Concentrated Overview of Lean Concepts and Processes

1. Concentrated Overview of Lean Concepts and Processes Bill Motley, CEM, PMPProgram Director, Production, Quality & Mfg Curricula Development and Support Center

2. LEAN zero waste, max flexibility, max value stream E-MFG the use of the Internet and all other electronic means to manage the entire manufacturing enterprise SCM all activities associated with the flow and transformation of materials and its related information from source to end user

3. WHAT IS LEAN ? • Lean is the Toyota Production System • Lean systems use less of everything…half the people…half the space…half the inventory…half the investment…half the engineering effort… • Lean means right thing, right place, right time, right quantity • A lean system adds value by eliminating waste, being responsive to change, focuses on quality and enhancing the effectiveness of the workforce • Lean systems focus on maximizing the value stream while eliminating all waste • Lean is a way of thinking that focuses on constantly shortening the order to delivery time by maximizing the flow of information and material while reducing cycle time.

4. VALUE • The customer must be willing to pay for it • It must transform the product • It must be done right the first time • If you pulled this step, would the customer miss it? If no, then why are you doing it?

5. CONCERN FOR PEOPLE and CONTINUOUS IMPROVEMENT

6. Lean is a System • Product Development -3P- • Manufacturing -Partnering- • Supply Chain

7. PRODUCTION PREPARATION PROCESS3P • PRODUCIBILITY, MISTAKE PROOFING & QUALITY ARE DESIGNED-IN • THE PRODUCTION SYSTEM IS CONSIDERED A PRIMARY DESIGN CONSTRAINT. ANY LIMITATIONS ARE CORRECTED OR THE DESIGN IS CHANGED. • THE PRODUCTION SYSTEM (LAYOUTS, MACHINE CONFIGURATIONS, AND MAT’L MOVEMENT) IS PLANNED, SIMULATED, EVALUATED AND IMPROVED USING 3D MODELS AND COMPUTER MODELS BEFORE PRODUCTION STARTS – VIRTUAL KAIZEN • 3P IS PLANNED AND MANAGED USING THE IPPD PROCESS – CROSS FUNCTIONAL PARTICIPATION FROM ALL INVOLVED FROM THE SHOP FLOOR TO THE CHIEF DESIGN ENGINEER

8. Customer Focus at the CORPORATE LEVEL • HIGHEST QUALITY as defined by the customer • LOWEST MFG COST • SHORTEST LEAD TIME

9. Lean Priorities at the FACILITY Level 1. Environmental Safety and Occupational Health 2. QUALITY 3. PRODUCTIVITY 4. COST

10. Operating Philosophies on the SHOP FLOOR • MAKE ONLY WHAT IS NEEDED • NEVER PRODUCE A DEFECT – NEVER PASS A DEFECT ON • ELIMINATE ALL WASTE FOCUS ON FLOW AND CYCLE TIME REDUCTION

11. What is Waste? • Waste is anything that does not add value for the customer or ……… • Anything your customer is not willing to pay more for.

12. The Seven Wastes in Manufacturing(Muda) 1.Over Production--Producing more material than is needed before it is needed is the fundamental waste in lean manufacturing. 2. ExcessInventories--Material sits taking up space, costing money, and potentially being damaged. Problems are not visible. 3. Waiting--Material waiting increases lead time and cost without adding value to the product. 4. Producing Defective Products--Defective products cause rework, impede work flow and lead to wasteful handling, time, and effort. 5. Wasted Employee Motion--Toolrooms. 6. Transportation--Moving material between work sites does not add value. 7. Over-Processing--Over engineering, inspections, layers of document review, unnecessary requirements.

13. House of Lean • Stability • Standardized Work • Just in Time • Jidoka (Autonomation) • Involvement by all • Hoshin Planning

14. STABILITY • 5S (6S) • TOTAL PRODUCTIVE MAINTENANCE

15. Lockheed Martin’s “6S” Visual Factory & Japanese 5S • SERI • IDENTIFY/SEPARATE NECESSARY FROM UNNECESSARY • SEITON • PLACEMENT/IDENTIFICATION OF NEEDED WORK ITEMS SORT STRAIGHTEN Clearly Distinguish Needed Items From Unneeded Items And Eliminate The Latter Keep Needed Items In The Correct Place To Allow For Easy And Immediate Retrieval SAFETY Identify Danger And Hazard SUSTAIN SEISON MAINTAINING A CLEAN WORK PLACE SHINE • SHITSUKE • NOTATIONAL METHOD FOR THE CONFORMANCE TO RULES Keep The Workshop Swept And Clean Maintaining Established Procedures Consistently Applying 6S Methods In A Uniform And Disciplined Manner STANDARDIZE • SEIKETSU • STANDARDIZATION • FOR EASE OF USE

16. Total Productive Maintenance • The Goals: - Zero breakdowns - Zero defects - All machines functioning optimally • How: - Operator-centered maintenance - Scheduled maintenance that is always conducted - Proper operation & set-up of machinery - Proper selection of machinery - Use of FMEA to know how machines could fail and the effects

17. STANDARDIZED WORK • TAKT TIME • CELLULAR PLANT FLOOR LAYOUTS • STANDARDIZED WORK PROCESSES

18. TAKT TIME • The available daily production time divided by the rate of daily Customer demand. Takt time sets the pace of the production process to match the rate of customer demand and becomes the “heartbeat” of the production system. If our daily order is 900 units and we operate two 450 minute shifts, our Takt time is 900/900 = 1 minute. We should see a product moving past every one minute. We want our cycle time and takt time to be the same.

