Developing a Lean Strategy

Akın Aydemir 05.July.2012

WHAT IS LEAN MANUFACTURING?

WHAT IS TOYOTA PRODUCTION SYSTEM?

Question

LEAN MANUFACTURING

OEE=70%

OEE=70%

OEE=70%

OEE=70%

OEE=55 - 65%

OEE=35 - 45%

5S TPM Kaizen

OEE=55 - 65%

PPS

OEE=85%

OEE=85%

OEE=85%

OEE=85%

SAFETY

QUALITY

FLOOR SPACE

INVENTORY

MANPOWER

ENERGY

MAINTENANCE

PROBLEM SOLVING

DOCK TO DOCK

COST

FLEXIBILITY

COMMUNICATION

Direction Setting

Workforce

Workforce

Organization to Support

Old Paradigm Lean Organization

CONVERTING THE TRIANGLE

• Respect and support for the value adder• Total systems:

– Integration of the total system

• Non-blaming/Non-judgmental– Process, not people– Encourage communication of problems

LEAN CULTURE

• No problem is a problem• If there are no problems, there are no

improvements• Problems are opportunities• People are not the problem• Teach people to be good problem solvers

WELCOME PROBLEMS

Old• Things viewed in a vacuum• Value highs, lows, crisis• Manage events, things• Separate people• Individual performance valued at

expense of system• Bursts of energy to get things

done n-o-w• Competition

New• Things viewed in context• Value harmony, stability• Manage people, relationships• Bring people together• System performance is

paramount• Steady and smooth workflow • Cooperation

MENTALITY CHANGE

Q

DC

New Paradigm: New Paradigm: Provide all 3Provide all 3

C

DQ

Old Paradigm: Old Paradigm: You Can Have You Can Have

2 of 32 of 3

PARADIGM CHANGE

MeasurementsMeasurements

Support StaffSupport Staff

ProblemsProblems

Solution FocusSolution Focus

InformationInformation

MethodsMethods

Management ApproachManagement Approach

Career MovementCareer Movement

SupervisionSupervision

Employee DevelopmentEmployee Development

View of PeopleView of People

Old Paradigm

End result only

Critical of shop floor

Rejected/hidden

People

Restricted/closed

Static/routine

Crisis

Fast/skimming

Inspector

Do as told

Costs

New Paradigm

Trends of improvement

Serves shop floor

Treasures/communicated

Systems/processes

Shared/open

Changing/improving

Preventive

Slow/broad

Coach

Learn by doing

Assets

CULTURE CHANGE

VisionVision SkillsSkills IncentivesIncentives ResourcesResources Action Plan

Action Plan Change

SkillsSkills IncentivesIncentives ResourcesResources Action Plan

Action Plan Confusion

VisionVision IncentivesIncentives ResourcesResources Action Plan

Action Plan Anxiety

VisionVision SkillsSkills ResourcesResources Action Plan

Action Plan No Change

VisionVision SkillsSkills IncentivesIncentives Action Plan

Action Plan Frustration

VisionVision SkillsSkills IncentivesIncentives ResourcesResources False Starts

Success Factors for Leading Change

SUCCESS FACTORS FOR LEADING CHANGE

VALUE ADDED

• Any operation or step of an operation that physically adds value to the product or component based on customers expectations: – Examples:

* Bending a hose *Tightening a bolt to torque*Attaching a fitting *Welding parts together

NON VALUE ADDED

• Anything excess……Activities that consume time, resources, and/or space but do not add value or contribute to satisfying the customer.

WASTE

SEVEN TYPES OF WASTE

• Transportation

• Inventory

• Motion

• Waiting

• Over Production

• Over Processing

• Defects

OVERPRODUCTION

• The mother of all waste!!!!• Produce too much, too soon.• Over production creates other

wastes: motion, conveyance, inventory.

• Leads to requirements for storage space, extra handling of parts, extra pallets, and lift trucks.

Waiting for a machine to finish or parts to arrive.

WAITING

• Moving stock around• Delivering batched

parts from one process to another

TRANSPORTATION

• Doing more work than required by the customer.

OVERPROCCESSING

• Wasted motion can be caused by disorganization, poor work sequence, and poor process layout

• Wasted motion is comprised of people & machines

MOTION

Repair or rework Repair or rework has no value to the has no value to the

customercustomer

DEFECTS

• Excess Inventory - Anything more than is required to do the job!

INVENTORY