History of Lean Manufacturing

1. History of LeanManufacturing

2. History of Lean It started in Japan at the Toyota Motor Company In 1902 Sakichi Toyoda, founder of the Toyota group, invented an automated loom that stopped anytime a thread broke. As a result, quality defects significantly decreased and one operator was able to monitor several machines at one time. Several decades later Taiichi Ohno, a production engineer at the Toyota Motor Company applied the same concept as he sought to eliminate waste, or non-value added activities, within the Toyota organization. In addition to stopping production at every defect (Jidoka), he employed another key concept, JIT (just in time). Together, Jidoka and JIT are the pillars of the Toyota Production System, supported by a foundation of Heijunka (level loading) … the basis of Lean. Leveraging from Toyota

3. THE HOUSE OF TOYOTA TPS The house of Toyota is built on three main principles, the two pillars, JIT (Just in Time) and Jidoka, and the foundation of Heijunka. These concepts will be briefly explained in this overview and gone over in more detail in the sections that follow.

4. TPS (Toyota Production System) THE HOUSE OF TOYOTA Stop @ Abnormality Pull Production Single Piece Flow Autonomation Takt Time Production Leveling Sequencing

5. What is Heijunka? Heijunka is the process of level loading and sequencing the timing of production. • There are two main elements of Heijunka • Leveling: Overall leveling in the production schedule of the variety and volume of items produced in a given time period. • Sequencing: The order in which the parts on the line or in the cell are processed.

6. What is JIT? JIT (Just in time) is a theory of production characterized by producing according to TAKT time(1), single piece flow(2), and pulling(3) of material from upstream process while keeping inventory at minimum, established levels. • There are three main elements of JIT • TAKT TimeAvailable production time / required production (forecast & actual demand) • e.g. 1 shift = 1980 min/wk, forecast = 198 units/wk • TAKT Time = 1980 min/wk / 198 units/wk = 10 min/unit • Single Piece Flow • Pull • A system of manufacturing in which each process withdraws the parts it needs from the preceding process when they need them, in the exact standardized amount needed. Single piece or one piece flow is a means to primarily build Quality into the process. This is achieved by establishing a takt Time, developing std work, and swip. The premise is that an Operator can only work on one piece at a time, and performs a Quick quality check on the CTQs of the process before moving The part to the following process. If a defect is detected, Jidoka is enacted…the line is stopped, and immediate action is taken To remediate the situation and take countermeasures to prevent reoccurence

7. What is Jidoka? Machines that have “human intelligence” built into them, giving them the ability to shut down automatically in the case of an abnormality to stop defective products from flowing into the next process. Jidoka measures are incorporated in the assembly process by use of Andons and Pin-Pan-Pon; stopping when abnormality is detected. • There are two main elements of Jidoka • Stop at Every Abnormality • Autonomation … Human intellegence built into machines or systems

8. What is Lean? • Lean production focuses on eliminating waste in processes (i.e. the waste of work in progress and finished good inventories) • Lean production is about expanding capacity by reducing costs and shortening cycle times between order and ship date • Lean is about understanding what is important to the customer • Lean production is not about eliminating people

9. Defining Value • Value Added Activity • Any activity that changes the form, fit, or function of materials or information to meet customer requirements — OR — • Something customers are willing to pay for • Non-Value-Added Activity • All other actions and unwanted features are by definition — WASTE adding no value to the customer — simply raise costs in our business Before After Time Time Non-Value Added Work Value Added Work Eliminate Non-Value-Added Activity

10. Understanding and Eliminating Waste “Begin by learning the FUNDAMENTALS. If you learn the wrong ideas about fundamental matters, you are likely to continue to make mistakes later, no matter how enthusiastic you are about implementingimprovements.” • The Seven Types of Waste… • Defective Parts • Overproduction • Inventory • Motion • Processing Transactions • Transportation • Waiting Waste Exists In Every Process…Eliminate It

