Basics of lean
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This document provides an overview of lean concepts and tools. It defines lean as eliminating waste to do more with less. Most processes have 95% waste, with only 5% being actual work. The largest gains come from reducing waste. Lean emerged from Toyota's production system and focuses on value, value streams, continuous flow, pull from customers, and perfection. Key lean tools include value stream mapping, 6S organization, using cells for workflow, standard work instructions, and rapid improvement events.
Basics of lean
- 1. Basics of Lean How to See and Eliminate Waste
- 2. Concept “Lean” is not an acronym It means to do more with less waste Most processes in North America are 95% waste Actual hands-on time is only 5% The largest production gains will be made in reducing the waste in a process
- 3. Why Lean? Competition is world-wide and growing Companies that meet customer needs and are more efficient than their competitors will survive “You can have any color you want, as long as it’s black” is a dead philosophy
- 4. History of Lean Henry Ford Taiichi Ohno and the Toyota Production System “The Machine that Changed the World” “Lean Thinking” Automotive industry Aerospace industry …And beyond
- 5. 8 types of waste Injuries Defects Inventory Overproduction Waiting time Motion Transportation Processing
- 6. 5 Key Principles Value Value Stream Flow Pull Perfection
- 7. Specific product that meets a customer’s needs at a specific price and specific time What is important to the customer What the customer is willing to pay for Put yourself in the customer’s shoes Use the customer’s words to describe the product What is Value?
- 8. Set of specific actions required to bring a specific product through 3 critical management tasks of all businesses Problem Solving task (design, engineering) Information Management task (order taking, scheduling, planning) Physical Transformation task (from raw material to finished product) What is the Value Stream?
- 9. Parts “flow” through a Value Stream Upstream is the beginning or “head” of the flow Downstream is the “mouth” of the flow, where the part is pulled by the customer Materials and parts are the “parts” in manufacturing Customer’s needs are the “parts” in service industry Same for administration What is Flow?
- 10. What is Pull? “It has become a matter of course for customers, or users, each with a different value system, to stand in the frontline of the marketplace and, so to speak, pull the goods they need, in the amount and at the time they need them.” Taiichi Ohno, “Toyota Production System” “…Nothing is produced by the upstream provider until the downstream customer signals a need” Womack and Jones, “Lean Thinking”
- 11. What is Perfection? The complete elimination of all waste, so that all activities along a value stream add value to the product Ideal State Map
- 12. Lean Tools Value Stream Analysis 6S Cells Standard Work Rapid Improvement Events
- 13. Use Value Stream Analysis as a planning tool Break down the Value Stream in manageable sections Communicate the “flow” with maps Information Material Use Value Stream Analysis to create 3 maps Current Ideal Future (near time-within a year) Develop action plan from the Future map Value Stream Analysis
- 14. 6S Often confused with Lean, because you are “doing” something Second step, after Value Stream Analysis
- 15. 6S A tool to organize the workplace Sort—Keep what you need, get rid of the rest Straighten—Organize what’s left Scrub—A clean workplace is more efficient Safety—Without our people, nothing gets done Standardize—Find a best way and have everyone do it that way Sustain—Don’t let up
- 16. Cells Natural groups of parts or steps that add value to a product Single piece flow inside the cell One at a time If possible, one operator per cell U-shaped to maximize human efficiency Multi-skilled people required Layout is based on the flow steps
- 17. Standard Work The precise description of each work activity specifying cycle time, takt time, the work sequence of specific tasks, and the minimum inventory of parts on hand to conduct the activity Everyone knows what they are supposed to do at any moment in time
- 18. Rapid Improvement Events A seven week cycle of preparation, action, and follow-up to improve one area or fix a problem People: work leaders, mechanics, workers, supervisor, and a Lean Change Agent Led by the supervisor or work leader Guided by the Lean Change Agent
- 19. A Simple Case Your homework: Read Chapter 6 of Lean Thinking by Womack and Jones. On reserve in the Library. Write-up one page summary, due Friday 3/19.
