Lean Manufacturing - An Introduction

THE ROAD TO LEAN SENSEI
C.Vishwanathan Head Faculty, Chief Mentor and Co-Founder 15 February, 2012
Overview 1 2 3
Lean Manufacturing Explained
Impact of implementing Lean

WIIFY
(c) The School of Continuous Improvement 2011
Origins of Lean
Henry Ford married batch manufacturing to assembly line manufacturing in 1913. Lack of Demand forced Ford to shelve his initiatives. Group of Japanese Engineers visit Fords factory, and migrate the initiatives to their plant. Birth of TPS
In 1980, James Womack rebundled concepts of TPS to give birth to Lean Manufacturing.
Lean defined
To eliminate waste and reducing non-value adding activities.
Waste is anything unnecessary Non-value adding activities are those that dont add value, or those that the customers are not willing to pay for.
The Lean House
Warusa Kagen
"For the want of a nail the shoe was lost; For the want of a shoe the horse was lost; For the want of a horse the battle was lost; For the failure of battle the kingdom was lost; And all for the want of a horseshoe nail." ((From Gemba Panta Rei))
Warusa Kagen (contd..)

Condition of badness or How bad things are Represents small abnormalities that are undetected Need a keen management eye to identify Warusa Kagen issues.
The gap between how ideal the process should be and how actually it is performing is bridged.
Warusa Kagen (contd)

How to deal with Warusa Kagen?
Demand cleanliness in workplace Visual Controls Have respect for people Adherence to standards and work procedures
Warusa Kagen conditions

Muda (Waste) Mura (Unevenness) Muri (Overburden)
3Ms explained
Muda --- Wasteful work or work that doesnt add value Mura --- Unsteady work, work happening irregularly Muri --- Inefficient work.
TIMWOODS
T Transportation I Inventory M Motion W Waiting O Over-production O Over-processing W Waiting S Latent Skills
Lean Tools
The Ideal Modern Organization Kanban Heijunka SMED Genchi Gembutsu 5S
The Ideal Modern Organization
Lean Tools - Kanban

Means Signboard Is a Scheduling system and not an inventory control system Helps determine when to produce, what to produce and how much to produce Originated from Toyota in 1953
The Kanban winners

Focuses on pulling the product than pushing Keeps inventory levels low Synchronizes demand and production Reduces waiting time
When you withdraw units in a system, replace it with a Kanban card illustrating the predecessor to complete X units.
Kanban myths
Kanban replaces all existing material flow X MRP and Reorder Point (ROP) may still continue. Kanban works in all scenarios X Works only in High Volume/Low value components
Kanban is JIT X Kanban is an integral part of JIT and not JIT by itself
A KANBAN GAME
Heijunka
Pronounced as Hey-Joonkah Production leveling technique used in conjunction with Kanban Ensures customer demand is leveled. Fixes Mura to a great extent.
A Heijunka Example.
SMED
Single Minute Exchange of Die
Fast changeovers Reduces Setup Time Setups and Changeovers are Downtimes Reducing Downtimes improves productivity
Have a dedicated setup team Special training delivered to reduce setup times.
Genchi Genbutsu
Go to the Gemba and See. Gemba is the place where real work happens, i.e. shop floor and not management cabins Problems can be identified by going to the shopfloor and observing only. Genchi Genbutsu doesnt talk about just visit but to Know. Correlates to Peters and Watermans Management by Wandering.
5S
A very simple and effective technique used in Leaning Operations. Objective is to maintain a clean workplace Sort, Straighten, Stabilize, Sweep and Sustain Takes care of Waste due to Motion
The TIMES in Lean

TAKT Time Cycle Time Setup Time Lead Time
The TIMES in Lean (contd)

TAKT Time The time available for production to meet customer demand Example --- If a company works for 8 hours, i.e. 480 minutes out of which setup time is 30 minutes and meeting time is 30 minutes and customer needs 100 products, TAKT Time is 420/100 = 4.2 minutes per product.

TAKT Time sets the pace of production. In other words, this is the target for the production line.
In mixed level production scenarios, the TAKT Time should be calculated for individual product lines.

Cycle Time The time for which actual work happens on the product/in the process. Cycle time = Manual cycle Time + Automatic Cycle Time Manual Cycle Time = Work is done manually Auto Cycle Time = Work is done by machines

Cycle Time < TAKT Time = Idle time for resources, and some times Over production Cycle Time > TAKT Time = Waiting for customers Cycle Time = TAKT Time : Ideal Scenario If workers work on a product for 2 minutes per unit and machine works for 2 minutes, what is the Cycle Time and explain the impact comparing with TAKT Time of 4.2 minutes per product?

