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8/3/2019 ATN - Lean
1/25
Lean EnterpriseLean Enterprise
ImplementationImplementationThe University of Alabama in Huntsville
www.atnlean.comwww.atnlean.com
ean oncep sean oncep s
TrainingTraining
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Housekeeping Issues
Sign the sign-in sheet
2-hrs long
1 break
If you need a break, quietly excuse yourself
22
Open classroom
If you have any questions or comments, speak up
Please silence your cell phone
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Alabama Technology Network
Lean Enterprise
Quality Systems
Health, Safety, and
33
nv ronmenta erv ces
Human Resources and
Organizational Development
Workforce Development
Strategic Management
Technical Services
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
UAH-ATN Lean
KAIZEN EVENTS
44
& TRAINING
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
History of ManufacturingCustomer
Requirements
55
1700s 1800s 1900s 2000
One at a Time
High Quality
High Customization
Employee Involvement
Customer Driven
Flexible
Higher Quality
Division of Labor
Product Availability
Quality Problems
Craftsman
Mass Production
Lean Manufacturing
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Typical Facility
5,000 Operations
66
175 EmployeesSales $ 50 Million
Expenses $ 52 Million
Universityof Alabama in Huntsville
8/3/2019 ATN - Lean
3/25
The University of Alabama in Huntsville
1980s and 1990s Strategy
5,000 Operations
77
150 EmployeesSales $ 45 Million
Expenses $ 50 Million
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Lean Philosophy
4,000 Operations
88
175 Employees
Sales $ 50 Million
Expenses $ 45 Million
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
The Market Place is a Jungle
Every morning in Africa, a Gazelle wakes up.It knows it must run faster than the fastest lion
or it will be killed. Every morning a lion
99
wakes up. It knows it must outrun the slowestgazelle or it will starve to death.
It doesnt matter whether you are a lion or agazelle - when the sun comes up, you hadbetter be running.
Universityof Alabama in Huntsville
8/3/2019 ATN - Lean
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The University of Alabama in Huntsville
Q - Quality-
Customer Satisfaction
1010
C - Cost
Cost + Profit = Selling Price Selling Price Cost = Profit
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
If you always do,
what youve always done,
youll always get,
How Do We Improve?
1111
.Goal
100
90
80
70
60
50
40
30
20
10
0
Goal
100
90
80
70
60
50
40
30
20
10
0
Goal
100
90
80
70
60
50
40
30
20
10
0
Goal
100
90
80
70
60
50
40
30
20
10
0
Last Week Last Month Last Year 5 Years Ago
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Why should I use a nail gun?Ive use this hammer
for 10 years, and it works just fine.
Mirror, mirror on
the wall.
Why Is Change So Difficult?
1212 Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Value Added
Waste of WorkersWaiting, Rework
Inspection
Total Lead Time
Value Added- Any activity that increases the market form orfunction of the product or service (things the customer is willing to
pay for).Non-Value Added Activities must be eliminated, simplified,reduced or integrated.
13Typically 95% of Total Lead Time is Non-Value Added!
Value
Added
Time
a st e o a c n es
Machine Breakdowns
Machine Setup
Waste of Material
Transport
Storage
Waste of Information
Order Processing
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Defining Lean
A systematic approach
to identifying and eliminating waste
(non-value-added activities)
1414
roug con nuous mprovemen
by flowing the product
at the pull of the customer
in pursuit of perfection
-- The MEP Lean Network Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Time Management
1515
Compressing customer lead time by
eliminating waste Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Learning to See
VALUE ADDING ACTIVITY
Absolute minimum activities whichmust be done to produce customer
requirements:
Every process has wastesthe key lies in seeing itEvery process has wastesthe key lies in seeing it
1616
Things that customers pay for
NON-VALUE ADDING ACTIVITY
Any resources like labor, space, materials
spent in the manufacturing process that
customer has no requirements for:
These activities should be eliminated,
simplified, reduced or integrated
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Eight Deadly Wastes
DDefectsefects
OOverproductionverproduction
WWaitingaiting
Every process has wastes
the key lies in seeing it before it
is too late!
