xyz company 1. xyz company 2 lean manufacturing is a way of life. it is a never ending process……...
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XYZ Company
1
XYZ Company
2
Lean Manufacturing
Is a way of life. It is a never ending process……
Its tools need to tailored to meet XYZ Company’s needs.
Not a “one size fits all” method.
XYZ Company
3
Lean Manufacturing DefinedLean Manufacturing Defined
“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”
--The MEP Lean Network
XYZ Company CUSTOMERSUPPLIER
WASTE
WASTE WASTE
WASTE
XYZ Company
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XYZ CompanyXYZ Company
“Strealthy” growth
OUR OUR CUSTOMERCUSTOMER
Satisfaction
ASSEMBLY ASSEMBLY PROCESSPROCESS
Elimination ofmuda or waste
Lean Manufacturing ObjectivesLean Manufacturing Objectives
XYZ Company
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The Principles of Lean ManufacturingThe Principles of Lean Manufacturing
Focus on Value - Your customer determines value.
Eliminate Waste - Eliminate all forms of waste.
Build only what customer Pulls Quality, Quality, Quality
….Jim Womack
XYZ Company
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What is Waste?What is Waste?
“Anything that adds Cost to the product
without adding Value”
“Anything that adds Cost to the product
without adding Value”
Value = ?Ask yourself – IS MY CUSTOMER PAYING FOR THIS ?Ask yourself – IS MY CUSTOMER PAYING FOR THIS ?
Yes – Can I do it faster, better, safer ?
No – Why am I doing it ?!
XYZ Company
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COSTS INCREASES
PROFIT DECREASES
V
V
V
Cost – Profit RelationshipCost – Profit Relationship
XYZ Company
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The Never Ending Cycle…..The Never Ending Cycle…..
Low CostHigh QualityAvailability
Value !!Value !!
XYZ XYZ CompanyCompany
OUR OUR CUSTOMERCUSTOMER
XYZ Company
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How can we make/increase PROFITS ?How can we make/increase PROFITS ?
P
XYZ Company’s Cost
Selling Price
Selling Price
PIncrease
our selling price
P Decrease our cost
Decrease our cost !!! - HOW ?
XYZ Company’s Cost
XYZ Company
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7 Forms of Waste7 Forms of Waste
Value added
Non-value added
LEAN = ELIMINATING THE WASTES
Value - Add Value added
Value - Add
XYZ Company
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OverproductionOverproduction – Producing faster than consumption
DefectsDefects – Variations and complexity
Non-value added processingNon-value added processing – Lack of standard methods
WaitingWaiting – Producing slower than consumption
TransportationTransportation – Disconnected operations
Excess motionExcess motion – Lack of better processes
Excess inventoryExcess inventory – Long lead times, ……..
7 Forms of Waste7 Forms of Waste
XYZ Company
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Bricklaying, through late Nineteenth CenturyBricklaying, through late Nineteenth Century
• The brick weighs about five pounds (2.3 kg). How much is the worker actually raising and lowering every time he bends over for another brick?
Source: Levinson Productivity Systems, P.C.http://www.ct-yankee.com/lean/usa.ppt
XYZ Company
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Bricklaying, after Frank GilbrethBricklaying, after Frank Gilbreth
• The joke about the underachievers and the light bulb isn't so funny any more.
• Lesson: waste can, by long habit ("living with it," "working around it") become built into a job.
Source: Levinson Productivity Systems, P.C.http://www.ct-yankee.com/lean/usa.ppt
XYZ Company
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Inventory Level
INVENTORY – Ship Analogy
Raw Material
Finished Goods
Downtime
Poor Training
Poor Quality
Long Lead Time
Poor Communication
Poor Layout
Poor Scheduling
No Standards
Poor Housekeeping
Supplier Relations
Long Setups
Scrap
GOOD OR BAD ?
XYZ Company
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Inventory Level
Raw Material
Finished Goods
Downtime
Poor Training
Poor Quality
Long Lead Time
Poor Communication
Poor Layout
Poor Scheduling
No Standards
Poor Housekeeping
Supplier Relations
Long Setups
Scrap
Cannot reduce inventory instantaneously!
INVENTORY – Ship Analogy
XYZ Company
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Inventory Level
Raw Material
Finished Goods
Downtime
Poor Communication
Poor Layout
Poor Scheduling
No Standards
Poor Housekeeping
Supplier Relations
Long Setups
Scrap
Solve problems – Remove rocks before lowering inventory!
INVENTORY – Ship Analogy
XYZ Company
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Identify waste in your cellIdentify waste in your cell
Counting
Sorting
Storing
Invoices
Rework
Re-pack
Scrap
Load/Unload
Containment
Expedite
XYZ Company
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Lean Manufacturing Tools Lean Manufacturing Tools
Value stream mapping Quality at the source Workplace organization: 5S TPM Visual Management Set-up reduction (SMED) Batch size reduction (one-piece-flow) Cellular manufacturing Standardized work (CYCLE Time) Work balancing (TAKT Time) Production leveling / smoothing / Heijunka Point-of-use systems Kanban Kaizen
XYZ Company
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Lean Building BlocksLean Building Blocks
Quick Changeover
Standardized Work
Batch Reduction
Teams/Employee Involvement
Quality at Source
5S SystemVisual
Systems
Plant Layout
POUS
Cellular/FlowPull/Kanban
TPM
ValueStreamMapping
Continuous Improvement
Source: The MEP Lean Network
XYZ Company
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Toyota Production SystemToyota Production System
Best Quality - Lowest Cost - Shortest Lead TimeThrough Eliminating Waste
Just in Time“The right part
at the right timein the right amount”
• Continuous Flow• Pull System• Level Production (Heijunka)
Jidoka“Built in Quality”
• Manual / Automatic Line Stop• Labor-Machine Efficiency• Error Proofing• Visual Control
Flexible, Capable,Highly Motivated
People
Standardized WorkTotal Productive Maintenance
Robust Products & ProcessesSupplier Involvement
Operational Stability