19. 2 3 4 1 Finished goods Raw material Cell Concept • Theory: One piece continuous flow with all required tools and parts at each work station • Benefits: • Improved cycle time • Improved quality • Reduced WIP • Reduced artisan ‘travel’ time • Eliminating NVA activities

20. Standardized Work Processes:reduces process variability and allows you to find the root causes of problems easier. • Improve the current process using IE methods, and new technology, if appropriate. • Train everyone. Re-train regularly. • Everyone performs the process the same way, every time using detailed work instructions and job aids. No exceptions. • Repeat continuously.

21. Just-In-Time • Only make what is needed (Sold) • When it is needed • In the smallest amount needed (with the Minimum Materials, Equipment, Labor and Space) Just-In-Time is NOT a Zero Inventory System.

22. B. Productivity: Minimize wasted movement, warehouses, and double handling C. Productivity: Problems are identified and solved real time A. Quality: Work is passed directly to next Process with no defects F. Cost: Reduced Inventory Levels D. Lead Time: Shortest supply chain, highest flexibility to satisfy customer demand E. Team Member Morale: Value of work is more visible, recognized Benefits of Creating Flow Source: Toyota

23. JIT Requires: • Pull instead of Push • Heijunka – Production Leveling • Kanban– a signal to produce • Delivery to point of use • World class suppliers • Very high quality • Little cycle time and product variability

24. 5000 Mod A, 5/10=0.5 .5 x 500 = 250 per day 4000 Mod B, 4/10=0.4 .4 x 500 = 200 per day 1000 Mod C, 1/10=0.1 .1 x 500 = 50 per day This prevents bulges in our inventory levels and our suppliers’ levels. If we produce defects in one model, it reduces the number of defects produced before they are detected. This helps prevent worker boredom. Small set-up/change-over time makes this technique possible. Production Leveling/SmoothingThe daily production schedule reflects demand by product variant %.Example: The requirement is 10000 fuzes per month (20 days). There are 3 variants of this fuze. We will need to produce 500 per day.

25. Setup Reduction • Setup time is the time from the last good part of the previous setup to the first good part of the new setup. • Single minute exchange of die – doing it in less than 10 minutes. • Move from internal to external setups. Do as much as possible while a machine is running. Large lot sizes are the single largest impediment to flow! To reduce lot sizes, we must make small lot sizes economically feasible by reducing setup time.

26. 1945-1954 1955-1964 1970- Present 2- 3 hours 15 minutes < 3 minutes SET UP TIME TOYOTA PRESSING DEPARTMENT

27. A S L T E O R P T DEFECT BREAKDOWN 2 0 CHANGE Machine Autonomation JIDOKA Production Machines and Systems can DETECT Abnormalities and will STOP Automatically

28. The Benefits of Jidoka • Defects are NOT PASSED on to the next process • Equipment breakdown is prevented because problems and their causes become immediately apparent • Machine work is separated from human work so that team members can operate multiple machines (savings in manpower)

29. Machine Andon GREEN - NORMAL OPERATION RED - MACHINE PROBLEM YELLOW - TOOL CHANGE, QUALITY CHECK, ETC.

30. What is Mistake Proofing? (Poka-Yoke) • A control function assisted by internal devices that detect abnormal conditions and errors. • A device or procedure to prevent a defect during order-taking or manufacturing. • Mistake Proofing consists of more than just devices.It is a philosophy of design and manufacturing.

31. Poka Yoke (Mistake Proofing) Fueling area of a car has three error-proofingdevices: 1. Insert keeps leaded-fuel nozzle from being inserted 2. Tether does not allow loss of gas cap 3. Gas cap has ratchet to signal proper tightness and prevent over tightening New lawn mowers are required to have aa safety bar on the handle that must be pulled back in order to start the engine. If you let go of the safety bar, the mower blade stops in 3 seconds or less.

32. Employee Involvement • Kaizen – incremental, continuous improvement • Hoshin Planning – everyone, at all levels is involved in goal setting and resource allocation. No unfunded mandates.

33. Concern for People • Servant Based Leadership - A happy employee means a happy customer - Management creates most problems - Open Book Management – show everyone the big picture • Consensus Management (Hoshin & Nemawashi Processes) - All levels involved in goal setting & resource allocation - Make decisions slowly by consensus; implement rapidly and correctly the first time you do it. - Consensus means all are involved, heard and understood (“catchball”). Decisions start at the bottom. • Empowerment & Trust - People closest to the work make the decisions - Teams have authority to make decisions within predetermined bounds without prior approval - Layoffs are used as the very last resort to business downturns - Wide spans of control

34. Summary of the TPS (Lean) • It always begins with the customer • The customer wants the right thing, at the right time, right place, right price, with perfect quality: value • Value is always the end result of a process • Each process step must contain zero waste • To achieve zero waste, each process step much be valuable, capable, available, adequate and flexible • A truly lean process is a perfect process • Perfection is not possible, but lean enterprises behave as if it is

35. Lean is a way of thinking – not a list of things to do. • Take a long term perspective. It took 60 years to develop and is still developing, plus it was based on all the pioneering work of Henry Ford. • Don’t tailor out the hard parts, or it won’t work. • People make it happen, not the tools. You may have to change your paradigm about how you manage people.

36. Lean and Six Sigma • Toyota does not have a Six Sigma program • Toyota starts with asking “Why?” 5 times - they consider the Why?5X to be the most powerful problem solving tool - they are well schooled in all the tools of Six Sigma