Lean thinking is based on over two centuries of manufacturing improvement. It aims to improve efficiency by targeting and reducing waste and non-value added activities through identifying value-adding activities from the customer's perspective, categorizing all activities, breaking processes down, and streamlining non-value added activities. The main types of waste are overproduction, waiting time, transport, over-processing, inventory, motion, defects, and unused employee skills. Lean principles focus on specifying value, identifying all process steps, removing barriers to smooth and continuous flow, and continuously improving to achieve perfection.
3. Une courte historique
1800 1900 2000
Royal Navy,
Maudslay/Brunel
Production lines
Standardisation
F.W.Taylor
Scientific
Management
Henry Ford
Assembly Lines
Sakichi Toyoda
Creation of
Toyota
Training Within
Industry
Job Instruction
Job Improvement
Job Relations DemingJuran
Reengineering
Identification waste
Quality tools
(pareto, SPC)
Shiego
Shingo
Taiichi Ohno Ishikawa
Weaknesses of batch production
Pull Flow, U‐shaped cells, Poka yoke,
Quality Circles
Schonberger
Japanese
Manufacturing
Techniques
(1982)
Goldratt
The Goal
(1984)
Womack/Jones
The Machine That
Changed the World
(1990), Lean
Thinking (1996)
Lean is not new but is based on more than two centuries of manufacturing
improvement!
5. Objectives of VA/Waste analysis
Improve the organization’s efficiency by targeting
and reducing waste and non‐value added
activities
Enable positioning closer to the customer
request thereby ensuring its satisfaction
Approach
5 Streamline NVA
4 Reduce / eliminate Waste
3
Categorise the activities (VA / NVA /
Waste) from the customer’s viewpoint
2 Break it down into distinct activities
1 Identify /map the process
Value Adding Activities
The customer is willing to
pay for this activity
because it provides value
Activities that transform
resources into finished
products, services or
information.
Value Adding Activities
The customer is willing to
pay for this activity
because it provides value
Activities that transform
resources into finished
products, services or
information.
Value added activities
“Necessary’’ Non
Value Adding
Activities that must be
maintained to support
other value added
activities
Or activities necessary
for other unavoidable
reasons.
“Necessary’’ Non
Value Adding
Activities that must be
maintained to support
other value added
activities
Or activities necessary
for other unavoidable
reasons.
Necessary but non‐
value added activities
Non‐Value Adding
(Waste)
Activities that consume
time, resources or
space, but bring no
value to the customer.
Non‐Value Adding
(Waste)
Activities that consume
time, resources or
space, but bring no
value to the customer.
Waste
AFTERBEFORE
Cycle time
Definition :
Value Added (VA) is time spent or activities that contribute
directly to the satisfaction of the customer requirement.
Reduced lead‐time and
cost, time for additional VA
7. Overproduction waste is caused by:
Production by pushed flow
Large batch size
The absolute necessity to occupy time
Local objectives
Lack of customer focus
Lack of visibility of available stock
Poor management of priorities
Some examples by sector:
Production
Batch size higher than demand
Production undertaken to increase the
"profitability" of the department
Logistics
Actions undertaken before receiving the
orders
Moving a volume of stock greater than
the future consumption
Principles :
«Overproduction » consists of producing a
good or service before it is necessary.
Finance
Redundancy in the production and return
of various indicators and reporting
Duplicate data entry
Level of detail greater than necessary in
the accounting
8. Transport results in waste because:
It increases the cycle time
It consumes resources
It takes up circulation space unnecessarily
It increases the work‐in‐process
It Increases the risks of breakage
Transport waste is caused by:
A poorly designed production process or workshop
A break in the production flow (e.g. outsourcing)
Overproduction, which requires storage in a reserved area
Some examples by sector :
Production
Poorly designed workshop
Storage areas far away from workstations
Lack of visibility of the production flow
Logistics
Poorly defined preparation
Poor layout of storage areas
Warehouses too far from the activity
centre (distanced from the customers)
“Unnecessary transport"
concerns all movements of
goods that do not bring value
added to the customer.
Unnecessary transport is
problematic, because it
consumes resources and
increases the risk of breakage
or damage.
