Understanding Lean Manufacturing Principles

1. Lean Manufacturing An OverviewDr. Richard A. Wyskrwysk@psu.eduhttp://www.engr.psu.edu/cimAugust 12, 2002

2. Agenda • Review brief history of manufacturing systems • Distinguish between mass, craft and lean manufacturing • Introduce key Concepts of Lean Manufacturing • Review the kinds of changes needed to be considered a lean manufacturer.

3. Readings • Chapter 18 of Computer Aided Manufacturing, Wang, H.P., Chang, T.C. and Wysk, R. A., 3rd Edition (2004 expected) http://www.engr.psu.edu/cim/ie450/ie450ho1.pdf • “Building the Lean Machine,” Advanced Manufacturing, January 2000. http://www.engr.psu.edu/cim/ie450/buildingthelean.pdf

4. ExerciseReadiness Assessment Test A.K.A. RAT AS A INDIVIDUAL, prepare a detailed process plan for the part shown noted in the course web page. http://www.engr.psu.edu/cim/ie450/ie450rat.doc Make sure the the time required to produce the part (Process, locating and handling) is included in the plan. This assignment will be collected in class and graded. Open Book / Open Notes

5. ExerciseReadiness Assessment Test A.K.A. RAT AS A TEAM (4 members), take 3 minutes to provide a written to answer the following questions: • Were all the plans the same? • Is one better than the others? • Why? Closed Book / Closed Notes

6. Objectives • To identify waste elements in a system • To apply value stream analysis to a complex engineering/manufacturing system • To implement 3 M’s in a complex engineering environment • To be able to identify and implement the 5Ss of lean

7. Craft Manufacturing • Late 1800’s • Car built on blocks in the barn as workers walked around the car. • Built by craftsmen with pride • Components hand-crafted, hand-fitted • Excellent quality • Very expensive • Few produced

8. Mass Manufacturing • Assembly line - Henry Ford 1920s • Low skilled labor, simplistic jobs, no pride in work • Interchangeable parts • Lower quality • Affordably priced for the average family • Billions produced - identical

9. Lean Manufacturing • Cells or flexible assembly lines • Broader jobs, highly skilled workers, proud of product • Interchangeable parts, even more variety • Excellent quality mandatory • Costs being decreased through process improvements. • Global markets and competition.

10. In-class exercise Individually, respond to the following question (1-3 minutes) What are the most prevalent forms of waste in a job that you’ve had or in a process (or activity) that you are very familiar with?

11. Definition of “Lean” • Half the hours of human effort in the factory • Half the defects in the finished product • One-third the hours of engineering effort • Half the factory space for the same output • A tenth or less of in-process inventories Source: The Machine that Changed the World Womack, Jones, Roos 1990

12. Product Shipment Product Shipment Lean Manufacturing • is a manufacturing philosophy which shortens the time line between the customer order and the product shipment by eliminating waste. Business as Usual Customer Order Waste Time Lean Manufacturing Customer Order Waste Time (Shorter)

13. The Nature of Lean Mfg • What Lean Mfg is not • JIT • Kanban • Characteristics • Fundamental change • Resources • Continuous improvement • Defined • “A system which exists for the production of goods or services, without wasting resources.”

14. New Paradigm: Non-Blaming Culture Management creates a culture where: • Problems are recognized as opportunities • It’s okay to make legitimate mistakes • Problems are exposed because of increased trust • People are not problems - they are problem solvers • Emphasis is placed on finding solutions instead of “who did it” SOLUTIONS PROBLEMS

15. What makes a manufacturing system lean? – the 3 M’s of lean • muda – waste • mura - inconsistency • muri - unreasonableness

16. What makes a manufacturing system Lean?

17. Definitions • Systems • Recognition • Efficiencies • Waste • Muda • 7 types • Truly lean

18. Waste “Anything that adds Cost to the product without adding Value”

19. 7 Types of Muda • Excess (or early) production • Delays • Transportation (to/from processes) • Inventory • Inspection • Defects or correction • Process inefficiencies and other non-value added movement (within processes)

20. 7 Forms of Waste CORRECTION MOTION Repair or Rework WAITING Any wasted motion to pick up parts or stack parts. Also wasted walking Any non-work time waiting for tools, supplies, parts, etc.. Types of Waste PROCESSING OVERPRODUCTION Producing more than is needed before it is needed Doing more work than is necessary INVENTORY CONVEYANCE Maintaining excess inventory of raw mat’ls, parts in process, or finished goods. Wasted effort to transport materials, parts, or finished goods into or out of storage, or between processes.

21. Who wants what... $ Cash !! Value !! Customer Low Cost High Quality Availability Your Company Profit Repeat Business Growth

22. Elements of Lean Manufacturing • Waste reduction • Continuous flow • Customer pull • 50, 25, 25 (80,10,10) Percent gains

23. Benefits of Lean Manufacturing • 50 - 80% Waste reduction • WIP • Inventory • Space • Personnel • Product lead times • Travel • Quality, costs, delivery

24. Setting the Foundation • Evaluating your organization • Management culture • Manufacturing culture • Lean Manufacturing Analysis • Value stream (from customer prospective) • Headcount • WIP • Inventory • Capacity, new business, supply chain

25. Tools of Lean Mfg/Production • Waste reduction • Full involvement, training, learning • Cellular mfg • Flexible mfg • Kaikaku (radical change) • Kaizen (continuous improvement) & standard work • 5S • Jidoka (autonomation) • Poka-yoke (visual signals) • Shojinka (dynamic optimization of # of workers) • Teien systems (worker suggestions)

26. Tools (cont.) • Continuous Flow (10% - 25%) • SMED (Shingo) • Andon • Takt time • Line balancing • Nagara (smooth production flow)

27. Tools (cont.) • Customer pull (10%- 25%) • Just-in-time • Kanban

28. Henry Ford - Standards “To standardize a method is to choose out of the many methods the best one, and use it. Standardization means nothing unless it means standardizing upward. Today’s standardization, instead of being a barricade against improvement, is the necessary foundation on which tomorrow’s improvement will be based. If you think of “standardization” as the best that you know today, but which is to be improved tomorrow - you get somewhere. But if you think of standards as confining, then progress stops.” Henry Ford, 1926 Today & Tomorrow

29. Standardized Work • Captures best practices • Posted at the work station • Visual aid • Reference document • work sequence • job layout • time elements • safety • Developed with operators • Basis for Continuous Improvement

30. Other Tools • Visual Factory • Error Proofing • Quick Change-over • Total Productive Maintenance

31. 5S Programs • Seiri (sort, necessary items) • Seiton (set-in-order, efficient placement) • Seison (sweep, cleanliness) • Seiketsu (standardize, cont. improvement) • Shitsuke (sustain, discipline)

32. Visual Factory • “Ability to understand the status of a production area in 5 minutes or less by simple observation without use of computers or speaking to anyone.” • 5-S • 1S Sift and Sort (Organize) • 2S Stabilize (Orderliness) • 3S Shine (Cleanliness) • 4S Standardize (Adherence) • 5S Sustain (Self-discipline)

34. Error Proofing • Preventing accidental errors in the manufacturing process • Error detection • Error prevention • A way to achieve zero defects.

35. Exercise (3 – 5 minutes) • Individually, identify an area or system that you feel lends itself to improvement using the 5S. • What S’s can be easily applied (low hanging fruit)?

36. Exercise (3 – 5 minutes) • As a group, discuss the recommendations made by each group member. • Can other recommendations be made? • What activities do you feel will make the most significant impact?

37. End part #1 – Waste Elimination Questions?