lean operations “ eliminate waste through continuous improvement ”

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Lean Operations Eliminate Waste Through Continuous Improvement

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Page 1: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Lean Operations

“Eliminate WasteThrough

Continuous Improvement”

Page 2: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A Little History!

Benjamin Franklin Poor Richard’s Almanac: He that idly loses 5s.

[shillings] worth of time, loses 5s., and might as prudently throw 5s. into the river. He that loses 5s. not only loses that sum, but all the other advantages that might be made by turning it in dealing, which, by the time a young man becomes old, amounts to a comfortable bag of money."

Page 3: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A Little History!

Gilbreth Saw that masons bent over to pick up bricks from

the ground. The bricklayer was therefore lowering and raising his entire upper body to get a 5 pound (2.3 kg) brick but this inefficiency had been built into the job through long practice. Introduction of a non-stooping scaffold, which delivered the bricks at waist level, allowed masons to work about three times as quickly, and with less effort.

Page 4: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A Little History!

Ford: Eliminate Waste "I believe that the average farmer puts to a really useful

purpose only about 5 %. of the energy he expends. … Not only is everything done by hand, but seldom is a thought given to a logical arrangement. A farmer doing his chores will walk up and down a rickety ladder a dozen times. He will carry water for years instead of putting in a few lengths of pipe. His whole idea, when there is extra work to do, is to hire extra men. He thinks of putting money into improvements as an expense. … It is waste motion— waste effort— that makes farm prices high and profits low."

Page 5: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A Little History!

Ford: Design for manufacturing Start with an article that suits and then study to

find some way of eliminating the entirely useless parts. This applies to everything— a shoe, a dress, a house, a piece of machinery, a railroad, a steamship, an airplane. As we cut out useless parts and simplify necessary ones, we also cut down the cost of making. ...But also it is to be remembered that all the parts are designed so that they can be most easily made."

Page 6: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A Little History!

Ohno – put ideas into practice systematically “When bombarded with questions from our

group on what inspired his thinking, Ohno just laughed and said he learned it all from Henry Ford's book."

Page 7: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Waste: Classification

Waste from overproduction Inventory waste Waste from waiting time Transportation waste Processing waste Waste of motion Waste from product defects

Page 8: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A system that continually searches for and eliminates waste throughout the value chain.

Views every enterprise activity as an operation and applies its waste reduction concepts to each activity - from Customers to the Board of Directors to Support Staff to Production Plants to Suppliers.

TPS: Toyota Production System

Page 9: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Reducing Waste: Quality at Source

Failsafe design (Poka-Yoke) Stopping work immediately when problem

occurs (Jidoka)

Line-stopping empowerment (Andon)

TPS: Toyota Production System

Page 10: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Poka-Yoke

Page 11: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Poka-Yoke

Poka-yoke page: http://csob.berry.edu/faculty/jgrout/pokayoke.shtml

Page 12: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Jidoka

Page 13: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Andon

Page 14: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Defects found at:

Current Process

Next Process

End of Line

Final Inspection

End User

Impact to the Company:

· VeryMinor

· MinorDelay

· Rework

· Reschedulingof work

· SignificantRework

· Delay inDelivery

· AdditionalInspection

· WarrantyCosts

· AdministrativeCosts

· Reputation

· Loss ofMarket Share

Reducing Waste: Quality at Source

Page 15: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Reducing Waste: Increase Problem Visibility

Missed Due Dates

Scrap & Rework Machine Downtime

Supply Fluctuations

Excessive Paperwork

Inventory

Page 16: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Material Flow

Information Flow

FGI

CustomerRaw

MaterialSupplier

FinalAssembly

PUSH

FGI

CustomerRaw

MaterialSupplier

FinalAssembly

PULL

TPS System uses Kanbans

Reducing Waste: Push versus Pull System

Page 17: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

ProductionControl

ProductionControl

ProductionControl

RoofCut

RoofCut

RoofCut

BaseCut

BaseCut

BaseCut

FABaseAssy

FA FABaseAssy

BaseAssy

QC QC QC

Reducing Waste: From Functional Layout…

Page 18: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

ProductionControl

FA

BaseCut

RoofCut

BaseAssy

ProductionControl

FA

BaseCut

RoofCut

BaseAssy

ProductionControl

FA

BaseCut

RoofCut

BaseAssy

...to Cell Layout

Page 19: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Batch Mfg. (Lot Size = 4) Flow Mfg. (Lot Size = 1)01234

8

16

Time

Example Process: A B C D

1 min/job 1 min/job 1 min/job 1 min/job

A B C D

4

4

4

4

A B C D

Time

11

11

01234

8

16

Reducing Waste: Cut Batch Sizes

Page 20: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Batch Production Schedule Mixed Production Schedule

(AAAABBBB...) (ABAB...)

Apr/12.........15..................30 Apr/12..........15...................30

Products

A

B

time

FGI

time

FGI

Synchronize: HeijunkaMixed, Level/Balanced Production

Page 21: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Increase visibility of waste Standardize work Targeted improvements

Active worker involvement Supplier involvement Time for experimentation

Exploratory stress

Continuous Improvement: Kaizen

Page 22: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

A system that continually searches for and eliminates waste throughout the value chain. Poka-Yoke Jidoka Andon Kanban Heijunka Kaizen

TPS: Toyota Production System

Page 23: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

Management By Stress: Does “S” in TPS Stand for Stress (1)?

“Empower employees” Employees responsible for errors.

“Drive out waste” No slack in the human system. “Kaizen” Improvements discovered by workers are co-

opted by management. “Workers design their jobs” Workers do industrial

engineering jobs without the pay.

Page 24: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

“Reduce indirect labor” Make workers do management’s job.

“Reduced buffers” More stress and less room for error or fatigue.

“Respect for workers” As long as workers define their personal goals as satisfying management’s agenda…

“Productivity enhancements are dramatic” Workers work real hard, with little spare time.

Management By Stress: Does “S” in TPS Stand for Stress (2)?

Page 25: Lean Operations “ Eliminate Waste Through Continuous Improvement ”

If You’re Curious to know more..

Lean Blog: http://kanban.blogspot.com/ Books:

Ohno, Taiichi (1988), Toyota Production System: Beyond Large-Scale Production, Productivity Press.

Womack, James P., Jones, Daniel T., and Roos, Daniel (1991), The Machine That Changed the World: The Story of Lean Production, Harper Perennial

Womack, James P. and Jones, Daniel T. (1998), Lean Thinking Free Press.

Levinson, William A. (2002), Henry Ford's Lean Vision: Enduring Principles from the First Ford Motor Plant, Productivity Press

Ford, Henry and Crowther, Samuel (2003), My Life and Work, Kessinger Press.