2. Agenda
Backgroun
d
Toyota Production System Key
Lean Techniques
Advantages and
Disadvantages
People and Customers
Economics
Changes in Lean
Current Lean Practices Case
Studies
3. Definition
Lean Manufacturing – A way to eliminate waste and
improve efficiency in a manufacturing environment
Lean focuses on flow, the value stream and
eliminating muda, the Japanese word for waste
Lean manufacturing is the production of goods using
less of everything compared to traditional mass
production: less waste, human effort, manufacturing
space, investment in tools, inventory, and engineering
time to develop a new product
4. Lean and Just-in-Time
Lean was generated from the Just-in-time (JIT)
philosophy of continuous and forced problem solving
Just-in-time is supplying customers with exactly
what they want when they want it
With JIT, supplies and components are “pulled”
through a system to arrive where they are needed
when they are needed
5. What is Waste?
Waste is anything that
happens to a product
that does not add value
from the customer’s
perspective
Products being stored,
inspected or delayed,
products waiting in
queues, and defective
products do not add
value
6. Seven Wastes
Overproduction – producing more than the customer
orders or producing early. Inventory of any kind is
usually waste.
Queues – idle time, storage, and waiting are wastes
Transportation – moving material between plants,
between work centers, and handling more than once is
waste
Inventory – unnecessary raw material, work-in-process
(WIP), finished goods, and excess operating supplies
Motion – movement of equipment or people
Overprocessing – work performed on product that adds
no value
Defective product – returns, warranty claims, rework
and scrap
7. Origins
Lean Manufacturing is
sometimes called the
Toyota Production
System (TPS)
because Toyota Motor
Company’s Eiji
Toyoda and Taiichui
Ohno are given credit
for its approach and
innovations
8. Underlying Principles to TPS
Work shall be completely specified as to
content, sequence, timing, and outcome
Every customer-supplier connection, both
internal and external, must be direct and
specify personnel, methods, timing, and
quantity of goods or services provided
Product and service flows must be simple and
direct – goods and services are directed to a
specific person or machine
Any improvement in the system must be
made in accordance with the “scientific
method” at the lowest possible level in the
organization
9. Toyota Production System
Since the Toyota Production System
requires that activities, connections,
and flow paths have built-in tests to
signal problems automatically, gaps
become immediately evident.
Results of the TPS are improvements
in reliability, flexibility, safety, and
efficiency.
These lead to increase in market share
and profitability.
14. Benefits of 5S
Increases organization and efficiency
Avoids wasted motion
Increases safety
Eliminates unnecessary inventory
Offers improvements at an inexpensive
cost
15. 5S Drawbacks
If not fully implemented, may result in
“Jive S”
Store things Stick to
the rules Superficially
clean
Switch to new fixtures
Serve reluctantly
Can not be considered an end goal –
must be part of a continuous
improvement movement
16. Single Minute Exchange of
Dies(SMED)
Method that focuses on the rapid conversion from
manufacturing one product to the next
17. SMED and
Lean SMED needs to be treated as a
constant improvement program
Setup times can not be minimized
overnight
Continuous evaluation and exploration
of further improvements is absolutely
necessary
18. 05/30/10
Unload and visually inspect (adjust if necessary)
18
Simple CNC Example
New batch of parts arrives
Change over tools for the batch
Set offsets for new tools
Load NC program Validate
Run
parts
Load part onto machine
Cycle start and wait
19. External elements of work can be completed while the machine is still running e.g. get
the next tool, get all your clamps, get lifting equipment in place, put equipment away,
etc.
Internal elements of work can only be done while the machine is stopped e.g. change
the tool, adjust the machine depth, sharpen a tool (which requires the machine to be
stopped), etc..
23. For example:
A slide clamp reduced the time required to load and unload parts to fixture.
2 hold-down clamps eliminated the need to tape parts during a glue-up operation.
Set slide allows quick (temporary) alignment of 2 parts.
SMED
Examples
25. 05/30/10 25
Make the tool part of the screw device -- you don’t need a tool,
and this will save time in disassembling and reassembling the
tooling and fixturing!
