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Five Steps to Lean. Define end-customer value for a specific product specific capabilities specific price specific time Identify entire value stream for each product and eliminate waste product realization order fulfillment production Make the remaining value steps flow

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five steps to lean
Five Steps to Lean
  • Define end-customer value for a specific product
    • specific capabilities
    • specific price
    • specific time
  • Identify entire value stream for each product and eliminate waste
    • product realization
    • order fulfillment
    • production
  • Make the remaining value steps flow
    • no waiting, downtime, scrap within or between steps
    • continuous flow instead of batch-and-queue
five steps to lean continued
Five Steps to Lean (continued)
  • Design and provide what the customer wants only when the customer wants it –let the customer pull the product from the value stream
  • Pursue perfection
    • by refining definition of value
    • getting value to flow faster
old system for making stretch wrappers
Old System for MakingStretch Wrappers

Storage of raw materials

Sawing

Machining

Welding

Subassembly

Storage of finished goods

Storage of incoming components

Storage of parts in process

Storage of Painted Frames

Crating

Touch-up

Final Assembly

Frame Painting

evils of batch and queue
Evils of Batch-and-Queue
  • Increases work-in-process inventory
  • Hides inefficiencies, lost opportunities
  • Lengthens replenishment cycle
  • Creates finished good inventory
  • Slows customer response time
  • Risks obsolete products
new continuous flow system
New Continuous Flow System

Incoming materials

Frame painting

Ship

finished

goods

one cell s continuous flow
One Cell’s Continuous Flow

Frame Painting

Sawing

Machining

Welding

Final assembly work

Subassembly of roll carriage

Subassembly of control module

Testing and shipping

old system for processing orders
Old System for Processing Orders

Sales staff

Purchasing

Regional Sales Coordinator

Quoting

Order entry/scheduling

MRP master

schedule

Production

work

orders

Engineering. Applications

Design and BOM

Production expediters

Credit checking

new continuous flow system for processing orders
New Continuous Flow Systemfor Processing Orders

Order entry/Credit checking

Scheduling by product

Sales

Eng. app. by product

Purchasing by product

Quick response team for price quotations

Mfg.

old and new systems for developing new products
Old and New Systems for Developing New Products

Product definition

Marketing

Ind. Eng.

Purchasing

Engineering Specs

Team

Leader

Design in concurrent Development

Mech. Eng.

Launch

Elec. Eng

Mech. Eng.

Elec. Eng.

Mfg. Eng.

Mfg. Eng.

Ind. Eng.

outcomes
Outcomes
  • Number of shipped machines doubled
  • Produce a machine in half the space
  • Number of defects fell from 8 per machine to .8
  • Better understanding of costs
  • Assigned freed-up workers to Kaikaku team
  • MRP used only to provide suppliers with long-term production forecasts
  • Kanban system used to order parts
  • S-Series was developed in ¼ time of predecessor, ½ of engineering hours
lean production principles henderson and larco
Lean Production Principles -Henderson and Larco

Lean Production

Workplace safety, order, cleanliness

JIT

Production

Six Sigma

Quality

Pursuit of Perfection

Empowered

Teams

Visual Management

the toyota 5s system
The Toyota 5S System
  • Sort - Separate out all items that are unnecessary and eliminate them complete from the workplace.
  • Straighten - Arrange all essential items so that that the are clearly marked and easily accessed, e.g., kanban squares.
  • Scrub – Scrub all machines and the work environment to maintain immaculate cleanliness
  • Systematize – Make cleaning and organizing a routine practice as part of the work day
  • Sustain – Sustain commitment to the previous four steps and provide a constantly improving process
jit production
JIT Production
  • JIT production means “build to customer demand”
  • Single piece flow means there is a maximum of one piece between each operation
  • Value-added activities should move along without interruption, and non-value-added activities eliminated (aided by process-mapping)
  • Takt time is the “drum beat of consumption”
  • All tasks should take about the same time. Rebalance them if demand fluctuates or workers are absent. Multi-skilled workers facilitate this.
  • Kanban links customer demand to final assembly, and then to internal and external suppliers (synchronization)
  • Changeover time should equal one takt time for final assembly operations
takt time
Takt Time

If customers order 100 products per day, what is the takt time?

If customers order 80 products per day, what is takt time?

If customers order 120 products per 8 hour shift, what is takt time?

What if some workers are idle part of the time?

What if some workers build inventory in front of their work stations?

visual management
Visual Management
  • Scoreboards, e.g., output compared to goals, sales and profits to date, quality, inventory turns, training schedules
  • Kanban cards, kanban squares, shadow boards
  • Flow through racks
  • Limited number of rework bays
  • Color-coded lines, parts
  • Andon lights
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