The main focus of these projects as well as the consulting work that Dr. Maleki has done was on improving operational efficiencies including safety, quality, productivity, and reducing cost. An integral part of Dr. Maleki’s work with most businesses has been needs assessment which served as the foundation for identifying opportunities for improvement and subsequently providing technical assistance and when appropriate, design and delivery of training materials.
Lean enterprise building blocks Tools and Systems for Increasing Productivity.
1. Presenter
Reza Maleki, Ph.D., P.E., C.Mfg.E.
Senior Business Advisor
LEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKS
Tools and SystemsTools and SystemsTools and SystemsTools and Systems
for Increasingfor Increasingfor Increasingfor Increasing
ProductivityProductivityProductivityProductivity
2. EDUCATION
Ph.D. Engineering
M.S. and B.S. Industrial Engineering/Management
PROFESSIONAL REGISTRATION AND CERTIFICATIONS
Registered Professional Industrial Engineer
Certified Manufacturing Engineer
Lean Certified Practitioner
Certification in Lean Leadership
Academic Associate of Avraham Y. Goldratt Institute
Introductions
Reza Maleki
3. PROFESSIONAL WORK EXPERIENCE
Higher Education
Served in Universities in Minnesota,
North Dakota, Wisconsin, and South Dakota
Also served as a visiting professor at Kazakh British Technical
University, in Almaty Kazakhstan.
Consulting and Training
Have worked with companies in Minnesota, North Dakota,
South Dakota, Kentucky, Michigan, and Wisconsin.
Other Professional Experience
Technology Transfer Director
Director of Allied Manufacturing Center
Senior Business Advisor, Impact Dakota, Fall 2013-Present
Introductions
4. Impact Dakota, North Dakota’s MEP
An Affiliate of the National Institute for Standards and Technology
5.
6. Introductions
Guests and Participants
Students
Name
Degree program enrolled in
Previous degrees
Other Guests and Participants
Your Name
Title
Work experience – years, companies
All Guests and Participants
Experience with LEAN (training, education, applications)
What do you hope to accomplish as a result of attending
this training (personal and professional)
7. Topics Covered
PART I
Productivity - Input/output Model
Approaches to Improving Productivity
PART II
Lean Building Blocks: 5s, Visual System, Standard Work, Quick
Changeover, Plant Layout, Cellular Manufacturing, Quality at Source,
Value Stream Mapping, Root Cause Analysis and Problem Solving
PART III
Lean Building Blocks: Managing Flow (emphasis on pull system and
Theory of Constraints)
SUMMARY
QUESTIONS AND ANSWERS
8. LEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKS
Tools and SystemsTools and SystemsTools and SystemsTools and Systems
for Increasingfor Increasingfor Increasingfor Increasing
ProductivityProductivityProductivityProductivity
PART I
Productivity – Input/Out Model
11. ENTERPRISE
Transformation Processes
Regardless of the size, managing all processes and information
flow across and among the functions impacts productivity
Input Output
People
Capital
Energy
Materials
Goods
Services
Productivity - Input/output Model
Productivity = Output / Input
15. Lean Definition
Lean has been defined in many ways ……
A systematic approach to identifying and eliminating waste
(non-value added activities) through continuous improvements
in pursuit of perfection.
Key Term:
None-value added activities (as opposed to value-added activities)
What is Lean About?
16. Lean Definition
Value Added Non-Value Added
Any activity that increases the
market form or function of the
product or service.
(These are things the customer
is willing to pay for)
Any activity that does not add
market form or function or is not
necessary.
(These activities should be
eliminated, simplified, reduced,
or integrated)
Typically 95% of all lead time is due to non-value added activities
17. Waste
Waste (Muda in Japanese)
8BasicWastes Defects D
Over-production O
Waiting (for parts or resources) W
None or under-utilized employee talent N
Transportation T
Inventory I
Motion M
Extra Processing E
Typically 95% of all lead time is due to non-value added activities
18. How to Improve Productivity?
Typically 95% of all lead time is due to non-value added activities
19. Improving Productivity
The good news - Most process improvements are no/low cost in nature!
