Lean Operations

1. Lean Operations "Looking For Waste In All the Right Places"

2. What is Lean? • A systematic approach to identifying and eliminating waste through continuous improvement. • Lean focuses on the customer, allowing products to be pulled through a continuous flow value stream to meet customer demand. Customer Order Waste Product Shipment LEAD TIME

3. 5% Value Added Non-Value Added • Overproduction • Inventory • Defects • Extra Processing • Waiting • Excess Motion • Transportation • Non-Utilized Talents Lean Manufacturing = Eliminating Waste What is Waste? All actions that take place during a manufacturing process can be classified in one of two ways: • Value Added • Something the Customer is willing to pay for • Any activity that increases the market form or function of the product • Non-Value Added • Task or activity that can be eliminated from a process without deterioration of the function, performance, or quality of a product or service as viewed by the customer) Something the Customer is not willing to pay for • Necessary -Non Value-Added (activities that add no value from the customer’s perspective but are required in order to operate the business, e.g., legal) • Unnecessary Non-Value-Added (activities that add no value from the customer’s perspective nor are the necessary to properly run the business) Typically 95% of Total Lead Time is Non-Value Added!

4. Overproduction Making more, earlier, or faster than its required by the next customer or process. • Leads to excessive inventory • Any supply in excess of one-piece flow through your manufacturing process

5. Inventory Excessive Inventory ties up cash and hides problems. • Occupies valuable floor space • Massive rework campaigns when problems surface • Long lead time for engineering changes • Slow response to changes in customer demands

6. Defective Product Product/Services that do not meet customer expectations • Hidden costs for return of non-conforming product • Cost of sorting internal & at the customers facility • Cost of replacing the defective product • Lost time trying to countermeasure root causes • Lost sales due to the decreasing customer confidence

7. Extra Processing Effort that adds no value to the product from the customers viewpoint • Handling and storage • Doing someone else’s work • Extra operations – poor process planning • Endless refinement

8. Waiting Periods of inactive time caused by no parts, inoperative equipment, waiting on machines to cycle poor communication, or bad planning. • People waiting for machines • Machines waiting for people • People waiting for people

9. Non-Manufacturing Waste In the Office • Non-Utilized Talent • Waiting (need information from other departments) • Information Waste • Redundant inputs and outputs (ensure all processes and tasks are completed once) • Unnecessary data/ Data Dead-Ends (ensure it is needed and going to the right place)

10. Non-Manufacturing Waste In the Office • Information Waste • Manual checking (processes should be electronic and correct any failures in the system) • Data discrepancies (simplify inputs, set organization wide standards)

11. Non-Manufacturing Waste In Retail/ Service • Excess Inventory • Defective Product/ Poor Service • Over Production ( discard food prepared and not sold) • Waiting (no customers for workers to serve/ customers waiting for service)

12. Non-Manufacturing Waste In Retail/ Service • Extra Processing (endless refinement, more than customer expects) • Transportation (inventory distribution chain, storage locations ) • Non-Utilized Talent

13. Set in Order • A place for everything and everything in its place. • Tool cutouts • Taped outline on floor or bench

14. Set in Order • A place for everything and everything in its place. • Tool cutouts

15. Sort and Set in Order • A place for everything and everything in its place.

16. Sort and Set in Order • A place for everything and everything in its place.

17. Sort and Set in Order • A place for everything and everything in its place.

18. Sort and Set in Order • A place for everything and everything in its place.

19. Sort and Set in Order • A place for everything and everything in its place.