1 GBE-KPO-2-001-00 Lean Basics 1 Rev.04 Design. Build. Ship. Service. Lean Training Lean Basics 1 Lean Basics 1 Business Excellence
1GBE-KPO-2-001-00 Lean Basics 1 Rev.04
Design. Build. Ship. Service.
Lean Training
Lean Basics 1Lean Basics 1
Business Excellence
2GBE-KPO-2-001-00 Lean Basics 1 Rev.04
APPROVALS NAME TITLE DEPT NAME DATE
Ganesh S Maniam Director Global Business Excellence
December 11, 2008
REVISION HISTORY
REVISION DESCRIPTION OF CHANGE ORIGINATOR RELEASE DATE 04 Document formatted as per DMS policy Chuah Khar Yee December 11, 2008
This document is proprietary and confidential property of Flextronics.
Document Title: Lean Basics 1
Document# GBE-KPO-2-001-00
Organization: Global Business Excellence
Revision: 04
Document Owner: Chuah Khar Yee
Effective Date: December 11, 2008
3GBE-KPO-2-001-00 Lean Basics 1 Rev.04
Contents Slide(s)
Table of Contents
Overview & Scope 3
Objectives 4
A Brief History of Lean 6
The Flextronics Lean Enterprise (FLE) 13
Waste Elimination 16
Value Stream Mapping (VSM) 29
5S & Visual Management 37
Super Market 55
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Overview & Scope
Lean Manufacturing is a generic process management philosophy derived
mostly from the Toyota Production System (TPS) but also from other sources.
It is renowned for its focus on reduction of ‘Seven Wastes' in order to improve
overall customer value. *
Toyota's achievement made "Lean" a hot topic in management science in the
first decade of the 21st century.
Lean Manufacturing can be defined as:
"A systematic approach to identifying and eliminating waste (non-value-added
activities) through continuous improvement by flowing the product at the pull of
the customer in pursuit of perfection."
Info Source: http://en.wikipedia.org/wiki/Lean_manufacturing*
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Objectives
Introduce Flextronics Lean Enterprise (FLE) and its elements
• Waste Elimination
• Value Stream Mapping (VSM)
• 5S & Visual Management
• Supermarket
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98% of Organisations that engage with Lean, Fail!!
WHY??? Lean is HARD!!!
Excerpts from the book “Lean Machines”
Lean ThinkingIt’s a people issue. That’s why it’s so hard. Getting people to change – to do things differently than they have done them –is really, really hard.
Art Byrne, CEO Wiremold
If a company is really maniacal about Lean it takes two to three years to go from kindergarten to first grade. That’s how tough it is.
Mark DeLuzio, architect of the Danaher Business System, Danaher
What Executives (Really) Need to Know
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A Brief History of Lean
Lean History TimelineThe Origins of Lean Manufacturing
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Father of Management
Father of Motion-Time Study
Father of Assembly Line Concept
Industry Quality Transformation
Birth of TPS/Lean Concepts
“The Machine That Changed The World”“Lean Thinking”
Info Source: http://www.strategosinc.com
Ohno Shingo
Lean History Timeline
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Lean Manufacturing has its’ root in the Toyota Production System (TPS). Several individuals at Toyota were instrumental in developing and systematizing TPS. Among the most important were:
Sakichi Toyoda (1867~1930)• Japan’s “King of Inventors.”• His concept of Jidoka (autonomation) is one of the foundational
principles of TPS.• First applied toToyoda Power Loom equipped with a new weft-breakage
automatic stopping device (developed in 1896).• World's first automatic loom with a non-stop shuttle-change motion, the
Type-G Toyoda Automatic Loom (developed in 1924).• Founded Toyota Motor Co. in 1937.For more info: http://en.wikipedia.org/wiki/Sakichi_Toyoda
Type G Automatic Loom Toyota Sedan Model AA
Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html
The Origins of Lean Manufacturing
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Kiichiro Toyoda (1894~1952)• Sakichi’s son. • The TPS has evolved through may years of trial and error to improve efficiency
based on the Just–in–Time (JIT) concepts developed by Kiichiro Toyoda, the founder (and second president) of Toyota Motor Corporation.
