Lean Manufacturing Overview by Operational Excellence Consulting

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Presentation Description

“Lean” is a management philosophy based on the Toyota Production System (TPS). With Lean Thinking, you will be able to enhance value for your customers by improving and smoothing the process flow and eliminating waste. Simply put, with Lean, you will be able to increase productivity and create greater customer value with less resources.  By teaching this presentation, managers and employees will have a better understanding of the Lean principles and approach to eliminating waste, and will be more forthcoming to leading and participating in the Lean implementation process. To download this complete presentation, please go to: http://www.oeconsulting.com.sg

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Presentation Transcript

Lean Manufacturing Overview:

Lean Manufacturing Overview

Learning Objectives:

Learning Objectives Explain how Lean principles and practices improve business performance Describe the Lean philosophy and approach to continuous improvement Define value and waste Identify key Lean tools and techniques for waste elimination Describe the process of Lean implementation Explain the role of L ean leadership Identify the critical success factors Copyrights of all the pictures used in this presentation are held by their respective owners.

Program Outline:

Program Outline Introduction to Lean Value & Waste Lean Principles Lean Manufacturing Framework (TPS) Stability Standardization Just-In-Time Jidoka Employee Involvement Value Stream Mapping Problem Solving Lean Implementation Role of Lean Leadership Developing "Kaizen Eyes" Critical Success Factors Summary NOTE: As this is a PREVIEW , only selected slides are shown. To download the complete presentation, please visit: http://www.oeconsulting.com.sg

What is Lean?:

What is Lean? Value stream as primary work unit Focused on improving process performance Clear view of end state Wide range of Lean tools are available Learn-by-doing approach to performance improvement and capability-building Lean is a management philosophy based on the Toyota Production System (TPS) Eliminate everything that does not add value (waste) in the customer’s eyes Objective Focus and scope Approach and tools

Toyota’s Philosophy:

Toyota’s Philosophy Provide world class quality and service Develop employee potential through mutual trust and cooperation Reduce cost through elimination of waste Develop a flexible production system that can respond to changes in market demand

Lean vs. Traditional Thinking:

Lean vs. Traditional Thinking Traditional Thinking: Large batches Low unit costs Work at full capacity Tight Schedules High WIP inventories High level of specialization Long cycle times Lean Thinking: Small batches Total system cost Work at necessary capacity Flexible schedules Low WIP inventories Cross-training Short cycle times

Lean Manufacturing Framework (a.k.a. Toyota Production System):

Lean Manufacturing Framework (a.k.a. Toyota Production System) Stability Heijunka Standardized Work Kaizen Just-In-Time Continuous flow Takt time Pull system Flexible workforce Jidoka Separate man & machine work Abnormality Identification Poka yoke Goals: highest quality, lowest cost, shortest lead times Involvement 3 2 1 4 5 1 5 4 3 2 Stability Standardization Just-In-Time Jidoka Involvement

Muda, Mura, Muri:

Activities that do Not add value Workload that is not balanced Work that creates burden for the team members or processes Source: Toyota Motor Company Muda , Mura, Muri

Lean has been adopted in many different environments since its creation:

Lean has been adopted in many different environments since its creation Toyota Automotive Industrial products High fashion Medical devices Consumer products Aerospace Shipbuilding Pharma Food production Pulp and paper Chemicals Airlines Railways Naval operations & maintenance Hospital Insurance Banking Retail Store Upstream E&P High Tech Consulting Law Firms Hospitality ITO/BPO Services Process industries Manufacturing Time Complexity

What does Lean in manufacturing and process industries look like? :

What does Lean in manufacturing and process industries look like? Automotive Production Inventory management Aerospace Engine overhaul Spare parts Application Common Issues Typical Solutions Throughput Equipment downtime Rework and re-inspection Inventory costs Turnaround time Obsolescence costs One-piece Flow/Pull systems Equipment reliability Elimination of defects Inventory optimization Process streamlining Standardized operating procedures Spare parts management Process Materials management Asset management Material wastages Equipment availability Elimination of defects Reduction of unplanned downtime Source: Operational Excellence Consulting Research

Methods to Increase Productivity:

Methods to Increase Productivity Focus of Lean Let’s work smarter!

Value:

Value The customer’s perception of product and service attributes Value Added - Any activity that increases the market, form, or function of the service. (These are things the customer consider to be of value.) Non-Value Added = Waste - Any activity that does not add market, form, or function or is not necessary. (These activities should be eliminated, simplified, reduced or combined.)

Eight Types of Waste:

Eight Types of Waste Over-production Producing more than what the customer needs Inventory Building and storing extra services/products the customer has not ordered Transportation Moving product from one place to another Rework Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process or a machine/tool Waste

Types of Waste:

Types of Waste Email queues Waiting for instructions, approvals, information or decisions Seeking clarifications (due to unclear communications) Equipment or system downtime Machine waiting for person Out-of-stock Poor layouts and workplace organization Double or triple handling Moving in and out of storage areas or in between processes Multiple storage locations Inflexible conveying systems Sub-optimal dispatch or routing Waiting Transportation 3 4

Lean Principles:

Lean Principles Specify value from the customer’s perspective Identify the value stream for each service family Make the service flow Deliver when the customer pulls from your operations (just in time delivery) Manage towards perfection Source: Lean Thinking by James P. Womack and Daniel T. Jones

Systems Approach to Lean:

Systems Approach to Lean “Most companies have focused too heavily on tools…without understanding Lean as an entire system that must permeate an organization’s culture.” - Dr. Jeffrey K. Liker Author of “The Toyota Way” Stability

One-Piece Flow/Pull system:

One-Piece Flow/Pull system The optimally Lean process is characterized by “One-Piece Flow” No work-in-progress inventory costs No quality defect Shortest cycle time No waste Just-In-Time

Value stream mapping provides an overview of the end-to-end production process:

Creates an end-to-end view of the system Demonstrates interaction between material/work and information flow Provides a common visual language for understanding a complex system Supplier Management Control Customer Work & Information Flow Information flow Value stream mapping provides an overview of the end-to-end production process

The Leader’s Job at Toyota…:

The Leader’s Job at Toyota… Supports and coaches at front lines of the organization Lean Leadership: Three Models Old “Dictator” style: “Do it my way…” 1980’s “Empowerment” style: “Do it your way…” Lean style: “Follow me… and let’s figure this out together”

Chairman Cho of Toyota: Three Keys to Lean Leadership:

Chairman Cho of Toyota: Three Keys to Lean Leadership Go See “ Sr. Mgmt. must spend time on the plant floor.” Ask Why “ Use the “Why?” technique daily.” Show Respect “ Respect your people.”

Lean Lessons from Other Adopters:

Lean Lessons from Other Adopters “Getting lean” takes a long time Lean is not a part-time effort Lean is more than tools, it is also behavior There will be resistance to Lean within the organization The journey to Lean never ends

End of Preview:

End of Preview To download this entire PowerPoint presentation, please visit : Operational Excellence Consulting http://www.oeconsulting.com.sg

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