Introduction to Lean Manufacturing

1. Introduction to Lean Manufacturing

2. Lean Manufacturing Definition Lean has been defined in many different ways. “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.” By The MEP Lean Network Intro-To-Lean

3. History Timeline for Lean Manufacturing Intro-To-Lean

4. Lean manufacturing is a philosophy In 1990 James Womack, Daniel T. Jones, and Daniel Roos wrote a book called “The Machine That Changed the World: The Story of Lean Production-- Toyota's Secret Weapon in the Global Car Wars That Is Now Revolutionizing World Industry” In this book, Womack introduced the Toyota Production System to American. What was new was a phrase– "Lean Manufacturing." Intro-To-Lean

5. How to Increase Profit? Intro-To-Lean

6. Muda (Waste) Taiichi Ohno (1912-1990), the Toyota executive who was the most ferocious foe of waste human history has produced, identified the first seven types of muda in manufacturing system: • Storage • Transportation • Waiting • Motion • Process • Defects • Over-productionMuda is everywhere. Intro-To-Lean

7. Lean Overview Intro-To-Lean

8. Lean Manufacturing Tools • 5S • Value Stream Mapping • Standardized Work • Load Leveling • Kaizen • Kanban • Visual Workplace • Quick Changeover • Andon • Poka-yoke • One-piece flow • Cellular Manufacturing Intro-To-Lean

9. Production Planning System (Push System) Intro-To-Lean

10. Push or Pull? A push system Intro-To-Lean

11. Push or Pull? A pull system Intro-To-Lean

12. Kanban Operation Intro-To-Lean

13. Raw materials inventory Semi-finished parts Semi-finished parts Station 2 Material handler Order receiving Station 1 8 4 11 3 14 11 3 10 4 1 11 11 13 13 7 7 7 7 6 2 5 9 12 8 WK WK WK PK PK PK Station 3 RM RM RM Finished goods Intro-To-Lean

14. Current State Map of A Case Study Example Intro-To-Lean

15. At which stations, are parts withdrawn? At which stations, are parts scheduled? Future State Map Intro-To-Lean

16. Which to Choose — MRP (ERP), or Kanban? Where MRP (ERP) works best: • MRP is by its very nature a forward-looking system. • MRP can be very effective in an environment with a great deal of variability. • MRP is recognized an engine to drive an integrated enterprise-wide information system. Purchasing and logistics activities were similarly being integrated with fundamental internal materials management principles into an enterprise-wide approach. Intro-To-Lean

17. MRP or Lean Manufacturing? Where MRP is not as effective. • MRP is a predictive system. It does not reflect to customer’s demand (easy to get overproduction). • A company takes MRP suggestions and acts on them without too much review is very risky. • MRP won’t fully support the cost-cutting. • MRP needs lots of data for production management. • MRP generates high overhead. • MRP builds high work-in-process. • MRP’s lead times are fixed. • MRP creates potential quality hazard. Intro-To-Lean

18. Which to Choose — MRP (ERP), or Kanban? Where Kanban works best. Kanban is a very reactive system. Very little is planned ahead. Instead, Kanban causes replacement of material used in a totally reactive mode. Kanban works best in a highly stable and predictable environment. Where it is not as effective. Kanban can quickly fail in a highly volatile environment because of the reactive nature of the system. Volatility in customer demand, processing problems, and extensive changes in product designs make it very difficult for a Kanban system to work effectively. Intro-To-Lean

19. Which to Choose — MRP (ERP), or Kanban? Kanban and MRP Combination The combination of these two systems is becoming quite common. An MRP system is used for advanced planning, including long lead-time purchased materials, adding resources, and implementing product design changes. Once the MRP has the materials and resources “lined up,” however, Kanban is used as an execution system, bringing with the characteristics of rapid response to customer order and reduced inventory levels throughout the process. Hybrid Systems Intro-To-Lean

20. The Objections to Lean • How should you deal with these objections to lean? • “It is very hard to deal with raw material suppliers if we fully depend on customer order.” • “It takes too much discipline.” • “It takes too long to implement.” • “My process is too complex; I have to deal with too many uncontrollable variables, like late supplier shipments, sick people, etc.” • “My process requires a large batch size.” • “It doesn’t make sense in my industry.” • “It’s unclear to me how lean will work with my MRP system.” Intro-To-Lean

21. Lean and Green The environmental impacts due to production and waste generation have made its way into every day society. Consumers are becoming more environmentally conscious. With the Earth’s limited resources, companies are more conscious of their carbon footprint, and there has been a movement to create more environmentally friendly decisions. Green engineering is the systems-level approach to product and process design where environmental attributes are treated as primary objectives or opportunities rather than simple constraints. Intro-To-Lean

22. lean manufacturing is a link to green engineering Lean manufacturing is the business model and collection of tactical methods that emphasize eliminating non-value- added activities (waste) while delivering quality products at lowest cost with greater efficiency. In conjunction, six goals of green engineering are: Select low environmental impact materials. Avoid toxic or hazardous materials. Choose cleaner production processes. Maximize energy and water efficiencies. Design for waste minimization. Design for recyclability and reuse of material. Intro-To-Lean

23. lean manufacturing is a link to green engineering Population grows Wastes increase Fossil fuels are diminishing and there is nothing replenishing them. Consumers are becoming more aware of the environment and prefer environmentally friendly companies. Being lean and green is so important now to reduce the consumption of natural resources and the CO2 concentration in the Earth’s atmosphere. The only real difference between lean and green manufacturing is that green actually designs the product or process with the environment as a constraint while lean creates a process with the view of the environment as a valuable resource and not a constraint. Intro-To-Lean

24. Key Steps in Transforminga Company to the Lean Approach • Establish a steering team—conduct strategic planning session • Train the steering team and the model line team in the disciplines of lean • Perform PQR (product-quantity-routing) analysis • Identify value streams—select a value stream • Calculate model line takt time • Value stream map the model line—assemble current state map • Balance the line—assign standard work • Establish standard WIP (inventory levels) • Test the system (virtual cell)—document results • Setup reduction event Intro-To-Lean

25. Key Steps in Transforminga Company to the Lean Approach • Conduct 5S event—apply TPM techniques • Establish visual signals—reduce paperwork • Explore alternative flow patterns • Develop block layout • Develop detailed layout • Execute move • Select next value stream and repeat Gary Conner, President of Lean Enterprise Training, Newport, OR, Road Map to Lean for the Smaller Shop, Society of Manufacturing Engineers, Lean Manufacturing 2007, Supplement to Manufacturing Engineering, 2007. pp. 27-29. Intro-To-Lean

26. References • Society of Manufacturing Engineers, Lean Manufacturing 2007, Supplement to Manufacturing Engineering, 2007. • Society of Manufacturing Engineers, Lean Manufacturing 2008, Supplement to Manufacturing Engineering, 2008. • Garrett Brown and Dara O’Rourke, “LeanManufacturingComestoChina: A Case Study of its Impact on Workplace Health and Safety,” International Journal of Occupational and Environmental Health (IJOEH), 13(3), JUL/SEP 2007. • Challenges in Applying Lean Manufacturing in China, McKinsey Quarterly, 2006 Special Edition available at Jackson Library. Friday, October 12, 2007 | Posted by Simone Yu in International Intro-To-Lean