Overview of key LEAN Management (Lean Manufacturing +) Techniques

1. Toolbox
1
Quexx International Ltd.

2. LEAN Toolbox
Definitions
is a is a part of TOYOTA WAY.
systematic It is a production system
approach based on the philosophy of
of the complete elimination
eliminating waste of all waste from all aspects of
so every step product creation in pursuit of
adds value the most efficient
for the Customer. production method.
"The key to the Toyota Way and what makes Toyota stand out is not any of the individual elements.
What is important is having all the elements together as a system.
It must be practiced every day in a very consistent manner —not in spurts."
Taiichi Ohno
2
Quexx International Ltd.

3. LEAN Toolbox
14 Principles
Toyota's 14 Management Principles of Lean Manufacturing*
1. Base your management decisions a long-term philosophy, even at the expense of
short-term financial goals.
2. Create continuous process flow.
3. Use pull systems to avoid overproduction.
4. Level out workload.
5. Get quality right the first time.
6. Standardization for continuous improvement and employee empowerment.
7. Use visual controls, so no problems are hidden.
8. Use only reliable, thoroughly tested technology - serves your people and process.
9. Grow leaders who thoroughly understand the work done by your company.
10. Develop exceptional people and teams
who follow your company's philosophy.
11. Respect your extended network of suppliers and Highest Quality – Lowest Cost – Shortest L/T
partners by challenging them and helping them improve. Just‐in‐Time Jidoka
Continuous Stop process
12. Go see for yourself in order to understand the situation. Flow and fix
problems
13. Make decisions slowly by considering all options; Takt Time
implement them rapidly. Separate
people from
14. Become a lean organization through Pull System machines
relentless reflection and continuous improvement. Heijunka Standard Work Kaizen
*Jeffery Liker‘ "The Toyota Way" Stability
3
Quexx International Ltd.

4. LEAN Toolbox
The TOYOTA WAY – Core Values
Five core beliefs and values shared by all
Toyota team members who, at every level, are expected to apply these
values in their daily work and relations with others:
Genchi Genbutsu ‐ go to the source to find the facts to make correct
decisions, build consensus and achieve goals.
Kaizen ‐ continually improve. No process can ever be declared perfect,
there is always room for improvement.
Challenge – embrace challenge, maintain a long‐term vision and meet all
challenges with the courage and creativity needed to realise that vision.
Teamwork ‐ stimulate personal and professional growth, sharing
opportunities for development and maximising individual and team
performance
Respect ‐ respects others, make every effort to understand others,
accept responsibility and do your best to build mutual trust.
4
Quexx International Ltd.

5. LEAN Toolbox
Process ( ) <> Time ( )
Current
WEEKS
Value Stream
Customer Process Process Process Process
Focus Value Cycle Metrics Flow
LEAN Stream Takt
Focus Mapping Pitch
4 10 13
Muda JIT Heijunka
7 Wastes Kanban Process
2 5 7 Levelling
LEAN 11 14
LEAN Design 3 7 Tools PDCA
9 SPC A3 Report
Tools
Kaizen
Jidoka
7
Continuous Supplier
and Autonomation
Improvement Integration
Techniques
1 6 8 12 15
Poka-yoke 5S Andon Gemba
Strategic
Mistake Workplace Visual Go & See
Planning
Proofing Organization Controls Management
Future
Value Stream
DAYS
5
Quexx International Ltd.

6. Hoshin – Kanri LEAN Toolbox
Management‐by‐Policy HOSHIN KANRI
STRATEGY ‐ define approach POINTING
DIRECTION
MANAGEMENT
which will support
strategic objectives LONG‐TERM
POLICY CONTROL
OBJECTIVES ‐ define measurable
parameters for key VISION PLANNING
strategic areas
TARGET
MEASURES – establish metrics of AND MEANS
performance necessary
to achieve objectives HOSHIN KANRI
MANAGEMENT MANAGEMENT
BY POLICY BY TARGETS AND MEANS
MANAGEMENT
BY POLICY DEPLOYMENT
6
Quexx International Ltd.

7. LEAN Toolbox
MBP – Key Elements
BUSINESS
DEFINITION
DIRECTION VISION
MISSION
THEME
OBJECTIVES
STRATEGY MEASURES
STRATEGY
SHORT‐TERM PLAN
PLANNING
MID‐TERM PLAN
ACTION
LONG‐TERM PLAN
7
Quexx International Ltd.

