Lean Manufacturing: Understanding The Wastes & Time and Motion Study

Lean Manufacturing
Understanding the Wastes &

Time and motion study
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Fourth Edition
August 2014
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3
Agenda
• Setting The Stage – Why Lean ?
• Value and Waste
• Brief overview of lean principles :

– Takt time
– MOST
– Operator Balance charts / Line balancing
• Work Element identification and classification
• Time Study- Principles and practices
• Practical exercises

4
Setting the Stage
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5
What is Lean?
• Lean is About How We Think
• It is a Different Way of Thinking

6
The Lean Philosophy
Lean Production occurs when each operation

in the value stream produces exactly what
the next operation needs, exactly when they
need it, with minimum waste!

7
The History of Lean
1960s-80s Toyota implements the Toyota Production

System
1991 The Machine That Changed the World
1990’s One Week Workshop
Kaizen Blitz
Lean Thinking – Just Do It
1998 Value Stream Mapping
Circa 2000 How Does the Enterprise Benefit?
2003 Extended Value Stream
Today Breakaway Lean™

8
Breakaway Lean™ – What is It?
50, 50, 20
• 50% increase in throughput
• 50% reduction in Inventory
• 20% reduction in operating cost
• Get there in 6 months

9
Five Critical Concepts of Lean
All activities in Lean are driven by:

1. Specified Value
2. Identification of the Value Stream
3. Making the Value “Flow”
4. “Pull” to Customer Demand
5. Pursue Perfection
– “Lean Thinking,” Dr. Womack & Dr. Jones

10
Specify Value
• The value of the product or service is defined solely by the

end-user customer. The product or service must meet the
end-user customer’s needs in terms of specific time, quality
and cost.
• Our primary responsibility is therefore to ensure our

organization creates value for the customer.
• Accurate definition of value is the first step in Lean Thinking.

11
Identify the Value Stream
• Value stream defines all the activities required to deliver a

product or service to an end-user customer.
• Value stream could involve multiple processes.
• All process steps have the potential to:

– Add value.
– Do not add value and can be avoided.
– Do not add value but cannot be avoided.

12
Make the Value “Flow”
• Once the value has been identified, flow the

value-added activities together with no delays and no
interruptions – continuously.
• Things work a lot better when the focus is on products and

its needs, rather than the organization, equipment, etc.
• Departmentalized thinking is sub-optimal at best.
• The work must be redefined in terms of contribution to

value creation.

13
“Pull” to Customer Demand
• The value-producing processes respond ONLY to the

demands (the pull) of the customer.

14
Pursue Perfection
• Continuous improvement to sustain the first four critical

concepts:
– Specify value
– Identify the value stream
– Make value flow
– Pull to customer demand
• The first four concepts reinforce each other and as the flow
velocity increases, it exposes more waste in the value
stream.

15
Value and Waste
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The Seven Wastes
Examples
Inefficient layouts
Motion Lack of proximity of machines
Off-line resources
Operator waiting time
People Long setups and lead times
Idle Time
Making more than required to fulfill
a customer order
Overproduction Unused reports or schedules
Rework, Multiple reviews
Perform testing to materials that
were already tested
Operation
Product that doesn’t meet
Process specification; rejected material
Air shipments
Defects
Dissatisfied customers
Material not being used
Inventory Product in the warehouse
Pending reports
Reports created from multiple

Product Transportation systems; Extra handling
Shipping to the Distribution Center
instead of direct to customer
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1st Waste: Motion and Transportation
Moving material and employing individuals to transport

material does not add value to a product – it simply adds
cost
• Cost without value is waste
• Excessive motion (personnel) and

transportation (material/reports) implies:
– Complex material flow paths
– Wasted floor space
– Unnecessary material handling
– Potential damage to products

18
Reserved
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2nd Waste: Waiting/Idle Time
Waiting time is the time an operator cannot be productive or
the time that a product is in queue
• Implies under-utilization and poor control of
workflow/balancing
• Inventory accumulates at process stages
• Customer Service levels adversely affected
• Low resource utilization
• Waiting or batching is waste since it increases
cycle time to the product/process.
• Waiting/queuing results in:
– Long lead times
– Under-utilization of resources
– Poor control of workflow/balancing
19
Reserved
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3rd Waste: Overproduction
The production of goods in excess of absolute customer

requirements
Two areas of concern:
1. Production runs above requirements
“We kept the machine running
because production was going well”
2. Large batch size
– Economic order quantities
– Machine utilization measures
– Running campaigns
– Multiple reports

20
Reserved
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3rd Waste: Overproduction
Paperwork Long cycle time

waste Extra material handling
Problems obscured Poor space utilization

Over production
Overhead charges Inventory wastes
Defect More machines which

wastes are not really needed
Overproduction leads to other wastes and is, therefore, possibly

the worst of the seven wastes.

