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Lean Concepts Inc.Establishing World Class Manufacturing Practices                           (Please Turn Off or Silence Cell Phones)John VeatchLean Concepts Inc.17710 Willowcreek WayWestfield, IN 46074johnveatch@lean-concepts.comAll Material Herein © 1998 Lean Concepts Inc. Revised  2010 1
Lean 101John VeatchLean Concepts Inc.17710 Willow Creek WayWestfield, In 46074johnveatch@lean-concepts.com2
AgendaIntroductions
History
Need for Change
Lean Overview
ReviewChronology of Lean
A Chronology of LeanEli Whitney                1799Part StandardizationFrederick W. Taylor  1890Time Study Henry Ford                1910Mass ProductionW. Edwards Deming 1950SPC/14 Pts & 7 SinsJoseph Juran            1952TQMTaiichi Ohno   1950 - 1972 JIT/TPS
Change6
The Workplace Must AdaptLean ManufacturingCustomer Order Driven
Pull Process
Near -zero Idle Inventory
Synchronized Feeder Processes
Prevent Quality Problems
Problems are Made Obvious
Driven by Operating Efficiency +Throughput + InventoryTraditional ManufacturingSchedule to Forecast
Push Process
Excessive Idle Inventory
Remote Subassemblies
Quality Problems are Hidden
Driven by Operating EfficiencyWhat are Lean Concepts?Just-In-Time   (JIT)JidokaProduction LevelingQuality Assurance
Just In Time Producing just what is needed, when it is needed, in the amount needed, with the minimum material, equipment, labor, and space.
JIT PrinciplesCreate flow productionEstablish “TAKT” timeIncorporate pull production
JIT Production CharacteristicsMachines in order of process
Small and inexpensive equipment
One piece flow production
Multi-process handling workers
Easy moving/standing operations
U Cell Layout, counter clockwise
Production paced to “Takt” time
Standard operations definedLead Time DefinitionThe amount of time it takes to convert raw material into finished goods and ship them to the customer.
	3 Elements“Stop the Line” authority for workers; find the root cause of problemsMachines can detect abnormalities; only one defect can be madeSeparate human from machine work; multi-process handlingJidoka
Production LevelingThe process of adapting production to variable demand so as to utilize minimum material, labor, equipment, and spaceResults in Cost Reduction!!
Kanban is a “Pull System” which was developed by Toyota to encourage rapid response to the next process (customer) in terms of requirements and changes in market demandReduction of inventory and cost are the “Result” of Kanban, not the PurposeKanban highlights opportunities to Kaizen the processKanban Philosophy
Prevents waste created by overproductionPromotes small lot size production (less storage space)Promotes reduced lead timesVisualizes problems for further KaizenCommunicates production information (visual control)Benefits of Kanban
Value Added ActivityAn activity that transforms or shapes raw material or information to meet customer requirements.Value Added Test:The customer must recognize the value.                 (Be willing to pay for it)The product must physically change during the process.The activity must be done right the first time.
Non Value Added ActivityAny activity that consumes time, resources, (manpower, material, machinery), and /or space, but does not add value to the product or service itself.Activities that do not meet all of the three test rules.Some non-value added work may be necessary.
Current State/Future StateLearning to See

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Lean 101 2 Hour 2011