Made in the USA

1. Made in the USA • The “Lean enterprise” has its roots in the United States. • American workers may be more likely to buy into "Made in the USA" concepts than kaizen, poka-yoke, jidoka, etc.

2. "Who do you think taught Japan how to make cars?" • Taiichi Ohno, the father of the Toyota production system, said openly that he got the idea from Henry Ford's book and the American supermarket. • Ford's Today and Tomorrow (1926) describes the benefits of just-in-time (JIT) manufacturing explicitly. • In a supermarket, replenishment of shelf stock is triggered by depletion; it is a "pull" system. • Taylor influenced Shigeo Shingo

3. History of Manufacturing Management

4. Muda (Waste) • General Carl von Clausewitz's On War (1831) defined friction as "…the force that makes the apparently easy so difficult. … countless minor incidents— the kind you can never really foresee— combine to lower the general level of performance, so that one always falls short of the intended goal." • Henry Ford (Moving Forward, 1930): "It is the little things that are hard to see— the awkward little methods of doing things that have grown up and which no one notices. And since manufacturing is solely a matter of detail, these little things develop, when added together, into very big things."

5. Meat Packer's Principle: "Use Everything but the Squeal"

6. Benjamin Franklin's Lean Enterprise Concepts "Nothing has happened in our history to render out of date the business philosophy of Benjamin Franklin. Poor Richard's Almanac is still the best business compendium." —Henry Ford, 1922. Ford Ideals “A place for everything, everything in its place”. Benjamin Franklin

7. The Value of Time • "If time be of all things the most precious, wasting time must be”, as Poor Richard says, ”Lost time is never found again; and what we call time enough always proves little enough”  • Readers of Goldratt’s The Goal will recognize this concept as, "Time lost at the constraint is lost forever."

8. Lean Manufacturing 1890 1910 1949 1990 Lean Enterprise Toyota Production Mass Production Craft Production Frederick W. Taylor Used Scientific Management to look at individual workers and work methods. Henry Ford & Charles Sorensen Taichii Ohno& Shigeo Shingo Developed the first comprehensive Mfg Strategy Result: Just In Time and Flow Manufacturing Recognized the central role of inventory & assessed shortcomings of FORD system Result: Toyota Prod System (TPS) James Womack &Daniel Jones Result: Time study and Standardized work First coined the term Lean Manufacturing in their book Result: Concluded TPS as the most successful production system Lean Manufacturing – Operational Fundamentals • Pull Based Production • Pacemaker & Level Scheduling • Takt Time & Demand-Production Synchronization • EPEI & Mix Management • Kanban Pull Signaling • Supermarket Definition - Lean manufacturing is a management philosophy focusing on reduction of the key wastes to improve stakeholder value“8” Wastes - Inventory, Overproduction, Waiting, Excess Motion, Transportation, Defects, Over-processing, Unused Employee Potential

9. Franklin on Inventory Purchasing departments are sometimes measured on their ability to get "good deals" from suppliers. Franklin warned of what is likely to happen: "You call them goods; but, if you do not take care, they will prove evils to some of you. You expect they will be sold cheap, and, perhaps, they may [be bought] for less than they cost; but, if you have no occasion for them, they must be dear to you." Principle adopted by Henry Ford

10. Franklin on Friction For want of a nail a shoe was lost, for want of a shoe a horse was lost, for want of a horse a rider was lost, for want of a rider an army was lost, for want of an army a battle was lost, for want of a battle the war was lost for want of the war the kingdom was lost, and all for the want of a little horseshoe nail. • A defective part that costs a few cents can make a final assembly nonconforming or, even worse, result in a field failure. The idea is the same. • Ford: snap gages, go/no-go gages rejected such parts automatically (poka-yoke).

