Lean Production : Overview

1. Lean Production : Overview By S.Pragash Date : 8th Sept 2013

2. Self Introduction Education : B.Engg in Electronics ( UTM ) M.Sc major in Quality Management (UTM) PhD by research (Utem)  In-progress Profesional experience : 15 years QA Manager (SMITHS DETECTION, NUSAJAYA) QA Manager ( SUNPOWER MALACCA) QA Manager (SEAGATE TECHNOLOGY , JB)

3. What is lean???? • The lean manufacturing process maximizes value and minimizes waste, with the customer as the focal point. This process also continually looks for ways to improve production methods. Lean manufacturing defines value as any feature or product which a customer desires enough to pay for it. Everything that does not contribute toward this end must be eliminated from the lean manufacturing process. • It is the production of goods, using less of everything, i.e; • less human effort • less manufacturing space • less investment in tools • less engineering time etc. • It is a business initiative to reduce “waste” in manufactured products.

4. What is lean???? 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

5. 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."

6. Lean manufacturing is a philosophy….. • TPS is the birthplace of Lean. • Lean Manufacturing, in particular, is essentially a repackaging of the Toyota Production System. Most of the philosophy and • tenets, as well as the methods, techniques, and tools of Lean are all found • within TPS. • What those MIT researchers examined in 1988 and called Lean • was, basically, TPS. The terms Lean Manufacturing and the Toyota Production • System are effectively synonymous.

7. Lean manufacturing is a philosophy…..

8. What is Value? • Value: • Is defined by customer and not by us. • Addresses specific need(s) at specific time and a specific price. • Requires clear understanding of customer. • Enables us to categorize our actions: • Value added (VA) changes form, fit, function of product OR that customer is willing to pay for. • Non value added (NVA) includes all other activities. Minimize Necessary Waste Waste Value Eliminate Optimize

9. Value Adding & Non Value Adding • In any manufacturing enterprise, only those specific activities that transform, enhance or ‘add value’ to a product are said to ‘value adding’. • All other activities are considered to be ‘non value adding’ and whilst they may be required to support the manufacturing of the product, these activities in themselves are ‘non value adding’. • This does not mean that the activity is not required, it simply means that the task in itself adds no intrinsic value to the final product. • To become lean, our objective should be to: optimize the ‘value adding’ & minimize the ‘non value adding’.

10. Value Adding & Non Value Adding • In a lean manufacturing plant, it therefore follows that it is the shop floor members of the ‘Production’ department that are the only ones who add ‘real’ value to the product. • All other employees (whilst important to the processes) are therefore performing actions deemed to be non value adding. • This means that we must all focus on supporting the value adding employees to the best of our abilities, as they are truly our number one internal customer. • All plant service and support functions must then ensure that this ‘value adding’ portion of the business receives the maximum level of support. • It is this group of people who are the driving force for continuous improvement and can deliver substantial results for a company.

11. Non Value Adding In Lean, non-value-added activities are further described by the three Ms — muda, mura, and muri:  Muda (waste): Muda is an activity that consumes resources without creating value for the customer. Mura (unevenness): Mura is waste caused by variation in quality, cost, or delivery. When activities don’t go smoothly or consistently, mura is the result. Mura consists of all the resources that are wasted when quality cannot be predicted, such as the cost of testing, inspection, containment, rework, returns, overtime, and unscheduled travel to the customer. Muri (overdoing): Muri is the unnecessary or unreasonable overburdening of people, equipment, or systems by demands that exceed capacity. From a Lean perspective, muri applies to how work and tasks are designed. Muri is caused by movements that are harmful, wasteful, or unnecessary.

12. HOW DOES LEAN MANUFACTURING WORK & HELP THE BUSINESS? • It reduces cost by: • Improving labor use. • Decreasing inventories. • Reducing manufacturing order to shipment cycle time. • Increasing capacities, without substantial capital inputs • Helps firms produce more with the same resources by eliminating the non-value added activities. • Applies simple techniques to identify / eliminate the wastage and streamline systems. • Focuses on improving the entire process flow. • Emphasizes worker empowerment throughout [“Decent Work”]

13. Application of Lean  • Does this mean that ‘LEAN’ only applies to the shop floor? • Absolutely not! ‘LEAN’ principles can be applied to every part of an enterprise. • It is a common misconception that ‘Lean Manufacturing’ only applies to Production, but in reality it applies to the complete value chain from: Design – Engineering –Production – Sales – After-sales – Service and every other part of an enterprise. • It also applies to all levels and functions in an enterprise. • Even the most senior managers must become coaches, teachers and trainersof ‘Lean’ and demonstrate through their own personal behaviour, that they are truly ‘Lean’ believers. • We must all ‘Walk the Talk’

14. 7 types of Muda  T ravel I nventory M otion W aiting O ver Production O ver Engineering D efects

15. Identifying waste (muda) PEOPLE Motion Processing Waiting TYPES OF WASTE 7 Types of WASTE Fixing Defects Inventory Travel Over – Production Making Too Much Moving Things Inventory Over–Engineering Motion Defects Waiting “Lean” Targets the Waste and Eliminates It ... QUICKLY!