1717
ot s ng mp oyee s s ot s ng mp oyee s s
TTransportationransportation
IInventorynventory
MMotionotion
EExcess Processingxcess Processing Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Waste of Defects
Something that doesnt meetspecs
Impact: Inspection and Rework
Material and Labor Wasted
Capacity Lost at Bottleneck
1818
auses:
Lack of communication/information
Doing a process in a rush
Poorly designed products orforms
Deficient planned maintenance
Inadequate education/training
Confusing procedures (or lackof)
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Waste of Overproduction Pr od uc in gMore/Earlier/Faster Than Is
Required By The Next Process
Got a Hunch, Order a Bunch
E-mail blasts
Impact: Inventory carrying cost Obsolescence/damage
Inventory management system
1919
Inflates assets on the balance sheet
Causes
Poor process control/Just-in case
Poor supplier quality
Traditional accounting beliefs
Unbalanced workloads (busy work)
Long changeover times
Unlevel schedule/workload
Poor communication
Batching paperwork Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Waste of Waiting
Waiting For ???
Impact: Nothing happens
Everyone in the chain is idle
Lost time
2020
Unplanned maintenance
Redundant or unnecessaryapprovals
Long setup time
Doing external tasks internally
Upstream quality problems
Unlevel scheduling Poor communication
Items sitting in inboxes Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Waste of Non-Value Added Processing
Effort which adds no value to the
product from the customers
viewpoint
Impact:
Employees work harder than
2121
required
Ineffective use of time
Causes:
Product change without process
change
Just-in-case logic
True customer requirements
undefined
Long changeovers Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Waste of Transportation
Transporting Parts and
Paperwork Around the Plant Long moves
Double and triple handling of materials Conflicting work instructions
Moving to central copiers and printers
2222
Adds cost without adding any value
Damage can occur during movement
Causes: Poor layout
Batch processing
Functional departments
Poor understanding of the process flow
(including paperwork)
Poor planning Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Waste of Inventory Any Supply in Excess of Customer
Requirements Necessary to Produce
Goods Just in Time
Acceptance of Overproduction
Computer and hard copies of unneeded
files
Impact: Cluttersworks ace
2323
Causes waste of motion/searching
Obsolete
Causes defect
Reduces urgency to resolve problems
Causes: Just in case
Unbalanced work
Reward system
Unreliable shipments by suppliers Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Waste of Motion/Searching
Any movement of people or
machine that does not add value to
the service
Going to warehouse for supplies
Searching for tools and spare parts
Impact:
2424
Lose time
Everything in value chain stops
Work teams idled
Injur y
Causes:
No ergonomic principles applied
Poor workplace organization
Inconsistent work methods
Poor layout
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Waste of Employees KSAs
Only utilizing people from the neck
down
I manage, you operate
Shut up, keep your head down, and do asyou are told
Impact:
2525
Continue to have the same problems every day
No sense of teamwork
Management forces decisions on employees
without input
Causes: Old school managers
Job titles
Poor hiring practices
Low or no investment in training
Lack of investment in employee development Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Environmental Wastes
WWater Pollution and Disposalater Pollution and Disposal
AAir Emissionsir Emissions
SSolid Waste and Scrapolid Waste and Scrap
26
--
EEnergynergy
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Waste
Waste is really asymptom rather than aroot cause
of the problem
Waste points to problems within the system (At
bothprocess & value-stream levels)
We need to find and addressroot causes of waste in
2727
the system
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Traditional Problem Solving
2828
Who Did It? Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Drill to the Root Cause of the Problem
Problem: Undersized parts off stamping press
1. Why were short parts coming off Press #2? Length ofblank var in out o the Coil Feeder
The 5 Whys
2929
2. Why.? Feeder rollers slipping
3. Why.? Coil has too much oil on it
4. Why.? Coil has been rusting
5. Why.? Oil dries on coils sitting outside
6. Why.? Lack of storage in coil bay due to rejected
material waiting on disposition sitting in bay.
