Lean Manufacturing

Erika MartinezRoger Garcia

What is Lean Manufacturing?

Work in every facet of the value stream by:

Eliminating waste to reduce cost

Maximizing or fully utilizing activities that add value from the customer’s perspective

Generate capital

Bring in more sales

Remain competitive in a growing global market

The value stream, defined as “the specific activities within a supply chain required to design, order and provide a specific product or value”

What is Lean Manufacturing?

“Lean” focuses on abolishing or reducing wastes (“muda”) and on maximizing or fully utilizing activities that add value from the customer’s perspective.

Value is equivalent to anything that the customer is willing to pay for in a product or the service that follows

The Seven Wastes in Manufacturing

Over Production Producing more material than is needed before it is needed

Inventories Take space, costs and can be damaged

Producing Defective Products Impede flow and lead to wasteful handling, time and effort

Motion excessive bending or stretching and frequently lost items

The Seven Wastes in Manufacturing

Processing Extra processing not essential to value - added

Transportation Moving material does not enhance the value of the product to the customer

Waiting Material waiting is not material flowing through value-added operations

Lean Manufacturing Tools and Techniques

Cellular Manufacturing Arrangement of people,

machines, materials, and methods with the processing steps placed right next to each other in sequential order, through which parts are processed in a continuous flow

Continuous Improvement

Kaizen is a systematic approach to gradual, orderly, continuous improvement.

One of the most effective tools of continuous improvement is 5S modular step toward serious waste reduction Seiri (Sort) Eliminating unnecessary items from the workplace Seiton (Straighten) Focused on efficient and effective storage methods Seiso (Sweep and Clean) clean the work area Seiketsu (Systemize) standardizing best practice in your work area Shitsuke (Standardize) defining a new status quo and standard of work place

organization

Just in Time

Management idea that attempts to eliminate sources

of manufacturing waste by producing the right part

in the right place at the right time

Getting Started with Lean

1. The first step in value stream mapping is to choose a product family as the target for improvement products group by similar sequence of final processing steps and machines

2. Draw a current state map to take a quick view of how things are being done now shipping department, and then working ones way up to the upstream processes

3. Create the future state map highlight the sources of waste and help make target areas for improvement visible

Getting Started

Creating a future state map is done through

answering a set of questions with regards to issues

related to building of the future state map, and

technical implementation related to the use of lean

tools.

1. Do you have the Right end Items?

Flexibility

Product A Product B

If demand gyrates between products and you can keep changeover times short share products between mix- model cell

Products A&B

Assign right products to the pacemaker process

Demand high enough to allow you to dedicate individual products so their own cells or lines

2. What is the Takt Time?

Reference number that is used to help match the rate of production in a pacemaker process to the rate of sales

Demand per production shift

shiftper demandCustomer

shiftper work timeAvailable TimeTakt

Cycle Time

How frequently a finished unit actually comes off the end of the pacemaker

Cycling much faster than takt may require more people

Takt time

Cycle time

Extra operator

Setting the pace

Takt time is customer demand (which can not be changed) divided into available production time (which can be changed)

The available production time # or length of shifts

The number of end items produced in a cell

The number of cells making a particular end item

3. What are the Work Elements for Making one Piece?

Work Element “The smallest increment of work that could be moved to another person” Always break work into elements. It would help identify and eliminate waste

that is otherwise buried within the total operator cycle

Paper Kaizen Elimination of waste! What not to include as work element:

Walking Out-of-cycle work for operators Operators waiting for machines to cycle Time for removing finished parts from machines wherever an automatic eject

could be introduced

4. What is the Actual Time Required for Each Work Element?

It is needed to go to the workplace and use stop watches Collect real times at the process Position yourself so you can see the operator’s hand motions Time each work element separately Time several cycles of each work element Observe an operator who is qualified to perform the job Always separate operator time and machine time Select the lowest repeatable time for each element Remember shop floor courtesy!

