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This document provides an overview of lean thinking concepts through a presentation designed to teach others. It begins with learning objectives and an introduction to contrasting mass production and lean mindsets. Key concepts of lean explained include eliminating waste to create value, adopting a customer pull vs. producer push mindset, and the lengthy historical process through which Toyota developed its lean production system. Examples are provided of exercises used to illustrate lean concepts like the seven wastes and five S's. The presentation concludes by discussing potential disconnects that can arise in lean implementation efforts.
1 1leanthinking
- 1. Lean Thinking Module 1.1 Presentation for: Summer 2004 i Joel Cutcher-Gershenfeld Senior Research Scientist, MIT Sloan School of Management and Executive Director, MIT Engineering Systems Learning Center ESD.60 – Lean/Six Sigma Systems MIT Leaders for Manufacturing Program (LFM) These materials were developed as part of MIT's ESD.60 course on "Lean/Six Sigma Systems." In some cases, the materials were produced by the lead instructor, Joel Cutcher-Gershenfeld, and in some cases by student teams working with LFM alumni/ae. Where the materials were developed by student teams, additional nputs from the faculty and from the technical instructor, Chris Musso, are reflected in some of the text or in an appendix
- 2. 6/ 2l l Overview ¾ Learning Objectives ¾ Awareness of the contrast between “mass” and “lean” ¾ Appreciation of the historical context for lean thinking ¾ Ability to engage in lean thinking with respect to Wastes, and others) ¾ Increased ability to teach others about lean thinking ¾ Session Design (60-90 min.) ¾ Part I: Introduction and Learning Objectives (1-2 min.) ¾ Part II: Key Concept or Principle Defined and Explained (5-7 min.) ¾ Part III: Exercises and Activities Based on Field Data and Scenarios that Illustrates the Concepts or Principles (45-60 min.) ¾ Part IV: Common “Disconnects,” Relevant Measures of Success, and Potential Action Assignment(s) to Apply Lessons Learned (15-20 min.) ¾ Part V: Evaluation and Concluding Comments (2-3 min.) 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT mindsets application examples (5S’s, 7 Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 3. 6/ 3l l Redefining “lean” Definition: “Becoming ‘lean’ is a process of eliminating waste with the goal of creating value.” Note: cost cutting – i i i Joel l i i i l ) 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT This stands in contrast to definitions of lean that only focus on eliminating waste, which is too often interpreted as ndependent of its impact on value delivery Source: Lean Enterpr se Value: Ins ghts from MIT’s Lean Aerospace Initiative by Earll Murman, Thomas Allen, Kirkor Bozdogan, Cutcher-Gershenfe d, Hugh McManus, Deborah N ghtingale, Eric Rebentisch, Tom Shields, Fred Stahl, Myles Walton, Joyce Warmkessel, Stanley Weiss, She la W dnall, (Pa grave, 2002 Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 4. 6/ 4l l Two mindsets “Mass Production” Mindset ¾ Producer “push” ¾ Movement of materials ¾ High volume ¾ Inspection ¾ Expert-driven ¾ Decomposition ¾ Periodic adjustment “Lean Enterprise” Mindset ¾ Customer “pull” ¾ Flow of value ¾ Flexible response ¾ Prevention ¾ Knowledge-driven ¾ Integration ¾ Continuous improvement 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 5. 6/ 5l l Where to begin? ¾ An Exercise in Lean Thinking: ¾Small groups of 4-5 people ¾Half of the groups: ¾Draw a picture of a home workbench or kitchen used by someone engaged in “mass” thinking ¾The other half of the groups: ¾Draw a picture of a home workbench or kitchen used by someone engaged in “lean” thinking Note: transparency to illustrate you description 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT An option for this exercise would be to draw a picture on a Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 6. 