11. Henry Ford and the Lean Enterprise Ford developed motion efficiency and scientific management into a comprehensive lean enterprise system that equals or surpasses anything that exists today. Henry Ford used his lean enterprise system to gain buy-in from upper management and front-line workers

12. The Value of Time, continued… • Henry Ford, 1922, My Life and Work: "If a device would save in time just 10 per cent. or increase results 10 per cent., then its absence is always a 10 per cent tax. …Save ten steps a day for each of twelve thousand employees and you will have saved fifty miles of wasted motion and misspent energy."

13. Profitability • The Ford Motor Company (and the industries that grew to support it) was directly responsible for making the United States the wealthiest and most powerful nation on earth. • The U.S. surpassed the British Empire during the 1910s. • During the Model T's 19 years of production, it created more prosperity than the estimated wealth of 35 of the country's 48 states (Ford, 1930, Moving Forward). • This figure did not include railway workers, rubber workers, oil workers, and others for whom the Model T created jobs.

14. When the Going Got Tough… …the Ford lean enterprise system kept going. • The Ford Motor Company sold 1.25 million cars during the 1920-1921 depression that followed the First World War and the 1918 influenza epidemic: five times as many cars as the company sold during 1913-1914.

15. Ford and the Front-Line Worker • Henry Ford was not a professor, "guru," or consultant. • Ford was a self-taught mechanic and then an engineer at Detroit Edison before he began to make automobiles. • He spent considerable time on the shop floor with front-line workers. • Ford wrote in a very practical and hands-on manner. • His principles and workplace examples are easily understandable by anyone in a modern workforce— perhaps more so than many modern lean manufacturing books.

16. Ford and Muda (Waste) • Henry Ford's ability to recognize waste on sight, and to teach this skill to his organization, may have been his chief success secret. • Culture at Ford's River Rouge plant, regarding waste: "It worried the men." • If it doesn't add value, it's waste. • "We will not put into our establishment anything that is useless. We will not put up elaborate buildings as monuments to our success. The interest on the investment and the cost of their upkeep only serve to add uselessly to the cost of what is produced— so these monuments of success are apt to end as tombs" (Ford, 1922, My Life and Work)

17. “the quest of the one best way to do work” "The United States government has already spent millions and used many of the best of minds on the subject of motion study as applied to war; the motions of the sword, gun, and bayonet drill are wonderfully perfect from the standpoint of the requirements of their use. This same study should be applied to the arts of peace." Frank and Lillian Gilbreth and the Manufacture and Marketing of Motion Study, 1908-1924

18. Bricklaying, through late Nineteenth Century The brick weighs about five pounds (2.3 kg). How much is the worker actually raising and lowering every time he bends over for another brick?

19. Bricklaying, after Gilbreth’s • Lesson: waste can, by long habit ("living with it," "working around it") become built into a job.

20. Top: "The usual method of providing the bricklayer with material" (Gilbreth, Motion Study, 1911. The photo is dated 9/5/1906, believed to be in the public domain). • Bottom: "Non‑stooping scaffold designed so that uprights are out of the bricklayer's way whenever reaching for brick and mortar at the same time"

21. Standardization and Best Practice Deployment • Standardization and best practice deployment are key features of Lean Six Sigma. Both are also basic principles of scientific management. • Standardization holds the gains from continuous improvement, thus avoiding the two-steps-forward-and-one-back problem. • FrederickTaylor speculated that trade workers often improved their jobs, but the knowledge was lost when they died or retired. • Best practice deployment applies improvements to all relevant operations in the business.

22. Kaizen, Standardization, and Best Practice Deployment "To standardize a method is to choose out of many methods the best one, and use it. …Today's best, which superseded yesterday's, will be superseded by tomorrow's best." "An operation in our plant at Barcelona has to be carried through exactly as in Detroit— the benefit of our experience cannot be thrown away. A man on the assembly line at Detroit ought to be able to step into the assembly line at Oklahoma City or São Paulo, Brazil." —Henry Ford, 1926, Today and Tomorrow

23. Just-In-Time (JIT) Ford described the following principles explicitly: • Materials arrive exactly, and only, when the production line needs them. • Materials go, not from dock to stock, but from dock to factory floor. • JIT requires reliable transportation and a supporting logistics system. • Bad transportation (e.g. lack of a good freight management system) requires the plant to keep more inventory. • Ford created a very impressive freight management system (FMS) to address this issue. • Inventory reduction frees capital. • Cycle time reduction frees capital.