21
Reserved
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4th Waste: Overprocessing
• Target: Add value to the product with the least effort.

– By reducing processing time, we ultimately commit less resources to
achieve the same customer satisfaction.
• Result:
– Reduced lead time (reduced cycle time)
– Improved customer response
– Flexibility
• Indirect Benefits:
– Greater output / productivity
– Reduced defects
22
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5th Waste: Defects
• Defects have to be rectified
• Rectification costs money:
– Time
– Effort
– Materials
• Defects do not encourage customer satisfaction
• Defects in the field will lose customers
• What to look for:
– Rework
– Scrap Rates
– Process Metrics
– Errors in reports
– Data entry errors
– Claims
23
Reserved
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6th Waste: Inventory
• Inventory refers to raw materials, WIP, and finished goods:

– Is a liability – money could be invested more usefully
– Can cover up problems that should be fixed
– Results in higher defects and obsolescence
– Does not help to satisfy customers
– Causes longer cycle times
– Tracking and storage costs are wasteful
– Supports process inefficiencies
• Analyzing site operations for excess inventory:
– Long lead times
– High storage levels
– Work in progress exceeds inventory needed due to process and
demand variability
– “Stuff” everywhere
Copyright © 2015 OMNEX Inc. All Rights Reserved 24

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7th Waste: Transportation
• Transportation is the movement of material in and out of

storage locations.
Stock Stock Stock Stock Stock
Receive Move Work Move Work Work Deliver
• Excessive transportation of material creates:

– Unnecessary material handling
– Potential damage to products
Aim to reduce transportation inefficiencies

25
Reserved
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3 Wastes
• Muda - Waste from

unnecessary operations
• Mura - Uneven operations
• Muri - Overburden
operations

26
Reserved
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What is Muri & Mura ?
12 TONS
X 3 = NO 3M’s
1 ton
X 6 = MUDA
(waste)
X 2 = MURI
(over burden)
Capacity MURA
: 4tons
(uneve
nness)
Achieving such a balance everywhere in the company

is one of the primary aims
27
Approach to Waste Elimination
• Understand the difference between ‘Value Added’ and Waste.

• Go and observe workplace.
• Identify operator, information and material activity.
• Look for waste hidden in the activity.
• Categorize the waste observed.
• Use a structured approach to eliminate the waste.
• Improvements based on fact

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Defining value
• 80% of the work that goes on in any organization is adding no
value to your customers!
• A key concept is to understand what value is and then to eliminate

completely (or at least minimize) all non-value added activity.
Value Added, 5% Business Value

Added, 12%
Non Value Added, 83%

29
Value added
Value added has three dimensions:
o The activity changes the product or service towards something

that the customer wants
o It is done right first time
o The customer would be willing to pay for it
Clearly, the concept of a paying customer may not be relevant to all

industries/business sectors. What may be more appropriate in
those is to keep focused on the concept of doing things right first
time whilst eliminating or at least minimizing the non-value added
tasks. What is left will be the value added work.
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Non-value added
Activities that do not add value to the process are called non-value
added activities. These activities :
o Do not help create conformance to the customer’s specifications

o Are something for which the customer would be unwilling to pay for
Non-value added activities may be :
Eliminated
Reduced
Simplified

31
Business value added

o Activities required by law, statute or contract.
Examples include Health and Safety, Data Protection.
o Activities required to keep the organization running.

For example recruitment, vehicle maintenance, training.

32
Exercise
Mark each activity for value added and non-value added activities :
Entering orders Processing customer deposits

Waiting for parts Testing
Shipping to customer Copying reports
Moving WIP Counting parts
Obtaining multiple approvals Fueling delivery trucks
Recording Preparing engineering drgs
Selling concert ticket Assembling product
Tracking WIP Ordering raw material
Examining patients Filing insurance claims
Reworking Inspection

33
Ideas to Eliminate Waste
Improvement Steps:
• Eliminate NVA activities
• Minimize motions/travel time/reaching
– Organize work to minimize distance traveled
• Simplify tasks
• Organize needed references, tools, and inputs
• Minimize redundant inspection/verification
• Organize around outcomes to avoid reformatting (work
should meet downstream need)

34
Standardization
• Standardization is the process by which continual

improvement occurs.
• Continual improvement through standardization requires:

– An agreed upon definition of the outcomes (results) expected.
– An agreed upon definition of the best methods for achieving the
expected outcomes.
– The discipline to adhere to these agreed upon methods and results.
– An on-going system for continually evaluating and improving the
methods to achieve ever better results.