• Inherited Sakichi Toyoda philosophy, set out to realize his belief that “the ideal conditions for making things are created when machine, facilities and people work together to add value without generating any waste“.
• Conceived methodologies and techniques for eliminating waste between operations, between lines, between processes. The result was the so called JIT method.
• Drawing on his experience of introducing a flow production method using a chain conveyor into the assembly line of a textile plant (completed in 1927) with a monthly production capacity of 300 units.
• Introduced this method into the body production line at Toyota Motor Co., Ltd.'s Koromo Plant (present day Honsha Plant), completed in 1938.
• He studied Ford’s production system and adapted it to the smaller, more diverse Japanese market.
For more info: http://en.wikipedia.org/wiki/Kiichiro_Toyoda
Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html
The Origins of Lean Manufacturing
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The Origins of Lean Manufacturing
Eiji Toyoda (1913 ~)• By ensuring thorough implementation of Jidoka and the Just-in-Time method,
Eiji Toyoda increased workers' productivity in adding value and realized the Toyota Production System, which enabled Toyota to compete head-on with companies in Europe and the U.S.
For more info: http://en.wikipedia.org/wiki/Eiji_Toyoda
Taiichi Ohno (1912~1990)• With strong backing from Eiji Toyoda, Taiichi Ohno helped establish the
Toyota Production System, and built the foundation for the Toyota spirit of "making things" by, for example, creating the basic framework for the Just-in-Time method.
• Known as the “Architect of TPS.”• Systematized Jidoka, JIT, standardized work and kaizen into what we now
know as TPS. • Father of the supermarket system of inventory control.For more info: http://www.strategosinc.com/taiichi_ohno.htm
http://en.wikipedia.org/wiki/Taiichi_Ohno
Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html
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The Origins of Lean Manufacturing
Dr. Shigeo Shingo (1909~1990)• In 1930, after graduation from Yamanashi Technical College, he went to
work for the Taipei Railway Company.• In 1943, he was transferred to the Amano Manufacturing Plant in
Yokohama.• In 1945 and 1946 and also began a long association with the Japanese
Management Association (JMA).• In 1955, he began another long association, this time with Toyota. In
addition to his many consulting assignments in other industries. It is during this period that he first started work on setups by doubling the output of an engine bed planer at Mitsubishi's shipyard.
• In 1959, he left JMA to start his own consulting company. During the early 1960's, as an outgrowth of work with Matsushita, he developed his concepts of "Mistake-Proofing“ (Poka–Yoke).
• In 1969, SMED was originated when he cut the setup time on a 1000 ton press at Toyota from 4.0 hours to 3.0 minutes.
• During the 1970's, he traveled in Europe and North America on many lectures, visits and assignments. He began to see Toyota's efforts as an integrated system and began to assist several U.S. and European firms in implementation.
Info Source: http://www.strategosinc.com/shigeo_shingo.htm
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• By practicing the philosophies of “daily improvements" and “good thinking, good products" the TPS has evolved into a world-renowned production system. Furthermore, all Toyota production divisions are making improvements to the TPS day and night to ensure its continued evolution.
• At least as important as the tools that these founders discovered, was the realization by top Toyota management that for the system to work, workers must be continuously trained, motivated, and properly supported at all times.
Info Source: http://www.toyota.co.jp/en/vision/production_system/origin.html
The Origins of Lean Manufacturing
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The Flextronics Lean Enterprise (FLE)
The Flextronics Lean Enterprise (FLE)Sequential Applications of Tools
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Stop @ Abnormality
Takt Time Production
Single Piece Flow
Pull Production
Autonomation
SequencingLevel Loading
JidokaJIT
Heijunka
FLE
VSM, 5S, Supermarkets
Adding Value and Eliminating Waste
The Flextronics Lean Enterprise (FLE)
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Value Stream is the FoundationValue Stream is the Foundation
6. Prod Prep Process (3P)5. JITTakt TimeSingle Piece FlowPull ProductionFlowKanban
Takt TimeStandard WIPOp Sequence
Standard work
7. JidokaStop at AbnormalitiesHuman Intelligence into machines
1. 5SSeiri - SortSeiton - Set In OrderSeiso – Shine / SweepSeikets - StandardizeShitsuke - Sustain
2. Material PresentationReceivingBreak BulkSupermarketKitting
4. HeijunkaLevel LoadingSequencing
Time
Degreeof
Change+
Impact
3. VSMCurrent StateFuture State
Sequential Application of Tools
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Seven Wastes (TIMWOOD)
Waste Elimination
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Waste Exists In Every Process…Eliminate It!Waste Exists In Every Process…Eliminate It!
