An Introduction to Lean by Michael Milch There
An Introduction to Lean by Michael Milch There are four purposes of improvement: easier, better, faster and cheaper. These four goals appear in the order of priority. - Shigeo Shingo All we are doing is looking at the time line from the moment the customer gives us an order to the point when we collect cash. And we are reducing that time line by removing the non-value-added wastes. - Taiichi Ohno
What is “Lean”? The core idea is to maximize customer value while minimizing waste. Lean means creating more value for customers with fewer resources. Working from the perspective of the customer who consumes a product / service, “Value” is defined as any action or process that a customer would be willing to pay for. “Lean” is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful and targeted for elimination or minimization.
Definition of Value-Add • Value Add: Any activity that increases the market form or function of a product / service that the customer is willing to pay for. • Non-Value Add: Any activity that does not add to the market form / function. These activities should be reduced, simplified, or eliminated. • There are only 3 types of activities: 1. 2. 3. Actions that add value. Actions that do not add value but are necessary (muda – type 1). Pure waste (muda – type 2)
Muda – Any activity that does not add value. Eliminate Minimize Type 2 muda: Pure waste. Type 1 muda: Necessary activities that don’t add value. Type 1 muda. Value-adding activities. Maximize Type 1 muda should be kept to an absolute minimum and Type 2 muda should be eliminated as soon as possible.
Shigeo Shingo, a Japanese engineer observed, it’s only the last turn of a bolt that tightens it – the rest is just motion.
The Wastes 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Over Production. Waiting. Transportation. Over Processing. Inventory. Motion. Rework/Scrap: Making defective products. Intellect: Unused Talent. Overburdening (muri – “impossible”, “unsustainable” or “unreasonable”). Uneven production and sales (mura – “unevenness”, “irregularity” or “lack of uniformity”). The opposite of waste is VALUE.
Over Production Waste • Making it earlier, making it faster and making more than is required. • Causes of over production: • • • Unnecessary inspections. Misuse of automation. Process takes long to setup. Unleveled scheduling. Unbalanced workload. Over engineering. Just-in-case logic. Gold-plating. ETC.
Waiting Waste • Idle time created when waiting for … <fill in the blank>. • Causes of waiting waste: • • • Unbalanced workload. Unplanned maintenance. Unleveled scheduling. Defect correction. Long setup times. Misuse of automation. Quality problems. Poorly educated people. ETC.
Transportation Waste • Transporting work, parts and material around. • Causes of transportation waste: • • • Poor layout of facility. Too much traffic. Poor understanding of the process flow for production. Large batch sizes, long lead times and large storage areas. Pool Logistics. ETC.
Over Processing Waste • Efforts that add no value to the product / service from the customers viewpoint. • Causes of processing waste: • • True customer requirements not clearly defined. Lack of communication. Product changes without process changes. Just-in-Case logic. Over processing to accommodate downtime. Excessive approvals. Extra copies or excessive information ETC.
Inventory Waste • Any supply in excess of a one piece flow through the manufacturing process. • Always ready in the right place, at the right time, in the right amount. • Causes of excess inventory: • • Need for buffer against inefficiencies and unexpected problems. Product complexity. Unleveled scheduling. Poor market forecast. Misunderstood communications. Reward System. Unreliable shipments by suppliers. ETC.
Motion Waste • Any movement of people or machines that does not add value to the product / service. • No matter the task, the right tool is always within arm’s reach. • Organizing and cleaning, even office spaces have a feeling of efficiency and focused production. • Causes of motion waste: • • Poor people or machine effectiveness. Tools and parts not near at hand. Process not will well defined or inefficient. Poor organization and housekeeping. Inconsistent work methods. Unfavorable facility or cell layout. Extra “busy” movement while waiting. ETC.
Defects Waste • Inspection and repair of material in inventory • Causes of defects: • • Weak process control. Poor Quality. Unbalanced inventory level. Deficient planned maintenance. Inadequate education, training or work instructions. Product design. Customer needs are not understood. There is no advantage to a highly automated machine just to make defective parts faster!
Intellect: Unused Talent Waste • The waste by not using all the people’s mental, creative and physical abilities. • Causes of people waste: • • • Old guard thinking, politics … the business culture. Poor hiring practices. Low or no investment in training. Low pay, high turnover strategy. Not using everyone. Bias.
Overburdening Waste Overburdening occurs when workers and equipment are overstretched. This can lead to burnout, injury and poor work. With equipment, it leads to engine failure, broken tools and worn-out parts. Causes of Overburdening Waste: • • • Cost cutting. Increasing output without increase in resources. Unrealistic goals. Too much process. Lack of maintenance.
Uneven Production and Sales Waste In a production environment it refers to sales and production spikes and dips. Standardized and predictable work is easy to perform efficiently. Uneven work is often inefficient because of less rhythm, more mistakes and higher costs. Causes of Overburdening Waste: • • Supplier issues. Sales completed ahead of product. Unrealistic goals. Economic cycles. Too much or little product. Demand ahead of production limits. ETC.