The key is to separate VALUE ADDED and NON-VALUE ADDED activities
(wastes) in a PROCESS. This step is very helpful in identifying areas for
improvements.
Total Time
Process
20. Improving Productivity
The good news - Most process improvements are no/low cost in nature!
The key is to separate VALUE ADDED and NON-VALUE ADDED activities
(wastes) in a PROCESS. This step is very helpful in identifying areas for
improvements.
Total Time
Adding
Value
Waste
21. Using various LEAN tools and techniques to improve productivity through
eliminating or reducing of wastes.
Adding
Value
Waste
Total Time
Improving Productivity
22. Improving Productivity
Using various LEAN tools and techniques to improve productivity through
eliminating or reducing of wastes.
Adding
Value
Waste
Total Time
23. Improving Productivity
Using various LEAN tools and techniques to improve productivity through
eliminating or reducing of wastes.
Reduction and/or elimination of wastes also offer the added advantage of
SHRINKING THE TIME required to deliver a product or service.
Adding
Value
Waste
Total Time
26. LEAN for all Business Processes - Communication
AS IT WAS
MANUFACTURED
AS FIELD SERVICE
INSTALLED IT
WHAT THE
CUSTOMER WANTED
AS ENGINEERING
DESIGNED IT
AS SALES
ORDERED IT
AS MARKETING
REQUESTED IT
27. LEAN for all Business Processes - Design
Impacts on Inventory – Warehousing – Space – Material Handling – ERP?
How about if you had 200 or more of similar products?
28. Manufacturing Cost, Price, and Profit Models
Traditional Thinking
Cost + Profit = Price
Lean Thinking
Price - Cost = Profit
Price Price
Price
Profit
Price
Cost Cost
Profit
Manufacturing (cost) Driven Market Driven
Lean is a growth strategy for creating value to the end market thus
positioning your organization as the premier provider of choice.
29. A little of history
Lean Manufacturing
Lean Basic History (7 minutes)
Adam Smith The Wealth of Nations, Division of Labor
Eli Whitney Inventor of Cotton Gin, Interchangeable parts
Fredrick Taylor One Best way, Scientific Management
Henry Ford Moving Assembly Line, Standard Parts
Kiichiro Toyoda Automatic Loom, Just-in-Time
Edward Deming Quality, Plan-Do-Check-Act
Taiichi Ohno Father of Toyota Production System, JIT, Jidoka
Jim Womack Lean and Lean Thinking
History
30. History of Manufacturing
Pre-industrial 1890 Mass 1920 Lean 1980
People
Craftsmen
Perform all tasks
Self-taught or
apprenticeship
Employees
contribute
minimally to total
product
Limited training
Cluster of
employees working
in teams
Extensive continuing
training
Customer Response
Highly responsive
Long lead time
Non-responsive
Build to stock –
standard product
Extremely
responsive
Build to demand
Short lead times
Product
Customized, non-
standard products
Variation in quality
Standardized,
focused on volume
not quality
Focus on internal /
external customer
Work Environment
Independence,
discretion
Variety of skills
Responsibility
Obey management
Repetitive, mind-
numbing work
Limited skills,
knowledge,
discretion
Some discretion,
group effectiveness,
empowerment,
team accountability,
work cells
31. Manufacturing Systems Metrics
Craft Mass Lean
Cost High Low Low
Quality High Low High
Delivery Long Short Short
Volume Low High Demand
Variety High Low High
32. LEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKS
Tools and SystemsTools and SystemsTools and SystemsTools and Systems
for Increasingfor Increasingfor Increasingfor Increasing
ProductivityProductivityProductivityProductivity
PART II
Waste Reduction and Lean Building Blocks
33. Lean Building Blocks
An integral part of LEAN Enterprise Certification Program
Lean Building Blocks is an integral part of LEAN Enterprise
Certification Program (LECP).
The LECP helps businesses build internal capacity by providing
their workforce with a working knowledge of the principles and
practices that help with improving COST, QUALITY, and
DELIVERY.
