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Using Lean Thinking
Process Improvements in Light
Manufacturing:
What is Lean?
 Lean is a process improvement and management
philosophy modeled heavily on Toyota
 Based on three beliefs of how process
improvement can be achieved:
 Minimize waste in all forms
 Continually improve processes and systems
 Maintain respect for all workers
What is Waste?
 What does waste mean to Lean?
 Over Production – Creating more product or components than needed.
Ties up $ as inventory.
 Inventory – Excess raw materials, finished products, and Work-in-
Process (WIP). Ties up $ and incurs storage and handling costs.
 Waiting – Delays that prevent work. Also delays getting paid by the
customer.
 Unnecessary transport or human motion– Unnecessary movement of
workers and material (physical distance). Increases lead time and labor
costs.
 Unnecessary processing – Extra steps that don’t add value.
 Defects – Increases material and rework costs.
How do you reduce waste?
 Over Production
 Use a pull system instead of a push system
 Just-in-time Manufacturing
 Inventory
 Production control with Kanban
 Reduce batch sizes
How do you reduce waste?
 Waiting
 Continuous Flow Manufacturing
 Synchronization
 Remove bottlenecks
 Movement or Transport
 Reduce Travel distance
 Reduce unnecessary movement
 Convert functional layouts to cellular layouts
How do you reduce waste?
 Unnecessary processing
 Identify work that does not add value and find ways
to remove it
 Defects
 Standardize work and quality
 Improve quality of craftsmanship will direct hand
offs
Where do you begin?
 Establish a Baseline
 Understand the business
 Breakdown the flow process
 Ask questions and then ask more.
 Investigate
 Apply Lean tools
 Don’t Work in a Vacuum
LEAN TOOLS
 Process Flow Diagrams
 Spaghetti Diagrams
 Swimlane Diagrams
 Value Stream Maps
Process Flow Diagram
 The Process Flow Diagram (PFD) shows the
logical and physical flow of product or component
within a given system
Process Flow
Diagram Examples
Chemical Processes
Image: www.heatingoil.com
Software Application Development
“Getting Things Done”
Image: www.zenhabits.net
Image: www.techjini.com
Spaghetti Diagram
 Plant Layout
Spaghetti Diagram
 Plant Layout
with material
flows
Swimlane Diagrams
 Swimlane Diagram – A diagram that categorizes
groups of activities in a manufacturing process
 By operator, department, or location
 Each group is shown on one lane
 Actions within each group are shown in sequence
within each lane
 Connections between lanes represent transfers of
material or information between groups
 The Swimlane can visually emphasize the
complexity of a process and highlight problem areas
Swimlane Diagram Example
Value Stream Map
 Value Stream Maps track the flow of
material and information
Have a baseline, now what?
 Find and area where you can add value, and
implement it.
Example: Widget Factory
Widget Example – Baseline State
 Making a hypothetical widget requiring cutting,
polishing, welding, testing operations
Swimlane Diagram Layout and Spaghetti Diagram
Baseline widget is transferred between 3 operators and travels 80’.
Widget Example – Lean State
 Making a hypothetical widget requiring cutting,
polishing, welding, testing operations
Swimlane Diagram
Layout and Spaghetti Diagram
Lean widget only needs 1 operator and travels the minimum distance.
Manufacturing is now continuous.
Widget Example - Using Lean
 Capture the baseline sequence
 Capture the order of operations
 Where are operations done and on what
equipment?
 Which employees do what and when – how far do
they move?
 How long does it all take? How long until first
article is complete?
Widget Example - Adding Value
 If each operation uses a batch size of 100 and takes 1 hour,
then:
 Total Production Time and Total Lead Time are 400 hours (!).
 Total distance traveled is 80’.
 If batch size is reduced to 20, then:
 Total Lead Time is 80 hours (LARGE % reduction)
 Total distance traveled is 400’.
 If widgets are produced by one operator continuously, then:
 Total Lead Time is 4 hours (AMAZING).
 Total distance traveled is negligible.
Value added with Lean
 Reductions in waste
 Reductions in labor costs
 Time Savings
 Total Production Time
 Total Lead Time
 faster payments, more throughput, more jobs
 Other improvements
 Quality
 Organization
 Efficiency
 Utilization
 Quantifying wherever possible
What is the Key to Lean?
 Continuous Improvement
 Continuous product and process improvement and the
elimination of non-value added activities is at the core of
lean philosophy.
 Improving the flow of material through new ideal system
layouts at the customer's required rate would reduce
waste in material movement and inventory.
 Incremental
 There is always room for further improvement
What is the Key to Lean?