8. HOWS
Design
Features
HOW – Design Feature #1
HOW – Design Feature #2
HOW – Design Feature #3
HOW – Design Feature #4
HOW – Design Feature #5
HOW – Design Feature #6
Quexx International Ltd.
HOW – Design Feature #7
HOW – Design Feature #8
HOW – Design Feature #9
PCP ‐ Process Control Plan
8
LEAN Toolbox

9. LEAN Toolbox
Design – 3P (Production Preparation Process)
3P Definition Customer
Needs
… a part of LEAN Design.
Stage 1: Design Design
It includes: Planning Plan
‐ QFD Design
Research
‐ design reviews at each stage Design
Input
‐ post‐start up and post‐mortem Design Design
Stage 2: Design
‐ cross‐functional team approach and Process Review
Development
‐ de‐bugging of design and systems Design
Output Design
Changes
Design
Transfer
3P Basics Stage 3: Design
Design
Records
multiple alternatives for each Verification
process step
evaluated against defined criteria, Stage 4: Design
Validation
e.g., takt time, cost.
LEAN design principles followed
Product
9
Quexx International Ltd.

10. LEAN Toolbox
Kaizen ‐ Principles
Definition:
Kaizen = uninterrupted, ongoing incremental improvement
Key focus areas:
people are the most important assets
involve everybody
gather and analyze quantitative evidence
identify opportunities Kaizen
consider risks and benefits
gradually eliminate waste
Go and See Gemba Mgmt Standardization
keep improving Customer Focus JIT and Kanban
New Product Devel’t Automation / Autonomation
TQC Error‐proofing
Employee Empowerment Productivity Improvement
5S Workplace and Discipline TPM
10
Quexx International Ltd.

11. LEAN Toolbox
Muda = Waste
MUDA:
Muda = waste, doesn't add value or is unproductive
Transport (moving products that are not actually required to
perform the processing)
Inventory (components, WiP and finished product not being
processed)
Motion (people or equipment moving or walking more than is
required to perform the processing)
Waiting (waiting for the next production step)
Overproduction (production ahead of demand)
Overprocessing (resulting from poor tool or product design
creating activity)
Defects (the effort involved in inspecting
for and fixing defects)
TIMWOOD
Other forms of Waste:
Unused or underutilized human skills
Missed customer demand, requirements or expectations
11
Quexx International Ltd.

12. LEAN Toolbox
Mura = Unevenness
MURA:
Mura = Unevenness (inconsistency, irregularity)
Happens sometimes
Happens some places
Happens to some people
Happens only in some conditions
One OK; the other NOT
Solutions:
Just In Time (the right part, the right time, the right amount)
First‐In‐First‐0ut
Kanban “pull system”
Heijunka – process leveling
Multi‐process handling
Buffers
Defects must be quickly identified and corrected.
12
Quexx International Ltd.

13. LEAN Toolbox
Muri = Unreasonableness
MURI:
Muri = overburden, unreasonableness, absurdity
obstructed work flow
illogical directions
non‐repeatable operations or process steps
irrational methods or decisions
unjustified/unreasonable takt time
endurance allowed for a process
Muri = effect of poor organization (work, workplace, logistics, etc.):
‐ pushing a person (or a machine, often beyond limits)
‐ carrying (too) heavy weights
‐ moving things around too much, too often
‐ dangerous, unreasonable or annoying tasks
‐ forcing work significantly faster than usual
13
Quexx International Ltd.

