© Lean & Mean Consulting. All rights reserved. 2015

01 / 16

World-Class Standards of Operational Excellence

Lean Thinking Lean Culture & Philosophy

Including Lean Simulation Game: Creating LEAN Factory

2

„Lean Factory” Simulation Game

This is the best way of implementing a LEAN Philosophy and Culture.

This is a universal game, entirely reflecting real life production conditions.

By offering a lot of fun, the simulation includes such processes like planning, manufacturing process, changeovers, materials flows, warehouse, shipping, supplier & customer issues, etc.

The primary objective of the game is to lead a seamless transformation from a traditionally managed company to a LEAN factory.

As a result of developing solutions for improvement and implementing LEAN techniques, participants will be directed towards the main goals of the game: achieving a 100% customer satisfaction and making the company “rightsized” to obtain operational profitability

Lean Simulation Game

3

What is Lean?

• Value stream is a primary work unit • Focused on improving process performance • Clear view of end state

• Wide range of Lean techniques and tools are commonly available

• Continuous improvement approach and developing capable leaders

• Lean is a management philosophy based on the Toyota Production System (TPS)

• Eliminate everything that does not add value (waste/MUDA) from the customer’s point of view

Objective

Focus & scope

Approach & tools

4

Source: World motor vehicle manufacturer. World ranking of manufactures 2010, OICA, August 2011

Source: Automotive News Data Centre, Global Insight (January 2007), DataStream, McKinsey research.

•Ford and Toyota: two companies both starting around 100 years ago •Toyota in the 50ies was much smaller than Ford •Toyota has now considerably passed Ford in sales and in terms of market cap • The key driver of that has been the Toyota Production System

TPS …

… is not a copy of mass production

… is by definition and history as much

about flexibility as about productivity

… can therefore be used also for low-

volume, high-end-strategies

Key idea of TPS: Systematic elimination of non-value adding activities

Toyota has achieved dramatic results with their implementation of the Toyota Production System

5

Introduction to Lean Thinking

WHY DO WE NEED LEAN?

6

Introduction to Lean Thinking

(1) DELIVERY TO CUSTOMER(S) BELOW EXPECTATIONS

7

Introduction to Lean Thinking

(2) PROCESSES NOT OPERATING AT

COST EFFECTIVE RATES

8

Introduction to Lean Thinking

(3) EVER INCREASING PRESSURE FROM CUSTOMERS TO

REDUCE COSTS

Traditional Thinking

• Large batches

• Low unit costs

• Work at full capacity

• Tight Schedules

• High WIP inventories

• High level of specialization

• Long cycle times

Lean Thinking

• Reasonable batches

• Total system cost

• Work at necessary capacity

• Flexible schedules

• Low WIP inventories

• Cross-training

• Short cycle times

10

Lean Thinking

LEAN THINKING

Why do it?

• It’s the best way to provide our customers SUPERIOR SERVICE at the LEAST POSSIBLE COST

• It’s the best way to get EVERYONE involved so that YOU can improve your job and work design

11

Lean Thinking

Lean thinking constitutes a HUGE paradigm shift !

12

Lean Thinking

Definition:

A set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them.

What is a Paradigm???

13

Lean Thinking

Lean Thinking is ...

• A passionate belief that there’s always a simpler, better way!

• A continuous drive to identify and eliminate waste (MUDA)!

Introduction to Lean Philosophy

Module. 01

The

of LEAN

15

The DNA of Lean

• Originally, Toyota based its production on:

Henry Ford’s manufacturing system Division of labor Integrated supply chain

What is the origin of LEAN?

Toyota Production System

16

The DNA of Lean

• Taiichi Ohno visited the U.S. in 1956

impressed with self service supermarkets customers pulled from the shelves (Kanban)

• 1970’s oil crisis forced remainder auto makers to adopt

• Since then, used in wide array of industry

What is the origin of LEAN?

17

The DNA of Lean

The Four Rules of The Toyota Production System

Rule 1 - All work shall be highly specified as to content, sequence, timing and outcome.

Rule 2 - Every customer-supplier connection must be direct with unambiguous communication methods.

Rule 3 - The pathway for every product and service must be simple and direct.

Rule 4 - Any improvements must be made in accordance with the scientific method.

18

The DNA of Lean

The Vision of LEAN

• Lean companies seem to share a common theme

• Employees have a clear vision of the ideal production system

• This vision motivates them to make improvements beyond what is needed.

19 © Lean & Mean Consulting. All rights reserved. 2016