16. Travel/Transportation • What is transportation? • Conveying product, material, tools or personnel to • complete the value stream • Why is it wasteful? • Requires additional resource investment to manage (space, equipment, personnel) • Potential to introduce defects or delays • Congests the workspace Examples Seek Ways to Minimize Travel Distances

17. Over Inventory • What is inventory? • Raw materials/inputs not being utilized • sWhy is it wasteful? • Requires investment without immediate return • Hides flow problems within the value stream • Requires additional resource investment to manage (space, tools, personnel) • Risk of obsolescence Examples Waste Asks for More Waste

18. 16 Screens 5 Applications Motion • What is inventory? • Movement of body or mind to perform work • Why is it wasteful? • Consumes available resource time & energy Examples Treat Individual as a Surgeon … Everything Within Reach

19. Waiting • What is waiting? • Any delay throughout the value stream • Why is it wasteful? • Invested resources not being utilized to deliver value • Lengthens overall span time to complete the value stream Examples When Product Waits … Customers Wait

20. Excess Product Demand uncertainty Defects Lead time Over-production • What is Over-production? • Creating outputs before needed • Why is it wasteful? • Requires investment without immediate return • Hides flow problems within the value stream • Requires additional resource investment to manage (space, tools, handlers) • Risk of obsolescence Examples Do Not Produce What the Customer Does Not Need

21. Over- Engineering/processing • What is over-processing? • Activities that do not add value to the end product • Why is it wasteful? • Consumes resources, tools & equipment available • for value added actions • Potential to introduce defects or variation “Self-Operating Napkin” by Rube Goldberg Examples Take a Garage Shop Mentality … “Would I pay for this?”

22. Defects • What is a defect? • Anything outside of specification limits or incomplete • Why is it wasteful? • Customer dissatisfaction • Requires labor and material to produce a defect • Requires additional investments to contain, correct and resolve defects • Chokes the value stream Examples Reworking Defects Is Waste … Sending to Customers is Sin

23. Lean Manufacturing Tools • Process Flow • 5S • Visual Management • Lean Layout • Pull/JIT • Kanban /Supermarket • Takt Time/Cycle time • Standard Work • Heijunka /Level Loading • VSM • SMED

24. Process Flow

25. Flow • Movement of product/transaction down the value stream • Continuous … any stop or reverse is waste • Flow reduces cycle time and good things happen Time Cost Quality Delivery Flow is the ultimate desired goal for Lean Production.

26. Batch Processing vs. Single Piece Flow A A B C B C • Make Several Pieces • Process interruptions are not noticed until an entire batch is late • Total time is longer • Make a Piece . . . Move On • Process slowdowns and stoppages are evident more readily • Total time is reduced

27. Single Piece Flow - Boeing Example Before … 29 Airplanes After … 14 Airplanes Reduced WIP by 50%; Freed up $500MM in Inventory

28. 5S

29. What is 5S? • Tool for achieving workplace organization • Foundation for Continuous Improvement • Provides Stability for Lean  World Class Manufacturing • Facilitates quality and a safe work place • Anyone at anytime  normal/abnormal at-a-glance (VISUAL) • Purpose – Create and maintain a clean, organized, safe, and high performing work place

30. Lean Tool: 5S • Systematic approach to standardize & control the physical work environment • Used to eliminate waste & improve flow within the workcell

31. Visual Management

32. Visual Management Andon light indicating the current process status Monitor indicating aircraft schedule status

33. Visual Management HR Department Status Board

34. Visual Management A communication, discipline, and pacing tool; anyone can tell at a glance if the production activities are proceeding normally or not. After Before

35. Lean Layout

36. Work Cell Definition B30 • A cell is a group of equipment or operations arranged together in a U shape formation, which; • performs a common sequence of process steps for a family of parts. • is run by a team of multifunction operators circulating between and attending to all the equipment. • team members keep records and have some measure of scheduling autonomy. 4 B40 5 B20 3 B50 6 2 7 Inspection B10 8 1 Material Out Material In

37. Physical Layout – U-shaped Cells • Support one piece flow • Enable developing multi-skilled employees • Eliminate return trips • Support visual control After Before

38. Work Cell Examples A B IN OUT

39. Work Cell Examples OUT IN

40. Right Sizing Only the right amount of resources … • Equipment • Space • Work surface • Material … to support One Piece Flow Before After

41. Cell Design and Layout Fundamentals

42. Pull/JIT

43. Pull • End customer pulls product/transaction through the value stream • Each step pulls the product/transaction when needed from the preceding step • Only the amount required is taken • No action is taken until the downstream process initiates it

44. Pull OK, let me have the next one. Manufacture/Provide Service & Deliver

45. Just-In-Time Just –In-Time provides the customer what is needed, when needed, in the amount needed. 3 Main Elements JIT JIT JIT JIT Jidoka Jidoka Heijunka Heijunka Heijunka Heijunka • Single Piece Flow: A system that completes the process from start to finish continuously. • Pull: A system in which each process takes what it needs from the preceding process, whenever it needs it, and in the exact amount needed. • Takt Time: Frequency at which unit should be completed in order to meet customer demand.

46. Production Sequence and Pull System There are two ways for production. Push Production ○△□×○△. Production plan Process A Process B Process C Process D Production Lead time is long L/T ○△□×○△. Pull Production Production plan Process A Process B Process C Process D Production Lead time is short L/T

47. Kanban /Supermarket

48. Kanban • Kanban is a Japanese term meaning “sign” or “placard”; in Lean manufacturing, we use kanbans as signals within the production process. • Operators will each have an upstream kanban & a downstream kanban. • Kanbans are sized to hold only one item when a process is at One Piece Flow. • An empty downstream kanban is a signal to the operator to perform their operation, pulling material from their upstream kanban.

49. Supermarkets • Closely managed inventory location (“store”) supporting pull • Also known as inventory buffers • Can contain WIP or finished goods • Holds finite amount of product – replenished as withdrawn • Downstream process withdraws / upstream replenishes • Simple inventory management system to drive pull

50. Takt Time/Cycle Time