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Causes of Waste
Layout
Set-Up
Poor Maintenance
Lack of Training
v
Poor Work Methods
Lack of Workplace
Organization
Inconsistent
Performance
3030
Communication
Measures
IneffectiveScheduling
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
INVENTORY LEVELHIDDEN PROBLEMS
Where Problems Hide
3131
LATE
DELIVERIES
COMPLEXITY
ISSUESCYCLE
TIME
QUALITY
PROBLEMS
LONGLEAD TIMES
CAPABLE
PROCESS
CHANGE
OVER TIME
MACHINE
BREAKDOWNS
LOT
SIZES
VARIATIONNON LEVEL
SCHEDULESPOOR
COMMUNICATION
NON FLEXIBLE
LAYOUTS
PREMIUM
FREIGHT
University of Alabama in Huntsville - Manufacturing Extension Program
The University of Alabama in Huntsville
Low Level of WIP
CAPABLE
PROCESS
3232University of Alabama in Huntsville - Manufacturing Extension Program
LATE
DELIVERIES
COMPLEXITY
ISSUES
CYCLE
TIME
QUALITY
PROBLEMS
LONGLEAD TIMES
CHANGE
OVER TIME
MACHINE
BREAKDOWNS
LOT
SIZES
VARIATION NON LEVEL
SCHEDULESPOOR
COMMUNICATION
NON FLEXIBLE
LAYOUTS
PREMIUM
FREIGHT
The University of Alabama in Huntsville
UAH Lean Enterprise
Continuous
Improvement
3333
Workplace
OrganizationVisual
Management
Standardized
Work
Plant Layout
Quick
Changeover
POUS
Kaizen
Quality @ Source Teams
TPM
Mapping
Stream
Value
Batch Reduction
Cellular/TAKT
Kanban
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Workplace Organization (5s)
Sort - what is not needed, sort
through, then sort out; When in
doubt, throw it out!
Set-In-Order - what must be kept;
make it visible and self-explanatory
3434
Shine - everything that remains.
Clean equipment, tools and
workplace
Standardize - the clean routine to
other areas. Make it more automatic
Sustain - requires discipline, stick to
the rules and make them a habit
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Benefits of 5s
A workplace that is clean, organized, orderly,
safe, efficient, and pleasant results in:
Fewer accidents
3535
mprove e c ency
Reduced searching times
Reduced contamination
Visual workplace control
A foundation for all other lean improvements
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Visual Management
Visual methods include:
Signs
Visual references
Check sheets
Illustrations
3636
Communication boards
Visual work instruction
Labeling
Photographs
Production boards
Lights/Sirens
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Raw Stock
Q C RecShip
Q C
Plant Layout
3737
Shear
MachineStamp
AssemblyBrake Mill
Lathe
Weld FinishGrind Parts Stock
Drill
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Traditional Layout Problems
Complex schedule and material handling
Excessive inventory
Poor communication
3838
Long lead times
Large lots
Specialized workers
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
T - Together
E - Everyone
A - Achieves
Teamwork
3939
-
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Lean Workforce Practices
Teams with rotation of highly specified jobs.
Cross trained and multi-skilled employees
Continuous improvement philosophy
Participatory decision making
40
Employee involvement teams
Team-based problem solving
Suggestion systems
Kaizen Blitz, etc.
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
30%Trial runs andadjustments
Preparation; after-processadjustment; checking; moving
parts materials and tools
Quick Changeover
Definition: Changing over a process to produce a different product
or service in the most efficient manner.
4141
5%
15%
Removing and
mounting parts
and tools
Machine measurements,
settings and calibration Universityof Alabama in Huntsville
The University of Alabama in Huntsville
How Can We Improve Changeovers?
