agile & lean manufacturing
TRANSCRIPT
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Course Outline
IM-515 Agile and Lean Manufacturing
Introduction to Lean Manufacturing, valueconcept, lean objectives & tools, origins of lean
systems, group technology, 5S, single minuteexchange of dies, total productive maintenance,
Kaizen, Just-In-Time Manufacturing Systems, Push& Pull Manufacturing Systems, Poka-Yoke, Toyotaproduction system, introduction to agilemanufacturing, research projects in agilemanufacturing, design of market responsivesupply and distributions manufacturing systems.
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Books & Reading Materials
The Toyota Way: 14 Management Principles
from the World's Greatest Manufacturer
by Jeffrey K. Liker
LEAN Manufacturing Implementation: A
Complete Execution Manual for Any Size
Manufacturer by Dennis P. Hobbs
Lectures notes
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A little about me:
B.E in Mechanical, NED UET
Masters in Mechanical Engineering (Specialization inManufacturing), NED UET
Doctor of Philosophy, Mechanical Engineering, TheUniversity of Manchester, UK
Working / Tecahing Experience:
Over 16 years of (combined field and teaching)experience.
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Marks Distribution & Grading Scheme
Semester Exam 60% Sessional Work 40%
Grading Scheme
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LETS KNOW WHOS SITTING NEXT
o YOUR NAME
o FINAL DEGREE
o ORGANIZATION
o JOB TITLE
o JOB DESCRIPTION
o EXPERTIES
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Lean manufacturing or thinking is exactly what the name sounds like - it isabout 'cut to the bone', fat-trimmed, streamlining operation andorganizations.
Womack and Jones define lean manufacturing as a five-step process:defining customer value, defining the value stream, making it flow,
pulling from the customer back, and striving for excellence. Taiichi Ohno, founder of TPS, said it even more succinctly:
All we are doing is looking at the time line from the moment thecustomer gives us an order to the point when we collect the cash. And weare reducing that time line by removing the non-value-added wastes.
Some have referred to lean manufacturing as the TOYOTA PRODUCTION
SYSTEM, or JIT (just-in-time) manufacturing, paying attention to things likeflow productions, line operations, value streams, Kaizen.
Problems most companies face are:the need for fast, flexible processesthat give customers what they want, when they want it, at the highestquality and affordable cost.
What is Lean Manufacturing?
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Lean Manufacturing, also called Lean Production, is a set oftools and methodologies that aims for the continuouselimination of all waste in the production process. The mainbenefits of this are lower production costs, increased
output and shorter production lead times. More specifically, some of the goals include:
Defects and wastage
Cycle Times
Inventory levels
Labor productivity
Utilization of equipment and space
Flexibility
Output
What is Lean Manufacturing?
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What is Lean Manufacturing?
Lean = Eliminating Waste
Defect
Over productionWaiting time
Non-utilized people
TransportationInventory
Motion
Excess processing
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It is a Manufacturing Philosophywhich shortens the time line
between the customer order and the shipment by eliminating
waste.
What is Lean Manufacturing?
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What is Lean Manufacturing?
Key Principles of Lean Manufacturing:
Key principles behind Lean Manufacturing can be summarized as follows:
Recognition of waste
Standard processes
Continuous flow
Pull-production
Quality at the Source
Continuous improvement
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What is Lean: The Value Concept
Differentiate Value from Waste (Muda)
Define Value from Customers point of View
How the Employees see Quality
Transform the culture of the Organization: Gap Analysis
Employee understanding of:
What does Value mean to the customer.
How value added activities generate the biggest revenue What contribution he/she can make in value added
activities.
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Origin of Lean Systems and JIT
How the Lean and JIT Supplement each
other How removal of NVA Activities help in
JIT.
What is Lean: The Value Concept
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What is Lean Manufacturing?
History of Lean Manufacturing:
Taiichi Ohno (February 29, 1912 May28, 1990) is
considered to be the father of the Toyota Production System , also
known as Lean Manufacturing. He wrote several books about the
system, the most popular of which is Toyota Production System.
Born in Dalian, China, and a graduate of the Nagoya Technical High
School, he was an employee first of the Toyoda family's ToyodaSpinning, then moved to the motor company in 1943, and gradually
rose through the ranks to become an executive
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In 1945, Toyoda challenged Taiichi Ohno to learn how to
compete with US Automakers not on building large
volumes of similar models, but many models in lowvolume.
Ohno was given 3 years to develop a system to achieve
this goal.
Ohno went to the US and studied Ford mass assembly
processes at the Rouge River Plant.
What is Lean Manufacturing?
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Ohno also studied the supermarket concept of
ordering and replenishing stock by a signal system.
This resulted in Ohno applying the KANBAN concept
to the system he would develop
It took Ohno over 20 years to develop the system
that became known as The Toyota Production System
(TPS)
What is Lean Manufacturing?
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What is Lean Manufacturing?Craft Manufacturing
Late 1800s
Car built on blocks in the barn as workers walkedaround the car.
Built by craftsmen with pride
Components hand-crafted, hand-fitted
Excellent quality
Very expensive
Few produced
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What is Lean Manufacturing?
Mass Manufacturing Assembly line - Henry Ford 1920s
Low skilled labor, simplistic jobs
Interchangeable parts Lower quality
Affordably priced for the average family
Billions produced - identical
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What is Lean Manufacturing?
Lean Manufacturing
Cells or flexible assembly lines
Broader jobs, highly skilledworkers, proud of product
Interchangeable parts,even more variety
Excellent quality mandatory
Costs being decreased through process
improvements. Global markets and competition.
