Lean Manufacturing Overview - MBA Consulting Class
- 1. Using Lean Thinking Process Improvements in Light Manufacturing:
- 2. What is Lean? Lean is a process improvement and management philosophy modeled heavily on Toyota Based on three beliefs of how process improvement can be achieved: Minimize waste in all forms Continually improve processes and systems Maintain respect for all workers
- 3. What is Waste? What does waste mean to Lean? Over Production – Creating more product or components than needed. Ties up $ as inventory. Inventory – Excess raw materials, finished products, and Work-in- Process (WIP). Ties up $ and incurs storage and handling costs. Waiting – Delays that prevent work. Also delays getting paid by the customer. Unnecessary transport or human motion– Unnecessary movement of workers and material (physical distance). Increases lead time and labor costs. Unnecessary processing – Extra steps that don’t add value. Defects – Increases material and rework costs.
- 4. How do you reduce waste? Over Production Use a pull system instead of a push system Just-in-time Manufacturing Inventory Production control with Kanban Reduce batch sizes
- 5. How do you reduce waste? Waiting Continuous Flow Manufacturing Synchronization Remove bottlenecks Movement or Transport Reduce Travel distance Reduce unnecessary movement Convert functional layouts to cellular layouts
- 6. How do you reduce waste? Unnecessary processing Identify work that does not add value and find ways to remove it Defects Standardize work and quality Improve quality of craftsmanship will direct hand offs
- 7. Where do you begin? Establish a Baseline Understand the business Breakdown the flow process Ask questions and then ask more. Investigate Apply Lean tools Don’t Work in a Vacuum
- 8. LEAN TOOLS Process Flow Diagrams Spaghetti Diagrams Swimlane Diagrams Value Stream Maps
- 9. Process Flow Diagram The Process Flow Diagram (PFD) shows the logical and physical flow of product or component within a given system
- 10. Process Flow Diagram Examples Chemical Processes Image: www.heatingoil.com Software Application Development “Getting Things Done” Image: www.zenhabits.net Image: www.techjini.com
- 11. Spaghetti Diagram Plant Layout
- 12. Spaghetti Diagram Plant Layout with material flows
- 13. Swimlane Diagrams Swimlane Diagram – A diagram that categorizes groups of activities in a manufacturing process By operator, department, or location Each group is shown on one lane Actions within each group are shown in sequence within each lane Connections between lanes represent transfers of material or information between groups The Swimlane can visually emphasize the complexity of a process and highlight problem areas
- 15. Value Stream Map Value Stream Maps track the flow of material and information
- 16. Have a baseline, now what? Find and area where you can add value, and implement it.
- 18. Widget Example – Baseline State Making a hypothetical widget requiring cutting, polishing, welding, testing operations Swimlane Diagram Layout and Spaghetti Diagram Baseline widget is transferred between 3 operators and travels 80’.
- 19. Widget Example – Lean State Making a hypothetical widget requiring cutting, polishing, welding, testing operations Swimlane Diagram Layout and Spaghetti Diagram Lean widget only needs 1 operator and travels the minimum distance. Manufacturing is now continuous.
- 20. Widget Example - Using Lean Capture the baseline sequence Capture the order of operations Where are operations done and on what equipment? Which employees do what and when – how far do they move? How long does it all take? How long until first article is complete?
- 21. Widget Example - Adding Value If each operation uses a batch size of 100 and takes 1 hour, then: Total Production Time and Total Lead Time are 400 hours (!). Total distance traveled is 80’. If batch size is reduced to 20, then: Total Lead Time is 80 hours (LARGE % reduction) Total distance traveled is 400’. If widgets are produced by one operator continuously, then: Total Lead Time is 4 hours (AMAZING). Total distance traveled is negligible.
- 22. Value added with Lean Reductions in waste Reductions in labor costs Time Savings Total Production Time Total Lead Time faster payments, more throughput, more jobs Other improvements Quality Organization Efficiency Utilization Quantifying wherever possible
- 23. What is the Key to Lean? Continuous Improvement Continuous product and process improvement and the elimination of non-value added activities is at the core of lean philosophy. Improving the flow of material through new ideal system layouts at the customer's required rate would reduce waste in material movement and inventory. Incremental There is always room for further improvement
- 24. What is the Key to Lean? Continued Pursue Perfection Lean Office 5S Synchronization Kaizen Poke Yoke
- 25. Conclusions
- 26. Plan For Every Part (PFEP)