6/ 6l l Historical context: The changing nature of work i ( i 1800 and earlier 1900 2000 and beyond Craft Production Socio: Mastery of Craft Tech: Specialized Tools Mass Production Tech: Assembly Line Knowledge-Driven Work Socio: Network Alliances Team-Based Work Systems Tech: Flexible Specialization 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Adapted from: “Knowledge-Dr ven Work: Unexpected Lessons from Japanese and United States Work Practices” Oxford Univers ty Press, 1998) Decentralized Enterprises Custom Manufacture Socio: Vertical Hierarchies Scientific Management Interchangeable Parts Information Systems Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 7. 6/ 7l l A Lesson From History ¾ 150 car makers in Indiana since the assembly of cars in Indiana today (Honda, Subaru, and Toyota) ¾ line, but it was fixed for chassis -- abandoning wood for steel in body ¾ about a plant that had some group l some preventative maintenance, i maintenance and engineering? 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT turn of the century -- only 3 doing final Leading manufacturer -- Auburn Motors -- established an assembly moving manually from one set of saw horses to another -- and they resisted frames What will people in the future say meetings, some new measurab es, some n-station process control, some reduced in-process inventory, and some coordination among production, Source: Auburn & Cord by Lee Beck and Josh B. Malks, Motor Books, Intl., 1996 Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion Image removed due to copyright considerations.
- 8. 6/ 8l l Historical context: Transformation initiatives Socio-Technical Work Systems (STS) 1950s 1960s 1970s 1980s 1990s 2000s Employee Involvement (EI) / Re-Engineering Six Sigma Associated Team Structure Human group (on line/off line) Semi-autonomous teams (on-Line) ) Quality circles ) Work-out events ) teams (off-line) & Process teams Statistical Process Control (SPC) Human Relations Movement l l 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Quality of Work Life (QWL) Total Quality Management (TQM) Lean Production / Lean Enterprise Systems EI/QWL groups (off-line (off-line (off-line Black belt led project Lean production teams / Integrated Product (on-line) Work Redesign Source: Auto Industry System Study by Joe Cutcher-Gershenfe d and Thomas Kochan, 2000 Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 9. 6/ 9l l Historical context: Emergence of lean Selected Elements of Toyota Production System Implemented over Three Decades: ¾ “Pull” vision ¾ Kanban (card) system ¾ Production leveling ¾ Reduced set-up time (Shingo) ¾ Jidoka (people giving wisdom to machines) ¾ Statistical Process Control (SPC) ¾ Quality Circles ¾ Kaizen (continuous improvement based on knowledge) ¾ Poka-yoke (error proofing) ¾ Adnon (visual display) 1950s 1960s 1970s Discussion Question: ¾ l of the aspects of the System, including the with that system. How long do you think it might take a large aerospace company Lockheed Martin or Pratt and Whitney to build the same years? 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Case Example – Kanban: First kanban experiments Kanban introduced company-wide Kanban distributed across suppliers It took c ose to 30 years for Toyota to develop all Toyota Production lean thinking that goes such as Boeing or capability -- 30 years, 20 years, 10 years, 5 Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 10. 6/9/04 -- 10© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT Auto industry data: A lean story? (data from The Machine That Changed the World) Year 1947 1954 1961 1968 1975 1982 1989 AutoProduction(millions) 20 15 10 5 Japanese Production US Production GM Ford Chrysler Toyota Market Capitalization 1998-2001 “Anorexic Lean” “Bulimic Lean” “Lean” Source: Ted Piepenbrock 2003, Engineering Systems Division Doctoral Seminar, Massachusetts Institute of Technology Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion 1. Data from Womack, Jones and Roos, The Machine that Changed the World, The Free Press, 1990.