 Continued Pursue Perfection
 Lean Office
 5S
 Synchronization
 Kaizen
 Poke Yoke
Conclusions
Plan For Every Part (PFEP)

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Lean Manufacturing Overview - MBA Consulting Class

  • 1. Using Lean Thinking Process Improvements in Light Manufacturing:
  • 2. What is Lean?  Lean is a process improvement and management philosophy modeled heavily on Toyota  Based on three beliefs of how process improvement can be achieved:  Minimize waste in all forms  Continually improve processes and systems  Maintain respect for all workers
  • 3. What is Waste?  What does waste mean to Lean?  Over Production – Creating more product or components than needed. Ties up $ as inventory.  Inventory – Excess raw materials, finished products, and Work-in- Process (WIP). Ties up $ and incurs storage and handling costs.  Waiting – Delays that prevent work. Also delays getting paid by the customer.  Unnecessary transport or human motion– Unnecessary movement of workers and material (physical distance). Increases lead time and labor costs.  Unnecessary processing – Extra steps that don’t add value.  Defects – Increases material and rework costs.
  • 4. How do you reduce waste?  Over Production  Use a pull system instead of a push system  Just-in-time Manufacturing  Inventory  Production control with Kanban  Reduce batch sizes
  • 5. How do you reduce waste?  Waiting  Continuous Flow Manufacturing  Synchronization  Remove bottlenecks  Movement or Transport  Reduce Travel distance  Reduce unnecessary movement  Convert functional layouts to cellular layouts
  • 6. How do you reduce waste?  Unnecessary processing  Identify work that does not add value and find ways to remove it  Defects  Standardize work and quality  Improve quality of craftsmanship will direct hand offs
  • 7. Where do you begin?  Establish a Baseline  Understand the business  Breakdown the flow process  Ask questions and then ask more.  Investigate  Apply Lean tools  Don’t Work in a Vacuum
  • 8. LEAN TOOLS  Process Flow Diagrams  Spaghetti Diagrams  Swimlane Diagrams  Value Stream Maps
  • 9. Process Flow Diagram  The Process Flow Diagram (PFD) shows the logical and physical flow of product or component within a given system
  • 10. Process Flow Diagram Examples Chemical Processes Image: www.heatingoil.com Software Application Development “Getting Things Done” Image: www.zenhabits.net Image: www.techjini.com
  • 12. Spaghetti Diagram  Plant Layout with material flows
  • 13. Swimlane Diagrams  Swimlane Diagram – A diagram that categorizes groups of activities in a manufacturing process  By operator, department, or location  Each group is shown on one lane  Actions within each group are shown in sequence within each lane  Connections between lanes represent transfers of material or information between groups  The Swimlane can visually emphasize the complexity of a process and highlight problem areas
  • 15. Value Stream Map  Value Stream Maps track the flow of material and information
  • 16. Have a baseline, now what?  Find and area where you can add value, and implement it.
  • 18. Widget Example – Baseline State  Making a hypothetical widget requiring cutting, polishing, welding, testing operations Swimlane Diagram Layout and Spaghetti Diagram Baseline widget is transferred between 3 operators and travels 80’.
  • 19. Widget Example – Lean State  Making a hypothetical widget requiring cutting, polishing, welding, testing operations Swimlane Diagram Layout and Spaghetti Diagram Lean widget only needs 1 operator and travels the minimum distance. Manufacturing is now continuous.
  • 20. Widget Example - Using Lean  Capture the baseline sequence  Capture the order of operations  Where are operations done and on what equipment?  Which employees do what and when – how far do they move?  How long does it all take? How long until first article is complete?
  • 21. Widget Example - Adding Value  If each operation uses a batch size of 100 and takes 1 hour, then:  Total Production Time and Total Lead Time are 400 hours (!).  Total distance traveled is 80’.  If batch size is reduced to 20, then:  Total Lead Time is 80 hours (LARGE % reduction)  Total distance traveled is 400’.  If widgets are produced by one operator continuously, then:  Total Lead Time is 4 hours (AMAZING).  Total distance traveled is negligible.
  • 22. Value added with Lean  Reductions in waste  Reductions in labor costs  Time Savings  Total Production Time  Total Lead Time  faster payments, more throughput, more jobs  Other improvements  Quality  Organization  Efficiency  Utilization  Quantifying wherever possible
  • 23. What is the Key to Lean?  Continuous Improvement  Continuous product and process improvement and the elimination of non-value added activities is at the core of lean philosophy.  Improving the flow of material through new ideal system layouts at the customer's required rate would reduce waste in material movement and inventory.  Incremental  There is always room for further improvement
  • 24. What is the Key to Lean?  Continued Pursue Perfection  Lean Office  5S  Synchronization  Kaizen  Poke Yoke
  • 26. Plan For Every Part (PFEP)