14. LEAN Toolbox
7 Tools of Quality
INFO
FROM Legend:
FIELD
MEETING
INPUT:
INVESTIGATION
REGISTRATION Production process Item location
Product EXAMPLES check sheet
distribution
info. REQUEST REPORTING
Technical MORE HIGH
Report ESTABLISH LOW Dimension
FIELD
PRIORITY FILE Defective item
File - history INFORMATION ACTION ab c d e f g h i j k l m n o p 50
Dealer Visit check 45
Service Total: x i 45
Customer REPORT REPORT REPORT MONITORING 39
REQUEST x n 40
Evaluation SUMMARY TO TO - Scars 3
TO MANA QC/QA SQA INVESTIGATION x
Warranty
BY THE ADMINISTRATION - x N c 35 31
Sales GEMENT
Returns SUPPLIER 6 o i 30
- - Cracks
Other INVESTIGATION SUPPLIER - - . d 25
FLOW - - Incomplete 1 x o e 20
- - - 12
FIELD f n 15
9
CHARTS: 4
REPORT ESTABLISH - - -
Distorted t 10 5 5 4 4
- - 3
COUNTERMEASURE * organization -
-
Damaged 12 s 5 1 1
- -
PROCEDURE - 0
- -
* process x
6 x
ACTION - - Flows
* procedure
- - - - - x x x x
- - - - - - x x
- 2 x
- - - - - - - Burrs
* information - - - -
- - - - x
- 12
ADVISE ISSUE * activity Indentations x
x x
DISTRIB. BULLETIN - - - - - - - - - - - Area affected
MONITOR EFFECT DEALER x x x
- - - - - - - - - - - 3 x x
IN THE FIELD - - Broken
- - - - - - - - - No preven.mainten'ce With preven.maint'ce
- - - - - - - - - - - - - - - -
0
Foreign matter AIR BUBBLE
ADVISE SUCCESSFUL FILE
RESULT 1 2 3 8 19 16 10 5 4 2 1 1 2 x FOREIGN PARTICLE IN GLASS
Overheated
UNSUCCESSFUL 10 10 22 7 SCRATCHES
Frequency
Flowchart Checksheet Pareto
30 Freq.
MGM'T PROCESS MACHINE MEN
Concentricity %
Part: Pin y
SCALE IND.TRAINING
Operation:Final machining
II I
MIXER 25
SPC TRAINING Part No.: 608 2445 - A
QUALIFICAT. Audit performed by:A.R. 20
EXTRUDER 23
ON-THE-JOB TR. Date:12.06.92
TEAMWORK Batch No.236/92
Illumin. CUTTER SKILLS 20 Batch quantity:1250
ABSENTEEISM Sample quantity:79 15
13.56
UCL
INVOLVEMENT PRODUCT
ENVIRON. 17
Y
KNOWN 15 10 pn
CLEANSERS
Humidity ADDITIVES VERIFIED 6.48
12 CL
SEPARATORS VISIBLE
EXPERIMENTAL 5
CATHALYSTS 10 UCL/LCL
FILLERS
ADEQUATE 9 POINT
RESINS ROUTINE
PLASTICISER 7
UP-DATED x
POLIMERS 5 1 2 3 4 5 6 7 8 9 10 11 13 15 17 19 21 23 25 III X IV
WRITTEN 5 12 14 16 18 20 22 24 SUB-GROUP
MATERIAL METHOD 4
2
1
Control Charts Scatter
CaE or Fishbone 0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.10
mm.
Histogram (P, Pn, C, U, X/R)
14
Quexx International Ltd.

15. LEAN Toolbox
7 Tools – Application
Graphs G F C P C H R C S P L O
l h a i u o c i i t
Most R E
o e r s n n a e n h Legend:
Frequently A w c e t t t e e
D C r t r
Used k t o G likely use
P C i h o
o g e r G
a a
in H h S
r l r a r G most likely use
a h D g r
a p a r
Quality-related S r e i r t C D
m h p a
t t a a h i Rubber volume swell
Applications h p
s s g m a a Test performed in 80C temp.
h
r r g 16
s
a t r V
QUALITY PROCESS 14
m m o
Problem identification l
12
u
Problem investigation
m 10
Cause Identification [
e
% 8
Select Countermeasure
]
Action Plan Develop't s 6
w
Process Monitoring 4
e
Countermeasure follow-up l
2
Quality verification l
0
Quality Engineering
0 1 2 3 4 5 6 7 8 9
Quality Performance
Exposure [days]
Quality Assurance
Supplier Quality Assurance. A B C D
Quality Experiments
Quality Costs
Reliability
Durability "Quality is fitness
for purpose" -
Brainstorming select graph for
Quality Planning your specific
application
Quality Reporting being guided by
Quality Audits the above
FMEA
Proc.Analysis/Productivity
15
Quexx International Ltd.

16. LEAN Toolbox
Poka‐Yoke ‐Error‐proofing
Definition:
Making it easy (possible) to do it right, and
difficult (impossible) to do it wrong.
Key strategies:
Awareness:
Expecting mistakes, communicating the potential,
and planning the design of the product or process
to detect and/or prevent it.
Detection:
Allow the mistake to happen but provide some
means of detecting it and alerting someone so
that it is fixed before sending it to our customer.
Prevention:
Do not allow the possibility for the mistake to
occur in the first place.
16
Quexx International Ltd.