- 20. Review Concept History and reasons why Principles Value, Value Stream, Flow, Pull, Perfection Tools Value Stream Analysis, 6S, Cells, Standard Work, Rapid Improvement Events
- 21. Acknowledgements “Lean Thinking” by James Womack and Daniel Jones “Toyota Production System” by Taiichi Ohno Simpler Business System, www.simpler.com
Editor's Notes
- #2: Welcome to the basic course on Lean. This course will help you to understand the basic concepts of Lean, the history and principles behind Lean, and some of the basic tools Lean uses to reduce or eliminate waste. Lean is about doing the same, or more, with less. Less waste that is.
- #3: If you measure the actual time a product spends in a process, you will find that in North America, about 95% of it is waste. In Toyota (and only a few Japanese companies are Lean, by the way) about 60% of their processes are waste. Now, they’ve been at this Lean stuff for 50 years, and they still have 60% waste, so some of this waste is not going away. Some is bound to be required by law, regulations, human factors, and mother nature. In an initial look at a process to create something, normally we look at the work being performed, after all that’s where the money is being made. We look to increase the output of the machines, reduce the time being spent in work with faster, more powerful robots, drills, 5-axis machines, etc. We measure a technician’s performance with to-the-second accuracy and try to devise ways to make the job go faster. Lean looks at the entire process from the moment the raw material hits the receiving dock to when the delivery truck departs the shipping dock. All the stops, starts, changes, movement, waiting, stocking, re-stocking, transportation that happen to the part or product as it works its way through factory or office. What we often fail to see is that the vast majority of time, Nothing is happening to the part. It and it’s 25 brothers are waiting for the die punch, or it’s moving to the next step, or it’s being warehoused until the next machine comes open, or it’s waiting for a priority part to move through the system, or it’s on hold for an engineering decision. We could give numerous reasons why Nothing is happening to a part. Lean is about reducing or eliminating that Nothing. Lean is about learning to see the entire process and discovering the waste therein.
- #4: Lean is often the management philosophy and tool of last resort. Why? Because Lean requires a dramatic culture change from “more is better” to “just in time” and what the customer wants. The days of massive production lines making one product and everyone buying a single design or option are over. Companies have to be fast and flexible, willing to change to meet what the customer wants. Global transportation and global commerce means it is becoming more likely that someone out there is willing to do what the customer wants, and that company will get the business and survive. Henry Ford is quoted as saying “You can have any color you want, as long as it’s black”, because black was the color paint that dried the quickest and allowed faster, cheaper production. Several years later, GM came along and started offering colors, even though it was more expensive and took longer to paint. When enough customers started switching, Ford started offering colors themselves.
- #5: Despite the comments on the previous slide, Henry Ford was a genius at manufacturing and establishing the modern assembly line. Mr. Ford was the originator of the lean concept by moving his assembly line into the warehouse and stationing the parts by the line as they were needed and then pulling the cars down the assembly line. As the first to mass-produce autos and with exceptional demand for the product, Henry Ford was able to design a lean assembly line that rivals anything today. Taiichi Ohno was pulled from the Toyota Sewing Company and asked to start overseeing the production of autos as Toyoda moved into automobile production. He visited several U.S. plants and came to realize that while super efficient, Japan could not afford to imitate the U.S. plants. Demand was low, costs were high, and the variety required did not tolerate large batches of vehicles. Toyota had to come up with a way to produce on-demand, high-quality, and reduce costs in order to survive. JIT, “Just in Time” came back to the U.S., along with Demming’s philosophy on management in the late 70’s and early 80’s. James Womack and Daniel Jones decided to investigate the movement and titled their book, “The Machine that Changed the World”, based on the Toyota Production System and how they were able to reach out and capture a huge portion of world market share and U.S. market share as well over the past decade. In 1996, they issued an updated book called: “Lean Thinking”, and that has sparked a number of industries to attempt the Lean conversion as well. MIT, in conjunction with the USAF, started the Lean Aerospace Initiative and came up with a number of papers and recommendations on how to implement a Lean concept in the Aerospace Industry. Boeing, Lockheed Martin and others have converted much of their manufacturing to Lean, including the 717 production line in San Diego and the 747 production line in Seattle. Lean was also spreading through the supplier base to the automotive industry and then on to service and unrelated industries. Again, most were on the brink of bankruptcy or major hardship and turned to Lean to help pull them out of the loss column. The AF Research Laboratory funded Lean concepts at Warner Robins under an experimental fund starting in 1999. The F-15 Wing Shop was literally drowning in work—7 days a week, 3 shifts, multiple locations and they still couldn’t produce wings on time. The SPO was actively looking for a contractor partner to handle some of the workload. TI looked around for possible solutions and found the AFRL sponsored Lean initiative. From there, WR-ALC showed that Lean could work in a repair environment just as well as a manufacturing one.
