37022309 lean-simple-solutions
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Lean SystemsLean Systemsby by
Sashi.PrabhuSashi.Prabhu
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Lean SystemsLean Systems
The ability to make exactly
what the customer wants
as they order it.
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Benefits: Benefits: TangibleTangible & & IntangibleIntangible
Improved TeamworkImproved Teamwork
Simpler SchedulingSimpler Scheduling
Greater FlexibilityGreater Flexibility
Market Market
ResponsivenessResponsiveness
Increased SalesIncreased Sales
0 100
Lead Time Reduction
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
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Time & Cost RelationshipTime & Cost RelationshipTime & Cost RelationshipTime & Cost Relationship“The longer an article is in the process of manufacture and the more it is moved about, the greater its ultimate cost.”
--Henry Ford, 1926
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History of LeanHistory of Lean1910-1928 1910-1928 Ford Production SystemsFord Production Systems1942-46 1942-46 Kaiser’s Liberty Ships Kaiser’s Liberty Ships 1970 1970 Toyota Production System Toyota Production System 1980 1980 If Japan Can, Why Can’t WeIf Japan Can, Why Can’t We1980 1980 JIT, Cellular, TOCJIT, Cellular, TOC1989 1989 Machine That Changed the WorldMachine That Changed the World1995 1995 Lean EnterprisesLean Enterprises1998 1998 Lean Service OrganizationsLean Service Organizations
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““Lean Thinking”Lean Thinking”A Continuous Improvement Approach A Continuous Improvement Approach
focused on focused on eliminating wasteeliminating waste in the in the entire operationentire operation
Breaking the status quo by making a Breaking the status quo by making a series of small immediate changes using series of small immediate changes using conventional wisdom (conventional wisdom (common sensecommon sense))
Involvement of stakeholders in the Involvement of stakeholders in the processprocess
Measuring the results of the changes Measuring the results of the changes --
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Definition of WasteDefinition of WasteDefinition of WasteDefinition of Waste Anything More Than the Anything More Than the
Absolute Minimum Resources of Absolute Minimum Resources of Material, Equipment and Material, Equipment and
Personnel to Personnel to Add Value for the Customer.Add Value for the Customer.
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Total Order Lead Time Total Order Lead Time BreakdownBreakdown
0 1 2 3 4 5
Elapsed Time
Value Added Ratio =Value Added Time
Elapsed Time
VA
NVA
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Value Added Ratio Value Added Ratio CalculationCalculation
Value Added Ratio =
VA
NVA
1.1
5.3= 20.7 %
0 1 2 3 4 5
Elapsed Time
5
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The Eight Process WastesThe Eight Process Wastes
1.1. Overproduction-Large Overproduction-Large BatchesBatches
2.2. Extra Extra TransportationTransportation 3.3. Excess Excess InventoryInventory4.4. Employees Employees WaitingWaiting5.5. NVA NVA ProcessingProcessing6.6. Excess Excess MotionMotion7.7. Defects & Defects & ReworkRework8.8. Underutilized Underutilized BrainpowerBrainpower
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Eight Service Industry Eight Service Industry WastesWastes
1.1. ErrorsErrors in documents in documents
2.2. TransportTransport of documents of documents
3.3. Doing Doing unnecessaryunnecessary work not work not requestedrequested
4.4. WaitingWaiting for the next process for the next process stepstep
5.5. Process of getting Process of getting approvalsapprovals
6.6. Unnecessary Unnecessary motionsmotions
7.7. BacklogBacklog in work queues in work queues
8.8. UnderutilizedUnderutilized employees employees
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The Lean ToolboxThe Lean Toolbox
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5 S’s Campaign5 S’s Campaign
1.1.SortSort
2.2.SystematizeSystematize
3.3.Spic & SpanSpic & Span4.4.StandardizeStandardize
5.5.Self –discipline.Self –discipline.
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With an Organized With an Organized Workplace :Workplace :
DefectsDefects are reduced are reduced SafetySafety is improved is improved WorkersWorkers are more efficient are more efficient InventoryInventory is reduced is reduced MaintenanceMaintenance is improved is improved CleanupCleanup time is minimized time is minimized
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Quick ChangeoverQuick Changeover
Traditional setup and large batches
Setup Run
Quick change and small batches
Externalized & Streamlined Tasks
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Remember: nothing is being produced!
So, set-up time is Non Value Added
Setups need to be eliminated, integrated, or
simplified
Why Reduce Set-ups?Why Reduce Set-ups?
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Push: Schedule-based
Pull: Consumption-based
““Pull” Production versus Pull” Production versus “Push”“Push”
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PullPull Systems - AdvantagesSystems - AdvantagesFasterFaster response to the customer response to the customer
EasierEasier scheduling, inventory and control scheduling, inventory and control
ReducedReduced effort, space, cost and investmenteffort, space, cost and investment
But…..But…..
A different way of doing thingsA different way of doing things
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Total Productive Total Productive MaintenanceMaintenance
A systematic approach to eliminating
unscheduled equipment downtime
Enlists the intelligence of the operators
Provides a structure for any company to:
• chart & analyze equipment issues
• identify root causes of problems
• implement permanent corrections
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Overall Equipment Overall Equipment EffectivenessEffectiveness
DOWNTIME Breakdowns Changeovers Adjustments
SPEED Stoppages
Slow-downs
DEFECTS Process Defects Reduced Yields
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Types of Poka Yoke Types of Poka Yoke DevicesDevices
PreventionPreventionThe process is designed so that it is The process is designed so that it is
impossible to make an error impossible to make an error
Removes any need to correct a errorRemoves any need to correct a error
DetectionDetectionSignals the user an error has been Signals the user an error has been
made so the user can quickly correct made so the user can quickly correct the problemthe problem
Stops defects from reaching customerStops defects from reaching customer
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Summary: Poka-Summary: Poka-Yoke…Yoke…
Does not replace a quality system, but
it is used to supplement a quality system.
Avoids Important Wastes
- rework in downstream operations
- defects from reaching customers
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Functional LayoutFunctional Layout
Interrupted product flowUnbalanced operationsLarge batchesLonger time to completeComplex material handling -
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Cellular WorkplacesCellular Workplaces
FG RM
Includes Every StepIncludes Every Step
Source InspectionSource Inspection
Point of Use StoragePoint of Use Storage
Flexible OutputFlexible Output
Reduced Lot SizeReduced Lot Size
Simplified HandlingSimplified Handling
Visual Goals & Visual Goals &
MetricsMetrics
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Original Office LayoutOriginal Office Layout
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Cellular Office LayoutCellular Office Layout
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Keys to SuccessKeys to Success1.1. Keep things Keep things simplesimple
2.2. Focus on your Focus on your processprocess
3.3. Look for all types of Look for all types of wastewaste
4.4. Break old Break old habitshabits
5.5. Work through Work through mistakesmistakes
6.6. When problems occur, be When problems occur, be
flexibleflexible
7.7. Keep improving—Keep improving—everydayeveryday --55
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Share the mutual Share the mutual benefits ofbenefits of
DecreasingDecreasing Inventory and batch Inventory and batch
sizessizes Labor costs and Labor costs and
overtime overtime Capital investmentsCapital investments
IncreasingIncreasing Customer responseCustomer response ProductivityProductivity FlexibilityFlexibility QualityQuality
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Thanks very muchThanks very much