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IT-465 Lean Manufacturing



Introduction to
• Outcomes

  – Discuss the origins of Lean

  – Learn why Lean is important in manufacturing
    and service industries

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    Lean Operating Concepts
• Developed and refined by the Japanese
  – “The Toyota Production System” (TPS) and
    later in the USA as” Lean”
• Based on the works of Taiichi Ohno,
  Taguchi, Shigeo Shingo, Deming, Juran,
  and others.
  – The fathers of TQM, Lean, and Six Sigma
    have many common sources with modern
    Lean approaches
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History of Lean Production System

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Another Definition of Lean

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     Another Definition of Lean
Lean “Tool Box”                    • Total Productive
• Introduction to Lean               Maintenance (TPM)
• Prominent figures of Lean        • Kaizen
• Lean is not just for             • Quick change-
  manufacturing                      over/SMED
• Value add and waste              • Pull systems/supermarket
• Waste walks                      • Standardized work
• Spaghetti charts                 • Cellular manufacturing
• Hoshin planning                  • Theory of constraints
• Value Stream Mapping             • Barriers to
• 5S                                 implementation
• Poka-yoke, error proofing        • Quick response mfg

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       History of Lean Production
A Lean Focus: Continuous elimination of waste
  driven by customer satisfaction

Customer Satisfaction:
• Meeting (or exceeding) customer expectations
  for the cost, quality, delivery, and suitability of
  products and services provided
• “Delighting the customer” means providing the
  (benchmarked) best quality, service, and
  delivery – at a fair market price.

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           Customer Satisfaction
Conventional wisdom: Satisfying
  customers costs more

Wastes and Opportunities
• Wastes are any form of wasted
  resources or effort beyond the
  minimum required to satisfy
  customer perceived value-
  added activities in products
  and services provided
• Opportunities are
  activities that are being over-
  looked or not optimized in the
  current business system

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                 Adding Value
• Anything the customer is willing to pay for

Must satisfy all three of the following:
• It changes the shape or form of the process or product
• The customer cares about it
• It’s done right the first time

The Paradox
• Waste elimination increases customer satisfaction while
  at the same time reduces costs to produce goods and

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• Lean has been around a long time
• Lean is based on the collective learning of
  many “guru’s” and many thousands of
  companies over the last 100 years.
• Any kind of business can benefit by
  applying the concepts.
• Lean focus: reducing time and wastes in
  processes, focus on the customer.
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    Prominent Figures of Lean

• Become familiar with the important figures
  in the history of Lean Six Sigma

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          The Origins of Lean
Henry Ford
• The “Father of Lean”
• Considered human waste
  to be the worst form
• Used time and motion
  studies to develop
  assembly line
• Moving assembly line
  reduces operator motion
  and reduces lead time

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          The Origins of Lean
Sakichi Toyoda
• Noticed that if there
  was a problem in
  production, it was
  produced over and
  over, creating a lot of
• Developed the
  concept of Poka-yoke
  “mistake proofing”

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          The Origins of Lean
Kiriichi Toyoda (Sakichi’s son)
• Wanted to create a car company
• Studied Ford – Noticed that too much material
  created delays
• Created concept of “Just-In-Time” – Producing
  the right part in the right place at the right time

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 The Origins of Lean Six Sigma
Taiichi Ohno
• V.P. of Engineering at
• Founder of Toyota
  Production System (TPS)
• Believed in creating a
  profound image for
  people to grasp
• Challenged employees
  by telling them what to
  do, but not how to do it.
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 The Spread of Lean Six Sigma
Shigeo Shingo
• Worked at Toyota with Taiichi
• Perfected the art of Single
   Minute Exchange of Dies
• Promoted TPS principles and
   setup reduction
• Helped to create material
   replenishment based on US
   supermarket concepts –
   kanban “feed me next”
• Sprea Lean principles around
   the world

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 The Spread of Lean Six Sigma
Dr. William Edwards
• Was sent to Japan after
  WWII to assist with
  quality issues
• Developed Plan-Do-
  Check-Act (PDCA)
  approach to defect
• Change agent for Japan’s

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• It is not only for manufacturing
  – Principles apply to service and process
    industries also
• Based on the Toyota Production System
• Make sure that everything flows
• Look for waste at every step of the
  process, eliminate it, and make sure it
  never comes back
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• Lean Service
  – Focus on reducing service time
  – Every process has waste, regardless of industry
• Lean Process
  – Create product “just-in-time”
• Deliver what the customer needs, in the quantity
  needed, when the customer needs it.
  – Continue to focus on improvement

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       Value Add and Waste
• Understand the concept of value add
• Understand the types of waste

