IT465 Introduction to Lean IT465 lean Manufacturing Introduction

IT-465 Introduction to Lean IT-465 lean Manufacturing

Introduction • Outcomes – Discuss the origins of Lean – Learn why Lean is important in manufacturing and service industries IT-465 lean Manufacturing 2

Lean Operating Concepts • Developed and refined by the Japanese – “The Toyota Production System” (TPS) and later in the USA as” Lean” • Based on the works of Taiichi Ohno, Taguchi, Shigeo Shingo, Deming, Juran, and others. – The fathers of TQM, Lean, and Six Sigma have many common sources with modern Lean approaches IT-465 lean Manufacturing 3

History of Lean Production System IT-465 lean Manufacturing 4

Another Definition of Lean IT-465 lean Manufacturing 5

Another Definition of Lean “Tool Box” • Introduction to Lean • Prominent figures of Lean • Lean is not just for manufacturing • Value add and waste • Waste walks • Spaghetti charts • Hoshin planning • Value Stream Mapping • 5 S • Poka-yoke, error proofing • Total Productive Maintenance (TPM) • Kaizen • Quick change-over/SMED • Pull systems/supermarket • Standardized work • Cellular manufacturing • Theory of constraints • Barriers to implementation • Quick response mfg IT-465 lean Manufacturing 6

History of Lean Production Systems A Lean Focus: Continuous elimination of waste driven by customer satisfaction Customer Satisfaction: • Meeting (or exceeding) customer expectations for the cost, quality, delivery, and suitability of products and services provided • “Delighting the customer” means providing the (benchmarked) best quality, service, and delivery – at a fair market price. IT-465 lean Manufacturing 7

Customer Satisfaction Conventional wisdom: Satisfying customers costs more Wastes and Opportunities • Wastes are any form of wasted resources or effort beyond the minimum required to satisfy customer perceived valueadded activities in products and services provided • Opportunities are revenue/value-generating activities that are being overlooked or not optimized in the current business system IT-465 lean Manufacturing 8

Adding Value • Anything the customer is willing to pay for Must satisfy all three of the following: • It changes the shape or form of the process or product • The customer cares about it • It’s done right the first time The Paradox • Waste elimination increases customer satisfaction while at the same time reduces costs to produce goods and services IT-465 lean Manufacturing 9

Summary • Lean has been around a long time • Lean is based on the collective learning of many “guru’s” and many thousands of companies over the last 100 years. • Any kind of business can benefit by applying the concepts. • Lean focus: reducing time and wastes in processes, focus on the customer. IT-465 lean Manufacturing 10

Prominent Figures of Lean Outcome • Become familiar with the important figures in the history of Lean Six Sigma IT-465 lean Manufacturing 11

The Origins of Lean Henry Ford • The “Father of Lean” • Considered human waste to be the worst form • Used time and motion studies to develop assembly line • Moving assembly line reduces operator motion and reduces lead time IT-465 lean Manufacturing 12

The Origins of Lean Sakichi Toyoda • Noticed that if there was a problem in production, it was produced over and over, creating a lot of waste • Developed the concept of Poka-yoke “mistake proofing” IT-465 lean Manufacturing 13

The Origins of Lean Kiriichi Toyoda (Sakichi’s son) • Wanted to create a car company • Studied Ford – Noticed that too much material created delays • Created concept of “Just-In-Time” – Producing the right part in the right place at the right time IT-465 lean Manufacturing 14

The Origins of Lean Six Sigma Taiichi Ohno • V. P. of Engineering at Toyota • Founder of Toyota Production System (TPS) • Believed in creating a profound image for people to grasp • Challenged employees by telling them what to do, but not how to do it. IT-465 lean Manufacturing 15

The Spread of Lean Six Sigma Shigeo Shingo • Worked at Toyota with Taiichi Ohno • Perfected the art of Single Minute Exchange of Dies (SMED) • Promoted TPS principles and setup reduction • Helped to create material replenishment based on US supermarket concepts – kanban “feed me next” • Sprea Lean principles around the world IT-465 lean Manufacturing 16

The Spread of Lean Six Sigma Dr. William Edwards Deming • Was sent to Japan after WWII to assist with quality issues • Developed Plan-Do. Check-Act (PDCA) approach to defect reduction • Change agent for Japan’s economy IT-465 lean Manufacturing 17

Lean • It is not only for manufacturing – Principles apply to service and process industries also • Based on the Toyota Production System • Make sure that everything flows • Look for waste at every step of the process, eliminate it, and make sure it never comes back IT-465 lean Manufacturing 18

Lean • Lean Service – Focus on reducing service time – Every process has waste, regardless of industry • Lean Process – Create product “just-in-time” • Deliver what the customer needs, in the quantity needed, when the customer needs it. – Continue to focus on improvement IT-465 lean Manufacturing 19

Value Add and Waste Outcomes • Understand the concept of value add • Understand the types of waste What is Lean Manufacturing • The fundamental principal of Lean Manufacturing is to eliminate waste – “Create flow, eliminate waste” IT-465 lean Manufacturing 20