5. Can your Equipment Meet Takt Time?

Each machine must be able to complete its cycle on each part within takt time

The ‘effective cycle time’ of each machine should be considerably less than takt time if continuous flow is to be achieved Effective machine cycle time:

schangeover between pieces of numberby divided time changeover )( time unload and load

piece per time cycle Machine cyclecannot machine the whichduring

6. How much Automation?

Load Machine

Machine Cycle

Unload Machine

Transfer Part

1

2 Auto

3 Auto Auto

4 Auto Auto Auto

5 Auto Auto Auto Auto

LEVE

L

The Great Divide

Levels of Automation

Remove a finished workpiece from Machine 1

Place a new workpiece in Machine 1

Start Machine 1 (which then cycles unattended)

Carry the finished workpiece to Machine 2 (the next processing step)

Repeat the sequence at Machine 2

7. How can the physical process be laid out so one person can make one piece as efficiently as possible?

Arrange the machines, workstations, and material presentation devices as if only one operator makes the product from beginning to end Avoids isolated islands of activity Minimizes inventory accumulation between processes Eliminates excessive walking Removes obstacles in walking paths Brings the people-driven, value-creating steps as close to one another

as possible

8. How many operators are needed to meet Takt Time?

Operators of Number

TimeTakt kaizen) paper (afterContent Work Total

Remainder in # of operators calculation (aftert paper

kaizen)

Guideline / Target

< .3Do not add an extra operator Further reduce waste & incidental work

.3 - .5

Do not add an extra operator. After two weeks of cell operation & kaizen, carefully evaluate if enough waste & incidental work can be taken out.

> .5

Add an extra operator if necessary and keep reducing waste & incidental work to eventually eliminate the need for that operator in the cell.

Guidelines for determine the number of operator in a cell

9. How will you distribute the work among the operators?

Some approaches to consider: Split the work The circuit Reverse flow Combinations One-Operator-per-Station The Ratchet

Split the Work

Split the Work among operators so each performs one takt time worth of the total work content, often moving between several machines

Raw material

Finished product

Operator 3

Operator 2

Operator 1

Circuit work distribution

The Circuit One operator performs all the work elements to make a complete circuit of the cell in the direction of material flow. A second operator follows a few stations behind

1 2

Return walking distance

Reverse Flow

Reverse Flow The operators make a circuit in the reverse direction of the material flow

Finished product

Raw material

Machine 3

Machine 1

Machine 2

Part holding positions

Material flow

Operator flow

Combination work distribution

Combinations of splitting the work and a circuit or reverse flow

3 2 1

Raw material

Finished product

(circuit portion)

One-Operator-per-Station Distribution

One-operator-per-Station Each operator stays at one workstation

Empty station for volume increase

Material flow

1 2 3 4

The Ratchet The Ratchet Each operator works two machines and

“ratchets” the work piece ahead each time the operator moves to a downstream machine

Work station responsibility in the RatchetOperator 1: Workstation A+B Operation 3: Workstation C+DOperator 2: Workstation B+C Operation 4: Workstation D+E

A B C D E

1 3

2 4

10. How will you schedule the pacemaker?

In order to maintain continuous flow and a lean value stream Schedule and operate a cell ‘Leveling the volume’ of work

Decide the most appropriate batch sizes to run before changing over to another product type ‘Leveling the product mix’

Both must be part of the cell design process

11. How will the pacemaker react to changes in Customer Demand?

Absorb day-to-day customer fluctuations with a finished goods supermarket

Run a little overtime each shift It is better than to stop production a little early because operator productivity stays high

Toggle the number of operators

Comparison between "traditional" and

"Lean" manufacturing

Area Traditional Manufacturing Lean Manufacturing

Scheduling Forecast - push Customer Order - pull

Production Stock Customer Order

Lead Time Long Short

Batch Size Large - Batch & Queue Small - Continuous Flow

Inspection Sampling 100% - Source

Layout Functional Product Flow

Empowerment Low High

Inventory Turns Low - <7 turns High - 10+

Flexibility Low High

COGS (Cost of good sold) High and Rising Lower and Decreasing

Lean manufacturing is not only a project or program. It is way of thinking.

Lean manufacturing is not only a project or program. It is way of thinking.

Six Sigma is focused on reducing variation and improving process yield by following a problem-solving approach using statistical tools.

Lean is primarily concerned with eliminating waste and improving flow by following the Lean principles and a defined approach to implement each of these principles.

In fact these two processes are incredibly similar in their goals, methods, and applications.

Both the Lean and the Six Sigma methodologies have proven over the last twenty years that it is possible to achieve dramatic improvements in cost, quality, and time by focusing on process performance.

Integrating Lean and Six Sigma

Integrating Lean and Six Sigma The impressive results companies such as Toyota, General

Electric, Motorola, and many others have accomplished using either one of them have inspired many other firms to follow their example. As a result, most companies have either a Lean or Six Sigma program in place.

