What is Lean ?

LeanWhat is Lean?

“A manufacturing philosophy that shortens the time line between the customer order and the shipment by eliminating waste” - John Shook

What is Lean ?

What is Lean?

A strategy for maximizing value to customers

The relentless pursuit of the perfect process through waste elimination

A competitive advantage to produce:What is needed (customer expectations, quality, etc.)When it is neededUsing the absolute minimal resources

8 Types of Waste

Muda

Defects

Overproduction

Waiting

Non-Utilized

Resources

Transportation

Inventory

Motion

Extra-processing

“DOWNTIME”

Defective work or non-conforming output

Typical causes: Variation in processesLack of Standard Operating Procedures

Improvement ideas: Poke Yoke (Mistake Proofing) Jidoka (Autonomation) Cross training Document procedures Establish information needs

Waste - Defects

Manufacturing Example Service Example

Wrong packaging Wrong data entry

Producing beyond what is in immediate use

Typical causes:Production schedules & push productionCost justification for expensive equipmentWorking on the wrong parts at the wrong time

Improvement ideas: Reduce lead time and order quantity Establish a kanban system Level out the orders Remove all unnecessary paperwork Improve quality

Waste - Over-productionManufacturing Example Service Example

Producing more due to big batch size.

Producing a weekly report daily

Any delay between when one process steps ends and the next begins.

Typical causes: Idle time due to lack of “standard” operations Waiting for decisions (dispositions, inspections, materials, etc.) Waiting for shared equipment

Improvement ideas: Balance operations Eliminate unnecessary approvals Eliminate redundancies Establish Single piece flow Eliminate hand-offs

Waste - WaitingManufacturing Example Service Example

Downtime to machine changeover

Waiting for signatories prior to report submission

Not utilizing resources to its full capacity

Typical causes: Lack of standards Idle time

Improvement ideas: Do a skills matrix Cross training Level out orders Balance operations

Waste – Non-Utilized ResourcesManufacturing Example Service Example

Senior engineer doing manual tasks

Senior lead processor manually correcting entries

Needless movement of work, products or information

Typical causes: Unnecessary inventory Poor shop/office layout

Improvement ideas: Reduce inventory Reduce lead times Eliminate unnecessary files Create a paperless process Review record retention policy

Waste - TransportationManufacturing Example Service Example

Transfer of materials to another processing area

Shipping hard copies requiring signatures.

Excess WIP vs what is needed by the customer

Typical causes: Push production Over-ordering Too many shelves Too much floor space

Improvement ideas: Reduce lead times Establish kanban system

Waste - InventoryManufacturing Example Service Example

Excessive buffer stocks Claimed forms in a workflow stuck in the mailbox

Needless movement of people

Typical causes: Equipment/Office layout Fixture design Material storage

Improvement ideas: Implement point of use Develop work cells

downover

Waste - MotionManufacturing Example Service Example

Unnecessary twisting, bending and reaching movements of operator.

Opening 5 subdirectories to access a frequently-used file

Doing more work than is necessary to satisfy your customers.

Typical causes: Work is not standardized Tasks are not simplified Operations are not understood

Improvement ideas: Automate the process Eliminate non-value added steps Combine steps/forms

Waste – Extra-ProcessingManufacturing Example Service Example

Transfer of materials to another processing area

Excessive approvals or handoffs

Lean Principles5 principles of Lean

Define value from the end customer back Identify the value streamEstablish flowPull from the customerContinuously improve the process to perfection

Thank you !