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    WHAT IS LEANMANUFACTURING?

    An Overview

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    Lean History 101

    Lean Defined & Key Concepts

    The Lean Techniques

    The Leanest of the Lean

    Report Card of Lean in the U.S.A.

    Future of Lean

    Universities and Lean

    TOPICS

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    1900 1940 1980 2000

    LEAN HISTORY

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    The Toyota system is not opposed to the Ford system.

    Rather, it is a progressive enhancement--a system

    geared to the Japanese market that mass-produces insmall lots with minimum stocks.

    Shigeo Shingo

    Notable Quote

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    Toyota Production System Pull ManufacturingJust-In-Time World Class Manufacturing

    Lean Manufacturing

    JIT/TQC/EI/TPM

    Short Cycle Manufacturing

    One-Piece-Flow

    Cellular Manufacturing Demand Flow Manufacturing

    Stockless Production Focused Flow Manufacturing

    Agility Value Adding Manufacturing

    Group Technology Time Based Management

    Synchronous Flow Manufacturing End-Lining Operations

    Continuous Flow Manufacturing

    MANY NAMES, BUT THE SAME CONCEPT

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    Lean Defined & Key Concepts

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    A cookie-cutter approach to improvement.

    Companies must apply appropriate Lean principles

    for their industry and specific company situation.

    Something that a company does once.

    Lean is NOT an end point; it is a never ending

    improvement process. Lean is a journey.

    LEAN IS NOT

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    A systematic approach to identifying and eliminating waste(non-value-added activities) through continuous improvement byflowing the product at the pull of the customer in pursuit ofperfection

    --The MEP Lean Network

    DEFINING LEAN

    ANOTHER DEFINITION

    A manufacturing philosophy that shortens the time line betweenthe customer order and the shipment by eliminating waste (non-value-adding activities).

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    KEY CONCEPTS

    Waste Reduction

    Lead Time Reduction

    Variation Reduction Product Flow

    Pull of the Customer

    Continuous Improvement

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    Value is added any time we physically change ourproduct towards what the customer is buying.

    If we are not adding value, we are adding cost orwaste.

    Lean Manufacturing drives the systematicelimination of waste.

    Value-Added Time : MinutesTime in Plant : Weeks

    ORDER CASH

    KEY QUESTION Are my customers willing to pay for this ????

    VALUE ADDED

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    Overproduction

    Defects

    Non-value added

    processing Waiting

    Underutilizedpeople

    Excess motion

    Transportation

    Excess inventory

    Typically 95% of Total Lead Time is Non-Value Added!!!

    Value added

    5%

    Non-value added

    LEAN = ELIMINATING THE WASTES

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    Poor

    Long Set-ups Plant Layout Scrap Downtime

    Long Supplier Process Lack of Poor Unlinked

    Lead-times Imbalances Training Tooling Schedules

    No Unclear Poor Improper

    Standardization Specifications Housekeeping Reward System

    Raw FinishedMaterial Product

    Inventory Level

    INVENTORY HIDES PROBLEMS

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    Poor

    Long Set-ups Plant Layout Scrap Downtime

    Long Supplier Process Lack of Poor Unlinked

    Lead-times Imbalances Training Tooling Schedules

    No Unclear Poor Improper

    Standardization Specifications Housekeeping Reward System

    Raw FinishedMaterial Product

    Inventory Level

    REDUCING INVENTORY WITHOUTSOLVING PROBLEMS

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    Look at the service(s) that you provide. Review each activity.

    Is the activity adding value?

    If YES If NO

    Is this the best way to do it? Can it be eliminated?

    If not, can it be reduced?

    NOTES: Be sure to include all the wasteful activities that occur occasionally.

    Remember Value is defined by the CUSTOMER.

    LEAN THINKING: VALUE-ADDING ANALYSIS

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    Push

    Pull

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    ProcessB

    ProcessA

    Fin.Goods

    RawMatl

    Supplier Customer

    PartFlow

    ProcessC

    PUSH SYSTEM

    Information Flow

    WIPWIP

    Execution - Parts completed to schedule without any downstream considerations

    Replenishment - Based on projected demand (forecasts)

    Shop Floor Control - System, transactions, paperwork

    Problems - Hidden

    Reaction to changes and problems - Through system - rescheduling

    Linkage - Operations are NOT physically linked

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    KANBAN

    Kanban = Signal

    Kanban signaling device, kanban, can be cards, carts,golf balls, marked-off spaces (kanban squares), etc.