24. Ford on Design for Manufacture (DFM) "Start with an article that suits and then study to find some way of eliminating the entirely useless parts. This applies to everything— a shoe, a dress, a house, a piece of machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut down the cost of making." "But also it is to be remembered that all the parts are designed so that they can be most easily made."

25. 5S at Ford • Ford, Today and Tomorrow (1926) on a new mine: "The first job was to clean up— that is always the first thing to do in order to find out what you are about. … We cannot afford to have dirt around— it is too expensive. … everything is painted and kept painted a light color, so the least bit of dirt will show. We do not paint to cover up dirt— we paint white or light gray in order that cleanliness may be the order of things and not the exception." • Norwood's Ford: Men and Methods (1931) shows how the River Rouge plant anticipated Disney theme parks (which provide convenient waste containers everywhere) by providing waste containers within six steps of any position on the shop floor.

26. Stopping the Line • Workers at the River Rouge plant were authorized to stop the line (a practice later adopted by the Japanese) if there was a problem. • This lit an alarm light in a control booth. If the light stayed on for more than two minutes, the attention of a "trouble mechanic" was required. • Even if the workers on the line could fix the stoppage in less time, the cause was still recorded for future action. • Closed-loop corrective action • Tie-in with computerized maintenance management system concept

27. Ford and Supply Chain Management Supply chain management recognizes the dependence of a lean manufacturer on its own suppliers and distribution systems.

28. Ford on Supplier Development • "The man finally consented to try to manufacture at exactly one half his former price. Then, for the first time in his life, he began to learn how to do business. …he found he could make cost reductions here, there, and everywhere, and the upshot of it was that he made more money out of the low price than he had ever made out of the high price, and his workmen have received a higher wage" (Henry Ford, 1926, Today and Tomorrow). • The supplier had wanted $152 per body. Ford's Charles Sorensen built a model for $50 in labor and materials. The supplier then agreed to accept $72 per body.

29. Ford's Freight Management System (FMS) • Norwood's Ford: Men and Methods (1931, 20-24) gives an outstanding summary of what a good FMS does. • The Ford logistics system was a "continent-spanning conveyor." • Deliveries were coordinated, scheduled precisely, and apparently just-in-time. • Supply was never to exceed or fall short of requirements. • "Using that multitude of additional links offered by rail, highway, water, and air, it has butt-welded them with their own time-tables and picketed them with telegraphic checkings as watchful as the straw bosses who supervise progression along the conveyor lines of the shop." • Per Ford, the location of any rail car could be determined to within an hour.

30. Ford turned annoyances into moneymakers • "He perfected new processes— the very smoke which had once poured from his chimneys was now made into automobile parts" (Sinclair). • "It is not possible long to continue to get something for nothing, but it is possible to get something from what was once considered nothing" (Ford, 1926).

31. Waste to Profit • Henry Ford: • A wood distillation plant turned scrap wood into methyl alcohol, charcoal, tar, and fuel gas. • $12000/day could pay 2000 workers @$6/day (Ford's relatively high minimum wage) in 1926. • Charcoal briquettes from sawmill chips (Kingsford charcoal) • Blast furnace slag  cement and paving material • A paper plant converted waste paper into binder board and cardboard. • Fumes from a coating operation were recovered by adsorption in charcoal and reused.

32. Make Parts, Not Machining Chips • "The machine shop produces about 14,000 [piston] rings per day say 1240 pounds of finished rings from 13,000 pounds of ring stock, 11,760 pounds of stock, worth $294 wasted for the pleasure of cutting it into chips and using snap-ring piston packing" (Arnold and Faroute, 1915, Ford Methods and the Ford Shops). • Ford was well aware of this problem, and he changed processes and designs to eliminate it. • Less machining  less cutting fluid to purchase and dispose of.

