 !nythin% other than what is absolutely essential to !dd Value to the 5roduct777 =4 !verproduction >4 -elay or (aiting for processing ?4 #ransportation @4 Manufacturing processing (aste A4 +"cess inventory B4 Waste of motion C4 Shipping defective hard(are

<ot utili1ing the talent and 'no(ledge of human resources 15

Seven Wastes

!ne

Customer Feedback

Process 1 Process 2

Process 3

Customer

Satis y Customer 4eeds

Teams Eliminate 5rocess "aste777 -1ased on 5rocess Feedback0

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Visual Measures
Employee Satis action

EH$S Customer Satis action

&uality

Cost

)eli*ery

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Benefits of Lean

Customer Satis action

Preferred Supplier - +0uals more sales and future (or'444

/n*estable 1usiness 5re erred Employer Eliminate "aste Create Fle#ibility - A$ility to respond 0uic'ly to change (ith less
(aste and re(or'

(pen Communications (/nternally - E#ternally)

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DEA

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Appendi"

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Visual Measures - +"amples

Employee Satis action

AS Level F )ross-trained #raining hours5employee +mployee survey ?BG revie(s La$or turnoverF
!SHA recorda$les Incidence rate <ear miss count +rgonomic rating Pound of air emissions

EH$S

)eli*ery
-aily deliver performance #a't time to cycle time performance

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Visual Measures - +"amples

&uality

)ost of 0uality ,irst-time-yield PPM and +scapes F of )ertified suppliers Warranty F of sales #otal )ost Manufacturing overhead rate )ycle time :days; )ost reduction5unit Warranty H Inventory turns !verall e0uipment effectiveness :!++; Sales per employee )ustomer lead-time Value-add5<on value-add

Cost

Customer Satis action

!n-#ime delivery F Warranty )laims

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Improvement Activities
Mana%ement Systems Supply Chain (peratin% En*ironment 5eople Systems 'eadership

!reas

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Improvement Activities - +"amples

'eadership

5eople Systems
S'ill assessment #raining needs )areer development planning Mentoring

Vision6 Values6 Beliefs Balance Scorecard Product teams manage value-stream Benchmar'ing Policy deployment

Mana%ement Systems

A)+ :Achieving )ompetitive +"cellence; Value-stream mapping M%- :Mar'et %ate of -emand; )apacity planning %esource allocation #PM :#otal Predictive Maintenance;

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Improvement Activities - +"amples

(peratin% En*ironment

AS Visual controls Value-add analysis Waste elimination &roup technology ,le"i$le layout )ellular manufacturing Standardi1ation D)P) Safety improvements #PM :#otal Predictive Maintenance;

8ai1en #a't time5)ycle time Standard (or' Pull system !ne - piece flo( +sta$lish supermar'ets 8an$an Mi" model production Mista'e proofing Setup reduction BPM :Business Process Management;

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Improvement Activities - +"amples

Supply Chain

Supplier reduction Long-term partnering )ertify suppliers Internet technologies Supplier development Supplier report card )ommunication process 8an$an lin's

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Supply )hain Activities

Supplier Hierarchy
ISu$ #ier Sourcing I)o-location

Selected Suppliers 5!,T4E, 5riority Suppliers !CT/VE )EVE'(5ME4T

IAsset Management IA)+ #ools ILean Mfg58ai1en5VSI

!ll Suppliers

&+!'/T9

ISupplier %eport )ard

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Supply )hain Activities

/nternet technolo%ies

Supplier We$

Schedule Visi$ility -elivery Promises S-S :Supplier -irect Ship; 8-S :8an$an -irect Ship; Supplier self-assessment tool <onconforming Parts :PPM; Parts Per Million +scapes !n-#ime Performance

Intellimet

Supplier %eport )ard

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