31. Benefits of SMED
Increases throughput by reducing setup times
Eliminates setup errors
Increases safety
Reduces the cost of setups
Reduces waiting times and inventory buildups
Decreases the required skill level of the
operators
32. Kanban
A system that uses replenishment
signals to simplify inventory management
Signals (usually cards) hold product details
What to make, when to make it, how much to make, and
where to send it
Cards stay attached to a bin that holds the
product
When bin is empty, it is returned to the start of the
assembly line for replenishment
Full bins are returned to the customer, and the
cycle continues
34. Benefits of Kanban
Highly visible systems
Simple, effective, and inexpensive
Reduces inventory and eliminates
stock- outs
Improves the quality of service
Improves lead times
38. Lean
ManufacturingAdvantages and
Disadvantages
Advantages
:
Increased overall
productivity
Reduced amount of
floor space required
Reduced
manufacturing lead
time
Improved flexibility to
react to changes
Improved quality
Disadvantages
:
Difficulty involved with
changing processes to
implement lean principals
Long term commitment
required
Very risky process -
expect supply chain
issues while changing
over to lean
39. People
Transition to Lean is
difficult since a company
must build a culture
where learning and
continuous improvement
are the norm.
Success of lean requires
the full commitment and
involvement of all
employees and of the
company’s suppliers.
40. How People Benefit from
Lean
Element Traditional Lean Improvement
Communication Slow & Uncertain Fast & Positive Quality &
Coordination
Teamwork Inhibited Enhanced Effective Teams
Motivation Negative, Extrinsic Positive, Intrinsic Strong Motivation
Skill Range Narrow Broad Job Enrichment
Supervision Difficult and
Fragmented
Easy & Localized Fewer Supervisors
41. How Customer’s Benefit from
Lean
Element Traditional Lean Improvement
Response Weeks Hours 70-90%
Customization Difficult Easy Competitive
Advantage
Delivery Speed Weeks-Months Days 70-90%
Delivery
Reliability
Erratic Consistent & High Up to 90%
Delivery
Quantities
Large Shipments JIT as Required Locks in JIT
Customers
Quality Erratic Consistent & High Delighted
Customers
43. Economics
Reduction of Inventory
Less space necessary to hold
inventory Reduced
Waste
Decreased Production
Cost Increased market share
Able to provide what the customer wants quickly
Increased competitive advantage
Faster response to the customer
Lower Cost
Higher Quality
45. Inventory Comparison
Inventory Turnover – annual cost of goods
sold from the income statement divided by
the value of inventory from the balance
sheet
46. Quality
Control 6 sigma
process
Combination of old and new ideas
6 ingredients
Genuine focus on the customer Data- and fact-
driven management
Process focus, management, and
improvement Proactive management
Boundarlyless collaboration
Drive for perfection, tolerance failure
49. 6 Tools for Lean
Maintenance
Visual Controls 5S
Seven Wastes
Single Minute Exchange of
Dies Poka-yoke
Total Productive Maintenance
50.
51. Other impacts of Lean
Bell South – service industry
Management system and
operations Control
Process management, work measurement,
management control, and people development
Combines lean and 6 sigma
Woburn Safari
Parks
Feed logistics
Animal Resource
Planning
52. Backgroun
d Poli-film America Inc. a division of a German owned company.
Manufactures protective masking that prevents abrasion and
staining of exposed surfaces during manufacturing and
delivery
Industries Using Material:
Plastics
Automotives
Constructio
n
Electronics
Laminates
Furniture
Textiles
High demand product
24/7 production
53. Problem
s An enterprise resource planning system that
encompassed an unstable
database The database was untrustworthy account of inventory,
hand counts were necessary to confirm the numbers
counted by computers
Led to many employees spending many hours and led to
low processing and limit of work utilization
Lack of frequency in supplies and storage – errors in
production and set limits
Unable to trace items
Main concern – program’s ability to adapt to
changing processes and production goals while still
maintaining inventory traceability real time data with
multiple distribution sites
54. Result
s Chose a new program to implement in later 2003
Greatest impact on company’s inventory flow and order
distribution
Real time traceability allowed him to cut down on the 2 mil lbs of
film and other materials by more than half and maintain a
sufficient safety stock for when its time to reorder and restock
Benefits through Lean
Time and money has seen dramatic cuts
Instead of 20 min to fill an order, takes less than 5 min currently
Allowed company to expand for more regional coverage
Been simplified for reports
Reduce time taken to accomplish certain tasks and add more
responsibilities
