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Chapter 4 Lean Practices

Chapter 4 Lean Practices. Key Lean Principles. Ensure that the correct products reach the correct place at the appointed time in the requested quantity while minimizing waste and maintaining flexibility to adapt to change. Perfect first-time Waste minimization Continuous improvement

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Chapter 4 Lean Practices

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  1. Chapter 4Lean Practices

  2. Key Lean Principles Ensure that the correct products reach the correct place at the appointed time in the requested quantity while minimizing waste and maintaining flexibility to adapt to change. • Perfect first-time • Waste minimization • Continuous improvement • Pull processing • Flexibility • Building

  3. Five Laws of Lean Sigma Law 0 Law of the market – customer CTQ defines quality and is the highest priority for improvement (ROIC, NPV) Law 1 Law of flexibility – the velocity of any process is proportional to the flexibility of the process Law 2 Law of focus – 20% of the activities in a process make up 80% of the delay (related to the Pareto principle) Law 3 Law of velocity – the velocity of any process is inversely proportional to the mount of WIP (also known as "Little's law“) Law 4 The 4th law – the complexity of the service or product adds more non-value-added costs and WIP than either poor quality or slow speed

  4. Lean Building Blocks http://qualitysystemsservices.net/lean_enterprise.html

  5. Theory of Constraints (TOC) • An overall management philosophy that aims for excellence and continued system improvement • All processes (P) are composed of many activities or process steps. • Each of these individual processes has its "own capacity" for transforming individual inputs into output • The total process can produce only as fast as the slowest process step (bottleneck or constraint) • To increase the output of the process, the slowest individual process step must be identified and fixed

  6. TOC Principles • Increase throughput (total output of the process) • Decrease expenses • Decrease inventories

  7. LEAN CONCEPT Rapid process flow (RPF) • Process waste is identified and removed • Cellular manufacturing floor-plans • Continuous flow • “One-piece flow”/ “single-piece flow” -- moving one item (or a small and consistent batch) through a series of processing steps as continuously as possible, with each process step making only what is requested by the next step

  8. Value Added vs. Non-Value Added Activities • Value is determined when a customer buy the product at the right price • The value of any product or service is defined by the customer and not by the supply chain or manufacturer • Value added activities transforms the product, service, or transaction in a way meaningful to the customer

  9. Lean Thinking Steps • Value • Thought • Value stream • Flow • Pull • Perfection • Replication

  10. Lean Tools – Visual Controls • Signs, information display, layouts, material storage and handling tools, color-coding, and mistake-proofing devices • Visual control system makes product flow, operations standards, schedules, and problem, instantly identifiable • Recommended standards for warning signs by American National Standards Institute (ANSI) and the Occupational Safety and Health Administration (OSHA)

  11. Lean Tools -- Pull System with Kanban • Directed toward removing excess capacity (inventory) or increasing the demand rate. • Work enters a process at the same rate at which it exits • Since the “exit rate” is controlled by customer demand, the process is paced to meet customers’ needs • Kanban (visual card) is used to signal a demand • From production perspective, a pull system makes products at the same rate as they are being sold • From supply perspective, a pull system ensures that resources enter the production process at the same rate they are being used

  12. Lean Tools -- Pull System with Kanban http://www.manufactus.com/en/

  13. Lean Tools – 5S • Systematic method to organize, order, clean, and standardize a workplace, and to keep it that way • To eliminate NVA activities, focus on root causes • Uses total participation to check processes • Provides structure to sustain • Contains visual display with important information

  14. Lean Tools – 5S • Seiri (Sort) -- sorting the contents of the workplace and removing unnecessary items • Seiton (Straighten) -- placing or arranging the necessary items in their place and providing easy access and clear identification • Seiso (Shine) -- cleaning every thing, keeping it clean and using the cleaning process to inspect the workplace and equipment for defects • Seiketsu (Standardize) -- creating visual controls and guidelines to maintain the seiso or shine • Shitsuke (Sustain) -- instituting training and discipline to ensure that everyone follows 5S standards

  15. Lean Tools – 5S www.tpfeurope.com/5S_image.gif

  16. Lean Tools – Idea of perfection (Kaizen) • Japanese term for continuous improvement • Involves everyone working together to make improvements without large capital investments

  17. Lean Tools – Replication/Translate • Replication extends improved system processes, tools, and methods across the organization • Translate moves the process to other business sites and configurate / tailor for business needs accordingly

  18. Lean Tools – Mistake-proofing(Poka-yoke system) • To avoid inadvertent errors • Poka-yoke device is any mechanism that either prevents a mistake from being made or makes the mistake obvious at a glance • Be inexpensive • Be easy to use • Be able to effectively prevent or significantly reduce the possibility of mistakes being made

  19. Lean Tools – Mistake-proofing(Poka-yoke system) http://www.thetoyotasystem.com/wp-content/uploads/2009/05/pokayoke.png http://rc1947.sulekha.com/mstore/rc1947/albums/default/poka_y2.jpg http://www.sixthsigma.com/labels/pokayoke.htm agilesoftwaredevelopment.com/files/pokayoke.png

  20. Lean Tools – SMED System • SMED: Single Minute Exchange of Dies • Reduces turnover time in production lines and enables small-lot production

  21. Lean Tools – 7W +1 Approach (Seven plus one deadly waste) Waste (or muda) D – Waste from product defects O – Waste from overproduction T – Transportation waste W – Waste in waiting time I – Inventory waste M – Waste of motion P – Processing waste

  22. Lean Tools – 7W +1 Approach (Seven plus one deadly waste) Transport -- moving people, products, and information Inventory -- storing parts, pieces, and documentation ahead of requirements Motion – bending, turning, reaching, lifting Waiting -- for parts, information, instruction, equipment Overproduction -- making more than is immediately required Overprocessing -- tighter tolerance, or higher-grade materials than are necessary Defects – rework, scrap, incorrect documentation Skills – underutilizing capabilities, delegating tasks without adequate training

  23. Lean Tools – 7W +1 Approach (Seven plus one deadly waste) www.trilogiq.com/en/images/muda.png

  24. Lean Tools – 6M Approach Major categories in Cause-Effect (CE) Analysis • Information / Instruction -- public or confidential • Materials – manufacturing, services, or transactional process and uses • Machines / tools – operations, safety, performance • Manpower / Workers -- follow defined methods • Methods -- defined by workers and managers • Environment / mother nature

  25. Lean Tools – 6M Approach www.bristolarts.com/.../01/Fishbone_Diagram.gif

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