“Begin by learning the FUNDAMENTALS. If you learn the wrong ideasabout fundamental matters, you are likely to continue to make mistakes
later, no matter how enthusiastic you are about implementing improvements.”
The Seven Types of Waste…
• Transportation• Inventory• Motion• Waiting• Overproduction• Over Processing• Defects
TIMWOOD
Understanding & Eliminating Waste
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ValueCorrectly Specify Value of Product/Service with
Customer in mind
Value StreamIdentify the wastes in the Value
Stream and remove all the wastes
FlowMake the Product and Value Flow Smoothly
PullProduce only to the Pull of Customer Demand
Pursue Perfection
Wastes Elimination as an Ongoing Process towards Perfection
Info Source: http://www.lean.org/WhatsLean/Principles.cfmThe Universal Lean Principle
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Eliminate Non-Value Added ActivityEliminate Non-Value Added Activity
Defining Value
Time
After
Before
Value Added Work
After
Before
Non Value Added Work
Time
Value Added ActivitySomething customers are willing to pay for…- AND -changes the form, fit, or function of materials or information …- AND -Is being done right the first time.
Non -Value Added ActivityAll other actions and unwanted features are by definition…WASTEadding no value to the customer….simply raise costs in our business!
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“It”…Either Adds Value or Does Not“It”…Either Adds Value or Does Not
Understanding & Eliminating Waste
Observe that 2 Things are ALWAYS happeningconcurrently. . . . . .
Things that should be done
Things that should not be done WASTE
WORK
Time
After
Before
Value Added Work
After
Before
Non Value Added Work
Time
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This is what you are striving for…
• Requires Equipment• Increases Handling Damage• Necessary … Must Minimize
End FinishWeldEnd FinishWeldOrbital Weld
Hydro TestMarkMech.Clean
TorchBraze
Mech.Clean
Flex
End FinishWeldEnd FinishWeldOrbital Weld
Hydro TestMarkMech.Clean
TorchBraze
Mech.Clean
Flex
Machines Next to Each Other …Transport Time MinimizedMachines Next to Each Other …Transport Time Minimized
Waste #1 - Transportation
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Waste Asks For More WasteWaste Asks For More Waste
• Ties Up Working Capital • Takes Valuable Space • Risk of Obsolescence
Inventory levels
High spoilage
Poor product quality
Slow running
Frequent breakdowns
Long changeovers
Unplanned stoppages
Waste #2 - Inventory
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• Ergonomic Concerns • Labor Efficiency • Wasted Cycle Time
climbingclimbingclimbingclimbing
sittingsitting searching
???
searchingturning aroundturning around walkingwalking
choosing bendingbending lying downlying down
Before After
Treat Operators as Surgeons…Everything Within ReachTreat Operators as Surgeons…Everything Within Reach
Waste #3 - Motion
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When Inventory Waits Your Customer WaitsWhen Inventory Waits Your Customer Waits
• Increases Lead Time• Increases Work in Process• Slows Response to Customer
Waste #4 - Waiting
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Do Not Produce What the Customer Does Not NeedDo Not Produce What the Customer Does Not Need
Waste #5 – Overproduction
• Ties Up Working Capital• Takes Up Floor Space• Hides Process Problems
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Match Physical Movement With Systemic Transaction…Strive for 1:1 RatioMatch Physical Movement With Systemic Transaction…Strive for 1:1 Ratio
• Create Delay• Increase Opportunity for More Defects• Do not Add Value By Definition
Manual Entry of Information
Waste #6 – Overprocessing
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Reworking Defects Is Wasteful…Sending Them to Customers is OutrageousReworking Defects Is Wasteful…Sending Them to Customers is Outrageous
• Upset Customers• Consume Resources• Choke Flow
Waste #7 - Defects
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Skills not UtilizedSkills not Utilized
(7 Wastes) + 1 Waste – Skills (Unutilized Skills)
• Unutilized resources of skill/knowledge from the shop floor worker
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Value Stream Mapping (VSM)
Current State MapFuture State Map
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See the Whole Process from Start to FinishSee the Whole Process from Start to Finish
What is the Value Stream?
