Going LeanGoing LeanAn Introduction to Lean

Principles

Objectives

• Understand what lean manufacturing is

• Know the difference between value and waste in our process

• Recognize the 8 types of waste• Become familiar with the lean

tools

Agenda

• Introduce Lean Manufacturing

• Define waste and value

• Communicate the types of waste

• Introduce basic “lean tools”

• Agree on a path forward

What is Lean Manufacturing?

• The optimization of value in our process so that we have the ability to make exactly what is needed, when it is needed and in the quantity it is needed by our customer

• The relentless identification and elimination of waste from our process so that we can flow at the rate of customer demand

How Will Lean Help Us?

• Reduce Lead Time to our customers by eliminating waste from our system

• Reduce frustrations by removing barriers to doing our jobs

• Encourage everyone to get involved in improving the process

• Increased customer satisfaction• Optimally utilize resources while

meeting our customer’s needs

What is Value?

• A measurement of the worth of a product, or service, by a customer based on it’s usefulness in satisfying a customer need

• An activity, process or operation that changes the product from one form to another in order to get it closer to the customer’s specifications

• It is something that the customer is willing to pay for

What is Waste?

• Any activity that adds costs or time but does not add value

• Consuming more resources (time, money, space, etc) than are necessary to produce the goods, or services, that the customer wants

• Pure Waste: Actions that could be stopped without effecting the customer

• Incidental Waste: Actions that need to be done based on how the current system operates but do not add value

50%40%

10%

The 8 Types of Waste

OverproductionInventoryTransportationMotion (Operations)ProcessingDefects / QualityWaitingPeople’s Skills

Overproduction

• Common causes:– Producing more than is required to

make up for yield loss– Scheduling production to forecasted

demand– Long changeovers or avoiding

changeovers lead to large lot production

• Supplying the process with more than is needed to meet order requirements, sooner and faster than it is needed, causes almost all other types of waste

• This is the worst waste of all, because it helps cause all the others

Inventory

• Common causes:– Overproduction– Poor equipment layout– Long changeover times– Defective, or questionable, parts– Mismatched production speeds

• Requires people, equipment and space to count, transport, store and maintain it

• If we do not get orders the material will become obsolete, and be thrown away

• Inventory is often used to help hide other wastes

Inventory Hides Waste

Sea of Inventory

Long Transportation

CommunicationProblems

MachineDowntime

EmployeeAvailability

Poor Scheduling

QualityProblems

LineImbalance

LongSetups

Supplierissues

HouseKeeping

EmployeeAvailability

Finished Goods

Raw Materials

Reducing Inventory Uncovers Opportunities to Improve,

Opportunities That Must Be Addressed!

Poor Scheduling

LongSetups

Long Transportation

CommunicationProblems

MachineDowntime

EmployeeAvailability

QualityProblems

LineImbalance

Supplierissues

HouseKeeping

EmployeeAvailability

Transportation

• Common causes:– Extra Inventory

– Retention points before and after operations

– Excessive distance between operations (layout)

– Single skill focused operations

• Double or triple handling, moving in and out of storage areas and warehouses

• Material can get damaged if it’s moved too much• It adds no value and is often used to get the extra

inventory out of the way

Motion (Operators)

• Common causes:– Poor workstation layout– Isolated operations– Shared tools– Fatigue– Workstation congestion

• Walking without working (away from workstation) • Searching for tools, materials or information• Reaching, bending or unnecessary motion due to

poor housekeeping or workplace layout• Process is not designed with employees in mind

Processing

• Common causes:– Lack of standard work or

processes– Equipment over designed– Process not updated with

technology changes– Lack of effective problem solving

• Doing more than is necessary to produce an effectively functioning product

• Extra setup steps, over-specification of the process, extra processing steps

Defects / Quality

• Common causes:– Emphasis on downstream

inspection; questionable material passed on

– Lack of standard work

– Material handling (transportation)