Identify waste in theprocess and eliminate it
Use good planning
Stage materials before
shuttin e ui ment
4242
down
Identify and trainpeople the best way
Be consistent Measure and manage
the process
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
10 minutes
10 minutes
Batch & Queue Processing
Lead Time: 30+ minutes for total order
10 minutes
ProcessA
ProcessB
ProcessC
Batch Size Reduction
43
+ mnu es or rs pece
Batch Size Reduction
5 minutes5 minutes
Lead Time: 15+ minutes for total order
5 minutes
ProcessA
ProcessC
ProcessB
11+ minutes for first piece Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Standardized Work
Operations organized in the safest, best known sequenceusing the most effective combination of resources:
1. Break job down into essential elements
4444
2. Examine each element in detail3. Determine best and safest method for
each based on fundamentals and data4. Establish and teach the standard
5. Sustain by attention and repetition6. Improve the standard when better method
is found
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Date 04/14/05
Revision 0
Startup and Normal Operation
Note: If any problems are encountered, pushing the e-stop will shut everything down on
the unloader
Note: If any problems are encountered (mechanical, electrical or otherwise), call them
in to supervisor and to tower. Tower will log maintenance ite ms so that theymake the daily maintenance list; Be specific enough that maintenance knows
what the problem is
North
Inshore
Example: Barge Unloader Procedures
4545
Note: Inform tug boats of any delays encountered
Note: Check radio and communication board at start of shift
1 Pull e-stop
2 Perform visual inspection
3 Perform checklist duties
4 Check trolleylimits
Note: If new to equipment, 295 in and 295 out are good starting trolleylimit settings;
With experience, operators can set slightly higher limits
Note: To check and adjust limits, stop bucket if running, travel trolley to side of barge to
get measure, take reading from panel, set new limit if needed
South
Outshore
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The University of Alabama in Huntsville
Source Inspection: Operators must be certain that products they pass to the
next work station are of acceptable quality
Inspection tools: Operators have the means to perform inspection at the
Quality at the Source
4646
source, before they pass it along
Visible samples or established standards
Process quality, not inspection
Own Process End of Line Final Inspection Customer Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Poka-Yoke
Examples:
Manhole cover
Clearance bar in parking garage
VCR (Only insert tape one way)
Car lights beep when left on
4747
Limits on equipment preventoverloading and damage
Load limits
Positions limits
Scale readings
Machine guarding
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Point Of Use Storage
Raw material is stored where
used
Works best if vendorrelationship permits frequent,
on-time, small shi ments
4848
Simplifies physical inventory
tracking, storage, and handling
Small lot containerization
Mixed load conveyance
Opportunity for inventoryreduction
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Total Productive Maintenance
TPM is a process that maximizes the productivity ofequipment for its entire life cycle and will extend the
life of the equipment. Goal is to minimize downtime due to breakdown
maintenance and to maintain machines at peak
4949
performance
Through the participation of all employees
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
10 minutes
10 minutes
Batch & Queue Processing
Lead Time: 30+ minutes for total order
10 minutes
ProcessA
ProcessB
ProcessC
Batch Size Reduction
50
+ mnu es or rs pece
Batch Size Reduction
5 minutes5 minutes
Lead Time: 15+ minutes for total order
5 minutes
ProcessA
ProcessC
ProcessB
11+ minutes for first piece Universityof Alabama in Huntsville
The University of Alabama in Huntsville
One Piece Flow
Benefits of Batch Size Reduction
Reduces overall lead time
Greater flexibility to changes in
5151
demand
Reduced WIP and inventory costs
Reduced quantity of defects
Easier to maintain FIFO/lot control
Foundation for a pull system
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
10 minutes
10 minutes
Batch & Queue Processing
Lead Time: 30+ minutes for total order
10 minutes
ProcessA
ProcessB
ProcessC
Continuous Flow Processing
52
21+ minutes for first piece
12 min. for total order3 min. for first part
ProcessB
ProcessA
ProcessC
Continuous Flow Processing
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Pull System
Pull System - a method of controlling the flow of resources by replacingonly what has been consumed.
Eliminates wastes of handling, storage, expediting, obsolescence, repair,
rework, facilities, equipment, excess inventory (work-in-process and finished).
Pull System consists of:
-
5353
- Small lots
- Low inventories
- Management by sight
- Better communication
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Kanban
Tool used to operate the pull system
Signal toProduce or Convey
Includes information about
What
5454
When
Where
How Much
Can take many forms
May include outside suppliers
tore ress
Supplier
Part No.
Kanban #
ne ress
Quantity Card #
Line Name
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The University of Alabama in Huntsville
Kanban Systems
An approach to production that, when implemented, eliminates
sources of waste in the production flow.
Orders CASH ($)
Material
K
A
K
A
K
A
RoteRoteRote RedRoteRote RedRedRote RedRedRed RedRedRed
5555
Supplier ASSY TestNB
A
N
N
B
A
N
N
B
A
NMaterial Flow
Information Flow
Make what customer wants, when customer
wants it
Next process is the customer
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Cellular Manufacturing
Link manual and machine operations into the most efficient
combination to maximize value-added content while minimizing waste.