11. 1. Defects • Creating and correcting defects robs resources, “chokes” flow, and must be minimized or eliminated. • Examples: • Wrong parts from supplier • Rework

12. 2. Over-Production • Consumes valuable resources not immediately needed. • Hides other process problems (bad quality, poor scheduling, poor delivery). • Builds inventory not needed. • Examples: • Assembling parts ahead of schedule while delinquent parts wait • Working on the wrong parts at the wrong time • Making more parts than your customer needs

13. Ties up capital. Requires moving. Difficulty in finding material. Reduces customer responsiveness. Examples: Inventory on shelves, racks, and floors Long queues in service operations High levels of safety stock Large deposits of material at each operation Large delivery quantities instead of frequent deliveries (in or out) 3. Excess Inventory • Takes valuable space. • Obsolescence. • Losses due to damage. • Multiplies quality problems.

14. 4. Unnecessary Motion • Ergonomic concerns • Labor efficiency • Safety • Wasted cycle time Before After

15. 5. Excessive Processing • Consumes valuable resources. • Creates delay. • Opportunity for more defects. • Examples: • Unnecessary approvals • Processing beyond specification limits or customer requirements • Unnecessary record retention

16. 6. Transportation and Conveyance • Consumes valuable resource. • Takes time. • Safety concerns. • Capital expenditures. • Increases damage. • Examples: • Using crane to move material • Using forklift truck to move material • Moving material/tools to point of use • Mailing of documents • Unnecessary personnel travel

17. 7. Waiting • Adds to cycle. • Consumes valuable resources. • Increases work in process. • Slows response to customer. • Examples: • Waiting for shared equipment • Operations not balanced, waiting for previous operation • Idle time due to lack of “standard” operations • Waiting for decisions (dispositions, inspection , materials…)

18. Sorting Waste Quick Reference Guide

19. Eliminate the Waste, It is Non-Value Added • ASK YOURSELF — Is this operation something that the customer is willing to pay for? • BETTER YET — Does this operation change the Form, Fit, or Function of the part? - Deburring - Cleaning - Inspection - Unnecessary approvals NON-VALUE-ADDED OPERATIONS … examples Reduce Non-Value Added Operations Without Incurring Unreasonable Costs

20. Summary Page • Lean has defined elements to work towards Elimination of waste in a process • Lean is eliminating waste • Waste is defined as Non-value activities • Non-value activities are those which the customer would not care about

21. Elevating Lean…on Par with 6 Sigma Lean Drives Cycle Time Reduction Leveraging Proven Solutions …..Maximizes Responsiveness With the Least Inventory/Resources • 6 Sigma • Drives Defect Reduction Leveraging Analytical Techniques • DMAIC • DFSS • ….For Complex Problems with Unclear Root Causes or Design Variables Complementary Efforts…In-Process Defects Often Constrain Cycle Time Reduction Efforts

22. Typical Lean Solutions • Product Flow • Component Cell Lines and Moving Assembly Lines • Kitting • Supermarkets • Pull Systems • Standard Work • Multi-skilled Labor • Visual Management • Right Sized Single Purpose Machines • Andon • Knowledge Flow • Digitized Standardized Workflow • Configurable Reusable Solutions • Single Version of Truth • Real Time Processing (vs. Batch) • Standard Work • Digitized Wizards • Digital Cockpits • Point-of-use Digital Tools • Exception Alerts

23. Benefits from Lean • All Metrics are Improved by “Leaning” Operations • Environmental conditions improve with Lean • Working Smarter not Harder is the Outcome

24. Benefits from Lean Reduce Floor Space After Before

25. climbing sitting lying down Benefits from Lean Improved Ergonomics

26. Benefits from Lean Increase Velocity Increase Capacity

27. 1 2 3 4 5 6 1 2 3 6 5 4 Benefits from Lean Improved Productivity

28. Lean Success 737 Moving Line • $500 MM Inv Reduction • 41% Cycle Reduction • 19 % Labor Productivity • 170K sq ft Space Reduction

29. Lean Reference Material