Lean tools, systems, and principles are applicable not just to
manufacturing but also to other businesses as well
34. Lean Building Blocks
An integral part of LEAN Enterprise Certification Program
The LEAN Enterprise Certification Program (LECP) includes:
9 learning modules; about ½ day each
Supplemental readings
Jeopardy style game (quiz) for each module
Practice Exam
2-day kaizen (project) events
National LECP exam administered by the Society of
Manufacturing Engineers.
35. Lean Enterprise Certification
Concepts and Structure
The foundation of personal development and professional
growth begins with understanding three Lean concepts:
Principles: focuses on the
strategic transformation of
an entire enterprise.
Systems: integrates Lean
knowledge with leadership
experience.
Tools: focuses on the
fundamentals of Lean from
a tactical perspective.
37. Waste
Waste (Muda in Japanese)
8BasicWastes Defects D
Over-production O
Waiting (for parts or resources) W
None or under-utilized employee talent N
Transportation T
Inventory I
Motion M
Extra Processing E
Typically 95% of all lead time is due to non-value added activities
39. Waste - Defects
Inspection and repair of material in inventory
Causes of Defects
o Weak process control
o Deficient planned maintenance
o Inadequate education/training/work instructions
o Product design
o Customer needs not understood
40. Waste - Over-production
Making more than is required by the next process
Making earlier than is required by the next process
Making faster than is required by the next process
Causes of Overproduction
o Just-in-case Logic
o Misuse of automation
o Long Process Set-up
o Un-level scheduling
o Unbalanced work load
Lucy and Ethel Fighting a Losing Game (00:47 minutes)
41. Waste - Waiting
Idle time created when waiting for parts, materials, machines,
information, help, etc.
Causes of Waiting
o Unbalanced work load
o Unplanned maintenance
o Long process set-up times
o Misuses of automation
o Upstream quality problems
o Un-level scheduling
42. Waste - None or Underutilized People
The waste of not using people’s abilities (mental, creative,
physical, skill)
Causes of Underutilized People
o Old guard thinking, politics, the business culture
o Poor hiring practices
o Low or no investment in training
o Low pay, high turn over strategy
43. Waste - Transportation
Transporting parts and materials around the plant
Causes of Transportation Waste
o Poor plant layout
o Poor understanding of the process flow
for production
o Large batch sizes
o Long lead times
o Large storage areas
44. Waste - Inventory
“Any supply in excess of a one-piece flow through your
manufacturing process”
Causes of Excess Inventory
o Protects the company from inefficiencies and unexpected
problems.
o Unleveled scheduling
o Poor market forecast
o Unbalanced workload
o Unreliable shipments by suppliers
o Misunderstood communications
o Reward system
45. Waste - Inventory
Inventory “hides” problems
Inventory cost a lot of money
Reduction of inventory without solving of
problems causes wreckage
What Happens
if you reduce Inventory?
46. Waste - Motion
Movement of people or machines that does not add value to
the product or service.
Causes of Motion Waste
o Inconsistent work methods
o Poor people/machine effectiveness
o Unfavorable facility or cell layout
o Poor workplace organization and housekeeping
o Extra “busy” movements while waiting
47. Waste - Extra Processing
Effort that adds no value to the product or service from the
customers’ viewpoint
Causes of Extra Processing
o Product changes without process changes
o True customer requirements undefined
o Lack of communication
o Redundant approvals
o Extra copies/excessive information
48. Waste
Waste (Muda in Japanese)
8BasicWastes Defects D
Over-production O
Waiting (for parts or resources) W
None or under-utilized employee talent N
Transportation T
Inventory I
Motion M
Extra Processing E
LEAN BuildingLEAN BuildingLEAN BuildingLEAN Building Blocks includeBlocks includeBlocks includeBlocks include ToolsToolsToolsTools,,,, SystemsSystemsSystemsSystems, and, and, and, and
PrinciplesPrinciplesPrinciplesPrinciples that help with reduction and/or eliminationthat help with reduction and/or eliminationthat help with reduction and/or eliminationthat help with reduction and/or elimination
of different types of wastes.of different types of wastes.of different types of wastes.of different types of wastes.
49. Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S SystemVisual Plant Layout
POUS
Cellular ManufacturingManaging Flow TPM
Continuous Improvement
Value
Stream
Mapping
Root Cause Analysis and Problem Solving Tools
LEAN Building Blocks
54. A workplace that is:
Clean,
Organized,
Orderly
Pleasant
Is The foundation for all
other improvement
activities
Resulting in:
Fewer accidents
Improved efficiency
Improved quality
Workplace control
And therefore…
Reduced waste, and
Reduced cost
Lean Building Blocks - Workplace Organization (5S)
The Fundamental Strength
56. Lean Building Blocks - Workplace Organization (5S)
Workplace Examples
5S – Ideas That Work (3 minutes)
57. Lean Building Blocks - Workplace Organization (5S)
In-class Exercise
The 5S Numbers Game
58. A visual device is a mechanism or thing intentionally
designed to influence, guide, direct, limit or even
guarantee our behavior by making vital information
available as close to the point-of-use as possible to
anyone and everyone who needs it without speaking
a word.
The modern gas pump is so highly visual that,
with a little help from you,
it easily substitutes for the gas attendant and the cashier.
A visual workplace is self-ordering, self-explaining,
self-regulating, and self-improving; where what is
supposed to happen does happen, on time, every
time, day or night – because of visual devices.
Lean Building Blocks - Visual Systems
59. Lean Building Blocks - Visual Systems
Make your process better
by making it more visual for
everyone to clearly see
Lean Visual Workplace is
similar to your favorite games
– you always know the score
and what’s happening
60. In Lean, standardized work (also called standard work) is the
cornerstone of any continuous improvement effort.
Lean Building Blocks - Standardized Work
61. Standard (baseline)
Standard (revised)
Standard (revised)
Standards are the basis for comparison (before/after)
With no standards you can’t objectively tell what has changed or what
has improved
“Where there is no standard, there can be no kaizen.”
Taiichi Ohno, Vice-president, Toyota Motor Corporation
Lean Building Blocks - Standardized Work
62. Toyota Production System
House of Lean
STANDARDIZED WORK is the
Foundation for Improvement.
Lean Building Blocks - Standardized Work
64. Lean Building Blocks - Quick Changeover
Changeover - The elapsed time from when the last part of the
current run is completed until the work center starts running the
first good piece of the next run.
Current Run Setup Next Run
Setup
Improved Setup
Opportunities
65. Other
Examples
Paint Systems
Presses
Emission Control Testing
Pizza Shops
Other Fast Food Places
Making Coffee at Home
Getting Dinner Ready for Thanksgiving
Changing Tire on Your Car
Changing Tires: Ferrari F1 Pit Stop Perfection (00:47 minutes)
Lean Building Blocks - Quick Changeover
66. Changing Tires: Ferrari F1 Pit Stop Perfection (00:47 minutes)
Lean Building Blocks - Quick Changeover
71. Lean Building Blocks - Plant Layout
Straight-line Flow Pattern when possible
Backtracking kept to a Minimum
Predictable Production Time
Little In-process materials storage
Open Floor plans so everyone can see what is going on
Bottlenecks under control
Workstations close together
Minimum of material handling
Easy adjustment to changing conditions
Principles of a Good Layout
72. Lean Building Blocks - Plant Layout
An example of Spaghetti Diagram (also known as flow diagram)
73. Operator travelled 3,215 ft. to
get first good piece.
98 minutes from last good
piece of previous run to first
good piece of this run.
Lean Building Blocks - Plant Layout
An example of Spaghetti Diagram (also known as flow diagram)
77. Lean Building Blocks - Cellular Manufacturing
Cellular Manufacturing is a model for workplace design, and has
become an integral part of lean manufacturing systems.
Cellular Manufacturing is based upon the principals of Group
Technology, which seeks to take full advantage of the similarity
between parts, through standardization and common
processing.