TOTAL Value Stream
Flextronics :Suppliers
Flextronics Ops : Plant/Service Repair Shop
Flextronics : Customer Customer
Supplier
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Process LevelProcess Level
Single Plant(door to door)Single Plant
(door to door)
Multiple PlantsMultiple Plants
Across CompaniesAcross Companies
Can Be Used at Any Level in the BusinessCan Be Used at Any Level in the Business
Levels of Mapping
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• Understand current state - Big picture point of view
• Shows the ratio of Non-Value Added to Value Added Time
• Exposes sources of waste - not just waste
• Shows linkage between the seven types of flow
Forms the Blueprint for a Lean Implementation PlanForms the Blueprint for a Lean Implementation Plan
Why do Value Stream Mapping?
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How do we start?
Product FamilyProduct Family
Implementation Plan
Implementation Plan
Current StateDrawing
Current StateDrawing
Future StateDrawing
Future StateDrawing
2
3
4
1
Note: VE is Value Enabler, e.g. ISO, OSHA, ANSI/ESD S20.20, MSC, RoHS, etc
Identify the Value Stream for every major product family / program Concept to launch - Order to delivery
Develop metrics & determine goals … How success will be measured?Develop actions and drive toward future state
Map the current state - Identify all the actions that don’t create value (VA/NVA/VE*)
Develop and map concepts for the future state as a management team & communicate your vision to your team
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The Problems as well as the Answers Lie Within the FlowThe Problems as well as the Answers Lie Within the Flow
What will be seen?
The 7 Types of ‘Flow’
1. Material – Raw2. Material – WIP3. Material – Finished Goods4. Information
• Act on material • Load into machine• Move it from 1 bucket to another
5. People• Standard Work• Takt Time
6. Equipment • Carts• Conveyors• Andons• Racks• TPM
7. Engineering / Tools• Quality• Tooling• Cutting tools• Programs
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• Start at the customer and work backwards• Walk the actual flows• Don’t Map the Organization but the flow through it• Don’t be too detailed this is an overview• Use pencil not power point … quick and crude
Pretend you are the ‘product’ … And follow the ‘product’ path flowsPretend you are the ‘product’ … And follow the ‘product’ path flows
Guidelines for Mapping
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Example of Current State VSM
: Supplier
: Manual Transport
: Fork lift
: Store
: Picking cart
: Truck
: MaterialFlow(Blue)
: ProcessFlow(Black)
: Inventory: Receipts : PC
: Process : Elevator EV: Information
Flow(Black)MLT : Manufacturing Lead TimePT: Processing Time
SMT-WAVEYield: 90%
Firm Weekly
Loading Plan (Weekly, Daily)
Suppliers
CoatingYield: 90%
FVMIYield: 90%
FQAYield: 90%
1 day
7200 secProcessing Time
MLT Total:MLT: 5 DaysPT: 43200
ProductionControl
MaterialSpecialist
Program Administrator
MENLO
Customer
Customer
Forecast
DailyShipment
Plan
Forecast 3-mths Firm Monthly
Supplier
ICTYield: 96%
Suppliers
PackingYield: 90%
Hub
1 day
7200 sec
1 day
7200 sec
1 day
7200 sec
1 day
7200 sec 7200 sec
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Sort Set in Order Shine Standardize Sustain
5S’s & Visual Management
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Sort (Seiri) …
Set in Order (Seiton) …
Shine/Sweep (Seiso) …
Standardize (Seiketsu) …
Sustain (Shitsuke) …
Proper Arrangement
Simplify/Clean up
Cleanliness
Orderliness
Self Discipline
Introduction to the 5S’
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• Establish standards to detect an abnormality
• Create and maintain an organized, clean and safe work area
• Conditioning discipline for Action Workout
What is the 5S?