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Way to Toyota
JIT & Mass
Production
TQM
(Deming & Juran)
Employee
Empowerment
& Kaizen
Toyota Production System (TPS)
Japan becomes the Manufacturing Quality Leader
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Mass Production vs. Lean ProductionMass Production Lean Production
Customer
Satisfaction
Makes what engineers want
in large quantities at
statistically accepted quality
levels.
Makes what customers
want with zero defects,
when they want it and only
the quantities they order
Leadership By Executive command and
coercion
By vision and broad
participation
Organization Individualism and military-
style bureaucracy
Team based operations and
flat hierarchies
ExternalRelations
Based on price Based on long-termrelations
Information
Management
Poor management based on
abstract reports generated by
and for managers
Rich management based on
visual control systems
maintained by all
employees
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Mass Production vs. Lean ProductionMass Production Lean Production
Orientation Supply driven Customer driven
Planning Orders are pushed through
factory based on production
plan/ forecast
Orders are pulled through
factory based on
customer/downstream
demand
Batch size Large Small
Inventory Buffer of work-in-progress
between each production
stage
Little or no work-in-
progress between each
production stage.
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Mass Production vs. Lean ProductionMass Production Lean Production
Culture Of Loyalty & obedience;sub-culture of alienation and
labor strife
Harmonious culture ofinvolvement based on
human resources & long
term relations
Production Large-scale machines,
functional layout, minimalskills, long production runs,
massive inventories
Human scale machines,
cell-type layout, multi-skill, one-piece flow, zero
inventories
Maintenance
& Quality
By Specialists Equipment management
by production &
engineering
Design &
Engineering
Isolated genius model with
little input from customers
and little respect for
production realities
Team-based model, with
input from customers &
concurrent development
of product and process
design
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LEAN System - Benefits
15% growth in 1 year
12% Productivity increment in 1 year
20% Space saving in 1 year
90% On Time Delivery in Full 28% Throughputs Lead time reductions
Improved Supplier performance
Improved Customer Quality Progressive MUDA Elimination
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LEAN System - Benefits
Flexible structures assigned to business goals Roles & Responsibilities assigned to business goals
Process driven culture
Visual demonstration of achievements Increased employee ability and morale
Visual abnormal situations
Focused application of resources for best return
Believable prediction of results
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Lean implementation Results
Productivity 25 pr/person 40 pr/person 60% Improvement
Quality 4.6% defects at final
audit
2.1% defects at final
audit
58% lessdefects
Space 102 sq. ft. per person 36 sq. ft. per person 64% lesssq.ft. per
person
WIP 4 units of WIP per
unit produced.
0.3 units of WIP per
unit produced
13timeslessunitsin
inventory
Lead Time 3.7 days 0.27 days 93% reduction
Absenteeism 3.2
% daily2.1% daily 33% reduction
Variationin
Process(DailyScheduleattainment)
+/- 45% variation(DailyScheduleattainment)
+/- 10% variation(DailyScheduleattainment)
88% morereliable
process(DailyScheduleattainment)
BEFORE AFTER IMPACT
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Description of the Five Primary
Elements
The Five Primary Elements for lean manufacturing are:
Manufacturing Flow
Organization
Process Control Metrics, and
Logistics
These elements represent the various facets requiredto support a solid lean manufacturing program, and itis the full deployment of these elements that willpropel a company on a path toward becoming a worldclass manufacturer.
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Following is a basic definition of each of the Five Primary Elements:
Manufacturing Flow:
The aspect that addresses physical changes and design standards that aredeployed as part of the cell.
Organization:The aspect focusing on identification of peoples roles/functions, training in
new ways of working, and communication.
Process Control:
The aspect directed at monitoring, controlling, stabilizing, and pursuing waysto improve the process.
Metrics:
The aspect addressing visible, results-based performance measures; targetedimprovement; and team rewards/recognition.
Logistics:
The aspect that provides definition for operating rules and mechanisms forplanning and controlling the flow of material.
Description of the Five Primary
Elements
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Each of these elements contains a set of lean principleswhich, when working together, all contribute to thedevelopment of a world-class manufacturingenvironment.
These primary elements provide full coverage of therange of issues that surface during a leanmanufacturing implementation. Each element focuseson a particular area of emphasis an compartmentalizesthe activities. Even though each element is important
on its own for the deployment of a successful leanmanufacturing program, the power comes fromintegration of the elements.
Description of the Five Primary
Elements
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What is Lean Manufacturing?
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What is Lean Manufacturing?
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What is Lean Manufacturing?
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What is Lean Manufacturing
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What is Lean Manufacturing?
4. Pull
Definition
Letting the customer pull from enterprise-Don't Make Anything Until It Is Needed
-Then Make It As Quickly As Possible
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What is Lean Manufacturing
5. Strive for Perfection
Continuous radical and incrementalimprovement
Continuous Banishment of muda
-Pursue Perfection, Not the Competition ThereIs No Endto the Process of Reducing Efforts,Space, Costs and Mistakes
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the term non-value-addedrefers to activity that consumes time (peopleexpense), material, and/or space
(facilities expense), yet does not physically advance the product or
increase its value.
A value stream is the total cycle of activity, from initial customer contactthrough receiving payment for a product that has been delivered.
Flow, in the ideal state, simply implies a seamless sequence of activitythroughout the process, with no stalls, no disruptions, and no disconnects orbacktrack loops.
The concept of pull means that things are done when they are required to bedone, not before. It implies a consumption-driven or customer demanddrivensystem, as opposed to a forecast-driven system.
Gap analysis would recognize the gap between where they were and wherethey wanted to be. An analysis was performed to understand the gap andidentify actions to close it.