1. Agenda
• Who am I?
• Batch Production vs. Lean Thinking
• Principles of Lean Thinking
• Benefits of Lean
• Lean Manufacturing Techniques

2. Dumitru Lucian Arsene
• Manager with 12 years experience in Production management,
Strategic Planning and Lean Manufacturing implementation.
• Successfully completed over 20 continuous improvements projects to
increase productivity, reduce lead times, improve on-time delivery,
reduce inventory, increase inventory turns, improve stock accuracy,
eliminate wastes and fluctuation, exceed customer expectations.
Professional Background
Pullmaster Winch Plant Supervisor 09/07 – 05/09
Teleflex Canada Production Supervisor 01/02 – 09/07
Promoted from Operator
Leoni Wiring Systems Plant Manager 01/00 – 11/01
Solectron Production Manager 06/98 – 01/00
Promoted from Production Supervisor
Omnitex Production Supervisor 08/94 – 06/98
Mechanical engineer

3. Lean Achievements
• Increased on-time delivery from 40% to 90% at Pullmaster;
• Reduced manufacturing lead-time from 4-6 weeks to 3-5 days,
converting functional departments in work cells, at Pullmaster;
• Increased inventory turnover from 5.5 to 10.2, reducing raw
inventory from $3 million to 1.6 million at Pullmaster;
• Improved stock accuracy from 60% to 90% at Teleflex and Leoni
using Kanban and perpetual inventory stock;
• Implemented 5S in Work cells: Pullmaster, Teleflex Canada, Leoni;
• Reduced manpower required to operate work cells by 30% at
Pullmaster and Teleflex Canada, by 15-20%: Leoni and Solectron;
• Reduced WIP by 80% at Pullmaster, 50% to 70% at Teleflex by
implementing small lots and one piece flow;
• Improved efficiency by 25% at Leoni and Pullmaster using SMED
and Group Technology and 20-30% at Teleflex using line
balancing and Standardized work;
• Reduced quality defects from 50,000 ppm to 300-4,000 ppm at
Pullmaster, Teleflex, Leoni and Solectron using autonomation.

4. Lean Thinking and
Manufacturing Process
Improvement
Understanding the Problems,
Fixing the Processes, and Using
Your People to Make it stick

5. Batch Manufacture
• Machine Utilisation Improved
– Increasing the batch quantity produces the most
effective use of the machine between changeovers
• Improved Quality
– Small well defined tasks allow lower skilled operators to
produce quality parts
Best and most efficient use of people and
machines;

6. Basic Characteristics of Batch Production
• Production lot sizes as big as possible
• Layout according to Machine type
• Long changeover times
• Holding safety inventory for production
problems
• Detailed work division
• Single-skilled workers
• Control based quality
• Management based on central planning
• Production planning based on sales
forecasts
• Point efficiencies
• Priority of capacity utilization

7. Mass Production
Process 1 A B
B B
B B
B B
Process 2 A+B
WITH SMALLER LOTS
Process 1 A B A B A B A B
Process 2 A+B A+B A+B A+B

8. Problems With Batch Production
• Long delivery times
• Weakness in responding to customer demands
• Increase in inventories
• Decrease in quality
• Increase in non value adding activities
• Work becoming more complex everyday
• Increasing hierarchy and bureaucracy
• Additional costs
• Difficulty in adapting to variations
• Long term planning necessity
• More capital reqirement

9. Lean Thinking
• Focus change
– Lean Thinking is an approach that aims
to get rid of all the wastes (fats) that
bring a burden to the system.
– From machine and people utilisation to performing
Value Adding operations,
– Value adding: any operation that changes the
component, as that is what the customer pays for.
The components spend more of their time
having value added

10. One Piece Flow
Batch and Push Manufacturing
All processes are 1 minute, 3 consecutive processes and lot size ( batch ) of 10
B B B BB B BB B C C
C C
Process A: 10 minutes Process B: 10 minutes Process C: 10 minutes
Lead Time : for the whole lot 30 ++ minutes
Continous Flow
“produce one, B C
Lead Time: 12 minutes
deliver one”
3 min. 12 min.