78. 1. Group products
2. Assess demand, establish takt time
3. Review work sequence
4. Balance work load
5. Design cell layout
Lean Building Blocks - Cellular Manufacturing
Cell Design Process
81. Before – Parts are processed and moved between different departments in large lots
After – Parts are completed within the sell in small lots
Lean Building Blocks - Cellular Manufacturing
Cell Design Example
83. Lean Building Blocks - Quality at Source
Own Process End of Line Final Inspection Customer
Source Inspection - Operators must be certain that products they pass
to the next work station are of acceptable quality.
Main focus should be on PROCESS QUALITY, not inspection
Inspection tools:
o Operators have the means to perform inspection at the source,
before they pass it along
o Visible samples or established standards
The Relative Cost of Fixing Defects
84. Lean Building Blocks - Quality at Source
The Relative Cost of Quality (and Manufacturing) during Product Development Cycle
85. Lean Building Blocks - Value Stream Mapping
A value stream involves all the steps in a process, both value
added and non value added, required to complete a product or
service from beginning to end.
Finished ProductRaw Material
Stamping Welding Assembly
Value Stream
Process 1 Process 2 Process X
86. Lean Building Blocks - Value Stream Mapping
Product Family
Start with a single product family
Current State
Understanding how things currently
operate. This is the foundation for the
future state
Future State
Designing a lean flow
Develop Implementation Plan
Developing a detailed plan of
implementation to support objectives
(what, who, when)
Conceptual View
Product
family
Current state
drawing
Future state
drawing
Work plan &
implementation
Standardizefor
futureimprovements
87. Lean Building Blocks - Value Stream Mapping
Example: Current State
MLT (PLT) = Process Time + Inventory Retention Time
88. Lean Building Blocks - Value Stream Mapping
Example: Future State
MLT (PLT) = Process Time + Inventory Retention Time
89. Lean Building Blocks - Value Stream Mapping
Example: Future State
Break Future State into “Loops”
90. Other Tools / Topics
Deming’s PDCA and A3 Thinking
Affinity Diagram
Five Why
5W (what, why, where, when, who) 2H
(how, how much)
FMEA (Failure Mode and Effect Analysis)
Value Engineering
Mistake Proofing and Jidoka
Ishikawa’s B7 Tools
Root Cause Analysis and Problem Solving Tools
91. Deming’s PDCA
Root Cause Analysis and Problem Solving Tools
You Can’t manage what you don’t
measure.
If you can’t describe what you are
doing as a process, you don’t
know what you are doing. (W. Edward Deming)
Data collection and analysis is the foundation for continuous
improvement efforts.
Deming is also known for his
PDCA cycle for problem solving.
92. Plan (Stage 1)
o Define the REAL problem
o Determine the root cause
o Generate alternative solutions
o Decide which alternative to use
Do (Stage 2)
o Implement the solutions on a
test basis
Check (Stage 3)
o Evaluate results and see if the
problem was REALLY solved
o Goals achieved?
Act (Stage 4)
o Institutionalize improvement
o Continue the cycle with new
problems in Stage 1
Take action based on what you learned in the check (study) step: If
the change did not work, go through the cycle again with a
different plan. If you were successful, incorporate what you
learned from the test into wider changes. Use what you learned to
plan new improvements, beginning the cycle again.
Deming’s PDCA is a quality improvement model consisting of a logical
sequence of four repetitive steps for continuous improvement and learning
Deming’s PDCA
Root Cause Analysis and Problem Solving Tools
Data collection and
analysis is essential at
every stage
93. Importance of Data Collection and Information Sharing
Root Cause Analysis and Problem Solving Tools
Versions of a Process
At Least Three Versions
What you think it is... What you would
like it to be...
What it actually is...
94. Mistake Proofing (Poke-Yoke)
Root Cause Analysis and Problem Solving Tools
The term poka-yoke comes from the Japanese words poka (accidental
mistake) and yoke (prevent). Also known as mistake-proofing or
error-proofing.
Shigeo Shingo developed poka-yoke while working at Toyota in the
1960’s. He made a clear distinction between an error and a defect.