Definition
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When In Doubt . . . Throw It OutWhen In Doubt . . . Throw It Out
Step 1 : Sort (Seiri)
Eliminate all unnecessary items …Items not needed now for production
What do we need? What can we remove?
PURPOSE
ASK YOURSELF
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Everything you REALLY Need at your FingertipsEverything you REALLY Need at your Fingertips
Step 2 : Set in Order (Seiton)
Organize and arrange what you need
What do we need to use 1st, 2nd … Where should it be?
PURPOSE
ASK YOURSELF
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Be able to quickly detect an abnormalityBe able to quickly detect an abnormality
Step 3 : Shine (Seiso)
Identify abnormalities by visually sweeping the area
Does this belong here? Is it needed right now?
PURPOSE
ASK YOURSELF
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Anyone should be able to easily understand proper arrangement and abnormalitiesAnyone should be able to easily understand proper arrangement and abnormalities
Step 4 : Standardize (Seiketsu)
Arrange items so that they can be found quickly by anybody
Does everything has a place? Is everything in its place?
PURPOSE
ASK YOURSELF
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Step 5 : Sustain (Shitsuke)
Steps of Implementation
Area team leadersidentified andresponsibilitiesdocumented.
LevelAnything not required for immediate production is removed from the line.
Immediate actions taken against abnormalities; Shop kept orderly on a continuous basis.
Non-utilized cabinets,benches, tables, etc.identified andremoved from area.
Unneeded materialsremoved from plant; not stored away.
Needed and unneededmaterials have beenidentified andseparated.
Needed and unneeded materials are mixed throughout the work area.
Daily cleanliness inspection ofequipment, toolsand supplies.
Visual controls established and well marked for work area.
Work areas unkept; Novisual controls in place.Information is “hidden”in the computer system.
Level4
Level3
Level2
Level1
Immediate actions takenagainst assemblyabnormalities.
Area’s individuals take ownership; standards are followed.
Daily checks performedby area leaders;standards are regularlyreviewed and updated.
Periodic checks are performed by area leaders.
No area checks areperformed; standards are not established.
Self DisciplineSort Sweep5S’s
Establish & follow standard procedures.Theyare clear, up-to-date, anddisplayed in work areas.
Material layout, assembly,& communications aredocumented, standardized& followed rigorously.
Labeling of items withrequired quantities arestandardized.
Procedures aredocumented, but notconsistently followed.
No procedures in place.
StandardizeAll items can be easily retrieved by anyone;they are clearly marked.
Standardized item quantities are established;Shadow boards are utilized.
Needed items have dedicated locations which are clearly labeled.
Needed items havebeen safely storedand organized.
Items are placedrandomly throughoutthe work place.
Simplify
5
Leve
l Of I
mpr
ovem
ent
Leadership responsibility to sustain the first 4S’s
Are the actions clearly defined? Clear ownership?
PURPOSE
ASK YOURSELF
Easy To Measure … Stay FocusedEasy To Measure … Stay Focused
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(5S) +1 : Safety
• Safety must be in everyone mind all time.• Safety is the 1st item when you are doing any kind of Improvement • Safety cannot be compromised with all the other 5S’s activities.• Zero tolerance to any industry
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• Get everyone involved.
• Integrate 5S Principles into daily work requirements.
• Communicate need for 5S, roles of all participants, how it is implemented.
• Be consistent in following 5S Principles in all areas
• Business Team Leader involvement is a must!
• Follow through -finish what is started - 5S takes effort and persistence.
• Link 5S activity with all other Action Workout initiatives.
Keys to 5S’s Success
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The 5The 5SS is the foundation for is the foundation for Flextronics Lean Enterprise.Flextronics Lean Enterprise.
In order to In order to visually detectvisually detectany any abnormal conditionabnormal condition, ,
we need to establish we need to establish Visual Management & Standards.Visual Management & Standards.