11. Which is best?
Run factories, not machines
• The aim of factories is not to ensure all
machines and people are constantly working
• The aim of factories is to produce
components in the most efficient manner,
and this achieved by spending the least time
performing non-value adding activities.

12. The GOAL
• As competition increases getting Lean is compulsory
• Producing only the products demanded by the
customer
• At the exact time the customer demands
• By consuming less resources
• And focusing on the activities that create value for the
customer

13. Basic Principle of Lean Thinking
Value is :
Product and/or service with definite specifications,
for which the customer is ready to pay for, and that
meets the customer’s requirements in a given period
of time, with a definite price.
Value is created by the producer and can only be
defined by the customer.

14. Value and WasteValue adding
work
Waste
( Muda )
• 3 Types of Activities Unavoidable
waste
in a Value Stream: ( Incidental
work )
• Value Adding
– Transformation of raw material
to product according to the customers’ demands
DECREASE
• Necessary Non-Value Adding
– Die change, adjustment, get/drop tool
• Non-Value Adding ELIMINATE
– waiting, counting, sorting, defect, rework

15. Wastes
• Overproduction
• Defects in product
• Inventories
• Unnecessary motion of people
• Excessive transportation of material
• Waiting people, machines and products
• Inappropriate processing
• Inappropriate use of people

16. WASTES
1. WASTE OF 2. WASTE OF A DEFECT
OVERPRODUCTION
• This type of waste occurs when a
This waste is caused by producing more product does not conform to
product than the customer wants to proper specifications. This can
buy. result in rework or scrap.
Primary Cause Primary Cause
• Inadequate error-proofing and
• Batch production
quality checks
• Building to a forecast (scheduled • Poor instructions and training
production) • Poor communication between
customer and manufacturer
• Traditional productivity • Lack of standard work
measurements • Inadequate supplier quality
• Need for adjustments
• Long set-up times

17. WASTES
3. WASTE OF INVENTORY 4. WASTE OF MOTION
• This is waste caused by non-value
• This type of waste leads to waste added movement of people and
of materials, parts, and machines.
assembled goods.
Primary Causes
Primary Causes
• Batch production method • Inefficient flow design
• Long set-up times
• Lack of continuous flow of
• Inefficient procedures
product and people
• Push production system
• Lack of standardized work practices
• Unnecessary product flow
• Bottlenecks

18. WASTES
5. WASTE OF 6. WASTE OF WAITING
TRANSPORTATION
• This type of waste results from
• This type of waste results from the unnecessary delay of
the unnecessary movement of processing material or product.
material or product.
Primary Causes
Primary Causes
• Lack of continuous flow
• Inefficient facility layout
• Non-value added operations
• Lack of continuous flow
• Long set-up times
• Non-value added operations
• Production runs too long
• Batch mentality
• Poor scheduling

19. WASTES
7. WASTE OF 8. WASTE OF A PERSON
OVERPROCESSING
• This waste is caused whenever a
• This is waste caused by person engages in any of the previous
unnecessary processes and wastes.
operations.
• Primary Causes
Primary Cause
• Use expensive high precision
equipment where simpler tools
• Lack of effective relationships or
would be sufficient.
communication between employees,
• Lack of attention to changes in
what is needed supervisors and managers
• Not properly identifying customer • Lack of employee education,
needs awareness and involvement
• Variations due to lack of standard
work and due to variations in
types of products produced

20. Examples of Waste
• Watching a machine run
• Waiting for parts
• Counting parts
• Producing parts that aren’t needed
• Moving parts over long distances
• Storing inventory
• Looking for tools or parts
• Machine breakdown
• Rework and scrap
• Products that don’t meet the needs of customers

21. The Causes of Waste
• Insufficient working methods
• Long changeovers
• Insufficient processes
• Lack of training
• Insufficient maintenance
• Long distances
• Lack of leadership

22. Value Stream
Represents the 3 critical management tasks a
specific product ( goods and / or services )
should pass through :
• Problem Solving : Starting with concept,
continuing with detailed design and engineering
and ending with the launch of production
• Information Management : Starting with order,
continuing with detailed scheduling and ending
with delivery to the customer
• Physical Transformation : Starting with raw
material, continuing with production and ending
with the realization of the final product.

