24 Lean Thinking

8/2/2019 24 Lean Thinking

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LEAN THINKING


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This concept was developed by Toyota MotorCompany(1990s)

so it is also called TPS(Toyota production system)

Lean was generated from the Just-in-time(JIT)

Just-in-time is supplying customers withexactly what they want when they want it.


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Lean Thinking is about focus, removingwaste, and increasing customer value.

Lean manufacturing is the production ofgoods using less of everything compared totraditional mass production: less waste,human effort, manufacturing space,investment in tools, inventory, andengineering time to develop a new product


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Overproduction producing more than thecustomer orders or producing early. Inventoryof any kind is usually waste.

Queues idle time, storage, and waiting arewastes

Transportation moving material betweenplants, between work centers, and handling

more than once is waste


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Inventory unnecessary raw material, work-in-

process (WIP), finished goods, and excess

operating supplies

Motion movement of equipment or people

Over processing work performed on product

that adds no value

Defective product returns, warranty claims,

rework and scrap


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Lean is done by smoothening process flows,doing only those activities that add customer

value and eliminating activities that dontAdding value .

is another way of saying generating revenue.If it doesnt generate revenue then it mustadd cost, not value.


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There are five basic steps in assessing leanoperations:

Identify the activities that create value Determine the sequence of activities (also

called the value stream)

Eliminate activities that do not add value Allow the customer to pullproducts/services

Improve the process (start over)


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Elimination of waste

Increased speed and response Improved quality Reduced cost


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Over production Waiting time Transportation Processing Inventory Motion Production defects


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Quick and efficient response Getting goods to market Producing to customer demand and delivery

requirements Responding to competitors actions Collecting payments

Addressing to customer inquiries and problems


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Raw material should not be bad Inconsistent processing operations Machine break down Eliminating the sources of defects and errors


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Reduced waste and improved quality

Efficient equipment

Better preventive maintenance

Smaller inventories


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A systematic approach to identifying and eliminating waste

(non-value added activities) through continuous improvement

by flowing the product at the pull of the customer in pursuit of

perfection.

The MEP Lean Network

Lean is:


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8 Wastes

Overproduction Excess inventory Defects

Non-value addedprocessing

Waiting Underutilized

people

Excess motion Transportation

Lean = Eliminating the waste

Typically 95% of Total Lead Time is Non-Value Added!!!

Value added

5%

Non-value added


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Zero defects

100% value-add Lot size of one Pull of the customer

TSSC


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Where has Lean been successfullyimplemented?

ManufacturingAutomotiveIndustrial ProductsFurnitureTextiles and ApparelPrinting and PackagingConsumer Products

Service IndustriesMilitaryHealthcare


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A simple diagram of every step involved in the material and

information flows needed to bring a product from order to delivery.

Value stream maps can be drawn for different points in time as away to raise consciousness of opportunities for improvement.

- Lean Lexicon

1.Value Stream Mapping


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Value-added:

ANY ACTIVITY THAT PHYSICALLY CHANGES THEMATERIAL BEING WORKED ON (not rework/repair!)

Machining Knitting

Drilling Spreading/Cutting Assembly Dying

Painting Sewing

Non-value added:

ANY ACTIVITY THAT TAKES TIME, MATERIAL, OR SPACEBUT DOES NOT PHYSICALLY CHANGE THE MATERIAL

Sorting Stacking

Counting Checking


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Operations safely carried out with all taskorganized in the best known sequence and byusing the most effective combination of

resources

huMans

Materials

Methods

Machines


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3.The 5Ss

SortKeep only what is needed in your area

SetA place for everything and everything in its place

ShineClean up the workplace

Standardize

Develop system (rules) to maintain what has been doneSustain

Self discipline to maintain established procedures


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Visual Controlsare simple signals that provide an immediateunderstanding of a situation or condition. They are efficient, selfregulating, and worker managed.

Example: if machine fails or a part is defective or manufacturedincorrectly, a light might turn on or a buzzer might sound, indicating thatimmediate action should be taken.


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MASS PRODUCTION A specific process for each item takes place at the same time on a

batch of items, and that batch does not move onto the next stageof production or inspection until the whole batch is done. eg.baking cookies, or making shoes of two differentcolours(producing similar things, but with variants.)

