INTRODUCTION TO LEAN PRODUCTION

1. LESSON 1 : INTRODUCTION TO LEAN
PRODUCTION SYSTEM
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2. 2
1. Javier Santos, Richard Wysk, Jose Manuel Torres, Improving
Production with Lean Thinking, J Wiley & Sons, Inc. 2006
2. Peter L.King, Lean for the Process Industry, Dealing with
Complexity, CRC Press 2009
3. Katsundo Hitomi, Manufacturing System Engineering, CRC
Press, 1996
4. Taiichi Ohno, Toyota Production System, Productivity Press,
1988
5. Jeffrey K. Liker, The Toyota Way, McGraw-Hill, 2004
References

3. Definition of Manufacturing
1. Technical Definition
Manufacturing is the application of physical and chemical
processes to alter the geometry, properties and appearance
of a material to make parts or products
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4. Definition of Manufacturing
2. Economic Definition
Is the transformation of material into items of greater
value by means of processing or assembly operations –
adding value to the material
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5. Source: Groover, Fundamentals of Modern Manufacturing
The PROCESSES AND METHODS employed to transform
• tangible inputs (raw materials, semi finished goods, or subassemblies) and
• intangible inputs (ideas, information ,knowledge) into goods or services.
Definition of PRODUCTION SYSTEM
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6. Business Flow in a Manufacturing Company
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7. A. Craft Manufacturing
• Late 1800’s
• Car built on blocks in the barn as workers walked
around the car.
• Fixed position assembly
• Built by craftsmen with pride
• Components hand-crafted, hand-fitted
• Excellent quality
• Very expensive
• Few produced
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8. B. Mass Manufacturing
• Assembly line - Henry Ford 1920s
• Low skilled labor, simplistic jobs,
no pride in work
• Interchangeable parts
• Lower quality
• Affordably priced for the average family
• Billions produced - identical
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10. Ford Model T Mass Production Assembly Line 1908
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11. Ford Mass Production Manufacturing Assembly Plant - 1959
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12. C. Lean Manufacturing
• Cells or flexible assembly lines
• Broader jobs, highly skilled
workers, proud of product
• Interchangeable parts,
even more variety
• Excellent quality mandatory
• Costs being decreased through process
improvements.
• Global markets and competition.
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13. Modern Assembly Line at Nissan
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14. Fiat Plant - Welding Line : 2009
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15. 15
The Nature of Lean Production
• What Lean Production is not
– JIT
– Kanban
• Characteristics
– Fundamental change
– Resources
– Continuous improvement
• Defined
– “A system which exists for the production of goods or
services, without wasting resources.”

16. Objective of Lean Production System
• Main objective of lean is to remove all
forms of WASTE from the value stream.
• Waste includes
» cycle time,
» labor,
» materials &
» energy
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17. Toyota Way
Operational Excellence on a strategic weapon.
- Toyota invented “Lean production” (also known
as TPS) transformed a global transformation in
every industry to Toyota’s manufacturing & supply
chain philosophy & method.
- Toyota is benchmarked by all peers and
competitors for high quality, high productivity,
manufacturing speed & feasibility.
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18. TOYOTA AUTOMOTIVE
HINO
Commercial
PERODUA
42%
Compact
Asean
DAIHATSU
51%
Compact
LEXUS
100%
Luxury
SCION (US)
100%
Youth
TOYOTA
All Range
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19. •TOYOTA PRODUCTION SYSTEM
• Lean Production System (LPS) is an assembly-line methodology
developed originally for Toyota and the manufacturing of
automobiles.
• It is also known as the Toyota Production System or Just-In-Time
production.
• Engineer Taiichi Ohno is credited with developing the principles
of lean production after World War II. His philosophy were:
– focused on eliminating waste and
– empowering workers,
– reduced inventory and
– improved productivity.
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20. TOYOTA
TOP 10 – RANK BY SALES VOLUME
Toyota –
- #3 in 2003
- #2 in 2004
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21. http:/
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22. TOYOTA WORLD MARKET SHARE
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23. USA MARKET SHARE in 2011
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24. -10
-8
-6
-4
-2
0
2
4
6
8
10
12
Net Margin %
Porsche
Toyota
Nissan
Renault
Honda
Hyundai
BMW
PSA
DC
VW
GM
Suzuki
Ford
Mitsubishi
Mazda
Fiat
© autopolis/Economist Group/Cambridge University Press 2004. All rights reserved.
Toyota
Porsche
Nissan
TOYOTA
CAR COMPANY RANK Profit Margin % Returns
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25. Toyota’s Globalization Process
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26. Building a TPS House
WHAT MAKES TOYOTA SUCESSFUL & LEAN?
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27. What makes a PRODUCTION system Lean?
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28. UNDERSTANDING WASTE
Waste Often Hides in Plain View
• The chief obstacle to removing waste is that waste
often hides in plain sight, or is built into activities.
• We cannot eliminate the waste of material, labor, or
other resources until we recognize it as waste.
• A job can consist of 75 percent waste (or even more).
• Classic example: brick laying in the late 19th century
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Pre-Gilbreth Bricklaying

29. Real Example in 1911
• Top: "The usual method of
providing the bricklayer with
material" (Gilbreth, Motion
Study, 1911).
• Bottom: "Non-stooping
scaffold designed so that
uprights are out of the
bricklayer's way whenever
reaching for brick and
cement at the same time."
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30. Post-Gilbreth Brick Laying
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The solution is obvious (in retrospect), but
first we have to know that we have a
problem!