The 5 S system • A workplace organization method that uses a list of five Japanese words: seiri (SORT), seiton (SET IN ORDER), seiso (SHINE), seiketsu (STANDARDIZE), and shitsuke (SUSTAIN). • Sort: Eliminate anything that is not absolutely necessary in the production system. • Set in Order/Straighten: Every tool should have a place. It should either be in its place or in the hands of the worker. No third option. • Shine: Keep the workspaces clean and well lit. A bright and clean work environment helps see waste. Note: Overcleaning can be a form of waste. • Standardize/Systemize: Sorting, Setting in order, and shining need to be made routine. • Sustain: Self-discipline through regular audits.
Value Stream Mapping • Value stream map is a representation of the flow of materials from supplier to customer through an organization as well as the flow of information. This enables an overview to see at a glance where the delays are in the process, any restraints and excessive inventory. The current state map is the first step in working towards an ideal state for an organization. • Steps to create a VMS: • • • Selecting the product (family) to map. Define VSM Symbols. Defining the process boundaries. Defining the Process Steps. Defining the Information Flows. Process Data. Calculating the Time Line. Identify the Multiple Suppliers and Customers. Interpreting the Data. Next Steps (Ideal and future state maps).
Point of Use Storage (POUS) • Point of use’ is simply the practice of storing any inventory you have at the point where it will be used. • This is in contrast to inventory that is stored in a warehouse, or at some other secondary location. In those cases, it can be difficult to see if there is a mismatch in the usage and the amount stored on hand. Despite the best efforts of the material management team, there can be lapses. Often, the best person to tell if there is too much inventory on hand is the person who is using it on a daily basis. If she is trained what to watch for—for example, a lot of parts still left in one bin when the other bin returns—then the operator becomes an additional resources in the war on excess inventory. • Another benefit of storing inventory at the point of use is that it drives down quantities out of necessity. Real estate along the assembly line is in hot demand. There simply isn’t space to store a lot of inventory. • With rare exception, manufacturers are encouraged to keep as much of their inventory on their production lines as possible. Secondary locations and warehouses creates the need for whole new processes. Someone has to manage the location, replenish the line, build twice the racking and shelving, and update additional labels or kanban cards with each change. • When inventory is expensive, has long lead times, or large order quantities, it may make sense to have a secondary location that feeds multiple point of use locations on the line. You will often see this for fasteners. Many work areas may need the same bolts or screws. In most cases, though, secondary locations add work that does not exist with point of use inventory
LEAN tools • Standardized Work. Developing and implementing a standard way to accomplish work. • 5 S System. Bringing orderliness and consistency to the work place. • Visual Controls. Communicating information so that it readily understood and available. • Plant Layout. Organizing the physical layout of the facility to optimize movement of people, material, and information. • Organizational Culture. Developing people to expose waste and empowering them to eliminate it. • Quick Changeover. Quickly changing over processes to create the capacity for smaller runs. • Batch Reduction. Making smaller runs more often. • Quality at Source. Ensuring an activity is done correctly when it is done. • Point of Use. Storing materials and information where they are used/required. • Total Productive Maintenance. Reducing the incidence of unplanned machine downtime. • Pull/Kanban. Achieving flow of materials when one-piece flow is unattainable. (This should always be considered a temporary fix until one-piece-flow end state is achieved. ) • Cellular Flow. Arrangement of processes to enable one-piece flow. • Etc. …
Next Steps: • Understand what your successful products and services are – from the customer’s point of view. • Develop the end-to-end process. • Understanding the work that creates value for the customer in order to stabilize, standardize and improve. • Eliminate or Minimize Waste wherever possible. • Learn to manage by seeing the whole, setting direction and focusing on the what the customer values. • Ask the right questions (i. e. , the 5 Whys analysis) – to find out about what isn’t known that could improve the customer’s value. • Develop people through coaching and mentoring.
Bibliography & References • Hartman, Ben The Lean Farm: How to Minimize Waste, Increase Efficiency, and Maximize value and Profit with Less Work. Chelsea Green Publishing, Vermont 2015. • Ohno, Taiichi Toyota Production Systems: Beyond Large-Scale Production. Productivity Press, 1988. • Ohno, Taiichi Ohno’s Workplace Management. Mc. Graw-Hill 2013 • Hirano, Hiroyuki 5 S for Operators: 5 Pillars of the Visual Workplace (for Your Organization). Productivity Press, 1996 • Ries, Eric The Lean Startup. Crown Business 2011. • • • Lean Manufacturing Tools: leanmanufacturingtools. org/ Lean Enterprise Institute: www. lean. org Manufacturing Leadership Institute: www. idatix. com The 5 S Store: www. the 5 sstore. com The University of Michigan Lean Program: www. isd. engine. umich. edu
So simplify the problem of life, distinguish the necessary and the real. - Henry David Thoreau
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