33. The Solution • "Our objective is always to minimize the subsequent machining" (Ford, 1926, 69). • Dieter (1983) points out the virtues of "chipless machining." The idea is to make the part as close to its final shape as possible, to minimize subsequent machining. • Ford pointed out that cast parts require considerable (on the order of 30%) machining. • Forge or cast small parts and then assemble them into the desired large one. • Tie-in with Design for Manufacture

34. Keep Your Eye on the Doughnut's Hole • Doughnut = the product • Hole = whatever is thrown away • Example: metal sheet with six stamped holes (product) Most people saw scrap for remelting and reuse. Ford's workers saw radiator caps. Pressing two disks made a very strong radiator cap. Workers ask, "What was in those holes?"

35. The Doughnut's Hole, continued • This concept cannot be overemphasized. • Culture at Ford's River Rouge plant, regarding waste: "It worried the men." • Workers should pay close attention to "holes" and ask questions. • "Where did the metal go that was in those cutout sections of the part?" • "What becomes of cutting fluids, solvents, and lubricants?" • "What goes up the smokestack?" • Metal chips or sawdust should always invite attention!

36. Reuse Packaging • "Why should a crate or a packing box once used be considered only as so much waste to be smashed and burned?" (Ford, 1926, 125) • Ford allegedly asked a supplier to package shipments in boxes whose boards had to be specific sizes. The latter became Model T floorboards. • Ford's River Rouge plant often knocked down containers and sent them back "for another load." • Cardboard boxes can be folded flat and sent back for the same purpose.

37. Ford and Health Care The same kind of management which permits a factory to give the fullest service will permit a hospital to give the fullest service, and at a price so low as to be within the reach of everyone. (1) It is simply a matter of transferring those precision methods, so well established in the Ford shops, into hospital work. (2)

38. Solving the Health Care Crisis • Quality and productivity techniques have the potential to reduce health care costs by 30 to 50 percent while improving its quality. • Blanton Godfrey, former CEO of the Juran Institute: "Health care providers' cost of poor quality is estimated to be as high as 30-50 percent of the total paid for health care. For some companies the cost of employee health insurance is now higher than profits."

39. Made in the USA • The “Lean enterprise” has its roots in the United States. • …benefits of “Made in the USA: • American workers may be more likely to buy into "Made in the USA" concepts than kaizen, poka-yoke, jidoka, etc.

40. Work cited: Levinson Productivity Systems, P.C. www.ct-yankee.com http://www.ct-yankee.com/lean/usa.ppt

41. Motion Efficiency and Setup Time Reduction • The ability to shoot more quickly at someone who was shooting back was a powerful incentive for armies to develop these techniques: • The musket cartridge, with its premeasured powder charge, externalized the setup operation (a key concept of SMED) of measuring out each charge of gunpowder. This was being done 400 or more years ago. • Loading drills prescribed the "one best way," or standard, for loading muskets. Soldiers were (per von Steuben's drill manual of 1779) to count a second between each motion: a forerunner of takt time?

42. Animation of fabric folding operation This shows the value of videotaping real operations (e.g. for kaizen blitz, SMED). Henry Ford principle: "Pedestrianism is not a highly-paid line of work."

43. Fabric Folding Operation This shows the value of videotaping real operations (e.g. for kaizen blitz, SMED). 4 1 5 2 6 3

44. Fabric folding, contd. 7 10 11 8 9

45. Takt Time • The concept of rhythmic timing, or getting everyone to work at the same pace, is very old. • Drums  everyone marches at the same speed. (Synchronous flow manufacturing's drum-buffer rope) • Sailor's songs on wooden ships provided rhythm for group tasks. • Music coordinates some very complex performances: • Ballet dancers perform different routines that must, however, keep pace with one another. • Marching bands can make very complex formations during, for example, football halftime performances.