23. Model
R&D Planning Production Distribution Sales
R&D Planning Production Distribution Sales
Lead Time

24. In Plant Value Stream
PLANLAMA
PLANNING
Sipariş
ORDER
Sipariş
ORDER
TEDARİKÇİ emri emri MÜŞTERİ
MRP
SUPPLIER CUSTOMER
Production programme
PROSES
PROCESS PROSES
PROCESS PROSES
PROCESS
1 1 1
minutes
weeks

25. The GOAL
design production delivery
Lead Time
Value Adding Activity Waste (Muda)
To Decrease Lead time
To Increase Value Added Time %

26. The GOAL
When we decrease the lead time by eliminating
wastes:
• Financial gains by freeing up resources
• Producing according to real demand instead
of forecasts
• Providing customer satisfaction
• Providing traceability of quality
• Reducing unnecessary part inventories
• Reducing the risk of being outdated
• Reducing fluctuation due to promotions

27. Manufacturing Lead time
A typical manufacturing company
Time
99 % 1%
Improvement results with traditional methods
Time
99.5 % 0.5 %
Lean Manufacturing Approach
Value Added
Waste (Muda)
Time
90 % 10 %

28. Continous Flow
Produce one - deliver one without waiting
• By performing the real value creating steps
consecutively, transform the raw material into a
product and deliver it to the end user
• Perfect every step (KAIZEN)
– capable – right every time (6 SIGMA)
– available – always available (TPM)
– appropriate – flexible and at the desired scale ( LEAN )

29. One Piece Flow
Batch and Push Manufacturing
All processes are 1 minute, 3 consecutive processes and lot size ( batch ) of 10
B B B BB B BB B C C
C C
Process A: 10 minutes Process B: 10 minutes Process C: 10 minutes
Lead Time : for the whole lot 30 ++ minutes
Continous Flow
“produce one, B C
Lead Time: 12 minutes
deliver one”
3 min. 12 min.

30. Continous Flow
• Ford, 1913, model T
– Continous flow at the final assembly
– Sequential layout of machines
– 90% resource savings
– Same model for 19 years
• Today;
– Demand for small lots
– Continous flow for all products
– Adaptation to fluctuations in customer demand
– High product variability demanded by the
customer

31. Example : Batch Production
Semi
Material Cut to finished
Lathe Welding product
Warehouse length
assembly
Finished Parts
Goods Semi Finished Product Warehouse Warehouse
Warehouse
Packaging Painted Parts Storage Touch up Final
Assembly
Painting

32. Example : Flow Production
Incom
Space gained
Product A Cell
ing for new
Parts products
Ware P
house A
Product B Cell
I
N Gains :
T
Finish I 50% decrease in workforce,
Product C Cell
ed N
Goods
45% decrease in space
G
Wareh 94% decrease in lead time
ouse
Product D Cell

33. Pull
All steps demand from the previous
• Producing what the next process (customer)
demands, at the desired quantity ( not more / not
less ) and at the desired time ( not before or
later ).
• Following all steps backwards starting from the
end customer’s demand
• A simple way to put production under control

34. Pull System
Value should flow, at the time,
for the products,
and at the speed,
demanded by the customer.
I demand I need one I need one
I need one more more
one now more
Here
you Here
Here Here are you
you you are
are are
RAW MATERIAL
CUSTOMER

35. Benefits of Pull Systems
• Resources are only allocated to products that are
demanded
• No inventories are formed on the value chain
• Financial turnover ( cash flow ) speeds up
• Regulates the value stream according to the
customer
• Problems like ; Obsolete finished goods
inventory at hand; rework or scrapping of
products due to design changes; discount
campaigns for undemanded products, do not
arise.

36. Lean Flow
... What if a machine breaks down?
... What if there are defective parts among the products?
... What if the deliveries are late?
Dealer
Welding Assembly
Main Distributor
Painting
Stamping
Tier 1 Supplier Tier 2 Supplier
ALL STOP !!

