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Lean Enterprise

Lean Enterprise. Agenda. Lean definition…5 min Lean & the automotive history…5 min The Toyota way…10 min Lean tools…10 min Lean implementation…10 min Q & A (please save them for the end). Let’s start with a definition. Lean constitutes a philosophy / culture of how to satisfy

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Lean Enterprise

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  1. Lean Enterprise

  2. Agenda • Lean definition…5 min • Lean & the automotive history…5 min • The Toyota way…10 min • Lean tools…10 min • Lean implementation…10 min • Q & A (please save them for the end)

  3. Let’s start with a definition Lean constitutes a philosophy / culture of how to satisfy customers’ increasing demands for greater value. An ideal value-creation process exists when the fewest number of steps are properly sequenced and made to continually flow. Waste Eliminated

  4. Quality, Cost,Schedule Value In The Eyes Of The Customer Better, Cheaper, Faster

  5. Waste • Lean is a manufacturing philosophy which shortens the time line between the customer order and the shipment by eliminating waste. Business as Usual Waste CUSTOMER ORDER PRODUCT SHIPMENT Time Lean Manufacturing CUSTOMER ORDER PRODUCT SHIPMENT Time (Shorter)

  6. “Lean Vs.Traditional” • Half the hours of engineering effort. • Two-thirds the product development time. • Half the hours of human effort in the factory. • Half the defects in the finished product. • Half the factory space for the same output. • A tenth or less of in-process inventories. Source: The Machine that Changed the World, Womack, Jones, and Roos, 1990.

  7. Craft Manufacturing • Late 1800’s. • Car built on blocks in the barn as workers walked around the car. • Built by craftsmen with pride. • Components hand-crafted, hand-fitted. • Excellent quality. • Very expensive. • Few produced.

  8. Mass Manufacturing • Assembly line - Henry Ford 1920s. • Low skilled labor, simplistic jobs. • Interchangeable parts. • Lower quality. • Affordably priced for the average family. • Billions produced – identical.

  9. Lean Manufacturing • Cells or flexible assembly lines. • Broader jobs, highly skilled workers. • Interchangeable parts, even more variety. • Excellent quality mandatory. • Costs being decreased through process improvements. • Global markets and competition.

  10. Why Learn from Toyota? • Reached 2000 goal of 10% market share and moving toward 2015 goal of 15%--largest in world. • Consistently profitable--$10 billion in 2002 (Profit is more than the “Big 3” COMBINED!). • Fastest product development process in auto business. • Consistently among top plants in productivity. • Consistently award winning quality levels. • Has triggered a global transformation of manufacturing to the Toyota Production System aka “Lean Manufacturing.” Source: Jeffrey Liker, Author: The Toyota Way

  11. Lessons Learned: Toyota’s Secret to Success Perceived TPS… 10% • Tactical elements - JIT, Built in Quality, Stability Actual 90% • Environment Created for People to Succeed • Problem Solving Culture (Fact Based) • Extensive, Continuing Education and Training • Discipline, Team Work and Persistence • Short Term Actions Linked to Long Term Plan

  12. “4 P” Model of the Toyota Way • Continual organizational learning through Kaizen • Go see for yourself to thoroughly understand the situation. Problem Solving Continuous Improvement & Learning • Grow leaders who live the philosophy • Respect, develop and challenge your people and teams • Respect, challenge, and help your suppliers People and Partners Respect, Challenge and Grow Them Respect +Teamwork Kaizen • Create process “flow” to surface problems • Stop when there is a quality problem • Use pull systems to avoid overproduction • Standardize tasks for continuous improvement • Use visual control so no problems are hidden Process Eliminate Waste Challenge Philosophy Long-term Thinking • Base management decisions on a long-term philosophy, even at the expense of short-term financial goals Source: Jeffrey Liker, Author: The Toyota Way

  13. Philosophy Long Term Thinking

  14. Traditional Approach

  15. Focus on Waste Elimination

  16. Process “MUDA” JAPANESE FOR WASTE. DEFINED AS ANY HUMAN ACTIVITY WHICH ABSORBS RESOURCES BUT CREATES NO VALUE. Eliminate Waste

  17. 7 Forms of Waste MOTION CORRECTION Repair or Rework Any wasted motion to pick up parts or stack parts. Also wasted walking WAITING Any non-work time waiting for tools, supplies, parts, etc.. OVERPRODUCTION Producing more than is needed before it is needed Types of Waste PROCESSING Doing more work than is necessary INVENTORY TRANSPORTATION Maintaining excess inventory of raw materials, parts in process, or finished goods. Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes.

  18. OVERPRODUCTION(The worst type of waste) Producing more than required to meet immediate customer demand. • Running a machine to produce product that is not needed for the next process (customer). • Making product and storing in a warehouse for long periods. • Processing more orders through one step than the next step can process.