Lead Time Time from the order of product to receipt of product by customer Also known as Production Lead Time
Production Lead Time = Wait Time + Cycle Time + Delivery Time

TPM --- For better equipments

Total Productive Maintenance Better utilization and maintenance of production resources results in improved process capability
Unreliable uptime is due to machine breakdowns, which further impacts productivity and flow. Operators and teams of a company are the best to seek and identify the problems in equipment, before they assume damaging proportions.
TPM --- For better equipments (contd)

Originated in Japan in 1951, as part of Preventive Maintenance. Toyota embraced TPM first as part of TPS in 1960. Nippondenso, a part of Toyota, mandated the principle of Autonomous Maintenance due to the high degree of automation in their company.
Goals of TPM
Zero product Defects Zero Equipment Unplanned Failures * Zero Accidents
* A scheduled system downtime is not factored by TPM as detrimental.

How to implement TPM

1) Gap analysis on historical product defects/accidents/failures 2) Physical Investigation on equipment (Genchi Genbutsu and Jijutsu) 3) Corrective and incremental actions
8 Pillars of TPM
Focused improvement (Kobetsu Kaizen) Autonomous maintenance (Jishu Hozen) Planned Maintenance Training and Education Early Phase Management Quality Maintenance (Hinshitsu Hozen) Office TPM SHE
OEE, TEEP and TPM

OEE and TEEP are the key KPIs of TPM OEE --- Overall Equipment Effectiveness TEEP --- Total Effective Equipment Performance
Both the above metrics show how well facilities in a site are utilized.
OEE, TEEP and TPM (contd)

OEE = Availability * Performance * Quality
A P Q
Available = How much time of the total time are the equipment available Performance = How well do the equipment perform Quality = What is the defect rate out of the equipment

Availability Calculations Available production time per day = 480 mins Scheduled Break Time = 30 mins Scheduled production time = 450 mins Scheduled Downtime = 60 mins Available production time = 390 mins Availability = 87%

Performance Calculations Performance = (Products produced*Ideal Cycle Time)/Available Time Number of parts = 100 Time per part = 3 mins Performance = (100 *3)/390 = 77% Performance calculations doesnt factor quality

Quality calculations Quality = Number of good units/Total units Hypothetically here, Quality = 90/100 = 90%
OEE = 87% * 77% * 90% = 60.21% Industry OEE Benchmark is 85%. Room for improvement.

TEEP = Loading * OEE Loading = Scheduled time/Calendar time Calendar time = 7 days and 24 hours Scheduled time = 5 days and 24 hours Loading = 71.4%

TEEP = Loading * OEE = 71.4% * 60.21% = 42.98% Obviously, room for improvement because only 43% of the total effectiveness of your equipment is visible.
Parting words from your Sensei

Always respect people. Objective is to implement Lean Manufacturing and not Mean Manufacturing.
Do Genchi Genbutsu regularly. Automation is just a part of the process and not the process itself.
C.Vishwanathan can be reached at

Facebook = Chandra Vishy Linkedin = C Vishwanathan Email = vish.growth@gmail.com Ph = 8097018079 Skype = chandrav2
Any questions??????

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THE ROAD TO LEAN SENSEI

C.Vishwanathan Head Faculty, Chief Mentor and Co-Founder 15 February, 2012

Impact of implementing Lean

(c) The School of Continuous Improvement 2011

(c) The School of Continuous Improvement 2011

The Lean House

(c) The School of Continuous Improvement 2011

Warusa Kagen (contd..)

Warusa Kagen (contd)

(c) The School of Continuous Improvement 2011

Warusa Kagen conditions

(c) The School of Continuous Improvement 2011

(c) The School of Continuous Improvement 2011

The Ideal Modern Organization

(c) The School of Continuous Improvement 2011

Lean Tools - Kanban

(c) The School of Continuous Improvement 2011

The Kanban winners

(c) The School of Continuous Improvement 2011

(c) The School of Continuous Improvement 2011

(c) The School of Continuous Improvement 2011

The TIMES in Lean

(c) The School of Continuous Improvement 2011

The TIMES in Lean (contd)

The TIMES in Lean (contd)

The TIMES in Lean (contd)

The TIMES in Lean (contd)

The TIMES in Lean (contd)

Production Lead Time = Wait Time + Cycle Time + Delivery Time

TPM --- For better equipments

TPM --- For better equipments (contd)

* A scheduled system downtime is not factored by TPM as detrimental.

How to implement TPM

OEE, TEEP and TPM

OEE, TEEP and TPM (contd)

(c) The School of Continuous Improvement 2011

OEE, TEEP and TPM (contd)

OEE, TEEP and TPM (contd)

OEE, TEEP and TPM (contd)

OEE, TEEP and TPM (contd)

OEE, TEEP and TPM (contd)

OEE, TEEP and TPM (contd)

Parting words from your Sensei

C.Vishwanathan can be reached at

(c) The School of Continuous Improvement 2011

(c) The School of Continuous Improvement 2011

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