– Process design/equipment

• Defective or scrap materials• Cost of inspecting defects• Responding to customer complaints• Rework or re-inspection of questionable materials

Waiting

• Common causes:– Mismatched production rates

– Poor layout

– Machine breakdowns• Ours or upstream

– Insufficiently staffed

• Operator waiting for machines to run or cycle• Machine waiting for operator• Waiting for parts, instructions, approval,

information, maintenance, decisions…

People’s Skills

• Common causes:– Management does not involve

employees in problem solving– Narrowly defined jobs and

expectations– Old school management,

worker relationships

• Employees are seen as a source of labor only, not seen as true process experts

• People are told what to do, and asked not to think• Employees are not involved in finding solutions,

opportunities to improve our process are missed

Waste – the simpler part…

Being Able to See IT!(once we know what it is)

The Real Challenge …

knowing how to properlyremove it!

5 Lean Principles make up the 5 Lean Principles make up the Lean Strategy for Our CellLean Strategy for Our Cell

1. Specify value

2. Map the flow of value

3. Make value flow

4. Pull from the customer

5. Seek perfection

1. Specify Value for Our Customer(s)

• Value added steps lead to a transformation of the material from one form to another which gets the product closer to the customer’s specifications

• Providing the right product, at the right time, in the right quantity, at the right quality, at the right price, in the right place in accordance to the customers requirements

A value stream is all of the value-adding activity AND all of the non-value adding activity (pure waste and incidental waste) required to provide a product/service to a customer

2. Map the Flow of Value in Our Cell

Process A Process B Process CRawMaterial

CustomerFinished Product

Value Stream

3. Make Value Flow in Our Cell

Continuous Flow - Make One - Move One

Batch Processing How long to make a pack of 10 units?

How long to make a pack of 10 units?

4. Establish Pull from Our Cell’s Customer(s)

Okay!One more

please!

CustomerSupplier

5. Seek Perfection in Our Cell5. Seek Perfection in Our Cell

PDCA

Lean Tools

Hoshin PlanA planning tool that helps us identify the key focus points and strategies we will use to steer us towards our vision.

• Enables everyone to ‘see’ where we’re going and our plans to get there

• Build plan and strategies as a team

• Shared responsibility and accountability for getting results

VisionKey Result AreasKey Result MeasuresKey Strategies

Mission Statement

• Brief description of the organization's fundamental purpose

• “Why do we exist?”

We will meet our customer’s expectations by utilizing the tools of Continuous Improvement to

profitably manufacture quality gaskets.

We will meet our customer’s expectations by utilizing the tools of Continuous Improvement to

profitably manufacture quality gaskets.

Vision

• A picture of your company in the future

• The inspiration or the framework for all your strategic planning

• Answers the question, “Where do we want to go?”

The Select-A-Seal EDGE

(Excellence in Development, Growth and Execution)

The Select-A-Seal EDGE

(Excellence in Development, Growth and Execution)

Targets

• Targets are meant to break the vision down into actionable items that should be accomplishable in 3-5years.

Growth of our people, our process, our organization & our sales:

1) To have Grade A employees

2) To fill the plants to near capacity;

3) To continuously improve, both ourselves and our process;

4) To improve yields so that we can stop 100% inspection

5) To produce 100% of our own products

Growth of our people, our process, our organization & our sales:

1) To have Grade A employees

2) To fill the plants to near capacity;

3) To continuously improve, both ourselves and our process;

4) To improve yields so that we can stop 100% inspection

5) To produce 100% of our own products

Core Values

• Behavioral attributes that are uniquely inherent to the organization and that must be maintained at all costs

• Explain why we do things the way we do

Continuous Development Getting It Done

Effective Problem Solving Teamwork

Open Communication

Continuous Development Getting It Done

Effective Problem Solving Teamwork

Open Communication

Workforce FlexibilityThe ability of the workforce to “flex” to other jobs as demand fluctuates within the system, and the efforts the organization undertakes to ensure this occurs.

