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 customer’s
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
Company’s 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
improvement movement
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
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Simple CNC Example
New batch of parts arrives
Change over tools for the batch
Set offsets for new tools
Load NC program
Validate
Run parts
Load part onto machine
Cycle start and wait
Unload and visually inspect (adjust if necessary)
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
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
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Make the tool part of the screw device -- you don’t need a tool,
and this will save time in disassembling and reassembling the
tooling and fixturing!
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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 stock-
outs
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:
Increased overall
productivity
Reduced amount of
floor space required
Reduced manufacturing
lead time
Improved flexibility to
react to changes
Improved quality
Disadvantages:
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
company’s suppliers.
How People Benefit from Lean
Element Traditional Lean Improvement
Communication Slow & UncertainFast & Positive Quality &
Coordination
Teamwork Inhibited Enhanced Effective Teams
Motivation Negative, ExtrinsicPositive, IntrinsicStrong Motivation
Skill Range Narrow Broad Job Enrichment
Supervision Difficult and
Fragmented
Easy & LocalizedFewer Supervisors
How Customer’s Benefit from
Lean
Element Traditional Lean Improvement
Response Weeks Hours 70-90%
Customization Difficult Easy Competitive
Advantage
Delivery Speed Weeks-Months Days 70-90%
Delivery
Reliability
Erratic Consistent & High Up to 90%
Delivery
Quantities
Large Shipments JIT as Required Locks in JIT
Customers
Quality Erratic Consistent & High Delighted
Customers
House of Lean
Economics
Reduction of Inventory
Less space necessary to hold inventory
Reduced Waste
Decreased Production Cost
Increased market share
Able to provide what the customer wants quickly
Increased competitive advantage
Faster response to the customer
Lower Cost
Higher Quality
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
6 ingredients
Genuine focus on the customer
Data- and fact-driven management
Process focus, management, and improvement
Proactive management
Boundarlyless collaboration
Drive for perfection, tolerance failure
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
Woburn Safari Parks
Feed logistics
Animal Resource Planning
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
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
Lack of frequency in supplies and storage – errors in
production and set limits
Unable to trace items
Main concern – program’s ability to adapt to
changing processes and production goals while still
maintaining inventory traceability real time data
with multiple distribution sites
Results
Chose a new program to implement in later 2003
Greatest impact on company’s 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
Instead of 20 min to fill an order, takes less than 5 min currently
Allowed company to expand for more regional coverage
Been simplified for reports
Reduce time taken to accomplish certain tasks and add more
responsibilities