XYZ Company

Lean Manufacturing

Is a way of life. It is a never ending

process
Its tools need to tailored to meet XYZ
Companys needs.
Not a one size fits all method.

XYZ Company

Lean Manufacturing Defined

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
--The MEP Lean Network
WASTE

SUPPLIER

XYZ Company

WASTE

XYZ Company

WASTE

CUSTOMER

WASTE

Lean Manufacturing Objectives

OUR
CUSTOMER

Satisfaction

XYZ Company

Strealthy
growth

ASSEMBLY
PROCESS

XYZ Company

Elimination of
muda or waste

The Principles of Lean Manufacturing

Focus on Value - Your customer determines value.

Eliminate Waste - Eliminate all forms of waste.
Build only what customer Pulls
Quality, Quality, Quality

.Jim Womack
XYZ Company

What is Waste?

Anything
Anything that
that adds
adds Cost
Cost
to
to the
the product
product
without
without adding
adding Value
Value
Value = ?
Ask yourself IS MY CUSTOMER PAYING FOR THIS ?
Yes Can I do it faster,
better, safer ?
XYZ Company

No Why am I doing it ?!
6

Cost Profit Relationship

COSTS INCREASES
V
V
V

PROFIT DECREASES
XYZ Company

The Never Ending Cycle..

Value
Value!!!!

Low Cost
High Quality
Availability

XYZ
Company

OUR
CUSTOMER
XYZ Company

How can we make/increase PROFITS ?

Selling Price
P

Selling Price
P

Increase
our selling
price

XYZ Companys Cost

P

Decrease
our cost

XYZ Companys Cost

Decrease our cost !!! - HOW ?

XYZ Company

7 Forms of Waste
Value
- Add
Value

added

Value
- Add
Value

added

Non-value
added

LEAN = ELIMINATING THE WASTES

XYZ Company

10

7 Forms of Waste

Overproduction Producing faster than consumption

Defects Variations and complexity
Non-value added processing Lack of standard methods
Waiting Producing slower than consumption
Transportation Disconnected operations
Excess motion Lack of better processes
Excess inventory Long lead times, ..

XYZ Company

11

Bricklaying, through late Nineteenth Century

The brick weighs
about five pounds
(2.3 kg). How much is
the worker actually
raising and lowering
every time he bends
over for another
brick?

XYZ Company

Source: Levinson Productivity Systems, P.C.

http://www.ct-yankee.com/lean/usa.ppt

12

Bricklaying, after Frank Gilbreth

The joke about the underachievers and the light bulb isn't so
funny any more.
Lesson: waste can, by long habit ("living with it," "working
around it") become built into a job.

XYZ Company

Source: Levinson Productivity Systems, P.C.

http://www.ct-yankee.com/lean/usa.ppt

13

INVENTORY Ship Analogy

GOOD OR BAD ?

Inventory Level

Raw
Material

Poor
Quality

Poor
Training

Downtime
Scrap

Poor
Communication

XYZ Company

Poor Layout

Poor
Scheduling

Finished
Goods

Long Lead
Time

No
Standards

Poor
Housekeeping

Long
Setups
Supplier
Relations

14

INVENTORY Ship Analogy

Cannot reduce inventory instantaneously!

Finished
Goods

Raw
Material

Inventory Level
Poor
Quality

Poor
Training

Downtime
Scrap

Poor
Communication

XYZ Company

Poor Layout

Poor
Scheduling

Long Lead
Time

No
Standards

Poor
Housekeeping

Long
Setups
Supplier
Relations

15

INVENTORY Ship Analogy

Solve problems Remove rocks before lowering inventory!

Finished
Goods

Raw
Material

Inventory Level

Downtime
Scrap

Poor
Communication

XYZ Company

Poor Layout

Poor
Scheduling

No
Standards

Poor
Housekeeping

Long
Setups
Supplier
Relations

16

Identify waste in your cell

XYZ Company

Re-pack

Counting

Scrap

Sorting

Load/Unload

Storing

Containment

Invoices

Expedite

Rework

17

Lean Manufacturing Tools

XYZ Company

Value stream mapping

Quality at the source
Workplace organization: 5S
TPM
Visual Management
Set-up reduction (SMED)
Batch size reduction (one-piece-flow)
Cellular manufacturing
Standardized work (CYCLE Time)
Work balancing (TAKT Time)
Production leveling / smoothing / Heijunka
Point-of-use systems
Kanban
Kaizen

18

Lean Building Blocks

Continuous Improvement
Pull/Kanban

Cellular/Flow

Plant Layout
5S System

Quick
Changeover

Batch Reduction
Standardized
Work

Visual
Systems

Teams/Employee Involvement
XYZ Company

Source: The MEP Lean Network

Quality at
Source
TPM
POUS
Value
Stream
Mapping
19

Toyota Production System

Best Quality - Lowest Cost - Shortest Lead Time
Through Eliminating Waste

Just in Time

Jidoka

The right part

at the right time
in the right amount
Continuous Flow
Pull System
Level Production
(Heijunka)
Standardized Work
Total Productive Maintenance

XYZ Company

Built in Quality

Flexible, Capable,
Highly Motivated
People

Operational
Stability

Manual / Automatic
Line Stop
Labor-Machine
Efficiency
Error Proofing
Visual Control
Robust Products & Processes
Supplier Involvement

20