Simple overview of Lean made for anyone new to Lean .
Simple, very easy to understand , made for front line workers,supervisors
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4. Defects and the Hidden Factory
4
Shipped on time and customer happy
We Made $$$$
ProductionMaterial
Ship order
CUSTOMER
• No Wasted Time
• No Wasted Money
• No Wasted Resources
• No Wasted Material
90%
Customer Quality
5. Defects and the Hidden Factory
5
Yield After
Inspection or Test
.
Scrap
Rework
Hidden Factory
NOT
OK
ProductionMaterial Inspect First Time
Yield
OK
• Wasted Time
• Wasted Money
• Wasted Resources
• Wasted Floor space
66% not 90%
Customer Quality
6. Defining Lean
• “A systematic approach to identifying & ELIMINATING WASTE
(NON-VALUE-ADDED ACTIVITIES) through the implementation
of CUSTOMER PULL SYSTEM, CONTINUOUS ONE PIECE FLOW
AND IDENTIFYING AND IMPROVING PROCESS BOTTLENECKS.”
Lean has been defined in many different ways.
Leading to Leading to
Eliminate
Waste
Reduced Cycle
Times
Increased
Capacity
8. Definition of Value Added
Value Added
Any activity that is adding value to the part and the customer is
paying for. Example: any process where you are doing something
to the part (cutting, welding, riveting, bending)
Non-Value Added
Any activity that does not add Value to the part. Example:
moving parts from one area to another, reworking
parts, set-up/change-overs, repairs
9. Lean = Eliminating the Wastes
Value Added
Typically 95% of all lead time is non-value added
1. Overproduction
2. Waiting
3. Transportation
4. Non-Value Added Processing
5. Excess Inventory/Material
6. Defects
7. Excess Motion
8. Underutilized People
Non-Value Added
5%
10. | | 10
1. Producing Defects (SCRAP)
2. Reworking parts due to process problems
3. OVER-TIME to make up lost time (In-efficiencies)
4. Time Waiting i.e. Set-Up/Change-Over time, delivery of supplier
materials
5. Wasting time walking around and looking for tools, material,
people,
6. Moving parts from one area to another & staging them into
(WIP)
7. Carrying excess Inventories of parts more than needed ($$ tied
up)
11. | | 11
Not utilizing operators to their full
potential
Over relying on a select few while others
are Inadequately trained
Operators are unable to rotate and help
each other out to balance the work-load
High overtime, increased pressure/stress
12. Benefits of cross functionally trained workers
• Workers can do each others work, help out when
someone is sick, on holidays, quit
• Workers help improve bottleneck operations by
helping out each other
• Variety in work making it more full-filling
• Training new workers
| | 12
13. Basic Lean Concepts
Pull Systems
• Production scheduling method used to link
downstream activities to upstream activities
• Nothing is produced until the customer signals a
need
• Work begins when Customer Order is received
• Material is ordered based upon a demand signal
(KANBAN) based on usage
• Avoids overproduction, work backlog, and defects
14. TAKT TIME
• TAKT TIME
– Beat of the Drum in production
CUSTOMER DEMAND
TIME
TAKT TIME =
15. QUESTION ON CYCLE TIME
40 min
20 min25 min
15 min
30 min
1
54
3
2
•What is the process cycle time?
•What is the process bottleneck?