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.

Lean Manufacturing DefinedA 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 NetworkXYZ CompanyCUSTOMERSUPPLIERWASTEWASTEWASTEWASTE

XYZ CompanyStrealthy growthOUR CUSTOMERSatisfactionASSEMBLY PROCESSElimination ofmuda or wasteLean Manufacturing Objectives

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

What is Waste?Anything that adds Cost to the product without adding ValueValue = ?Ask yourself IS MY CUSTOMER PAYING FOR THIS ?Yes Can I do it faster, better, safer ?No Why am I doing it ?!

Cost Profit RelationshipCOSTS INCREASESPROFIT DECREASESVVV

The Never Ending Cycle..Low CostHigh QualityAvailabilityValue !!XYZ CompanyOUR CUSTOMER

How can we make/increase PROFITS ?PXYZ Companys CostSelling PriceSelling PricePIncrease our selling pricePDecrease our costDecrease our cost !!! - HOW ?XYZ Companys Cost

7 Forms of WasteLEAN = ELIMINATING THE WASTESValue - AddValue - Add

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, ..7 Forms of Waste

Bricklaying, through late Nineteenth CenturyThe 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?Source: Levinson Productivity Systems, P.C.http://www.ct-yankee.com/lean/usa.ppt

Bricklaying, after Frank GilbrethThe 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.Source: Levinson Productivity Systems, P.C.http://www.ct-yankee.com/lean/usa.ppt

Inventory LevelINVENTORY Ship AnalogyRaw MaterialFinished GoodsDowntimePoor TrainingPoor QualityLong Lead TimePoor CommunicationPoor LayoutPoor SchedulingNo StandardsPoor HousekeepingSupplier RelationsLong SetupsScrapGOOD OR BAD ?

Inventory LevelRaw MaterialFinished GoodsDowntimePoor TrainingPoor QualityLong Lead TimePoor CommunicationPoor LayoutPoor SchedulingNo StandardsPoor HousekeepingSupplier RelationsLong SetupsScrapCannot reduce inventory instantaneously!INVENTORY Ship Analogy

Inventory LevelRaw MaterialFinished GoodsDowntimePoor CommunicationPoor LayoutPoor SchedulingNo StandardsPoor HousekeepingSupplier RelationsLong SetupsScrapSolve problems Remove rocks before lowering inventory!INVENTORY Ship Analogy

Identify waste in your cell Counting Sorting Storing Invoices Rework Re-pack Scrap Load/Unload Containment Expedite

Lean Manufacturing Tools 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

Lean Building BlocksQuick ChangeoverStandardized WorkBatch ReductionTeams/Employee InvolvementQuality at Source5S SystemVisual SystemsPlant LayoutPOUSCellular/FlowPull/KanbanTPMValueStreamMapping Continuous ImprovementSource: The MEP Lean Network

Toyota Production SystemBest Quality - Lowest Cost - Shortest Lead Time Through Eliminating WasteJust in Time The right part at the right time in the right amount Continuous Flow Pull System Level Production (Heijunka)Jidoka Built in Quality Manual / Automatic Line Stop Labor-Machine Efficiency Error Proofing Visual ControlFlexible, Capable, Highly MotivatedPeopleStandardized WorkTotal Productive MaintenanceRobust Products & ProcessesSupplier InvolvementOperational Stability