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Principles for Implementing Lean Manufacturing Mass Production System Mass Production System * Example: Ford * Example: Ford * Status as of 1950 * Status as of 1950 8000/day 8000/day Low-skilled Low-skilled immigrant labor immigrant labor Vertical Vertical integration integration Abundant Abundant investment capital investment capital * High volume, low mix * High volume, low mix
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Page 1: Lean Mfg

Principles for Implementing Lean Manufacturing

Mass Production SystemMass Production System

* Example: Ford * Example: Ford

* Status as of 1950 * Status as of 1950 8000/day 8000/day Low-skilled immigrant Low-skilled immigrant laborlabor Vertical integration Vertical integration Abundant investment Abundant investment capitalcapital

* High volume, low mix * High volume, low mix

* Capital, Quantity, * Capital, Quantity, RepeatabilityRepeatability

Page 2: Lean Mfg

Principles for Implementing Lean Manufacturing

Lean Enterprise SystemLean Enterprise System

* Example: Toyota * Example: Toyota

* Status as of 1950 * Status as of 1950 2500/year 2500/year Diversified market Diversified market Limited capital Limited capital Dedicated, high skilled Dedicated, high skilled laborlabor

* Low volume, high mix * Low volume, high mix

* People, Quality, Flexibility * People, Quality, Flexibility

Page 3: Lean Mfg

Principles for Implementing Lean Manufacturing

Definition of LeanDefinition of Lean

““A A systematic systematic approach to approach to identifyingidentifying and and eliminating wasteeliminating waste (non-value-added activities) in a company’s operations. (non-value-added activities) in a company’s operations.

Lean emphasizes Lean emphasizes flowingflowing the product at the the product at the pullpull of the of the customer.”customer.”

Lean is implemented through both rapid andLean is implemented through both rapid and continuous continuous improvement.improvement.

Kaizen- “kai’ means “little” or “ongoing”. “Zen” means “for the better” or “good.” Small continuous improvements on everyone’s part leads to world class manufacturing.

Page 4: Lean Mfg

Principles for Implementing Lean Manufacturing

Concept of Value-Added Concept of Value-Added ActivityActivity

Value-Added Time

•Any activity that increases the market form or function of the product or service. (These are things the customer is willing to pay for.)

Non-Value Added Time (Waste or muda)

•Any activity or use of resources that does not add market form or function or is not necessary. (These activities should be reduced, integrated, simplified, or eliminated.)

Page 5: Lean Mfg

Principles for Implementing Lean Manufacturing

Common Manufacturing Terms:Common Manufacturing Terms:

BatchesBatches Order of OperationsOrder of Operations

InventoryInventory Work in Progress Work in Progress (WIP)(WIP)

FixturingFixturing Set-Up TimeSet-Up Time

InspectionInspection Plant LayoutPlant Layout

Manufacturing Lead Time (MLT)Manufacturing Lead Time (MLT)

Page 6: Lean Mfg

Principles for Implementing Lean Manufacturing

Process Layout – small shopProcess Layout – small shop

Page 7: Lean Mfg

Principles for Implementing Lean Manufacturing

Process Layout - factoryProcess Layout - factory

Raw Stock QC Rec Ship

Shear

Screw Machin

e

QCStam

p

AssemblyBrak

eMill

Lathe

Weld FinishGrind Parts Stock

Drill

Page 8: Lean Mfg

Product LayoutProduct Layout

Principles for Implementing Lean Manufacturing

•Products typically ride along on conveyor belts or chains.

•This layout may have several parallel lines of processes combining at one node.

•This arrangement is relatively inflexible compared to a Process Layout.

Page 9: Lean Mfg

Principles for Implementing Lean Manufacturing

Fixed Position LayoutFixed Position Layout

In this layout, the product’s position is fixed due to its size or weights such as a jetliner. Equipment, components, and labor is brought to the product for the operations. When the product is complete , it is then moved.

Page 10: Lean Mfg

Principles for Implementing Lean Manufacturing

Cellular LayoutCellular Layout

Linking of manual and machine operations into the most efficient combination to maximize value-added content while minimizing waste.

Punch

Cut to sizeDe-burr

Sand

FormPackage

Page 11: Lean Mfg

Principles for Implementing Lean Manufacturing

Lean = Eliminating Waste

• Complexity• Labor• Overproduction• Space• Energy• Defects

• Materials• Idle Materials• Transportation• Time

Non-Value-Added: Hold all waste in a “CLOSED MITT”Value-Added

Typically 95% of all lead time is non-value-added

Page 12: Lean Mfg

Principles for Implementing Lean Manufacturing

Lean Building BlocksLean Building Blocks

Quick Changeover

Standardized Work

Batch Reduction

Teams

Quality at Source

5S System Visual Plant Layout

POUS

Cellular/FlowPull/Kanban TPM

ValueStreamMapping

KAIZEN