agile & lean manufacturing

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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.