35
How to identify the Wastes?
¾ Everything start with Implementation of 5 -S .

This will greatly help in distinguishing the waste from the
saleable job.
¾ Visual study
¾ Time & motion study

36
Brief overview of Lean Principles
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Takt time
The demand rate of production, the rate at which we sell our

product or service and therefore represents the pace at which the
product should be produced to avoid the most significant waste
— overproduction.
Takt is a German musical term which refers to the pace, or
drumbeat of a musical score. The concept of takt keeps our
activities on pace much as the metronome keeps the musician on
the beat.
Since takt time is defined by the customer, it becomes a very

important number in a lean environment and drives all floor
shop decisions.

38
Takt time
• Only 2 variables are used to calculate Takt time: Available Time & Customer
Demand (schedule):
• Available time is total shift time minus meal and scheduled break times
• The question that needs to be answered before you layout your cell is:
• Can your existing machines perform at this pace?
• To answer this question you must determine the effective cycle time of each
machine.

39
Takt time
Takt sets the pace of production
- If the Cell Takt Time is too fast, less than 10 seconds,

operators can experience greater stress and fatigue. Better to
add additional cells with fewer people in each (if capital costs
allow).
- If Cell Takt Time is too long, longer than 120 seconds, the
increased number of work elements per operator can lead to
errors and defects. Better to add additional products to the
cell (if machine cycle times and equipment flexibility allows).

40
Adjusting the TAKT Time
• A two-shift Cell with a Takt of 120 seconds could be run on

one shift with a Takt of 60 seconds.
• A cell with a Takt of 10 seconds could be made into two cells
each with a Takt of 20 seconds.

41
MOST
Maynard Operation Sequence Technique (MOST) is a predetermined
motion time system that is used primarily in industrial settings to set
the standard time in which a worker should perform a task.
To calculate this, a task is broken down into individual motion

elements, and each is assigned a numerical time value in units
known as time measurement units, or TMUs, where 100,000 TMUs is
equivalent to 1 hour.
All the motion element times are then added together and
any allowances are added, and the result is the standard time.

42
Why MOST ?
• UniversalApproach
• Fast to Apply
• Adequate Accuracy
• Easy to Understand and Learn
• Minimum of Paperwork
• Multilevel System
• Consistent Results
• Encourages Method Development and Improvement
• Derive Activity Timings in Advance
• No Rating System as required in Time Study

43
Takt time

44
TAKT Time Example
Net Available Operating Time

• Time per shift 480´ (minutes)
• Breaks (2 @ 10´) - 20´
• Clean-up - 20’
• Lunch - 30’
• NAOT/shift 410´
Customer Requirements
• Monthly 26,000 units/month
• No. Working Days 20 days/month
• CR/Day 1,300 units/day
TAKT Time
• 410’ x 60” x 3 shifts (73,800) divided by 1,300
• 57.769 seconds per part or 57"

45
Cycle time
Cycle time is the total time from the beginning to the end of your
process, as defined by you and your customer.
Cycle time includes process time, during which a unit is acted

upon to bring it closer to an output, and delay time, during which
a unit of work is spent waiting to take the next action.
Cycle time = Operating time per day

Desired output rate
The minimum cycle time is equal to the longest task time and the
maximum cycle time is equal to the sum of the task times.

46
Cycle time
Example : Work required to fabricate a certain product is divided
into five elemental tasks, with the task times and precedence
relationships as shown in the following diagram.
0.1 min 0.7 min 1.0 min 0.5 min 0.2 min
The minimum cycle time is equal to the longest task time

i.e. 1.0 min
and the maximum cycle time is equal to the sum of the task times
i.e. 2.5 min.

47
TAKT Time vs Cycle Time

• Cycle time is the rate at which products come off the end
of your process. Waste occurs whenever Cycle Time
varies from Takt Time.
• When you Cycle slower than Takt you will miss shipments;
or, you will have to schedule your cell for overtime work
to meet demand.
• When you Cycle faster than Takt you will have the
tendency to overproduce, creating waste. You may also be
using more operators than you really need.