Principles :
Finance
Paperwork that needs monitoring,
signatures and inter‐departmental
approval
A complex approval system for
purchasing invoices
9. Inventory results in waste because:
The value of the stock is immobilized
The cost of the area occupied
The increased risk of obsolete and defective units
It reduces the number of references that can be stored
It hides more fundamental problems
Inventory waste is caused by:
A lack of reliability of sales forecasts
A poorly sequenced production schedule
Overproduction
Production managed by pushed flow
A lack of supplier reliability
Some examples by sector :
Production
Stock of finished goods without customer
orders
Stock of semi‐finished products or
components greater than necessary
Logistics
Stock of a product greater than the order
commitments
Inventory after bad sales forecasts or
poor management of logistics variants
Administration
Orders waiting to be processed
Bills awaiting payment
Stacks of files to be processed
“Inventory" comes from the
wastes of overproduction
and waiting time.
Inventory has the peculiarity
of compensating for more
fundamental problems.
Beyond immobilized funds,
inventory prevents the
resolution of problems by
obscuring them.
Principles :
10. Motion wastes caused by:
A poorly designed workstation
A lack of training for operators who do not know where to
find what they need
Misplaced tools
A poorly replenished stock
Some examples by sector :
Production
Finding tools to make a change in series
Urgent replenishment of the workstations
with materials because they are almost
out of stock
Distance of machines for one operator
Logistics
Shared equipment (carts, printers...) away
from the work area
Stock shortage of consumables in the
work area (labellers, pallets...)
Administration
Poor office layout
Physical validation when an online
validation would be sufficient
Centralised photocopiers
Principles :
Unlike the transport waste, which refers to goods,
unnecessary motion relates to the movement of
people.
Any movement that does not bring added value to the
process is considered a waste.
11. Over‐processing results in waste because:
It consumes resources unnecessarily
It generates additional variability of the process
It can reduce the life expectancy of a product (an engine
that runs too fast, a lamp which is too bright...)
Oveer‐processing waste is caused by:
Bad habits "I've always done it like this!”
A misunderstanding of the process by the operator
A poor definition of customer requirements
Lack of innovation, improvement, or questioning of the
existing process
A standard that has become obsoleteSome examples by sector :
Production
Exceeding the technical specifications
required by the customer
Proliferation of quality inspections
Logistics
Reconditioning, handling…
Over‐packaging
Quality control to identify errors in
preparation of orders
Over‐processing is a process
that is more complex than it
should be, where the
customer may have to pay for
a level of quality or
complexity that does not
match their requirements.
Principles :
IT
Development of features not required by
the user
An oversized workstation with respect to
user needs
Overestimating the need for security
12. Defects results in waste because:
The cost of materials
The need for quality inspections
The costs of reprocessing
The return of defective goods
The loss of production capacity
Wastes caused by:
A poorly defined standard
The absence of Poka Yoke (mistake‐proofing)
Poor operator training
A lack of reliability (or an error of setting) of a machine
Some examples by sector :
Production
Operator errors
Defective machines
Scrap at setup
Ineffective plans / instructions
Logistics
Product inversion
Missing products
Error in picking
Supplier errors
Service
Data input error
Missing information for file processing
Misprint in a commercial document
Incorrect allocations
Principles :
Anything that is not well done the first time is
considered a waste.
Errors and defects are wastes
which generate additional costs for
inspections, reprocessing,
customer dissatisfaction,
cost of returned goods ...
13. Waiting results in waste because:
Disruptions to production
Congestion when trying to catch up
The lengthening of cycle‐time
The loss of capacity
Waiting waste is caused by:
Supply disruption
A lack of versatility and flexibility of the operators
Machine breakdowns
Poor production planning
Mismanagement of the resource capacity constraints
Principles :
Waiting time applies to both product and people.
Any form of unsynchronised flow can cause waiting
time.
Some examples by sector :
Production
Stopping a machine
Waiting on replenishment
Waiting for production planning
Pending availability of a shared resource
Logistics
Pending replenishment by a forklift
operator
Waiting to load the carrier
Waiting for a truck
Downtime of compuer system
Service
Participation in a never‐ending meeting
Waiting for information to complete a
transaction or close accounts
Waiting on approval from a superior
Document approval circuit too long
16. What is a Value Stream?
A value stream is all the activities, both value‐added and non‐
value‐added required to bring a product or service from
concept to launch and from order to delivery.