37. Perfection
Perfection ( Ideal State )
Future State
Current State Original State

38. Principles of Lean Thinking - Summary
1. VALUE : Specify value for the product
2. VALUE STREAM : Identify the value
stream for every product family
3. FLOW : Make the identified value flow
4. PULL : Make the customer pull the value
5. PERFECTION : Manage towards
perfection.
To avoid focusing solely on the technics ,
always repeat the principles !

39. Benefits
Parameters Gains
Product Design Lead Time 75%
Manufacturing Lead time 90%
Productivity 100%
Defects 80%
Inventories 90%
Area used 50%
Work Accidents 50%
New Investments Too little

40. Gains
SHORT TERM MIDDLE TERM LONG TERM
Reduction in scrap Increase in present product New products
and rework sales
Utilization of freed up
Reduction in overtime Bringing outsourced space
production in the plant
Increase in delivery Adding extra value to the Reduction in
performance products obsolete inventories
New sales via better
Reduction in service
inventories
Improvement in Reduction in support
cash flow function department
Reduction in costs
manpower costs

41. Lean Company Model
LEAN LEADERSHIP
Lean LEAN
MANUFACTURING Lean Supply
organization SYSTEM
and JIT AUTONOMATION Chain
Development
processes
Respect for People and Mutual Trust

42. LEAN MANUFACTURING TECHNIQUES
VALUE STREAM MAPPING
ONE PIECE FLOW-SMALL LOTS
REDUCING INVENTORY
KANBAN STANDARDIZED
WORK
SMED
KAIZEN
VISUAL CONTROL
5S
STANDARD WIP
WORK CELL TAKT TIME
JIT/PULL TPM
“The key to lean is in the thinking and not just in the tools”
James WOMACK

43. 5S
The 5-S Workplace
SORT •Sort needed & unneeded items.
Red tag unneeded items.
SET IN ORDER •Put things in proper places,
arrange and label.
SHINE •Clean up the workplace.
STANDARDIZE •Standardize the 1st 3 S’s.
Document Methods &
maintain cleanliness.
SUSTAIN •Make 5-S a part of the job.
Stick to it! Grade it! Improve it!

44. 5S Program

45. 5-S
Benefits Constraints
• Remove unnecessary items. • Daily workforce involvement,
• Clear workplace. sustained resource allocation.
• Save space. • Minimal investment for storage
• Save time for motion. locations and identification.
• Regular audits required to
• Standardized procedures.
sustain.
• Organized activities.
• Improve safety.
• Improve up time.
• Team building start point.

46. TAKT TIME
• TAKT Time reflects the rate at which customers buy our
products;
• Takt time is calculated by dividing the real available time by the
quantity of goods sold each day:
Daily effective minute = TAKT Time
Daily customer demand
• The actual amount of members needed to build a product at a
given TAKT TIME:
The sum of the Cycle Time = No. of operators required
Divided by the TAKT TIME

47. TAKT Time benefits
Having a TAKT time affords the ability to do the following:
• Compete in a marketplace where the demand and cost of
product is being dictated by the customer.
• Pull the product down the line.
• Monitor the production rate at intervals that are much
smaller than the TAKT time (pro-active approach). When
issues are found that stop the series of work steps to be
completed on time, they can be dealt with in a concise
documented manner.
• Build without overtime.
• Determine the correct number of production workers
required.
• Affords targeted costing (both from labour and product).
• Control cost more effectively.

48. Value Stream Mapping Current State Value Stream
Production
Forecast Control Forecast
Michigan State Street
Steel Weekly Order MRP Daily Order Assembly
Weekly Schedule
Daily Ship
Schedule
2 x Week Daily
Stamping S. Weld 1 S. Weld 2 Assembly 1 Assembly 2 Shipping
I I I I I I
Future State Value Stream Production
Lead Time
= 23.5 days
Value
Added Time
= 184 secs
Forecast
Production
Control Forecast
Check
Michigan
Steel Daily Order Daily Order
State Street
Assembly progress and
Daily Order
stabilise
Daily Daily
V S Manager Jim
Value Stream Plan Product Family
Date 03/02/2003 Steering Brackets
Weld and
Stamping Assembly Cell Shipping
Product Value Person
Family Stream Measurable Monthly Schedule in
Business Objective Goal Charge
Objective 1 2 3 4 5 6 7 8 9
Production Pacemaker
Lead Time *Continuous flow from
= 4.5 days weld to assembly Zero WIP John
*Kaizen to 168 secs < 168 s/t Dave
Value *Eliminate weld
Added Time changeover < 30 sec c/o Sam
= 166 secs *Uptime weld #2 100% Mike
Improve *Finished goods pull 2 days FG Sue
Profitability *Materials handler Pull Schedule James
In Steering routes
Ask the Brackets Stamping
*Stamping Pull 1 day inventory
+ pull schedule
Fred
*Stamping changeover batch size Tim
key 300/160 pieces
c/o < 10 min
Supplier
questions *Pull coils with
daily deliveryr
daily delivery
< 1.5 days of
coils at press
Graham