SINGLE PIECE FLOW Single piece flow is characterized by working on one product at a

time. Some of these benefits include (1) improved quality andfewer defects (2) reduced inventory (3) less space required, (4)enhancement of overall manufacturing flexibility, (5) improvesemployee morale


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Technology becoming increasinglyimportant.

Expert systems which use intelligent rulesto make logical decisions. Used for Machine scheduling, Web auction

bidding.


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Layout of offices, equipment and processes isdesigned according to the best operational

sequence. Standardizing the individual tasks by clearly

specifying the methods and procedures. To reduce wasted human movement and

energy.


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Not possible with suppliers who miss deliverydates or provide poor quality goods.

Possible only when the communication is onreal-time basis. Shipments in containers standardized in size

and shape.


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Refers to quick setup or changeover oftooling and fixtures in processes so that

multiple products in small batches can be runon the same equipment.


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Requires uniform and stable production planschedules.

Using small lot sizes Reducing the workloads at workstation.


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Quality at the source

Doing it right the first time

Eliminates the opportunities for waste

Flexible and well educated work force

Inspecting your own work eliminates jobs along the process and

inspection stations

Results in an effective leaner operating system


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Make lean principles work one must go to the root case of problems andpermanently remove it.

Continuous improvement initiatives team work among all managers andemployers.

Six sigma and Lean Six Sigma Lean tools are used to stream line an order entry process discover

significant reworks occurring because of incorrect addresses. Six Sigma used to drill down to the root cause of the problems Both aim to eliminate waste from the value chain and improve the design

and operations of goods services and process. Driven by customer requirements and market strategies focus on dollar

savings and ability to make financial impacts.


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Ensuring the operating system to perform their intended functionreliably.

Prevent equipment failures and downtime to have zero accidents, zerofailures and zero defects.

Create worker ownership of the equipment by involving them inmaintenance activities.

Foster continuous efforts to improve equipment operations throughemployee involvement activities.

TPM predicts equipment failure rates and performance maintenance

before a problem arises. Lean maintenance.


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Reduce cost and essentially do more with less

Green manufacturing

Repairing

Refurbishing

Remanufacturing

Cannibalizing

Recycling


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Just in Time is defined as philosophy of manufacturing based

on planned elimination of all waste and continuous

improvement ofproductivity.

JIT is a philosophy developed by the Toyota motor companyin the mid 1970s.

It has become the standard of operation for many industries.

Objective of producing the right part in the right place at the

right time.

Focuses on simplicity, eliminating waste, taking a broad view

on operations, visibility and flexibility.

Traditional manufacturing system use push production

whereas JIT uses pull production.


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It is a coordinated production system that enables the right

quantities or parts to arrive when they are needed and where

they are needed.

JIT considers people to be the organizations most importantresource.

JIT is equally applicable in service organization


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Takt time = Available time per time period /Market demand

rate per time period

Takt time is the production rate for one good or service basedon the rate of sales.

Takt time is used in Lean operating systems and is equivalent

to cycle time for assembly line balancing.


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JIT manufacturing focuses on production system to achieve

value-added manufacturing.

TQM is an integrated effort designed to improve quality

performance at every level. Respect for people rests on the philosophy that human

resources are an essential part of JIT philosophy


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Reduction in Inventories

Improved quality

Shorter lead times

Lower production costs Increased productivity

Increased machine utilization

Greater flexibility


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Aims to enhance supply chain integration bysupporting and assisting joint practices

By voluntary interindustry commercestandards in 1998 cooperative management of inventory

through joint visibility and replenishment of

products throughout the supply chain


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Information shared between suppliers andretailers aids in planning and satisfying

customer demands through a supportivesystem of shared information Links sales and marketing best practices to

supply chain planning and execution

processes


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allows for continuous updating of inventoryand upcoming requirements, making the

end-to-end supply chain process moreefficient. . Efficiency is created through the decrease

expenditures for merchandising, inventory,

logistics, and transportation across all tradingpartners.


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1. Develop Front End Agreement2. Create the Joint Business Plan

3. Create the Sales Forecast4. Identify Exceptions for Sales Forecast5. Resolve/Collaborate on Exception Items6. Create Order Forecast

7. Identify Exceptions for Order Forecast8. Resolve/Collaborate on Exception Items9. Order Generation


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1) Strategy and Planning2) Demand and Supply Management

3) Execution and4) Analysis.


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24 Lean Thinking