It includes all the steps involved in providing a product or
service from initial concept until the customer pays for the
product or service.
The value stream is made up of all functions and stakeholders
who need to work in harmony to provide the
product/service.
17. A Value Stream can be composed of a number of processes
Process Efficiency = Value Adding Time / Total Time
Application
Typical Cycle
Efficiency
World Class
Cycle Efficiency
Machining 1% 20%
Fabrication 10% 25%
Assembly 15% 35%
Continuous Manufacturing 30% 80%
Business Processes –
Transactional
10% 50%
Business Processes –
Creative/Cognitive
5% 25%
Process Efficiency can be increased by identifyng and eliminating
the non value adding time, or the « Wastes »
18. Looking at processes…...
What you think it is... What it actually is... What it could be...
What are some of the tools that help us do this?
21. 5
4 Compute the Takt Time
Deal with bottlenecks and balance
the loads
Definition :
In German, Takt means “rate.” Takt time represents the
rate of production needed in order to meet customer
demand on‐time. It is used as a basis to smooth and
monitor production, and to improve the balance of the
production lines.
Benefits:
Respecting Takt Time makes it possible to produce with
minimal waste, stocks and operating costs. It gives the
manufacturing tempo to follow. Takt Time can be used to
directly check the “health” of product flow and to enforce
reactivity during problem‐solving and process improvement
Methodology:
3 Calculate productive time on the one
hand, customer demand on the other.
2 Observe, then identify the bottleneck
1 Target the production line to improve
This calculation is only valid if the demand remains relatively constant
CompanyCompany
Delay between
two good units
Steps in the process
Time
1 2 3 4 5 6 7 8 9
Takt Time Constraints Bottleneck
Takt Time =
Total available manufacturing time
Customer Demand (volume)
“1 bottleneck hour lost = 1 hour of
production over the whole process
lost”
1 – Takt Time
2 – Bottleneck = Longest operation in the process
3 – Constraint = Any operation longer than the Takt Time that hinders the fulfilment of
the customer’s demand (in volume)
22. Benefits:
Limits production to customer demand
Limits wastes as well as work‐in‐process and stock levels
Reduces lead‐time for products
Optimize use of resources
Definition:
Transformation of a push flow into a pull flow is a very important step
of a Lean project.
The transformations radically change how planning, production and
management of incidents occurring during a process are handled.
This step aims at going from a production by batches to an order‐
prompted production.
7
Level the load according to customer
demand
6
Implement the pull flow through Kanban,
supply the workstations
Example Approach
5
Reorganize the floor into cells according to
the “target” map
4
Study the balance of workstations in regards
to Takt Time
3
Analyze the setup, the modes of planning,
product movement, stocks…
2
Map the existing value flows and compute
Takt Time
1 Stabilize performance and define standards
24. Methodology:
6 Correct differences and implement continuous
improvement
5 Train the teams in work cells and start
production
4 Reduce batch sizes
3 Select implantation types and storage locations
2 Balance workstations by reorganizing tasks
1 Stabilize quality performance, lead time and
operations time
Definition:
The optimization of work cells requires the reorganization of workstations
in such a way as to obtain compact production lines in the form of cells.
Benefits:
Reduces lead time
Identifies quality issues earlier
Ensures better visibility of flow
Favourable conditions:
Producing relatively similar families of products
Having a stable production time base and reliable capacity data
Owning equipment and tools in good working conditions
Setting up qualified operators
Planning a balanced workload
Line Shapes :
Visibility
Permutation
Assembling 2
process ends
Structural
constraints
25. Definition :
SMED : Faster changeover system. It aims at systematically reducing
preparation time and adjustment time during a changeover
Benefits :
Improving productivity through
limitations in stops for changeovers,
without damaging the quality of the setup
Optimization of use of resources (better
synchronization of jobs, elimination of
superfluous operations, improved
installation of machinery, improved
flexibility, reorganization of stocks and
tools)
Principle :
Changeover Time is the unproductive period of time during which operators
reconfigure equipment. SMED analyses this series of tasks and identifies
possible sources of improvement in order to shorten this period.
