The document discusses several key concepts in lean manufacturing including: 1. The goal of lean is to identify and eliminate waste in the production system through techniques like 5S, standardized work, visual management, and kanban pull systems. 2. Value-added activities are those that customers are willing to pay for, while non-value added activities are waste that does not contribute to the product. 3. The seven types of waste or "muda" are overproduction, waiting, transportation, overprocessing, inventory, motion, and defects. Methods like kaizen aim to continuously eliminate these forms of waste.

1. Lean Concepts and major tools for the journey Brian J. Stawski, C.P.M., CPIM

2. Sound Advice “ The world we have created is a product of our thinking; it cannot be changed without changing our thinking. ” Albert Einstein

3. 10/20/11 Lean Manufacturing A systemic approach to manufacturing which is based on the premise that anywhere work is being done; waste is being generated. Lean manufacturing seeks to organize the system through the identification and elimination of waste.

7. Activity Analysis Steps Assign Activity Attributes Value-Added Cost of Poor Quality COPQ 43. Direct manufacturing VA NVA 40. Set-up mach & equipment 41. Inspect, test, audit 42. Waiting for equip./material 44. Rework activities 45. Scrap activities 46. Production monitoring 41. Inspect, test, audit 42. Waiting for equipt/material 44. Rework activities 45. Scrap activities

8. Prioritizing the Vital Few Product Activity Analysis High-to-Low Report - By Value Added Content NVA Activities Number Activity Description Total Cost % Cum% FTE Employee Count 36 Inspect, test, audit WIP $2,119,587 6.0 6.0 57 256 67 Emergency maintenance $1,791,922 5.1 11.1 37 206 35 Set-up equipment & mach $1,370,797 3.9 15.1 36 185 111 Production monitoring $1,330,352 3.8 18.9 31 138 68 Production clean-up $ 900,727 2.5 21.5 26 335 101 Manage paperwork $ 852,126 2.4 24.0 15 95 16 Moving WIP between operations $ 828,997 2.3 26.3 28 108 66 Critical maintenance $ 773,219 2.3 28.5 13 63 39 Waiting for material or equipment $ 764,303 2.1 30.7 19 131 65 Not Critical maintenance $ 656,692 1.8 32.6 11 64 17 Moving WIP to storage $ 545,283 1.5 34.2 18 101 14 Moving RM to operation $ 513,261 1.4 35.7 13 77 38 Scrap defective,obsolete parts $ 460,723 1.3 37.0 13 179 30 Looking for material $ 435,953 1.2 38.2 11 67 All Other (15 activities) $1,875,000 5.4 43.6 --- --- TOTAL NVA ACTIVITIES $15 mil 44% VA Activities 40 Direct mfg activities $12,207,356 35.0 78.6 374 585 64 Preventive maintenance $ 1,183,457 3.3 81.9 26 181 104 TQ training, dvlpmt, mtgs $ 1,370,797 1.5 83.4 22 33 All Other (8 activities) $ 2.454,700 3.0 87.5 --- --- TOTAL VA ACTIVITIES $15 mil 44% ALL OTHER ACTIVITIES $ 5 mil 12% TOTAL ACTIVITIES $35 mil (Wages, Salary, Fringes, Overtime) ABM Helps to Focus and Effectively Use Our Resources LM Teams

9. ABM Pinpoints Process Improvement Opportunities Receiving & Stores Bottom Assembly Final Assembly Packaging Body Assembly Cartridge Assembly Filter Plant ABM Reveals Unknown Process Costs through Process Mapping Final Packaging Receiving Body Cart Bottom Value Added Non-Value Added

10. Performance Measures Operational Performance Measures Scrap % Inventory DOS Schedule Attainment Material Move Rolled Throughput Yield PPM Defect Rate Direct Labor Efficiency Number of Parts Produced Cycle Time Setup Time Uptime Direct Labor Material Moves # of Setups # of Units Produced Scrap Cost Increased Inventory Longer Lead Times Increasing Overhead Costs Creates a common language which aligns goals for Operational and Financial performance Traditional Costdrivers ABM Costdrivers Result Result Using New Performance Measures Requires Changes in Financial Reporting

12. T.P.M. TOTAL PRODUCTIVE MANAGEMENT LOSS STRUCTURE DURING PRODUCTION ACTIVITIES - Equipment losses : - Failures - Set-up - Jig change - Start-up - Minor stoppages - Speed - Defects and rework - Manpower losses : - Management - Operating motion - Line organization - Logistics - Measurement and adjustment - Yield loss - Energy Losses - Die, tool and jig loss - Shut down losses

13. AUTONOMOUS MAINTENANCE The autonomous Maintenance concept was originated to change the traditional Operation structure : PRODUCTION PRODUCE DIVERGENT OBJECTIVES MAINTENANCE REPAIR LOW EQUIPMENT EFFICIENCY TO ACKNOWLEDGE THAT EQUIPMENT RELIABILITY AND CORRECT OPERATION DEVELOPMENT ARE THE BASIS FOR ACHIEVEMENT OF REAL IMPROVEMENT OPERATORS MAINTAIN EQUIPMENT BY THEMSELVES

25. Visual Factory Standardized Work Kaizen Kanban 5S’s - Workplace Organization “ STEPS” to Lean Manufacturing Continual Focus on Elimination of Waste

28. Visual Factory Standardized Work Kaizen Kanban 5S’s - Workplace Organization “ STEPS” to Lean Manufacturing Continual Focus on Elimination of Waste

31. Visual Factory Standardized Work Kaizen Kanban 5S’s - Workplace Organization “ STEPS” to Lean Manufacturing Continual Focus on Elimination of Waste

32. Simple Truths Variance = Defects

34. Question: How do you standardize an operator process? Answer: YOU DON’T !!!

37. Visual Factory Standardized Work Kaizen Kanban 5S’s - Workplace Organization “ STEPS” to Lean Manufacturing Continual Focus on Elimination of Waste

38. Continuous Improvement (Kaizen) You cannot identify a plan for improvement unless you have standardized the process.

39. Planning Cycle

41. Visual Factory Standardized Work Kaizen Kanban 5S’s - Workplace Organization “ STEPS” to Lean Manufacturing Continual Focus on Elimination of Waste