    Signals when to do work

    Signals what work to do Signals when not to do work

    Controls inventory

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    ProcessB

    ProcessA Fin.Goods

    RawMatl

    Supplier Customer

    Information Flow

    PartFlow

    KanbanLocations

    ProcessC

    PULL SYSTEM

    Execution - Parts produced upstream as signaled from the downstream operation or customer

    Replenishment - Based on consumption

    Shop Floor Control - Automatic - visible

    Problems - Exposed - creates urgency

    Reaction to changes and problems - Immediate - on-line and visible

    Linkage - Operations ARE physically linked

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    Process

    B

    Process

    ARawMatlSupplier Customer

    Information Flow

    PartFlow

    KanbanLocations

    Process

    C

    PULL SYSTEM

    Make to Order and Engineer to Order Shops, bydefinition, operate by PULL since nothing is produceduntil an order from the customer is received.

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    The Lean Techniques

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    QuickChangeover

    StandardizedWork

    Batch Reduction

    Teams/Employee Involvement

    Quality atSource

    5S SystemVisual

    Systems

    Plant Layout

    POUS

    Cellular/FlowPull/Kanban

    TPM

    ValueStreamMapping

    Continuous Improvement

    LEAN BUILDING BLOCKS

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    FUNCTIONAL DEPARTMENTS AND CELLS

    FUNCTIONAL

    CELL

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    10 minutes

    10 minutes

    Batch & Queue Processing

    Lead Time: 30+ minutes for total order21+ minutes for first piece

    10 minutes

    ProcessA

    ProcessB

    ProcessC

    12 min. for total order3 min. for first part

    ProcessB

    ProcessA

    ProcessC

    Continuous Flow Processing

    IMPACT OF BATCH SIZE REDUCTION

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    CELL ADVANTAGES OVER FUNCTIONAL DEPARTMENT

    1. Shorter Lead Time

    2. Improved Quality - Quicker problem identification

    3. Improved Quality - Less potential rework or scrap

    4. Less Material Handling

    5. Improved Coordination

    6. Reduced Inventory7. Departmental conflicts eliminated

    8. Simplified Scheduling

    9. Less Space Required

    Functional Cellular

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    STEPS IN A CHANGEOVER (taken from ShigeoShingos A Revolution in Manufacturing: The SMED

    System)

    Percent of time of changeoverPreparation, after-process

    adjustment, checking, return

    to storage of parts, tools,

    fixtures, move materials

    Removing parts, blades, jigs,etc.; mounting same for next

    lot, move materials.

    Machine setting,

    measurements

    Making trial pieces and

    adjusting

    50%

    30%

    15%

    5%

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    KEY BENEFITS OF REDUCING SETUP TIMES

    1. Shorter Lead Times2. Decreased Inventory

    3. Increased Capacity

    4. Improved Flexibility

    5. Improved Accuracy/Quality6. Improved Responsiveness to Customers

    Analyze

    Implement

    Standardize

    LeanBasicsSMED

    Document

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    Simple signals that provide an immediate understandingof a situation or condition.

    Examples:

    Shadow boards for tools, supplies, and safetyequipment

    Color coding

    Lines on the floor to delineate storage areas, walk

    ways, work areas, etc. Marks to indicate correct machine settings

    Andon lights

    Kanban cards

    VISUAL CONTROLS

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    VISUAL MEASUREMENT

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    Mistake Proofing

    Minimizing the opportunities for mistakes tooccur.

    When mistakes do occur, preventing mistakesfrom becoming defects.

    POKA-YOKE

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    Sort (Seiri) - Perform Sort Through and Sort Out, byplacing a red tag on all unneeded items and moving themto a temporary holding area. Within a predetermined timethe red tag items are disposed, sold, moved or given away.

    Set in Order (Seiton) - Identify the best location forremaining items, relocate out of place items, set inventorylimits, and install temporary location indicators.

    Shine (Seiso) -Clean everything, inside and out.

    Standardize (Seiketsu) -Create the rules for maintainingand controlling the first 3Ss and use visual controls.

    Sustain (Shitsuke) - Ensure adherence to the 5Sstandards through communication, training, and self-

    discipline.

    THE 5 Ss

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    The Leanest of the Lean

    Toyota

    Four-year Study of the Toyota Production System

    Decoding the DNA of the Toyota Production System by Steven Spear and H.