- 11. Airline industry data: A lean story? (source: IATA & Southwest Airlines) Total Airline Profits (1970-2002) $0 b $20 b $10 b $5 b -$5 b $15 b -$20 b -$10 b -$15 b “Higher, Faster, Farther” American Delta Market Capitalization 2002 “Better, Faster, Cheaper” Low-Fare Carriers Point-to-Point Networks Narrow Body Planes Network Carriers Hub & Spoke Networks Wide Body Planes AllOthers Southwest 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 11l l i ivisi l 1. Data from the IATA. 6/9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Source: Ted Piepenbrock 2003, Eng neering Systems D on Doctora Seminar, Massachusetts Institute of Technology Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 12. 6/ 12l l Airline industry data: Another look at the picture i i i i $0b $5b $10b $15b AirlineProfitability Year 1900 1930 1970 2010 $20b $25b 198019401920 1990 20001910 19601950 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Source: Presentation on “Enterprise Des gn for Dynamic Complex ty: Enterpr se Product Strategy” by Ted Piepenbrock at the Lean Aerospace Initiative Product Development Commun ty Meeting, (October, 2003) -$10b -$20b -$5b -$15b Deregulation Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 13. 6/9/04 -- 13© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT Lean thinking: A mental model Womak and Jones: Specify value Identify the value stream Make value flow continuously Let customers pull value Pursue perfection Source: James P. Womak and Daniel T. Jones, Lean Thking, New York: Simon and Schuster, 1996. Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 14. 6/ 14l l Exercise: The Seven Wastes and the Five S’s The Seven Wastes ¾ Over Production ¾ Waiting ¾ Transportation ¾ Inventory ¾ Processing ¾ Motion ¾ Defects The Five S’s ¾ Simplify or Sort (seiri) ¾ Straighten or Set (seiton) ¾ Scrub or Shine (seiso) ¾ Stabilize or Standardize (seiketsu) ¾ Sustain or Self- Discipline (shitsuke) What changes are needed in technical/physical systems to address What changes are needed in social systems – including what new ways of thinking? 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT the Seven Wastes? Do the same analysis with respect to the Five S’s Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 15. 6/9/04 -- 15© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT Mass Production (“push”): Auto Assembly Plant T S
- 18. M A T E R I A L RECEIVING WAREHOUSE SHIPPING WAREHOUSE STORAGE STORAGE ASSEMBLY WELD STAMPING Total Time in Plant : : : Weeks Value Add Time Minutes Designed to Maximize Long Production Runs Buffers Against Uncertainty ORDER CASH REPAIR KKKKKKKK Adapted from: Ford Motor Company -- FPS��
- 19. 6/9/04 -- 16© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT Lean Manufacturing (“pull”): Auto Assembly Plant M A T E R I A L STAMPING Work groups supported to ensure ISPC, TPM, Material Flow, etc. Total Time in Plant : : : Hours Value Add Time Minutes Designed to Maximize Elimination of Waste Creation of Value ORDER CASH KKKKKKKK PULL M A T E R I A L KKKKKKKK PULLPULL PULL PULL PULL Continuous improvement opportunity Production cards trigger delivery of material STORAGE WELDING ASSEMBLY STAGE AND SHIP Adapted from: Ford Motor Company -- FPS��
- 20. 6/9/04 -- 17© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT Enterprise and Extended EnterpriseEnterprise and Extended Enterprise OrderOrder DeliveryDelivery ConceptConcept LaunchLaunch RawRaw--materialsmaterials CustomerCustomer MultiMulti--plant/Programplant/Program Value Streams Source: Adapted from presentation by Matthias Holweg on “Latest Developments in Lean Thinking,” CMI Design and Development Delivery & Sustainment PlantPlant Components & Materials Æ Finished Goods Support Functions and Infrastructure (Physical & Social)Support Functions and Infrastructure (Physical & Social) Courtesy of Matthias Holweg. Used with permission.
- 21. 6/ 18l l Sample Value Stream Map i 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Source: Presentation by Matthias Holweg on “Latest Developments n Lean Thinking,” CMI Diagram from Mike Rother and John Shook (1998). Learning To See: Value Stream Mapping to Add Value and Eliminate Muda. The Lean Enterprise Institute. ISBN: 0-9667843-0-8. Courtesy of Lean Enterprise Institute, Inc. Used with permission.