31. Material Waste Hides in Plain Sight
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Cleaning
Tank 1
Cleaning
Tank 2
Dirty parts Clean parts
Clean
Water
Discard water
Clean
Water
The parts get clean, so no one questions this.
What is wrong with this picture?

32. Why Not Make the Water Work
Twice?
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Cleaning
Tank 1
Cleaning
Tank 2
Dirty parts Clean parts
Discard water
Clean
Water
The almost clean water from the second tank is good
enough for use in the first tank. Water usage can be
cut 50 percent.

33. Definition of “Lean”
– according to womack, jones & roos 1990
• Half the hours of human effort in the factory
• Half the defects in the finished product
• One-third the hours of engineering effort
• Half the factory space for the same output
• A tenth or less of in-process inventories
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Source: The Machine that Changed the World
Womack, Jones, Roos 1990

34. Lean Manufacturing
 is a manufacturing philosophy which shortens the time line between the
customer order and the product shipment by eliminating waste.
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Customer
Order
Waste Product
Shipment
Time
Customer
Order
Product
Shipment
Time (Shorter)
Business as Usual
Waste
Lean Manufacturing

35. COMPARISON OF LEAN TO TRADITIONAL MANUFACTURING SYSTEM
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36. Case Studies –
Boeing Manufacturing Business Unit - Issues
• Average job moved to 30 different stations
• Pieces travelled miles throughout the shop
• Most space was used for storage of work in
progress
• Large inventory

37. Changes and Results
• Product based cells
• Wheels on equipment for flexibility
• Storage spaces stocked to max/min
• Overall travel was reduced between 1
and 3 miles
• Reduced need for forklifts and trucks

38. Changes and Results
• Reductions of bulk purchasing
• Manufacturing occurs in ship sets
• Just-in-time scheduling
• 100,000 square feet of storage space
reduced
• Off-site storage no loner needed

39. Boeing - Overall results
• Reduced total cost of 30%
• Productivity improved by 39%
• Defects reduced from 12% to 3%
• Production flexibility increased 40-50%

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41. BENEFITS OF LEAN PRODUCTION TO
MANUFACTURING PLANT
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1. Improved workstation layouts.
2. Connected processes with reduced work in progress between
them.
3. Line-side inventory reduction.
4. Warehouse inventory reduction.
5. Improved operational availability on equipment.
6. Change over techniques increase throughput.
7. Make work stations visible, to show up problems, clearly
showing the status of work orders or batches of work.
8. Improved safety in the workplace.
9. Line side storage systems with self managing replenishment.
10. People will be able to manage these systems for you on the
floor with a very minimum of supervision

42. Benefits of Lean Manufacturing to the Organization
Lean manufacturing delivers an insurmountable
competitive advantage over competitors who don't use it
effectively.
(1) Lower production cost  higher profits and wages
– Cost avoidance flows directly to the bottom line.
(2) Supports ISO 14001 and "green" manufacturing
– Reduction of material waste and associated disposal costs
 higher profits
(3) Shorter cycle times: make-to-order vs. make-to-
stock
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43. Lean Manufacturing:
waste elimination as a
continuous process
The process change are ergonomic
improvements and continuous
reduction of packaging sizes and
lots.
1
2 3
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44. Current
Situation
- high non
value
added
activities
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1. Rack unnecessarily oversized taking up too much space on the line.
2. Example of wasted non-value-creating space.
3. Onerous operator task.
4. Unnecessary motions.
5. Operator idleness.

45. STEP 1
1. New logistics
2. Small containers
3. Compression of spaces
4. “Zoning” of cleared spaces: nothing happens here - no mudas.
5. Parts within immediate reach of the operators.
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STEP 2:
1. Integration of a new model and its parts on the existing line.
2. Compressed line side, elimination of a several mudas: Flexibility of the
production tool with a considerable increase in productivity.

47. The Lean Factory
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48. Summary
1. Business activities can contain enormous quantities
of built-in waste (muda, friction).
2. The greatest obstacle to the waste's removal is
usually failure to recognize it.
3. Lean manufacturing includes techniques for
recognition and removal of the waste.
4. This delivers an overwhelming competitive
advantage.
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