• Focused training and development plans

• Improve worker skill set

• Maximize organizational flexibility

• Allow the ability to flex to our customer’s demands

5SFocuses on effective workplace organization and standardization it allows us to easily spot variation from standard operating conditions.

• Cleaner, safer work environment

• Organized, user friendly workstations

• Open up space and reduce clutter

Total Productive MaintenanceShifts basic maintenance work to operators, freeing up maintenance personnel to work on planned maintenance or equipment improvements.

• Workers have ownership of the machine & process

• Maximize equipment effectiveness

• Increase employee skill set

• Reduced manufacturing costs through continuous monitoring

Visual FactoryVisual elements on the production floor allow everyone to “know the score” and they make out of standard situations immediately obvious.

• Enables everyone to ‘see’ how we’re performing

• Helps highlight problems, or variances from standard

• Encourages employee involvement and open discussions

Standardized WorkA step-by-step guide for the work activity used every time by everyone to safely complete a task based on best known practices.

• Operators involved in determining best practices

• Minimizes and highlights process variability

• Everyone learns best practice

• Critical steps highlighted1

3

2

4

5

6

Proper PPE must be worn at all times.

Standard Work Sheet

KanbanA visual system that easily communicates the need for parts to be either replenished or consumed. Designed to improve material flow and control inventory levels.

• Workers know what product to produce based on actual usage

• Minimizes inventory by tying production to consumption

• Places controls on how much inventory is carried within the system

X X X(make one move one)

Quick ChangeoverLooks at trying to optimize changeover times by reducing activities that occur during the changeover, standardizing tooling/fixtures, adopting parallel activities and minimizing adjustments.

• Improve repeatability through standardized processes

• Improved flow of material

• Reduction in inventory

• Standardize expectations

Zero Defect QualityThe principle that defects are prevented by controlling the performance of a process so that it cannot produce defects through mistake proofing and failsafe methods.

• Improved quality and customer satisfaction

• Solutions at the source – employees aid in problem solving and in developing creative, more effective corrective actions

KaizenA system involving every employee that is based on making little changes on a regular basis, anywhere changes can be made.

• Continuous small improvements

• Changes are implemented quickly

• Everyone gets involved

Recap

What is Lean Manufacturing?

• The optimization of value in our process so that we have the ability to make exactly what is needed, when it is needed, in the quantity it is needed by our customer

• The relentless identification and elimination of waste from our process so that we can flow at the rate of customer demand

Value-Added Activities Transforms or shapes material or information Customer wants it Done right the first time

Incidental Waste No value created but required by current technology

No value created but required by current thinking

No value created but required by process limitations

No value created but required by current process

Pure Waste Consume resources but creates no value for the customer Could be stopped and it would be invisible to the customer

Value Defined

Resource distribution

Opportunity for improvement by reducing waste and creating additional value

Opportunity for improvement by reducing waste and creating additional value

Lean Emphasis

Value WasteInitialProcess

Value WasteGeneralProcess

Reduction

Waste and Value Both Decrease

Waste Only Reduction Value Waste

Target & Reduce Waste Maintain Value

Value MaintainedResources Decrease

ValueCreation Value Waste

Apply Resources to Create More Value

Value IncreasedResources Focused

How Do We Succeed with Lean?• As a team – open minded, supportive• Understand the concepts and accept all aspects of

the lean process, including those that may cause undesirable effect in the short term

• Aligned focus from the top to the bottom• Effectively use lean methodologies• Carefully plan implementation to remove waste• Allocate the proper resources• Becoming truly lean is a journey and will not be

made without some discomfort

Expected Lean ResultsCostsDefects (99%)Inventory (10 fold)Lead Time (90%)Machine DowntimeSpace (50%)

Capacity Customer ResponsivenessEfficiencyEmployee SatisfactionFlexibility – Demand Flux

Internl Lean Resources

Harold PhilbrickDarrell Bryant

Dennis Dempsey

Attitude is Critical

“If you think you can or you think you can’t, you’re right.” Henry Ford