Errors are inevitable - people are human and cannot be expected
to concentrate all the time on the work in front of them or to
understand completely the instructions they are given.
Defects are avoidable – and result from allowing a mistake to go
undetected.
The principle behind poka-yoke is to design your process so that
mistakes are impossible or at least easily detected and corrected.
Preventing Problems Before they Happen
97. File Cabinet
Customer (supplier): Office equipment
user
Potential Error: File cabinet tipping
over due to multiple top drawers open
Poka-Yoke: Only one drawer can be
opened at a time
Mistake Proofing (Poke-Yoke) - Example
Root Cause Analysis and Problem Solving Tools
98. Mistake Proofing (Poke-Yoke) - Example
Root Cause Analysis and Problem Solving Tools
Highway Bridges Clearance Signs
Customer (supplier): Drivers of tall vehicles
Potential Error: Vehicles crashing into bridge, tunnel, parking
facility, etc.
Poka-Yoke: Signs or devices to inform driver of vehicle height
restrictions Over-height vehicle
is detected by OVDS
Electronic signal
warns the driver
(visual and audio)
102. LEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKS
Tools and SystemsTools and SystemsTools and SystemsTools and Systems
for Increasingfor Increasingfor Increasingfor Increasing
ProductivityProductivityProductivityProductivity
PART II
Lean Building Blocks
Managing Flow and Theory of Constraints
103. Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S SystemVisual Plant Layout
POUS
Cellular ManufacturingManaging Flow TPM
Continuous Improvement
Value
Stream
Mapping
Root Cause Analysis and Problem Solving Tools
LEAN Building Blocks
104. 1 2 3 4
1 2 3 4
1 2 3 4
5 6
5
$ $ $
HIGH MEDIUM LOW
Flexibility
$ Invested
Raw
Materials
Finished
Goods
Work-In-Process
Lean Building Blocks - Managing Flow
Inventory Overview
105. Inventory as a hedge against uncertainties and problems
Excess inventory is the root of all evil (Kiyoshi Suzaki, The New Manufacturing Challenge)
Inventory Hides Waste
Lean Building Blocks - Managing Flow
Inventory Overview
106. Inventory is a measure of
total manufacturing
effectiveness
Lean Building Blocks - Managing Flow
Inventory Overview
107. Inventory Overview - The Strategic Nature of Inventory
The size of your inventory relates directly to the percent of your
lead time that is non-value-added!
108. The size of your inventory relates directly to the percent of your
lead time that is non-value-added!
How to
Transition ?
Applying lean tools and
methodologies including
pull/kanban system
Inventory Overview - The Strategic Nature of Inventory
109. Key Inventory Measure
ࡵ࢜ࢋ࢚࢘࢟ ࢀ࢛࢙࢘ ൌ
࢛ࢇ ࢙࢚ ࢌ ࡳࢊ࢙ ࡿࢊ
࢜ࢋ࢘ࢇࢍࢋ ࡻ ࢎࢇࢊ ࡵ࢜ࢋ࢚࢘࢟
Company Inventory Turns Turn Days
Average U.S. Manufacturer 7 - 8 45 - 52
Harley Davidson 21 17
Black & Decker 37 10
Average U.S. Grocery Store 50 7
Toyota 80 - 100 3.7 – 4.7
7-11 Stores 300 + ~ 1
Inventory Overview - The Strategic Nature of Inventory
110. Batch
and
Queue
Production is based on anticipated need dates (forecast).
High utilization and high efficiency drive performance.
Bottlenecks are hidden and lead times expanded.
Maintaining flow is costly.
Information Flow
Parts Flow
CustomerProcess
B
Supplier
Raw
Process
A
Process
C
WIP WIP FG
Push System
Batch
and
Queue
Push vs. Pull System
Lean Building Blocks - Managing Flow
111. Parts Flow
CustomerProcess
B
Supplier
Process
A
Process
C
Pull System
Production is based on actual consumption rates.
Collapsing lead times; simplified scheduling.
Improving flow drives performance.