17. LEAN Toolbox
PDCA <> DMAIC
DMAIC
(methodology)
DEFINE
MEASURE
ANALYSE
IMPROVE
CONTROL
17
Quexx International Ltd.

18. LEAN Toolbox
PDCA = Plan‐Do‐Check‐Act
Plan for
improvement, …apply
define objectives plan
and req’d action Plan and
(Mgmt) action
items
P
…assist
PDCA
Action Do
and (Mgmt) A D
(worker)
prevent
occurrence C
Check
(worker,
inspector, … if improvement
Mgmt) “works”
and is effective
Example: Implementation Procedure
Research ‐ develop examples and cases (PLAN)
Organize the team (PLAN)
Develop a plan and budget (PLAN)
Announce the start of the program (DO)
Training and educate participants (DO)
Define deadline and make commitment (DO)
Monitor and evaluate the results (CHECK)
Find opportunities and correct (ACTION)
18
Quexx International Ltd.

19. LEAN Toolbox
5s – Workplace Organization
1S - SEIRI ORGANIZATION
No mess…
everything in the right place
2S - SEITON NEATNESS
Practical layout…
encourages productivity and safety
5S - SHITSUKE DISCIPLINE
Follow 5S practices…
check effectiveness,
perform audits
3S - SEISO CLEANING
Clean workplace…
improved work environment
4S - SEIKETSU STANDARDIZATION
Making it right…
the first time and every time
19
Quexx International Ltd.

20. LEAN Toolbox
5S – Workplace Standardization
FLOW CHARTS or FLOW DIAGRAMS
(diagrams that show the step-by-step sequence of actions/activities in a process)
PURPOSE/APPLICATION:
HELPS TO UNDERSTAND THE PROCESS STATION 15 Operator movement sequence
EDUCATES ABOUT PROCESS STEPS SHELVING SHELVING
PRESS
IDENTIFIES STEPS/ACTIVITIES WHICH ARE: 6 5
13 12 9 7 3
* MISSING 10 2 BOX
* MISPLACED BOX
15 14 11 8 4 1
* UNNECESSARY 16
* EXCESSIVE CONVEYOR CONVEYOR
HELPS TO MAINTAIN FOCUS
IDENTIFIES ERRORS (PROCESS / LAYOUT) THIS IS A RECOMMENDED SEQUENCE - Try to improve it!
SHORTENS FAMILIARISATION
CONCISE INSTRUCTIONS , DO’s and DON’Ts
20
Quexx International Ltd.

21. LEAN Toolbox
Jidoka ‐ Autonomation
Definition:
A process which combines automatic action (stop, alert, adjust – a Quality
Control function) of the machine with human interaction / intervention
(Quality Assurance function).
Autonomation:
identifies defects Standard process /
workflow is modified. Machine detects problem and
eliminates overproduction communicates it.
triggers investigation
prevents re-occurrence
Normal process/workflow
JIDOKA
Cause of the problem affected.
Steps: is identified
and removed.
Detect Line
Stop stopped.
Correct
Identify the root cause
Define and implement a countermeasure.
Verify effectiveness
Maintain or correct further 21
Quexx International Ltd.

22. LEAN Toolbox
JIT ‐ Kanban
Definition:
is a “pull” scheduling system that helps determine what to produce, when to
produce it, and how much to produce.
6 Rules of Kanban:
Do not send defective products to the subsequent process
The subsequent process comes to withdraw only what is needed
Produce only the exact quantity withdrawn by the subsequent process
Level the production
Fine tune Kanban JIT ‐ Kanban
Rationalize the process A Production Instruction Kanban
A Parts Retrieval Kanban
A
A
A AAA A
AAA
AAA AAA
A A AA A AAA AAA
A A A Next Process
AAA AAA
AAA AAA
AAA AAA
Proceeding Process 22
Quexx International Ltd.

