Week 1 Introduction Lean Manufacturing

Objectives
Appreciation of the historical context for lean thinking Awareness of the contrast between mass and lean Ability to define customer value and 7 wastes with respect to application examples Describe the power of kaizen events

Agenda
Supply Chain Management History of Lean Lean vs Traditional Thinking Waste and Value Sand cone

Literature

What Is The Problem?

History of Lean

Why were Dutch-traders so successful?

History of Lean
Arsenal in Venice

Assembly line (T-Ford)

JIT at Toyota Lean Manufacturing Lean Thinking

Muda (Waste)

Muri (Overburden)

Mura (Oneveness)

Lean Vs.Traditional
0 Lead time reduction Productivity improvements 25 50 75 100

WIP Reduction
Quality improvements Space savings

Assignment Lean Vs.Traditional

Buying A Buy cheapest in the world B. Buy to achieve lowest total cost Business strategy A. Economic of scale B. Flexibility and adaptability Sourcing A. Buy in country where manufacturing is performed B. Support with dual sourcing C. Minimize Number of Suppliers Supply chain A. Keep supply chain short as possible B. Supply chain is as strong as its weakest supplier Sales price A. Sales price = Cost + Profit B. Profit = Sales price Cost Manufacturing A. One piece flow B. Batch and queue Planning A. Mix of push and pull B. Push Quality A. Inclusion (built-in by design and methods) B. Inspection after production

It is all about People .

What is Lean?

Philosophy The endless pursuit of waste elimination Delivers value to the customer, with little or no
unnecessary consumption of resources
Makes work more satisfying (because we spend more time on doing the right things). Can create more capacity by creating efficiency.

Lean focuses on value- as defined by the customer- by

eliminating waste.

What is Value?
Three criteria: 1. Transformation of goods or information 2. The customer wants it What, When, Where, How 3. Do it right the first time .

PRINCIPLES OF LEAN-7 WASTES

What are the WASTES of Lean? Transportation Inventory PEOPLE Motion Motion Processing Waiting Waiting TYPES OF Overproduction Fixing WASTE Defects Inventory Overprocessing Moving Making Too Things Much Defects
ITY AL QU

ITY T N QUA

What kind of Waste is displayed here?

Assignment
Observe the video about a grocery. What kinds of waste do you think are eliminated or reduced ?

Batch Processing vs One Piece Flow

Inventory Hides Problems

Bad Design
Lengthy Setups Poor Quality Machine Breakdown

Inefficient Layout

Unreliable Supplier

Lower Levels Of Inventory To Expose Problems

Bad Design Lengthy Setups Inefficient Layout Poor Quality Machine Breakdown Unreliable Supplier

Sand Cone Model

Assignment
Paradigm Shift (see BB)