Material flow is regulated by a visual system which is also referred to as a
“kanban” system.
FGRM
Information Flow Kanban
Push vs. Pull System
Lean Building Blocks - Managing Flow
112. Lean Building Blocks - Managing Flow
o Empty space
o Empty containers
o Kanban cards
o Trigger boards
o Electronic signals
o Computer signals
o Etc.
Signals used to operate the pull
system
Signal to Produce or Convey
Includes information about: What,
When, Where, How Much
May include outside suppliers
Can take many forms
Kanban
113. 1. When the oil reaches the white
level reordering occurs
2. Kanban card containing
reordering information
Lean Building Blocks - Managing Flow
Kanban Examples
114. The Vending Machine
A great illustration to show how a pull system works is the vending machine.
In a typical scenario, the customer pulls product from the vending machine –
the exact item, quantity wanted, and at the time it is needed. Then, the
supplier replenishes only the items that need to be replaced.
Lean Building Blocks - Managing Flow
Kanban Examples
116. o Kanban signals
o Empty space
o Kanban cards
o Internal suppliers
o External suppliers
Setups
Lot sizes
Machine breakdowns
Other disruptions
Pull-Kanban Simple Demo (1:03 minutes)
Lean Building Blocks - Managing Flow
Kanban Examples
117. An information system for:
Controlling and improving the flow of materials and
information
Allocating resources based on actual consumption not on
forecasted demand.
A Pull System is Flexible and Simple
Eliminates waste of handling, storage, expediting,
obsolescence, repair, rework, facilities, equipment, excess
inventory (work-in-process & finished).
Provides visual control of resources.
Pull and Kanban together define the concept of Just-in-Time
Lean Building Blocks - Managing Flow
Kanban Examples
118. Pull and Kanban together define the concept of Just-in-Time
Lean Building Blocks - Managing Flow
Pull/Kanban and Just-in-Time
122. What is Kanban: To Do, Doing, Done (00.54 minutes)
Lean Building Blocks - Managing Flow
Use of Kanban Throughout the Supply Chain
123. 1 2 3 4 5 6
Raw
Materials
Finished
Goods
Work-In-Process
Constraint Operation
The constraint operation determines overall
capacity of production line. It is the weakest link!
Pipeline Analogy
Which part of the pipe is restricting the flow?
Would making parts A or D bigger help?
Lean Building Blocks - Managing Flow
Managing Constraint Operations
124. 1 2 3 4 5 6
Raw
Materials
Finished
Goods
Work-In-Process
Constraint Operation
The constraint operation determines overall
capacity of production line. It is the weakest link!
To protect the constraint capacity, when needed, a buffer to
protect the against fluctuations might help so it is never idle,
and maximum potential capacity can be maintained.
Lean Building Blocks - Managing Flow
Managing Constraint Operations
125. Three critical questions related to the constraint
operation:
Where is the constraint?
Why is it the constraint?
What must be done so that it is no longer the
constraint?
In order to increase capacity of the
production line (value stream), the constraint
operation must be studied and measures put
in place to remove all waste (e.g., scrap,
setup time, downtime, wait time)
Lean Building Blocks - Managing Flow
Managing Constraint Operations
126. In-class Exercise
Theory of Constraints
Lean Building Blocks - Managing Flow
Managing Constraint Operations
127. Quick Changeover
Standardized Work Batch Reduction Teams
Quality at Source
5S SystemVisual Plant Layout
POUS
Cellular ManufacturingManaging Flow TPM
Continuous Improvement
Value
Stream
Mapping
Root Cause Analysis and Problem Solving Tools
LEAN Building Blocks
SUMMARY
128. Presenter
Reza Maleki, Ph.D., P.E., C.Mfg.E.
Senior Business Advisor
LEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKSLEAN ENTERPRISE BUILDING BLOCKS
Tools and SystemsTools and SystemsTools and SystemsTools and Systems
for Increasingfor Increasingfor Increasingfor Increasing
ProductivityProductivityProductivityProductivity
Reza Maleki * RezaM@ImpactDakota.com * (701) 367-8664