What is Lean manufacturing IT-465 lean Manufacturing 21

Five Steps of Lean Implementation 1. Specify value – identify what is value and what is not • • • 2. 3. 4. 5. Anything the customer is willing to pay for The process object has to be physically changed Must be done right the first time Map the value stream Create flow Pull Pursue perfection Waste is not value added IT-465 lean Manufacturing 22

Eight Types of Waste “Downtime” • Defects • Overproduction • Waiting • Non-utilized talent • Transportation • Inventory • Motion • Extra processing The 8 types of waste take up 9598% of all lead time. IT-465 lean Manufacturing 23

Defects Definition: • Any part not made, or service rendered, to the customer’s specifications the first time • Money and time wasted Causes • Lack of process controls • Poor quality of incoming materials • Inadequate operator training • Poor work instructions IT-465 lean Manufacturing 24

Overproduction • Faster than needed • Sooner than needed • More than needed IT-465 lean Manufacturing 25

Waiting Time lost when people, material or machines are waiting Causes: • Unbalanced workload • Equipment breakdowns • Long set-up times • Poor material handling practices IT-465 lean Manufacturing 26

Non-Utilized Talent Wasted potential for improvement results when people doing the work are not consulted for ideas on improving the methods of work Causes: • Old guard thinking, politics, business culture • Low or no investment in training IT-465 lean Manufacturing 27

Transportation of parts and materials around a facility creates waste Causes: • Poor plant layout • Large batch sizes • Large storage areas IT-465 lean Manufacturing 28

Inventory Any material in excess of the one piece required for the next step in production Three Types: • Raw material • Work-in-progress • Finished goods Causes: • Inventory held “just-in-case” problems arise • Unreliable shipments by suppliers IT-465 lean Manufacturing 29

Motion Movement of people or machines that does not add value to product Causes: • Poor plant or workstation layout • Poor workplace organization and housekeeping • Sorting/looking for items IT-465 lean Manufacturing 30

Extra Processing Doing more than minimum required to transform material into an acceptable product Causes: • Accommodate perceived customer needs • Redundant approvals/inspections required • Unnecessary reports produced Examples • Duplication • Rework • Engineering changes IT-465 lean Manufacturing 31

Wrap Up 8 types of waste: • D. O. W. N. T. I. M. E. 3 parts to Value Add • Customer willing to pay for it • Changes the process object • Done right the first time IT-465 lean Manufacturing 32

Five Steps of Lean Implementation 1. 2. 3. 4. 5. Specify value Map the value stream Create flow – address defects to create flow Pull Pursue perfection Poka-yoke (mistake proofing) • • The removal of all potential causes of error through design, process, or mistake-proofing devices, to ensure consistent process results Poka-yoke helps build quality into processes to achieve “zero defects” IT-465 lean Manufacturing 33

Zero Defects The goal is to understand the concept and practice of zero defects and how to develop Poka-yoke to eliminate these defects If 99. 9% were acceptable, you would not mind if. . • Connection post offices would lose 10, 271 pieces of mail per day • O’Hare International Airport would have 1, 264 unsafe arrivals/departures per year • Doctors at New York hospitals would drop 288 newborn babies per year. IT-465 lean Manufacturing 34

Tracking Defects Typically defect rates are tracked by: • Quantity • Kind • Percent With zero defects thinking they are tracked at: • The point at which defect is discovered • The point at which defect occurred Attitude • I do not ACCEPT defects • I do not MAKE defects • I do not PASS ON defects IT-465 lean Manufacturing 35

Defects vs. Errors Poka-yoke – methods or devices to improve product quality and ensure consistent process results These devices: • Prompt feedback and action as soon as the defect or error occurs • Perform 100% auto-inspection The first step to Source Inspection is to distinguish between errors and defects • “Defects” are the results • “Errors” are the causes of the results IT-465 lean Manufacturing 36

Cause-Errors The most common manufacturing errors: • Processing errors or omissions • Assembly omissions or inclusion of the wrong part • Processing wrong work piece Conventional Approach to Human Error • Make excuses • Place blame and/or expect defects • Catch at final or sampling inspection Mistake-proofing Approach to Human Error • Eliminate the possibility of the mistake • Find the root cause and eliminate • Ask why the process failed • Apply mistake-proofing device for 100% inspection • No defects generated IT-465 lean Manufacturing 37

Machine/Equipment Error Recognize that machines make errors (drills break, tools become dull, fixtures wear, etc. ) A methodology for developing Poka-yoke • A reliable method • A standard – a work method or procedure • A reliable method – an effective standard A reliable method includes only those elements which, when followed, cause a predictable/desirable result, and when not followed, result in a predictable defect. IT-465 lean Manufacturing 38

Summary • Error Proofing – Poka-yoke – Japanese for “error proofing” – To achieve zero defects – Make it impossible to produce defects IT-465 lean Manufacturing 39