September 10

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Lean Management: Lean Management: Fundamentals and ApplicationsFundamentals and Applications

Prepared By:Prepared By:

Ashraf S. Youssef, Ph. D.Ashraf S. Youssef, Ph. D.

July, July, 2424, , 20102010

QA & Ind. Methods ManagerQA & Ind. Methods Manager

S.M. ASQ, L.A. BSI, M. ELI, M. EMSS.M. ASQ, L.A. BSI, M. ELI, M. EMS

Practical Examples

Lean Tools

The Fundamentals of Lean

“The real voyage of discovery consists

not in making new landscapes but in

having new eyes.”g y

–Marcel Proust (1871-1922), Novelist

• A cookie cutter approach to improvement.

Companies must apply the appropriate Lean principles for their industry and specific

LEAN IS NOT

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.

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“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”

--The MEP Lean Network

DEFINING LEAN

ANOTHER DEFINITION“A manufacturing philosophy that shortens the time line

between the customer order and the shipment by eliminating waste (non-value-adding activities).”

KEY CONCEPTS

• Waste Reduction• Lead Time Reduction• Variation Reduction• Product Flow• Product Flow • Pull of the Customer• Continuous Improvement

Value Stream Focus & Lead TimeWhat is the Lean Manufacturing?Reduction of 7 kinds of waste (MUDA)

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What is the Lean Manufacturing?Reduction of 7 kinds of waste (MUDA)

• Overproduction• Defects • Non-value added processing

Value added

5%

LEAN = ELIMINATING THE WASTES

Non value added processing & Underutilized people

• Waiting • Excess motion• Transportation• Excess inventory

Value Added!!!-is NonTotal Lead Time% of 95Typically

Non-value added

INVENTORY HIDES PROBLEMSREDUCING INVENTORY WITHOUT

SOLVING PROBLEMS

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Benefits of lean manufacturing

• Reduced lead time, delivery time, cycle time and set-up time

• Eliminates waste

• Increases overall customer satisfaction

• Optimized space usage

I d d ti it• Increased productivity

• Improved product quality

• Improved on-time shipments

• Improve employee involvement, morale, and company culture.

• Seeks continuous improvement

Practical Examples

Lean Tools

The Fundamentals of Lean

p

Quick Changeover

Quality at SourceCellular/FlowPull/ Kanban

Continuous Improvement

LEAN BUILDING BLOCKS“A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection”

--The MEP Lean Network

Standardized Work

Batch Reduction

Teams/Employee Involvement

5S System Visual Systems

Plant Layout

POUS

TPM

ValueStream

Mapping

Lean Tools: Value Stream Mapping

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Lean Tools: Value Stream Mapping Lean Tools: Value Stream Mapping

Simplified Logical Flow Chart

Lean Tools: Value Stream Mapping

Nb of Operations : 17

Nb of Inspections : 4

Nb of Movements/ Day : 21

Meters Walked / Day : 1 836 m

Nb of Operations : 56

Nb of Inspections : 24

Nb of Movements/ Day : 175

Meters Walked / Day : 10 725 m

Lean Tools: Value Stream Mapping

PRODUCTION MANAGER

Project Manager

Supply Chain

Manager Quality Control

INDUSTRIAL METHODS DEPT.May 2008 ~ April 2009

PRODUCTION PLANNER

MODEL 6 PRODUCTION LINE

Design Engineering

CURRENT VALUE STREAM MAP

SUPPLIERS CUSTOMERS

*IGI Req.*Mat'l Req./Issuance*Dlvry.Note*Packing List*P.O.

*Master Plan*Delaying Report

*IGI Report*Defect Rprt.*Final Inspn.*Incomplete Work Report*NCR

*Submittals*BOM*EMR*MMR*ECN

*I.D. Card*In process Inspection*EOM

*Invoicing*Clarification

*Purchase Order

Job Order J201706 (in 3 batches) 2nd BatchNo.of Shop orders 20 6 4 3 6 6 6

Sections # 204 52 51 43 52 52 52Buckets # 365 77 75 68 77 77 77

Metrics Value UOM SO24444Steps w/in Process 75 steps 5 8 14 15 10 5 7 10 1Total Consumed Reg.Time 9527 minutes 96 200 546 6752 1048 300 300 270 15Total Consumed OT 17699 minutes 3218 11263 3218Changeover Time 239 minutes 0 45 19 64 56 30 25 0 0VA time 8315 minutes 0 0 1074 6049 1192 0 0 0 0Traveled time (distance) 368 minutes 193 30 48 0 6 46 0 30 15No.of Workers 20 persons 2 1 2 7 2 1 2 2 1

Production Lead Time (days)days 1 1 5 6 5 1 1 1 0.5 21.5

Total Consumed Time in minminutes 145 275 1916 2583 2164 376 163 150 30 7800

16.3 days

From BOM to In-house

DeliveryReceiving material

QC IGI Bucket Assembly

Bucket Wiring

QC Testing

PackingPanel Line-up

175 days ave.

FAT

Traveled distance 174.1m from

II I I II

WIP is more than

Traveled distance 197m, Fab'n to Panel wiring.

5.8mon.

Industrial Eff iciency = V.A.time/ Total time

I.E. = 22 %

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Lean Tools: Value Stream Mapping

Supply Chain

Manager Quality Control

PRODUCTION MANAGER

FUTURE VALUE STREAM MAPINDUSTRIAL METHODS DEPT.2009 ~ 2010

MODEL 6 PRODUCTION LINE

PRODUCTION PLANNER

Design Engineering

Project Manager

SUPPLIERS CUSTOMERS

*IGI Req.*Mat'l Req./Issuance*Dlvry.Note*Packing List*P.O.