What is Lean Manufacturing
• The fundamental principal of Lean
  Manufacturing is to eliminate waste
  – “Create flow, eliminate waste”
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What is Lean manufacturing

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Five Steps of Lean Implementation
1. Specify value – identify what is value and what
   is not
     •     Anything the customer is willing to pay for
     •     The process object has to be physically changed
     •     Must be done right the first time
2.       Map the value stream
3.       Create flow
4.       Pull
5.       Pursue perfection

Waste is not value added
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            Eight Types of Waste
• Defects
• Overproduction
• Waiting
• Non-utilized talent
• Transportation
• Inventory
• Motion
• Extra processing

The 8 types of waste take up 95-
  98% of all lead time.

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• Any part not made, or service rendered, to the
  customer’s specifications the first time
• Money and time wasted

• Lack of process controls
• Poor quality of incoming materials
• Inadequate operator training
• Poor work instructions

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• Faster than needed

• Sooner than needed

• More than needed

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Time lost when people, material or
  machines are waiting

• Unbalanced workload
• Equipment breakdowns
• Long set-up times
• Poor material handling practices
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         Non-Utilized Talent
Wasted potential for improvement results
 when people doing the work are not
 consulted for ideas on improving the
 methods of work

• Old guard thinking, politics, business
• Low or no investment in training
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Transportation of parts and materials around
  a facility creates waste

• Poor plant layout
• Large batch sizes
• Large storage areas

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Any material in excess of the one piece required for the
  next step in production

Three Types:
• Raw material
• Work-in-progress
• Finished goods

• Inventory held “just-in-case” problems arise
• Unreliable shipments by suppliers
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Movement of people or machines that does
 not add value to product

• Poor plant or workstation layout
• Poor workplace organization and
• Sorting/looking for items
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             Extra Processing
Doing more than minimum required to transform material
  into an acceptable product

• Accommodate perceived customer needs
• Redundant approvals/inspections required
• Unnecessary reports produced

• Duplication
• Rework
• Engineering changes

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                 Wrap Up
8 types of waste:
• D.O.W.N.T.I.M.E.

3 parts to Value Add
• Customer willing to pay for it
• Changes the process object
• Done right the first time

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Five Steps of Lean Implementation
1.       Specify value
2.       Map the value stream
3.       Create flow – address defects to create flow
4.       Pull
5.       Pursue perfection

Poka-yoke (mistake proofing)
     •     The removal of all potential causes of error through design,
           process, or mistake-proofing devices, to ensure consistent
           process results
     •     Poka-yoke helps build quality into processes to achieve “zero

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               Zero Defects
The goal is to understand the concept and practice
  of zero defects and how to develop Poka-yoke to
  eliminate these defects

If 99.9% were acceptable, you would not mind if..
• Connection post offices would lose 10,271
   pieces of mail per day
• O’Hare International Airport would have 1,264
   unsafe arrivals/departures per year
• Doctors at New York hospitals would drop 288
   newborn babies per year.

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                 Tracking Defects
Typically defect rates are tracked by:
• Quantity
• Kind
• Percent

With zero defects thinking they are tracked at:
• The point at which defect is discovered
• The point at which defect occurred

• I do not ACCEPT defects
• I do not MAKE defects
• I do not PASS ON defects

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             Defects vs. Errors
Poka-yoke – methods or devices to improve product quality
  and ensure consistent process results

These devices:
• Prompt feedback and action as soon as the defect or
  error occurs
• Perform 100% auto-inspection

The first step to Source Inspection is to distinguish between
  errors and defects
• “Defects” are the results
• “Errors” are the causes of the results

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The most common manufacturing errors:
• Processing errors or omissions
• Assembly omissions or inclusion of the wrong part
• Processing wrong work piece
Conventional Approach to Human Error
• Make excuses
• Place blame and/or expect defects
• Catch at final or sampling inspection
Mistake-proofing Approach to Human Error
• Eliminate the possibility of the mistake
• Find the root cause and eliminate
• Ask why the process failed
• Apply mistake-proofing device for 100% inspection
• No defects generated

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      Machine/Equipment Error
Recognize that machines make errors (drills break, tools
  become dull, fixtures wear, etc.)

A methodology for developing Poka-yoke
• A reliable method
• A standard – a work method or procedure
• A reliable method – an effective standard

A reliable method includes only those elements which,
   when followed, cause a predictable/desirable result, and
   when not followed, result in a predictable defect.

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• Error Proofing

  – Poka-yoke – Japanese for “error proofing”

  – To achieve zero defects

  – Make it impossible to produce defects

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