- #6: Injuries: 1) Hurt people and sap morale and motivation. 2) Cost time and money from both the worker and the company Defects: Cost time and material. Someone has to inspect and reject, someone collects the rejects and reprocesses or throws out, etc Inventory: That’s the company’s money sitting around in a warehouse on the factory floor, when it should be going to the bank Overproduction: Batching and “Extra” parts for just in case cost time and money Waiting time: Counts as extra inventory—the company’s money is just sitting around, gathering dust Motion: Forcing people to get things, find out things away from the work is like the doctor looking for a scalpel during an operation Transportation: Moving the parts from location to location takes time, people, and money Processing: “Throw away the first and last three items”, repackaging, trimming excess material, and wrong tools cost time and money
- #7: Value: What contributes to the product meeting the customer’s needs Value Stream: Those actions taken to produce a part or service Flow: Parts and services should move constantly, “flowing” from the raw material to the finished product Pull: Parts should be “pulled” from the downstream activity, otherwise you have waiting, inventory and overproduction Perfection: Never stop trying to eliminate all the waste, constantly revisit the value stream
- #8: The important point is the customer’s point of view. What is the customer willing to pay for?
- #9: The Value stream is ALL the activities that affect a product. An extended value stream would start at the raw material and finish when the item is discarded by the customer.
- #10: Run the Flow demonstration here
- #11: Just like a supermarket depends on the customer to pull the item off the shelf before they can put more on, factories and offices should rely on system where the parts or services are pulled from one station to the next. Without pull, its like pushing a rope uphill.
- #12: Continuous process improvement. Toyota has been at this for fifty years and they still find waste they can eliminate every year. Use the Ideal state map as the goal—the internal benchmark for reaching perfection.
- #13: We’ll go over each of these in the next few slides. They are the basic tools for a first-level Lean organization to learn and employ.
- #14: The key to starting any Lean effort. You have to know where you are and where you want to go. This tells you what is happening to a part as it moves along the production process. Time studies tell you what is happening at each station, or how fast a process is. A VSM gives you a bird’s eye view of the entire process as well as what it really takes to produce an item.
- #15: Normally, the second step in Lean. Often confused with being “Lean”. Allows you to see the workspace and organize it for flow, safety, and efficiency. Japanese started with 5Ss, U.S. added the Safety S.
- #16: Self-explanatory
- #17: When looking at a Value Steam, it should become apparent that some of the processes “fit together” better than others, natural groupings. By combining those groups, we can work down to one by one flow with one operator handling a multi-task environment.
- #18: Key to production gains. About 80% of productivity gains are through Standard Work efforts. Knowing exactly what is required at every station by the day, hour, and minute means an ordered, efficient flow and exposes the weaknesses of the manufacturing and supply chains.
- #19: RIE are the basic building blocks of the action plan. The important point to remember is that it is the people on the shop floor, the supervisors, the company leadership involved and making this process happen. The Lean Change Agent and the sensei are responsible for the preparation and facilitating the event. Leading the event is a company responsibility. They have to see the waste, and they have to implement the fixes, otherwise Lean becomes another slogan of the month. The Lean Change Agent is responsible for the direction of the program, training, measurements, etc. It is through these events that we take “small bites” of the elephant. Where Lean focuses on one segment of the Value stream, cell, standard work, etc. The team can be as small as 5 or 6, or as large as 30-40 (not recommended). The important thing is to establish boundaries, what is to be worked on, and what cannot be screwed up. Then let the team establish the current state, find a perfect state and establish a future state with an action plan to get there. Or, the event may be to fix a cell, right then and there, so that by the end of the week, the new cell is up and running.
- #20: Self explanatory