49. Value Stream Mapping
% ppm
Amplification Quality & Delivery %
40 2000
30
20
Current State 1500
1000
10
5
10 500
0 0 0
F E D C B A F E C A
Time reduced
% ppm
40
Amplification
2000
Quality & Delivery %
from 20 to 5
30
20
Future State 2 1500
1000
10
5 days
10 Flow and Pull between Plants500
0 0 0
F E D C B A Dist. Centre F E C A
Steel
% ppm
Amplification
Ideal State Quality & Delivery %
40 2000
10
30 1500
20 1000 5
10 500
Warehouse Cross Dock
0
Cross Dock
Value Stream Compression 0 0
Stamping Wipers Assembly
Dist. Centre
F E D C B A F E C A
Steel Time
DELTA GAMMA
STEEL STAMPING BETA WIPERS ALPHA MOTORS 44d
Steps 55m
73
8 F E D C B A
Stamping Wipers Assembly
Time Dist. Centre
DELTA GAMMA
Steel
STEEL STAMPING BETA WIPERS ALPHA MOTORS 16d
Steps 55m
Time 39
8 F E D C B A
Stamping Wiper
reduced Cell Cell
Assembly
Time
EPSILON
from 49 to Steps
STEEL SUPPLIER PARK ALPHA MOTORS 3d
55m
20 days 30
8 F E D C B A

50. WORK CELLS
Original Process Layout
Assembly
• Group dissimilar machines in
manufacturing cell to produce 4 6 7 9
family of parts
5 8
2 10 12
• Work flows in one direction
through cell 1 3 11
A B C Raw materials
• One worker tends several Cellular Layout Solution
Assembly
machines
8 10 9 12
• Cycle time adjusted by
11
changing number of workers 4 6
Cell1 Cell 3
Cell 2
7
2 1 3 5
Raw materials A C B

51. WORK CELLS Benefits
• Cellular manufacturing achieves the benefits of flow
based manufacturing
• This simplifies material flow compared to a traditional
process layout
• Ownership and responsibility for a product rests with the
operators of the cell
• Shorter Lead Time
• Improved Quality - Quicker problem identification
• Improved Quality - Less potential rework or scrap
• Less Material Handling
• Improved Coordination
• Reduced Inventory
• Departmental conflicts eliminated
• Simplified Scheduling
• Less Space Required

52. STANDARDIZED WORK
There can be no improvement without the basis of standard work.
.
When normal and abnormal work activities are undifferentiated, waste
almost inevitably occurs. Standardized Work, on the other hand, provides
an efficient framework in which to perform our jobs.
‘Standardized Work’ is a general phrase which refers to all of the
standards (quality, safety, procedural) used in the process of carrying out
routine operations.
Standard work provides a consistent routine and a basis for improvement.
Three elements are important: Takt time/Cycle time, Work sequence and
Standard Work in Process (SWIP).