  19. Waste from Over-production

  20. EXCESS INVENTORY Any inventory that exceeds what is needed to meet immediate customer requirements. • Raw materials in storage. • Materials and supplies in storage. • Materials at the process. • Finished goods stored prior to shipping.

  21. NON CONFORMING CORRECTION(Rework) Any repairs or additional work performed outside the operators normal work. • Wrong size / model. • Pieces cut wrong. • Missing or incorrect information.

  22. WAITING Any idle time not spent performing value added work. • Waiting for assistance. • Waiting because equipment is broken down. • Waiting for supplies or materials. • Machinery can wait for the operator, but the operator should never wait on the machinery.

  23. TRANSPORTATION The movement of material, whether it is manually or automatically. • Moving material to and from the warehouse. • Movement of materials on conveyors. • Movement of materials at the process. • Handling and carrying paperwork between operations.

  24. PROCESSING Doing more work than necessary to meet the customer needs or requirements. • More detailed information than necessary. • Copying drawings and spec sheets not needed. • Doing more finishing than necessary to meet the standards. • Sometimes it is “keep busy work”.

  25. MOTION Any physical movement of workers or automated equipment. • Reaching to pick up materials. • Turning or bending. • Excessive travel distance or long pattern on automated equipment.

  26. People and Partners Respect, Challenge, and Grow Them

  27. People are the greatest asset • The foundation of The Toyota Way is the development of people. • Focus on internal development before extending the process to suppliers. • Decision making and system development are pushed down to the lowest levels. • An empowered team approach is essential.

  28. New Paradigm: Non-Blaming Culture Management creates a culture where: • Problems are recognized as opportunities • It’s okay to make legitimate mistakes. • Problems are exposed because of increased trust. • Emphasis is placed on finding solutions instead of “who did it”.

  29. Problem Solving

  30. When Standards are not visible

  31. Visible Standards reduce variation

  32. Base management decisions on a long term philosophy, even at the expense of short-term financial goals. Create Continuous Process Flow to bring problems to the surface. Use “pull” systems to avoid overproduction. Level out the workload. Build a culture of stopping to fix problems to get quality right the first time. Standardized tasks are the foundation for continuous improvement and employee empowerment. 14 Principles of The Toyota Way

  33. 14 Principles of The Toyota Way • Use visual control so no problems are hidden. • Use only reliable, thoroughly tested technology that serves your people and processes. • Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. • Develop exceptional people and teams who follow your company’s philosophy. • Respect your extended network of partners and suppliers by challenging them and helping them improve.

  34. 14 Principles of The Toyota Way • Go and see for yourself to thoroughly understand the situation. • Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly. • Become a learning organization through relentless reflection and continuous improvement.

  35. 5S’s and Visual Factory Value stream mapping Total Productive Maintenance Standardized Work Process Pull Error Proofing TAKT time Kanban Basic Tools for eliminating waste • Do not focus efforts on implementing tools. • Focus on creating specific results and utilize tools accordingly.

  36. Kanban • A pull material replenishment system, based on the principle that material is pulled through the production process based on actual usage of material, put in what comes out. • Kanban uses visual signals, usually a card, to move material through the value chain.

  37. Cellular Manufacturing • Layout: U-shape or semi-circle. • Equipment movable and placed closely together yield better sq. footage per operator. • Quick feedback between operators. • Workers in manufacturing cells typically are cross trained to perform multiple tasks.

  38. Standardized Work • Captures best practices. • Posted at the work station / visual. • Reference document • work sequence • job layout • time elements • safety • Developed with operators. • Ensures discipline and consistency of the process.

  39. Error Proofing • Preventing accidental errors in the manufacturing process. • Error detection • Error prevention • A way to achieve zero defects. • Causes of errors… • Omission of steps • Not following sequence • Missing parts • Error in set-up

  40. TAKT Time Time (Available seconds per working day) = TAKT Time Volume (Daily production requirement) Sets pace of production to match pace of demand. Actual time required for a worker to complete one cycle of his process = Cycle Time

  41. Total Productive Maintenance • Structured approach to maintaining equipment and insuring stable manufacturing processes. • Practice of preventing the loss of productive machine time. • TPM involves everyone in identifying, monitoring, and correcting the root causes of each of these losses.

  42. Value stream mapping • The visual representation allows to see where costs can be reduced and improvements can be made. • A future state can be designed where wasted steps are left out, and continuous flow and pull production are introduced.

  43. Visual management • Systems that enable anyone to immediately assess the current status of an operation or process at a glance, regardless of their knowledge of the process. • Elements • Visual displays: relates information and data to employees in the area • charts • metrics • procedures • process documentation

  44. Why would you change? Why would you go through the effort of rolling out Lean?

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