Companies must provide customers with world-class quality, delivery and service. Customers won’t accept anything less. The globalization of markets means.
Post on 03-Jan-2016
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Companies must provide Companies must provide customers with customers with world-classworld-class qualityquality, , deliverydelivery and and serviceservice. Customers . Customers won’t accept anything less. The won’t accept anything less. The globalization of markets means globalization of markets means they don’t have to accept anything they don’t have to accept anything less. less. •Toyota Motor CorporationToyota Motor Corporation
Sign in the Toyota Factory in Japan
The 5 Principles of Lean
Identify the Value Stream– Defined from the customer’s perspective– Document so your organization understands in both a
high and detail level your value streams
Make Value Flow– Reduce all forms of Waste
• Wait time or “Que” time• Non value-adding steps value-
– The objective is continuous flow
Pull from External and Internal CustomersProvide only when needed
Optimize the Value Stream
Remember, you are just a piece of that entire value stream
Strive for Perfection
Have the courage, wisdom, to continuously pursue and implement improvement opportunities
The 5 Principles of Lean
Principles of Lean
• Resolute focus on the customer by providing:– Right parts– Right time– Right quantities
…while reducing non-value added time in a team-based environment of continuous improvement
LEAN MANUFACTURING HOUSEGOAL :
• Continuously Reduce Cost• Highlight Problem Area• Build Quality Into Process• Produce JIT• Flexible Manufacturing
• Standardized Quality System
• Level Production Schedules• Level Production Processes• Level Manpower Requirements• Machine Reliability
• What Is Needed• When Needed• Amount Needed
• Pass No Defects To The Next Customer• Easy To Do It Right - Hard To Do It Wrong• Build Quality Into The Process
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Production System Philosophy
Lean Thinking
• What does “Value Added” and “Non-What does “Value Added” and “Non-Value Added” Mean?Value Added” Mean?
Well, lets ask ourselves the following:Well, lets ask ourselves the following: 1. What are our customers expecting from us…2. What do we expect when we are the customer…
Lean Thinking
A systematic approach to the elimination of Waste within the process…
…by minimizing non-value added activities while standardizing value-
added activities…
…through the use of such concepts as:
Cellular manufacturing, pull production to assembly lines, robust
processes, quick set-up techniques,
Work vs. WasteWork vs. Waste
Work• Adds value• Moves the process forward
Waste• Adds delay• Adds cost
Waste
1. Overproduction - producing product ahead of schedule.2. Waiting - workers or product waiting to be processed.3. Transport - the movement of materials from one location to
another.4. Over processing - as a result of poor tool or product design.5. Inventories - more material than the absolute minimum.6. Movement - unnecessary movement by the workers.7. Defects - scrap or rework.8. Untapped creativity, either forgotten or intentional, of the peoplepeople
in the workforce.
Eliminate Sources of Waste
Over-Production
Producing over customer requirements,
producing unnecessary materials, products.
Waste of Overproduction
Value to Customer?• Customer is not
ready to pay or may never pay for the work done.
• See the signs:• Stacks of Work in
Process• Old inventory
• To eliminate this type of waste– Establish a work flow sequence to
satisfy the downstream customer– Create workplace norms and
standards for each process– Create signal devices to prevent
early processing
Waiting
Time delays, idle time. (Non value-added time)
Waste in Waiting (Time)Value to Customer?
• Customer does not pay us for time when no work is being done.
See the signs:• Workflow stoppages.• Leaving the work
area to go get someone or something.
• To eliminate this type of waste– Make sure that equipment and supplies
are available.– Use Kanban to maintain the right level
of supplies in the work area.– Do maintenance and setup external to
process worktime.– Make sure resources are available for
quick approval or eliminate redundant approvals and signatures.
– Use man/machine charting to ensure optimization of operator’s time.
Transportation
Multiple, unnecessary and delay in handling.
Waste in Material MovementValue to Customer?
• Customer pays us to ship but pays us the same if we move it ten times back and forth across the warehouse or only once straight into the truck.
• Moving material is a IAC cost.
• To eliminate this type of waste– Make the distance over which
something is moved as short as possible.
– Eliminate temporary storage or staging locations.
See the signs:• Temporary stocking and staging locations• Material movement without any value added
step occurring in between
Over-Processing
Unnecessary processing steps or work elements, procedures.
(Non value-added work)
Waste in Processing
Value to Customer:• Customer will not pay
us to do work not included in his requirements.
• To eliminate this type of waste– Know customer requirements– Create workplace norms and
standards that consistently meet customer requirements
– Review processes and streamline or eliminate non value added steps whenever possible.
See the signs:• Repeating and verifying to make sure it is correct. • Making it better than required. Example..Customer
requires three wraps of tape but using four.
Inventory
Holding or purchasing unnecessary raw supplies, work-in-process and
finished goods.
Waste of Inventory
Value to Customer:• Customer is not ready
to pay or may never pay for the inventory.
See the signs:• Old or obsolete parts• Supplies that never got
used
• To eliminate this type of waste– Produce only enough to satisfy the
requirements of the customer– Standardize work locations and the
number of units per location (Kanban)
– Ensure that Work In Process is used before more units are created (Kanban)
– Use 5S to organize
Note: Extra inventory can be process or personal. People keep extra supplies as a safety net. You may be purchasing items that are hidden throughout the facility.
Extra inventory means you have more to manage. If you are looking for an item, you have to move extra inventory to find it.
Motion
Actions of people or equipment that do not add-value to the product.
Waste of Motion
Value to Customer:• Customer’s do not
pay us for movement and handling that do not add value.
• All motion should add value.
• To eliminate this type of waste– Flow work processes in a way that
reduces motion.– Arrange materials to be accessible at the
point of use.– Simplify standardized work sequence to
eliminate unnecessary movements– Apply ergonomics.
See the signs:• Lots of walking or reaching• Going to get things
Correction
Producing a part that is scrapped or requires rework.
Waste of CorrectionRework!!!!
Value to Customer:• Customers only pay
for product meeting their requirements.
• Even worse, if these defects escape, it greatly dissatisfies our customer.
• To eliminate this type of waste– Establish standard work procedures– Create and post job aids– Mistake Proof processes
See the signs:• Hold material• Scrap• Double or triple verification steps
Lean Implementation
Requires these basics…
• Document the process
• Understand the process
• Manage the process
• Improve the process
• Monitor the process
A Toyota view:A Toyota view:
“We get brilliant results from average people managing brilliant processes.
We observe that our competitors often get average (or worse) results from brilliant people managing broken processes.”
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