23. LEAN Toolbox
SPC – Statistical Process Control
Definition:
“… the application of statistical methods
to the monitoring and control of a process
to ensure that it produces as much
conforming product as possible
with the least possible waste.”
USL USL
UCL UCL
- -
R R
LCL LCL
LSL LSL
PROCESS NOT IN CONTROL FOR RANGES PROCESS NOT IN CONTROL FOR RANGES
(LONG RUN UP) (LONG RUNS ABOVE AND BELOW -/R)
USL USL
UCL UCL
- -
R R
LCL LCL
LSL LSL
PROCESS NOT IN CONTROL FOR RANGES PROCESS NOT IN CONTROL FOR RANGES
(POINTS BEYOND CONTROL LIMITS) (POINTS TOO CLOSE TO THE -/R)
USL
UCL Steps:
-
R Understand the process
LCL Identify the cause of variation
LSL
PROCESS IN CONTROL FOR RANGES
Eliminate special causes 23
Quexx International Ltd.

24. LEAN Toolbox
Andon – Visual Control
Definition: Actual:
means, devices, or mechanisms designed to Designated location/position
manage or control our operations (process) Defined quantity/maximum inventory
sand serve the following purposes: Distinguished differences
make the problems, abnormalities, or Specified form / format
deviation from standards visible to everyone
allow corrective action can be taken Analog:
immediately Color
display the operating or progress status in Shape
a easy to see format. Contour
provide instruction Symbol
convey information Characters
provide immediate feedback Number
Graph
Lights/Illumination
Sound
Touch
Smell
Taste.
24
24
Quexx International Ltd.

25. LEAN Toolbox
Levelling ‐ Heijunka
Definition:
a technique for reducing the waste caused by process unevenness (mura) and
increase of the production efficiency by producing goods at a stable and
constant rate, to allow further processing to be subsequently carried out at a
Mixed Production ‐ Traditional
constant and predictable rate.
Monday A A A A A A A A A A A A A A A A A A A A
Tuesday A A A A A A A A A A B B B B B
Key: Wednesday
Thursday
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
B
Demand Levelling Friday C C C C C C C
Production Levelling Mixed Production ‐ TPS
Monday A A A B B C A A A B B C
SMED
Tuesday A A A B B C A A A B B C
Levelling by Volume Wednesday A A A B B C A A A B B C
Levelling by Product Thursday A A A B B C A A A B B C
EPEC Friday A A A B B C A A A B B C
Inventory proportional to the variability of demand
Optimum between batch size, demand and process change
25
Quexx International Ltd.

26. LEAN Toolbox
A3 – Tataki Dai
How
Does
it
work
1 – Identify a problem
2 – Research and understand it
3 – Perform root cause analysis
4 – Establish countermeasure(s)
5 – Propose an implementation plan
6 – Define follow up plan and outcomes
7 – Discuss
8 – Endorse
9 – Implement
10 – Follow and evaluate 26
Quexx International Ltd.

27. LEAN Toolbox
Gemba
Definition:
Genchi Genbutsu – "go and see" requires that in order to truly understand a situation
one needs to go to 'gemba' or, the “real place” ‐ where work is done.
‐ a key management problem‐solving technique
‐ the shopfloor problems needs to be understood and solved at the shopfloor.
‐ the management need to frequent the place where real value is actually created.
Guidelines:
Reports distance us from reality
Management responsibility is to “know”
Management is expected to lead improvement efforts
Hands‐on experience is irreplaceable
“Management by wandering around”
Gemba decisions given priority
Three “reals”:
1 ‐ real Gemba (shopfloor)
2 ‐ real Gembutsu (product)
3 ‐ real Jujitsu (facts)
27
Quexx International Ltd.

28. LEAN Toolbox
What’s next?
5W+H LEAN Accounting
SUGGESTION SCHEMES LEAN Construction
MOTIVATION LEAN Distribution
TEAMWORK LEAN Procurement
COMMUNCATION LEAN Government
HANSEI (self-reflection) LEAN Healthcare
JISHU-KANRI (autonomous LEAN IT
groups) LEAN Jobshop
KAIZEN-TEIAN (business LEAN Laboratory
improvement) LEAN Office
KAMISHIBAI (visual LEAN Procurement
communication of 5S) LEAN Software
NEMAWASHI (consensus) LEAN ….
QUALITY CIRCLES
SUPPLIER INTEGRATION
YOKOTEN (best practices) ?
28
Quexx International Ltd.

29. LEAN Toolbox
Quexx International Ltd.
Ph: 1 778 628 6807 E-mail: mail@quexx.com Web: www.quexx.com
29