The Foundation
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• Management at all levels must be committed to establishing and maintaining the 5S process.
• Before people leave work for the day, everyone must ensure that the cell meets 5S principles.
• The use of checklist for monitoring adherence, quantifying results of cell inspections and prominent display of each area’s results are tools which management can use to help sustain the process.
• Management must lead by example.
• Walk the Talk!
5S’s Leadership Responsibility
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Don’t “Manage” a Standard … Detect the AbnormalityDon’t “Manage” a Standard … Detect the Abnormality
• 5 cowboys to drive 1000 cattle
• Should take one look and understand the situation
• Clearly differentiate between what is “Normal” and “Abnormal”
• Detect what is “Abnormal”
Look here …
Not here …
Create Standards….. Detect Abnormalities
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Create Standards….. Detect Abnormalities
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Very Easy to Detect Abnormalities !Very Easy to Detect Abnormalities !
Create Standards….. Detect Abnormalities
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Which Situation is Easier to Manage ?Which Situation is Easier to Manage ?
Create Standards….. Detect Abnormalities
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Create Standards….. Detect Abnormalities
Horizontal Limit
All small partshave defined place
Vertical Limit
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Create Standards….. Detect Abnormalities
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Visual Management FIFO
Supermarket
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Supermarket is a stocking location for raw material/WIP/FG with the following characteristics:
• Enables Visual Management.
• Right size to support level loaded plan.
• FIFO Material Flow.
• Controlled Entry/ Exit of Parts “locked” (as required…initially)
• 5 No's - No thinking, No searching, No counting, No checking, No waiting
What do I look for in a Supermarket?What do I look for in a Supermarket?
Supermarket
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Example of Supermarket
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Example of Supermarket
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Example of Supermarket
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Example of Supermarket
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4
2
InIn
OutOut
Example of Supermarket
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1. Set break bulk area for Supermarket2. Right Size of Supermarket
• Supermarket physical set-up should meet “Supermarket Evaluation Checklist”(Refer to page 64) and the score should be 100%
• Start with “Right size of bin” which is based on consumption rate and condition required by customer (production line)
• Min-Max and Re Order Point (ROP) shall be clearly defined and visually trigger• Replenishment should be based on consumption pull
3. Right Size of Inventory• Utilize the “Inventory Tracking Sheet” (refer page 68)• Calculate right size of Inventory – Ideal Inventory (Min-Max / RoP)• Isolate and Visualize excess inventory
4. Right Purchase Method• Use Kanban as delivery control• Trigger PO and delivery signal to supplier only if kanban issued
Steps to Set-up Supermarket
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1. Height Requirements: Rack height is limited to human height or reachable with eliminated motion climbing, searching and sorting
2. Address: Location, Part Number, ROP (Min/Max) 3. FIFO: Demonstrate an auto gravity pull gradient design FIFO mechanism 4. Pull Material: Shop floor providing Sequential pull systems. Supermarket issuing only what is
requested to replenish Production Material usage5. Visual Management: Enable material order personal react to inventory level6. No Waiting Transaction: All activities between raw material receiving and build on board
have been evaluated; eliminate non-value-creating waste such as waiting7. Return Flow: Material return to supermarket flow as pre-define processes, Excess material
return to warehouse is under standard work control. An Integrated flow to abolish over-process of re-verification/inspection, waiting along the returning process
8. Water Strider: Identify a group of operators work as Water Strider. Separated the job function from normal assembly line operator
9. Work Standard and Combination Sheet: Define the work instructions and work route for all Water-Strider
10. 5 No's - No thinking, No searching, No counting, No checking, No waiting
How to Track Supermarket Implementation?
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Supermarket Evaluation Check-list
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Self Assessment for Supermarket
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Inventory Tracking Sheet
Inventory Tracking Sheet
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Discussed in “Lean Thinking” by James Womack
Further developed and documented by theLean Enterprise Institute of Brookline, Ma. as “Learning to See”
Find additional information at: www.Lean.Org
Where to Learn More
69
Design. Build. Ship. Service.Thank you