LatheLathe MillMill MillMill InspectInspectDrillDrill11 22 33 44 55
5656
DrillDrill
TestTestDrillDrill
PackPack
1010 99 88 77
66
2727SecondsSeconds
2727SecondsSeconds
InspectInspect
2727SecondsSeconds
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Refining the Cell: 5 Step Process
Step 1: Group Products
Step 2: Assess Demand, Establish Takt Time
5757
Step 3: Review Work Sequence
Step 4: Combine Work in Balanced Process
Step 5: Design Cell Layout
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
TAKT Time
Takt Time = Demand RateTakt Time = Demand Rate
Takt Time =Takt Time = Work Time AvailableWork Time AvailableNumber of Units SoldNumber of Units Sold
5858
300 seconds300 seconds
30 units30 units= 10 sec/unitTakt Time =
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Step 3: Review Work Sequence
Observe each workers sequence of tasks
Break operations into observable elements
Identify Value-Added versus Non- Value-
5959
-
Added time
Study machine capacity, cycle times and
changeover times
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Review Work Sequence and Work Balancing
10
15
20
Unbalanced Line
10
15
20
Balanced Line
TAKT
Time
60
0
5
A B C D E
Operation
0
5
A B C D E
Operation
Takt Time = 10 seconds
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Step 5: Design and Construct Cell
Design Goals
Flexible layout, lot size = 1, Point of Use Storage
(POUS), visual management Mixed models
Simplify Flows
6161
Integrate process operations, materials flow one way
Minimize Materials Handling
Concentrate on value-added motion
Establish material replenishment procedure
Make Use of People 100 Percent
Promote visibility and flexibility
Operators stand for flexibility Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Step 5: Design & Construct Cell
62Optimal
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
10 minutes
10 minutes
Batch & Queue Processing
Lead Time: 30+ minutes for total order
10 minutes
ProcessA
ProcessB
Process
C
Continuous Flow Processing
63
21+ minutes for first piece
12 min. for total order3 min. for first part
ProcessB
ProcessA
ProcessC
Continuous Flow Processing
Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Tube Factory
Lets RedesignUsing the
6464
Manufacturing
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Growth Strategy
Satisfy the Customer
Sales
Improvement
6565
Invest in Employees
Grow the Company
Profit
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Kaizen and Lean
Kaizen is the vehicle of implementation for Lean
tools
6666 Universityof Alabama in Huntsville
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The University of Alabama in Huntsville
Kaizen Event
Kaizen is the process
of:
Identifying &eliminating waste
as quickly as possible
6767
at the lowest possible
cost
Kaizen requires:
Continuous, gradual,
persistent improvement
by all employees and
management
Kaizen utilizes: Cross functional team
Focused scope
Aggressive goal Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Lean Thinking
Womack and Jones FiveWomack and Jones Five--Step ApproachStep Approach
1. Find a change agent
2. Find a sensei
6868
.
4. Map your value streams
5. Pick something and get started
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Lean Thinking
Womack and Jones FiveWomack and Jones Five--Step ApproachStep Approach
1. Find a change agent (how about you?)
2. Find a sensei (a teacher)
3. Seize or create a crisis
6969
Most jump from Step Three to Step FiveMost jump from Step Three to Step Five
5. Pick something and get started
And skip Step Four!And skip Step Four!
4. Map your value streams
Universityof Alabama in Huntsville
8/3/2019 ATN - Lean
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8/3/2019 ATN - Lean
25/25
The University of Alabama in Huntsville
%
90% 90% 90%75%
Quality
90%
UnitCost
25%
Inventories
90%
LeadTimes
90%
ScheduleCompliance
75%
FloorSpace
50%
Kaizen Improvement Potential
I
M
PRO
V
E
M
E
7373
25%
50%NT
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Conclusion
Lean
Simple and visual
Demand driven
Inventory as needed
Reduce non-value
Traditional
Complex
Forecast driven
Excessive inventory
v -
7474
added
Small lot size
Minimal lead time
Quality built
Value streammanagers
work
Batch production
Long lead time
Inspected-in
Functional Departments
Universityof Alabama in Huntsville
The University of Alabama in Huntsville
Housekeeping Issues
If you havent signed the sign-in sheet, please do so
before you leave
7575 Universityof Alabama in Huntsville