However, using either one of them alone has limitations: Six Sigma will eliminate defects but it will not address the

question of how to optimize process flow; and the Lean principles exclude the advanced statistical tools

often required to achieve the process capabilities needed to be truly 'lean'.

While each approach can result in dramatic improvement, utilizing both methods simultaneously holds the promise of being able to address all types of process problems with the most appropriate toolkit. For example, inventory reduction not only requires reducing batch sizes and linking operations by using Lean, but also minimizing process variation by utilizing Six Sigma tools.

Comparing Lean And Six Sigma

 

  Lean Six Sigma

Goal Create flow and eliminate waste Improve process capability and eliminate variation

Application Primarily manufacturing processes All business processes

Approach Teaching principles and "cookbook style" implementation based on

best practice

Teaching a generic problem-solving approach relying

on statistics

Project Selection

Driven by Value Stream Map Various approaches

Length Of Projects

1 week to 4 months 2 to 6 months

Infrastructure Mostly ad-hoc, no or little formal training

Dedicated resources, broad-based training

Training Learning by doing Learning by doing

 Table 1: Comparing Lean And Six Sigma

Comparing Lean & Six Sigma

Differences to be considered between Lean

and Six Sigma.

Lean projects are very tangible, visible, and can oftentimes be completed within a few days (whereas Six Sigma projects typically require a few months). An integrated approach should emphasize Lean projects during the initial phase of the deployment to increase momentum.

Lean emphasizes broad principles coupled with practical recommendations to achieve improvements. For example, Lean suggests a technique to analyze and reduce changeover time that does not require sophisticated analysis and tools. However, Lean principles are oftentimes inadequate to solve some of the more complicated problems that require advanced analysis. Therefore, Six Sigma needs to be introduced during the first year of the deployment to ensure that the improvement roadmap includes a generic problem-solving approach.

Differences to be considered between Lean

and Six Sigma.

An integrated improvement program needs to be fueled by a vision of the future state and by a pipeline of specific projects that will help close the gap between current and future state. Lean introduced Value Stream Mapping as the central tool to identify the gaps and to develop a list of projects that can be tackled using Lean or Six Sigma methodology.

Differences to be considered between Lean

and Six Sigma.

Whereas the Six Sigma process and tools can be applied to virtually every process and industry, the Lean approach is much more specific and the content needs to be adjusted to industry needs: For example, reducing set-up time in a plant that has lines dedicated to a single product is pointless. Therefore, the Lean curriculum needs to be adjusted to meet the needs of the

specific business.

The following roadmap provides an example for how one could approach the integration of Lean and Six Sigma into a comprehensive roadmap.

Differences to be considered between Lean

and Six Sigma.

Integrating Lean and Six Sigma Roadmap

Lean Sigma-DMAIC integration model

LeanTime VariabilityIncrease SpeedEliminate WasteQuick Fix Solutions

Six SigmaProcess VariabilityImprove QualityIncrease YieldRoot Cause Solutions

Benefits of Lean Six Sigma

It can be applied across various sectors of industry - While it is true that lean thinking first began as an approach in the manufacturing sector, these days Lean Six Sigma is being successfully implemented in industries across the board. It is no longer accurate to say that Lean Six Sigma is only for manufacturing companies.

Immediate functional improvements from the implementation of Lean Six Sigma - You will see reduced production times and costs much faster than you anticipate. The main reason for this quick improvement is the implementation of several different tools including kaizen (a method to continuously analyze and improve processes), kanban (which assists with production), and poke yoke (which works to eliminate mistakes).

Benefits of Lean Six Sigma

Ease of execution - Lean Six Sigma is a powerful tool for transforming corporations, in part because of its ability to create links between strategic priorities and operational improvements. The goals set by a corporation’s top management personnel are the strategic priorities. They usually focus on improved customer experiences and higher returns on investment.

Sustainable management capability - Lean Six Sigma is intricately woven into every aspect of the businesses, making it very sustainable for everyone, from corporate managers down the workers on the floor. The quick results that are obtained from implementing the process are the key to its sustainability.

Benefits of Lean Six Sigma

Increased value for consumers - Real tangible value is created for consumers with the implementation of Lean Manufacturing and Six Sigma. Reduced costs and the improved quality of products are just two of the benefits that consumers of your products or services will enjoy. Most corporation implement Lean Six Sigma for one simple reason, it improves the bottom line of

the corporation.

THANKS,

END