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Lean Manufacturing

An Overview
Dr. Richard A. Wysk
rwysk@psu.edu
http://www.engr.psu.edu/cim

August 12, 2002

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.

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

Exercise
Readiness Assessment Test

A.K.A. RAT

AS A INDIVIDUAL,
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

Exercise
Readiness Assessment Test

A.K.A. RAT

AS A TEAM (4 members),
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

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

Craft Manufacturing
Late 1800s
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

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

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.

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

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

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)

Product
Shipment

Product
Shipment

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.

13

New Paradigm: Non-Blaming Culture


Management creates a culture where:
Problems are recognized as opportunities
Its okay to make legitimate mistakes
Problems are exposed because
of increased trust
People are not problems they are problem solvers
SOLUTIONS
PROBLEMSinstead of who
Emphasis is placed on finding solutions
did it

What makes a manufacturing


system lean? the 3 Ms of lean
muda waste
mura - inconsistency
muri - unreasonableness

What makes a manufacturing


system Lean?

Definitions
Systems
Recognition
Efficiencies

Waste
Muda
7 types
Truly lean
17

Waste
Anything
Anything that
that adds
adds Cost
Cost
to
to the
the product
product
without
without adding
adding Value
Value

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)
19

7 Forms of Waste
CORRECTION
WAITING

Repair or
Rework

Any non-work time


waiting for tools,
supplies, parts, etc..

PROCESSING
Doing more work than
is necessary

Types
of
Waste

INVENTORY
Maintaining excess
inventory of raw matls,
parts in process, or
finished goods.

MOTION
Any wasted motion
to pick up parts or
stack parts. Also
wasted walking

OVERPRODUCTION
Producing more
than is needed
before it is needed

CONVEYANCE
Wasted effort to transport
materials, parts, or
finished goods into or
out of storage, or
between
processes.

Who wants what...

Customer
Low Cost
High Quality
Availability

Cash
Cash !!!!

Value
Value !!!!
Your Company
Profit
Repeat Business
Growth

Elements of Lean Manufacturing

Waste reduction
Continuous flow
Customer pull
50, 25, 25 (80,10,10) Percent gains

22

Benefits of Lean Manufacturing


50 - 80% Waste reduction

WIP
Inventory
Space
Personnel
Product lead times
Travel
Quality, costs, delivery
23

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

24

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)

25

Tools (cont.)
Continuous Flow (10% - 25%)

SMED (Shingo)
Andon
Takt time
Line balancing
Nagara (smooth production flow)

26

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

27

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.
Todays standardization, instead of being a barricade against
improvement, is the necessary foundation on which
tomorrows 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

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

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

5S Programs

Seiri (sort, necessary items)


Seiton (set-in-order, efficient placement)
Seison (sweep, cleanliness)
Seiketsu (standardize, cont. improvement)
Shitsuke (sustain, discipline)

31

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
2S
3S
4S
5S

Sift and Sort


Stabilize
Shine
Standardize
Sustain

(Organize)
(Orderliness)
(Cleanliness)
(Adherence)
(Self-discipline)

Error Proofing
Preventing accidental errors in the
manufacturing process
Error detection
Error prevention

A way to achieve zero defects.

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

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?

End part #1 Waste Elimination


Questions?