53. Standard Work-in-Process
• The MINIMUM amount of Work-In-Process required to allow the
operator continued performance of Standard Work.
• By standardizing the WIP, we can find a way to reduce it.
• Shortened LEAD Time
• Quick capture of quality problems
• Unnecessary WIP eliminated
• Potentially less staffing in cell
• Members do more of VA process
• Members become multi-functional
• The aim is one-piece-flow

54. Reducing Inventory
• Reducing Inventories
• In traditional manufacturing, inventories are seen as assets
• Inventories provide a safety buffer, and result from maximizing
machine utilization
• JIT views inventory as waste
• Inventory is evidence of poor design, poor coordination, and
poor operation of a manufacturing system
• Inventory Hides Problems

55. Reducing Inventory
supply /
Inventory level material
defects
/ rework flow
set-up downtime
labour
capacity planning force

56. KANBAN
• Kanban card indicates standard quantity of production
• Derived from two-bin inventory system
• Kanban maintains discipline of pull production
• Production kanban authorizes production
• Withdrawal kanban authorizes movement of goods
• Used when one-piece flow cannot be achieved

57. Kanban
• Visual Refill /Replenishment Systems:
• A visual replenishment system is one in which tools such
• as cards, lights, grids, squares, flags or other visual means
• are used to signal the need for re-supply of materials, parts
• or supplies. (“KANBAN” = Signal to control WIP)

58. Determining Number of Kanbans
average demand during lead time + safety stock
No. of Kanbans =
container size
dL + S
N =
where C
N = number of kanbans or containers
d = average demand over some time period
L = lead time to replenish an order
S = safety stock
C = container size

59. Line balancing
• Time and labour variables are the basis of line balancing.
• They are interrelated and are determining the cost of the
producing a product.
• If one person is doing a part, the processes are done in
sequence. By adding persons, the throughput time will be
reduce and all the operations are done in the same time. The
throughput time is the longest operation time.
• To balance the line, one operator may do 2 faster operation or
we may move some steps from the longest operation to other
operations.

60. SMED
• SMED is a process for dramatically and methodically reducing
set-up or changeover times.
• Will enable significant reduction of lot sizes.
SMED Principles
• Setup time is the time between parts when the machine is idle
and operator is doing a changeover.
• Separate internal setup from external setup
• Convert internal setup to external setup
• Streamline all aspects of setup
• Perform setup activities in parallel or eliminate them.

61. SMED
• Set-up delays causes:
Searching;
Walking;
Poor Schedule information;
No checklist;
Lack of calibration;
Missing tools
Waiting;

62. SMED
Setup Reduction methods:
- Parallel setup tasks: ideally, two people can do the job in half
the time.
- Using quick-attachment devices: one-turn bolt attachment
devices, attachments with fixed holders and pins, clamping
devices,
- Eliminate adjustments: shims with fixed-position holders on
machines, accommodating variable-height dies without making
adjustments,
- Improve external setups: store fixtures, holders, plates, tools
near machines, prepare setup kits and carts, improve material
handling.

63. TPM
• Small lot production with little inventory requires
equipment that:
– Doesn’t break down
– Doesn’t produce defects
– Performs well
• Breakdown maintenance
– Repairs to make failed machine operational
• Preventive maintenance
– System of periodic inspection & maintenance to keep
machines operating
• TPM combines preventive maintenance & total quality concepts
• TPM seeks to find the root causes of equipment problems, and
fix them

64. TPM
Preventive Maintenance Elements
Maintain normal operating conditions
• Maintain equipment requirements
• Keep equipment and facilities clean and organized
• Monitor equipment daily
• Schedule preventive maintenance
• Manage maintenance information
• Use predictive (condition-based) maintenance
Role of Operators
– Keep machine clean
– Routine lubrication and adjustments
– Visual inspection (cracks, oil leaks)
– Be aware of unusual sounds, heat, vibration, etc.

65. Benefits Of Lean Production
1. Reduced 7. Greater flexibility
inventory 8. Better relations with
2. Improved quality suppliers
3. Lower costs 9. Simplified scheduling
4. Reduced space and control activities
requirements 10. Increased capacity
5. Shorter lead time 11. Better use of human
6. Increased resources
productivity 12. More product variety

66. Metrics / Expectations (examples)
• Item potential improvement
• Floor Space 29%
• Scrap 46%
• QC Rejects 95%
• Rework 72%
• Work-in-Process 59%
• Setup Time 66%
• Manpower 32%
• Equipment Required 34%
• Lead Time 56%
• Distance Parts Travel 54%
• Cycle Time 18%
• Finished Goods Inventory 43%
• Down Time 52%
(Source: Kaizen Institute)