- 22. 6/ 19l l The Deming Cycle Plan Do Check Act (what to do; for improvement) (..it, on a trial basis; experiment) (if it works; the risks; the variation, LEARN!) (implement more widely; standardise) “Hold the gains” i 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Source: Presentation by Matthias Holweg on “Latest Developments n Lean Thinking,” CMI Courtesy of Matthias Holweg. Used with permission.
- 23. 6/ 20l l Lean “Disconnects” ¾ Small Groups ¾ Discuss disconnects that you have observed in lean implementation initiatives or ¾ Discuss potential disconnects that might arise in the implementation of the new work cells in the previous exercise ¾ Full Group ¾ Identify patterns in the data and overall implications 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 24. 6/9/04 -- 21© Joel Cutcher-Gershenfeld – ESD.60 Lean/Six Sigma Systems, LFM, MIT What is the Relationship of the “Disconnects” with this Model? Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion T1 INTERDEPENDENCE T2 PULL T3 T4 T5 T6 T7 T8 T9 T10 T11 T12 TIME FLOW STABILITY INFRASTRUCTURE You are here
- 29. Adapted from: Materials Developed by WorkMatters, LLC in Collaboration with the Ford Motor Company��
- 30. 6/ 22l l Conclusion ¾ Return to the Definition: “Becoming ‘lean’ is a process of eliminating waste with the goal of creating value.” ¾ Why Might These Be Considered First Principles: ¾ Fairness and respect ¾ Customer as “True North” ¾ Eliminate waste to add value ¾ Knowledge-driven continuous improvement (PDCA) 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion
- 31. 6/ 23l l ¾ The Machine that Changed the World, The Free Press (1990). ¾ Womack, James P. and Daniel T. Jones : Banish Waste and Create Wealth in Your Corporation, Si ¾ l Knowledge- Driven Work: New York: Oxford University Press (1998). ¾ , Oxford University Press (1999). ¾ Ohno, Taiichi, : Beyond Large-Scale Production, Productivity Press, (1978; English translation,1988). ¾ Murman, Earll, Allen, Thomas, Kirkor, l Lean Enterprise , London, Palgrave (2002). ¾ Gittel, Jody Hoffer, , McGraw-Hill (2003). ¾ and other forums (2003). ¾ 9/04 --© Joe Cutcher-Gershenfe d – ESD.60 Lean/Six Sigma Systems, LFM, MIT Selected Sources – Chronological Order Womack, James P., Daniel T. Jones and Daniel Roos, , Lean Thinking mon & Schuster (1996). Cutcher-Gershenfeld, Joel, Michio Nitta, Betty Barrett, Nejib Belhedi, Simon Chow, Takashi Inaba, Iwao Ishino, Wen-Jeng Lin, Michael Moore, Wil iam Mothersell, Jennifer Palthe, Shobha Ramanand, Mark Strolle, and Arthur Wheaton, Lessons from Japanese and U.S. Work Practices. Fujimoto, Takahiro, The Evolution of a Manufacturing System at Toyota Toyota Production System Bozdogan, Cutcher-Gershenfe d, Joel, McManus, Hugh, Nightingale, Deborah, Rebentisch, Eric, Shields, Tom, Stahl, Fred, Walton, Myles, Warmkessel, Joyce, Weiss, Stanley, Widnall, Sheila; Value: Insights from MIT’s Lean Aerospace Initiative The Southwest Airlines Way: Using the Power of Relationships to Achieve High Performance Charts and Graphs from Presentations by Ted Piepenbrock in ESD Doctoral Seminar Charts and Graphs from Presentation by Matthias Holweg on “Latest Developments in Lean Thinking,” CMI (2004). Part I: Introduction Part II: Concepts Part III: Application Part IV: Disconnects Part V: Conclusion