*Master Plan*Delaying Report

*IGI Report*Defect Rprt.*Final Inspn.*Incomplete Work Report*NCR

*Submittals*BOM*EMR*MMR*ECN

*I.D. Card*In process Inspection*EOM

*Invoicing*Clarification

*Purchase Order

____ mon.

1 1 1 1 1

Metrics Value UOMSteps w/in Process 75 steps 5 8 14 15 10 5 7 10 1Total Consumed Reg.Time 9527 minutesTotal Consumed OT 17699 minutesChangeover Time 239 minutesVA time 8315 minutesDistance traveled 203 minutes 71 30 48 0 6.0 7 0 23 18No.of Workers 20 persons 2 1 2 7 2 1 2 2 1

Production Lead Time (days)days 0 0 0 0 0 0 0 0 0 0.0

Total Consumed Time in minminutes 0 0 0 0 0 0 0 0 0 0

0.0 days

FUTURE 336.6 m.

Delivery

New Factory Layout of Product Lines

Distance Traveled MODEL6

CURRENT 538.9 m.

Panel Line-up

QC Testing

FAT PackingReceiving material

QC IGI Bucket Assembly

Bucket Wiring

Traveled distance 92.2m. from

II I I IWIP should

Traveled distance 99.0

Target Industrial Ef f iciency (I.E.) = V.A.time/ Total time

Increase to 10

Cell

Continuous Flow Production

S/E

S/ E

S/E

E F G

S/ E

S/E

DH

CJ

I

K

Lean Tools: Cell Continuous Flow

22

S/ E S/E B

A

K

M

L

FinishedProducts

Mixed Modeling

Multi-function Workers

Multi-skilled Workers

Lean Tools: Versatility & multi-skill

23

Multi-skilled Workers

Shojinka

Lean Tools: One Piece Flow

One Piece Flow

Order For Order

24

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Lean Tools: Kaizen BlitzKaizen.

Process Kaizen.

System Kaizen.

Kaizen Blitz.

25

Typical Examples:Batch to one piece flow.

Total Cycle time reduction Elimination of “x” defect.Standard Operation Improvement.

Pull Signal.

Pull System.

Push System

Lean Tools: Push vs Pull

26

Push

Pull

Process B

Process A

Fin. Goods

Raw Matl

Supplier Customer

Process C

PUSH SYSTEMInformation Flow

WIPWIP

Part Flow

Execution - Parts completed to schedule without any downstream considerations

Replenishment - Based on projected demand (forecasts)Shop Floor Control - System, transactions, paperwork

Problems - HiddenReaction to changes and problems - Through system - rescheduling

Linkage - Operations are NOT physically linked

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KANBAN : Kanban = Signal

•Signals when to do work •Signals what work to do•Signals when not to do

work

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

etc.

work•Controls inventory

Process B

Process Fi G dRawS li C t

Information Flow

Kanban Locations

Process

PULL SYSTEM

BA Fin. GoodsRaw Matl

Supplier Customer

Part Flow

C

Execution - Parts produced upstream as signaled from the downstream operation or customerReplenishment - Based on consumptionShop Floor Control - Automatic - visibleProblems - Exposed - creates urgency

Reaction to changes and problems - Immediate - on-line and visibleLinkage - Operations ARE physically linked

ProcessProcess

Information Flow

Kanban Locations

Process

PULL SYSTEM

Process B

Process ARaw

MatlSupplier Customer

Part Flow

Process C

Make to Order and Engineer to Order Shops, by definition, operate by PULL since nothing is produced

until an order from the customer is received.

Lean Tools: Kanban System

32

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Lean Tools: 5S System

33

Lean Tools: 5 S System

Lean Tools: Ergonomics

Definition of

Ergonomics.

Ergonomics Zone.

35

Lean Tools: Poka Yoke

What is Poka Yoke?

“Zero Defect”:Source Inspection and the Poka-Yoke System”

Don’t Accept Defects Don’t make defects Don’t pass defects

Remember three rules

By Shigeo Shingo

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Lean Tools: Poka Yoke

Simple signals that provide an immediate understanding of a situation or condition.

Examples:• Shadow boards for tools, supplies, and safety

equipmentC l di

VISUAL CONTROLS

• 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 MEASUREMENT Lean Tools: Visual Management

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LEAN MANUFACTURINGOptimizing industrial processes.

SIX SEGMAMastering all processes in order to satisfy the Customer’s needs and to reduce Non Quality

Lean Vs. Six Sigma

Customer’s needs and to reduce Non Quality Costs.

LEAN Target of Lean• Increase the productivity

• Reduce wastes & delays

• Improve shop floor Managerial relationship

6 SIGMATarget of 6 Sigma

• Assure the Quality of process: Customer Satisfaction & Reduction

NQC

• Reduce the process variability

• Improve the control process

Practical Examples

What is a Value Stream Map (VSM)

The Fundamentals of Lean

p

Before and After of 5S system

43

Reduce Transport/Motion

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IMPACT ON SURFACE IMPACT ON PROCESS FLOW

Nb of Movements/ Day : 29Meters Walked / Day : 10,190 m

Nb of Movements/ Day : 8Meters Walked / Day : 495 m

IMPACT ON SAVING

Manpower : 15 peopleProduction lead Time : 17.8 days

Manpower : 9 peopleProduction lead Time : 3 days

Safety issues : 13 issues Safety : Rectified all 13 issuesProcess Time : 29 min Process Time : 24.5 min

IMPACT ON INDUSTRIAL EFFICIENCY

48

IE= 29% in Year 2008 IE= 48% in Year 2009

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