    Kent Bowen, Harvard Business Review, September-October 1999

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    QuickChangeover

    StandardizedWork

    Batch Reduction

    Teams/Employee Involvement

    Quality atSource

    5S SystemVisual

    Systems

    Plant Layout

    POUS

    Cellular/FlowPull/Kanban

    TPM

    ValueStreamMapping

    Continuous Improvement

    LEAN BUILDING BLOCKS

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    The tacit knowledge that underlies the Toyota Production System can be

    captured in four basic rules. These rules guide the design, operation, andimprovement of every activity, connection, and pathway for every productand service. The rules are as follows:

    DECODING THE DNA OF TOYOTA

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

    4. Any improvement must be made in accordance with the scientificmethod, under the guidance of a teacher, at the lowest possiblelevel in the organization.

    Decoding the DNA of the Toyota Production System by Steven Spear and H. Kent Bowen,

    Harvard Business Review, September-October 1999

    2. Every customer-supplier connection must be direct, and theremust be an unambiguous yes-or-no way to send requests andreceive responses.

    3. The pathway for every product and service must be simple anddirect.

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    Report Card

    20+ Years of Lean in the U.S.A.

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    Lead Time Reduction

    Productivity Increase

    WIP Reduction

    Quality Improvement

    Space Utilization

    0 25 50 75 100Percentage of Benefits Achieved

    Flexibility Skill Enhancement Visual Mgmnt

    THE GOOD NEWS

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    Simplified Scheduling Less Transactions Less Variation, More Predictability Forecasts Become More Accurate

    Quicker Response To Design Changes

    Quicker Market Response Problems Are Visible Product Team Organization - Eliminates Departmental

    Conflicts

    Facilitates Cross Training Facilitates Alternate Pay Schemes (Pay For Skills) Increased Sales

    ADDITIONAL BENEFITS

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    THE BAD NEWS?

    Im not a defeatist or pessimistic but I think were stillin the early days with regard to figuring out how to dothis lean stuff

    James WomackPresident of the Lean Enterprise Institute

    Excerpt from IndustryWeekMagazine, November 2001

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    Future of Lean

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    1. Lean is here to stay due to its Customer orientation.

    2. There will be more Lean activity in the areas of Office Lean, andcreating flow in pure Job Shop and Engineer to Orderenvironments.

    3. The Silver Bullet mentality will be abandoned by morecompanies, and replaced with a renewed focus on the Leanfundamentals and the development of a true ContinuousImprovement System.

    4. 3 above will be accelerated as more Lean versus Leancompetitive battles emerge.

    5. Hopefully, Lean will become more evident in Universitycurriculums. (Refer to next section on Universities and Lean.)

    THE FUTURE OF LEAN

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    Lean Keys to Success

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    Prepare and Motivate People Widespread orientation to CI, quality, training and

    recruiting workers with appropriate skills

    Create common understanding of need to changeto lean

    Employee Involvement Push decision making and system development

    down to the lowest levels

    Trained and truly empowered people

    Share information and manage expectations

    Identify & empower champions, particularlyoperations managers

    Remove roadblocks (i.e., people, layout, systems)

    Make it both directive yet empowering

    KEYS TO SUCCESS

    RECOMMENDED READINGS

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    World Class Manufacturing: The Next Decade by Richard Schonberger

    World Class Manufacturing: The Lessons of Simplicity Applied by Richard

    Schonberger Lets Fix It! Overcoming the Crisis in Manufacturing by Richard

    Schonberger

    The Machine That Changed the World by James P. Womack and Daniel

    T. Jones

    Lean Thinking by James P. Womack and Daniel T. Jones

    Becoming Lean by Jeffrey Liker

    Lean Transformation by Bruce A. Henderson and Jorge L. Larco

    The Goal by Eli Goldratt

    The Race by Eli Goldratt

    The New Manufacturing Challenge: Techniques For Continuous

    Improvement by Kiyoshi Suzaki

    RECOMMENDED READINGS

    RECOMMENDED READINGS

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    The Human Side of Just-In-Time: How To Make The Techniques Really

    Work by Charlene B. Adair-Heeley

    Fast Track to Waste-Free Manufacturing by John W. Davis Visual Systems by Gwendolyn D. Galsworth

    A Revolution in Manufacturing: The SMED System by Shigeo Shingo

    Quick Changeover for Operators:THE SMED SYSTEM created by The

    Productivity Press Development Team

    SET-UP TIME REDUCTION by Jerry W. Claunch

    Kaizen For Quick Changeover by Kenichi Sekine and Keisuke Arai

    Performance Measurement for World Class Manufacturing by Brian H.

    Maskell

    Breaking The Cost Barrier by Stephen A. Ruffa and Michael J. Perozziello

    RECOMMENDED READINGS

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    The End