Lean principles

Value

Kaizen (C.I.) VSM

Pull Flow

Lean philosophy: Waste (non-valued added elements of business) elimination

Value: Defined by internal, external, legal, and regulatory customers

What is Value?

Any entity in the business (manufacturing and/or service, profit, and non-profit organization) that has no
“waste”

Customer VA:

• Functionality of product/service
• Fast delivery
• High quality
• Low cost
• Warranty obligations

Business VA:

• Finance/Accounting
• Legal
• Regulatory
• Sustainability
Seven types of waste (Muda):

Originally purposed by Toyota Production System (TPS) and presently accepted in lean organizations as a
fundamental definition of waste

• Inventory (unnecessary WIP)

• Overproduction (Releasing and dealing with too much work)
• Process (adding unnecessary value)
• Motion (people’s movement)
• Transportation (unnecessary movement of work)
• Waiting (delays between the processes)
• Defects (Not conforming to customer’s needs)

Some proven solution approaches to waste elimination:

• Synchronization through balanced lines and takt time control

• JIT production
• Heijunka (Production leveling)
• Small lot production (Ideally one piece flow)
• Nagara (Multi-tasking)
• Jidoka (Automatic line stoppage when defects are discovered)
• Poka-yoka (Fool -proof; fail-safe)
• SMED (Single –minute-exchange-of die; set-up reduction)
• TPM (Total productive maintenance)
• 5-S method (Systematic “house cleaning”)
• 5-Whys (To find the root cause of the problem)
• 3-P (Production preparation process)
• 3-D (Dirty, dangerous, difficult)
• 3-M (Muda-waste; Muri-unreasonable work contents; Mura-unevenness of operations)
• A3 thinking (Solving the problem on a 11x17 inches paper)
• 7-tools (Flowcharts; check sheets; cause-effect diagram; QC charts; Pareto charts; scatter
diagram; check sheets)
• Visual factory (C or U shaped lines; utilization of Andon; communication boards)
Value Stream Mapping (VSM)

• Define the process boundaries clearly

• “Walk the process” and identify each task, flow of material, paper, and information and
equipment
• Create an “as is” road map of the process
• Use “5-Whys” and similar techniques to identify the waste at each “point” of the process
• Plan a future value-stream for the process

The 5 S’s (English translation)

• Sort: Clear the work area. All items must be the “needy” ones.
• Set (in order): Everything in the work area should have a designated area.
• Shine: Clean of the work space.
• Standardize: Everyone does it the same way.
• Sustain: Ingrain the 5S concept into the company’s culture

Results:

Reduced set-up times; reduced cycle times; reduced accident rate; reduced wasted labor; increased
floor space; increased equipment reliability

Total Productive Maintenance (TPM)

Types of Equipment failure:

• Function loss failure

• Function reduction failure
• Hidden defects (often cause the above two failures)

Approach:

• A preventive and scheduled base maintenance approach

• Shift preventive maintenance from Maintenance Department to operators
• Operator participation and responsibility must be clearly defined
• Use aircraft-pilot –style equipment check
• Maximal cleanliness must be employed

Results:

• Avoid machine stoppage and hence gain more capacity

• Higher and consistent product quality
• Long machine life
Set-up Time Reduction

Set-up time variables:

Machine; attachments; tools; material

Set-up time reduction rules:

What?

• Simplify the set-up

• Reduce machine down time
• Select a target for improvement (Ultimately SMED or lower)

Why?

• Increased flexibility
• Reduced lot sizes
• Improved quality of set-up
• Not necessarily reduce the set-up cost
• Not to produce just more product

Who?

• Machine operators
• Set-up specialists Support from staff

Manufacturing Supervisor’s Role

• Provide education and training

• Encourage operator involvement
• Share information
• Emphasize quality and related responsibilities
• Respond to operator’s suggestions
• Provide recognition and reward
• Supervise as a coach
• Promote cultural change
Manufacturing Operator’s Role

• Data recording and analysis

• Problem solving
• Idea sharing and suggestion making
• Decision making
• Paying attention to details
• Housekeeping (5 S activities)
• TPM
• Responsibility at the source
• Team work
• Active in kaizen (CI)

Ideal Conditions for successful implementation of Lean Manufacturing

• High Volume, low product mix

• High level of process control
• Balanced lines
• Agility for logistics, procedures and HR management
• High level of machine uptimes; low set-up times
• Management understanding, buy-in and support
• World class employees: educated and trained, empowered, involved,
recognizes and rewarded
• World class supply chain: Partners, responsive and committed
Experience from Industry

Growth Lean approach

Non-lean approach

Time

BTO Manufacturing (Intermittent MFGR)

Waste Elimination BTS manufacturing (Repetitive MFGR)

Time
Lean 6-Sigma

• Lean Philosophy: Waste elimination

• 6-Sigma philosophy: Control of variability
• Progressive business firms combine the two philosophies as
Lean 6-sigma.
• First apply lean then control the target goals by 6-sigma; Go back and
repeat.
• Lean 6-sigma is not limited to manufacturing organizations. They are
equally applicable to service, financial, healthcare, and governmental
organization
•

Future Trends

• Higher global financial uncertainties

• Higher level of emerging markets

• Higher competition for limited global resources

• Expansion of global supply chain

• More advancement in information technology such as cloud computing

• Higher level of service industry, especially internet-based

• Must do more with less resources

• Cost reduction will be the essence of financial management and

profitability

• In business and government, Lean Six-Sigma approach will necessary

become the way of life