48
Cycle Time and TAKT!
Missed
Shipments
Waste
Occurs
TAKT
30 Sec.
34 S. 20 S. 28 S. 24 S. 16 S. 18 S. 29 S. 29 S.
Operator Cycle Times Operator Cycle Times Operator Cycle Times
When you cycle slower than Takt

When you cycle faster than Takt
49
Operator Balance Charts

• Operator Balance Charts (OBC’s) are simple bar charts that
describe the total cycle time of work content for each
operator in the cell.
– These bar charts also include the Takt Time drawn in as a dotted line across
the graph.
• The OBC is a picture of the distribution of work among

operators in relation to takt time.
TAKT
60 Sec.
10 S 15 S 35 S 20 S
Shear Turret Brake Weld
50
Operator Balance Charts / Line balancing

51
Operator Balance Charts / Line balancing

52
Operator Balance Charts
Operator Cycle Times Operator Cycle Times

Before Paper Kaizen After Paper Kaizen
TAKT
60 Sec.
More
Waste
20 S 60 S 35 S 32 S 10 S 15 S 35 S 20 S
Shear Turret Brake Weld Shear Turret Brake Weld

53
Determine Min. number of workstations Needed
The minimum number of workstations needed to run a cell is determined

by
Sum of task times
cycle time
In the previous example,
Min. no. of workstation = 2.5 minutes per units

1 minute per unit per station
= 2.5 stations
Because 2.5 station is not feasibile, it is necessary to round up to three

stations.

54
Allocating the Work
Do you want this? Or, this?
TAKT
60 Sec.
37.5 S 37.5 S 60 S 15 S.
Operator Cycle Times Operator Cycle Times

55
Work Elements
Identification and classification
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Work Elements
• When you observe the work process closely you will notice
that each operator performs a series of discrete movements.
Those movements combine to make work elements.
– A work element is the smallest increment of work that could be performed by a
second operator.
– Thus, get one panel and place it in the fixture, would be a work element. Get
one panel would not.

57
Work Element Analysis
• Record all work elements in the order performed .

• Determine and record the time for each element
• Categorize each work element:
– Work
– Walk
– Wait
– Load
– Unload
– Out of Cycle
• Summarize the total time for each category
• Determine operation efficiency: the ratio of work time to
total cycle time

58
Work Element Analysis Format
Assembly # /Assembly Description/Station #

Type Observations (in sec) Time
Target
Work
Walk
Wait
Adjust
Load/Unload
Value
Reduction
Operator Work element Motion 1 2 3 4 5 6 7 8 9 10 Action Resp Target date

59
Time Study
Principles and Practices
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Cell Defined
A cell is a group of sequential operations organized so that
material is processed and transferred one-piece at-a-time
(continuous flow) or in very small batches (FIFO flow) that
are maintained throughout the sequence of operations.

61
Re-design the Work Process
• Study the Current Work Processes

• Perform a “Paper Kaizen”
• Determine Number of workstations Needed
• Use Operator Balance Charts to Re-distribute the Work

62
Study the Current Process
• At this stage in cell design, we want to focus on the details of

the actual work performed and immediately begin work to
eliminate obvious waste in the process through a Paper
Kaizen.
• Just as with our Value Stream Maps, we want to first define
the current state of the process but we also want to begin to
think about the future state of the process when we will
have continuous flow.

63
Process before redesign

64
Paper Kaizen All Operations
• The paper kaizen process is fairly simple, and it's an

important part of the improvement effort. Paper kaizen is a
process where those who have gathered the information
discussed earlier begin to improve the process. The paper
kaizen process looks at the classification of each work
element, removes the work elements classified as waste,
and determines which incidental work elements can be
reduced.
• After you have identified all of the essential work elements
and repeatable times, you will then be ready to construct
Operator Balance Charts for the cell.

65
Paper Kaizen Reduces NVA
• Note the large reductions in operator cycle times from

removing the non value-added work elements of walking
and waiting.
• The turret operation – when performed as a stand-alone

operation – has 45 seconds of operator wait time; in a cell
arrangement, that time can be used to perform value-adding
work.

66
Process after redesign

67
Design the Cell Layout
• There are three questions that must be answered when

designing your cells:
– Can your existing equipment meet Takt?
– What is the ideal equipment layout for Continuous Flow of material through
the Cell?
– How will materials be delivered and presented to the operators?

68
Guidelines for Cell Layout
• Design the layout so that one operator could complete all

operations as efficiently as possible.
– Place machines close together to minimize walking.
– Keep inside aisle width to 5 feet or less.
– Remove all obstacles from operator walk areas.
– Eliminate surfaces where WIP can accumulate.
– Locate first and last operations near each other.
– Install flexible utility drops to make future adjustments easier.
– Keep materials, supplies and hand tools at point of use.