Methodology :
Shorten external tasks Standardise storing and cleaning procedures (5S) & track setup defects on a daily basis.
Shorten internal tasks
Improve organization of tasks (example: working in parallel)
Make carrying‐out of these tasks easier (example: fast screw guns, rolling tool carts…)
Convert internal into
external
The goal is to reduce internal tasks to the bare necessities.
Separate internal and
external tasks
Internal Tasks = need to stop the equipment (e.g.: tool assembly)
External Tasks = while the equipment is running (e.g. : preparation of tools to assemble)
Analyse operations
Observe the changeover and make a list of tasks and a map of movements.
27. Definition :
OEE is an indicator used to monitor the rate of utilisation of
equipment
It is a measure of the efficiency of a production line.
Benefits :
Identification and breakdown of waste in production into different
categories upon which improvement actions can be put in place.
Principles :
Defined as : OEE = Useful Time / Required Time (or Value‐Added / Total Time)
Useful Time = time during which the machine produces good units at its normal rate (number of good units * cycle time).
One can improve the OEE by different methods (SMED, TPM, 5S, just‐in‐time, Self‐Checking and Self‐Maintenance, Ergonomics...).
Methodology :
Sustainability Ensure continuing improved performance
Formalize the new standards
Optimisation
Implement the action plan and eliminate problems
Deploy necessary tools
Data Analysis
Frequency analysis
Time analysis
Capturing
production data
Simplify the measurement
Limit constraints for data capture
Preparation
of the
measurement
Inform and educate staff
Establish a list of causes of machine downtime
Usage :
Identify possible areas
of improvement
Workshop
shutdown
Cleaning,
idle time,
training,
meetings,
breaks...
Failures,
adjustments,
missing staff,
changeovers
…
Rate
differences
Non quality
RT
UT
OEE
OT
UT
OPR
TT
UT
ERR
30. • Lean organizations are learning organizations,
Lean is a culture, not only a set of techniques
• Lean culture needs to be implemented as a
“whole system” and sub systems of the work
flow also include:
▫ Motivation and incentive systems
▫ Training systems
▫ Organization and management levels
▫ Improvement processes
• Lean is a culture and all cultures are complex
Lean Culture
31. • Developing a lean culture requires strong top
management commitment and leadership
• It involves:
▫ creating a vision
▫ chartering pilot and kaizen teams
▫ monitoring the results and modifying the
whole process as it proceeds
Developing a Lean Culture
32. Sustaining a Lean Culture
Paramount to sustainability is to keep in minds that
Lean is a journey, not a destination.
The real benefits come form a sustained effort over
years, not weeks or months.
34. Want to know more?
• “The Goal”, Eli Goldratt (1984)
– Written as a novel ‐ can be read in an evening. Should be compulsory for everyone who works
in manufacturing.
• “Kaizen”, Masaaki Imai (1986),
– Insight into the Japanese culture from a Japanese.
• “The Machine that Changed the World”, Womack, Jones & Roos (1990)
– The book that blew the lid off the West v. Japan debate. It’s all about cars but is full of ideas.
• “Lean Thinking”, Womack and Jones, (1996)
– The sequel, more down‐to‐earth after six years of Lean Thinking
• “The Gold Mine”, Michael and Freddy Ballé (2005)
– A must‐read for production managers, written by a French father and son!
• “Toyota Way / Toyota Way Fieldbook” (2006)
– A high‐level ‘how‐to’ for Lean implementation
• “The Lean Toolbox”, John Bicheno (2009)
– Quick reference that covers all the main Lean tools
35. Peter Klym Management / Lean Business France
Operational Excellence Consultancy and Training
Peter Klym
• UK‐born, currently based near Toulouse in the south‐west of France
• Works both directly with customers or on a subcontractor basis
• Available for assignments in France and internationally
• 30 years of experience in both industries and service sectors
• Consultant since 2008
Websites : www.leanbusiness.fr
http://international.leanbusiness.fr
Email : peter.klym@leanbusiness.fr
Téléphone : +33 6 84 52 77 70