LEAN MANUFACTURING

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 What is Lean Manufacturing?
• The optimization of value in our
process so that we have the ability to
make exactly what is needed, when it
is needed and in the quantity it is
needed by our customer
• The relentless identification and
elimination of waste from our process
so that we can flow at the rate of
customer demand
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 WHAT DO YOU THINK ABOUT
THIS?

Think of the rocks and boulders as barriers because they slow

down the water flow. 5S is the first step to eliminate these
barriers.
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 Concept of 5S

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 Finding the Waste
The 8 Wastes of Shopfloor

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 Objectives
• Understand what waste is
• Be able to identify waste on the
shop floor
• Generate some ideas on how to
address waste
• Change how we see the work
we do
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 How Will Lean Help Us?
• Reduce Lead Time to our customers by
eliminating waste from our system
• Reduce frustrations by removing
barriers to doing our jobs
• Encourage everyone to get involved in
improving the process
• Increase customer satisfaction
• Optimally utilize resources while
meeting our customer’s needs
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 What is Value?
• A measurement of the worth of a product, or
service, by a customer based on it’s
usefulness in satisfying a customer need
• An activity, process or operation that
changes the product from one form to
another in order to get it closer to the
customer’s specifications
• It is something that the customer is willing to
pay for
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 What is Waste?
• Any activity that adds costs or time but does
not add value
• Consuming more resources (time, money,
space, etc) than are necessary to produce
the goods, or services, that the customer
wants
• Pure Waste: Actions that could be stopped
without effecting the customer
• Incidental Waste: Actions that need to be
done based on how the current system
operates but do not add value
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 Ice Berg Concept

VISIBLE
WASTE 10 %

INVISIBLE
WASTE 90%

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 10%

Pure Waste

Incidental 50%
Waste
Value 40%

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 The 8 Types of Waste
 Overproduction
 Inventory
 Transportation
 Motion (Operations)
 Processing
 Defects / Quality
 Waiting
 People’s Skills
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 Overproduction
• Supplying the process with more than is needed to
meet order requirements, sooner and faster than it
is needed, causes almost all other types of waste
• This is the worst waste of all, because it helps
cause all the others

• Common causes:
– Producing more than is
required to make up for yield
loss
– Scheduling production to
forecasted demand
– Long changeovers or avoiding
changeovers lead to large lot
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production
 Inventory
• Requires people, equipment and space to count,
transport, store and maintain it
• If we do not get orders the material will become
obsolete, and be thrown away
• Inventory is often used to help hide other wastes

• Common causes:
– Overproduction
– Poor equipment layout
– Long changeover times
– Defective, or questionable,
parts
– Mismatched production
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 Inventory Hides Waste
Finished
Goods

Sea of Inventory

Quality Supplier House

Long Problems Keeping Poor
issues
Setups Scheduling
Line Employee Communication
Imbalance Availability Problems

Long Machine
Transportation Downtime

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 Reducing Inventory Uncovers
Opportunities to Improve,
Opportunities That Must Be Addressed!

Quality Supplier House

Long Problems Keeping Poor
issues
Setups Scheduling
Line Employee Communication
Imbalance Availability Problems

Long Machine
Transportation Downtime

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 Transportation
• Double or triple handling, moving in and out of
storage areas and warehouses
• Material can get damaged if it’s moved too much
• It adds no value and is often used to get the extra
inventory out of the way

• Common causes:
– Extra Inventory
– Retention points before and
after operations
– Excessive distance
between operations (layout)
– Single skill focused
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 Motion
• Walking without working (away from workstation)
• Searching for tools, materials or information
• Reaching, bending or unnecessary motion due to
poor housekeeping or workplace layout
• Process is not designed with employees in mind
• Common causes:
– Poor workstation layout
– Isolated operations
– Shared tools
– Fatigue
– Workstation congestion

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 Processing
• Doing more than is necessary to produce an
effectively functioning product
• Extra setup steps, over-specification of the
process, extra processing steps

• Common causes:
– Lack of standard work or
processes
– Equipment over designed
– Process not updated with
technology changes
– Lack of effective problem
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solving 19
 Defects / Quality
• Defective or scrap materials
• Cost of inspecting defects
• Responding to customer complaints
• Rework or re-inspection of questionable materials

Common causes:
– Emphasis on downstream
inspection; questionable
material passed on
– Lack of standard work
– Material handling
(transportation)
– Process design/equipment
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 Waiting
• Operator waiting for machines to run or cycle
• Machine waiting for operator
• Waiting for parts, instructions, approval,
information, maintenance, decisions…

• Common causes:
– Mismatched production
rates
– Poor layout
– Machine breakdowns
• Ours or upstream
– Insufficiently staffed
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 People’s Skills
• Employees are seen as a source of labor only, not
seen as true process experts
• People are told what to do, and asked not to think
• Employees are not involved in finding solutions,
opportunities to improve our process are missed
• Common causes:
– Management does not
involve employees in
problem solving
– Narrowly defined jobs and
expectations
– Old school management,
worker relationships
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 How Does Waste Get There?

• Fail to understand why we do something a

certain way, so we continue doing that way
even if the limitation has been removed
• Root cause of problems is not addressed or
a band aid solution is implemented

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 How Can We Find It?
• Find the value added work, everything else
is waste
• Go out there and see it
– Observe our processes as if you do not know it
– Talk to the operators so you can understand
why we do things the way we do
• What is the operation about? Why is it necessary?
• Spaghetti diagrams
– Map the flow of materials on a plant layout
– Identify storage points, transportation, etc
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 How Can We Find It?
• Introduce it
– Implement one piece flow into the process and waste will rise to the
surface
• Have the right attitude
– Waste is hard enough to find when you want to find it, if we don’t want to
find waste it will be impossible to root it out and remove it

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 Waste – the simpler part…

Being Able to See IT!

(once we know what it is)

The Real Challenge …

knowing how to properly
remove it!
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 How Do We Remove It?
• All of the lean tools are designed to remove
and identify waste
• 5S
• Standard Work
• Quick Changeovers
• Mistake Proofing (POKA YOKE)
• Kanban
• One Piece Flow
• Kaizens
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 RECAP

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 Value Defined
Value-Added Activities
 Transforms or shapes material or information
 Customer wants it
 Done right the first time

Incidental Waste
 No value created but required by current technology
 No value created but required by current thinking
 No value created but required by process limitations
 No value created but required by current process

Pure Waste
 Consume resources but creates no value for the customer
 Could be stopped and it would be invisible to the customer

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 Attitude is Critical
“If you think you can or you think you
can’t, you’re right.”
Henry
Ford

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 Who and When?
DAILY AUDIT - SELF
WEEK AUDIT - MANAGER/FLOOR INCHARGE
MONTH AUDIT - MANAGEMENT

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 LEAN MANUFACTURING
FACTORY TOUR

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 THANK YOU

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