69
Exercise 1
Given a precedence diagram
a b 1.0 min
0.1 min
c d e
0.7 min 0.5 min 0.2 min
Arrange the task into three workstations. Use cycle time of 1.0
min.
Calculate percentage of idle time and efficiency of the line.

70
Exercise 1
a b 1.0 min
0.1 min
c d e
0.7 min 0.5 min 0.2 min

Workstation Time Eligible Assign task Revised time Station idle
remaining remaining time
1 1.0 a a 0.9
0.9 b, c c 0.7
0.2 none 0.2
2 1.0 b b 0.0 0.0
3 1.0 d d 0.5
0.5 e e 0.2
0.3 none 0.3

71
Exercise 1
Percentage of idle time = idle time per cycle * 100

actual no. of stations*cycle time
= (0.5 / (3 * 1.0)) *100 = 16.7%
Efficiency of the line = 100% - percent idle time

= 100% - 16.7%
= 83.3%

72
Exercise 2
Using the information contained in table shown, do each of the following :
1) Draw precedence diagram
2) Assuming an eight hrs workday, compute the cycle time needed to
obtain an output of 400 units per day.
3) Determine the minimum number of workstations required.
4) Assign tasks to workstations by assigning the greatest number of following
tasks. In case of tie, use the tie breaker of assigning the task with the longest
processing time first.
Task Immediate predecessor Task time (in min)
a - 0.2
b a 0.2
c - 0.8
d c 0.6
e b 0.3
f d, e 1
g f 0.4
h g 0.3
5) Compute the resulting percent idle time and efficiency of the system.

73
Exercise 3
5) Compute the resulting percent idle time and efficiency of the system.
74
THANK YOU
Info@Omnex.com
Any Questions?
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Lean Manufacturing

Understanding the Wastes &

Copyright © 2015 OMNEX Inc. All Rights

Internet email: info@omnex.com

Copyright © 2015 OMNEX Inc. All Rights

• Value and Waste

• Brief overview of lean principles :

– Operator Balance charts / Line balancing

• Work Element identification and classification

• Time Study- Principles and practices

Copyright © 2015 OMNEX Inc. All Rights

• Lean is About How We Think

• It is a Different Way of Thinking

Copyright © 2015 OMNEX Inc. All Rights

Lean Production occurs when each operation

Copyright © 2015 OMNEX Inc. All Rights

The History of Lean

1960s-80s Toyota implements the Toyota Production

Copyright © 2015 OMNEX Inc. All Rights

• 50% reduction in Inventory

• 20% reduction in operating cost

• Get there in 6 months

Copyright © 2015 OMNEX Inc. All Rights

Five Critical Concepts of Lean

All activities in Lean are driven by:

– “Lean Thinking,” Dr. Womack & Dr. Jones

Copyright © 2015 OMNEX Inc. All Rights

• The value of the product or service is defined solely by the

• Our primary responsibility is therefore to ensure our

• Accurate definition of value is the first step in Lean Thinking.

Copyright © 2015 OMNEX Inc. All Rights

Identify the Value Stream

• Value stream defines all the activities required to deliver a

• Value stream could involve multiple processes.

• All process steps have the potential to:

Copyright © 2015 OMNEX Inc. All Rights

• Once the value has been identified, flow the

• Things work a lot better when the focus is on products and

• Departmentalized thinking is sub-optimal at best.

• The work must be redefined in terms of contribution to

Copyright © 2015 OMNEX Inc. All Rights

“Pull” to Customer Demand

• The value-producing processes respond ONLY to the

Copyright © 2015 OMNEX Inc. All Rights

• Continuous improvement to sustain the first four critical

Copyright © 2015 OMNEX Inc. All Rights

Value and Waste

Reports created from multiple

1st Waste: Motion and Transportation

Moving material and employing individuals to transport

• Cost without value is waste

• Excessive motion (personnel) and

Copyright © 2015 OMNEX Inc. All Rights

3rd Waste: Overproduction

The production of goods in excess of absolute customer

Copyright © 2015 OMNEX Inc. All Rights

Paperwork Long cycle time

Problems obscured Poor space utilization

Overhead charges Inventory wastes

Defect More machines which

Overproduction leads to other wastes and is, therefore, possibly

Copyright © 2015 OMNEX Inc. All Rights

4th Waste: Overprocessing